Strata Critical Medical — Q3 2026 Earnings Summary

Financial Performance:

• Total revenue increased 50.3% year-over-year to $74.1 million in Q3 2026, compared to $49.3 million in Q3 2025; on a pro forma basis, revenue increased 8.5% year-over-year.
• Logistics revenue decreased 3.5% year-over-year to $44.9 million in Q3 2026, while Clinical revenue increased to $29.2 million from $2.8 million in the prior year period.
• Gross profit increased 57.9% year-over-year to $16.8 million in Q3 2026, with a gross margin of 22.7% compared to 21.6% in Q3 2025 (an increase of 110 basis points).
• Net loss from continuing operations was $(7.6) million (10.3% of revenue) in Q3 2026, an improvement from $(9.7) million in Q3 2025.
• Adjusted EBITDA was $9.6 million in Q3 2026, up 128.0% from $4.2 million in Q3 2025, with an Adjusted EBITDA margin of 13.0% compared to 8.5% in the prior year.
• Cash flow from operating activities was $9.5 million in Q3 2026; Free Cash Flow was $8.6 million.
• Adjusted SG&A was $8.9 million in Q3 2026 (12.0% of revenue), down 2.1% sequentially from Q2 2026.
• Total Selling, General and Administrative expenses were $15.1 million in Q3 2026, down 4.9% year-over-year.
• Amortization of intangible assets was $5.5 million in Q3 2026, a 1,414.0% increase from $0.4 million in Q3 2025.
• The company ended Q3 2026 with $41.6 million in cash and short-term investments.

Guidance and Future Outlook:

• The company reiterated its full-year 2026 guidance: Revenue of $285-295 million; Adjusted EBITDA of $33-35 million; and Free cash flow, before aircraft and engine acquisitions, of $15-22 million.
• Pro forma guidance, assuming all 2026 acquisitions closed on January 1, 2026, indicates Revenue of $295-305 million and Adjusted EBITDA of $36-38 million.
• Management stated they are pacing ahead of medium-term goals set out the previous year.
• The company plans to accelerate its target pace of acquisitions and opportunistically return cash to shareholders.

Business Segments and Product Lines:

• Clinical revenue increased 20.3% sequentially in Q3 2026, driven by full quarter contributions from the Keystone acquisition (closed Q3 2025) and three acquisitions closed in Q2 2026.
• Clinical gross margin increased to 25.6% in Q3 2026 from 23.8% in Q3 2025, though it declined 50 basis points sequentially from 26.1% in Q2 2026 due to investments in staff and training.
• Logistics gross margin rebounded 240 basis points sequentially to 20.8% in Q3 2026 from 18.4% in Q2 2026, though it declined 70 basis points year-over-year from 21.5% in Q3 2025.
• Logistics gross margin decline year-over-year was driven by increased fuel surcharge pass-through revenue and a reduction in average distances between donor and recipient.
• Launched a new cardiothoracic surgical locum tenens business line to address customer demand.

Market and Competitive Landscape:

• Management reported additional market share gains in the clinical business.
• Logistics revenue decline was consistent with seasonal transplant industry volume declines.
• The company has an excellent pipeline of acquisition opportunities to deploy capital at mid-single-digit cash flow multiples.

Risks and Challenges:

• Forward-looking statements highlight risks including continued net losses, failure to achieve profitability, and the ability to realize benefits from strategic transactions.
• Risks include competition, dependence on organ donor availability and transplant volumes, reimbursement funding, aviation safety, fuel cost volatility, and regulatory framework changes.
• Specific risks include reliance on third-party aircraft operators, cybersecurity incidents, and potential litigation or regulatory scrutiny.

Management Commentary and Tone:

• Co-CEO Melissa Tomkiel stated that strong results demonstrate market share gains, sequential margin improvement, and a reduction in the Adjusted SG&A base.
• Co-CEO and CFO Will Heyburn highlighted the scalability and cash generation potential of the business model, citing record Free Cash Flow.
• Management expressed confidence in accelerating acquisitions and returning cash to shareholders due to improved cash generation and the receipt of the first passenger sale earn-out.
• Heyburn noted that the underlying driver of performance is better service architected for efficiency delivered in partnership with customers.

Other Key Points:

• Announced a $20 million share repurchase authorization to be deployed alongside the M&A strategy.
• Received the EBITDA earn-out from the Passenger business sale, settled in Joby Aviation stock sold for net proceeds of $15.3 million.
• Up to an additional $27.5 million of retention earn-out and indemnity holdback release may be received by Q1 2027.
• The company completed the sale of its Passenger business and the acquisition of Keystone, along with three other acquisitions in Q2 2026.
• Conference call scheduled for November 3, 2026, at 8:00 a.m. ET.