Covalon Technologies Ltd (OTCPK:CVALF)

Q4 2025 Covalon Technologies Ltd Earnings Call Transcript

Dec 11, 2025 / 01:30PM GMT

Release Date Price: $1.29 (-8.37%)

Transcript

Key Points

Positve

Covalon Technologies Ltd (CVALF) reported its highest revenue quarter of fiscal year 2025, with revenue reaching $8.7 million.
The company experienced strong growth in its US Vascular Access and surgical consumables sales channels, as well as international sales, both growing over 40% for the year.
Covalon Technologies Ltd (CVALF) successfully retained 100% of its top 50 US hospital customers and added 74 new hospital customers in 2025.
The company issued a special dividend of $0.15 per share, reflecting strong financial performance and cash generation.
Covalon Technologies Ltd (CVALF) completed an ISO 13485 surveillance audit with no non-conformances, highlighting operational and quality improvements.

Negative

Gross margins were down compared to the previous year, impacted by product and geographical mix shifts and inventory write-offs.
The US Advanced Wound Care sales channel experienced single-digit percentage declines, affecting overall revenue growth.
Operating expenses were down, but adjusted EBITDA and EPS decreased due to margin shifts.
The company faced disruption related to an ownership transition of a strategic partner in the US Advanced Wound Care segment.
Despite adding new customers and retaining existing ones, total revenue growth for the year was only 5.3%, indicating challenges in certain segments.

Operator

Good morning, ladies and gentlemen, and welcome to Covalon's fourth quarter fiscal 2025 conference call and webcast. My name is [Constantine], and I will be your conference operator today. As a reminder, today's conference is being recorded. (Operator Instructions)

At this time, I would like to turn the conference over to Mr. Brent Ashton, Chief Executive Officer. Please go ahead.

Brent Ashton

Covalon Technologies Ltd - Chief Executive Officer, Director

Okay. Thanks, [Constantine], and good morning to all of you on the call today. We really appreciate you connecting in. I'm joined here with Kim Crooks our Chief Operating Officer; and Katie Martinovich, our Chief Financial Officer; as well as Saleha Assadzada from Covalon, who's helping to coordinate the conference call and the webcast today. Saleha will now provide us with some instructions.

Saleha Assadzada

Covalon Technologies Ltd - Executive Assistant

Thank you, Brent. Good morning, everyone. My name is Saleha Assadzada, and I'm the Executive Assistant

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