Anika Therapeutics Q2 Earnings Call Highlights

Key Points

• Second-quarter performance strengthened: Revenue rose 16% year over year to $32.6 million, while gross margin expanded to 65% and adjusted EBITDA reached $7.1 million, the company’s strongest quarterly result since 2020.
• International products drove growth: Cingal and Monovisc sales increased 32% and 24%, respectively, while Integrity year-to-date revenue rose about 39%. Manufacturing upgrades also doubled throughput at a constrained production step and improved yields.
• Full-year guidance was raised: Anika now expects revenue growth of 5% to 10%, OEM growth of 0% to 5%, and an adjusted EBITDA margin of 13% to 17%; however, pricing pressure and OEM order timing are expected to weigh on second-half profitability.

Anika Therapeutics NASDAQ: ANIK reported higher second-quarter revenue, expanded gross margin and its strongest adjusted EBITDA performance since 2020, as international commercial growth and manufacturing improvements supported profitability.

Total revenue rose 16% year over year to $32.6 million in the second quarter of 2026. Commercial revenue increased 17% to $13.9 million, while international revenue reached a record $12.6 million, up 22% from the prior-year period. OEM revenue grew 14%, helped by Monovisc demand and favorable order timing.

“The second quarter marked great progress in our efforts to build a stronger, more profitable Anika,” President and CEO Steve Griffin said. He cited commercial-channel growth, gross-margin expansion and continued investment in growth initiatives.

International Products Drive Commercial Growth

Griffin said international osteoarthritis pain-management sales were a major contributor to the quarter. Cingal revenue rose 32% year over year and Monovisc revenue increased 24%, together adding approximately $2 million of incremental profitable revenue during the period. Through the first half, Cingal grew 23% and Monovisc grew 19%, contributing more than $3 million in incremental revenue, according to the company.

Anika attributed the momentum in part to greater focus on its core hyaluronic acid portfolio following portfolio actions undertaken during the past 18 months. The company also held an international distributor meeting during the quarter that included more than 35 distributors.

In regenerative solutions, the company said Integrity remained a growth driver. Year-to-date sales were up about 39%, with quarterly revenue just under $2 million for the second consecutive quarter. Anika said global surgeries and units sold increased sequentially and from a year earlier, supported by international demand and adoption of larger product sizes introduced late in 2025.

Stocking orders for Integrity outside the U.S. increased more than 50% in the second quarter, with June representing the product’s strongest month to date, Griffin said. The company expects to complete enrollment in its Integrity post-market clinical follow-up study in coming quarters, which it said would provide data needed for a European Union filing.

Hyalofast also contributed to double-digit growth in international regenerative-solutions revenue, management said.

Manufacturing Initiatives Lift Margin and EBITDA

Gross margin expanded to 65% from 51% in the year-earlier quarter. Senior Vice President, Chief Accounting Officer and Treasurer Ian McLeod said the improvement reflected manufacturing productivity, higher throughput, favorable product mix and operational-excellence initiatives.

Adjusted EBITDA was $7.1 million, or a 22% margin, representing the company’s strongest quarterly profitability result since 2020. Total operating expenses were $18.3 million, compared with $18.5 million a year earlier. Excluding approximately $800,000 in one-time severance costs, adjusted operating expenses declined 6% to about $17.5 million.

Research and development expense increased to $7.3 million from $6.3 million, reflecting investments in Cingal and chemistry, manufacturing and controls activities needed to support its planned new drug application submission.

Anika completed manufacturing projects during the first half that doubled throughput at a previously constrained step on its Monovisc and Cingal production line. It also completed an upgrade to its Orthovisc and non-orthopedic manufacturing line, which management said improved yield, throughput and efficiency.

During the question-and-answer session, Griffin said management expects gross margin to remain around the mid-60% range, while noting that margins will not move in a straight line each quarter. He said improved yields and throughput are expected to continue benefiting results, despite potential changes in product mix.

OEM Outlook Improves Despite Expected Pricing Pressure

Anika raised its full-year OEM channel outlook to growth of 0% to 5%, compared with its previous forecast of a decline of 5% to flat. Management said Monovisc unit volumes exceeded expectations during the quarter and more than offset lower-than-expected Orthovisc revenue.

Griffin said about $1 million to $2 million of second-quarter OEM performance benefited from order timing. He also noted that the company expects a more difficult comparison in the fourth quarter because OEM revenue was strong in the same period of 2025.

The company’s U.S. OA pain-management products are sold through its partnership with J&J DePuy Synthes. Griffin said pricing is expected to remain a headwind over the coming months and quarters, but higher volume is expected to more than offset modest pricing declines for Monovisc. He said Anika expects Orthovisc revenue to decline.

Pipeline Updates and Revised Guidance

For Hyalofast, Anika said it remains engaged with the U.S. Food and Drug Administration during the product’s premarket approval review. The company expects to submit its response to an FDA deficiency letter in the coming weeks. Griffin said the clinical study’s co-primary endpoints are the most important elements of the review and could affect the timing of an approval.

The company said enrollment in Cingal’s bioequivalent study remains on track for completion around year-end. Management said the final work stream before an NDA submission will likely be the development of the necessary chemistry, manufacturing and controls systems for hyaluronic acid as a drug.

Anika raised its full-year outlook as follows:

• Total company revenue growth of 5% to 10%, up from prior guidance of 1% to 9%.
• Commercial-channel revenue growth of 12% to 18%, compared with prior guidance of 10% to 20%.
• OEM revenue growth of 0% to 5%, compared with prior expectations of a 5% decline to flat performance.
• Adjusted EBITDA margin of 13% to 17%, up from prior guidance of 5% to 10%.

Management said second-half profitability is expected to be modestly below first-half levels due to OEM order timing. Anika also changed its 2027 guidance practice to include only products that have received regulatory clearance or approval, excluding previously implied U.S. Hyalofast sales of $3 million. Even with that change, the company said it expects total revenue growth of 0% to 5% in 2027.

Anika ended the quarter with approximately $38.4 million in cash and cash equivalents and no debt. It extended its credit facility, which includes a $50 million revolving commitment and an option to request up to an additional $50 million in borrowing capacity. The company also completed its previously announced $15 million share-repurchase program during the first half, ending the quarter with approximately 13.3 million shares outstanding.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.