anik20260331

anik20260331_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-14027

Anika Therapeutics, Inc.

(Exact name of registrant as specified in its charter)

Delaware	04-3145961
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

	32 Wiggins Avenue, Bedford, Massachusetts	01730
	(Address of principal executive offices)	(Zip Code)

(781) 457-9000

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	ANIK	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

	Large accelerated filer ☐	Accelerated filer ☒
	Non-accelerated filer ☐	Smaller reporting company ☐
		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 21, 2026, there were 13,305,624 outstanding shares of Common Stock, par value $0.01 per share.

ANIKA THERAPEUTICS, INC.

TABLE OF CONTENTS

		Page
Part I	Financial Information	3
Item 1.	Condensed Consolidated Financial Statements (unaudited):	3
	Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025	3
	Condensed Consolidated Statement of Operations and Comprehensive Loss for the three months ended March 31, 2026 and 2025	4
	Condensed Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2026 and 2025	5
	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27
Item 4.	Controls and Procedures	27
Part II	Other Information	27
Item 1.	Legal Proceedings	27
Item 1A.	Risk Factors	28
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 3.	Defaults Upon Senior Securities	29
Item 4.	Mine Safety Disclosures	29
Item 5.	Other Information	29
Item 6.	Exhibits	30
Signatures		31

References in this Quarterly Report on Form 10-Q to “we,” “us,” “our,” “our company,” and other similar references refer to Anika Therapeutics, Inc. and its subsidiaries unless the context otherwise indicates.

ANIKA, ANIKA THERAPEUTICS, CINGAL, HYAFF, INTEGRITY, MONOVISC, ORTHOVISC, and TACTOSET are our trademarks that appear in this Quarterly Report on Form 10-Q. For convenience, these trademarks appear in this Quarterly Report on Form 10-Q without ® and ™ symbols, but that practice does not mean that we will not assert, to the fullest extent under applicable law, our rights to the trademarks. This Quarterly Report on Form 10-Q also contains trademarks and trade names that are the property of other companies and licensed to us (such as HYALOFAST, which is a registered trademark of Fidia Farmaceutici S.p.A.).

PART I:	FINANCIAL INFORMATION

ITEM 1.	FINANCIAL STATEMENTS

Anika Therapeutics, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except per share data)

(unaudited)

	March 31,			December 31,
ASSETS	2026			2025
Current assets:
Cash and cash equivalents	$	41,020		$	57,481
Accounts receivable, net		25,768			23,690
Inventories, net		22,838			18,787
Prepaid expenses and other current assets		3,935			3,400
Total current assets		93,561			103,358
Property and equipment, net		39,722			40,324
Right-of-use assets		25,430			25,939
Other long-term assets		4,303			4,034
Notes receivable		5,679			5,636
Deferred tax assets		1,150			1,275
Intangible assets, net		1,650			1,650
Goodwill		7,892			8,054

Total assets	$	179,387		$	190,270

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	6,339		$	6,041
Accrued expenses and other current liabilities		14,627			15,867
Total current liabilities		20,966			21,908
Other long-term liabilities		726			701
Lease liabilities		23,794			24,196
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock, $0.01 par value; 1,250 shares authorized, no shares issued and outstanding at March 31, 2026, and December 31, 2025, respectively		-			-
Common stock, $0.01 par value; 90,000 shares authorized, 15,629 issued and 13,357 outstanding and 15,385 issued and 13,889 outstanding at March 31, 2026, and December 31, 2025, respectively		133			139
Additional paid-in-capital		83,347			87,498
Accumulated other comprehensive loss		(5,310	)		(4,959	)
Retained earnings		55,731			60,787
Total stockholders’ equity		133,901			143,465
Total liabilities and stockholders’ equity	$	179,387		$	190,270

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Anika Therapeutics, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except per share data)

(unaudited)

	Three Months Ended March 31,
	2026			2025
Revenue	$	29,612		$	26,168
Cost of revenue		10,615			11,487
Gross Profit		18,997			14,681

Operating expenses:
Research and development		6,713			6,059
Selling, general and administrative		17,772			12,906
Total operating expenses		24,485			18,965
Loss from operations		(5,488	)		(4,284	)
Interest and other income, net		667			415
Loss before income taxes		(4,821	)		(3,869	)
Provision for income taxes		235			89
Loss from continuing operations		(5,056	)		(3,958	)
Loss from discontinued operations, net of tax		-			(915	)
Net loss	$	(5,056	)	$	(4,873	)

Loss per share:
Basic
Continuing operations		(0.37	)	$	(0.28	)
Discontinued operations		-			(0.06	)
	$	(0.37	)	$	(0.34	)

Diluted
Continuing operations		(0.37	)	$	(0.28	)
Discontinued operations		-			(0.06	)
	$	(0.37	)	$	(0.34	)

Weighted average common shares outstanding:
Basic		13,531			14,297
Diluted		13,531			14,297

Net loss	$	(5,056	)	$	(4,873	)
Foreign currency translation adjustment		(351	)		680
Comprehensive loss	$	(5,407	)	$	(4,193	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Anika Therapeutics, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders' Equity

(in thousands, except per share data)

(unaudited)

	Three Months Ended March 31, 2026
	Common Stock												Accumulated
							Additional						Other			Total
	Number of			$.01 Par			Paid			Retained			Comprehensive			Stockholders'
	Shares			Value			in Capital			Earnings			Loss			Equity
Balance, January 1, 2026		13,889		$	139		$	87,498		$	60,787		$	(4,959	)	$	143,465
Vesting of restricted stock units		359			3			(3	)		-			-			-
Stock-based compensation expense		-			-			6,191			-			-			6,191
Retirement of common stock for minimum tax withholdings		(116	)		(1	)		(1,657	)		-			-			(1,658	)
Repurchase of common stock		(775	)		(8	)		(8,682	)		-			-			(8,690	)
Net loss		-			-			-			(5,056	)		-			(5,056	)
Other comprehensive loss		-			-			-			-			(351	)		(351	)
Balance, March 31, 2026		13,357		$	133		$	83,347		$	55,731		$	(5,310	)	$	133,901

	Three Months Ended March 31, 2025
	Common Stock												Accumulated
							Additional						Other			Total
	Number of			$.01 Par			Paid			Retained			Comprehensive			Stockholders'
	Shares			Value			in Capital			Earnings			Loss			Equity
Balance, January 1, 2025		14,416		$	144		$	88,961		$	71,667		$	(6,783	)	$	153,989
Vesting of restricted stock units		250			2			1,693			-			-			1,695
Stock-based compensation expense		-			-			2,344			-			-			2,344
Retirement of common stock for minimum tax withholdings		(90	)		(1	)		(1,466	)		-			-			(1,467	)
Repurchase of common stock		(241	)		(2	)		(3,969	)								(3,971	)
Net loss		-			-			-			(4,873	)		-			(4,873	)
Other comprehensive income		-			-			-			-			680			680
Balance, March 31, 2025		14,335		$	143		$	87,563		$	66,794		$	(6,103	)	$	148,397

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Anika Therapeutics, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

	Three Months Ended March 31, 2026
	2026			2025

Cash flows from operating activities:
Net loss	$	(5,056	)	$	(4,873	)
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation		1,407			1,383
Amortization of acquisition related intangible assets		-			209
Non-cash operating lease cost		464			577
Stock-based compensation expense		6,641			2,863
Deferred income taxes		108			18
Provision for credit losses		(24	)		(346	)
Provision for inventory		1,032			832
Interest income on notes receivable		(179	)		(224	)
Gain on sale of assets		(52	)		(300	)
Changes in operating assets and liabilities:
Accounts receivable		(2,180	)		3,034
Inventories		(5,407	)		523
Prepaid expenses, other current and long-term assets		(1,728	)		(203	)
Accounts payable		745			47
Operating lease liabilities		(468	)		(569	)
Accrued expenses, other current and long-term liabilities		(1,339	)		(3,088	)
Income taxes		1,190			(13	)
Net cash used in operating activities		(4,846	)		(130	)

Cash flows from investing activities:
Purchase of property and equipment		(1,431	)		(2,824	)
Proceeds from sale of Parcus Medical, net		-			4,496
Notes receivable		192			-
Net cash used in by investing activities		(1,239	)		1,672

Cash flows from financing activities:
Repurchases of common stock		(8,690	)		(3,971	)
Cash paid for tax withheld on vested restricted stock awards		(1,657	)		(1,467	)
Net cash used in financing activities		(10,347	)		(5,438	)

Exchange rate impact on cash		(29	)		108

Decrease in cash and cash equivalents		(16,461	)		(3,788	)
Cash and cash equivalents at beginning of period		57,481			57,159
Cash and cash equivalents at end of period	$	41,020		$	53,371
Supplemental disclosure of cash flow information:
Non-cash investing activities:
Purchases of property and equipment included in accounts payable and accrued expenses	$	55		$	502

(a)

The cash flows related to discontinued operations have not been segregated and remain included in the major classes of assets and liabilities. Accordingly, the Consolidated Statements of Cash Flows include the results of continuing and discontinued operations. See Note 3 for selected financial information related to significant operating and investing cash flow items from discontinued operations.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Anika Therapeutics, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(amounts in thousands, except share and per share amounts or as otherwise noted)

(unaudited)

1.	Nature of Business

Anika Therapeutics, Inc. (the “Company”) is a global leader in the design, development, manufacturing, and commercialization of hyaluronic acid (HA) innovations. In partnership with clinicians, the Company’s sole focus is dedicated to delivering and advancing osteoarthritis (OA) pain management and orthopedic regenerative solutions. At the core is a passion to deliver a differentiated portfolio that improves patient outcomes around the world.

In early 2020, the Company expanded its overall technology platform through its strategic acquisitions of Parcus Medical, LLC (“Parcus Medical”), a sports medicine implant and instrumentation company, and Arthrosurface Incorporated (“Arthrosurface”), a company specializing in less invasive, bone preserving partial and total joint replacement solutions. These acquisitions broadened the Company's product portfolio, developed over its 30 years of expertise in HA technology, into joint preservation and restoration, increased its commercial capabilities, diversified its revenue base, and expanded its product pipeline and research and development expertise.

In October 2024, the Company announced a strategic shift to focus on its OA Pain Management and Regenerative Solutions businesses. This strategic decision resulted in the sale of Arthrosurface on October 31, 2024, and the sale of Parcus Medical on March 7, 2025.

The Company is subject to risks common to companies in the life sciences industry including, but not limited to, development by the Company or its competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, commercialization of existing and new products, and compliance with U.S. Food and Drug Administration (“FDA”) and foreign regulations and approval requirements, as well as the ability to grow the Company’s business through appropriate commercial strategies.

2.	Basis of Presentation

The accompanying unaudited condensed consolidated financial statements and related notes have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The financial statements include the accounts of Anika Therapeutics, Inc. and its subsidiaries. Inter-company transactions and balances have been eliminated. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to SEC rules and regulations relating to interim financial statements. The December 31, 2025 balances reported herein were derived from the audited consolidated financial statements. In the opinion of management, these unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary to fairly state the condensed consolidated financial statements.

The accompanying unaudited condensed consolidated financial statements and related notes should be read in conjunction with the Company’s annual financial statements filed with its Annual Report on Form 10-K for the year ended December 31, 2025. The results of operations for the three-month period ended March 31, 2026, are not indicative of the results to be expected for the year ending December 31, 2026.

Recent Issued Accounting Pronouncements

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses(“ASU 2024-03”), and in January 2025, the FASB issued ASU No. 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date(“ASU 2025-01”). ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses included in the expense captions presented in the income statement. ASU 2024-03, as clarified by ASU 2025-01, is effective for public companies for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently in the process of evaluating the impact of this pronouncement on its related disclosures.

In December 2025, the FASB issued ASU 2025‑11 — Interim Reporting (Topic 270): Narrow‑Scope Improvements to clarify and reorganize the U.S. GAAP guidance on interim financial reporting consistent with Accounting Standards Codification (“ASC”) Topic 270. This new pronouncement will require registrants to use a comprehensive list of interim disclosure requirements compiled in accordance with ASC 270 and recognize this list as the complete population of required interim GAAP disclosures. ASU 2025-11 is effective for public companies with interim periods beginning after December 15, 2027. The Company is currently in the process of evaluating the impact of this pronouncement on its related disclosures.

3.	Discontinued Operations

Arthrosurface

On October 31, 2024 (the “Closing Date”), the Company completed the sale of all of the outstanding equity interests of Arthrosurface, a Delaware corporation and former wholly-owned subsidiary of the Company, which held the Company’s Arthrosurface business, to Phoenix Brio, Incorporated, a Delaware corporation (the “Buyer”), pursuant to the terms and conditions of a Share Purchase Agreement, dated as of the Closing Date (the “Purchase Agreement”), by and among the Company, Arthrosurface and Buyer (the “Arthrosurface Transaction”).

As consideration for the Arthrosurface Transaction, at the closing, the Buyer delivered to the Company a ten-year non-interest-bearing promissory note in the principal amount of $7.0 million. Under the terms of the Purchase Agreement, the Company is also eligible to receive: (i) for each calendar quarter, an amount equal to a percentage of the net sales (the “Revenue Payments”) for the sale of certain commercial and pipeline products during the period commencing on the Closing Date and ending on the earlier of the fifth (5th) anniversary of the Closing Date or the date on which the Buy-Out Payment (as defined below) is paid to the Company; and (ii) a percentage of the gross proceeds with respect to the sale of certain commercial and pipeline products in a bona-fide arm’s length transaction with a third party that is not an affiliate of Buyer or the Company occurring within the first twenty four (24) months following the Closing Date. The Buyer can also elect to make a payment in an amount equal to the greater of (A) $14.0 million or (B) ten (10) times the Revenue Payments ((A) and (B) together, the “Buy-Out Payment”) paid to the Company during the last full calendar year prior to the consummation of a change of control transaction or Buyer’s written notice to the Company that it is electing to make the Buy-Out Payment. Pursuant to the Purchase Agreement, the aggregate consideration is subject to customary post-closing adjustments. The Company determined the fair value of the consideration with the sale of the Arthrosurface asset group to be $5.9 million and recorded as Notes Receivable on its balance sheet at the time of divestiture. The carrying value of the Notes Receivable was $5.7 million and $5.6 million, as of March 31, 2026, and December 31, 2025, respectively.

Selected financial information related to significant operating and investing cash flow items from discontinued operations (excluding working capital impacts) are as follows (in thousands):

	Three Months Ended March 31,
	2025
Depreciation	$	149
Amortization of acquisition related intangible assets	$	55
Non-cash operating lease cost	$	59
Stock-based compensation expense	$	132
Purchases of property and equipment	$	19

4.	Accounts Receivable

The Company estimates an allowance for credit losses with its accounts receivable resulting from the inability of its customers to make required payments, which is included in selling, general and administrative expenses in the accompanying consolidated statements of operations. In determining the adequacy of the allowance, management specifically analyzes individual accounts receivable, historical bad debts, customer concentrations, customer creditworthiness, current and reasonable and supportable forecasts of future economic conditions, accounts receivable aging trends, and changes in the Company’s customer payment terms.

The components of the Company’s accounts receivable are as follows:

	As of		As of
	March 31,		December 31,
	2026		2025
Accounts Receivable	$	26,859	$	24,817
Less: Allowance for credit losses		1,091		1,127
Net balance, end of period	$	25,768	$	23,690

A summary of activity in the allowance for credit losses is as follows:

	As of March 31,
	2026			2025
Balance, beginning of the period	$	1,127		$	730
Amounts provided		111			46
Amounts recovered		(135	)		(80	)
Translation adjustments		(12	)		20
Balance, end of period	$	1,091		$	716

5.	Fair Value Measurements

The Company has certain cash equivalents in money market funds that are classified within Level 1 of the fair value hierarchy and are valued based on quoted prices in active markets. For cash, accounts receivable, notes receivable, accounts payable, and accrued interest, the carrying amounts approximate fair value, because of the short maturity of these instruments, and therefore fair value information is not included in the table below. There were no transfers between fair value levels during the three-month periods ended March 31, 2026 and December 31, 2025, respectively.

The classification of the Company’s cash equivalents within the fair value hierarchy was as follows:

	March 31,		Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Amortized
	2026		(Level 1)		(Level 2)		(Level 3)		Cost
Cash equivalents:
Money Market Funds	$	28,849	$	28,849	$	-	$	-	$	28,849

	December 31,		Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Amortized
	2025		(Level 1)		(Level 2)		(Level 3)		Cost
Cash equivalents:
Money Market Funds	$	48,758	$	48,758	$	-	$	-	$	48,758

6.	Inventories

Inventories consist of the following:

	March 31,		December 31,
	2026		2025
Raw materials	$	12,401	$	10,724
Work-in-process		9,687		8,105
Finished goods		4,593		3,508
Total	$	26,681	$	22,337


Inventories	$	22,838	$	18,787
Other long-term assets		3,843		3,550
Total	$	26,681	$	22,337

Inventories are stated net of inventory reserves of approximately $4.0 million and $4.8 million, as of March 31, 2026, and December 31, 2025, respectively.

7.	Property and Equipment

Property and equipment is stated at cost and consists of the following:

	March 31,			December 31,
	2026			2025
Equipment and software	$	52,393		$	49,503
Furniture and fixtures		1,706			1,696
Leasehold improvements		36,987			36,824
Construction in progress		1,389			3,729
Subtotal		92,475			91,752
Less accumulated depreciation		(52,753	)		(51,428	)
Total	$	39,722		$	40,324

Depreciation expense was $1.4 million and $1.2 million for the three-month periods ended March 31, 2026, and 2025, respectively.

8.	Goodwill and Intangible Assets

The Company assesses goodwill for impairment annually, or, under certain circumstances, more frequently, such as when events or changes in circumstances indicate there may be impairment.

The change in the carrying value of goodwill for the three-months ended March 31, 2026, was as follows:

	Three Months Ended March 31,
	2026
Balance, beginning of period	$	8,054
Effect of foreign currency adjustments		(162	)
Balance, ending of period	$	7,892

The Company has intangible assets of $1.7 million at each of March 31, 2026, and December 31, 2025, which is comprised of in-process research and development assets.

9.	Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:

	March 31,		December 31,
	2026		2025
Compensation and related expenses	$	6,803	$	8,658
Share based compensation		2,898		2,448
Professional fees		1,913		1,800
Operating lease liability – current		1,942		2,052
Clinical trial costs		363		441
Deferred revenue		229		-
Other		479		468
Total	$	14,627	$	15,867

10.

Commitments and Contingencies

In certain of its contracts, the Company warrants to customers that the products it manufactures conform to the product specifications as in effect at the time of delivery of the specific product. The Company may also warrant that the products it manufactures do not infringe, violate, or breach any U.S. or international patent or intellectual property right, trade secret, or other proprietary information of any third party. On occasion, the Company contractually indemnifies its customers against any and all losses arising out of, or in any way connected with, any claim or claims of breach of its warranties or any actual or alleged defect in any product caused by the negligent acts or omissions of the Company. The Company maintains a products liability insurance policy that limits its exposure to these risks. Based on the Company’s historical activity, in combination with its liability insurance coverage, the Company believes the estimated fair value of these indemnification agreements is immaterial. The Company had no accrued warranties as of March 31, 2026, or December 31, 2025, and has no history of claims paid.

The Company is also involved from time-to-time in various legal proceedings arising in the normal course of business. Although the outcomes of these legal proceedings are inherently difficult to predict, the Company does not expect the resolution of these occasional legal proceedings to have a material adverse effect on its financial position, results of operations, or cash flow.

11.

Revenue and Geographic Information

Revenue by product classification is as follows:

Three Months Ended March 31,

SEC Form 10-Q filed by Anika Therapeutics Inc.