Onward Medical FY25 results: commercial execution continues

Onward's FY25 update shows solid commercial execution, although results came in slightly below expectations. The company sold 117 ARC-EX devices (KBCSe: 128) and generated € 5.4m in revenue (VA CSS: € 6.7m). However, we note that the ARC-EX system is now available in over 80 US rehabilitation centers (around 25% of specialized centers) representing solid market penetration for its first year. The company expects an acceleration of ARC-EX uptake in 2026 thanks to the home use label with particular momentum expected in VA centers. Beyond ARC-EX, the company now guides to an initial readout of the Empower BP trial in early 2027 (previously 2H26) but notes that FDA submission and potential commercial launch are not impacted. With a cash position of € 68.1m, we believe Onward to have sufficient funding to generate further commercial traction for ARC-EX. We reiterate our € 8.9 TP and BUY rating.