AOTI Inc (AIM:AOTI) told investors that underlying first-half revenue growth reached 18%, beating its mid-teens full-year guidance, as stronger US Veterans Administration and Medicaid demand lifted reported revenue by 10% to approximately US$35 million.
Veterans Administration sales, which represented around 57% of group revenue, increased roughly 15% as disruption linked to US government efficiency initiatives largely abated.
Medicaid revenue rose 21% on an underlying basis excluding Arizona, though reported growth was limited to 2% after AOTI stopped accepting new Arizona Medicaid patients in April.
The wound-care technology company ended June with US$13.8 million of cash and net debt of US$6.3 million, compared with US$6.5 million at the end of 2025.
Since the period end, the US Centers for Medicare & Medicaid Services has proposed nationwide Medicare coverage for topical oxygen therapy used to treat diabetic foot ulcers. A 45-day consultation is underway, with the final determination expected within a year.
Chief executive Mike Griffiths said the proposed coverage would be “transformative” once finalised, and is broadly upbeat about the group's prospects.
"We remain optimistic about the benefits these continued positive trends will have on H2 performance," Griffiths said.
"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."
Interim results are scheduled for 30 September 2026.
