Anika Therapeutics, Inc. Q4 FY2025 earnings call

Strategic priorities are revenue growth via commercial channel, advancing HA-based innovation pipeline, and improving operational execution. In revenue growth, commercial channel led by international OA pain and Integrity, OEM channel affected by pricing. Innovation pipeline: Hyalofast submitted PMA module, Cingal completed toxicity studies and bioequivalence study initiated, Integrity post-market study ongoing. Operational execution improved manufacturing productivity, led to expanded gross margins, positive operating income in Q4 and free cash flow. New organizational structure implemented for efficiency.

In 2025, total revenue was $112.8 million, a 6% decline year-over-year. Commercial channel revenue was $48.4 million, up 15% year-over-year, driven by international OA pain management and Integrity. International OA pain management grew 12% for the full year. OEM channel revenue was $64.4 million, down 17% year-over-year due to pricing and market dynamics. Fourth quarter revenue was $30.6 million, flat year-over-year. Gross GAAP gross margin in Q4 was 63% vs 56% prior year. Full year GAAP gross margin was 57% vs 63% in 2024. Adjusted EBITDA in Q4 was $4.5 million, full year was $5.3 million. 2026 total company revenue is expected to be between $114 million and $122.5 million, commercial channel 10%-20% growth to $53M-$58M, OEM channel flat to down 5% to $61M-$64.5M. Adjusted EBITDA expected 5%-10% of revenue.

Total company revenue expected $114M-$122.5M (1%-9% growth). Commercial channel 10%-20% growth to $53M-$58M (driven by Integrity, Hyalofast, international OA). OEM channel flat to down 5% to $61M-$64.5M (Monovisc volume growth offset by lower pricing, Orthovisc flat). Adjusted EBITDA 5%-10% of revenue.

Q: Mike Petusky asks about Hyalofast contribution and gross margin outlook.

A: Hyalofast $3M anticipated revenue in 2027, gross margin not always at Q4 level but aiming high 50s.

Q: Anderson Schock asks about OEM channel improvement and Cingal timeline.

A: OEM sequential improvement from volume and user demand, Cingal bioequivalence study ongoing.

Q: Mike Petusky asks about Integrity revenue run rate and capital allocation.

A: Integrity had $6M full year revenue, capital allocation priorities on manufacturing, sales channel, and executing strategic priorities