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Aurora Spine Corp (TSE:ASG)
:ASG
Canadian Market

Aurora Spine (ASG) AI Stock Analysis

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Aurora Spine

(ASG)

Rating:58Neutral
Price Target:
C$0.50
▲(61.29%Upside)
Aurora Spine's overall score is driven by solid revenue growth and cash flow improvements. However, technical indicators and valuation present concerns, and the company faces challenges in achieving profitability. The earnings call provided a positive outlook with product success and strategic growth, but financial challenges persist.

Aurora Spine (ASG) vs. iShares MSCI Canada ETF (EWC)

Aurora Spine Business Overview & Revenue Model

Company DescriptionAurora Spine (ASG) is a medical device company specializing in the development and commercialization of minimally invasive, regenerative spinal implant technologies. Primarily operating within the healthcare and medical sectors, the company is dedicated to improving spinal surgery outcomes through innovation in its core products, which include spinal fusion devices and pain management solutions.
How the Company Makes MoneyAurora Spine makes money through the sale of its medical device products to hospitals, surgical centers, and healthcare providers. The company's revenue model relies on the direct sales of its spinal fusion devices, proprietary surgical tools, and pain management products. Additionally, Aurora Spine may engage in strategic partnerships with healthcare institutions and distributors to expand its market reach and enhance product distribution. The company invests in research and development to continuously innovate and meet the evolving needs of the spinal surgery market, thereby potentially increasing its revenue streams.

Aurora Spine Earnings Call Summary

Earnings Call Date:May 21, 2025
(Q4-2024)
|
% Change Since: 3.33%|
Next Earnings Date:Aug 20, 2025
Earnings Call Sentiment Neutral
The earnings call highlights significant revenue growth, product success, and gross margin improvements. However, these positives are tempered by increased operating expenses, a fourth-quarter EBITDAC decline, and a sustained net loss. While Aurora's product portfolio shows promise, financial challenges remain.
Q4-2024 Updates
Positive Updates
Revenue Growth
Aurora Spine reported a 21% increase in revenue for fiscal year 2024, reaching $17.56 million compared to $14.52 million in 2023.
SiLO-TFX System Success
The SiLO-TFX system experienced a 135% increase in revenues, attributed to higher adoption and increased training sessions.
ZIP Series Performance
ZIP-51 saw a 69% increase in sales during 2024, emphasizing the product's market acceptance.
Gross Margin Improvement
Gross margins improved to 60.5% for fiscal year 2024, up from 56.5% in 2023.
Launch of AERO Fusion System
Aurora launched the AERO Fusion system in March 2025, with initial surgeries anticipated in the latter half of 2025.
Positive EBITDAC
For the first time, Aurora Spine achieved a full year of positive EBITDAC, totaling $0.28 million for fiscal 2024.
Negative Updates
Increased Operating Expenses
Operating expenses increased to $11.438 million for fiscal year 2024, up from $9.89 million in 2023, due to higher training and staff costs.
Fourth Quarter EBITDAC Decline
EBITDAC for the fourth quarter of 2024 was negative $0.32 million, influenced by fair value accounting and increased operating expenses.
Net Loss
Net loss for the fourth quarter of 2024 was $0.653 million, with the fiscal year 2024 ending with a net loss of $1.003 million.
Company Guidance
During the Aurora Spine Fourth Quarter and Fiscal Year 2024 Results Conference Call, a comprehensive financial and operational overview was provided. The company reported a 21% increase in revenue for 2024, reaching $17.56 million compared to $14.52 million in 2023. Notably, the SiLO-TFX system saw a remarkable 135% increase in revenue, contributing significantly to this growth. The ZIP series, particularly ZIP-51, experienced a 69% increase in sales. Gross margins improved to 60.5% for the fiscal year, up from 56.5% in 2023, attributed to the focus on proprietary products and better pricing strategies. Operating expenses rose to $11.438 million, driven by increased sales personnel and training costs. EBITDAC for 2024 turned positive at $0.28 million, a significant improvement from a negative $0.31 million in 2023. Net loss for the year reduced to $1.003 million from $1.68 million in 2023. The company ended the quarter with $0.826 million in cash, and management expressed confidence in their capital structure to meet budgetary needs, focusing on profitability and continued growth with new product launches and clinical studies.

Aurora Spine Financial Statement Overview

Summary
Aurora Spine has shown revenue growth but struggles with profitability due to negative EBIT and net profit margin. While the gross profit margin is strong, cash flow generation and cost management are significant challenges.
Income Statement
45
Neutral
Aurora Spine has shown a moderate improvement in revenue with a growth rate of 16.42% over the TTM. However, profitability remains a concern with a negative EBIT and net profit margin, indicating ongoing operational challenges. Gross profit margin is relatively strong at 60.38%, which is positive, but the negative net income suggests cost management issues.
Balance Sheet
50
Neutral
The company's debt-to-equity ratio of 0.74 indicates a balanced leverage position, but the negative return on equity raises concerns about profitability and value creation for shareholders. The equity ratio stands at 41.54%, reflecting a stable capital structure with no immediate liquidity concerns.
Cash Flow
40
Negative
Aurora Spine's free cash flow remains negative, although the operating cash flow to net income ratio shows some improvement. The free cash flow to net income ratio indicates challenges in generating cash relative to reported earnings, suggesting inefficiencies in cash management.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
16.90M14.52M14.88M10.54M8.65M11.15M
Gross Profit
10.21M8.21M7.81M4.83M3.47M3.55M
EBIT
-457.60K-446.20K-1.57M-2.71M-1.25M-1.25M
EBITDA
580.32K-446.20K-469.27K-1.90M-573.86K-692.83K
Net Income Common Stockholders
-635.51K-1.68M-1.50M-2.36M-232.09K-1.25M
Balance SheetCash, Cash Equivalents and Short-Term Investments
856.50K766.83K423.40K3.17M1.71M444.74K
Total Assets
6.84M11.99M10.12M10.56M7.16M6.67M
Total Debt
2.02M3.65M2.97M2.38M2.34M2.41M
Net Debt
1.16M2.88M2.55M-793.02K632.23K1.97M
Total Liabilities
3.88M6.69M5.81M4.99M3.87M4.91M
Stockholders Equity
2.96M5.30M4.32M5.57M3.28M1.77M
Cash FlowFree Cash Flow
-524.64K-1.41M-2.43M-2.85M-245.07K-285.99K
Operating Cash Flow
-136.05K-935.06K-1.56M-2.13M309.57K729.00
Investing Cash Flow
-388.58K-479.13K-873.21K-720.61K-554.64K-283.87K
Financing Cash Flow
1.03M1.76M-318.15K4.31M1.51M-128.62K

Aurora Spine Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.31
Price Trends
50DMA
0.32
Negative
100DMA
0.34
Negative
200DMA
0.36
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
48.47
Neutral
STOCH
83.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ASG, the sentiment is Negative. The current price of 0.31 is above the 20-day moving average (MA) of 0.31, below the 50-day MA of 0.32, and below the 200-day MA of 0.36, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.47 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ASG.

Aurora Spine Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
C$118.17M-8.34%0.69%-95.27%
TSASG
58
Neutral
C$25.76M-23.87%18.97%17.57%
TSPRN
54
Neutral
C$229.31M-66.14%51.21%15.33%
54
Neutral
$5.31B3.26-45.10%2.79%16.76%0.02%
50
Neutral
C$21.98M-163.62%113.85%11.38%
TSTLT
46
Neutral
C$47.08M-291.48%-8.63%7.04%
TSVPT
44
Neutral
C$17.16M207.08%280.56%-7.28%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ASG
Aurora Spine
0.31
0.05
19.23%
TSE:QIPT
Quipt Home Medical
2.96
-1.52
-33.93%
TSE:VPT
VentriPoint Diagnostics
0.12
-0.10
-45.45%
TSE:TLT
Theralase Technologies
0.18
-0.01
-5.26%
TSE:PINK
Perimeter Medical Imaging AI
0.24
-0.22
-47.83%
TSE:PRN
Profound Medical
7.87
-4.38
-35.76%

Aurora Spine Corporate Events

Business Operations and Strategy
Aurora Spine to Engage Investors at Lytham Partners Spring 2025 Conference
Positive
May 28, 2025

Aurora Spine Corporation announced its participation in the Lytham Partners Spring 2025 Investor Conference, where it will present a webcast and host one-on-one meetings with investors. This participation underscores Aurora Spine’s commitment to engaging with investors and stakeholders, potentially enhancing its market presence and investor relations.

Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Aurora Spine Reports Record Q1 2025 Financial Results and Strategic Growth Initiatives
Positive
May 22, 2025

Aurora Spine Corporation announced record financial results for the first quarter of 2025, with a 10% increase in revenue compared to the previous year. The company received FDA clearance for its AERO Facet Fusion System and reported significant sales growth in its DEXA-C cervical implant. Aurora Spine is optimistic about future growth, driven by its robust R&D efforts and upcoming product launches, including the DEXA-L series and the AERO system, which are expected to enhance patient outcomes and expand market reach.

Financial Disclosures
Aurora Spine to Announce Q1 2025 Financial Results
Neutral
May 19, 2025

Aurora Spine Corporation announced the release schedule for its first quarter fiscal 2025 financial results, which will be filed on May 21, 2025, with a press release and investor conference call to follow on May 22, 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Aurora Spine Reports Record Revenue and Positive EBITDAC for FY 2024
Positive
Apr 29, 2025

Aurora Spine Corporation reported a record revenue of $17.6 million for fiscal year 2024, marking a 21% increase from the previous year. The company’s financial success was driven by a 135% surge in sales of the SiLO-TFX SI joint implant, expansion of its internal sales force, and increased margins. The company also achieved its first annual positive EBITDAC and is poised for further growth with the recent FDA clearance of its new AERO product platform.

Financial DisclosuresRegulatory Filings and Compliance
Aurora Spine to Release Q4 and Fiscal 2024 Financial Results
Neutral
Apr 23, 2025

Aurora Spine Corporation announced the release of its fourth quarter and fiscal year 2024 financial results, scheduled for April 28, 2025. The company also clarified an error in its management information circulars regarding its stock option plan, ensuring the correct version will be included in future shareholder meeting materials.

Executive/Board ChangesBusiness Operations and Strategy
Aurora Spine Board Member James Snow Resigns to Assume Key Operational Role
Positive
Apr 14, 2025

Aurora Spine has announced the resignation of James Snow from its Board of Directors as he transitions to the role of Regulatory Affairs and Quality Assurance Manager within the company. This move highlights Snow’s commitment to Aurora Spine’s future and his belief in the company’s innovative technologies, as he aims to enhance compliance and quality across their product portfolio.

Product-Related AnnouncementsBusiness Operations and Strategy
Aurora Spine’s SiLO TFX System Shows Superior Performance in New Study
Positive
Apr 2, 2025

Aurora Spine announced the publication of a biomechanical study in the journal Neurospine, demonstrating the superior performance of its SiLO TFX ™ Sacroiliac Fusion System compared to traditional methods. The study highlights the system’s ability to reduce joint motion and preserve bone integrity, offering a promising alternative for sacroiliac joint fusion. The findings support Aurora Spine’s commitment to optimizing patient outcomes and reinforce its position as a leader in spinal implant technology.

Product-Related AnnouncementsBusiness Operations and Strategy
Aurora Spine Secures FDA Clearance for AERO Facet Fusion System
Positive
Mar 26, 2025

Aurora Spine has received FDA 510(k) clearance for its AERO Facet Fusion System, a minimally invasive device designed for patients with facet joint-related pain or instability. The system, which can be used independently or alongside larger spinal fusion surgeries, is expected to begin initial surgeries in late Q3 2025. The AERO system is engineered to promote bone fusion while minimizing soft tissue disruption, aligning with Aurora Spine’s commitment to patient-first innovations. The clearance is seen as a significant milestone for the company, with expectations that the AERO system will drive growth and improve patient care in spinal surgery.

Product-Related AnnouncementsBusiness Operations and Strategy
Aurora Spine to Showcase Innovations at 2025 AAOS Annual Meeting
Positive
Mar 11, 2025

Aurora Spine Corporation announced its participation in the 2025 American Academy of Orthopaedic Surgeons Annual Meeting, where it will showcase its advanced spinal surgery products such as the DEXA-C cervical cage and the SiLO TFX SI Fusion System. This event provides Aurora Spine an opportunity to connect with leading orthopaedic surgeons and highlight its unique technologies designed to improve surgical outcomes and cater to specific patient needs, potentially strengthening its position in the spinal implant industry.

Business Operations and Strategy
Aurora Spine Completes Enrollment in Pioneering Lumbar Fusion Study
Positive
Mar 10, 2025

Aurora Spine Corporation has completed patient enrollment for its REFINE study, which is the first prospective, multi-center, multi-specialty trial to evaluate the safety and efficacy of lumbar interlaminar fusion devices. This study aims to provide robust, long-term insights into patient outcomes and is expected to influence future clinical decision-making and elevate the standard of care in spinal fusion. The results will be presented at the ASPN annual conference in July 2025, highlighting Aurora Spine’s commitment to evidence-based innovation and offering a less invasive alternative to traditional spinal surgery.

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.