Trading Statement

AOTI, Inc.

27 July 2026

 

27 July 2026

AOTI, INC. (the "Company" or "Group" or "AOTI")

Half Year Trading Update and Notice of Results

Robust year-on-year revenue growth generated in first half

Post period publication of proposed LCD for topical oxygen therapy by CMS, a transformational milestone, that will dramatically expand the US addressable market and growth potential for TWO₂^® therapy

AOTI, INC. (AIM: AOTI), a medical technology group focused on delivering outcomes-based care at home, by more durable healing of wounds and the prevention of amputations, announces its trading update for the six months ended 30 June 2026 ("the Period" or "H1 26").

·      10% revenue growth to c.$35 million (H1 25: $31.8 million).

·      18% revenue growth on an underlying basis excluding Arizona Medicaid (H1 25: 17.0%). As previously announced the Company ceased treatment of new Medicaid patients in Arizona from 1 April 2026.

·      Net debt of c.$6.3 million (H1 25: $5.4 million, FY 25: $6.5 million) reflecting strong VA performance and improving working capital. Cash of c.$13.8 million at 30 June 2026 (FY 25: $13.4 million).

Veterans Administration (VA) (c.57% of revenues) delivered strong growth with a year-on-year revenue increase of c.15%. The disruption associated with the US Department of Government Efficiency (DOGE) initiatives in 2025 has now largely abated.

Medicaid (c.41% of revenues) delivered a year-on-year revenue growth of c.21% on an underlying basis, excluding Arizona Medicaid, and on a reported basis of c.2%.

Significant progress in obtaining Medicare coverage and reimbursement

Importantly, post period (and as announced last week), the Centers for Medicare & Medicaid Services (CMS) has issued a proposed Local Coverage Determination (LCD) affirming topical oxygen therapy coverage for Medicare enrollees nationwide for the treatment of diabetic foot ulcers. After a 45-day public comment period, CMS is expected to finalise the LCD within a year.

The Final LCD will dramatically expand the US addressable market; not only is it expected to increase momentum and unlock revenues from Medicare recipients, but it will also accelerate access to Medicaid and other US commercial and managed care market segments. Even prior to Medicare coverage AOTI has already generated meaningful revenues and growth from other wound care market segments. The Final LCD will unlock significant additional opportunity as part of our reimbursement strategy. The Company currently believes it is unlikely that revenue growth trajectory will change materially until the Final LCD is in place, accordingly until then, the Company expects its main sources of revenue will continue to be driven from its increasing penetration of the VA and Medicaid sectors.

AOTI is already the clear market leader in the topical oxygen segment with a 75% market share driven by the unique and differentiated value proposition of its intermittent topical oxygen (TWO₂^®) therapy, which has been demonstrated in multiple substantive peer-reviewed clinical studies to deliver superior durable healing outcomes when compared to continuous topical oxygen therapy and other advanced wound care treatments. AOTI's TWO₂^® therapy is the only intermittent topical oxygen wound therapy on the market.

The Company expects to announce its interim results for the six months ended 30 June 2026 on 30 September 2026.

Dr. Mike Griffiths, Chief Executive Officer & President of AOTI, said: "We achieved underlying high teens revenue growth, a rate notably ahead of our previously published guidance of mid-teens for the full year. We remain optimistic about the benefits these continued positive trends will have on H2 performance. This underlying trajectory benefitted from our significant commercial restructure, which is still only in the early stages of realisation and was generated despite continued headwinds from the One Big Beautiful Bill Act which has continued to affect our Medicaid expansion plans. Our actions to obtain formal Medicaid coverage policy in Arizona for our therapy and recover historical claims remain ongoing.

"The very recent publication of a positive CMS proposed LCD is undoubtedly a significant milestone for us, reflecting CMS' recognition of the proven role of topical oxygen therapy in effectively treating hard-to-heal diabetic foot ulcers. Once the LCD is finalised, the resulting mandated Medicare coverage and reimbursement will be transformative for AOTI, significantly expanding access to our therapy for this patient population, while also helping to accelerate TWO₂^® therapy coverage and adoption across Medicaid, commercial, and other market segments. We are already well-positioned to drive operational leverage and growth with a market leadership position and our existing team footprint that encompasses the vast majority of the US population."

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AOTI, INC. Dr. Mike Griffiths, Chief Executive Officer Jayesh Pankhania, Chief Financial Officer	[phone] [e-mail]
Peel Hunt LLP (Nominated Adviser and Joint Broker) Dr. Christopher Golden, James Steel	[phone]
Panmure Liberum Limited (Joint Broker) Emma Earl, Will Goode, Mark Rogers Rupert Dearden	[phone]
FTI Consulting (Financial PR & IR) Ben Atwell, Simon Conway, Natalie Garland-Collins	[phone] [e-mail]

ABOUT AOTI, INC.

AOTI, INC. was founded in 2006 and is based in Oceanside, California, US and Galway, Ireland, providing innovative solutions to resolve severe and chronic wounds worldwide. Its products reduce healthcare costs and improve the quality of life for patients with these debilitating conditions. The Company's patented non-invasive Topical Wound Oxygen (TWO₂^®) therapy has demonstrated in differentiating, robust, double-blinded randomized controlled trials (RCT) and real-world evidence (RWE) studies to more-durably reduce the recurrence of Diabetic Foot Ulcers (DFUs), resulting in an unprecedented 88 per cent reduction in hospitalizations and 71 per cent reduction in amputations over 12 months. TWO₂^® therapy can be administered by the patient at home, improving access to care and enhancing treatment compliance. TWO₂^® therapy has received regulatory clearance from the US (FDA), Europe (CE Mark), UK (MHRA), Health Canada, the Chinese National Medical Products Administration, Australia (TGA) and in Saudi Arabia. TWO₂^® therapy has also recently received positive coverage recommendations from the Federal Joint Committee (G-BA) in Germany and National Institute for Health and Care Excellence (NICE) in the United Kingdom. Also see www.aotinc.net

 

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