Aroa Biosurgery (ASX:ARX) Operating Income: A$-0.52 Mil (TTM As of Mar. 2026)

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ASX:ARX Aroa Biosurgery Ltd ASX:ARX
62 GF Score
Price A$0.60
GF Value A$0.81
Valuation Modestly Undervalued
! 1 Warning Sign
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What is Aroa Biosurgery Operating Income?

Aroa Biosurgery ASX:ARX 62 Operating Income is A$-0.52 Mil as of Mar. 2026. GuruFocus rates ASX:ARX with a GF Score™ of 62/100 and a GF Value™ of A$0.81 (Modestly Undervalued). The stock has 1 warning sign investors should review.

Aroa Biosurgery's Operating Income for the six months ended in Mar. 2026 was A$3.32 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was A$-0.52 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Aroa Biosurgery's Operating Income for the six months ended in Mar. 2026 was A$3.32 Mil. Aroa Biosurgery's Revenue for the six months ended in Mar. 2026 was A$47.49 Mil. Therefore, Aroa Biosurgery's Operating Margin % for the quarter that ended in Mar. 2026 was 7.00%.

Good Sign:

Aroa Biosurgery Ltd operating margin is expanding. Margin expansion is usually a good sign.

Aroa Biosurgery's 5-Year average Growth Rate for Operating Margin % was 53.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Aroa Biosurgery's annualized ROC % for the quarter that ended in Mar. 2026 was 8.80%. Aroa Biosurgery's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 23.35%.


Aroa Biosurgery  (ASX:ARX) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Aroa Biosurgery's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=6.648 * ( 1 - 4.96% )/( (70.836 + 72.8)/ 2 )
=6.3182592/71.818
=8.80 %

where

Note: The Operating Income data used here is two times the semi-annual (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Aroa Biosurgery's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=11.204/( ( (19.031 + max(30.876, 0)) + (17.271 + max(28.801, 0)) )/ 2 )
=11.204/( ( 49.907 + 46.072 )/ 2 )
=11.204/47.9895
=23.35 %

where Working Capital is:

Working Capital(Q: Sep. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(13.734 + 7.096 + 18.073) - (3.747 + 0 + 4.28)
=30.876

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(17.691 + 5.019 + 18.372) - (5.242 + 0 + 7.039)
=28.801

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Aroa Biosurgery's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=3.324/47.488
=7.00 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Aroa Biosurgery Operating Income Related Terms


Aroa Biosurgery Operating Income Historical Data

* Premium members only.

The historical data trend for Aroa Biosurgery's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Aroa Biosurgery Operating Income Chart

Aroa Biosurgery Annual Data
Trend Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Operating Income
Get a 7-Day Free Trial -11.05 -8.13 -15.35 -8.13 -0.52

Aroa Biosurgery Semi-Annual Data
Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -6.53 -7.37 -0.76 -3.84 3.32
ASX:ARX
62GF Score
Aroa Biosurgery Ltd ASX:ARX
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Aroa Biosurgery Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was A$-0.52 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of A$-0.52 Mil mean?
Aroa Biosurgery (ASX:ARX) has a Operating Income of A$-0.52 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Aroa Biosurgery and its competitors.
Is Aroa Biosurgery's Operating Income too high?
Aroa Biosurgery's current Operating Income is A$-0.52 Mil. Overall, Aroa Biosurgery has a GF Score™ of 62/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aroa Biosurgery's Operating Income compare to ABT and SYK?
Aroa Biosurgery's Operating Income of A$-0.52 Mil can be compared against companies in the Medical Devices & Instruments industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Medical Devices & Instruments company?
A good Operating Income depends on the Medical Devices & Instruments industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Aroa Biosurgery and its competitors. Aroa Biosurgery's current Operating Income is A$-0.52 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aroa Biosurgery stock overvalued right now?
Based on GuruFocus' analysis, Aroa Biosurgery (ASX:ARX) is currently considered Modestly Undervalued. The stock's GF Value™ is A$0.81, compared to a current price of A$0.60 — trading 25.9% below its estimated fair value. The current Operating Income is A$-0.52 Mil. Aroa Biosurgery's overall GF Score™ is 62/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Aroa Biosurgery (ASX:ARX), the current Operating Income is A$-0.52 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Aroa Biosurgery (ASX:ARX) Overvalued in 2026?

Based on GuruFocus' analysis, Aroa Biosurgery stock appears to be undervalued. The current stock price of A$0.60 is trading 25.9% below its estimated GF Value™ of A$0.81. GuruFocus considers Aroa Biosurgery to be Modestly Undervalued.

Key valuation signals for ASX:ARX:

  • Operating Income: A$-0.52 Mil
  • GF Value™: A$0.81 vs. price of A$0.60 (25.9% below fair value)
  • GF Score™: 62/100 with 1 warning sign

No single metric tells the full story. See the ASX:ARX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Aroa Biosurgery Business Description

Other Exchanges AROAF:USA
Address 64 Richard Pearse Drive, Mangere, Airport Oaks, Auckland, NZL, 2022
Aroa Biosurgery Ltd is a soft tissue regeneration company that develops, manufactures, and sells medical devices for wound and soft tissue repair using its proprietary extracellular matrix (ECM) technology. It is focused on improving the rate and quality of healing in complex wounds and soft tissue reconstruction. The company is in the business of developing, manufacturing, and selling soft tissue repair products. The company's principal market is the United States, where it has five key products for sale targeting chronic wounds, hernia, plastics, reconstructive surgery, and trauma/limb salvage/tumor surgery.
62GF Score

Get the complete analysis for ASX:ARX

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$0.60
Price
A$0.81
GF Value