AOTI (AIM:AOTI), a medical technology group focused on treating chronic wounds and preventing amputations through at-home care, reported revenue growth of 10% to approximately $35 million for the six months ended 30 June, up from $31.8 million a year earlier.
Stripping out Arizona Medicaid, where the company stopped treating new patients from 1 April, underlying revenue growth reached 18%, ahead of the mid-teens guidance previously issued for the full year.
The Veterans Administration, which accounts for roughly 57% of revenue, grew roughly 15% as disruption from US Department of Government Efficiency initiatives eased.
Medicaid, approximately 41% of revenue, grew 21% on an underlying basis and 2% on a reported basis.
Net debt stood at approximately $6.3 million at period end, against $5.4 million a year earlier and $6.5 million at the last full-year close, with cash of $13.8 million.
The Centers for Medicare & Medicaid Services has since issued a proposed Local Coverage Determination affirming nationwide coverage of topical oxygen therapy for diabetic foot ulcers, with a final decision expected within a year after a 45-day comment period.
"Once the LCD is finalised, the resulting mandated Medicare coverage and reimbursement will be transformative for AOTI, significantly expanding access to our therapy," said chief executive Dr. Mike Griffiths.
The company expects VA and Medicaid penetration to remain its main growth drivers until the final determination takes effect, and will report interim results on 30 September.
News Intelligence what this means for the company
AOTI delivered 18% underlying revenue growth in H1 2026, beating prior mid-teens guidance, driven by 15% VA growth and 21% underlying Medicaid expansion. The catalyst is a proposed CMS Local Coverage Determination affirming nationwide Medicare coverage of its topical oxygen therapy for diabetic foot ulcers—a decision the company frames as transformative, with final approval expected within a year. Until that determination takes effect, VA and Medicaid remain the growth engines; the Medicare win, once final, would unlock a new payer class currently unavailable.
The story hinges on regulatory timing: H1 results show the core business is accelerating ahead of guidance, but the investment thesis now pivots to a CMS final decision within 12 months. Until Medicare coverage is finalised, AOTI remains dependent on VA (57% of revenue) and Medicaid (41%) growth; the company's own framing suggests material upside is contingent on that determination, not yet assured.
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