AOTI Inc (AIM:AOTI) said it continues to expect a near-term local coverage determination from the US Centers for Medicare & Medicaid Services, a reimbursement decision that could enable broader and more consistent payment for its products and which the company said has the potential to be 'transformational'.
The medical technology group said the anticipated CMS decision would represent a key milestone for the adoption of its wound care technology in the US market.
The update came as AOTI reported revenue growth of 14% to approximately $66.5 million for the year ended 31 December, compared with $58.4 million in 2024.
Adjusted EBITDA margin for the year is expected to be in line with forecasts.
Consensus expectations as at 14 January were for revenue of $66.1 million, an adjusted EBITDA margin of 10.8% and net debt of $11.2 million.
"The business delivered growth ahead of our peers and made meaningful operational progress for the year, and as headwinds in the US healthcare market begin to abate, AOTI is well-positioned to benefit," said chief executive Dr Mike Griffiths
"We continue to expect a CMS local coverage determination in the near term, which we believe has the potential to be transformational for the company."
Net debt at 31 December 2025 is expected to be approximately $6.5 million, compared with net cash of $0.9 million a year earlier.
The increase reflects a drawdown under the SWK Funding loan facility and higher receivables linked to reimbursement delays in Arizona.
Medicaid payments in Arizona have continued to be denied by insurers for more than a year, contributing to year-end receivables of $15.6 million, up from $8.2 million in 2024.
Claims totalling $1.1 million that were submitted through arbitration have been paid in full, although the company said the process is resource-intensive.
To limit further exposure, AOTI will cease treating new Arizona Medicaid patients from 1 April 2026 while continuing to seek a resolution with the state Medicaid agency.
Arizona Medicaid is expected to have contributed approximately $9.2 million of revenue in 2025.
Excluding Arizona, group revenue growth was approximately 15% for the year, compared with 19% in 2024.
The company said it has sufficient cash generation and headroom within its SWK facility to support working capital requirements.
CEO Griffiths said: "We enter 2026 with a stronger core business and capabilities that exceed any point in our history.
"Despite the major challenges presented by US policy initiatives in 2025, we have proactively managed this risk through the restructuring of our commercial teams and implementing key metrics to better drive performance in all targeted market segments.
The company will publish its audited FY 2025 results on 30 March 2026.