Full Year Trading Update and Notice of Results
AOTI, Inc. reported full-year 2025 revenue of approximately $66.5 million, a 14% increase from the prior year, and expects results to be in line with consensus, though net debt rose to $6.5 million due to increased receivables, particularly in Arizona where Medicaid reimbursement issues persist, leading the company to cease treating new Arizona Medicaid patients from April 1, 2026. Despite these headwinds, the company implemented organizational changes, anticipates a near-term CMS local coverage determination, and is well-positioned for growth as US healthcare market challenges abate.
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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 revenue1 and Adjusted EBITDA margin1,2, in line with consensus3.
| · | 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.
| AOTI, INC. Dr. Mike Griffiths, Chief Executive Officer Jayesh Pankhania, Chief Financial Officer | +44 (0)20 3727 1000 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) Emma Earl, Will Goode, Mark Rogers Rupert Dearden | +44 (0)20 3100 2000 |
| FTI Consulting (Financial PR & IR) Ben Atwell, Simon Conway, Natalie Garland-Collins | +44 (0)20 3727 1000 AOTI@fitconsulting.com |
ABOUT AOTI, INC.
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