Anika Therapeutics, Inc.

Anika reported Q2 2026 revenue of $32.6 million, up 16% year over year. Commercial revenue was $13.9 million, up 17%, and international revenue was a record $12.6 million, up 22%. Gross margin was 65%, compared with 51% in the prior-year quarter. Adjusted EBITDA was $7.1 million, with a 22% margin, versus breakeven a year ago. Year-to-date revenue increased 14% to $62 million, first-half gross margin expanded more than 1,400 basis points to 65%, and first-half adjusted EBITDA was $11 million versus breakeven last year. Guidance was raised for full-year 2026: OEM revenue growth of 0% to 5% (from down 5% to flat), commercial growth of 12% to 18% (from 10% to 20%), total company revenue growth of 5% to 10% (from 1% to 9%), and adjusted EBITDA margin of 13% to 17% (from 5% to 10%). Management said second-half profitability should be modestly lower than the first half because of OEM order timing. For 2027, the company said total company revenue is expected to be 0% to 5% growth, excluding previously implied $3 million of U.S. Hyalofast sales.

Steve Griffin framed the quarter as evidence that Anika is becoming “stronger” and “more profitable,” saying the company is making progress on three priorities: sustainable growth, operational excellence, and HA-based innovation. He highlighted broad-based growth in international OA pain management and regenerative solutions, especially CINGAL, MONOVISC, and Integrity, and said the company is still in the early innings of a lean transformation. His tone was confident and constructive, emphasizing that mid-60s gross margin should be sustainable and that there are still more manufacturing and operational improvements ahead.

Ian McLeod emphasized that the first half of 2026 showed measurable improvement in both growth and profitability: revenue up 14% to $62 million, international revenue up 17% to $23 million, gross margin up more than 1,400 basis points to 65%, and adjusted EBITDA of $11 million. For Q2, he cited $32.6 million in revenue, gross margin of 65% versus 51% last year, operating expenses of $18.3 million, adjusted operating expenses of about $17.5 million excluding roughly $800,000 of severance, and adjusted EBITDA of $7.1 million. He also noted $38.4 million in cash and cash equivalents, no debt, completion of a $15 million share repurchase program, and a reduced share count of about 13.3 million, while reiterating that the amended credit facility provides a $50 million revolver with an accordion up to $100 million total potential commitment.

Analysts focused on three issues: whether the stronger OEM growth implied a second-half step-down, whether mid-60s gross margins are sustainable, and whether CINGAL enrollment and cash generation are on track. Management said OEM growth is being helped by some second-quarter order timing, but the bigger point is that price pressure is being offset by volume, and the company now expects year-over-year OEM growth for the full year. On margins, Griffin said mid-60s is the right operating range, with manufacturing productivity and throughput gains supporting it. On CINGAL, he said enrollment is progressing as expected and should complete around year-end; on cash flow, he said AR timing and inventory investment are delaying conversion, but the company expects positive free cash flow in the second half and sees 2027-and-beyond as the bigger cash-generation story.