AOTI ends year as expected despite reimbursement headwinds
By Josh White
Date: Monday 23 Feb 2026
(Sharecast News) - AOTI said in an update on Monday that it expects to report full-year 2025 revenue and adjusted EBITDA margin in line with market consensus, despite reimbursement headwinds in the US healthcare market, as it positioned for renewed growth in 2026.
The AIM-traded medical technology group said it expected revenue for the year ended 31 December to rise 14% to $66.5m, up from $58.4m in 2024.
Net debt at year end was around $6.5m, compared with net cash of $0.9m a year earlier, reflecting drawdowns under its SWK Funding loan facility as receivables increased.
The company said net debt was better than consensus expectations and that it had sufficient cash generation and headroom within the facility to support working capital requirements.
AOTI said organisational and operational changes announced at the interim results had now been implemented, with a greater focus on patient outcomes and sales representative productivity, which were already showing positive signs.
The group said it would publish its audited results on 30 March.
In Arizona, the company said it continued to face reimbursement challenges under the state Medicaid programme, with payments denied by insurers for more than a year.
Some claims submitted through arbitration had been paid in full, totalling $1.1m, although management described the process as resource intensive.
To limit further exposure while seeking resolution, AOTI said it would cease treating new Arizona Medicaid patients from 1 April.
Arizona Medicaid contributed about $9.2m of revenue in 2025.
Excluding Arizona, group revenue growth for the year was about 15%, compared with 19% in 2024.
Year-on-year net debt increased mainly due to higher receivables in Arizona, which stood at $15.6m at year end, up from $8.2m in 2024.
The firm noted that any resolution reached before finalisation of the 2025 accounts could result in adjustments to the unaudited figures.
"We enter 2026 with a stronger core business and capabilities that exceed any point in our history," said chief executive and president Dr Mike Griffiths.
"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."
At 1129 GMT, shares in AOTI were down 5.41% at 35p.
Reporting by Josh White for Sharecast.com.
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