Summary of MiMedx Group (MDXG) 2025 Conference Call Company Overview - MiMedx is a pioneer and leader in the med tech industry, focusing on wound and surgical opportunities aimed at helping patients heal [3][4] - The company primarily derives its business from products made from birth tissue, particularly placenta from healthy C-section deliveries [5][6] Industry Insights - There is a significant patient population with chronic and hard-to-heal wounds, with approximately 10 million people affected at any given time, particularly within the Medicare demographic [4] - The company emphasizes the catastrophic outcomes of untreated wounds, including amputation and high mortality rates [5] Business Segments - The business is divided into two main segments: wound care (approximately two-thirds of revenue) and surgical (approximately one-third), both of which are experiencing growth [7][8] - The surgical segment has seen increased utilization of products in various surgical procedures, including hernia repairs and bowel resections [14][15] Strategic Priorities - MiMedx's strategic priorities focus on reaching more patients, growing the business, and unlocking shareholder value [8] - The company is preparing for changes in the physician fee schedule (PFS) and outpatient prospective payment system (OPPS), which are expected to impact reimbursement structures positively [10][11] Product Development and Innovation - The company is launching new products, such as Epi Express, which addresses fluid retention issues in wound care [19][20] - MiMedx is also focused on generating evidence to support the efficacy of its products, which is crucial for gaining acceptance from payers and clinicians [22][23] Financial Performance - The company reported strong growth in Q2, with contributions from both wound and surgical segments, leading to raised guidance for the remainder of the year [30][31] - EBITDA guidance remains at 20%, with ongoing efforts to improve gross margins and manage expenses effectively [32][33] Market Dynamics - Anticipated patient migration from private offices back to wound care centers due to changes in reimbursement structures is a key area of focus [38] - The company is optimistic about the long-term prospects of the business, especially as the reimbursement environment stabilizes [40] Partnerships and Collaborations - MiMedx is exploring strategic alliances, such as with Vaprox, which complements its product offerings and enhances the sales force's effectiveness [24][25][28] Conclusion - MiMedx is positioned to navigate the evolving reimbursement landscape while continuing to innovate and expand its product portfolio, with a strong emphasis on evidence-based outcomes to support its offerings [39][40]

Group 1 - MiMedx Group, Inc. will present six posters showcasing its latest product innovations at the Symposium on Advanced Wound Care (SAWC) Fall meeting from September 3-6, 2025, in Las Vegas, NV [1][3] - The company aims to highlight its advanced wound care portfolio at booth 511 during the SAWC event, which is a key platform for clinicians and industry professionals [1] - The company has a vision to be the leading global provider of healing solutions through relentless innovation, focusing on chronic and hard-to-heal wounds [4] Group 2 - A sponsored lunch symposium titled "Change is Inevitable: Mastering the Art of Wound Healing in an Evolving Landscape" will take place on September 4, 2025, featuring discussions on advanced treatment approaches for diverse patient populations [2] - The symposium will include presentations by notable faculty members, addressing the complexities and challenges in wound care [2]

Company Performance - MiMedx reported quarterly earnings of $0.1 per share, exceeding the Zacks Consensus Estimate of $0.06 per share, and up from $0.08 per share a year ago [1] - The earnings surprise was +66.67%, with the company having surpassed consensus EPS estimates two times over the last four quarters [2] - Revenues for the quarter ended June 2025 were $98.61 million, surpassing the Zacks Consensus Estimate by 10.45%, and up from $87.21 million year-over-year [3] Stock Movement and Outlook - MiMedx shares have declined approximately 30.7% since the beginning of the year, contrasting with the S&P 500's gain of 8.3% [4] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters [5] - The current consensus EPS estimate for the next quarter is $0.07 on revenues of $94.78 million, and $0.26 on revenues of $375.01 million for the current fiscal year [8] Industry Context - The Medical - Biomedical and Genetics industry, to which MiMedx belongs, is currently in the top 37% of over 250 Zacks industries, indicating a favorable industry outlook [9] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact MiMedx's stock performance [6]

Financial Data and Key Metrics Changes - The company reported a 13% year-over-year increase in net sales, reaching a record $99 million, marking the highest quarterly revenue in its history [4][20] - Adjusted EBITDA for the quarter was $24 million, representing 25% of net sales, an increase from 23% in the prior year [27] - The adjusted gross profit margin was 84%, remaining stable compared to the previous year [22][27] - Cash and cash equivalents at the end of the quarter were $119 million, an increase of $12 million from the previous quarter [7][27] Business Line Data and Key Metrics Changes - Wound care sales were $64 million, up 12% year-over-year, while surgical sales increased by 15% to $34 million [21] - The surgical business saw strong contributions from products like AmnioEffect and AmnioFix, with HelioGen sales also accelerating [21][27] Market Data and Key Metrics Changes - The company is preparing for changes in the Medicare reimbursement system set to take effect on January 1, 2026, which is expected to impact the market dynamics significantly [5][16] - The proposed fixed payment for skin substitutes is set at $125.38 per square centimeter across all outpatient care settings [18] Company Strategy and Development Direction - The company aims to innovate and diversify its product portfolio, focusing on unmet needs in wound care and surgical markets [8][12] - Strategic priorities include expanding the surgical market footprint, enhancing customer intimacy, and developing complementary wound care solutions [12][14] - The company is actively collaborating with Vaprox Incorporated to co-market their Vaporous Hyperoxia Therapy device, which is expected to complement its existing product offerings [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the upcoming reimbursement changes will ultimately benefit the company in the long term, as it has robust evidence supporting its technology [33][36] - The company anticipates that the market will stabilize post-reform, allowing it to compete effectively based on product efficacy rather than price [35][38] - Management raised full-year revenue growth guidance from high single digits to low double digits due to strong performance and momentum [18] Other Important Information - The company is focused on maintaining strong customer relationships through initiatives like Mimetics Connect, which aims to improve customer engagement and satisfaction [15] - The company is also preparing for potential inventory management challenges as the new reimbursement rules come into effect [56] Q&A Session Summary Question: Thoughts on the market post-reimbursement change - Management welcomed the reimbursement changes, believing they will lead to a more rational market and better long-term prospects for the company [33][34] Question: Impact of fixed pricing on market size - Management indicated that it is too early to estimate the market size under the new fixed pricing but expressed confidence in gaining market share [38] Question: Confidence in maintaining growth despite pricing changes - Management is confident that they can maintain growth by capturing market share, even with the new pricing structure [41][43] Question: Timeline for EpiEffect readout - Management expects to have data from the EpiEffect randomized controlled trial by the end of the year, although enrollment has been slower than anticipated [45] Question: CMS flexibility on the fixed rate - Management could not predict CMS's flexibility regarding the fixed rate but plans to provide comments and recommendations during the comment period [50][52] Question: Potential anomalies in stocking due to LCDs - Management will closely monitor inventory levels as the new LCDs approach, ensuring readiness for any changes [54][57] Question: Opportunities in the mobile wound care market - Management acknowledged the importance of mobile wound care but did not provide specific strategies for that segment [66] Question: Impact of LCDs on market dynamics - Management speculated that a significant portion of the current market volume may decrease due to overutilization and the introduction of new pricing [77][80]

[Filing Information](index=1&type=section&id=Filing%20Information) This section provides essential company identification, contact details, and securities information for MiMedx Group, Inc [Registrant Details](index=1&type=section&id=Registrant%20Details) This section provides the essential identification and contact information for MiMedx Group, Inc., the registrant of this Form 8-K - Registrant: **MIMEDX GROUP, INC.**[1](index=1&type=chunk) - Jurisdiction of incorporation: **Florida**[1](index=1&type=chunk) - Principal executive offices address: **1775 West Oak Commons Ct., NE, Marietta GA 30062**[1](index=1&type=chunk) - Telephone number: **(770) 651-9100**[1](index=1&type=chunk) [Securities and Company Status](index=1&type=section&id=Securities%20and%20Company%20Status) This section details the company's registered securities and confirms its status regarding emerging growth company provisions Registered Securities | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :---------------------------------------- | | Common Stock, $0.001 par value per share | MDXG | The Nasdaq Stock Market LLC | - The registrant is not an emerging growth company[3](index=3&type=chunk) [Cautionary Statements](index=2&type=section&id=Cautionary%20Statements) This section outlines the company's forward-looking statements and the various risk factors that could impact future results [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section highlights the inclusion of forward-looking statements within the report, covering future financial performance, market expectations, and growth, and identifies the terminology used to recognize such statements - Forward-looking statements include expectations regarding future sales or sales growth, 2025 and longer-term financial goals (net sales, Adjusted EBITDA, Adjusted EBITDA margin, corporate expenses, cash), the placental tissue market, Medicare spending reform, and continued growth in different care settings[4](index=4&type=chunk) - Such statements are identified by words like "believe," "expect," "may," "plan," "goal," "outlook," "potential," "will," "preliminary," and similar expressions[4](index=4&type=chunk) [Risk Factors](index=2&type=section&id=Risk%20Factors) This section outlines the various risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, emphasizing factors such as market competition, research outcomes, international market challenges, and regulatory changes - Factors that could cause actual results to differ include: future sales uncertainties (competition, customer access, reimbursement), unforeseen changes in company plans, uncertain value of scientific research, challenges in selling products internationally (reimbursement, market acceptance, sales force), ongoing studies on amniotic tissue effectiveness, potential alterations in R&D expenditures based on regulatory developments, Medicare spending, and changes in the addressable market size[5](index=5&type=chunk) - Additional risks and uncertainties are described in the Risk Factors section of the Company's most recent annual and quarterly reports filed with the SEC[5](index=5&type=chunk) [Current Report Items](index=2&type=section&id=Current%20Report%20Items) This section details the company's financial results announcement, investor communication plans, and accompanying exhibits for the current report [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) MiMedx Group, Inc. announced its financial results for the quarter ended June 30, 2025, through an Earnings Press Release issued on July 30, 2025, which is attached as Exhibit 99.1 and incorporated by reference - On July 30, 2025, MiMedx Group, Inc. issued an Earnings Press Release announcing its results for the quarter ended June 30, 2025[6](index=6&type=chunk) - The Earnings Press Release (Exhibit 99.1) is attached and incorporated by reference[6](index=6&type=chunk) - The information is furnished, not "filed," under Section 18 of the Securities Exchange Act of 1934[7](index=7&type=chunk) [Item 7.01 Regulation FD Disclosure](index=2&type=section&id=Item%207.01%20Regulation%20FD%20Disclosure) The company disclosed its plan to host an earnings conference call and webcast on July 30, 2025, and furnished the related slide presentation and investor presentation materials as Exhibits 99.2 and 99.3, respectively - MiMedx Group, Inc. intends to host an Earnings Call and webcast on July 30, 2025, at 4:30 PM Eastern Daylight Time, to discuss its financial and operating results[8](index=8&type=chunk) - A slide presentation for the Earnings Call (Exhibit 99.2) and investor presentation materials (Exhibit 99.3) are attached and incorporated by reference[8](index=8&type=chunk) - The information is furnished, not "filed," under Section 18 of the Securities Exchange Act of 1934[9](index=9&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section lists all exhibits accompanying this Form 8-K filing, including the Earnings Press Release, Earnings Call Presentation, Investor Presentation, and the Inline XBRL formatted cover page Exhibits Filed with Form 8-K | Exhibit No. | Description of Exhibit | | :---------- | :------------------------------------- | | 99.1 | Earnings Press Release dated July 30, 2025 | | 99.2 | Earnings Call Presentation dated July 30, 2025 | | 99.3 | Investor Presentation dated August 2025 | | 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL. | [Signatures](index=3&type=section&id=Signatures) This section confirms the official signing of the report by the authorized corporate officer [Authorized Signature](index=3&type=section&id=Authorized%20Signature) This section confirms that the report was duly signed on behalf of MiMedx Group, Inc. by its Chief Financial Officer, Doug Rice, on July 30, 2025, in accordance with the requirements of the Exchange Act - The report was signed on behalf of **MIMEDX GROUP, INC.** by **Doug Rice, Chief Financial Officer**[13](index=13&type=chunk)[14](index=14&type=chunk) - Date of signature: **July 30, 2025**[14](index=14&type=chunk)

Part I - FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited condensed consolidated financial statements for Q2 2025 and 2024, detailing balance sheets, operations, equity, cash flows, and notes [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (in thousands) | ASSETS (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $118,869 | $104,416 | | Accounts receivable, net | $69,228 | $55,828 | | Inventory | $24,890 | $23,807 | | Total current assets | $220,876 | $191,886 | | Total assets | $291,109 | $263,915 | | LIABILITIES AND STOCKHOLDERS' EQUITY (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total current liabilities | $50,290 | $45,595 | | Total liabilities | $74,485 | $70,808 | | Total stockholders' equity | $216,624 | $193,107 | | Total liabilities and stockholders' equity | $291,109 | $263,915 | - Total assets increased by **$27.194 million** from December 31, 2024, to June 30, 2025, primarily driven by an increase in cash and cash equivalents and accounts receivable[16](index=16&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (in thousands, except share and per share data) | (in thousands, except share and per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net sales | $98,605 | $87,207 | $186,810 | $171,915 | | Gross profit | $79,924 | $72,352 | $151,571 | $144,074 | | Operating income | $12,370 | $23,450 | $20,620 | $36,649 | | Net income | $9,618 | $17,625 | $16,639 | $26,886 | | Basic net income per common share | $0.07 | $0.12 | $0.11 | $0.18 | | Diluted net income per common share | $0.06 | $0.12 | $0.11 | $0.18 | - Net sales increased by **13.1%** for the three months ended June 30, 2025, and by **8.7%** for the six months ended June 30, 2025. However, net income from continuing operations decreased by **45.4%** and **37.6%** for the three and six months ended June 30, 2025, respectively, primarily due to the absence of a significant investigation, restatement, and related benefit recognized in the prior year[18](index=18&type=chunk)[73](index=73&type=chunk)[84](index=84&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Condensed Consolidated Statements of Stockholders' Equity (in thousands, except share data) | (in thousands, except share data) | Balance at Dec 31, 2024 | Share-based compensation | Net Income | Balance at June 30, 2025 | | :-------------------------------- | :---------------------- | :----------------------- | :--------- | :----------------------- | | Common Stock Issued (Shares) | 146,932,032 | - | - | 147,924,862 | | Common Stock Issued (Amount) | $147 | - | - | $148 | | Additional Paid-In Capital | $284,219 | $9,014 | - | $291,096 | | Accumulated Deficit | $(91,259) | - | $16,639 | $(74,620) | | Total Stockholders' Equity | $193,107 | $9,014 | $16,639 | $216,624 | - Total stockholders' equity increased from **$193.1 million** at December 31, 2024, to **$216.6 million** at June 30, 2025, driven by net income and share-based compensation[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (in thousands) | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :----------------------------- | :----------------------------- | | Operating Activities | $19,718 | $27,792 | | Investing Activities | $(1,293) | $(6,929) | | Financing Activities | $(3,972) | $(33,826) |\n| Net change in cash | $14,453 | $(12,963) | | Cash and cash equivalents, end of period | $118,869 | $69,037 | - Net cash provided by operating activities decreased to **$19.7 million** for the six months ended June 30, 2025, from **$27.8 million** in the prior year. Net cash used in investing activities significantly decreased due to lower acquisition payments. Net cash used in financing activities also decreased substantially, primarily due to the absence of large debt repayments seen in the prior year[23](index=23&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [1. Nature of Business](index=11&type=section&id=1.%20Nature%20of%20Business) - MiMedx Group, Inc. is a pioneer in healing solutions, focusing on wound care, burn, and surgical sectors with FDA-regulated products. The company's primary market is the United States, with an emerging international presence, including Japan[24](index=24&type=chunk)[25](index=25&type=chunk) [2. Significant Accounting Policies](index=11&type=section&id=2.%20Significant%20Accounting%20Policies) - The unaudited condensed consolidated financial statements are prepared in accordance with GAAP for interim financial information. Management's estimates are crucial, affecting reported amounts of assets, liabilities, and operations, with actual results potentially differing[27](index=27&type=chunk)[30](index=30&type=chunk) - The company is evaluating the impact of recently issued accounting standards, ASU 2023-09 (Income Taxes) and ASU 2024-04 (Expense Disaggregation Disclosures), which require additional disclosures and disaggregation of certain income statement expenses, respectively[31](index=31&type=chunk)[32](index=32&type=chunk) [3. Accounts Receivable, Net](index=12&type=section&id=3.%20Accounts%20Receivable,%20Net) Accounts Receivable, Net (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------ | :------------ | :---------------- | | Accounts receivable, gross | $73,172 | $58,960 | | Less: allowance for doubtful accounts | $(3,944) | $(3,132) | | Accounts receivable, net | $69,228 | $55,828 | - Accounts receivable, net, increased by **$13.4 million** from December 31, 2024, to June 30, 2025, with a corresponding increase in the allowance for doubtful accounts[34](index=34&type=chunk) [4. Inventory](index=12&type=section&id=4.%20Inventory) Inventory (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :------------- | :------------ | :---------------- | | Raw materials | $1,080 | $1,010 | | Work in process | $4,517 | $8,580 | | Finished goods | $19,293 | $14,217 | | Total Inventory | $24,890 | $23,807 | - Total inventory increased by approximately **$1.08 million** from December 31, 2024, to June 30, 2025, primarily due to a significant increase in finished goods, while work in process decreased[35](index=35&type=chunk) [5. Property and Equipment, Net](index=13&type=section&id=5.%20Property%20and%20Equipment,%20Net) Property and Equipment, Net (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :------------- | :------------ | :---------------- | | Property and equipment, gross | $27,823 | $27,266 | | Less: accumulated depreciation and amortization | $(22,433) | $(21,322) | | Property and equipment, net | $5,390 | $5,944 | - Net property and equipment decreased by **$0.554 million** from December 31, 2024, to June 30, 2025, primarily due to increased accumulated depreciation[36](index=36&type=chunk) [6. Intangible Assets, Net](index=13&type=section&id=6.%20Intangible%20Assets,%20Net) Intangible Assets, Net (in thousands) | (in thousands) | June 30, 2025 Net Carrying Amount | December 31, 2024 Net Carrying Amount | | :------------------------ | :-------------------------------- | :------------------------------------ | | Patents and know-how | $1,913 | $1,832 | | Licenses | $871 | $896 | | Customer and supplier relationships | $5,747 | $6,512 | | Tradenames and trademarks | $2,416 | $1,087 | | Total amortized intangible assets | $10,947 | $10,327 | | Unamortized intangible assets | $1,081 | $1,299 | | Total intangible assets | $12,028 | $11,626 | - Total intangible assets, net, increased by **$0.402 million** from December 31, 2024, to June 30, 2025. The company expects **$3.394 million** in amortization expense for the remainder of 2025[37](index=37&type=chunk)[38](index=38&type=chunk) [7. Accrued Expenses](index=14&type=section&id=7.%20Accrued%20Expenses) Accrued Expenses (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------ | :------------ | :---------------- | | Commissions to sales agents | $4,192 | $3,843 | | Accrued rebates | $1,728 | $1,223 | | Estimated sales returns | $1,767 | $1,990 | | Legal costs | $1,969 | $459 | | Accrued inventory receipts | $3,730 | $871 | | Total Accrued expenses | $15,105 | $9,012 | - Accrued expenses increased significantly by **$6.093 million** from December 31, 2024, to June 30, 2025, primarily driven by increases in legal costs and accrued inventory receipts[39](index=39&type=chunk) [8. Long Term Debt, Net](index=14&type=section&id=8.%20Long%20Term%20Debt,%20Net) - The company has a Citizens Credit Agreement, including a **$20.0 million** Term Loan Facility and a **$30.0 million** Revolving Credit Facility. As of June 30, 2025, **$18.5 million** principal is outstanding on the Term Loan Facility at a **6.7%** interest rate, with no outstanding borrowings on the Revolving Credit Facility[40](index=40&type=chunk)[41](index=41&type=chunk)[101](index=101&type=chunk) Long Term Debt, Net (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :------------- | :------------ | :---------------- | | Current portion of long term debt | $1,250 | $1,000 | | Long term debt, net | $17,211 | $17,830 | | Total Outstanding principal | $18,500 | $19,000 | - Interest expense for the Term Loan Facility was **$416 thousand** for the three months ended June 30, 2025, and **$838 thousand** for the six months ended June 30, 2025[43](index=43&type=chunk) [9. Net Income Per Common Share](index=15&type=section&id=9.%20Net%20Income%20Per%20Common%20Share) Net Income Per Common Share (in thousands, except share and per share amounts) | (in thousands, except share and per share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income from continuing operations | $9,618 | $17,621 | $16,639 | $26,682 | | Basic net income per common share | $0.07 | $0.12 | $0.11 | $0.18 | | Diluted net income per common share | $0.06 | $0.12 | $0.11 | $0.18 | - Basic and diluted net income per common share from continuing operations decreased significantly year-over-year for both the three and six months ended June 30, 2025, primarily due to lower net income[46](index=46&type=chunk)[47](index=47&type=chunk) [10. Income Taxes](index=16&type=section&id=10.%20Income%20Taxes) Effective Tax Rate | Effective Tax Rate | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :----------------- | :------------------------------- | :------------------------------- | | Continuing operations | 26.1% | 24.1% | | Effective Tax Rate | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------- | :----------------------------- | :----------------------------- | | Continuing operations | 23.0% | 22.9% | - The effective tax rates were favorably impacted by restricted stock vestings but unfavorably impacted by deduction limitations on executive officer compensation. The company is evaluating the impact of the recently enacted "One Big Beautiful Bill Act" on its tax liability, which includes changes to R&D capitalization, interest expense deductions, and accelerated depreciation[49](index=49&type=chunk)[50](index=50&type=chunk) [11. Supplemental Disclosure of Cash Flow and Non-cash Investing and Financing Activities](index=17&type=section&id=11.%20Supplemental%20Disclosure%20of%20Cash%20Flow%20and%20Non-cash%20Investing%20and%20Financing%20Activities) Supplemental Disclosure of Cash Flow and Non-cash Investing and Financing Activities (in thousands) | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :----------------------------- | :----------------------------- | | Cash paid for interest | $707 | $1,853 | | Cash paid for income taxes | $4,083 | $1,979 | | Non-cash activities: | | | | Issuance of shares pursuant to employee stock purchase plan | $848 | $797 | | Unpaid acquisition consideration in accrued expenses | $2,564 | — | | Fair value shares received in settlement of litigation | — | $9,300 | - Cash paid for interest decreased significantly in 2025, while cash paid for income taxes more than doubled. Non-cash activities in 2025 included **$2.564 million** in unpaid acquisition consideration[51](index=51&type=chunk) [12. Commitments and Contingencies](index=17&type=section&id=12.%20Commitments%20and%20Contingencies) - The company has a remaining obligation of **$2.4 million** in Profit Share Payments to TELA Bio, Inc. as of June 30, 2025, based on net sales of a xenograft product[52](index=52&type=chunk) - On June 30, 2025, MiMedx entered into a **$2.0 million** convertible note purchase agreement with Vaporox, Inc., funded on July 1, 2025[54](index=54&type=chunk) - The company is involved in ongoing litigation with the FDA regarding the classification of its AXIOFILL product, strongly disagreeing with the FDA's determination[56](index=56&type=chunk)[57](index=57&type=chunk) [13. Revenue](index=18&type=section&id=13.%20Revenue) Revenue by Product Category (in thousands) | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Wound | $64,476 | $57,547 | $120,549 | $114,595 | | Surgical | $34,129 | $29,660 | $66,261 | $57,320 | | Total | $98,605 | $87,207 | $186,810 | $171,915 | - Net sales increased by **13.1%** for the three months ended June 30, 2025, and by **8.7%** for the six months ended June 30, 2025. Wound product sales grew by **12.0%** (3 months) and **5.2%** (6 months), driven by newer products CELERA and EMERGE. Surgical product sales grew by **15.1%** (3 months) and **15.6%** (6 months), primarily from AMNIOFIX, AMNIOEFFECT, and HELIOGEN[59](index=59&type=chunk)[76](index=76&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) [14. Segment Information](index=18&type=section&id=14.%20Segment%20Information) - The company operates as a single operating segment, with the CEO serving as the Chief Operating Decision Maker (CODM). The CODM assesses performance using net income and adjusted EBITDA, evaluating actual results against budgets and forecasts to inform strategic investments[60](index=60&type=chunk)[61](index=61&type=chunk) Selling, General and Administrative Expenses (in thousands) | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Selling and marketing | $47,867 | $41,725 | $94,728 | $86,203 | | General and administrative | $16,284 | $13,676 | $29,392 | $24,327 | | Selling, general and administrative | $64,151 | $55,401 | $124,120 | $110,530 | [15. Acquisitions](index=19&type=section&id=15.%20Acquisitions) - During 2024 and the first six months of 2025, MiMedx acquired trademarks associated with CELERA and EMERGE, capitalizing payments as part of the acquired assets, including future contingent payments[65](index=65&type=chunk) [16. Discontinued Operations](index=19&type=section&id=16.%20Discontinued%20Operations) - In Q2 2023, the company disbanded its Regenerative Medicine segment and suspended its Knee Osteoarthritis clinical trial, shifting focus to its commercial pipeline. Material run-off operations ceased in Q4 2023, leading to classification as a discontinued operation[66](index=66&type=chunk)[67](index=67&type=chunk) Income from Discontinued Operations (in thousands) | (in thousands) | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | | :------------- | :------------------------------- | :----------------------------- | | Selling, general and administrative expense | $(4) | $(4) | | Research and development expense | — | $(200) | | Income from discontinued operations | $(4) | $(204) | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Analyzes MiMedx's Q2 and H1 2025 financial performance, covering sales, expenses, profitability, liquidity, capital, and regulatory impacts [Executive Summary](index=19&type=section&id=Executive%20Summary) - For Q2 2025, net sales reached **$99 million**, a **13%** increase year-over-year, with Wound products growing **12%** to **$64 million** and Surgical products growing **15%** to **$34 million**[69](index=69&type=chunk)[75](index=75&type=chunk) - GAAP net income for Q2 2025 was **$10 million**, with a **10%** net income margin. The cash balance increased to **$119 million**, up **$12 million** sequentially and **$50 million** year-over-year[75](index=75&type=chunk) - CMS proposed a consistent payment approach for skin substitutes at **$125.38 per square centimeter** across private office and HOPD settings, effective January 1, 2026, which could significantly impact the industry and MiMedx[70](index=70&type=chunk) [Overview](index=20&type=section&id=Overview) - MiMedx is a leader in healing solutions, providing products for wound care, burn, and surgical sectors, all regulated by the FDA and produced under Current Good Tissue Practices (CGTP) with terminal sterilization[71](index=71&type=chunk) [Results of Operations](index=20&type=section&id=Results%20of%20Operations) [Three Months Ended June 30, 2025 Compared to the Three Months Ended June 30, 2024](index=20&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20the%20Three%20Months%20Ended%20June%2030%2C%202024) Financial Performance for Three Months Ended June 30 (in thousands) | (in thousands) | 2025 | 2024 | $ Change | % Change | | :------------- | :---------- | :---------- | :---------- | :------- | | Net sales | $98,605 | $87,207 | $11,398 | 13.1 % | | Gross profit | $79,924 | $72,352 | $7,572 | 10.5 % | | Operating income | $12,370 | $23,450 | $(11,080) | (47.2)% | | Net income from continuing operations | $9,618 | $17,621 | $(8,003) | (45.4)% | - Net sales increased by **13.1%** to **$98.6 million**, driven by growth in both Wound (**12.0%**) and Surgical (**15.1%**) products. Gross profit margin decreased from **83.0%** to **81.1%** due to production variances, product mix, and amortization of acquired intangible assets[74](index=74&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk) - Selling, General and Administrative (SG&A) expenses increased by **15.8%** to **$64.2 million**, primarily due to higher sales commissions and increased legal and regulatory dispute costs. Research and Development (R&D) expenses rose by **9.7%** to **$3.3 million**, supporting the EPIEFFECT clinical trial and future product development[78](index=78&type=chunk)[79](index=79&type=chunk) - Operating income decreased by **47.2%** and net income from continuing operations decreased by **45.4%**, largely due to the absence of a **$9.7 million** investigation, restatement, and related benefit recognized in the prior year[73](index=73&type=chunk)[80](index=80&type=chunk) [Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024](index=22&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20the%20Six%20Months%20Ended%20June%2030%2C%202024) Financial Performance for Six Months Ended June 30 (in thousands) | (in thousands) | 2025 | 2024 | $ Change | % Change | | :------------- | :---------- | :---------- | :---------- | :------- | | Net sales | $186,810 | $171,915 | $14,895 | 8.7 % | | Gross profit | $151,571 | $144,074 | $7,497 | 5.2 % | | Operating income | $20,620 | $36,649 | $(16,029) | (43.7)% | | Net income from continuing operations | $16,639 | $26,682 | $(10,043) | (37.6)% | - Net sales increased by **8.7%** to **$186.8 million**, with Wound product sales up **5.2%** and Surgical product sales up **15.6%**. Gross profit margin decreased from **83.8%** to **81.1%** due to increased sales volume, production variances, product mix, and amortization of intangible assets[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk) - SG&A expenses increased by **12.3%** to **$124.1 million**, driven by higher sales commissions and increased legal/regulatory dispute costs. R&D expenses increased by **13.3%** to **$6.6 million**, supporting the EPIEFFECT clinical trial and pipeline development[88](index=88&type=chunk)[89](index=89&type=chunk) - Operating income decreased by **43.7%** and net income from continuing operations decreased by **37.6%**, primarily due to the absence of a **$9.4 million** investigation, restatement, and related benefit from the prior year[84](index=84&type=chunk)[90](index=90&type=chunk) - Interest income, net, improved significantly from an expense of **$1.7 million** in 2024 to income of **$1.2 million** in 2025, driven by decreased outstanding debt, lower interest rates, increased cash balances, and the absence of a **$1.4 million** loss on extinguishment of debt from the prior year[93](index=93&type=chunk) [Discussion of Cash Flows](index=24&type=section&id=Discussion%20of%20Cash%20Flows) - Net cash provided by operating activities from continuing operations decreased to **$19.7 million** for the six months ended June 30, 2025, from **$27.8 million** in the prior year, primarily due to greater expenses[95](index=95&type=chunk) - Net cash used for investing activities decreased significantly to **$1.3 million** from **$6.9 million**, mainly due to lower cash paid for acquisitions (**$0.7 million** in 2025 vs. **$5.0 million** in 2024)[96](index=96&type=chunk) - Net cash used for financing activities decreased to **$4.0 million** from **$33.8 million**, primarily because the prior year included a **$30.0 million** repayment of the Revolving Credit Facility, with 2025 activity mainly related to tax withholdings on restricted stock vestings[97](index=97&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, MiMedx had **$118.9 million** in cash and cash equivalents, **$220.9 million** in total current assets, and **$50.3 million** in total current liabilities, resulting in a strong current ratio of **4.4**[99](index=99&type=chunk) - The company has **$18.5 million** of long-term debt outstanding and **$75 million** available under its Revolving Credit Facility. Management believes existing cash, operating activities, and available credit will meet operational liquidity needs for the next twelve months[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk) [Citizens Credit Agreement](index=24&type=section&id=Citizens%20Credit%20Agreement) - The Citizens Credit Agreement, established in January 2024, includes a **$20 million** Term Loan Facility and a **$30 million** Revolving Credit Facility. As of June 30, 2025, **$18.5 million** principal is outstanding on the Term Loan Facility at **6.7%** interest, with no borrowings on the Revolving Credit Facility[101](index=101&type=chunk) - Borrowings bear interest at a rate per annum equal to the Alternate Base Rate or Term SOFR plus an applicable margin ranging from **1.25%** to **3.50%**[102](index=102&type=chunk) [Contractual Obligations](index=24&type=section&id=Contractual%20Obligations) - There were no significant changes to the company's contractual obligations during the six months ended June 30, 2025, compared to those disclosed in the 2024 Form 10-K[104](index=104&type=chunk) [Critical Accounting Estimates](index=25&type=section&id=Critical%20Accounting%20Estimates) - No new critical accounting estimates were applied in the preparation of this Form 10-Q; a summary of critical accounting estimates was previously provided in the 2024 Form 10-K[105](index=105&type=chunk) [Recent Accounting Pronouncements](index=25&type=section&id=Recent%20Accounting%20Pronouncements) - Information regarding the effect of recent accounting pronouncements is detailed in Note 2, Significant Accounting Policies, within the unaudited condensed consolidated financial statements[106](index=106&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to interest rate risks but does not hedge against them. There have been no material changes to market risk disclosures since the 2024 Form 10-K - The company is exposed to risks from changes in interest rates but does not engage in hedging activities to mitigate this risk[107](index=107&type=chunk) - No material changes in market risk have occurred since the disclosures in the 2024 Form 10-K[107](index=107&type=chunk) [Item 4. Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025. There were no material changes in internal control over financial reporting during the quarter - Management, with CEO and CFO participation, evaluated and concluded that disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025[108](index=108&type=chunk) - No material changes in internal control over financial reporting occurred during the fiscal quarter ended June 30, 2025[109](index=109&type=chunk) Part II – OTHER INFORMATION [Item 1. Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal claims and lawsuits arising in the ordinary course of business, some involving substantial amounts, with uncertain ultimate outcomes - The company is a party to numerous pending and threatened legal, regulatory, and governmental actions and proceedings, some involving substantial claims, with unpredictable outcomes[111](index=111&type=chunk) [Item 1A. Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors as previously disclosed in its 2024 Form 10-K - No material changes to the Company's risk factors have occurred since those included in its 2024 Form 10-K[112](index=112&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or use of proceeds to report during the period - No unregistered sales of equity securities or use of proceeds occurred during the reporting period[113](index=113&type=chunk) [Item 3. Defaults upon Senior Securities](index=26&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) This item is not applicable for the current reporting period - This item is not applicable[114](index=114&type=chunk) [Item 4. Mine Safety Disclosures](index=26&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable for the current reporting period - This item is not applicable[115](index=115&type=chunk) [Item 5. Other Information](index=26&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025 - No director or officer adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the three months ended June 30, 2025[116](index=116&type=chunk) [Item 6. Exhibits](index=26&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed or furnished with the Form 10-Q, including certifications from the CEO and CFO, and XBRL taxonomy documents Exhibits Filed with Form 10-Q | Exhibit Number | Description | | :------------- | :----------------------------------------------------------------------- | | 31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | | 31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | | 32.1 | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | | 32.2 | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | | 101.INS | XBRL Instance Document | | 101.SCH | XBRL Taxonomy Extension Schema Document | | 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | | 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | | 101.LAB | XBRL Taxonomy Extension Label Linkbase Document | | 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |

Core Insights - MiMedx Group, Inc. reported its highest quarterly net sales in history, reaching $99 million, a 13% increase year-over-year [1][3] - The company achieved a GAAP net income of $10 million and diluted earnings per share of $0.06 for the second quarter of 2025 [1][8] - Adjusted EBITDA for the quarter was $24 million, representing 25% of net sales [1][19] - The company raised its net sales growth expectations for 2025 to low double-digits [1][10] Financial Performance - Net sales for Q2 2025 were $99 million, up from $87 million in Q2 2024, driven by a 12% increase in wound product sales and a 15% increase in surgical product sales [3][4] - Gross profit for the quarter was $80 million, with a gross margin of 81%, down from 83% in the prior year due to production variances and product mix [4] - SG&A expenses rose to $64 million from $55 million year-over-year, primarily due to increased commissions and legal expenses [5] - R&D expenses remained stable at $3 million, focusing on ongoing product development [6] Income and Cash Position - Net income for Q2 2025 was $10 million, a decrease from $18 million in Q2 2024, which had benefited from a one-time settlement [8] - As of June 30, 2025, the company had cash and cash equivalents of $119 million, up from $104 million at the end of 2024 [9] Outlook and Strategic Initiatives - MiMedx expects net sales growth in the low double-digits for 2025, with an Adjusted EBITDA margin above 20% [10] - The company supports recent CMS proposals to reform reimbursement for skin substitutes, aiming for improved cost savings and patient care [2]

Core Insights - MiMedx Group, Inc. and Vaporox, Inc. have announced a collaboration for co-promotion and co-marketing of their wound care products, with MiMedx making an investment in Vaporox and obtaining exclusivity rights for potential acquisition discussions [1][2][3] Company Overview - MiMedx is a leader in wound care, focusing on chronic and hard-to-heal wounds, with a vision to be the leading global provider of healing solutions through innovation [5] - Vaporox has developed the Vaporous Hyperoxia Therapy device, which combines ultrasonic mist and concentrated oxygen to treat chronic wounds, receiving FDA clearance for nine types of wounds [2][4] Strategic Goals - The collaboration aims to diversify MiMedx's portfolio and enhance treatment options for clinicians dealing with chronic wounds, leveraging Vaporox's technology alongside MiMedx's placental allografts [3] - Vaporox anticipates that the partnership with MiMedx will accelerate market penetration and create a synergistic offering to reach more patients [3] Clinical Efficacy - Vaporox's VHT has shown wound healing rates exceeding 80% at 20 weeks in clinical studies when used with standard wound care, indicating strong efficacy [3]

MIMEDX is a pioneer and leader focused on helping humans heal. With more than a decade of helping clinicians manage chronic and other hard-to-heal wounds, MIMEDX is dedicated to providing a leading portfolio of products for applications in the wound care, burn, and surgical sectors of healthcare. The Company's vision is to be the leading global provider of healing solutions through relentless innovation to restore quality of life. For additional information, please visit www.mimedx.com. Contact: Matt Notari ...

Core Insights - The Centers for Medicare and Medicaid Services (CMS) proposed a new reimbursement mechanism for skin substitutes, moving from the Average Sales Price (ASP) methodology to a fixed price of $125.38 per square centimeter [2][3] - The skin substitute market has seen a significant increase in Medicare spending, rising from approximately $1.5 billion in 2022 to nearly $10 billion in 2024, highlighting the need for reimbursement reform to combat fraud, waste, and abuse [3] Company Positioning - MiMedx Group, Inc. supports the proposed reimbursement changes and believes that reform is necessary to restore rational market behavior and benefit stakeholders, taxpayers, and patients [2][3] - The company is well-positioned to thrive in an environment where product capabilities, backed by strong clinical evidence, influence selection and usage [3] Upcoming Developments - The Wasteful and Inappropriate Service Reduction (WISeR) model, Local Coverage Determinations (LCDs), and the Physician Fee Schedule (PFS) rules are set to be implemented on January 1, 2026 [3] - The Hospital Outpatient Prospective Payment System (OPPS) is also expected to be released in proposed form, with implementation slated for January 1, 2026 [4]