Financial Performance - The company achieved net revenue of $103.1 million for the full year 2025, marking a 19% year-over-year growth and exceeding $100 million for the first time in its history [4] - Gross margins expanded by approximately 200 basis points to 93% for the full year 2025, with a significant reduction in net loss from continuing operations by 80% to $1.5 million [5] - Adjusted EBITDA improved by 86% to $17 million for the full year 2025, and cash provided by operations was $6.8 million compared to cash used in operations of $24,000 in 2024 [5][26] Business Line Performance - In Q4 2025, net revenue was $27.5 million, representing a 5% year-over-year growth, primarily driven by sales of soft tissue products [7] - Excluding $1.8 million of BIASURGE sales from the previous year, Q4 2025 net revenue increased by 13% year-over-year [8] - The company ended 2025 with over 450 contracted distributors, up from over 350 at the end of 2024, indicating significant growth in its distributor network [9] Market Performance - The company successfully sold into over 1,450 healthcare facilities by the end of 2025, up from over 1,300 in 2024, with products contracted or approved for sale in over 4,000 facilities [10] - The surgeon customer base saw strong year-over-year growth, with ongoing efforts to penetrate existing facilities further [11] Company Strategy and Industry Competition - The company is focused on the surgical market, having ceased operations in the Tissue Health Plus segment, and aims to be a leaner, pure-play surgical company [12][13] - The BIASURGE product received an Innovative Technology contract from Vizient, providing access to approximately 1,800 healthcare facilities, which is expected to significantly enhance growth opportunities [15] - The company is committed to expanding its IP portfolio and has made progress in securing patent applications for its products [18] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning as a focused surgical company with a strong commercial strategy and significant growth potential in 2026 [30][31] - The company anticipates full-year 2026 net revenue to range from $116 million to $121 million, representing growth of approximately 13% to 17% compared to 2025 [27] Other Important Information - The company is investing in its field sales team and R&D initiatives to support future growth, with a focus on enhancing its surgical product portfolio [32][33] - The OsStic product is expected to be introduced to the U.S. market in Q1 2027, representing a significant opportunity in the bone fusion market [19][20] Q&A Session Summary Question: Growth attribution to BIASURGE following the Vizient contract - Management acknowledged the significance of the Vizient contract and indicated that while it will take time to educate facilities, it provides a strong growth runway for 2026 and beyond [37][38] Question: Impact of CellerateRX growth and upcoming studies - Management emphasized the importance of clinical evidence for CellerateRX and expressed confidence that the economic study will enhance relationships with hospitals, positively impacting future numbers [39][40][41]

Financial Performance - The company achieved net revenue of $103.1 million for the full year 2025, marking a 19% year-over-year growth and exceeding $100 million for the first time in its history [4] - Gross margins expanded by approximately 200 basis points to 93% for the full year 2025, with a significant reduction in net loss from continuing operations by 80% to $1.5 million [5] - Adjusted EBITDA improved by 86% to $17 million for the full year 2025, and cash provided by operations was $6.8 million compared to cash used in operations of $24,000 in 2024 [5][26] Business Line Performance - In Q4 2025, net revenue was $27.5 million, representing a 5% year-over-year growth, primarily driven by sales of soft tissue products [6] - Excluding $1.8 million of BIASURGE sales from the previous year, Q4 2025 net revenue increased by 13% year-over-year [8] - The company ended 2025 with over 450 contracted distributors, up from over 350 at the end of 2024, indicating significant growth in its distributor network [9] Market Performance - The company successfully sold into over 1,450 healthcare facilities by the end of 2025, up from over 1,300 in 2024, with products contracted or approved for sale in over 4,000 facilities [10] - The surgeon customer base saw strong year-over-year growth, with new users added across various specialties, although penetration within existing facilities remains low [11] Strategic Direction - The company is focused on the surgical market, having ceased operations of the Tissue Health Plus segment, and aims to bring innovative products to the operating room [12][13] - The BIASURGE product received an Innovative Technology contract from Vizient, providing access to approximately 1,800 healthcare facilities [15] - The company plans to introduce the OsStic synthetic injectable bone bioadhesive to the U.S. market in Q1 2027, which is expected to be a significant addition to its product portfolio [19][20] Management Commentary - Management expressed confidence in the company's positioning as a focused, pure-play surgical company with a commitment to driving growth through its commercial strategy [30][32] - The company anticipates full-year 2026 net revenue to range from $116 million to $121 million, representing a growth of approximately 13%-17% compared to 2025 [27] - Management highlighted the importance of clinical evidence and economic studies in strengthening relationships with healthcare facilities and driving product adoption [41][42] Other Important Information - The company is investing in its field sales team and R&D initiatives to support growth and enhance its competitive position in the surgical market [33][34] - The company has made significant progress in expanding its intellectual property portfolio, converting provisional patent applications into non-provisional filings [18] Q&A Session Summary Question: Impact of Vizient contract on growth - Management acknowledged the significance of the Vizient contract and indicated that it would take time to educate facilities, but it provides a strong growth opportunity for 2026 [39][40] Question: CellerateRX growth and reimbursement - Management emphasized the importance of clinical evidence for CellerateRX and expressed confidence that the economic study would enhance relationships with facilities and positively impact growth [41][42]

Financial Performance - The company achieved net revenue of $103.1 million for the full year 2025, marking a 19% year-over-year growth and exceeding $100 million for the first time in its history [4] - Gross margins expanded by approximately 200 basis points to 93% for the full year 2025, with a significant reduction in net loss from continuing operations by 80% to $1.5 million [5] - Adjusted EBITDA improved by 86% to $17 million for the full year 2025, and cash provided by operations was $6.8 million compared to cash used in operations of $24,000 in 2024 [5][26] Fourth Quarter Performance - In Q4 2025, net revenue was $27.5 million, representing a 5% year-over-year growth, with a 13% increase when excluding $1.8 million of BIASURGE sales from Q4 2024 [7][8] - Gross profit for Q4 increased by $1.6 million or 7% to $25.7 million, with gross margin at 93% [23][24] - Operating income for Q4 was $1.1 million, down from $2.3 million last year, primarily due to a non-cash impairment charge [24][25] Business Lines and Market Data - The company focused on three key commercial initiatives: strengthening relationships with independent distributors, selling into new healthcare facilities, and expanding within existing facilities [8][10] - The distributor network grew to over 450 contracted distributors by the end of 2025, up from over 350 in 2024 [9] - The company successfully sold into over 1,450 healthcare facilities by the end of 2025, compared to over 1,300 in 2024 [10] Strategic Direction and Industry Competition - The company is transitioning to a pure-play surgical company, focusing exclusively on the surgical market and ceasing operations of the Tissue Health Plus segment [12][21] - The strategic priorities for 2026 include penetrating the surgical wound market, targeted investments in the surgical product portfolio, and bringing the OsStic product to market [31][34] - The company aims to leverage its differentiated products to address a multi-billion-dollar annual opportunity in the surgical market [30] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning as it enters 2026, emphasizing the strength of its commercial model and the potential for continued growth [30][31] - The company anticipates net revenue for 2026 to range from $116 million to $121 million, representing growth of approximately 13% to 17% compared to 2025 [27][29] - Management highlighted the importance of clinical evidence and economic studies in supporting product growth and reimbursement opportunities [39][40] Other Important Information - The company secured an Innovative Technology contract from Vizient for its BIASURGE product, providing access to approximately 1,800 healthcare facilities [15] - Significant progress was made in expanding the intellectual property portfolio, with multiple patent applications submitted [18] - The company is on track to introduce the OsStic synthetic injectable bone bioadhesive to the U.S. market in Q1 2027 [19][20] Q&A Session Summary Question: Growth attribution to the Vizient contract for BIASURGE - Management acknowledged the significance of the Vizient contract and indicated that it would take time to educate facilities, but it provides a strong growth runway for 2026 and beyond [37][38] Question: Impact of new studies on CellerateRX growth - Management emphasized the importance of clinical and economic evidence for CellerateRX, stating that it strengthens relationships with hospitals and is expected to positively impact future numbers [39][41]

Financial Performance - The company achieved net revenue of $103.1 million for the full year 2025, marking a 19% year-over-year growth and exceeding $100 million for the first time in its history [4] - Gross margins expanded by approximately 200 basis points to 93% for the full year 2025, with a significant reduction in net loss from continuing operations by 80% to $1.5 million [5] - Adjusted EBITDA improved by 86% to $17 million for the full year 2025, and cash provided by operations was $6.8 million compared to cash used in operations of $24,000 in 2024 [5][26] Quarterly Performance - In Q4 2025, net revenue was $27.5 million, representing a 5% year-over-year growth, and a 13% increase when excluding $1.8 million of BIASURGE sales from Q4 2024 [6][8] - Gross profit for Q4 increased by $1.6 million or 7% to $25.7 million, with gross margin at 93% [23][24] - Operating income for Q4 was $1.1 million, down from $2.3 million last year, but increased to $2.9 million when excluding a non-cash impairment charge [24][25] Business Lines and Market Data - The growth in net revenue was primarily driven by sales of soft tissue products, with modest contributions from bone fusion products [6][8] - The company ended 2025 with over 450 contracted distributors, up from over 350 at the end of 2024, indicating a significant expansion of its distributor network [9] - The company achieved its target of selling into over 1,450 healthcare facilities by the end of 2025, compared to over 1,300 in 2024 [10] Company Strategy and Industry Competition - The company is focused on the surgical market, having ceased operations of the Tissue Health Plus segment, and aims to be a leaner, pure-play surgical company [12][13] - Strategic priorities for 2026 include penetrating the surgical wound market, investing in the field sales team, and enhancing R&D initiatives [32][33] - The company is preparing for the U.S. commercialization of OsStic, a synthetic injectable bone bioadhesive, expected in Q1 2027, which is anticipated to be a significant addition to its product portfolio [19][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning as a focused surgical company with a strong commercial model and significant growth opportunities in the surgical market [31][36] - The company reaffirmed its full year 2026 net revenue guidance of $116 million to $121 million, representing a growth of approximately 13% to 17% compared to 2025 [27][30] Other Important Information - The company has made progress in expanding its intellectual property portfolio, converting 11 provisional patent applications into non-provisional filings [18] - Clinical studies supporting the efficacy of BIASURGE and ALLOCYTE Plus were highlighted, showcasing their effectiveness in preventing surgical site infections and promoting bone healing [16][17] Q&A Session Summary Question: Impact of Vizient contract on growth - Management acknowledged the significance of the Vizient contract and indicated that it would take time to educate facilities, but it provides a strong growth runway for 2026 and beyond [39][40] Question: CellerateRX growth and reimbursement - Management emphasized the importance of clinical evidence for CellerateRX and expressed confidence that the economic study would enhance relationships with hospitals and positively impact future numbers [41][42]

Financial Performance - For the full year 2025, the company achieved net revenue of $103.1 million, marking a 19% year-over-year growth and exceeding $100 million for the first time in its history [4] - Gross margins expanded by approximately 200 basis points to 93% for the full year 2025, with a significant reduction in net loss from continuing operations by 80% to $1.5 million [5] - The company generated $6.8 million of cash from operations in 2025, a substantial improvement from $24,000 used in operations in 2024 [5][25] Quarterly Performance - In Q4 2025, net revenue was $27.5 million, reflecting a 5% year-over-year growth, and a 13% increase when excluding $1.8 million of BIASURGE sales from Q4 2024 [6][7] - Gross profit for Q4 increased by $1.6 million or 7% to $25.7 million, with gross margin rising to 93% [22][23] - Adjusted EBITDA for Q4 was $4.7 million, compared to $4.1 million in the previous year [24] Business Lines and Market Data - The growth in net revenue was primarily driven by sales of soft tissue products, with contributions from bone fusion products [6] - The company ended 2025 with over 450 contracted distributors, up from over 350 at the end of 2024, indicating a significant expansion of its distributor network [9] - The company achieved its target of selling into over 1,450 healthcare facilities by the end of 2025, compared to over 1,300 in 2024 [10] Strategic Direction and Industry Competition - The company is focusing exclusively on the surgical market, having ceased operations in the Tissue Health Plus segment, which is now classified as discontinued operations [12][13] - The strategic priorities for 2026 include penetrating the surgical wound market, investing in the sales team and R&D, and bringing the OsStic product to market [31][34] - The company aims to leverage its differentiated products to address a multi-billion-dollar annual opportunity in the surgical market [30] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning as a focused surgical company, emphasizing the importance of clinical evidence and economic studies to support product adoption [39][40] - The company anticipates net revenue for 2026 to range from $116 million to $121 million, representing growth of approximately 13% to 17% compared to 2025 [26][29] Other Important Information - The company secured an Innovative Technology contract from Vizient for its BIASURGE product, which will provide access to approximately 1,800 healthcare facilities [15] - The R&D team is focused on expanding the IP portfolio and has converted 11 provisional patent applications into non-provisional filings [18] Q&A Session Summary Question: Growth attribution to the Vizient contract for BIASURGE - Management acknowledged the significance of the Vizient contract and indicated that it would take time to educate facilities, but it provides a strong growth runway for 2026 and beyond [37][38] Question: Impact of cost-effectiveness studies on CellerateRX growth - Management emphasized the importance of clinical and economic evidence for CellerateRX, stating that it strengthens relationships within hospitals and is expected to positively impact future numbers [39][40]

Financial Data and Key Metrics Changes - In Q3 2025, the company achieved net revenue of $26.3 million, representing a 22% year-over-year growth, primarily driven by sales of soft tissue repair products [11][12] - Gross profit increased by $4.8 million, or 24%, to $24.5 million, with gross margin rising approximately 200 basis points to 93% of net revenue [21][22] - Net income from continuing operations was $800,000, or $0.09 per diluted share, compared to a net loss of $200,000, or $0.02 per diluted share in the previous year [23] Business Line Data and Key Metrics Changes - Sales of soft tissue repair products increased by 24% year-over-year to $23.4 million, significantly contributing to overall revenue growth [11][12] - The company expanded its network of independent distributors from over 300 to more than 400 in the last 12 months, enhancing its market reach [13][14] Market Data and Key Metrics Changes - The company sold products into more than 1,400 healthcare facilities over the last 12 months, up from over 1,200 in the prior year, indicating a significant expansion in customer base [14] - The products are approved or contracted for sale in over 4,000 facilities, suggesting substantial future growth potential [15] Company Strategy and Development Direction - The company announced the discontinuation of the Tissue Health Plus (THP) segment to focus resources on its core surgical business, aiming to enhance operational efficiency and long-term growth [9][10][11] - The strategic realignment is intended to capitalize on strengths in the surgical market and improve clinical outcomes while reducing healthcare expenditures [11][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve strong revenue growth and profitability, emphasizing the effectiveness of their commercial strategy and the potential for further market penetration [26][27] - The company anticipates total cash investment related to THP will range from $5.5 million to $6.5 million in the second half of 2025, with no material cash spend expected after 2025 [10][25] Other Important Information - The company has made progress in expanding its portfolio of clinical evidence, with two studies published in peer-reviewed journals highlighting the efficacy of CellerateRX Surgical in complex surgical procedures [16][17] - The partnership with Biomimetic Innovations Limited for the OSTIC product is progressing well, with expectations for a U.S. commercial launch in Q1 2027 [18][19] Q&A Session Summary Question: Can you elaborate on initiatives to drive further penetration within existing facilities? - Management highlighted efforts to expand into new specialties and the importance of scientific and clinical evidence in supporting product value [28][29] Question: Should we expect cash savings outside of THP and leverage on sales and marketing? - Management indicated that the current model is working well, with flat headcount and evidence of operating leverage on the EBITDA line [30][31] Question: What are the expectations for growth and margins going forward? - Management expressed confidence in strong performance for the upcoming quarter, despite a significant growth quarter in the previous year [32][33] Question: Why was a strategic partner not considered earlier for THP? - Management explained that the pursuit of a strategic partner began in early 2024, but ultimately did not yield results, leading to the decision to discontinue THP [34][35] Question: What is the trend of total operating expenses following the discontinuation of THP? - Management refrained from providing forward-looking guidance but suggested that historical data could help model future trends [36]