Anika Therapeutics Reports Decline in Q2 2025 Revenue and Increased Net Loss

Anika Therapeutics, Inc. reported a decline in financial performance for the second quarter of 2025, with revenues of $28.2 million, down 8% from $30.7 million in the same period of 2024. For the first half of 2025, total revenue was $54.4 million, a decrease of 9% compared to $59.7 million in the prior year. The company attributed this decline primarily to reduced sales activity with its Original Equipment Manufacturer (OEM) channel partners, particularly Johnson & Johnson MedTech, which accounted for 50% of total revenue in both periods. Gross profit also fell significantly, dropping to $14.4 million in Q2 2025 from $20.5 million in Q2 2024, reflecting a gross margin decrease from 67% to 51%.

Operating expenses for the second quarter decreased to $18.5 million from $22.3 million year-over-year, driven by reductions in both research and development and selling, general, and administrative costs. The company reported a loss from operations of $4.2 million for the second quarter, compared to a loss of $1.8 million in the same quarter of 2024. The net loss for Q2 2025 was $4.0 million, a significant increase from a loss of $88,000 in Q2 2024. For the first half of 2025, the net loss reached $8.8 million, compared to a loss of $4.6 million in the prior year.

In terms of strategic developments, Anika Therapeutics has undergone significant organizational changes, including the sale of its Arthrosurface and Parcus Medical divisions as part of a strategic shift to focus on its osteoarthritis pain management and regenerative solutions businesses. The sale of Arthrosurface was completed in October 2024, while the Parcus Medical sale was finalized in March 2025. These divestitures are expected to streamline operations and enhance the company's focus on its core product lines.

Operationally, the company reported a decrease in inventory levels, which fell to $16.9 million as of June 30, 2025, down from $23.8 million at the end of 2024. The reduction in inventory is indicative of the company's efforts to manage costs amid declining sales. Anika's employee headcount also saw a reduction, contributing to lower operating expenses. The company ended the second quarter with cash and cash equivalents of $53.2 million, a slight decrease from $55.6 million at the end of 2024.

Looking ahead, Anika Therapeutics aims to leverage its proprietary hyaluronic acid technology to drive growth in its target markets. The company is focused on advancing its product pipeline, including the anticipated U.S. regulatory approval for its Cingal and Hyalofast products. Despite the recent financial challenges, Anika's management remains optimistic about future opportunities, emphasizing their commitment to innovation and market expansion in the orthopedic sector.