The Australian share market is on form on Thursday.
In afternoon trade, the benchmark ASX 200 index is up 0.25%.
While this is positive, it pales in comparison to what one small cap ASX share is recording today.
The small cap in question is Aroa Biosurgery Ltd (ASX: ARX). It is a soft-tissue regeneration company with a mission to unlock regenerative healing for everybody.
It develops, manufactures, sells, and distributes medical and surgical products to improve healing in complex wounds and soft tissue reconstruction.
At the time of writing, its shares are up 10% to 52 cents after investors responded positively to the release of its full year results.
According to the release, the company recorded a 23% increase in total revenue to NZ$84.7 million. This was ahead of its guidance range of NZ$81 million to NZ$84 million.
The drivers of its growth were its Myriad product and OviTex product. Myriad product revenue was up 38% to NZ$32.3 million and OviTex product revenue was up 22% to NZ$39.7 million.
And with a product gross margin of 86%, the small cap ASX share posted normalised EBITDA of NZ$4.2 million for the year. This is up from a NZ$3.2 million loss a year ago. Once again, this exceeds its guidance for FY 2025, which was NZ$2 million to NZ$4 million.
More good news is that Aroa Biosurgery achieved positive operating cash flow the second half. This led to it finishing the period with a cash balance of NZ$22 million and no debt.
Also likely to be going down well with the market is management's guidance for FY 2026.
It is expecting its strong form to continue and is forecasting revenue of NZ$92 million to NZ$100 million and normalised EBITDA of NZ$5 million to NZ$8 million. This represents growth of 10% to 20% on the top line and 19% to 90% for its earnings.
Commenting on the year ahead, the small cap ASX share's managing director and CEO, Brian Ward, said:
FY25 marks a significant financial milestone – our first year of normalised EBITDA profitability since listing. Looking ahead, we are increasingly confident about our ability to deliver strong top-line growth and enhanced profitability in FY26 and beyond. Myriad clearly demonstrates that we are delivering on our vision to unlock regenerative healing for everybody.
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