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Aroa Biosurgery Ltd (AU:ARX)
ASX:ARX
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Aroa Biosurgery Ltd (ARX) AI Stock Analysis

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AU:ARX

Aroa Biosurgery Ltd

(Sydney:ARX)

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Neutral 49 (OpenAI - 4o)
Rating:49Neutral
Price Target:
AU$0.50
▼(-24.24% Downside)
Aroa Biosurgery Ltd's overall stock score is primarily impacted by its financial performance, which shows strong revenue growth but faces profitability challenges. The technical analysis indicates a bearish trend, while valuation metrics are unfavorable due to negative earnings. These factors collectively result in a below-average stock score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates expanding market presence and successful product adoption, which is crucial for long-term business sustainability.
Balance Sheet Health
A strong balance sheet with low debt enhances financial stability, allowing the company to invest in growth opportunities and weather economic downturns.
Operational Improvements
Improving EBITDA margins reflect better operational efficiency, which can lead to enhanced profitability and competitive positioning over time.
Negative Factors
Profitability Challenges
Ongoing profitability issues may hinder the company's ability to reinvest in growth and could affect long-term financial health.
Negative Free Cash Flow
Negative free cash flow indicates challenges in generating sufficient cash to cover capital expenditures, impacting financial flexibility.
Return on Equity
Negative ROE suggests inefficiencies in generating returns for shareholders, which could deter investment and affect stock performance.

Aroa Biosurgery Ltd (ARX) vs. iShares MSCI Australia ETF (EWA)

Aroa Biosurgery Ltd Business Overview & Revenue Model

Company DescriptionAroa Biosurgery Limited, a regenerative medicine company, engages in the developing, manufacturing, and distributing medical devices for wound and tissue repair using extracellular matrix (ECM) technology in the United States and internationally. The company's products include Endoform Natural and Endoform Antimicrobia Restorative Bioscaffold for treating acute and chronic wounds; Myriad Matrix, an engineered ECM for soft tissue repair, reinforcement, and complex wounds; Myriad Morcells, a morcellized (powdered) format of Myriad Matrix for soft tissue repair and complex wounds; and Reinforced Bioscaffolds, a surgical product for use in ventral hernia repair and abdominal wall reconstruction. Aroa Biosurgery Limited was incorporated in 2007 and is headquartered in Auckland, New Zealand.
How the Company Makes MoneyAroa Biosurgery generates revenue primarily through the sale of its regenerative medicine products to hospitals, healthcare providers, and surgical centers. The company has established key revenue streams through direct sales and strategic partnerships with distributors that expand its market reach. Additionally, Aroa may engage in collaborations with other healthcare companies to co-develop products or access new markets, further enhancing its revenue potential. The company's focus on innovative solutions and its ability to demonstrate improved patient outcomes contribute to its competitive positioning and revenue growth.

Aroa Biosurgery Ltd Financial Statement Overview

Summary
Aroa Biosurgery Ltd shows strong revenue growth and a robust balance sheet, but faces profitability and cash flow challenges. The positive EBITDA margin in 2025 indicates operational improvements, yet persistent negative net income and free cash flow are concerns.
Income Statement
62
Positive
Aroa Biosurgery Ltd has demonstrated solid revenue growth, with a significant increase from 2024 to 2025. The gross profit margin is strong, indicating efficient cost management. However, persistent negative net income and EBIT margins reflect ongoing profitability challenges. The negative EBITDA margin in previous years is a concern, though it has turned positive in 2025, showing operational improvements.
Balance Sheet
70
Positive
The balance sheet is robust with a high equity ratio, suggesting financial stability and a low debt burden. The debt-to-equity ratio is favorable, highlighting prudent leverage management. However, the return on equity is negative due to net losses, indicating inefficiencies in generating shareholder returns.
Cash Flow
58
Neutral
Cash flow management shows improvement with a reduced negative operating cash flow. However, free cash flow remains negative, indicating challenges in generating sufficient cash to cover capital expenditures. The free cash flow to net income ratio is not applicable due to negative net income, but overall trends suggest gradual improvement in cash flow management.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue77.15M76.97M63.36M59.31M36.88M20.51M
Gross Profit66.15M65.99M54.10M50.06M28.17M14.25M
EBITDA486.58K2.65M-6.78M683.92K-3.75M-7.05M
Net Income-3.49M-3.47M-9.75M-370.68K-7.79M-17.63M
Balance Sheet
Total Assets98.94M98.94M101.88M109.07M104.71M73.12M
Cash, Cash Equivalents and Short-Term Investments20.13M20.13M27.73M43.00M53.35M33.93M
Total Debt5.83M5.83M6.82M6.65M5.46M14.90M
Total Liabilities14.35M14.35M14.79M13.69M11.30M19.43M
Stockholders Equity84.59M84.59M87.08M95.38M93.40M53.69M
Cash Flow
Free Cash Flow-4.48M-5.69M-10.00M-10.66M-15.39M-6.05M
Operating Cash Flow-2.37M-2.33M-6.76M-3.53M-10.86M-4.68M
Investing Cash Flow444.62K273.54K9.31M6.79M-32.41M-19.74M
Financing Cash Flow-2.00M-1.34M-948.41K-471.78K34.98M34.06M

Aroa Biosurgery Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.66
Price Trends
50DMA
0.71
Negative
100DMA
0.67
Negative
200DMA
0.58
Positive
Market Momentum
MACD
-0.02
Positive
RSI
39.56
Neutral
STOCH
58.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ARX, the sentiment is Negative. The current price of 0.66 is below the 20-day moving average (MA) of 0.72, below the 50-day MA of 0.71, and above the 200-day MA of 0.58, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 39.56 is Neutral, neither overbought nor oversold. The STOCH value of 58.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ARX.

Aroa Biosurgery Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$18.36B47.2320.11%1.54%4.32%9.24%
54
Neutral
AU$849.74M64.4016.49%23.31%151.32%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
49
Neutral
AU$274.30M-78.71-2.01%16.93%76.47%
47
Neutral
AU$830.45M-22.71-44.49%55.91%22.60%
45
Neutral
AU$70.02M-5.38-31.98%34.20%-23.90%
44
Neutral
AU$176.12M-16.52-70.55%-257.32%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ARX
Aroa Biosurgery Ltd
0.66
-0.03
-4.35%
AU:PNV
Polynovo
1.23
-0.96
-43.84%
AU:COH
Cochlear
279.06
-18.77
-6.30%
AU:CYC
Cyclopharm Limited
0.79
-0.86
-52.12%
AU:EMV
EMvision Medical Devices Ltd.
1.92
0.00
0.00%
AU:4DX
4DMedical Ltd
1.71
1.23
256.25%

Aroa Biosurgery Ltd Corporate Events

Aroa Biosurgery Ltd Reports Half-Year 2026 Results
Nov 24, 2025

Aroa Biosurgery Ltd released its half-year results for 2026, highlighting its commitment to advancing regenerative healing technologies. The company continues to focus on enhancing its market position by developing innovative medical products, although specific financial details and impacts on stakeholders were not disclosed in the release.

The most recent analyst rating on (AU:ARX) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery Achieves Strong Revenue Growth and Financial Stability in H1 FY26
Nov 24, 2025

Aroa Biosurgery Limited reported a 14% increase in total revenue for the first half of FY26, reaching NZ$44.9 million, with significant growth in its Myriad product line. The company achieved a normalized EBITDA profit of NZ$1.8 million, a significant improvement from a loss in the previous year, and ended the period with a positive net cash flow. Aroa also received relief from quarterly reporting requirements by the ASX, indicating a stable financial position and operational efficiency. The company reaffirmed its FY26 guidance, projecting continued revenue growth and improved EBITDA, signaling a positive outlook for stakeholders.

The most recent analyst rating on (AU:ARX) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery Reports Improved Financial Performance Amid Sales Growth
Nov 24, 2025

Aroa Biosurgery Ltd reported a significant improvement in its financial performance for the six months ending 30 September 2025. The company achieved a 14% increase in product sales and a 259% rise in project fees, contributing to a 64% reduction in loss before tax from ordinary activities. This financial progress underscores Aroa’s strengthened market position and operational efficiency, which could positively impact stakeholders and enhance its competitive edge in the medical technology industry.

The most recent analyst rating on (AU:ARX) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery Issues Unquoted Equity Securities for Employee Incentive
Nov 12, 2025

Aroa Biosurgery Ltd announced the issuance of unquoted equity securities, including 519,444 restricted stock units and 888,888 performance rights, as part of an employee incentive scheme. This move is likely aimed at enhancing employee engagement and aligning their interests with the company’s growth objectives, potentially impacting the company’s operational dynamics and market positioning positively.

The most recent analyst rating on (AU:ARX) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery to Host Investor Event on H1 FY26 Results and Outlook
Nov 11, 2025

Aroa Biosurgery Limited is hosting an investor event on November 25, 2025, to discuss its H1 FY26 financial results and commercial outlook. The event will feature presentations from Aroa’s leadership, commercial partner TelaBio, and surgeons discussing clinical outcomes using Aroa’s Myriad™ product. This gathering aims to provide investors with insights into Aroa’s product innovation, clinical efficacy, and growth trajectory, potentially influencing stakeholder perspectives and the company’s market positioning.

The most recent analyst rating on (AU:ARX) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery Announces Director Departure and Securities Update
Nov 3, 2025

Aroa Biosurgery Limited announced the cessation of John Pinion as a director, effective October 31, 2025. This update includes details of his interests in the company’s securities, which consist of fully paid ordinary shares and options. The announcement is part of the company’s compliance with ASX listing rules and may have implications for its governance and strategic direction.

The most recent analyst rating on (AU:ARX) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery Announces Board Changes with New Appointment and Retirement
Oct 31, 2025

Aroa Biosurgery Limited has announced the appointment of Paul Shearer as a Non-Executive Director, bringing his extensive experience in the medical device industry to the company. Shearer’s global commercial expertise, particularly in the United States, is expected to bolster Aroa’s growth strategy as it continues to expand its market presence. Concurrently, John Pinion will retire from the Board after a decade of service, during which he contributed significantly to the company’s milestones. This leadership transition is poised to enhance Aroa’s strategic oversight and operational execution, potentially impacting its industry positioning and stakeholder interests.

The most recent analyst rating on (AU:ARX) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery’s Symphony™: A New Hope for Diabetic Foot Ulcers?
Oct 27, 2025

Study Overview: Aroa Biosurgery Ltd is conducting a clinical study titled ‘A Multi-Center, Randomized Controlled Clinical Investigation Evaluating Wound Closure With Symphony™ Versus Standard of Care in the Treatment of Non-Healing Diabetic Foot Ulcers.’ The study aims to assess the safety and effectiveness of Symphony™ in treating chronic non-healing diabetic foot ulcers over a 12-week period, potentially offering a significant advancement in wound care management.

Aroa Biosurgery’s Myriad™ Study: A Potential Game-Changer in Soft Tissue Reconstruction
Oct 27, 2025

Aroa Biosurgery Ltd is currently conducting a clinical study titled ‘Registry of Myriad™ Utilization in Soft Tissue Reconstruction Procedures.’ The study aims to evaluate the safety and clinical outcomes of Myriad™, a device used in soft tissue reconstruction surgeries. This research is significant as it could enhance treatment options for conditions like abdominal wound dehiscence and pressure injuries.

Aroa Biosurgery Releases Q2 Cashflow Report Highlighting Regenerative Healing Focus
Oct 15, 2025

Aroa Biosurgery Ltd has released its Q2 quarterly cashflow report, emphasizing its commitment to advancing regenerative healing technologies. The announcement, while not a prospectus or an offer of securities, serves to educate investors about the company’s financial performance and strategic direction. This release could impact the company’s market positioning by highlighting its ongoing efforts in innovation and product development, potentially influencing stakeholder perceptions and investment decisions.

The most recent analyst rating on (AU:ARX) stock is a Buy with a A$0.82 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery Reports Strong Quarter and Anticipates Favorable US Policy Changes
Oct 15, 2025

Aroa Biosurgery Limited reported positive financial performance for the quarter ending September 2025, with a net cash flow of NZ$2.1 million and cash receipts of NZ$23.5 million. The company achieved its highest sales quarter for the Myriad product line and published eight new peer-reviewed studies, enhancing its clinical credibility. A proposed US reimbursement policy change could benefit Aroa’s Symphony product, potentially improving its market positioning. The company plans to release its H1 FY26 results in November and will host an investor event in Sydney.

The most recent analyst rating on (AU:ARX) stock is a Buy with a A$0.82 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery to Host Webinar on Quarterly Results
Oct 9, 2025

Aroa Biosurgery Limited announced it will host a webinar to discuss its September quarterly results, featuring CEO Brian Ward and CFO James Agnew. This event signifies the company’s commitment to transparency and engagement with stakeholders, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (AU:ARX) stock is a Buy with a A$0.90 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery Announces Cessation of Securities
Oct 8, 2025

Aroa Biosurgery Ltd announced the cessation of several securities, including restricted stock units, options, and performance rights, due to unmet conditions or expiry without exercise. This update reflects adjustments in the company’s issued capital and may impact stakeholders’ perception of the company’s financial strategies and market positioning.

The most recent analyst rating on (AU:ARX) stock is a Buy with a A$0.90 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery Updates Director’s Interest in Securities
Sep 23, 2025

Aroa Biosurgery Ltd has announced a change in the director’s interest notice, specifically regarding Brian Ward’s indirect interest in the company’s securities. The update reveals an increase in performance share rights, which were issued following shareholder approval at the recent Annual General Meeting. This change reflects the company’s ongoing commitment to aligning its leadership’s interests with shareholder value and could potentially impact its market positioning by strengthening stakeholder confidence.

The most recent analyst rating on (AU:ARX) stock is a Buy with a A$0.90 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery Issues Performance Rights to Boost Employee Incentives
Sep 23, 2025

Aroa Biosurgery Ltd has announced the issuance of 1,051,869 performance rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to incentivize and retain key employees, potentially impacting its operational efficiency and competitive positioning in the biosurgery market.

The most recent analyst rating on (AU:ARX) stock is a Buy with a A$0.90 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 26, 2025