22nd Sep 2025 11:32
(Alliance News) - AOTI Inc on Monday said it sees unprecedented headwinds becoming tailwinds for the business, as it said it remains on track to meet its revised full-year guidance.
AOTI is an Oceanside, California-based wound healing-focused medical technology company.
The company swung to a pretax profit of USD788,000 for the six months that ended June 30, from a USD3.7 million loss a year prior.
Driving the improved bottom line was a 21% revenue gain to USD31.8 million from USD26.3 million, as AOTI noted growth across all market segments, but primarily in the Medicaid segment.
Medicaid revenue rose 57% to USD14.0 million from USD8.9 million, while Veterans Administration improved 2.4% to USD17.3 million from USD16.9 million.
Other revenue edged 0.7% higher to USD544,000 from USD540,000.
Looking to the second half, AOTI said it remains on track to deliver on its revised full-year guidance. It expects revenue growth in the mid-teens, and adjusted earnings before interest, tax, depreciation and amortisation margin in the low double digits.
In 2024, these figures were USD58.4 million and 13.8% respectively.
"The company continues to view current US headwinds as transitional, and we remain firmly focused on executing our growth strategy and restoring historical momentum in the medium term," said AOTI.
Shares in AOTI were 11% lower at 40.00 pence on Monday morning in London.
Chief Executive Mike Griffiths commented: "Performance for the first half of 2025 saw growth across all segments as we continue to build awareness and adoption of our cost and limb saving TWO2 therapy. We are prioritising our commercial execution to the main revenue generating opportunities, while strategically investing in the drivers that will allow for accelerated growth in the mid-term.
"AOTI is uniquely positioned to deliver effective cost-saving outcomes and clinical data-driven care which aligns with the US Administration's stated healthcare priorities. Consequently, we believe that the unprecedented headwinds we have been experiencing recently will ultimately turn into tailwinds for our business."
By Christopher Ward, Alliance News reporter
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