Anika Therapeutics — Third Quarter 2026 Earnings Summary

Financial Performance

• Total revenue for Q3 2026 was $30.6 million, a 10% increase year-over-year from $27.8 million.
• Commercial Channel revenue reached $14.0 million, up 17% year-over-year.
• OEM Channel revenue reached $16.6 million, up 5% year-over-year.
• Gross margin improved to 62% in Q3 2026, compared to 56% in the prior-year period.
• Operating expenses were $19.5 million, up 4% year-over-year.
• GAAP loss from continuing operations was $0.3 million ($0.02 per diluted share), compared to a loss of $3.2 million ($0.22 per diluted share) in the prior-year period.
• Adjusted net income from continuing operations was $3.9 million ($0.29 per diluted share), compared to $0.7 million ($0.04 per diluted share) in the prior-year period.
• Adjusted EBITDA was $5.1 million, compared to $0.9 million in the prior-year period.
• Cash and cash equivalents were $45.0 million as of September 30, 2026.

Guidance and Future Outlook

• Raised the lower end of full-year 2026 total company revenue guidance to 6% to 10% growth (previously 5% to 10%).
• Raised full-year 2026 adjusted EBITDA margin guidance to 15% to 17% (previously 13% to 17%).
• Reaffirmed full-year 2027 total company revenue guidance of flat to 5% growth.
• Updated 2026 Commercial Channel revenue growth guidance to 9% to 13% (previously 12% to 18%) to reflect a slower elective surgery market.
• Updated 2026 OEM Channel revenue growth guidance to 5% to 9% (previously 0% to 5%).
• 2027 OEM Channel revenue guidance remains flat to modestly lower.
• Management expressed confidence in the full-year 2026 outlook and 2027 revenue expectations.

Business Segments and Product Lines

• Integrity revenue grew more than 30% year-over-year and 37% year-to-date, driven by larger implant sizes introduced in late 2025 and early 2026 expanding use into foot, ankle, and knee applications.
• International viscosupplement revenue increased 19% year-over-year in Q3.
• Total Regenerative Solutions revenue increased 12% year-over-year.
• Hyvisc revenue growth contributed to OEM Channel performance.
• Reintroduced Hyalomatrix, a Hyaff wound product, in the U.S. via a new OEM distributor with first units shipped in Q3.
• Launched second-generation Integrity instrumentation in September to offer alternative insertion and deployment options.
• Cingal bioequivalence study enrollment was completed in September; New Drug Application (NDA) submission is expected before year-end 2027.
• Hyalofast PMA application received a "not approvable" notification from the FDA in October based on clinical data; the company is assessing regulatory pathways and next steps.

Market and Competitive Landscape

• Commercial Channel growth was supported by international viscosupplement growth and Integrity adoption.
• OEM Channel growth was supported by Hyvisc growth and sales to J&J DePuy Synthes.
• The company noted more market-wide seasonality than usual in summer months affecting the elective surgery market.
• Demand for cross-link line unit volumes exceeded forecasts, with volumes now more than 50% above 2022 levels.

Risks and Challenges

• Hyalofast PMA application was deemed not approvable by the FDA, requiring assessment of additional evidence or alternative regulatory pathways.
• Slower than anticipated elective surgery market dynamics impacted Commercial Channel growth expectations.
• Forward-looking statements are subject to risks including clinical trial success, regulatory approval, manufacturing capacity, supply chain risks, and economic conditions.

Management Commentary and Tone

• CEO Steve Griffin stated the company executed against three priorities: accelerating revenue growth, strengthening operational execution, and advancing the pipeline.
• Management highlighted double-digit year-to-date revenue growth across both channels and secured a long-term agreement improving durability and economics.
• The tone was confident regarding the execution of priorities and the ability to drive sustained profitability.
• Management noted that manufacturing throughput has increased significantly to support future growth and expects additional productivity gains and margin improvement over time.

Other Key Points

• Secured a new 10-year partnership with Boehringer Ingelheim for Hyvisc distribution, featuring higher transfer pricing, royalties, and contractual purchases.
• The Hyvisc agreement includes $8 million in expected payments: a $4 million upfront payment in Q1 2027 and $4 million tied to commercial volumes.
• Integrity contributed $7.5 million in revenue for the trailing 12 months.
• Inventory levels increased significantly, with inventories net rising from $18.8 million at year-end 2025 to $30.4 million at September 30, 2026, reflecting increased production and safety stock building.
• The company repurchased $9.5 million of common stock during the nine months ended September 30, 2026.
• Stock-based compensation expense was $12.7 million for the nine months ended September 30, 2026, compared to $7.6 million in the prior-year period.
• Severance costs of $2.5 million were recorded for the nine months ended September 30, 2026.