AOTI Inc (AIM:AOTI), a medical technology company that treats chronic wounds using topical oxygen therapy, grew revenues 14% to $66.5 million in 2025, despite significant disruption across the US healthcare market.
The London AIM-listed group said growth was driven mainly by a 38% surge in Medicaid income, with New York state the standout performer.
Underlying profits (EBITDA) margin was 11.3%, which was better than market expectations. EBITDA slipped 6% to $7.5 million as the company invested in market access and set aside provisions for potentially uncollectable debts, a requirement under US accounting rules.
AOTI's core product, the TWO2 device, delivers controlled doses of oxygen directly to a wound, designed to promote faster, more durable healing and reduce the risk of amputation in patients with conditions such as diabetic foot disease.
The year brought a series of regulatory wins for the device: coverage approval from major US insurer Cigna, a nationwide treatment recommendation in Germany, and a recommendation from the National Institute for Health and Care Excellence (NICE) making it available across the NHS.
The company is also awaiting a coverage ruling from the Centers for Medicare and Medicaid Services (CMS) – the federal agency that sets reimbursement policy for America's two largest public health programmes.
Chief executive Mike Griffiths said the board expects a CMS local coverage determination "in the near term", which he said "will be transformational for the company over time".
More broadly, he said: "Our unique outcomes-based platform underpins AOTI's long-term sustainable growth and is fully aligned with the goals of the shift towards outcomes-based care in the US.
"Despite the major challenges caused by the implementation of US policy initiatives in the year, the business delivered good revenue growth and made meaningful operational progress that will enable AOTI to benefit once US healthcare market headwinds abate."
For 2026, the board guided for low single-digit revenue growth overall, with underlying profit margins in the high single digits as the company continues to invest in its salesforce and market access.