REG - AOTI, Inc. - Full Year Trading Update and Notice of Results

AotiAnnouncement

23/02/2026 07:00

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RNS Number : 9925T  AOTI, Inc.  23 February 2026

23 February 2026

 

AOTI, INC. (the "Company" or "Group" or "AOTI")

 

Full Year Trading Update and Notice of Results

 

Good progress despite US headwinds

 

AOTI is well positioned to re-accelerate its growth as US healthcare market
headwinds abate

We continue to expect a CMS local coverage determination in the near term

 

 

AOTI, INC. (AIM: AOTI), a medical technology group focused on delivering
outcomes-based care at home, by more durable healing of wounds and the
prevention of amputations, announces its unaudited trading update for the year
ended 31 December 2025 ("FY 2025").

Trading update

The Company expects to report FY 2025 revenue(1) and Adjusted EBITDA
margin(1,2), in line with consensus(3).

 ·             14% revenue growth to c.$66.5 million(1) (2024: $58.4 million).
 ·             Net debt of c.$6.5 million (2024: net cash $0.9 million) was better than
               consensus(1,3), however increased from prior year reflecting the drawdown from
               the SWK Funding LLC loan facility, as receivables increased (see below). The
               Company has sufficient cash generation and headroom in its SWK facility to
               support its ongoing working capital needs.
 ·             The organisational and operational changes announced at the time of the 2025
               interim results have now been implemented allowing for greater focus on
               patient outcomes and sales rep productivity which are already showing positive
               signs.
 ·             The Company will report its audited results for the FY 2025 on Monday 30
               March 2026.

 

Arizona State Medicaid Update

The Company has intensified its efforts with the Arizona state Medicaid agency
to secure a positive resolution to the ongoing reimbursement issues that have
persisted for more than a year. Medicaid payments in Arizona have continued to
be denied by insurers, leading to an increase in receivables. Some of the
claims were submitted through the arbitration process, and all these have been
paid in full ($1.1 million). However, this is a resource-intensive and
laborious multi-step process. To limit further exposure until we achieve a
resolution, while minimising the impact to existing patients, the Company has
no alternative but to cease treating new Arizona Medicaid patients from 1
April 2026.

Arizona Medicaid is expected to have contributed approximately $9.2 million of
revenue in 2025. Group revenue growth ex-Arizona for the year was c.15% (FY
2024 c.19%). Year-on-year net debt increased mainly due to the increase in
receivables in Arizona where the year-end balance was $15.6 million (2024:
$8.2 million). As the situation remains fluid, any resolution reached between
now and the finalisation of the 2025 accounts may result in adjustments,
positive or negative, to the unaudited results in this statement.

Dr. Mike Griffiths, Chief Executive Officer & President of AOTI,
said: "We enter 2026 with a stronger core business and capabilities that
exceed any point in our history. Despite the major challenges presented by US
policy initiatives in 2025, we have proactively managed this risk through the
restructuring of our commercial teams and implementing key metrics to better
drive performance in all targeted market segments. The business delivered
growth ahead of our peers and made meaningful operational progress for the
year, and as headwinds in the US healthcare market begin to abate, AOTI is
well positioned to benefit. We continue to expect a CMS local coverage
determination in the near term, which we believe has the potential to be
transformational for the Company."

(1) Excludes any potential adjustments in relation to Arizona.

(2) Adjusted EBITDA is an unaudited non-GAAP measure: Earnings before
interest, taxation, depreciation, amortisation and non-underlying items.

(3) Consensus expectations as at 14 January 2026 for FY 2025 are as follows:
Revenue $66.1 million, Adjusted EBITDA margin 10.8% and net debt of $11.2
million.

 

END

 

 AOTI, INC.

 Dr. Mike Griffiths, Chief Executive Officer         +44 (0)20 3727 1000

 Jayesh Pankhania, Chief Financial Officer           ir@aotinc.net (mailto:ir@aotinc.net)

 Peel Hunt LLP (Nominated Adviser and Joint Broker)

 Dr. Christopher Golden, James Steel                 +44 (0)20 7418 8900

 Panmure Liberum Limited (Joint Broker)              +44 (0)20 3100 2000

 Emma Earl, Will Goode, Mark Rogers

 Rupert Dearden

 FTI Consulting (Financial PR & IR)                  +44 (0)20 3727 1000

 Ben Atwell, Simon Conway,                           AOTI@fitconsulting.com (mailto:AOTI@fitconsulting.com)

 Natalie Garland-Collins

 

 

 

ABOUT AOTI, INC.

 

AOTI, INC. was founded in 2006 and is based in Oceanside, California, US and
Galway, Ireland, providing innovative solutions to resolve severe and chronic
wounds worldwide. Its products reduce healthcare costs and improve the quality
of life for patients with these debilitating conditions. The Company's
patented non-invasive Topical Wound Oxygen (TWO(2)(®)) therapy has
demonstrated in differentiating, robust, double-blinded randomized controlled
trials (RCT) and real-world evidence (RWE) studies to more-durably reduce the
recurrence of Diabetic Foot Ulcers (DFUs), resulting in an unprecedented 88
per cent reduction in hospitalizations and 71 per cent. reduction in
amputations over 12 months. TWO(2)(®) therapy can be administered by the
patient at home, improving access to care and enhancing treatment compliance.
TWO(2)(®) therapy has received regulatory clearance from the US (FDA), Europe
(CE Mark), UK (MHRA), Health Canada, the Chinese National Medical Products
Administration, Australia (TGA) and in Saudi Arabia. TWO(2)(®) therapy has
also recently received positive coverage recommendations from the Federal
Joint Committee (G-BA) in Germany and National Institute for Health and Care
Excellence (NICE) in the United Kingdom. Also see www.aotinc.net
(http://www.aotinc.net)

 

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