Covalon Technologies Ltd
XTSX:COV
Covalon Technologies Ltd
Covalon Technologies Ltd. engages in the research, development, manufacturing, and marketing of patent-protected medical products. The company is headquartered in Mississauga, Ontario. The company went IPO on 2004-09-03. The firm uses science and technology to help solve medical challenges associated with prevention, detection and management of areas such as infection, tissue repair and medical devices. Its products include Advanced Wound Care, Vascular Access, Perioperative Care and Urology. Advanced Wound Care is designed for the treatment of a range of wounds and offers CovaWound and ColActive brands. Vascular Access portfolio includes CovaView IV, a transparent film dressing that provides an effective barrier against external contaminants, including fluid, bacteria, and yeast. Perioperative care refers to the three Phases of surgery, including preoperative, intraoperative, and postoperative care and its brands include MediClear and SurgiClear.
Covalon Technologies Ltd. engages in the research, development, manufacturing, and marketing of patent-protected medical products. The company is headquartered in Mississauga, Ontario. The company went IPO on 2004-09-03. The firm uses science and technology to help solve medical challenges associated with prevention, detection and management of areas such as infection, tissue repair and medical devices. Its products include Advanced Wound Care, Vascular Access, Perioperative Care and Urology. Advanced Wound Care is designed for the treatment of a range of wounds and offers CovaWound and ColActive brands. Vascular Access portfolio includes CovaView IV, a transparent film dressing that provides an effective barrier against external contaminants, including fluid, bacteria, and yeast. Perioperative care refers to the three Phases of surgery, including preoperative, intraoperative, and postoperative care and its brands include MediClear and SurgiClear.
Revenue: Covalon reported Q4 revenue of $8.7 million, its highest quarter of fiscal 2025, and full-year revenue of $32.8 million, up 5% from the prior year.
Margins: Gross margin for the year was just over 53%, impacted by product and geographic mix as well as inventory write-offs. Excluding inventory write-offs, gross margin was 56%.
Cash & Dividend: The company ended with CAD 17 million in cash after paying out its first-ever special dividend of $0.15 per share, totaling $4.1 million.
Sales Channels: U.S. Vascular Access and Surgical channels and International business each grew over 40%, offsetting single-digit declines in U.S. Advanced Wound Care.
Customer Expansion: Covalon retained 100% of its top 50 hospital customers, grew revenue from this group by 25%, and added 74 new hospital customers in 2025.
Operational Progress: Operating expenses fell 6.4% year-over-year, supported by automation, process improvements, and talent development.
Outlook: Management is optimistic about continued cash generation, gross margins in the low to high 50% range, and recovery in Advanced Wound Care sales after short-term disruption.
