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    ANIK
    Earnings call· Jun 2026(Q2 FY26)

    Anika Therapeutics Q2 FY26 earnings call ANIK

    Jul 29, 2026 Source

    Executive summary

    Anika Therapeutics Q2 FY26 — Strong Commercial Growth and Margin Expansion

    Anika Therapeutics delivered a strong second quarter, marked by significant commercial channel revenue growth and substantial gross margin expansion, driven by operational efficiencies and strategic focus on its core HA portfolio. The company raised its full-year outlook across revenue and adjusted EBITDA, reflecting improved execution and profitability, despite adjusting its 2027 revenue forecast to exclude potential Hyalafast US sales due to ongoing regulatory review. Management emphasized continued investment in manufacturing capabilities and pipeline advancement.

    Highlights

    5

    • Commercial channel revenue increased 17% to a record level.

    • Gross margin improved to 65% in the second quarter, representing one of the highest levels in recent years.

    • Adjusted EBITDA for the quarter was $7.1 million, representing an adjusted EBITDA margin of 22% and the strongest quarterly profitability since 2020.

    • International revenue reached a record $12.6 million, increasing 22% year-over-year.

    • Full-year OEM revenue guidance raised to 0% to 5% growth from previous expectation of down 5% to flat.

    Concerns

    3

    • 2027 revenue forecast now excludes $3 million of Hyalafast sales in the US due to regulatory approval uncertainty.

    • Profitability in the second half will be modestly lower than the first half due to OEM order timing.

    • Pricing for Monovisc/Orthovisc is expected to be a headwind, with modest declines anticipated.

    Guidance & targets

    6
    CategoryTargetConfidence
    OEM channel revenue growth
    0% to 5%
    medium materiality
    High
    Commercial channel revenue growth
    12% to 18%
    medium materiality
    High
    Total company revenue growth
    5% to 10%
    high materiality
    High
    Adjusted EBITDA margin
    13% to 17%
    high materiality
    High
    Total company revenue growth
    0% to 5%
    high materiality
    Medium
    Singal bioequivalent study completion
    in and around year end
    medium materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Commercial Channel
    Driven by international execution, momentum in Integrity, and broad growth across OA pain management and regenerative solutions portfolios. International business saw strong engagement and market focus.
    International revenue: $12.6 millionInternational revenue growth YoY: 22%Singal growth YoY: 32%Monavis growth YoY: 24%Integrity revenue: just under $2 million (for second consecutive quarter)Integrity YTD sales growth: 39%Integrity stocking orders outside U.S. growth Q2: 50%Hyalafast international regenerative solutions revenue growth: double-digit
    		$13.9 million17%——
    OEM Channel
    Growth primarily driven by favorable order timing across US OA pain management products sold through J&J DePuy Synthes. Underlying demand trends remain encouraging.
    Monovisc unit volumes: exceeded projectionsOrthovisc revenue: lower than expected
    		—14%——
    International OA Pain Management
    Strong momentum and portfolio alignment delivering results, underscoring durability and growing scale.
    Singal growth YoY: 32%Monavis growth YoY: 24%Singal YTD growth: 23%Monavis YTD growth: 19%Incremental profitable revenue from Singal and Monavis: approximately $2 million (Q2)Incremental revenue from Singal and Monavis: more than $3 million (H1)
    		————
    Regenerative Solutions
    Integrity remains a growth driver with expanding international demand and adoption of larger sizes. Hyalafast performed well outside the U.S.
    Integrity YTD sales growth: 39%Integrity revenue: just under $2 million (for second consecutive quarter)Integrity stocking orders outside U.S. growth Q2: 50%Hyalafast international regenerative solutions revenue growth: double-digit
    		————

    Operational metrics

    17
    Total revenue growth
    16%YoY
    Q2 FY26

    ANACA generated $32.6 million in total revenue, an increase of 16% year-over-year.

    Total revenue growth
    14%YoY
    H1 FY26

    First half revenue increased 14% to $62 million driven by growth in our commercial and OEM channels.

    Total revenue
    $62 million
    H1 FY26

    First half revenue increased 14% to $62 million driven by growth in our commercial and OEM channels.

    Gross margin
    65%vs 50%-51% prior year
    Q2 FY26

    Gross margin expanded to 65% compared to 50% 51% in the prior year.

    Gross margin
    65%expanded more than 1400 basis points
    H1 FY26

    First half gross margin expanded more than 1400 basis points to 65%.

    Adjusted EBITDA
    $7.1 millionstrongest quarterly profitability since 2020
    Q2 FY26

    Adjusted EBITDA for the quarter was 7.1 million, representing an adjusted EBITDA margin of 22% and our strongest quarterly profitability performance since 2020.

    Adjusted EBITDA
    $11 millioncompared to a break even start last year
    H1 FY26

    That led to 11 million in adjusted EBITDA as compared to a break even start last year.

    Cash and cash equivalents
    $38.4 million
    Q2 FY26

    We ended the quarter with approximately $38.4 million in cash and cash equivalents in no debt.

    Adjusted operating expenses
    down 6%YoY
    Q2 FY26

    Excluding approximately $800,000 of one-time severance costs, adjusted operating expenses were approximately $17.5 million, down 6% year-over-year.

    Adjusted operating expenses
    $17.5 million
    Q2 FY26

    Excluding approximately $800,000 of one-time severance costs, adjusted operating expenses were approximately $17.5 million, down 6% year-over-year.

    G&A expenses decline
    30%YoY
    Q2 FY26

    G&A expenses excluding severance declined 30% in the quarter, reflecting increased organizational focus, disciplined spending, and the benefits of the actions we have taken to improve operating efficiencies across the company.

    R&D expense
    $7.3 millioncompared to $6.3 million in prior period
    Q2 FY26

    R and D expense was 7.3 million compared to 6.3 million in the prior period.

    Share repurchase program
    $15 millioncompleted
    H1 FY26

    As part of our disciplined approach to capital allocation, we completed our previously announced $15 million share repurchase program during the first half of the year.

    Shares outstanding
    13.3 millionlowest share count in more than 50 years
    Q2 FY26

    Combined with actions we have taken to reduce equity-based compensation, shares outstanding declined to approximately 13.3 million shares, representing the lowest share count in more than 50 years.

    Stock-based compensation expense decline
    28%YoY
    Q2 FY26

    Stock-based compensation expense declined 28% year-over-year in the second quarter, reducing dilution and allowing a greater portion of the value created by the business to accrue to shareholders.

    OEM revenue favorable order timing
    $1 million to $2 million
    Q2 FY26

    I would say we did note in our prepared remarks that there is a little bit of favorability, probably between $1 million and $2 million just due to order timing in the second quarter.

    Gross margin
    64% range
    H2 FY26

    implied in our guidance is that we will maintain sort of that 64% level.

    Deals & partnerships

    2
    J&J DePuy SynthesOEM partnership for US OA pain management products (Monovisc, Orthovisc)

    The current Depew Synthes team has driven improved demand and enhanced commercial execution. Their focus on physician outreach, customer support, and franchise development has contributed meaningfully to the momentum we are seeing today.

    multiple international distributorsInternational distribution for OA pain management and regenerative solutions

    During the quarter, we hosted our international distributor meeting, with more than 35 of our international distributors represented, providing an opportunity to align around growth priorities, share best practices, and strengthen commercial execution.

    Risks & headwinds

    3
    Regulatory approval timeline for Hyalafast in the US2027

    previously implied $3 million of high alifax sales in the US excluded from 2027 revenue forecast

    Mitigation: working through the agency's deficiency letter and expect to complete our response in the coming weeks; confidence in the long-term opportunity for HylaFAST remains unchanged

    OEM revenue variability and H2 profitabilityH2 FY26

    Profitability in the second half will be modestly lower than the first half due to OEM order time.

    Mitigation: underlying demand trends remain encouraging; raised our full year OEM revenue guidance

    Pricing pressure in US OA pain management (Monovisc/Orthovisc)coming months and quarters

    modest decline in price expected; pricing will continue to be a headwind

    Mitigation: volume will more than offset it for Monovisc; look to drive volume

    What to watch in Q3 FY26

    5

    Hyalafast US regulatory approval

    next quarter
    CurrentPMA review ongoing, deficiency letter response due in coming weeks
    TargetFDA approval or further clarity on timeline

    Why it matters

    The timing of📎 US approval impacts future revenue forecasts and market access for a key regenerative product.

    While the timing of📎 an approval remains outside of our control, our confidence in the long-term opportunity for HylaFAST remains unchanged.

    Q&A highlights

    7

    Why does the raised full-year OEM guidance imply a sequential step-down in H2, and is it due to order timing or pricing/volume?

    Management confirmed that H2 step-down is partly due to $1M-$2M favorable order timing in Q2 and a strong Q4 FY25 comparison. They are pleased with the overall OEM growth from previously flat/lower expectations, driven by US end-market performance. Pricing remains volatile but volume offsets it.

    “I would say we did note in our prepared remarks that there is a little bit of favorability, probably between $1 million and $2 million just due to order timing in the second quarter. That does drive some of the sequential step down.”

    asked by Anderson Schock · answered by Stephen Griffin

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Priorities and Operational Excellence

    Anika Therapeutics is executing against three strategic priorities: accelerating sustainable revenue growth, driving operational excellence, and advancing its HA-based innovation pipeline. The company reported significant progress in operational discipline, leading to a gross margin of 65% in Q2 FY26, one of the highest levels in recent years. This improvement is attributed to manufacturing productivity, increased throughput, favorable product mix, and lean transformation initiatives, with management believing they are in the "early innings" of further improvements.

    02

    Commercial Channel Momentum

    The commercial channel achieved 17% revenue growth, reaching a record $13.9 million, driven by strong international performance in OA pain management (Singal up 32%, Monavis up 24% YoY) and regenerative solutions. Integrity, a key regenerative product, saw year-to-date sales up approximately 39% and revenue just under $2 million for the second consecutive quarter, supported by expanding international demand and adoption of larger sizes.

    03

    OEM Channel Performance and Outlook

    The OEM channel grew 14% year-over-year, primarily due to favorable order timing for Monovisc, which exceeded projections. Despite anticipated quarterly variability, the strong first-half performance led to a raised full-year OEM revenue guidance of 0% to 5% growth. Management noted improved demand and commercial execution from the DePuy Synthes team.

    04

    Pipeline Advancement - Hyalafast

    The PMA review process for Hyalafast with the FDA is ongoing, with the company working to respond to a deficiency letter. While the timing of📎 approval is uncertain and co-primary endpoints are critical, management's confidence in the long-term opportunity remains unchanged. Hyalafast continues to perform well outside the US, contributing to double-digit international regenerative solutions revenue growth.

    05

    Pipeline Advancement - Singal

    Enrollment in the Singal bioequivalent study is progressing as planned, with completion expected around year-end. The primary focus is shifting to Chemistry, Manufacturing, and Controls (CMC) activities to support the NDA submission, requiring targeted investments to meet FDA drug manufacturing requirements for hyaluronic acid.

    06

    Capital Allocation and Financial Flexibility

    Anika ended the quarter with $38.4 million in cash and no debt. The company recently extended its credit facility, reducing the overall size to a $50 million revolving commitment with an additional $50 million accordion feature, providing ample liquidity. The previously announced $15 million share repurchase program was completed in the first half, contributing to a decline in shares outstanding to approximately 13.3 million, the lowest in over 50 years.

    AI-generated summary of the company’s earnings call. Not investment advice.