Aroa Biosurgery (ASX: ARX) has reported FY26 results that significantly exceeded revenue and EBITDA guidance, driven by strong Myriad growth and a robust product margin.
The company has also outlined an ambitious FY27 outlook, underscored by commercial execution and upcoming clinical catalysts.
Revenue reached NZ$103.9m, marking a 23% year on year growth and comfortably surpassing the top end of the company’s constant currency guidance range of NZ$92-100m.
Normalised EBITDA saw a substantial increase of 201% year on year, climbing to NZ$12.6m, well above the guidance range of NZ$5-8m.
The company maintained a robust product gross margin of 85.5%.
Myriad Drives Growth
A key driver of this success was the Myriad product line, which recorded impressive sales growth of 54% on a constant currency basis.
Myriad products also boast an exceptional gross margin, exceeding 90%.
Aroa’s strategy of scaling its direct sales force is paying off, with direct sales now accounting for 59% of total revenue, compared to 41% from partner channels.
Symphony Reimbursement Catalyst
Looking ahead, the Symphony product is positioned as a significant catalyst.
Its Diabetic Foot Ulcer (DFU) randomised controlled trial (RCT) successfully met its primary endpoint.
This clinical achievement is crucial, aligning with anticipated changes to 2026 CMS reimbursement, which will see skin substitutes reimbursed on a flat-fee basis.
Aroa intends to leverage this evidence to gain market share.
To capitalise on this opportunity, Aroa plans a dedicated investment of approximately NZ$4m in FY27 to support the Symphony launch and sales infrastructure.
FY27 Outlook and Investment
For FY27, Aroa has provided revenue guidance in the range of NZ$115-125m, indicating a continued growth trajectory of 13-23% from FY26.
Normalised EBITDA guidance for FY27 is set between NZ$8-11m.
This forecast reflects a deliberate investment strategy, with approximately NZ$9m earmarked for scaling Myriad commercial capabilities and supporting the Symphony launch.
The company anticipates that revenue from its OviTex product line, distributed by TELA Bio, will remain flat in FY27 due to ongoing hospital contracting headwinds.
Strong Financial Position
Aroa demonstrated strong financial discipline, generating NZ$5.1m in net cash during FY26.
The company maintains a debt-free balance sheet, holding NZ$27m in cash and term deposits.
This robust financial position supports its self-funded growth initiatives without the need for external debt.
Aroa’s Strong FY26 Performance and Strategic Investments
Aroa Biosurgery delivered exceptional FY26 results, significantly beating internal targets for revenue and profitability.
The company’s strategic focus on the Myriad product and the upcoming Symphony launch, bolstered by strong clinical data and favourable reimbursement changes, positions it for continued growth.
However, FY27‘s EBITDA guidance reflects deliberate investments, necessitating close monitoring of Symphony‘s commercial uptake and sales force productivity.