Anika Therapeutics, Inc. (NASDAQ: ANIK) reported fourth‑quarter and full‑year 2025 financial results that exceeded analyst expectations. Q4 revenue reached $30.6 million, flat versus the same period in 2024, while full‑year revenue totaled $112.8 million, a 6% decline from $119.8 million in 2024. Adjusted earnings per share were $0.31, a $0.29 beat over the consensus estimate of $0.02 and a substantial improvement over the $0.14–$0.22 loss forecasted by analysts.
The company’s commercial channel drove the majority of the earnings beat. Commercial revenue rose 22% year‑over‑year to $13.3 million, powered by a 25% increase in Integrity® implant procedures and a 28% rise in international osteoarthritis pain‑management sales. In contrast, the OEM channel declined 12% to $17.3 million, reflecting lower U.S. pricing for Monovisc® and Orthovisc® under the Johnson & Johnson MedTech partnership. Management reiterated a 2026 revenue guidance of $114 million to $122.5 million, maintaining a commercial‑channel growth outlook of 10% to 20% while projecting the OEM segment to remain flat to modestly lower year‑over‑year.
Gross margin expanded to 63% in Q4 from 56% in Q4 2024, driven by a favorable product mix that shifted toward higher‑margin commercial sales and by operating leverage. Operating cash flow reached $11.2 million and free cash flow was $4.4 million, underscoring the company’s ability to generate cash while investing in growth. "We closed 2025 with a strong fourth quarter, with top‑line growth led by our Commercial Channel and company‑wide results that included expanded gross margin, and positive operating income and free cash flow," said President and CEO Steve Griffin.
The earnings beat was largely attributable to disciplined cost management and a robust commercial pipeline. The Integrity® implant system more than doubled its revenue to approximately $6 million for the full year, marking its seventh consecutive quarter of sequential growth. International pain‑management sales also accelerated, offsetting the pricing headwinds in the OEM segment. Analysts noted that the company’s margin expansion and cash‑flow generation signal strong execution, while the flat to modestly lower OEM outlook reflects ongoing pricing pressure from the J&J partnership.
Market reaction was positive, with the stock rising 6.95% in pre‑market trading. Investors responded to the significant EPS and revenue beats, the continued commercial momentum, and the company’s confidence in maintaining profitability despite OEM challenges.
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