Strata Critical Medical (NasdaqCM:BLDE) 2025 Investor Day November 17, 2025 02:00 PM ET Company ParticipantsKeith Trepanero - Chief Safety OfficerAndrew Murrill - Director of Business DevelopmentScott Silvestri - Organ Recovery and Service Line Champion and Medical DirectorMatt Schneider - VP of Finance and Investor Relations and CFO of Clinical ServicesScott Wunsch - CEO of LogisticsJustin Wang - Equity Research AssociateEric Moore - VP of Software Development and EngineeringChristie Campbell - VP of Clini ...

Investor Day November 2025 Agenda Slide | 1 | Business Overview & Key Investment Highlights | | --- | --- | | 2 | How Organ Transplantation Works | | 3 | Logistics Services | | 4 | Organ Recovery Clinical Services | | 5 | Organ Placement Services | | 6 | Cardiac Care Clinical Services | | 7 | Regulatory Update | | 8 | Technology | | 9 | Unit Economics & Contract Structure | | 10 | Financial Performance and Outlook | | 11 | Q&A 2 | FORWARD LOOKING STATEMENTS This presentation contains "forward-looking statem ...

Business Transactions - The Company completed the sale of its Passenger business for approximately $76.0 million, receiving net proceeds of $70.2 million after selling shares of Joby Aviation[153]. - The acquisition of Keystone Perfusion Services, LLC was finalized for $110.0 million, with potential earn-out payments of up to $23.0 million based on future performance[158]. Operational Model - Strata operates an asset-light logistics model, primarily utilizing third-party aircraft, which allows for predictable and flexible cost structures[160]. - In 2024, Strata acquired ten fixed-wing aircraft to improve service reliability and compete for contracts requiring asset ownership[162]. - The Company’s core services include air and ground logistics, surgical organ recovery, and normothermic regional perfusion, aimed at increasing successful organ transplants[148]. - Strata's technology enhances efficiency in staffing, training, and logistics, strengthening its position in the organ transportation industry[170]. - Strata's business model includes fixed pricing per flight hour with additional fuel surcharges, ensuring cost transparency for customers[159]. - The Company relies on contractual relationships with transplant centers and organ procurement organizations, emphasizing the importance of these partnerships for operational success[151]. Financial Performance - The Company reported continued net losses since inception, highlighting ongoing financial challenges[146]. - Revenue for the three months ended September 30, 2025, increased by $13.2 million, or 36.7%, to $49.3 million, driven by growth in flight hours and the acquisition of Keystone, which contributed approximately $2.8 million[197]. - For the nine months ended September 30, 2025, revenue increased by $19.9 million, or 18.0%, to $130.4 million, also driven by growth in flight hours and the inclusion of Keystone[198]. - Cost of revenue for the three months ended September 30, 2025, increased by $9.1 million, or 32.0%, to $37.7 million, primarily due to increased revenue[200]. - Cost of revenue as a percentage of revenue decreased from 79% in 2024 to 76% in 2025, driven by higher utilization of the owned fleet and enhanced operational leverage[201]. - The company reported a net loss from continuing operations of $9.7 million for the three months ended September 30, 2025[194]. - The net income from discontinued operations was $67.1 million for the three months ended September 30, 2025[194]. - Total net income from discontinued operations for the three months ended September 30, 2025, was $67.1 million, primarily from a gain on disposal of discontinued operations of $60.4 million[221]. - Net loss from continuing operations increased by $4.0 million for the three months ended September 30, 2025, from $(5.6) million in 2024 to $(9.7) million in 2025[229]. - Adjusted EBITDA improved by $4.1 million for the three months ended September 30, 2025, from $0.1 million in 2024 to $4.2 million in 2025[230]. - Gross profit increased by $4.1 million for the three months ended September 30, 2025, from $5.4 million in 2024 to $9.5 million in 2025[230]. - Flight profit increased by $4.1 million, or 54.7%, for the three months ended September 30, 2025, from $7.5 million in 2024 to $11.6 million in 2025[231]. - Net loss from continuing operations for the nine months ended September 30, 2025, was $(14.7) million, an increase of $5.9 million from $(8.7) million in 2024[233]. - Gross Profit increased by $3.6 million, from $19.6 million in the nine months ended September 30, 2024 to $23.2 million in 2025[235]. - Flight Profit rose by $4.9 million, or 19.9%, from $24.6 million in the nine months ended September 30, 2024 to $29.5 million in 2025, driven by an 18.0% increase in revenue[237]. - Adjusted EBITDA for the nine months ended September 30, 2025 was $7.1 million, compared to $2.7 million in 2024, representing an increase of 164.4%[241]. - Revenue for the nine months ended September 30, 2025 was $130.4 million, up from $110.4 million in 2024, reflecting an increase of 18.2%[241]. Cash Flow and Liquidity - Total liquidity as of September 30, 2025 was $75.9 million, down from $124.8 million as of December 31, 2024[249]. - Net cash used in operating activities for the nine months ended September 30, 2025 was $40.6 million, compared to $0.8 million in 2024[256]. - The company anticipates sufficient funds to meet operational needs for at least the next 12 months[250]. - The company has commitments to purchase flights with minimum guarantees of $3.2 million for 2025 and 2026[252]. - For the nine months ended September 30, 2025, net cash provided by investing activities was $51.5 million, primarily from $70.2 million in proceeds from the sale of Buyer Shares related to the Passenger business[259]. - The cash used in investing activities for the nine months ended September 30, 2024, was $5.0 million, driven by $142.8 million in purchases of held-to-maturity investments and $26.3 million in property and equipment purchases[260]. - For the nine months ended September 30, 2025, net cash used in financing activities was $7.2 million, mainly due to $7.3 million in payroll tax payments on behalf of employees[262]. - In the nine months ended September 30, 2024, net cash used in financing activities was $1.9 million, reflecting $1.8 million in payroll tax payments and $0.2 million in stock repurchases[263]. - The company reported $203.0 million in proceeds from maturities of held-to-maturity investments, net of $146.3 million in purchases for the nine months ended September 30, 2025[259]. - The company made $7.9 million in purchases of property and equipment, primarily for a spare engine and aircraft maintenance costs, for the nine months ended September 30, 2025[259]. - The company incurred $2.2 million in consideration for the acquisition of CJK during the nine months ended September 30, 2024[260]. Market and Risk Factors - The market for clinical service offerings is highly competitive, with the company competing on the quality and reliability of its services[178]. - The company has responded to customer demand by introducing new services through the acquisition of Keystone and organic growth initiatives[176]. - There have been no material changes in market risk since the last annual report for the year ended December 31, 2024[266]. - The company’s financial statements are prepared in accordance with U.S. GAAP, requiring estimates and assumptions that may affect reported amounts[264]. - There have been no material changes to the company's significant accounting policies and estimates as of September 30, 2025[265].

Financial Data and Key Metrics Changes - Revenue increased by 36.7% year-over-year to $49.3 million in Q3 2025, with a 29% increase excluding Keystone [11][12] - Medical segment-adjusted EBITDA margin improved to over 15% in Q3 2025, up from 10.8% in the prior year period [6][12] - Free cash flow from continuing operations was approximately $2 million for the quarter, indicating a positive cash flow generation outlook [14][17] Business Line Data and Key Metrics Changes - Organ placement services revenue more than doubled year-over-year, reflecting strong growth in this segment [11] - Air logistics contributed significantly to organic revenue growth, with new and existing customers driving strong results [11][12] - Keystone's revenue increased over 40% year-over-year for the full month of September, despite only contributing $2.8 million for half of Q3 [12] Market Data and Key Metrics Changes - Industry-wide NRP adoption rates continued to increase during Q3, with transplants of organs that have undergone NRP approximately doubling compared to the prior year [9] - Despite a seasonal decline in industry transplant volumes of approximately 6%, the company achieved a 3% sequential revenue increase [11] Company Strategy and Development Direction - The company has rebranded as Strata Critical Medical and shifted focus solely on healthcare, following the divestiture of its passenger business and acquisition of Keystone Perfusion [5][8] - The strategy includes offering tailored solutions to the transplant community, enhancing operational efficiencies and cost savings [8][9] - The company aims to consolidate market share in a fragmented marketplace, leveraging its scale and local service model [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand seen in Q3, leading to an increase in 2025 revenue guidance to a range of $185 million to $195 million [17] - The management team highlighted the positive reception of the Keystone acquisition and its potential to enhance service offerings [41] - The company anticipates continued growth driven by new technology and evolving regulations in the transplant industry [23] Other Important Information - The company ended the quarter with no debt and approximately $76 million in cash and short-term investments [16] - The Joby transaction closed during the quarter, with cash proceeds of approximately $70 million from monetizing shares [16] Q&A Session Summary Question: Can you provide a disaggregation of where the growth came from in terms of revenue during Q3? - Management indicated that growth was a mix of new customer acquisition and strength within existing customers, with a broadened suite of services contributing to revenue growth [22] Question: Do you see the growth coming from similar directions in the future? - Management expects continued customer acquisition and market share consolidation, supported by a favorable industry growth trajectory [23] Question: What should we expect in terms of fleet margin and downtime impact due to earlier maintenance? - Management noted that scheduled maintenance events have decreased and margins are expected to improve sequentially [24] Question: How many individual customers are being served now post-Keystone acquisition? - Management reported serving almost 250 different customers across cardiac care and transplant businesses, highlighting geographic diversity [30] Question: Is there any customer that constitutes 5% or more of revenues? - Management stated that the business is diversified, with no single customer making up a significant portion of revenues [31] Question: Are you evening out the revenue sides between air and ground logistics? - Air remains the larger part of the business, but there is potential for ground services to grow due to the Keystone acquisition [33] Question: Will there be a breakout of logistics versus perfusionist services in reporting? - Management indicated that a pro forma breakout for 2025 has been added to the investor deck, showing expected shifts in service mix [35]

Financial Data and Key Metrics Changes - Revenue rose 36.7% year-over-year to $49.3 million in Q3 2025, with a 29% increase excluding Keystone [11][12] - Medical segment-adjusted EBITDA margin increased to over 15% in Q3 2025, compared to 10.8% in the prior year period [6][12] - Free cash flow from continuing operations was approximately $2 million in the quarter, with expectations for consistent free cash flow generation moving forward [14][17] Business Line Data and Key Metrics Changes - Organ placement services revenue more than doubled year-over-year, indicating strong growth in this segment [11] - Keystone contributed $2.8 million in revenue for half a month, with a full month revenue increase of over 40% year-over-year [12] - The medical segment-adjusted EBITDA margins improved sequentially to 15.1% in Q3 2025, driven by better performance in the fleet [12] Market Data and Key Metrics Changes - Industry-wide NRP adoption rates continued to increase during Q3, with transplants of organs that have undergone NRP approximately doubling versus the prior year [9] - Despite a seasonal decline in industry transplant volumes of approximately 6%, the company achieved a 3% sequential revenue increase [11] Company Strategy and Development Direction - The company has rebranded as Strata Critical Medical and shifted focus to healthcare, aiming for long-term growth and value creation [5] - The integration of Keystone and the launch of a new clinical services division positions the company as an end-to-end organ recovery platform [8] - The strategy includes co-locating resources to reduce costs and improve service delivery efficiency [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand seen in Q3, leading to an increase in 2025 revenue guidance to $185 million-$195 million [17] - The company anticipates continued growth driven by new technology and evolving regulations in the transplant industry [23] - Management noted that the seasonal decline in transplant volumes is expected and has been historically observed, but the company is growing through this seasonality [40] Other Important Information - The company ended the quarter with no debt and approximately $76 million in cash and short-term investments [16] - A legal provision was booked during the quarter for ongoing litigation related to the go-public transaction [17] Q&A Session Summary Question: Can you provide a disaggregation of where the growth came from in terms of revenue during Q3? - Management indicated that growth was a mix of new customer acquisition and strength within existing customers, with a broadened suite of services contributing to revenue growth [21][22] Question: Do you see the growth coming from similar directions in the future? - Management expects continued customer acquisition and market share consolidation, supported by a favorable industry growth trajectory [23] Question: What should be expected in terms of fleet margin and maintenance impact? - Management noted that scheduled maintenance events have decreased and margins are expected to improve sequentially [24] Question: How many individual customers are being served now post-Keystone acquisition? - Management stated that there are almost 250 different customers across the cardiac care and transplant businesses, providing geographic diversity [30] Question: Is there any customer that constitutes 5% or more of revenues? - Management did not disclose specific customer revenue contributions but emphasized a diversified customer base [31] Question: Will there be a breakdown of logistics versus perfusionist services? - Management indicated that a pro forma 2025 business mix will be provided, reflecting the expected shift towards fast-growing subsectors of the transplant industry [35][36]

Financial Data and Key Metrics Changes - Revenue increased by 36.7% year-over-year to $49.3 million in Q3 2025, with a 29% increase excluding Keystone [11][12] - Medical segment-adjusted EBITDA margin rose to 15.1% in Q3 2025 from 12.5% in the first half of the year [12][13] - Free cash flow from continuing operations was approximately $2 million for the quarter [13] Business Line Data and Key Metrics Changes - Organ placement services revenue more than doubled year-over-year, indicating strong growth in this area [11] - Air logistics contributed significantly to organic revenue growth, with new and existing customers driving strong results [11][12] - Keystone's revenue increased over 40% year-over-year for the full month of September, despite only contributing $2.8 million for half of Q3 [12] Market Data and Key Metrics Changes - Industry-wide NRP adoption rates continued to increase, with transplants of organs undergoing NRP approximately doubling compared to the prior year [9][10] - Despite a seasonal decline in industry transplant volumes of approximately 6%, the company achieved a 3% sequential revenue increase [11] Company Strategy and Development Direction - The company has rebranded as Strata Critical Medical and shifted focus to healthcare, aiming for long-term growth and value creation [5] - The integration of Keystone Perfusion is expected to enhance operational efficiencies and cost savings for the transplant community [8][9] - The company plans to leverage local resources to reduce transportation costs and improve service delivery [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand seen in Q3, leading to an increase in 2025 revenue guidance to a range of $185 million-$195 million [16] - The company anticipates continued growth driven by new customer acquisitions and market share consolidation in a fragmented marketplace [22] - Management acknowledged the impact of seasonal factors on transplant volumes but emphasized the company's ability to grow through these challenges [39] Other Important Information - The company ended the quarter with no debt and approximately $76 million in cash and short-term investments [15] - The Joby transaction closed during the quarter, with cash proceeds of approximately $70 million from monetizing shares [15] Q&A Session Summary Question: Can you provide a disaggregation of where the growth came from in terms of revenue during Q3? - Management indicated that growth was driven by a mix of new customer acquisition and strength within existing customers, with new services contributing to the results [20][21] Question: Do you see the growth coming from similar directions in the future? - Management expects continued customer additions and market share consolidation, supported by favorable industry growth dynamics [22] Question: What should we expect in terms of fleet margin and maintenance impact for the remainder of the year? - Management noted that scheduled maintenance events have decreased and margins are expected to improve sequentially [23] Question: How many individual customers are being served now with the Keystone acquisition? - The company serves almost 250 different customers across cardiac care and transplant businesses, providing geographic diversity [29] Question: Is there any customer that constitutes 5% or more of revenues? - Management stated that the business is diversified, and they do not break out customer contributions by business line [30] Question: Are you evening out the revenue sides between air and ground logistics? - Air remains the larger part of the business, but the Keystone acquisition provides opportunities for ground logistics growth [32] Question: Will you break out logistics versus perfusionist side in the future? - Management indicated that a pro forma business mix will be provided in the investor deck, reflecting the expected future mix [33]

Financial Performance & Acquisitions - Strata's Q3 2025 revenue reached $493 million, a 37% year-over-year increase, with 29% organic growth excluding the Keystone acquisition[5] - The acquisition of Keystone Perfusion contributed approximately $28 million to Strata's Q3 2025 revenue[6] - Adjusted EBITDA for Q3 2025 was $42 million, representing an 85% margin[5] - Strata sold its passenger business to Joby Aviation for $125 million[14] - Strata acquired Keystone Perfusion for $124 million upfront, with potential earn-outs of $23 million based on gross profit targets[15] Market Position & Growth Strategy - Strata estimates its market share to be approximately 30% in air logistics and 15% in ground logistics for organ transport[11] - The company is focused on expanding its transplant clinical services, particularly Normothermic Regional Perfusion (NRP), driven by a 20%+ CAGR in Donation after Circulatory Death (DCD) donors[43] - Strata aims to increase aircraft utilization and improve operating costs by expanding into other time-critical logistics verticals[55] Organ Transplant Trends - The distance of heart, liver, and lung transplants has increased by 64% from 2018 to 2024 due to regulatory changes and new technologies[39] - Normothermic Regional Perfusion (NRP) penetration of DCD donors has increased to approximately 40% by Q3 2025[43] - U S heart, liver, and lung transplants have grown at a CAGR of 38% from 2010-2024[27]

Revenue Performance - Revenue increased 36.7% year-over-year to $49.3 million in Q3 2025, with a 29.0% increase excluding the impact of the Keystone acquisition[6] - Total revenue for the three months ended September 30, 2025, was $49,298,000, representing a 36.6% increase from $36,062,000 in the same period of 2024[28] - Revenue for the three months ended September 30, 2025, increased by 36.7% to $49,298, up from $36,062 in 2024[33] - Revenue excluding Keystone for the three months ended September 30, 2025, was $46,507, reflecting a 29.0% increase from $36,062 in 2024[33] Financial Losses - Net loss from continuing operations increased to $(9.7) million in Q3 2025, compared to $(5.6) million in the prior year period[6] - Operating loss from continuing operations for the three months ended September 30, 2025, was $(5,622,000), an improvement from $(7,092,000) in the same period of 2024[28] - Net loss from continuing operations for Q3 2025 was $9.657 million, compared to a loss of $5.627 million in Q3 2024, indicating a year-over-year increase of 72%[37] Adjusted EBITDA - Medical Segment Adjusted EBITDA rose 93.5% to $7.6 million in Q3 2025, with a margin of 15.3% compared to 10.8% in Q3 2024[11] - Adjusted EBITDA increased significantly to $4.2 million in Q3 2025 from $0.1 million in the prior year[11] - Adjusted EBITDA for the three months ended September 30, 2025, surged to $4,214, a significant increase of 6,189.6% from $67 in 2024[33] - Adjusted EBITDA as a percentage of revenue improved to 8.5% in Q3 2025 from 0.2% in Q3 2024, showcasing enhanced profitability[37] Cash Flow and Expenses - Operating cash flow was $(37.3) million in Q3 2025, primarily due to acquisition-related payments[16] - Free Cash Flow from continuing operations was $1.9 million in Q3 2025, excluding acquisition consideration and transaction costs[16] - Total operating expenses for the three months ended September 30, 2025, were $54,920,000, up from $43,154,000 in the same period of 2024[28] - Cash used in operating activities for the three months ended September 30, 2025, was $(37,297), compared to $6,355 in 2024[30] - Free cash flow from continuing operations for Q3 2025 was $1.911 million, with total free cash flow reported at $(40.492) million due to significant capital expenditures[45] Acquisition and Growth Strategy - The acquisition of Keystone Perfusion was completed, establishing a comprehensive organ recovery platform[16] - The divestiture of the Passenger business and the acquisition of Keystone are expected to drive long-term growth and value creation[8] - The company anticipates continued growth and integration benefits from the recent acquisition of Keystone, impacting future financial performance positively[51] Balance Sheet and Assets - Total assets increased to $335,078,000 as of September 30, 2025, up from $256,675,000 as of December 31, 2024[26] - Cash and cash equivalents rose to $22,753,000 as of September 30, 2025, compared to $16,072,000 as of December 31, 2024[26] - Total stockholders' equity increased to $283,000,000 as of September 30, 2025, from $221,938,000 as of December 31, 2024[26] - The company had cash and cash equivalents and restricted cash of $23,016 at the end of September 30, 2025, compared to $21,406 at the end of September 30, 2024[30] Legal and Transaction Costs - Legal expenses and regulatory advocacy fees for Q3 2025 totaled $5.045 million, primarily related to the Drulias lawsuit, indicating increased legal costs[38] - The company reported $1.134 million in non-recurring M&A transaction costs for Q3 2025, highlighting ongoing strategic acquisitions[37] - The company incurred acquisition costs of $(65,174) during the three months ended September 30, 2025[30] Net Income and Earnings Per Share - Net income from discontinued operations for the three months ended September 30, 2025, was $67,073,000, compared to $3,673,000 in the same period of 2024[28] - Basic and diluted earnings per share for the three months ended September 30, 2025, was $0.70, compared to $(0.03) in the same period of 2024[28] - Net income for the three months ended September 30, 2025, was $57,416, compared to a net loss of $(1,954) for the same period in 2024[30]

Company Overview - Strata Critical Medical, Inc. is a time-critical logistics and medical services provider to the U.S. healthcare industry, operating one of the largest air transport and surgical services networks for transplant hospitals and organ procurement organizations [3][4] - The company offers an integrated "one call" solution for donor organ recovery, which includes air and ground logistics, surgical organ recovery, organ placement, and normothermic regional perfusion for the transplant industry [4] Upcoming Event - Strata will hold an Investor Day at the Nasdaq MarketSite in New York City on November 17th, 2025, starting at 2:00 PM ET, featuring presentations by the management team [1] - Investors and analysts can register for the event on Strata's Investor Relations website, with a live video webcast and presentation materials available on the day of the event [2]

Core Insights - Strata Critical Medical, Inc. has completed the acquisition of Keystone Perfusion Services LLC, enhancing its position as a full-service organ transplant service provider [1][2][5] - The acquisition is expected to generate approximately $65 million in revenue and $13 million in Adjusted EBITDA for Keystone in 2025, with revenue projected to grow over 50% compared to 2024 [5][7] - The transaction was valued at $124 million, representing an approximate 9x multiple of Keystone's estimated Adjusted EBITDA for 2025 [4][5][13] Company Overview - Strata Critical Medical provides critical logistics solutions and specialized medical services across the U.S., focusing on expanding its service portfolio through acquisitions and organic growth [9] - Keystone Perfusion Services is a leading provider of normothermic regional perfusion and organ recovery services, supporting organ procurement organizations and transplant centers [12] Strategic Implications - The acquisition allows Strata to offer additional critical services directly to transplant customers, which were previously arranged through third parties [3][5] - Keystone's non-transplant services represent a new market opportunity for Strata, with significant growth potential in fragmented medical sectors [3][5] Financial Outlook - The financial guidance for 2025 has been updated to reflect the impact of the Keystone acquisition, with expectations for revenue between $180 million to $190 million and Adjusted EBITDA between $13 million to $14 million [14] - The company plans to provide further guidance for 2026, including the impact of the Keystone acquisition, during an investor day scheduled for November 17, 2025 [7]