- Bullish On Anika Therapeutics's Pullback As Integrity Scales
Apr 30, 2026 · seekingalpha.com
Anika Therapeutics is refocusing on HA-based OA pain management and regenerative orthopedic products. The main drivers here are Monovisc, Orthovisc, and Integrity. Particularly, ANIK's Integrity received 510(k) clearance in 2023. Recently, its revenues have more than doubled in 2025. Hyalofast and Cingal also offer interesting regulatory catalysts, but they bring FDA timing and approval risks.
- Anika Therapeutics, Inc. Q1 2026 Earnings Call Summary
Apr 29, 2026
Anika Therapeutics, Inc. Q1 2026 Earnings Call Summary - Moby
Strategic Performance Drivers
Commercial channel growth of 12% was driven by the continued momentum of the Integrity platform and strong international OA pain management performance. Integrity procedures in the U.S. grew 35% year-over-year, with surgeons progressing to their fifth and tenth cases faster than initially expected as clinical confidence builds. Management is targeting the 92% of U.S. rotator cuff procedures that currently do not use augmentation, aiming to expand the market through easier-to-adopt instrumentation and larger patch sizes. Gross margin expansion to 64% reflects the early benefits of a lean manufacturing transformation focused on productivity, throughput, and reducing nonstandard work. OEM channel growth of 14% was primarily attributed to favorable order timing for U.S. OA pain management products and animal health shipments, though quarterly variability is expected to persist. The company is leveraging its HYAFF fiber technology to develop a new regenerative suture and tape program, aiming to tailor mechanical strength and biological response for soft tissue repair.
Outlook and Strategic Milestones
Full year 2026 revenue guidance of $114 million to $122.5 million is maintained, assuming 10% to 20% growth in the commercial channel and flat to slightly down performance in OEM. The Hyalofast PMA review remains on track for a potential fourth-quarter 2027 revenue impact, with management currently preparing responses to an FDA deficiency letter received in Q1. CINGAL bioequivalence study enrollment is proceeding as planned to support a future NDA submission and CMC work for hyaluronic acid as a drug. Adjusted EBITDA is expected to remain between 5% and 10% of revenue, supported by G&A cost reductions and manufacturing improvements, partially offset by lower J&J MedTech pricing. Management expects cash flow to improve as the year progresses following typical seasonal expense dynamics in the first quarter.
Operational and Structural Developments
SG&A expenses included $4.9 million in one-time severance-related costs associated with previously announced organizational restructuring and cost-reduction actions. The company completed its $15 million stock repurchase program as of April 10, 2026, at an average price of $10.76 per share. CINGAL achieved European Union MDR certification with expanded indications for the hip, shoulder, and ankle, supporting broader international clinical versatility. Two directors, Dr. Glenn Larsen and Bill Jellison, are stepping down as the Board evolves to reflect the company's post-divestiture focus.
Story Continues
Q&A Session Highlights
Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here.
Sustainability of gross margin expansion and manufacturing efficiencies
Management noted that while Q1 benefited from favorable product mix and order timing, the results demonstrate the potential of the new lean manufacturing system. Long-term focus remains on reducing cost per unit through productivity gains to create meaningful operating leverage as volumes scale.
Strategy for increasing surgeon adoption of Integrity platform
The company uses internal targets for new surgeon training and closely tracks the speed at which users reach their 10th case to measure the learning curve. Growth will be driven by a combination of 'boots on the ground' training and R&D efforts to make the procedure easier for surgeons to perform in the ASC setting.
Timeline and regulatory status for Hyalofast and CINGAL
Management expects to submit responses to the FDA's Hyalofast deficiency letter in the 'coming months' and has built a buffer into the 2027 commercialization timeline. CINGAL bioequivalence study enrollment pace is meeting original expectations, though a specific NDA filing window has not yet been disclosed.
One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.
View Comments
- Anika Therapeutics, Inc. (ANIK) Q1 2026 Earnings Call Transcript
Apr 29, 2026 · seekingalpha.com
Anika Therapeutics, Inc. (ANIK) Q1 2026 Earnings Call Transcript
- Anika Reports First Quarter 2026 Financial Results
Apr 29, 2026
Grew total company revenue 13%, driven by Commercial Channel strength and favorable OEM Channel order timing
Delivered 64% gross margin, +8 points year over year, driven by improved operational execution
Operational transformation generating early wins, delivering $4 million of adjusted EBITDA
BEDFORD, Mass., April 29, 2026 (GLOBE NEWSWIRE) -- Anika Therapeutics, Inc. (Nasdaq: ANIK), a global leader in the osteoarthritis (“OA”) pain management and regenerative solutions spaces focused on early‑intervention orthopedics, today announced financial results for the first quarter of 2026.
Total revenue for the first quarter of 2026 was $29.6 million, compared to $26.2 million in the prior-year period, representing growth of 13%. Growth was driven by strength across both channels, with OEM Channel revenue of $17.0 million, up 14%, and Commercial Channel revenue of $12.6 million, up 12% year-over-year.
Gross profit for the first quarter was $19.0 million, compared to $14.7 million in the prior-year period. Gross margin improved to 64.2%, compared to 56.1% in the first quarter of 2025, driven by operational execution, ongoing margin improvement initiatives and favorable product mix.
Total operating expenses were $24.5 million, compared to $19.0 million in the prior-year period, primarily reflecting $4.9 million of one-time severance costs. Remaining increases were largely related to investments in operations and research and development expenses to support ongoing programs.
Adjusted EBITDA for the first quarter of 2026 was $4.3 million, compared to $0.1 million in the first quarter of 2025, reflecting strong gross margin expansion and disciplined operational execution.
“Our strategic transformation and organizational realignment is yielding results and driving improved profitability and efficiencies throughout the organization,” said Steve Griffin, President and Chief Executive Officer of Anika Therapeutics. “We delivered a strong start to 2026, highlighted by double-digit revenue growth and gross margin expansion, which improved adjusted EBITDA. These results were led by strong growth in our Commercial Channel with Regenerative Solutions increasing 20% year over year, driven by 35% US procedure growth from Integrity, which generated $1.8 million in revenue during the quarter. In addition, OEM Channel performance reflected a combination of favorable order timing, lower 2025 sales volume, and solid execution by our teams to start 2026, contributing to a 14% revenue increase year over year.
Our margin performance in the first quarter demonstrates the leverage in our business model as volume scales and operational initiatives take hold, including the deployment of lean manufacturing principles that are enabling our teams to increase throughput and drive improved performance. These initiatives are designed to support our operations as we advance our portfolio through FDA review and position the company to scale production in anticipation of future growth. At the same time, we continue to make targeted investments across our regenerative pipeline and commercial business to position Anika for sustainable, profitable long-term growth.”
First Quarter 2026 Business Highlights and Current Business Updates
International OA Pain Management grew 9% in the first quarter reaching $8.9 million, led by continued regional expansion and improved market share.Integrity continued to demonstrate strong momentum, with U.S. sales execution driving a 35% increase in procedures year over year and generating $1.8 million in revenue. Growth was driven by sustained surgeon adoption in the U.S., the successful launch of larger Integrity sizes that expand addressable tendon applications, and increasing international penetration.Hyalofast PMA engagement with FDA continues to progress and review timeline remains in line with the previously provided timeline.Cingal bioequivalence study enrollment remains on track in preparation for an FDA NDA submission including necessary CMC work to support HA as a drug.OEM channel year over year growth driven by order timing of non-orthopedic and US OA Pain Management products including continued strong Monovisc demandTargeted operational investments improving productivity, discipline, and scalability
First Quarter 2026 Continuing Operations Financial Summary
Revenue $29.6 million, up 13% year over yearCommercial Channel revenue $12.6 million, up 12%OEM Channel revenue $17.0 million, up 14%Gross margin 64.2%Operating expenses $24.5 million, including $4.9 million of one-time severance expensesGAAP loss from continuing operations $5.1 million, ($0.37) per diluted shareAdjusted net income from continuing operations1 $3.8 million, $0.27 per diluted shareAdjusted EBITDA1 $4.3 millionCash and cash equivalents $41.0 million as of March 31, 2026
1 See description of non-GAAP financial information contained in this release.
Fiscal 2026 Guidance
Anika is maintaining the previously provided 2026 guidance:
Total Company Revenue between $114 and $122.5 million, up 1% to 9% year over year
Commercial Channel, $53 to $58 million, representing growth of 10% to 20% year over yearOEM Channel, $61 to $64.5 million, flat to modestly lower year over yearAdjusted EBITDA as a percent of revenue between 5% and 10%, reflecting higher revenues and reduced expenses offset by modestly lower U.S. pricing dynamics.
Company Completes $15 Million 10b5-1 Share Repurchase
The company completed its previously announced $15 million 10b5-1 share repurchase on April 10, 2026, with an average price of $10.76 per share.
Corporate Governance Update
As disclosed in the Company’s definitive proxy statement filed on April 28, 2026, Dr. Glenn Larsen and Bill Jellison have informed the Board of their intention to step down as directors as of the 2026 Annual Meeting as part of the Company’s continued transformation, with neither resignation related to any disagreement with the Company, management, or the Board.
The Company is grateful to Dr. Larsen and Mr. Jellison for their dedication and valuable contributions to Anika.
Conference Call and Webcast Information
Anika’s management will hold a conference call and webcast to discuss its financial results and business highlights today, Wednesday, April 29, 2026, at 8:30 am ET. The conference call can be accessed by dialing 1-800-717-1738 (toll-free domestic) or 1-646-307-1865 (international) and providing the conference ID number 82141. A live audio webcast will be available in the Investor Relations section of Anika’s website, www.anika.com. A slide presentation with highlights from the conference call will be available in the Investor Relations section of the Anika website. A replay of the webcast will be available on Anika’s website approximately two hours after the completion of the event.
About Anika
Anika Therapeutics, Inc. (NASDAQ: ANIK), is the global leader in the design, development, manufacturing, and commercialization of hyaluronic acid innovations. In partnership with clinicians, our sole focus is dedicated to delivering and advancing osteoarthritis pain management and orthopedic regenerative solutions. At our core is a passion to deliver a differentiated portfolio that improves patient outcomes around the world. Anika’s global operations are headquartered outside of Boston, Massachusetts. For more information about Anika, please visit www.anika.com.
ANIKA, ANIKA THERAPEUTICS, CINGAL, HYALOFAST, INTEGRITY, MONOVISC, and the Anika logo are trademarks of Anika Therapeutics, Inc. or its subsidiaries or are licensed to Anika Therapeutics, Inc. for its use.
Non-GAAP Financial Information1
Non-GAAP financial measures should be considered supplemental to, and not a substitute for, the Company’s reported financial results prepared in accordance with GAAP. Furthermore, the Company’s definition of non-GAAP measures may differ from similarly titled measures used by others. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company’s reported results of operations, Anika strongly encourages investors to review the Company’s consolidated financial statements and publicly filed reports in their entirety. The Company presents these non-GAAP financial measures because it uses them as supplemental measures in internally assessing the Company’s operating performance, and, in the case of Adjusted EBITDA, it is set as a key performance metric to determine executive compensation. The Company also recognizes that these non-GAAP measures are commonly used in determining business performance more broadly and believes that they are helpful to investors, securities analysts, and other interested parties as a measure of comparative operating performance from period to period.
Adjusted EBITDA
Adjusted EBITDA is defined by the Company as GAAP net income (loss) from continuing operations excluding depreciation and amortization, interest and other income (expense), income taxes, stock-based compensation expense, and shareholder activism costs.
Adjusted Net Income (Loss) from Continuing Operations and Adjusted EPS from Continuing Operations
Adjusted net income (loss) is defined by the Company as GAAP net income from continuing operations, on a tax effected basis, excluding stock-based compensation. Adjusted diluted EPS from continuing operations is defined by the Company as GAAP diluted EPS from continuing operations excluding stock-based compensation.
A reconciliation of adjusted EBITDA to adjusted net income (loss) from continuing operations to net income (loss) from continuing operations and adjusted diluted EPS from continuing operations to diluted EPS from continuing operations, the most directly comparable financial measures calculated and presented in accordance with GAAP, is shown in the tables at the end of this release.
Forward-Looking Statements
This press release may contain forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, concerning the Company's expectations, anticipations, intentions, beliefs or strategies regarding the future which are not statements of historical fact, including statements in the section titled “Fiscal 2026 Guidance” regarding 2026 revenue and adjusted EBITDA. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks, uncertainties, and other factors. The Company's actual results could differ materially from any anticipated future results, performance, or achievements described in the forward-looking statements as a result of a number of factors including, but not limited to, (i) the Company's ability to successfully commence and/or complete clinical trials of its products on a timely basis or at all; (ii) the Company's ability to obtain pre-clinical or clinical data to support, or to timely file domestic and international pre-market approval applications, 510(k) applications, or new drug applications, including the PMA for Hyalofast and the NDA for Cingal; (iii) that the FDA or other regulatory bodies may not approve or clear the Company’s applications, including the Hyalofast PMA because of the failure to achieve the pre-defined primary endpoints or because the FDA may determine that achievement of secondary endpoints and/or post hoc data analyses are not sufficient to support approval; (iv) that such approvals or clearances will not be obtained in a timely manner or without the need for additional clinical trials, other testing or regulatory submissions, as applicable; (v) the Company's research and product development efforts and their relative success, including whether we have any meaningful sales of any new products resulting from such efforts; (vi) the cost effectiveness and efficiency of the Company's clinical studies, manufacturing operations, and production planning; (vii) the strength of the economies in which the Company operates or will be operating, as well as the political stability of any of those geographic areas; (viii) future determinations by the Company to allocate resources to products and in directions not presently contemplated; (ix) the Company's ability to successfully commercialize its products, in the U.S. and abroad; (x) the Company's ability to provide an adequate and timely supply of its products to its customers; and (xi) the Company's ability to achieve its growth targets. Additional factors and risks are described in the Company's periodic reports filed with the Securities and Exchange Commission, and they are available on the SEC's website at www.sec.gov. Forward-looking statements are made based on information available to the Company on the date of this press release, and the Company assumes no obligation to update the information contained in this press release.
For Investor Inquiries:
Anika Therapeutics, Inc.
Matt Hall, 781-457-9554
Executive Director, Corporate Development and Investor Relations
investorrelations@anika.com
Anika Therapeutics, Inc. and SubsidiariesConsolidated Statements of Operations(in thousands, except per share data)(unaudited) For the Three Months Ended March 31, For the Three Months Ended March 31, 2026 2025 2026 2025 Revenue $29,612 $26,168 $29,612 $26,168 Cost of Revenue 10,615 11,487 10,615 11,487 Gross Profit 18,997 14,681 18,997 14,681 Operating expenses: Research and development 6,713 6,059 6,713 6,059 Selling, general and administrative 17,772 12,906 17,772 12,906 Total operating expenses 24,485 18,965 24,485 18,965 Loss from operations (5,488) (4,284) (5,488) (4,284) Interest and other income (expense), net 667 415 667 415 Loss before income taxes (4,821) (3,869) (4,821) (3,869) Provision for income taxes 235 89 235 89 Loss from continuing operations (5,056) (3,958) (5,056) (3,958) Loss from discontinued operations, net of tax - (915) - (915) Net loss $(5,056) $(4,873) $(5,056) $(4,873) Net loss per share: Basic Continuing Operations $(0.37) $(0.28) $(0.37) $(0.28) Discontinued Operations $- $(0.06) $- $(0.06) $(0.37) $(0.34) $(0.37) $(0.34) Diluted Continuing Operations $(0.37) $(0.28) $(0.37) $(0.28) Discontinued Operations $- $(0.06) $- $(0.06) $(0.37) $(0.34) $(0.37) $(0.34) Weighted average common shares outstanding: Basic 13,531 14,297 13,531 14,297 Diluted 13,531 14,297 13,531 14,297
Anika Therapeutics, Inc. and Subsidiaries Consolidated Balance Sheets (in thousands, except per share data) (unaudited) March 31, December 31, ASSETS 2026 2025 Current assets: Cash and cash equivalents$41,020 $57,481 Accounts receivable, net 25,768 23,690 Inventories, net 22,838 18,787 Prepaid expenses and other current assets 3,935 3,400 Total current assets 93,561 103,358 Property and equipment, net 39,722 40,324 Right-of-use assets 25,430 25,939 Other long-term assets 4,303 4,034 Notes receivable 5,679 5,636 Deferred tax assets 1,150 1,275 Intangible assets, net 1,650 1,650 Goodwill 7,892 8,054 Total assets$179,387 $190,270 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable$6,339 $6,041 Accrued expenses and other current liabilities 14,627 15,867 Total current liabilities 20,966 21,908 Other long-term liabilities 726 701 Lease liabilities 23,794 24,196 Stockholders’ equity: Common stock, $0.01 par value 133 139 Additional paid-in-capital 83,347 87,498 Accumulated other comprehensive loss (5,310) (4,959) Retained earnings 55,731 60,787 Total stockholders’ equity 133,901 143,465 Total liabilities and stockholders’ equity$179,387 $190,270
Anika Therapeutics, Inc. and Subsidiaries Consolidated Statements of Cash Flows (in thousands) (unaudited) For the Three Months Ended March 31, 2026 2025 Cash flows from operating activities: Net loss$(5,056) $(4,873) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 1,407 1,383 Amortization of acquisition related intangible assets - 209 Non-cash operating lease cost 464 577 Stock-based compensation expense 6,641 2,863 Deferred income taxes 108 18 Provision for doubtful accounts (24) (346) Provision for inventory 1,032 832 Interest income on notes receivable (179) (224) Gain on sale of assets (52) (300) Changes in operating assets and liabilities: Accounts receivable (2,180) 3,034 Inventories (5,407) 523 Prepaid expenses, other current and long-term assets (1,728) (203) Accounts payable 745 47 Operating lease liabilities (468) (569) Accrued expenses, other current and long-term liabilities (1,339) (3,088) Income taxes 1,190 (13) Net cash provided by operating activities (4,846) (130) Cash flows from investing activities: Purchases of property and equipment (1,431) (2,824) Proceeds from sale of Parcus - 4,496 Note receivable 192 - Net cash used in investing activities (1,239) 1,672 Cash flows from financing activities: Repurchases of common stock (8,690) (3,971) Cash paid for tax withheld on vested restricted stock awards (1,657) (1,467) Net cash used in financing activities (10,347) (5,438) Exchange rate impact on cash (29) 108 Increase (decrease) in cash and cash equivalents (16,461) (3,788) Cash and cash equivalents at beginning of period 57,481 57,159 Cash and cash equivalents at end of period$41,020 $53,371
Anika Therapeutics, Inc. and Subsidiaries Reconciliation of GAAP Income (Loss) from Continued Operations to Adjusted EBITDA (in thousands) (unaudited) For the Three Months Ended March 31,For the Years Ended March 31, 2026 2025 2026 2025 Loss from continuing operations$(5,056) $(3,958)$(5,056) $(3,958)Interest and other (income) expense, net (667) (415) (667) (415)Provision for income taxes 235 89 235 89 Depreciation and amortization 1,407 1,416 1,407 1,416 Stock-based compensation 6,641 2,995 6,641 2,995 Non-recurring professional fees 169 - 169 - Severance costs 1,587 - 1,587 - Adjusted EBITDA$4,316 $127 $4,316 $127 Anika Therapeutics, Inc. and Subsidiaries Reconciliation of GAAP Net Income from Continuing Operations to Adjusted Net Income from Continuing Operations (in thousands) (unaudited) For the Three Months Ended March 31,For the Years Ended March 31, 2026 2025 2026 2025 Loss from continuing operations$(5,056) $(3,958)$(5,056) $(3,958)Product rationalization, tax effected - - - - Arbitration settlement, tax effected - - - - Stock-based compensation, tax effected 6,965 3,063 6,965 3,063 Non-recurring professional fees, tax effected 177 - 177 - Severance costs, tax effected 1,664 - 1,664 - Adjusted net income (loss) from continuing operations$3,750 $(895) 3,750 $(895) Anika Therapeutics, Inc. and Subsidiaries Reconciliation of GAAP Diluted Earnings from Continuing Operations Per Share to Adjusted Diluted Earnings from Continuing Operations Per Share (in thousands, except per share data) (unaudited) For the Three Months Ended March 31,For the Years Ended March 31, 2026 2025 2026 2025 Diluted loss from continuing operations per share$(0.37) $(0.28)$(0.37) $(0.28)Stock-based compensation, tax effected 0.51 0.22 $0.51 0.22 Non-recurring professional fees, tax effected 0.01 $0.01 - Severance costs, tax effected 0.12 - 0.12 - Costs of shareholder activism, tax effected - - - - Adjusted diluted net income (loss) from continuing operations per share$0.27 $(0.06)$0.27 $(0.06)
Anika Therapeutics, Inc. and Subsidiaries Revenue by Product Family (in thousands, except percentages) (unaudited) For the Three Months Ended March 31, For the Three Months Ended March 31, 2026 2025 $ change % change 2026 2025 $ change % change OEM Channel$17,035 $14,909 $2,126 14% $17,035 $14,909 $2,126 14% Commercial Channel 12,577 11,259 1,318 12% 12,577 11,259 1,318 12% $29,612 $26,168 $3,444 13% $29,612 $26,168 $3,444 13%
- Anika Reports First Quarter 2026 Financial Results
Apr 29, 2026 · globenewswire.com
Grew total company revenue 13%, driven by Commercial Channel strength and favorable OEM Channel order timing Delivered 64% gross margin, +8 points year over year, driven by improved operational execution Operational transformation generating early wins, delivering $4 million of adjusted EBITDA BEDFORD, Mass., April 29, 2026 (GLOBE NEWSWIRE) -- Anika Therapeutics, Inc. (Nasdaq: ANIK), a global leader in the osteoarthritis (“OA”) pain management and regenerative solutions spaces focused on early‑intervention orthopedics, today announced financial results for the first quarter of 2026.
- ANIKA REPORTS FIRST QUARTER 2026 FINANCIAL RESULTS
Apr 29, 2026
GREW TOTAL COMPANY REVENUE 13%, DRIVEN BY COMMERCIAL CHANNEL STRENGTH AND FAVORABLE OEM CHANNEL ORDER TIMING DELIVERED 64% GROSS MARGIN, +8 POINTS YEAR OVER YEAR, DRIVEN BY IMPROVED OPERATIONAL EXECUTION OPERATIONAL TRANSFORMATION GENERATING EARLY WINS, DELIVERING $4 MILLION OF ADJUSTED EBITDA BEDFORD, MASS., APRIL 29, 2026 (GLOBE NEWSWIRE) -- ANIKA THERAPEUTICS, INC. (NASDAQ: ANIK), A GLOBAL LEADER IN THE OSTEOARTHRITIS (“OA”) PAIN MANAGEMENT AND REGENERATIVE SOLUTIONS SPACES FOCUSED ON EARLY‑INTERVENTION ORTHOPEDICS, TODAY ANNOUNCED FINANCIAL RESULTS FOR THE FIRST QUARTER OF 2026.
- Anika (ANIK) Q2 2025 Earnings Call Transcript
Apr 21, 2026
Image source: The Motley Fool.
Date
Wednesday, July 30, 2025 at 8:30 a.m. ET
Call participants
President and Chief Executive Officer — Cheryl Renee Blanchard, Ph.D. Executive Vice President, Chief Financial Officer and Chief Operating Officer — Stephen D. Griffin Director of Corporate Development and Investor Relations — Matt Hall
Full Conference Call Transcript
Matt Hall: Thank you. Good morning, and thank you for joining us for Anika's Second Quarter 2025 Conference Call and Webcast. I'm Matt Hall, Anika's Director of Corporate Development and Investor Relations. Our earnings press release was issued earlier this morning and is available on our Investor Relations website located at www.anika.com as of the supplementary PowerPoint slides that will be used for the discussion today. With me on the call are Dr. Cheryl Blanchard, President and Chief Executive Officer; and Steve Griffin, Executive Vice President, Chief Financial Officer and Chief Operating Officer, who will present our second quarter 2025 financial results and business highlights. Please take a moment and open the slide presentation and refer to Slide #2.
Before we begin, please understand that certain statements made during the call today constitute forward-looking statements as defined in the Securities Exchange Act of 1934. These statements are based on our current beliefs and expectations and are subject to certain risks and uncertainties. The company's actual results could differ materially from any anticipated future results, performance or achievements. We make no obligation to update these statements should future financial data or events occur that differ from the forward-looking statements presented today. Please also see our most recent SEC filings for more information about risk factors that could affect our performance.
In addition, during the call, we may refer to several adjusted or non-GAAP financial measures, which may include adjusted EBITDA, adjusted net income from continuing operations and adjusted earnings per share from continuing operations. which are used in addition to results presented in accordance with GAAP financial measures. We believe that non-GAAP measures provide an additional way of viewing aspects of our operations and performance. But when considered with GAAP financial measures and the reconciliation of GAAP measures, they provide an even more complete understanding of our business. A reconciliation of these adjusted non-GAAP financial results to the most comparable GAAP measurements are available at the end of the presentation slide deck and our second quarter 2025 press release.
Story Continues
And now I'd like to turn the call over to our President and CEO, Dr. Cheryl Blanchard. Cheryl?
Cheryl Renee Blanchard: Thanks, Matt. Good morning, everyone, and thank you for joining us today to discuss Anika's second quarter 2025 results. Please turn to Slide 3. This has been a meaningful quarter for Anika, including a significant clinical update on Hyalofast. I'll begin today's remarks with that important development. But before I dive in, I want to note that our quarterly performance was in line with expectations, and we remain on track to deliver our full year 2025 guidance. I'll return to our financial results after walking through the Hyalofast clinical update. Earlier today, we shared an important announcement on the top line results from our U.S. pivotal Phase III Hyalofast clinical trial.
This study, which enrolled its first patient in 2015 is a randomized controlled trial comparing Hyalofast in combination with autologous bone marrow aspirate concentrate, also called BMAC, to an active comparator as the control arm, a surgical technique called microfracture in the treatment of articular cartilage defects. Superiority between the groups was to be determined with 2 prespecified co-primary endpoints, percent change from baseline to 2 years in both KOOS Pain and IKDC Function. While Hyalofast demonstrated consistent improvements in treated patients across all measures of pain and function relative to microfracture, we're disappointed the study missed on achieving statistical significance on its prespecified co-primary endpoints under the original statistical framework.
Given the consistently demonstrated improvements over microfracture in this trial and the efficacy of Hyalofast demonstrated in numerous independent studies outside the U.S. We believe these results reflect limitations in the study context rather than the performance of Hyalofast itself. Importantly, we remain highly encouraged by the totality of evidence supporting the product, which I will discuss. As a reminder, Hyalofast has successfully treated more than 35,000 patients in over 35 countries since its launch in 2009 outside the U.S. Let me take a moment to dive into more detail on the study results. The trial required randomization to microfracture, which was considered the standard of care when the study was initiated. Microfracture served as the active comparator.
However, over the 10 years of trial enrollment, it's broad use by surgeons declined significantly, and it is no longer regarded as the standard of care for cartilage lesions in most countries, including the U.S. The study was likely impacted by both a higher subject dropout rate in the microfracture arm and missed visits during COVID, both resulting in missing data. This missing data resulted in a reduced evaluable sample size and complicated the statistical analysis. In accordance with FDA guidelines, Anika's statistically imputed missing data, which did not treat withdrawals from the microfracture arm as treatment failures. To be clear, Hyalofast demonstrated improvements over microfracture but the study did not achieve statistical significance in the co-primary endpoints.
Importantly, we did achieve statistical significance on several key secondary endpoints and other measures including KOOS Sports and Recreation Function, KOOS Quality of Life and Total KOOS, all of which have served as the basis for FDA approval of the other cartilage repair products available in the U.S. In addition, because Anika has sold Hyalofast outside the U.S. for over 15 years, we have a significant amount of clinical data from a number of independent international clinical studies including a paper published last year with positive 15-year outcomes.
We believe the totality of the data, including hitting significance on endpoints used for prior FDA approvals statistically significant responder analyses and multiple independent international studies strongly supports the clinical value of Hyalofast as a single-stage off-the-shelf cartilage repair solution. This is especially compelling when compared to the current U.S. standard of care that requires 2 separate surgical procedures. Based on these results, we plan to submit the third and final PMA module on our original schedule in the second half of this year after data analysis has been completed. Once the data analysis is complete, we will provide further disclosure of the data.
This submission will include post-stock analyses and additional endpoints that achieved statistical significance in this study that have previously been accepted by the FDA and other approvals in addition to the robust international data. We remain confident in the strength of our data and look forward to working closely with the agency as they review our application through the Breakthrough Devices program. In anticipation of upcoming discussions with the FDA. We are extending our commercial time line to 2027 to ensure adequate time for a thorough review and dialogue around the full data package. Hyalofast continues to represent a significant opportunity for Anika to expand our leadership in regenerative solutions and deliver meaningful innovation to patients suffering from cartilage lesions.
Turning to Cingal, I am pleased to announce that we made meaningful progress during the quarter advancing the final steps toward NDA filing and remaining on track to initiate the bioequivalence study by year-end. As a reminder, this bioequivalent study and the toxicity studies initiated earlier this year address the final requirements before submission. We plan to provide an update on the Cingal program timing after we start the bioequivalence study. Next, I'd like to provide an update on Integrity.
I'm pleased to share that Integrity has already exceeded its full year 2024 performance and is currently on track to more than double in 2025, ahead of original expectations, and Integrity led to 41% growth in Regenerative Solutions revenue this quarter. This exceptional growth reflects our early positive clinical data, strong market momentum and increasing adoption across a broader base of surgeons. What's particularly encouraging is that surgeons are not only using Integrity more frequently, but also expanding its application across a wider range of tendon repair procedures.
While the shoulder remains the primary driver of the U.S. augmentation market, we see meaningful traction in other anatomies, including the hip, knee and ankle, which together represent over $40 million in addressable market opportunity. In other news around Integrity momentum, during the quarter, we received 510(k) clearance for 2 new Integrity shapes and sizes that are planned to launch in a limited release by year-end. These 2 new SKUs are designed to support repairs in both insertional and mid substance Achilles tendon, patellar tendon, quadriceps tendon and gluteus medius tendon to name a few.
The revenue contributions of these new shapes and sizes will be modest in the second half of this year as we continue to ramp up production and training activities. However, we expect them to positively impact future commercial sales for this critical product. This expansion further strengthens our ability to penetrate this addressable market and reinforces Integrity's position as a versatile and scalable regenerative platform. Let me now walk you through the high-level financial results for the quarter. I am pleased to report that we delivered financial results in line with expectations as we overcame difficult manufacturing yield challenges at the start of the quarter.
I'm proud of the work that our teams have done to overcome these challenges despite the financial impact that it had in the quarter. Revenue in the quarter was down 8%. However, we continued to demonstrate strength in our commercial channel led by our regenerative solutions offerings, which were up 41%. Our OEM channel, although lower year-over-year was in line with our expectations as J&J works to stabilize this important profitable channel for our business. In light of the near-term revenue pressure, we have taken proactive steps to reset our operating expense profile, driving a 17% reduction in total operating expenses year-over-year.
Adjusted EBITDA was roughly flat for the quarter, while we continue to invest in our most promising commercial opportunities. Lastly, I will mention that we have successfully completed the material transition services activities with respect to the divestitures of both Parcus and Arthrosurface and are now fully focused on our strategy, leveraging our proprietary hyaluronic acid technologies. With that, I'll now turn the call over to Steve for a detailed review of our financial results.
Stephen D. Griffin: Thank you, Cheryl. Before we dive into the financial results, I want to begin with an update on the production challenges we encountered earlier this quarter. Since April, our teams have successfully resolved the lower production yields and restored output to historic levels. While we experienced reduced shipments in April and May, I want to emphasize that this did not result in any delayed deliveries to patients. Toward the end of the quarter, we were modestly behind on certain international OA Pain shipments, which impacted commercial revenue slightly. However, we expect to fully recover and deliver product for these purchase orders in the third quarter.
I'm proud of the cross-functional collaboration that enabled us to resolve this issue within the quarter. and we've implemented new procedures to help ensure that this disrupt type of disruption does not recur. With that, I'll now provide financial updates on the quarter. Please refer to Slide 4 of the presentation. In the second quarter, Anika generated $28.2 million in total revenue, an 8% decline compared to the same period in 2024. Revenue in our commercial channel which includes our globally distributed, highly differentiated products was flat year-over-year at $11.9 million. However, within this channel, regenerative solutions delivered standout performance, growing 41% year-over-year driven by continued momentum in the Integrity Implant System.
Importantly, Integrity has now achieved sequential growth for 5 consecutive quarters and as of June, we've already exceeded full year 2024 revenue for the product on track to more than double in 2025. This underscores the strength of the platform and the growing demand we are seeing in the market. Offsetting this growth was a 10% decline in international OA pain sales, primarily due to approximately $900,000 in unfilled orders stemming from previously mentioned lower yields as well as a difficult year-over-year comparison due to the timing of shipments in Q2 2024. Absent the lower yields, we would have expected international OA Pain to be flat in the commercial channel to be up approximately 8%.
With yields now fully restored, our teams are working diligently to fulfill backlog distributor orders and expect to recover these orders in the third quarter. Revenue in the OEM channel, which includes our domestic OA Pain and nonorthopedic products sold under long-term agreements, declined 13% in the second quarter to $16.3 million. This performance was in line with our expectations, reflecting continued pressure on demand and pricing for Orthovisc as well as lower pricing for Monovisc, offset partially by higher end-user volume. Monovisc pricing was stronger this quarter due to the timing of contractually obligated payer rebates from J&J, which, as with others in this market can vary significantly from quarter-to-quarter.
We anticipate a pricing decline in Q3, followed by a modest rebound in the fourth quarter, with no change to our full year pricing outlook. While we do not directly control this channel, we remain actively engaged with our partner to drive for greater price stability and market expansion. Despite ongoing headwinds, Monovisc and Orthovisc continue to lead the U.S. market and remain profitable contributors to our business. The remainder of our OEM business, our nonorthopedic sales grew in the quarter due to the timing of customer orders. Second quarter gross margin was 51%, down 16 percentage points from the same period last year.
The primary driver was a onetime $3 million charge related to the lower yields of Monovisc and Cingal in April and May. This charge, largely noncash represents the full extent of the lower yields and falls within the previously communicated range for the full year impact. Excluding this onetime item, gross margin would have been above 60% for the quarter. In addition, gross margins were impacted by a $3 million year-over- year decline in Monovisc and Orthovisc sales to J&J, primarily driven by lower pricing that impacts both transfer units and royalties and directly reduces gross profit.
With the lower yields now resolved, we expect gross margins to improve in the second half of the year to the 58% to 59% range as we communicated on our first quarter call. That said, the combination of reduced high-margin J&J revenue and the first half manufacturing challenges will result in a lower overall gross margin for 2025. These dynamics were anticipated and are already reflected in our full year guidance. Turning to operating expenses. Total second quarter OpEx was $18.5 million, down $3.8 million or 17% compared to the same period last year. Selling, general and administrative expenses declined 22%, while research and development expenses were down 6%.
The $3 million reduction in SG&A was primarily driven by a onetime nonrecurring $1.6 million expense in 2024 and $1.4 million in headcount-related cost savings actions. As we've pivoted the strategic focus of the company, we continue to streamline and optimize our organizational structure to align with our future direction. These actions reflect our commitment to disciplined cost management and mitigating the impact of revenue pressures while continuing to invest in areas that support long-term growth. Adjusted EBITDA from continuing operations was negative $200,000 in the second quarter, a decline of $4.9 million compared to the same period in 2024.
The decrease was primarily driven by the onetime scrap costs for our recent manufacturing challenges in addition to lower high-margin revenue from J&J, partially offset by the meaningful reductions in operating expenses. Without the onetime scrap costs, the company would have generated positive EBITDA in the quarter. Now turning to cash and liquidity. In the second quarter, we used $200,000 in operating cash flow an improvement compared to the $1.1 million of cash used in the same period last year. This was driven by stronger working capital management and disciplined cost controls in response to revenue pressures. We invested $1.4 million in capital expenditures during the quarter, down $2 million year-over-year due to timing.
These investments are focused on expanding capacity at our Massachusetts manufacturing facility to support anticipated volume growth across Monovisc, Cingal, Integrity and Hyalofast. This will position us well to meet future demand and scale efficiently. We ended the second quarter with $53 million in cash and no debt. Now on Slide 5, I'll review our full year financial outlook for 2025. We are maintaining our 2025 full year guidance. For the full year, we continue to expect our commercial channel to generate between $47 million and $49.5 million in revenue, representing 12% to 18% growth in 2025. Our OEM channel remains on track to deliver between $62 million and $65 million, a range of 16% to 20% decline versus 2024.
At the midpoint of down 18%, this range is reflective of higher volumes but lower pricing for J&J. As a reminder, J&J has full control of sales, marketing and pricing activities for these products in the United States, and Anika receives transfer unit revenue and royalties based on J&J's end user pricing. Now turning to profitability. We are maintaining our 2025 adjusted EBITDA guidance range of negative 3% to positive 3%. As a reminder, this range is reflective of 3 primary impacts all of which we shared at the end of the first quarter. First, the impacts from lower manufacturing yields and scrap for Monovisc and Cingal experienced in the first half of 2025.
Second, lower pricing from J&J for Monovisc and Orthovisc. And lastly, the 2025 costs associated with the Cingal bioequivalent study required for our NDA filing. As a result of the Hyalofast clinical trial outcomes, we are revising our long-term revenue guidance for the commercial channel to reflect a possible extension of the FDA review process. While we still plan to file the PMA in the second half of 2025, we are now modeling for a 12-month delay in launch timing. As a result, we are updating our commercial channel growth outlook to 10% to 20% in both 2026 and 2027 compared to our prior range of 20% to 30% growth.
We currently anticipate a $3 million revenue contribution from Hyalofast in 2027 with full market release in 2028. These revised projections reflect growth from our already approved products, particularly Integrity and continued strength in our international OA Pain portfolio, both of which have demonstrated strong momentum. Despite this adjustment, our liquidity remains strong with no need to raise capital, and we remain confident in our ability to execute on our long-term strategy. With that, I will now turn the call back over to Cheryl.
Cheryl Renee Blanchard: Thanks, Steve. In closing, we remain confident in the key value drivers of our business. Integrity continues to outperform expectations, and we anticipate double-digit organic growth in our commercial channel, consistent with our 2025 guidance. We have a clear path forward to complete the Cingal NDA submission. And while the Hyalofast trial did not meet its primary end points, we believe the totality of the data supports a viable path to FDA approval. I want to sincerely thank the entire Anika team for their continued dedication to delivering innovative solutions that improve the lives of patients around the world. And with that, we'll open up the line for questions. Operator, please proceed.
Operator:[Operator Instructions] Your first question comes from Anderson Schock with B. Riley Securities.
Anderson Schock: Congrats on a strong quarter. So your gross margin guidance of 58% to 59% implies gross margins returning to about 62% to 63% in the back half of the year. I guess what will drive the sequential improvement?
Stephen D. Griffin: Yes, I appreciate the question, Anderson, and I appreciate the opportunity to clarify. My commentary is specifically 58% to 59% in the second half of the year. for the overall margin to be slightly below that on the aggregate for the full year, given the first half dynamics. And I think what gives us that confidence is the fact that a lot of the charges that stemmed from the beginning of this quarter aren't very much so onetime in nature. And when I look at the performance of the business, excluding that, the business performed well in the quarter.
I think one thing that we are very aware of is the fact that the gross margins for the second quarter, excluding that onetime impact, are above 60% and the second half will be slightly below that. A lot of that is driven by the timing -- or excuse me, the pricing dynamic for J&J on Monovisc and Orthovisc that we expect in the second half of the year.
Anderson Schock: Okay. Got it. And then do you have any progress to report on additional OEM partnerships to diversify your OEM revenue away from J&J?
Cheryl Renee Blanchard: Yes. In terms of kind of additional opportunities in the OEM channel. I don't have anything to report today. That is a topic that we continue to assess. And we have talked about the fact that Cingal will most likely fit into that OEM channel. And as we make continued progress really making meaningful progress here this year in getting closer to an NDA filing. That's certainly a topic that will become probably more visible as we move into the future.
Anderson Schock: Okay. Got it. Okay. Got it. And then I guess, Integrity has demonstrated some really impressive growth in shoulder. How should we think about the expanded market opportunity with the new configurations for foot and ankle and also knee and hip?
Cheryl Renee Blanchard: Yes. Thanks for the question. What we've seen with Integrity is even with the current sizes that we sell that the surgeons are so excited about the benefits and features that integrity provides them, especially on kind of the enhanced regenerative capacity and the strength at time zero, even when it's wet that in a lot of those other applications that I talked about today, where there's a real need for additional strength and future retention strength they started using existing integrity in those applications, but it wasn't really fit to purpose from a size and aspect ratio perspective. So they're excited to start using these new shapes and sizes in those other applications.
So I think while we've already been serving that additional kind of $40 million addressable market opportunity, we think these new shapes and sizes that are more purpose fit and designed specifically for those anatomic locations will give us an increased opportunity going forward. And as I mentioned, kind of having a more material impact on our commercial revenue into next year. This year is really around a limited release and getting our feet under us from a manufacturing and training and education and marketing perspective. But we're excited to get those products out there this year, and we have a group of surgeons that are ready to go.
Anderson Schock: Okay. Got it. And then I guess on Hyalofast, given the missed primary endpoints, I guess, what gives you the confidence that the FDA could approve based on secondary endpoints in the international data?
Cheryl Renee Blanchard: Yes. It's a great question. So this product falls under the breakthrough device designation. And FDA has encouraged us to file all of our data, the study was really primarily impacted by missing data from the complexities of randomizing to that microfracture arm and the change in medical practice that occurred over the time of the trial. And frankly, missed data that occurred during COVID, which the FDA actually put guidance out around because the number of trials were impacted by that dynamic over that time period.
So FDA has encouraged us to submit our full data package, including the secondary endpoints that we did hit statistical significance on those secondary endpoints are what got used for other products that are currently approved in the United States. And we have a very complete data package and robust data package of independent studies that were performed from our over year -- 15 years of clinical experience outside the United States.
Operator: The next question comes from Jim Sidoti with Sidoti & Company.
James Philip Sidoti: So with regard to gross margin, how should we think about gross margin going forward as the commercial channel becomes a bigger piece of the revenue part.
Stephen D. Griffin: Yes, we haven't given long-term guidance as to where to expect gross margins into the future. But I would say the -- we have noted that the commercial channel is at a lower gross margin at its current state because of the fact that it includes our international products being sold, and those are generally at a lower price point. I would say, Jim, so in the future, I would expect it to be in and around the range that I've shared for the second half. And then there's sort of 2 things that are affecting it. One is the growth in the commercial channel, which could be an element that would depress that gross margin over time.
But also the growth in our newest products are -- tend to be at a higher margin. So we'd expect to see that hopefully offset where we'd expect to see the declines from the international growth. So overall, in and around the range for the second half of this year.
James Philip Sidoti: Okay. But it sounds like as integrity and hopefully, Hyalofast get into the market that those would be accretive to gross margin.
Stephen D. Griffin: That is correct.
James Philip Sidoti: Okay. And with regards to Cingal, Cheryl, you talked about the distribution a little bit. Could you sign a distribution deal prior to release of the product? Or are you going to wait for FDA approval to announce something?
Cheryl Renee Blanchard: Yes. I'll tell you on that topic, my focus is in driving as much shareholder value as I can with that incredible product that has very exciting clinical data and a real opportunity in the U.S. market as a next-generation osteoarthritis pain product. So the decision around timing for that is really going to be driven around the best way to drive value. The good news is that we are making real progress with the FDA. We've got processes ongoing to overcome the final 2 filing issues and look forward once we begin that bioequivalent study to giving a full update on the time line of that program.
James Philip Sidoti: All right. All right. And the last one for me. Cash, you don't give specific guidance on cash flow, but can we assume you're probably at -- in terms of cash on hand, this is probably a low point for you that at this point, you should start seeing cash on hand start to increase going forward.
Stephen D. Griffin: We haven't given specifics on a cash balance forecast. I think what we have given some guidance around is that we expect to see improvements in operating cash flow. I think we demonstrated some pretty good controls here as we've come through the disposition of 2 businesses. Jim, the only thing that would cause us to have a lower cash balance would be associated with CapEx investments. So obviously, we've been making some strategic investments into our Massachusetts facility here, and that would likely cause us to have a little bit of a lower cash balance into the future, but we expect to hopefully offset some of that with some of the growth in operating cash flow.
James Philip Sidoti: So with regard to capacity, do you think by the end of the year, you'll have sufficient capacity to meet demand for Integrity, Cingal, Hyalofast over the next several years?
Stephen D. Griffin: I think it's going to be a continued investment that we're making into our facility. So it's something we'll be doing over a period of time. I think the level of CapEx that we forecasted for this year, I think, is appropriate for us to be able to meet the ramp for next year, but we'll be continuing to upgrade equipment, especially in preparation for Cingal as volumes for both Monovisc and Cingal continue to grow and our cross-link products are a little bit more complicated to make and require more investment.
Operator: The next question comes from Michael Petusky with Barrington Research.
Michael John Petusky: So I guess, Cheryl, is there any more detail you can give around sort of the reduced sample size, higher dropout. I think there was maybe 200 patients initially targeted in the Hyalofast trial. I'm just curious, I mean, how much -- how many patients did you actually have full data on.
Cheryl Renee Blanchard: Yes. Thanks for the question, Mike. I will tell you that -- yes, so first of all, you're right. The study design had us enroll 200 patients. And the dropout occurred differentially in the microfracture arm because of the fact that microfracture really, the clinical practice changed, patients dropped out both before surgery, like before they even got the microfracture surgery. And during the course of the trial, like not coming back for appointments sort of as they progress through the trial. So it happened in both cases. In terms of the number of patients we have full data on, we have not reported out the details of our full data set yet because our analysis continues.
And I mentioned in my prepared comments that as soon as we get the full data analysis completed, that we will provide additional disclosure on that. So more to come on kind of the full data set. We also, though, did have missing data, as I mentioned, because this trial was run smack through the middle of COVID, recognized that a lot of clinical trials were impacted by patients not being able to return for follow-up visits. And they actually put out guidance that is helpful to us on how to treat that.
So while the study was primarily impacted really in our miss on statistical significance, I would highlight, though, that Hyalofast consistently demonstrated improvements over microfracture in both pain and function. It's really a miss on statistical significance. And those are the topics that we'll continue to have ongoing dialogue with FDA, but FDA has communicated to us to submit the full data package including all of the analyses, including the additional endpoints that were used for prior approvals and including all of our fulsome data set that we have from our number of independent studies performed outside the U.S. from the over 15 years of clinical experience internationally.
Michael John Petusky: Cheryl, I'm just curious because I don't know the answer to this. Is it typical for the FDA to sort of say in a case where you've sort of missed the primary endpoints, but we really encourage you to submit the full data package. I mean is that just sort of template language that, hey, submit what you have and we'll take a look? Or is there actually something to be encouraged about in terms of what they've said to you regarding that matter.
Cheryl Renee Blanchard: Yes. I will just communicate to you that they have communicated to us to submit the full data package. They obviously understand that we have missing data. And again, we're not completely done with our data analysis, which is why we haven't put the actual data out until that's completed and QC-ed, which we will do at the point in time that, that's done. But FDA did communicate to us that they wanted us to submit the full data package, including all of those elements that I described. And to keep in mind, this is a breakthrough device.
Michael John Petusky: Right. Okay. So moving on, Steve, I was just curious, in terms of the -- I think it was something like an incremental $14 million investment that you guys are making in the regenerative portfolio. Is that still holding? Or have you guys maybe shifted that at all given the Hyalofast news or just generally your desire to sort of maybe manage this business a little tighter. I'm just curious.
Stephen D. Griffin: It's a good question. The short answer is it is still on track as a $14 million investment into the business. The news around Hyalofast is, it just got unblinded, so this is very new for us. But I would say that in terms of better cost discipline and thinking about where we can make strategic investments that are going to pay off for our long-term business. We are constantly doing that, and that is something that we will consistently do I'm not going to share anything necessarily here, but I would say that we consistently look at where we're making investments to try to make sure that we're delivering the most optimal outcome for shareholders.
Michael John Petusky: Let me just follow up. Is it possible that $14 million and even like going forward, internal investment you plan to make in '26, is it possible maybe that number is curbed at some point in the second half of this year?
Stephen D. Griffin: Yes, it's possible. I mean maybe we'll share more in the future when we get to that point, but it's possible.
Michael John Petusky: Okay. All right. Great. And then just last question, I guess, Cheryl, probably bouncing back to you. In terms of integrity, occasionally, you guys have -- and I may have missed this. Forgive me if I missed this, but you occasionally have shared either sort of search and adoption commentary or even surgery numbers. I'm just curious if you have anything to share on that and forgive me if you mentioned that and I just missed it.
Cheryl Renee Blanchard: Yes. I didn't give an update on surgery numbers because we were really more focused now on what we're driving from a top line perspective and the fact that we're on track to really double that business this year. I'm sure as we go forward, we'll continue to provide those updates. But I think you can just kind of extrapolate that based on the fact that we're really overachieving, we're ahead of expectations, and we're projecting to do a doubling of that business this year.
Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.
Should you buy stock in Anika Therapeutics right now?
Before you buy stock in Anika Therapeutics, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Anika Therapeutics wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $511,411!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,238,736!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 199% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of April 21, 2026.
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Anika (ANIK) Q2 2025 Earnings Call Transcript was originally published by The Motley Fool
View Comments
- Anika (ANIK) Q4 2025 Earnings Call Transcript
Apr 21, 2026
Image source: The Motley Fool.
Date
Thursday, Feb. 26, 2026 at 8:30 a.m. ET
Call participants
President and Chief Executive Officer — Stephen Griffin Senior Vice President, Chief Accounting Officer and Treasurer — Ian McLeod
Need a quote from a Motley Fool analyst? Email pr@fool.com
Full Conference Call Transcript
Steve Griffin, President and Chief Executive Officer; and Ian McLeod, Senior Vice President, Chief Accounting Officer and Treasurer. They will present our fourth quarter and year-end 2025 financial results and business highlights. Please take a moment and open the slide presentation and refer to Slide #2. Before we begin, please understand that certain statements made during the call today constitute forward-looking statements as defined in the Securities Exchange Act of 1934. These statements are based on our current beliefs and expectations and are subject to certain risks and uncertainties. The company's actual results could differ materially from any anticipated future results, performance or achievements.
We make no obligation to update these statements should future financial data or events occur that differ from the forward-looking statements presented today. Please also see our most recent SEC filings for more information about risk factors that could affect our performance. In addition, during the call, we may refer to several adjusted or non-GAAP financial measures, which may include adjusted gross margin, adjusted EBITDA, adjusted net income from continuing operations and adjusted earnings per share from continuing operations which are used in addition to results presented in accordance with GAAP financial measures. We believe the non-GAAP measures provide an additional way of viewing aspects of our operations and performance.
But when considered with GAAP financial measures and the reconciliation of GAAP measures, they provide an even more complete understanding of our business. Reconciliation of these adjusted non-GAAP financial results to the most comparable GAAP measurements are available at the end of the presentation slide deck and our fourth quarter and full year 2025 press release. And now I'd like to turn the call over to our President and CEO, Steve Griffin. Steve?
Stephen Griffin: Good morning, everyone, and thank you for joining us. Before turning to the results, I want to express how grateful I am for the opportunity to lead Anika and for the continued trust and support of our Board as I step into the CEO role. I also want to recognize Cheryl Blanchard for her leadership in repositioning the company and for the partnership she has provided through this transition. Under her tenure, Anika took important steps to sharpen its focus, including portfolio actions and progress across Integrity, Hyalofast and Cingal, which put us in a stronger position to execute going forward.
Story Continues
I'm especially appreciative that in her new role as Executive Chair, we will continue to benefit from Cheryl's experience, perspective and relationships as we execute on our priorities particularly as we work to advance key regulatory, commercial and pipeline initiatives. As we begin today's call, I want to clearly outline the 3 strategic priorities that guide how we run the business, allocate capital and measure success. These priorities build directly on the foundation established under Cheryl's leadership and sharpen our execution as we move forward. First, revenue growth driven by the commercial channel. Our top priority is accelerating sustainable revenue growth with the commercial channel as the primary driver.
This includes continued expansion of our international OA pain portfolio and scaling Integrity as a differentiated regenerative platform. These businesses generate attractive, stable margins, give us greater control over pricing and reduce our reliance on our OEM channel partners while meaningfully improving revenue diversification over time. The second priority is advancing our HA-based innovation pipeline, centered on Integrity, Hyalofast, Cingal and longer-term development opportunities. These programs address large underserved markets and will further Anika's leadership position in hyaluronic acid. We've made meaningful progress in recent years and remain focused on advancing these programs toward regulatory approvals in the markets where they are not yet approved. Third, improving operational execution.
The third priority in an increased area of focus is strengthening operational execution. This includes improving manufacturing productivity, yield and capacity, which directly supports growth in both our commercial business and our OEM partnership with J&J MedTech, which continues to drive double-digit growth in Monovisc unit shipments. At the same time, we are establishing a more streamlined organizational design to improve profitability and cash generation. This is not a change in direction, but a sharpening of execution to ensure strategy translates into improved financial performance. With that framework in mind, I want to walk through our 2025 performance through the lens of these 3 priorities. First, revenue growth.
In 2025, revenue growth was led by strong performance in our commercial channel, driven by international OA pain management and continued adoption of Integrity. With these two contributors together delivering commercial channel revenue growth of 22% in the fourth quarter and 15% for the full year, in line with our guidance. Internationally, our OA pain management portfolio, which includes Monovisc, Orthovisc and Cingal, delivered another year of strong growth and share gains. International OA pain revenue increased 28% in the fourth quarter and 12% for the full year, reflecting outstanding execution by our global teams and the durability of these products across multiple regions.
Hyalofast also continued to gain traction outside the U.S., benefiting from its ease of use and differentiation. Importantly, our international business has driven strong double-digit growth with a lean cost structure. Integrity also had an exceptional year. In 2025, Integrity procedures and revenue more than doubled to approximately $6 million, marking its seventh consecutive quarter of sequential growth. Since launch, more than 2,500 surgeries have been performed with over 300 surgeons using the product and a majority scheduling additional cases. During the fourth quarter alone, approximately 600 surgeries were performed, up 20% sequentially, supported by continued surgeon adoption, new size introductions and expanding tendon applications.
In 2025, our commercial growth was offset by our OEM channel as a result of a more challenging U.S. OA pain management pricing environment. OEM revenue declined 12% in the fourth quarter and 17% for the full year, consistent with expectations. Importantly, J&J MedTech, which sells Orthovisc and Monovisc maintained their market-leading position. As we focus on growing total company revenue, driven by outperformance in our commercial channel, we continue to work with our OEM partners to drive stability and predictability. Second, advancing the innovation pipeline. Through 2025, we continue to advance our HA-based innovation pipeline with meaningful progress across Hyalofast, Cingal and building on the Integrity platform.
For HYALOFAST, we submitted the third and final module of the PMA to the FDA in the fourth quarter of 2025, including results from the FastTRACK Phase III study. As we previously reported, while the study did not achieve its prespecified co-primary endpoints, it did demonstrate statistically significant improvements across key measures of pain and function used to approve other cartilage repair products. As expected, we received a deficiency letter from the FDA in the first quarter of 2026 related to CMC and clinical data. While we can never make an assurance of FDA approval, we are actively engaging with the FDA, and we remain confident in the evidence supporting Hyalofast's clinical value.
Cingal also made important progress during the year. Cingal has now surpassed 1 million injections across more than 40 international markets and continues to demonstrate strong clinician adoption. In the U.S. The FDA identified two remaining filing requirements for Cingal. The first was a set of required toxicity studies, which we initiated and successfully completed in 2025. The second requirement, the bioequivalence study was initiated in December 2025 and is now underway. Together, these steps keep us on track toward NDA submission and position Cingal as a differentiated solution and a large next-generation OA pain management market. Finally, Integrity continues to mature, not only commercially but clinically.
We are now past the halfway point in our post-market clinical study and remain on track to complete enrollment this year. As a reminder, the post-market clinical study data will be used to support NDR filing, which will enable continued Integrity growth outside the U.S. and accelerate commercial growth in the U.S. In addition, a peer-reviewed MRI-based manuscript, led by Dr. Chris Baker, has been accepted for publication, demonstrating early clinical outcomes that align with our preclinical data and support Integrity's differentiated profile. Our third strategic priority, operational execution was a significant contributor to improved financial performance in the second half of 2025.
Through improved manufacturing productivity, higher yields and increased throughput, we delivered expanded gross margins, positive operating income for the fourth quarter and meaningful free cash flow. These improvements not only strengthen profitability, but also enhanced our ability to support increased volumes for both our commercial products and our OEM partner. Fourth quarter revenue performance, which included the recovery of late shipments, demonstrated how increased volume and disciplined execution can drive improved throughput and productivity. While we do not expect these margins at this level every quarter, the quarter provides a clear illustration of the operating leverage that we can achieve as volumes grow, and we continue to deploy our teams efficiently.
Operational execution goes beyond manufacturing and includes our ability to deliver growth with a lean, efficient back office organization that supports improved profitability. In line with this, we recently implemented a new organizational structure designed to streamline leadership layers, reduce expenses and better align resources with our highest priority growth initiatives. These changes include a combination of senior leadership role eliminations and releveling to better match the current scale of our operations. As we implement these changes, we will work through role transitions over the coming months, supported by the strong team we have here at place at Anika.
As part of this evolution, we mutually agreed with David Colleran that he would transition from his role as Executive Vice President, General Counsel and Corporate Secretary, effective May 2026. I want to thank David for his leadership and many contributions over the past 6 years. All of the announced changes impact our G&A functions. Together with the recent leadership transitions, these actions are expected to drive approximately $2.5 million in annualized head count savings in addition to more than $3 million in stock-based compensation savings. As responsibilities are transitioned internally and the work is realigned, we expect to see improved profitability in the coming quarters.
As part of this new organizational structure and as I step into the CEO role, Ian McLeod, our current Chief Accounting Officer since 2021 has assumed broader responsibilities across our finance and legal organizations. With these changes, we will not backfill the CFO, COO or General Counsel roles. Responsibilities are being absorbed by experienced senior leaders, creating a more efficient structure that supports sustained profitability and improved cash generation. With these priorities, accelerating growth, advancing innovation and strengthening operational execution firmly in place, we enter 2026 with clarity, momentum and confidence in our ability to deliver improved performance and long-term value. With that, I'll turn it over to Ian to walk through the financial results.
Ian McLeod: Thanks, Steve. Before I walk through the financials, I want to take a moment to briefly introduce myself. I've had the privilege of serving as Anika's Chief Accounting Officer since 2021 and I'm excited to step into this expanded role supporting both our finance and legal organizations. I look forward to continuing to work closely with Steve and the broader leadership team as we execute our strategy. With that, let me turn to the results. Please refer to Slide 5 of the presentation as I provide updates on the fourth quarter of 2025. In the fourth quarter, Anika generated $30.6 million in total revenue which was flat year-over-year, consistent with our revised full year expectations.
Commercial channel revenue grew 22%, reaching $13.3 million driven by strong international execution and continued momentum in Integrity, which is exceeding our commercial expectations. Our international OA pain management business remains a key contributor delivered 28% growth in the quarter, led by sustained market share gains for Monovisc and Cingal across several regions. In the OEM channel, revenue was $17.3 million for the fourth quarter down 12% year-over-year, in line with our revised full year expectations. Pricing for Monovisc and Orthovisc sold through J&J MedTech was lower year-over-year as previously communicated. Despite these pricing headwinds, both products continue to hold strong market leadership positions and contribute meaningfully to Anika's overall profitability.
Non-orthopedic revenue also declined quarter, reflecting lower demand for legacy products. In the fourth quarter, gross GAAP gross margin increased to 63% from 56% in the prior year reflecting higher revenue from international OA pain sales and higher volumes of U.S. OA pain, both of which improved throughput and productivity within our manufacturing operations. The margin improvement underscores the structural benefits of our revolving revenue mix and positions us well for improvements in profitability as we move into 2026. We're pleased with the improvements in the second half gross margin and will continue to drive improvements in manufacturing operations into 2026 to increase throughput.
In the fourth quarter, operating expenses were $18.5 million, up from $17.8 million in the same year last year. Selling, general and administrative expenses increased to $12.1 million compared to $11.3 million a year ago, driven by higher sales and marketing expenses, primarily with the growth of Integrity. Research and development expense was $6.5 million, flat versus prior year as we continue to invest in key regulatory and clinical programs, including ongoing work on Hyalofast and Cingal. We continue to monitor our total operating expenses closely to focus on disciplined spending, while advancing the program's most critical to long-term growth.
Total adjusted EBITDA from continuing operations was $4.5 million in the quarter, higher than our revised guidance, reflecting strong commercial channel performance and expanding gross margin. Discontinued operations include the Arthrosurface and Parcus results, which were divested in late 2024 and early 2025, with all material transition work completed, we do not anticipate discontinued operations activity going forward. Now turn to Slide 6, where I will discuss full year results. For the full year 2025, Anika generated total revenue of $112.8 million, a decline of 6% compared to the prior year and consistent with our revised guidance for the year.
Commercial channel revenue was $48.4 million, up 15% compared to the prior year and continues to be a key growth driver in increasing adoption across all our international HA-based OA pain management portfolio and continued Integrity growth. International OA pain management remained a bright spot, reflecting the strong execution of our international commercial team and distributor network and Integrity continues to outperform, driven by increased U.S. adoption and more than doubling revenue to $6 million in 2025. Revenue in our OEM channel totaled $64.4 million, down 17% year-over-year, in line with adjusted expectations. The decline was primarily driven by pricing and market dynamics of Monovisc and Orthovisc in the U.S. market.
GAAP gross margin for the full year was 57% compared to 63% in 2024, reflecting product mix, higher manufacturing costs driven by the manufacturing disruptions from earlier in the year and legacy program costs. Looking at operating expenses for the full year. We continue to strengthen our discipline across the organization while ensuring we invested in the programs most critical to our long-term growth. Total operating expenses for 2025 were $74.9 million, down from $81.1 million in the prior year, reflecting the meaningful cost actions we executed throughout the year and our continued focus on efficiency.
R&D expenses were $25.8 million, essentially flat with the prior year as we continue to invest in the regulatory and clinical work activity supporting Hyalofast and Cingal as well as the ongoing expansion of the Integrity platform. In total, we invested approximately [ $5.2 million ] in 2025 to support Hyalofast and Cingal-related regulatory and clinical activities, representing focused investments that will generate meaningful future benefit across both our OA pain management and regenerative solutions portfolios. SG&A expenses were $49.1 million, a reduction from $55.6 million in 2024 driven by lower G&A head count and expense discipline.
For 2025, adjusted EBITDA was $5.3 million or approximately 5% of revenue which represents an outperformance versus our revised full year outlook of minus 3% to plus 3%. Our results reflect the positive impact of revenue, slightly ahead of expectations improved manufacturing yields and disciplined cost management. For the full year 2025, we generated $11.2 million in operating cash flow, an improvement over the $5.4 million we generated in 2024 driven by efficient working capital management and lower expenses. Capital expenditures for the year were $6.8 million, reflecting our continued investment in our manufacturing facility to support higher expected output of OA management and regenerative solutions products.
We ended the year with $57.5 million in cash with no debt providing us with a strong liquidity decision and the flexibility to continue investing in our growth priorities while executing our share repurchase program. As previously communicated, we initiated a $15 million 10b5-1 stock repurchase plan in November 2025. In the fourth quarter, we purchased 5.5 million common stock. To date, the company has purchased $10.7 million in stock, and the program is expected to be complete in the second quarter of 2026. Now please turn to Slide 7, as I turn the call back over to Steve to review our financial outlook for 2026.
Stephen Griffin: Thanks, Ian. For 2026, Anika is maintaining its previously communicated revenue guidance ranges by channel and introducing a total company revenue outlook. At the total company level, we expect full year revenue between $114 million and $122.5 million, representing a 1% to 9% year-over-year growth. This outlook reflects continued momentum in our commercial channel and the market dynamics in our OEM business. Within the commercial channel, we are maintaining our outlook of 10% to 20% growth year-over-year or $53 million to $58 million. Growth is expected to be driven by ongoing expansion of Integrity in the U.S. market, sustained Hyalofast performance outside the U.S. and increasing adoption of our international OA pain management portfolio.
For the OEM channel, we are maintaining our revenue expectation of flat to down 5% year-over-year or $61 million to $64.5 million. This reflects anticipated Monovisc unit volume growth partially offset by lower pricing, while Orthovisc is remaining modestly flat for the year. Turning to profitability. As we expect adjusted EBITDA of 5% to 10% of revenue, at the midpoint of this range, this improvement reflects higher expected revenue led by the commercial channel growth, the benefit of our recently initiated G&A cost reduction actions, including leadership changes, as well as productivity and manufacturing gains supporting increased OA pain production, partially offset by modestly lower U.S. OEM pricing dynamics.
To close, we entered 2026 with clarity, momentum and a strong foundation for sustained performance. Our commercial channel is delivering. Our innovation pipeline is advancing with purpose, and our operational execution is driving meaningful improvements in profitability and cash generation. We have the right strategy, the right organization and the right team in place to execute. I'm confident in our ability to build on this progress and create long-term value for our shareholders. Thank you for your continued support, and we look forward to updating you on our progress throughout the year. With that, we'll open the line for questions.
Operator:[Operator Instructions] Your first question comes from Mike Petusky from Barrington Research.
Michael Petusky: Steve, so real quick on the guidance slide, you guys have U.S. Hyalofast in 2027. And I'm just curious, is a meaningful contribution from Hyalofast in the U.S. aiming the '27, 10% to 20% guide?
Stephen Griffin: I appreciate the question. We had previously shared that we had included about $3 million of anticipated revenue for Hyalofast in '27. We haven't changed that outlook, so it remains the same. Obviously, it's contingent upon approval in the U.S. So that's kind of the big open item that we'll work our way through, but that's the dollar amount associated with it.
Michael Petusky: Okay. All right. Okay then. Then sort of moving on. In terms of the gross margin, obviously, was really strong this quarter. I'm just wondering as we sort of reset for '26, I mean, should we be thinking more like high 50s for sort of a normalized gross margin? I'm assuming that what you just delivered is not likely, at least sustainable in the near term, although you may get there over time.
Stephen Griffin: Yes, Mike, I think you framed it very well. I think that's exactly what we're planning for. As you noted, I think it illustrates the capability that we have to deliver within our existing business and manufacturing capabilities. To your point, it's not always going to be at that level, but it gives our team something that we're shooting for over the longer term. The high 50s that you just noted though, is appropriate.
Michael Petusky: Okay. Two more real quick. Obviously, a nice positive free cash for the year and evidently for the quarter. In terms of what you see going forward? And I know it's not an official part of your guidance, but I'm just curious, do you expect free cash to grow off of '25 levels? And if so, I mean, will it be slight or will be somewhat material?
Stephen Griffin: Yes, sure. I would say '26 cash -- I expect it to be probably somewhat in line with '25 just given some of the puts and takes and dynamics that we just referred to. Obviously, we've got to work through some of the restructuring-related elements of the things that I just noted earlier about some of the operating expenses for the business. At this point, though I'd say modestly in line with the '25 results.
Michael Petusky: Okay. And then just one more, and I'll let other people have a shot here. Obviously, international OA pain outperformed, had a really good year. I'm just curious, in terms of the dynamics internationally, I mean, are there countries where you're there, you're approved, but you're really sort of under optimizing? And then are there also new countries that you don't really have a foothold in, but you could actually commercially launch products?
Stephen Griffin: Sure. Our international OA pain franchise is led by James Chase, who's done an excellent job, as you can tell, in creating a really sustained momentum. And I think it is a multitude of contributors. So first and foremost is market share gains in the places where we play today as well as growth in new markets. There's no one single market that stands out to kind of drive this top line growth. And I'd say he's got a long-term pipeline for each product in each country targeted with each distributor that we work with to find the right opportunities, and it goes out many years.
So we're very pleased with the results that he's been able to generate consistently over the last 5 to 6 years, and we look forward to continuing to do that in this year's plan as well.
Operator: Your next question comes from Anderson Schock from B.Riley Securities.
Anderson Schock: Congrats on the strong quarter. So first, on the OEM channel, so you posted some strong sequential improvement, about 9% from the third quarter despite the continued pricing headwinds. Could you unpack what drove that improvement? And as you look at early 2026 order patterns in your conversations with J&J, what gives you the confidence that OEM lands flat to modestly lower for the full year?
Stephen Griffin: Sure. Anderson, thanks for the questions. It's nice Like to talk to you again. We did see a bit of an increase, and I think it's tied primarily to volume and user demand. I noted earlier that we still see very strong end-user demand from a unit perspective on Monovisc, which is the largest contributing factor to the sequential improvement that you're noting. When we look to 2026, we've had many conversations with J&J as they look at the future of this market. We expect to see continued market share gains and volume growth, offset modestly by price. A little too early probably to tell exactly how it will play out.
I mean, this is one of those businesses where it could be a little lumpy, and there is some fourth quarter dynamics in the United States to some extent. But we'll see it play out over the course of this year, but suffice to say that we believe that this is the appropriate guide for the year.
Anderson Schock: Okay. Got it. And then with both the toxicity studies for Cingal now completed, the bioequivalent study initiated in December. Could you provide a more specific time line for the study's completion and expected NDA filing?
Stephen Griffin: Sure. I appreciate the question. So the timing of the NDA filing is going to be paced by the enrollment of the bioequivalent study, which is the final clinical requirement for the submission, and we noted we began enrollment for that in December. The enrollment is ongoing, and the study remains on track. And in parallel to that, our teams are actively preparing other components associated with the NDA, so that we're positioned to move forward efficiently. Once the study is complete, I haven't been able to necessarily give you a timetable, but as we progress further down enrollment of bioequivalence study, we expect to provide that time frame.
Anderson Schock: Okay. Got it. And then Integrity had $6 million of revenue for '25, more than doubling as guided. And as we think about '26 commercial channel guidance, can you help us frame how much of that growth is from Integrity versus international OA pain? And are there any revenue or procedure volume targets for Integrity in '26?
Stephen Griffin: Internally, absolutely. In terms of what we will share externally, what I would say is we do expect another strong year in the commercial channel on the international OA pain side kind of in that double-digit range that we've seen. And I think when we look at Integrity, it had a very good year, obviously, from a variance percentage basis, it was up almost 100%. I don't think it's going to be up near that same range, but we're still talking about strong double-digit growth, and we're very pleased with the performance in the United States on that growth on Integrity. I'll give further updates as we go throughout the year in terms of the performance.
Anderson Schock: Okay. Got it. And then finally, so you launched the larger shapes and sizes for Integrity. I guess, how is the early uptake trending? And is this opening up meaningful new call points beyond your existing shoulder focused surgeon base?
Stephen Griffin: We did. We launched two new shapes and sizes last year, and it's gone well. We've seen strong uptick on those products. I'd say this market is still majority rotator cuff. So when we look at the overall market procedures, the rotator cuff represents still the largest portion of it, the largest portion of our overall revenue. But I think the new shapes and sizes help increase surgeon adoption and get further expansion into some of those smaller adjacent markets. We're pleased with how well it's gone so far and look forward to continue to drive adoption into 2026.
Operator: Your next question comes from Mike Petusky from Barrington Research.
Michael Petusky: All right. Excellent. I have a couple more, I appreciate the follow-up. Steve, in terms of the bioequivalence study, what is the targeted enrollment?
Stephen Griffin: It's just under 60 patients.
Michael Petusky: I mean is that -- I have no idea, is it fairly easy to enroll patients for this kind of study? Or is it a slog?
Stephen Griffin: I wouldn't call it a slog. I mean it does have specific enrollment criteria designed to meet the FDA requirements. We're executing well, but enrollment can take slightly longer than maybe a typical bioequivalent study. So far, it's on track to what we would have expected.
Michael Petusky: Okay. All right. And then would you be willing to share sort of the revenue run rate that Integrity ended the year with in Q4? I mean is it -- I mean, is it run-rating that $7 million, $8 million. Any help there?
Stephen Griffin: We haven't necessarily broken it out by quarter, but we did $6 million over the course of the full year, and I think we noted that it grew 20% sequentially from 3Q to 4Q. So it's at a pretty decent run rate as we exit the year. I will also note, though, that, that tends to be the case. There's some fourth quarter seasonality just in the United States associated with procedural volumes. So as we look to the start this year, we do expect that seasonality effect to kind of continue, but we're very pleased with its growth.
Michael Petusky: Okay. Great. And then just one last question. I guess around capital allocation. Obviously, you guys said what you said on finishing up the share repurchase commitment. But as you sort of look at the fact that you guys have been -- if presumably generate some free cash this year, you've got $55-plus million net cash on the balance sheet. I mean outside of the share repurchase, I mean, what are the priorities? I mean, is it potentially some small sort of tuck-in M&A? Or is that just not a thing you can focus on giving given where you are right now?
Stephen Griffin: I appreciate the question, Mike. I would say our capital allocation priorities start first and foremost with being able to deliver for our patients and customers. So we obviously are spending CapEx to improve our manufacturing operations here in Bedford. We will continue to do that. So we'll make investments into our manufacturing capability, and that is the first and foremost. The second thing that we talk about is capital allocation is the investments we're making into our U.S. sales channel, those are still investments that we are making, and we very consciously evaluate those.
And while we operate with a level of expense discipline, it is still an investment nonetheless, I think longer term, there are certainly opportunities for us to evaluate what else we may do. But at this point, it's not something that we're looking to share. We've got a lot on our plate in the very near term, some of the restructuring activities that we mentioned earlier, plus the activities for Integrity, Hyalofast and Cingal, knows a lot on our plate, a lot of shareholder value that can be generated by executing well.
And I think the 3 strategic priorities we laid out at the very beginning: first, commercial revenue growth; second, advancing our R&D pipeline; and third, executing with operational discipline. Those are the priorities for us in the near future.
Operator: And there are no further questions at this time. I will turn the call back over to Steve Griffin for closing remarks.
Stephen Griffin: Great. Thank you all for joining us today. We hope you have a great week.
Operator: Ladies and gentlemen, this concludes today's conference call. You may now disconnect.
Should you buy stock in Anika Therapeutics right now?
Before you buy stock in Anika Therapeutics, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Anika Therapeutics wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $511,411!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,238,736!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 199% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of April 21, 2026.
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Anika (ANIK) Q4 2025 Earnings Call Transcript was originally published by The Motley Fool
View Comments
- Anika to Issue First Quarter 2026 Financial Results on Wednesday, April 29, 2026
Apr 15, 2026 · globenewswire.com
BEDFORD, Mass., April 15, 2026 (GLOBE NEWSWIRE) -- Anika Therapeutics, Inc. (NASDAQ: ANIK), a global joint preservation company in early intervention orthopedics, announced today that it will issue its first quarter 2026 financial results before the opening of the market on Wednesday, April 29, 2026, followed by a conference call at 8:30 a.m. ET to discuss its results and business highlights.
- ANIKA TO ISSUE FIRST QUARTER 2026 FINANCIAL RESULTS ON WEDNESDAY, APRIL 29, 2026
Apr 15, 2026
BEDFORD, MASS., APRIL 15, 2026 (GLOBE NEWSWIRE) -- ANIKA THERAPEUTICS, INC. (NASDAQ: ANIK), A GLOBAL JOINT PRESERVATION COMPANY IN EARLY INTERVENTION ORTHOPEDICS, ANNOUNCED TODAY THAT IT WILL ISSUE ITS FIRST QUARTER 2026 FINANCIAL RESULTS BEFORE THE OPENING OF THE MARKET ON WEDNESDAY, APRIL 29, 2026, FOLLOWED BY A CONFERENCE CALL AT 8:30 A.M. ET TO DISCUSS ITS RESULTS AND BUSINESS HIGHLIGHTS.
