MiMedx(US:MDXG)2025-10-29 20:07Financial Performance - MIMEDX reported third quarter 2025 net sales of $114 million, a 35% increase year-over-year from $84 million in Q3 2024[2] - Net income for Q3 2025 was $17 million, compared to $8 million in Q3 2024, resulting in diluted earnings per share of $0.11[7] - Adjusted net income for the nine months ended September 30, 2025, was $46,838,000, compared to $31,604,000 for the same period in 2024, reflecting a 48% increase[29] - Adjusted earnings per share for the nine months ended September 30, 2025, was $0.31, compared to $0.21 in 2024[33] - Net cash flows provided by operating activities for the nine months ended September 30, 2025, were $49,047, slightly up from $47,416 in 2024[36] Sales Growth - Wound product sales grew by 40% year-over-year, driven by newer products CELERA™ and EMERGE™, while Surgical product sales increased by 26%[2] - Wound product category sales for the nine months ended September 30, 2025, were $197,647, up from $169,647 in 2024[37] - Surgical product category sales for the same period increased to $102,888 from $86,325 in 2024[37] - MIMEDX raised its 2025 net sales growth expectations to the mid-to-high teens percentage range compared to 2024[9] Profitability Metrics - Gross profit for Q3 2025 was $95 million, with a gross margin of 84%, up from 82% in the prior year[4] - Adjusted EBITDA for Q3 2025 was $34,950,000, with an adjusted EBITDA margin of 30.7%, up from $18,183,000 and 21.6% in Q3 2024[26] - The company anticipates an adjusted EBITDA margin of at least the mid-20% range for the full year 2025[9] - The gross profit margin for Q3 2025 was reported at 83.5%, with an adjusted gross profit margin of 87.6%[30] - Gross profit for the nine months ended September 30, 2025, was $246,577, representing a gross profit margin of 82.0%[31] - Non-GAAP net income for the same period was $46,830, with an adjusted gross profit margin of 85.3%[31] Expenses - Operating expenses increased to $69 million in Q3 2025 from $54 million in Q3 2024, primarily due to higher commissions[5] - Research and development expenses for Q3 2025 were $4 million, reflecting ongoing investments in product development[6] - Total non-GAAP adjustments for Q3 2025 included share-based compensation of $4,920,000 and strategic legal and regulatory expenses of $2,515,000[26] - The company incurred $9,659 in amortization of acquired intangible assets during the nine months ended September 30, 2025[31] - Amortization of acquired intangible assets for Q3 2025 was $4,615,000, significantly higher than $383,000 in Q3 2024[29] - Reorganization expenses recorded in Q3 2025 amounted to $826,000, while there were no such expenses in Q3 2024[26] Cash Position - As of September 30, 2025, MIMEDX had cash and cash equivalents of $142 million, up from $104 million at the end of 2024[8] - Free cash flow for the nine months ended September 30, 2025, was $48,299, compared to $45,996 for the same period in 2024[36] Future Outlook - MIMEDX is preparing for various scenarios regarding the 2026 reimbursement rules from CMS, which are expected to stabilize the industry[1]