Strata Critical Medical, Inc. Q3 FY2025 earnings call

• Closed 2 transformational transactions: divestiture of passenger business and acquisition of Keystone Perfusion, rebranded to Strata Critical Medical.
• Q3 revenue growth accelerated to 29% excluding Keystone, with record segment adjusted EBITDA growth 80% y-o-y excluding Keystone. Medical segment adjusted EBITDA margin increased to 15.1% in Q3 2025 excluding Keystone.
• Integration of Keystone and launch of clinical services division, creating an end-to-end organ recovery platform. Go-to-market strategy involves colocating resources near customers to offer cost-effective services. Rolled out new offerings to reduce DCD dry run recovery costs.
• Industry-wide NRP adoption rates increased, and OrganOx received FDA approval for liver perfusion device while in flight, with Strata supporting customers using this technology.

Revenue in Q3 2025 rose 36.7% year-over-year to $49.3 million. Excluding Keystone, revenue increased 29%. Air Logistics was a key driver of organic revenue growth, with new and existing customers contributing. Organ placement services revenue more than doubled year-over-year. Keystone, acquired on September 16, had a $2.8 million impact in the quarter, with September revenue up over 40% year-over-year. The Medical segment adjusted EBITDA margin was 15.1% in Q3 2025 excluding Keystone, a significant sequential improvement.

• Raised 2025 revenue guidance range to $185 million to $195 million.
• Reaffirmed adjusted EBITDA guidance range of $13 million to $14 million for 2025.
• Medical segment adjusted EBITDA margins expected to rise sequentially in Q4 2025 versus Q3's 15.3% due to Keystone acquisition mix impact.
• Inaugural Investor Day on November 17 to introduce 2026 financial guidance and medium-term financial targets.

• Forward-looking statements subject to risks and uncertainties as per SEC filings. Actual results may differ from forward-looking statements.
• Accounting nuances related to Keystone acquisition, including $44.3 million impact on operating cash flow and $6 million Joby transaction costs.
• Seasonality impact on transplant volumes, with Q3 seeing mid-single digit decline in industry volumes.

Q: Could you provide a disaggregation of where the growth came from in terms of revenue during Q3?

A: It was a mix of new customer acquisition, market share gain, and existing customers taking new services. Broadened service suite contributed to growth.

Q: With the Keystone acquisition, how many individual customers are you serving now?

A: Keystone has almost 250 different customers across the country, with strong geographic diversity. Only about 10% overlap of transplant customers between legacy Strata and Keystone.

Q: How is the Keystone acquisition going so far?

A: Getting positive customer reaction, great team joined. Keystone's business is concentrated in fast-growing transplant subsectors, with September revenue up over 40% y-o-y.