MiMedx Group (NasdaqCM:MDXG) Q4 2025 Earnings call February 25, 2026 04:30 PM ET Speaker7Good afternoon, and thank you for standing by. Welcome to the MiMedx fourth quarter and full year 2025 operating and financial results conference call. At this time, all participants are in listen-only mode. The question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Matt Notarianni, Head of Investor ...

Financial Data and Key Metrics Changes - The company reported Q1 2025 net sales of $88 million, representing a 4% year-over-year growth despite a tough comparison from Q1 2024, which had an 18% growth [8][19] - Adjusted gross profit margin was 84% for the quarter, while GAAP gross margin was 81%, down from 85% in the prior year [21][25] - Adjusted EBITDA was $17 million, or 20% of net sales, compared to $19 million, or 22% of net sales in the prior year [25][27] - The company ended the quarter with $106 million in cash, an increase of $2 million during the quarter [8][26] Business Line Data and Key Metrics Changes - Surgical sales grew by 16% to $32 million, driven by strong performance from AmnioFect and HelioGen [20] - Wound sales declined by 2% to $56 million, facing challenges due to Medicare reimbursement disruptions [20][12] - The Amneal branded products, particularly Amnealophenic, grew by 22% in Q1 [11] Market Data and Key Metrics Changes - The company faced ongoing disruptions in the private office and associated care settings due to the current Medicare reimbursement system [6][12] - Approximately 25% of the company's overall business has ASP exposure, making it manageable despite the challenges [46] Company Strategy and Development Direction - The company aims to innovate and diversify its product portfolio, focusing on developing unique product configurations to meet customer needs [10] - Strategic priorities include expanding the surgical market footprint, enhancing customer intimacy, and developing clinical evidence to support product use [15][18] - The company is actively pursuing opportunities for organic and inorganic growth to support business diversification [26] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment over the delay in Medicare reimbursement reforms but remains committed to advocating for necessary changes [29][32] - The company reiterated its full-year revenue growth outlook to be at least in the high single digits, with expectations for higher growth rates in the latter half of the year [31] - Long-term prospects remain positive, with expectations to reset top-line growth to low double digits post-reform [31][32] Other Important Information - The company has contingency plans in place to adapt to the current environment and maintain competitiveness [7][14] - Management emphasized the importance of generating cash flow, even during high cash burn periods [27] Q&A Session Summary Question: Adjusted gross profit margin expectations - Management acknowledged that the adjusted gross profit margin was 84.1% in Q1 and attributed future changes to product mix [35] Question: Progress on Equifax in Japan - Management indicated that growth in Japan is on track but remains relatively small in overall contribution [36] Question: Overall reimbursement landscape and confidence in future changes - Management expressed frustration over the lack of changes in the reimbursement landscape but remains hopeful for future reforms [40][46] Question: Shifting private office volumes to new products - Management stated that shifting volumes to higher-priced products is a necessary step to protect business but cautioned against expecting significant windfalls [48][52] Question: Surgical growth driven by HelioGen - Management noted that surgical growth was driven by better execution across the portfolio, with no specific new data driving volumes [53][55] Question: Preparing for a better market environment - Management highlighted ongoing efforts to expand product offerings and invest in commercial strength to prepare for future growth [58][61]