Earnings release
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RNS Number : 9925TAOTI, 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 forthe 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 million1 (2024: $58.4 million). · Net debt of c.$6.5 million (2024: net cash $0.9 million) was better than consensus1,3,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 interimresults have now been implemented allowing for greater focus on patient outcomes andsales 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 UpdateThe Company has intensified its efforts with the Arizona state Medicaid agency to secure a positive resolution tothe ongoing reimbursement issues that have persisted for more than a year. Medicaid payments in Arizona havecontinued to be denied by insurers, leading to an increase in receivables. Some of the claims were submittedthrough 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 minimisingthe impact to existing patients, the Company has no alternative but to cease treating new Arizona Medicaidpatients 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 theincrease in receivables in Arizona where the year-end balance was $15.6 million (2024: $8.2 million). As thesituation remains fluid, any resolution reached between now and the finalisation of the 2025 accounts may result inadjustments, 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 corebusiness and capabilities that exceed any point in our history. Despite the major challenges presented by USpolicy initiatives in 2025, we have proactively managed this risk through the restructuring of our commercial teamsand implementing key metrics to better drive performance in all targeted market segments. The business deliveredgrowth 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.
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