Aroa Biosurgery (ASX: ARX) has reported total product revenue of NZ$44.9 million for the first six months of financial year 2026, representing growth of 14% on the previous corresponding period.
NZ$19.7m of this came from sales of the company’s Myriad extracellular matrix technology for surgical soft tissue reconstruction and complex wounds.
Sales of OviTex and OviTex PRSi surgical mesh – which reduce the amount of synthetic material in the body compared to traditional meshes, while minimising inflammation and pain – generated a further NZ$19.2m.
Solid EBITDA Improvement
Aroa generated a normalised EBITDA profit of NZ$1.8m for the first half of 2026, compared to a NZ$1.5m loss at the same time last year.
Direct product sales accounted for 57% of the product revenue mix (compared to 53% at the same time last year), with gross margin for the first half of the year of 85%—a slight reduction on the previous corresponding period, but in line with 2025’s second half result.
Fixed manufacturing overheads increased compared to the second half of 2025, with the impact on product gross margin offset by high-margin Myriad products that made up a greater proportion of the sales mix.
Aroa delivered positive total net cash flow during the period, reporting a total increase in cash at hand and term deposits of NZ$1.5m, and remains debt free with cash at hand and term deposits totalling NZ$23.4m.
Net cash inflows from operating activities totalled NZ$4m,compared to outflows of NZ$4.9m in the previous corresponding period, driven by increased sales and improved management of trade debtors.
Expenses Profiles Mixed
Aroa’s selling and administrative expenses for the period totalled NZ$35.5m, an increase of 7% on the previous corresponding period, while clinical development costs fell from NZ$4.3m to NZ$2.6m, reflecting expenses incurred on a randomised clinical trial for Symphony combination cellular and tissue product in the first half of 2025.
Sales and marketing expenses (excluding clinical development) were NZ$23.6m (13% up on the previous NZ$20.8m), due to an increase in variable sales compensation and the introduction of US-based tariffs.
Research and development expenses fell 24% to NZ$4.1m, and covered product line extensions for the Myriad and Ovitex range as well as a continued investment in the Enivo platform for the management of open cavities (or ‘dead space’) created by surgical separation or the excision of soft tissue.
Pleasing H1 Performance
Managing director Brian Ward said he was pleased with the strong first half performance.
“We are very pleased to have delivered NZ$44.9m in total revenue, underpinned by strong Myriad growth and our fourth consecutive quarter of positive operating cash flow,” he said.
“Looking ahead to the second half of the year, we expect new clinical publications to further validate the efficacy of our extracellular matrix technology and strengthen its commercial uptake.”
