Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $60.1 million, reflecting a 23.5% increase compared to Q3 2024 and a 6% sequential increase over Q2 2025 [5][18] - Gross profit for the quarter was $46 million, up from $36.4 million in Q3 2024, resulting in a gross margin of 76.6%, an increase from 74.9% in the same period last year [19] - Net income for the quarter was $0.7 million or $0.01 per share, compared to a net loss of $1.9 million or $0.04 per share in Q3 2024 [22] - Adjusted net income was $6.1 million or $0.12 per share, compared to $3.1 million or $0.07 per share in Q3 2024 [23] Business Line Data and Key Metrics Changes - Strong revenue growth was noted across all nerve repair target markets, including extremities, oromaxillofacial, head and neck, and breast [5][6] - The Avance Nerve Graft was identified as the primary growth driver, with significant adoption in various procedures [6] - Active breast ReSensation programs increased by 7% year-over-year, with 281 surgeons performing procedures in Q3 2025, a 20% increase from Q3 2024 [11] Market Data and Key Metrics Changes - Approximately 64% of revenue growth was driven by high-potential accounts, slightly below the target of 66% [7] - Coverage for nerve repair using synthetic conduits or allografts expanded to an estimated 18.1 million additional lives year-to-date, with commercial payer coverage exceeding 64% [15] Company Strategy and Development Direction - The company aims to optimize business models based on experience and maintain growth consistent with strategic plan guidance [5] - Continued focus on expanding presence in high-potential accounts to drive consistent customer creation and algorithm adoption [7] - The company is on track to complete a level one study protocol for implant-based neurotization and advance clinical research initiatives [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to complete the Biologics License Application (BLA) for Avance Nerve Graft by December 5, 2025, which is expected to secure market exclusivity [17] - The company anticipates that the BLA approval will enhance market development efforts and support coverage expansion [77] Other Important Information - The company raised its revenue growth guidance for 2025 to at least 19%, expecting revenue of at least $222.8 million [24] - Operating expenses increased to $44.1 million, but as a percentage of revenue, they decreased, indicating improved operating leverage [21] Q&A Session Summary Question: Insights on Q4 revenue expectations and case stock sales program impact - Management indicated that the $1.6 million revenue increase in Q3 was related to the transition from the case stock program and advised excluding this from Q4 models [28] Question: Comments on BLA labeling expectations - Management confirmed that discussions regarding labeling are ongoing, but no definitive insights were available [33] Question: Coverage expansion trajectory before BLA approval - The increase in commercially covered lives was attributed to refined data tracking, with ongoing engagement with national payers expected [38] Question: Future steps for targeting the prostate market - The company plans to evaluate outcomes from initial clinical trials before determining future investments in the prostate market [58] Question: Impact of BLA on market development efforts - Management noted that BLA approval would positively support market development but cautioned against expecting immediate widespread adoption [77]