Anika Therapeutics (NASDAQ:ANIK) detailed its fourth-quarter and full-year 2025 results and outlined its strategy for 2026 during its earnings call on Thursday, highlighting commercial-channel growth, progress on its hyaluronic acid (HA)-based pipeline, and operational initiatives aimed at improving profitability and cash generation.
CEO outlines three strategic priorities
New President and Chief Executive Officer Steve Griffin, who recently stepped into the CEO role, credited former CEO Cheryl Blanchard—now Executive Chair—for repositioning the company through portfolio actions and progress across Integrity, Hyalofast, and Cingal. Griffin said the company is now operating under three strategic priorities:
- Revenue growth driven by the commercial channel, including international OA pain portfolio expansion and scaling Integrity to reduce reliance on OEM partners and improve diversification.
- Advancing the HA-based innovation pipeline, centered on Integrity, Hyalofast, Cingal, and longer-term opportunities.
- Improving operational execution, including manufacturing productivity, yield, throughput, and a streamlined organizational structure to support profitability and cash generation.
Q4 results: Commercial channel growth offsets OEM decline
Commercial channel revenue rose 22% to $13.3 million, driven by international execution and momentum in Integrity. International OA pain management revenue increased 28% in the quarter, which management attributed to sustained market share gains for Monovisc and Cingal across several regions.
OEM channel revenue was $17.3 million, down 12% year-over-year. Management pointed to lower year-over-year pricing for Monovisc and Orthovisc sold through J&J MedTech, while noting that both products continue to hold market-leading positions. Non-orthopedic revenue also declined due to lower demand for legacy products.
Profitability improved in the quarter, with GAAP gross margin rising to 63% from 56% a year earlier, reflecting a more favorable mix and higher volumes that improved manufacturing throughput and productivity. Operating expenses were $18.5 million, up from $17.8 million, with SG&A increasing on higher sales and marketing spending tied primarily to Integrity growth, while R&D held flat at $6.5 million.
Adjusted EBITDA from continuing operations was $4.5 million, which McLeod said came in higher than revised guidance due to strong commercial performance and expanded gross margin.
Full-year 2025: Revenue down 6% as OEM pricing pressures persist
For the full year, Anika reported total revenue of $112.8 million, down 6% year-over-year and in line with revised guidance. Commercial channel revenue increased 15% to $48.4 million, while OEM channel revenue declined 17% to $64.4 million, which management attributed primarily to pricing and market dynamics for Monovisc and Orthovisc in the U.S.
GAAP gross margin for 2025 was 57%, down from 63% in 2024, reflecting product mix, higher manufacturing costs tied to earlier-year disruptions, and legacy program costs. Operating expenses declined to $74.9 million from $81.1 million, with SG&A falling to $49.1 million from $55.6 million on lower G&A headcount and expense discipline. R&D was $25.8 million, essentially flat, and the company said it invested about $5.2 million in 2025 for Hyalofast and Cingal regulatory and clinical activities.
Adjusted EBITDA was $5.3 million, or about 5% of revenue, which management said exceeded its revised full-year outlook range of -3% to +3%. Operating cash flow was $11.2 million, up from $5.4 million in 2024, driven by working capital management and lower expenses. Capital expenditures totaled $6.8 million.
Anika ended 2025 with $57.5 million in cash and no debt. McLeod also said the company initiated a $15 million 10b5-1 stock repurchase plan in November 2025, bought $5.5 million of stock in the fourth quarter, and has repurchased $10.7 million to date, with completion expected in the second quarter of 2026.
Pipeline and product updates: Integrity, Hyalofast, and Cingal
Griffin said commercial growth in 2025 was driven by international OA pain management and Integrity. Integrity procedures and revenue more than doubled to approximately $6 million for the year, marking its seventh consecutive quarter of sequential growth. Management said more than 2,500 surgeries have been performed since launch, with more than 300 surgeons using the product. In the fourth quarter, the company said approximately 600 surgeries were performed, up 20% sequentially.
On Hyalofast, management said Anika submitted the third and final module of its PMA to the FDA in the fourth quarter of 2025, including results from the Fast Track Phase III study. Griffin noted the study did not achieve its pre-specified co-primary endpoints but showed statistically significant improvements in key pain and function measures used to approve other cartilage repair products. The company received an FDA deficiency letter in the first quarter of 2026 related to CMC and clinical data and said it is actively engaging with the agency.
Cingal surpassed one million injections across more than 40 international markets, according to management. In the U.S., the company said it completed required toxicity studies in 2025 and initiated a bioequivalence study in December 2025. Griffin said NDA timing will depend on enrollment progress; he did not provide a specific filing date, but said the company is preparing other components in parallel. In Q&A, he added the bioequivalence study targets “just under 60 patients” and that enrollment is “on track.”
2026 outlook: Modest total growth with profitability gains expected
For 2026, Anika maintained its previously communicated revenue ranges by channel and introduced total company guidance of $114 million to $122.5 million, representing 1% to 9% year-over-year growth. Commercial channel revenue is expected to grow 10% to 20% to $53 million to $58 million, driven by Integrity expansion in the U.S., Hyalofast performance outside the U.S., and international OA pain adoption.
OEM channel revenue is expected to be flat to down 5% to $61 million to $64.5 million, reflecting anticipated Monovisc unit volume growth partially offset by lower pricing, with Orthovisc expected to be modestly flat.
Adjusted EBITDA is projected at 5% to 10% of revenue, which management said reflects higher expected revenue led by the commercial channel, the benefit of G&A cost reduction actions and productivity gains, and manufacturing improvements, partially offset by continued OEM pricing dynamics.
In Q&A, Griffin said normalized gross margin expectations should be in the “high fifties,” noting fourth-quarter margins illustrated operating leverage but were not expected every quarter. He also said 2026 free cash flow is expected to be “modestly in line” with 2025, factoring in restructuring-related items.
Organizational changes and cost savings
Griffin said Anika implemented a new organizational structure intended to streamline leadership layers and align resources with growth initiatives. The company mutually agreed that Executive Vice President, General Counsel, and Corporate Secretary David Colleran will transition out of his role effective May 2026.
Management said the changes impacting G&A functions are expected to drive approximately $2.5 million in annualized headcount savings and more than $3 million in stock-based compensation savings. Griffin added the company does not plan to backfill the CFO, COO, or General Counsel roles, with responsibilities absorbed by senior leaders.
About Anika Therapeutics (NASDAQ:ANIK)
Anika Therapeutics, Inc is a life sciences company specializing in the development and commercialization of hyaluronic acid–based therapeutic products. The company focuses on orthobiologics and medical devices designed to support joint health, tissue repair and surgical applications. Anika’s proprietary hyaluronan technology serves as the foundation for products aimed at alleviating pain associated with osteoarthritis and enhancing healing in musculoskeletal and ophthalmic surgeries.
The company’s core product portfolio includes injectable viscosupplements such as Monovisc® and Orthovisc®, which are indicated for the relief of knee osteoarthritis pain, as well as Euflexxa®, approved for osteoarthritis of the knee in various international markets.
