MiMedx(MDXG) - 2025 Q1 - Quarterly Results

First Quarter 2025 Operating and Financial Results This section details MIMEDX's Q1 2025 financial performance, strategic highlights, and future outlook Q1 2025 Highlights & CEO Commentary MIMEDX reported solid Q1 2025 results with 4% net sales growth and 20% Adjusted EBITDA margin, driven by Surgical products and new product introductions Q1 2025 Key Financial Metrics | Metric | Q1 2025 | YoY Change | | :--- | :--- | :--- | | Net Sales | $88 million | +4% | | GAAP Net Income | $7 million | - | | GAAP EPS | $0.05 | - | | Adjusted EBITDA | $17 million | - | | Adjusted EBITDA Margin | 20% | - | - Surgical products recorded double-digit growth, unlocking sizable market opportunities through a growing body of clinical evidence[2] - The company plans to mitigate the impact of delayed LCDs by introducing new products, including the recently added CELERA™, and pursuing both organic and inorganic pipeline additions[2] Detailed Financial Performance Q1 2025 net sales increased 4% to $88 million, driven by Surgical products, despite a gross margin decline and higher operating expenses Q1 2025 vs Q1 2024 Performance | Metric | Q1 2025 ($M) | Q1 2024 ($M) | | :--- | :--- | :--- | | Net Sales | $88.0M | $85.0M | | Gross Profit | $72.0M | $72.0M | | Gross Margin | 81% | 85% | | SG&A Expenses | $60.0M | $55.0M | | Net Income | $7.0M | $9.0M | - The 4% net sales growth was primarily driven by a 16% increase in Surgical products, while Wound products saw a 2% decline[3] - The increase in SG&A expenses was attributed to higher sales commissions, salary and benefit costs, and incremental legal and regulatory dispute expenses[6] - Cash and cash equivalents increased to $106 million as of March 31, 2025, from $104 million at the end of 2024[8] Financial Outlook MIMEDX reaffirms 2025 guidance for high single-digit net sales growth and over 20% Adjusted EBITDA margin, targeting long-term low double-digit growth - 2025 Outlook: Net sales growth is expected to be at least in the high single-digits, with an Adjusted EBITDA margin above 20%[9] - Longer-Term Outlook: The company targets annual net sales growth in the low double-digits and an Adjusted EBITDA margin exceeding 20%[9] Unaudited Financial Statements This section presents the company's condensed consolidated balance sheets, statements of operations, and cash flows for Q1 2025 Condensed Consolidated Balance Sheets The balance sheet as of March 31, 2025, shows total assets of $270.4 million and total liabilities of $67.6 million, reflecting stronger equity Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $106,431 | $104,416 | | Total current assets | $200,112 | $191,886 | | Total assets | $270,420 | $263,915 | | Total liabilities | $67,644 | $70,808 | | Total stockholders' equity | $202,776 | $193,107 | Condensed Consolidated Statements of Operations Q1 2025 net sales increased 4.1% to $88.2 million, but higher operating expenses led to a decrease in net income to $7.0 million Statement of Operations Highlights (in thousands, except per share data) | Account | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net sales | $88,205 | $84,709 | | Gross profit | $71,647 | $71,722 | | Operating income | $8,251 | $13,198 | | Net income | $7,023 | $9,261 | | Diluted net income per common share | $0.05 | $0.06 | Condensed Consolidated Statements of Cash Flows Net cash from operating activities was $5.3 million in Q1 2025, contributing to a $2.0 million net increase in cash for the quarter Cash Flow Summary (in thousands) | Activity | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net cash from operating activities | $5,299 | $5,978 | | Net cash used in investing activities | ($406) | ($6,024) | | Net cash used in financing activities | ($2,878) | ($33,467) | | Net change in cash | $2,015 | ($33,513) | Reconciliation of Non-GAAP Measures This section provides reconciliations for Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, Free Cash Flow, and net sales by product category Adjusted EBITDA Q1 2025 Adjusted EBITDA was $17.2 million (19.5% margin), reflecting a decrease from Q1 2024 after non-GAAP adjustments Adjusted EBITDA Reconciliation (in thousands) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net Income | $7,023 | $9,261 | | Non-GAAP Adjustments | $10,198 | $9,404 | | Adjusted EBITDA | $17,221 | $18,665 | | Adjusted EBITDA margin | 19.5% | 22.0% | Adjusted Net Income and Adjusted EPS Q1 2025 Adjusted Net Income was $9.6 million and Adjusted EPS was $0.06, reflecting adjustments for non-recurring items Adjusted Net Income & EPS Reconciliation | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP Net Income | $7.0M | $9.3M | | Adjusted Net Income | $9.6M | $10.0M | | GAAP Diluted EPS | $0.05 | $0.06 | | Adjusted EPS | $0.06 | $0.07 | Free Cash Flow Q1 2025 Free Cash Flow increased slightly to $4.9 million, representing cash generated beyond capital investments Free Cash Flow Reconciliation (in thousands) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net cash flows provided by operating activities | $5,299 | $5,978 | | Capital expenditures | ($377) | ($1,144) | | Free Cash Flow | $4,922 | $4,834 | Net Sales by Product Category Q1 2025 net sales of $88.2 million were driven by 16.2% growth in Surgical products, offsetting a 1.7% decline in Wound products Net Sales by Product Category (in thousands) | Category | Q1 2025 (in thousands) | Q1 2024 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Wound | $56,073 | $57,049 | -1.7% | | Surgical | $32,132 | $27,660 | +16.2% | | Total Net Sales | $88,205 | $84,709 | +4.1% |