MiMedx Group, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales for the three months ended September 30, 2026, were $62 million, a 45% decrease from $114 million in the same period in 2025.
• Surgical product sales increased 9% year-over-year, while Wound sales decreased 71% year-over-year.
• Gross profit was $50 million for the quarter, down from $95 million in the prior year period; gross margin was 80%, compared to 84% in the prior year and 69% in the previous quarter.
• Selling, general and administrative (SG&A) expenses were $58 million, down from $69 million in the prior year period.
• Research and development (R&D) expenses were $3 million, down from $4 million in the prior year period.
• Net loss for the quarter was $9 million, compared to net income of $17 million in the prior year period.
• Cash and cash equivalents were $121 million as of September 30, 2026, down from $166 million as of December 31, 2025.
• The Company repaid the remaining $17 million term loan balance during the quarter, ending with no debt outstanding.
• Adjusted EBITDA for the quarter was $2.1 million, with an Adjusted EBITDA margin of 3.3%, compared to $35.0 million and 30.7% respectively in the prior year period.

Guidance and Future Outlook:

• For 2026, the Company expects net sales to be in the range of $250 million to $260 million.
• The Company expects Adjusted EBITDA for the fourth quarter to be sequentially higher than the third quarter.
• Longer-term, the Company expects to achieve annual net sales growth in the low double-digits and an adjusted EBITDA margin above 20%.
• The Company has not provided a reconciliation of forward-looking Adjusted EBITDA and margin to GAAP measures due to the inability to predict timing or amounts of excluded items without unreasonable efforts.

Business Segments and Product Lines:

• The Surgical franchise now represents nearly two-thirds of net sales, driven by sales of AMNIOFIX®, AMNIOEFFECT®, and HELIOGEN®.
• Wound Care Center unit volume grew 7% sequentially in the quarter.
• The Wound business performance continues to be negatively impacted by Medicare reimbursement changes effective January 1, 2026.
• Two 510(k) submissions are currently under review with the FDA.

Market and Competitive Landscape:

• Surgical franchise volume grew mid-teens against a strong prior-year comparison despite softer U.S. surgical procedure volumes.
• The Wound Care market is experiencing a sluggish reset, with signs of adjustment including patient migration into Wound Care Centers.
• The Company believes the market will favor established manufacturers with scale and robust clinical research.

Risks and Challenges:

• Future sales are uncertain and affected by competition, patient access, and a new reimbursement environment with tighter coverage and lower reimbursement levels.
• Risks related to the proposed Sanara MedTech acquisition include timing of closing, FTC review outcomes, financing availability, and integration risks.
• Scientific research results regarding amniotic tissue effectiveness are uncertain.
• Medicare spending rules and changes in the addressable market size pose potential risks.

Management Commentary and Tone:

• CEO Joseph H. Capper stated the results reflect progress in reshaping MIMEDX into a Surgical-led company with a leaner cost structure, returning to positive Adjusted EBITDA.
• Management noted that underlying demand in the Surgical portfolio remained strong despite discrete items dampening reported sales growth.
• The Company expressed conviction in the strategic rationale and financial merits of the Sanara acquisition while working with the FTC for HSR clearance.

Other Key Points:

• The U.S. District Court for the Northern District of Georgia issued a favorable ruling vacating the FDA's determination that AXIOFILL® is a biological product rather than a medical device, remanding the matter to the FDA.
• The Company entered into a patent license agreement with a wound care competitor resolving infringement allegations; the licensee will pay a total of $25 million in five equal annual installments, with the first installment already received.
• The Company has not provided a reconciliation of forward-looking Adjusted EBITDA and Adjusted EBITDA margin to the most directly comparable GAAP measures.