MIMEDX GROUP, INC. Q4 FY2025 earnings call

• Joe mentioned in Q4 2025, MiMedx exceeded expectations, setting full - year record highs for revenue and adjusted EBITDA. The wound care and surgical businesses drove growth. The wound care market is adjusting to new reimbursement, but MiMedx is well - positioned. They have initiatives like the EpiEffect randomized control trial near full enrollment and collaborations to commercialize products. The surgical business grew 20% full - year, with recent launches like AmnioFix Thyroid Shield and licensing of additional products. They continue to invest in commercial resources, innovation, and scientific research. - Doug reviewed financial results: Q4 2025 net sales $118M, +27% y - o - y. GAAP gross profit $99M, GAAP gross margin 84%. Non - GAAP adjusted gross margin 86%. Sales and marketing expenses $61M, 52% of net sales. G&A expenses $12M, 10% of net sales. R&D expenses $5M, 4% of net sales. GAAP net income $15M, adjusted net income $20M. Fourth quarter adjusted EBITDA $29M, 25% of net sales. Full - year 2025 net sales $419M, +20% y - o - y. Net income $49M. Net cash balance increased nearly 75%.

In the fourth quarter of 2025, net sales were $118 million, a 27% year - over - year increase. Wound and surgical each grew at or above 25%. Full - year 2025 net sales were $419 million, a 20% growth compared to 2024. Wound care was a profit center despite reduced reimbursement. Surgical business had 20% full - year growth. Adjusted gross profit margin was 86% in Q4 2025. Adjusted EBITDA was $29 million, or 25% of net sales in Q4 2025. Full - year 2025 adjusted EBITDA was nearly $106 million with an adjusted EBITDA margin of over 25%. Net cash balance ended 2025 at $148 million.

• Best current estimate for full year 2026 revenue is $340 to $360 million. Q1 revenue expected to be lowest with substantial increases in successive quarters. Anticipate full year adjusted EBITDA in the mid to high teens. Looking to 2027, expect double - digit above - market top - line growth with margin profile similar to recent years prior to acquisitions. Board authorized a share repurchase program to buy back up to $100 million in stock over the next two years.

• Competition, access to customers, reimbursement environment, unforeseen circumstances, and delays could impact actual results differently from anticipated. The wound care market is experiencing disruption with issues like slow claims processing in WISER model states, increased audits and callbacks, product dumping, and some providers shutting down. There are uncertainties regarding CMS establishing clinical effectiveness requirements and the impact of such requirements on the company.

Q: Dave Terkelite from Citizens Bank asked about whether the market situation was anticipated, comfort with guidance, and sales force outlook.

A: Joe said the market situation was kind of anticipated, team is working hard to help customers, and they're being flexible with the commercial organization.

Q: Chase Knickerbocker from Craig Allen asked about volume perspective in Q1 wound market, bifurcation by site of service, and confidence in guidance.

A: Joe said there was a significant drop from Q4 to Q1, way too early to talk about market share changes, and they expect sequential growth as the year progresses.

Q: Frank from Lake street capital markets asked about revenue composition between wound and surgical in 2026 and growth of non - Medicare wound revenue.

A: Joe and Doug said it's likely around 50 - 50, and the private pay business will continue to grow at normal rate.

Q: Brad Bowers from Mizuho Securities asked about customer base information, pipeline, and product launches.

A: Joe said there's a lot of adjustment in the market, amniotic products will continue to develop internally with a couple products a year, and they'll support products with good clinical data.