Financial Data and Key Metrics Changes - In Q4 2025, the company achieved record net sales of $118 million, representing a year-over-year growth of 27% [6][22] - The adjusted EBITDA for Q4 was $29 million, or 25% of net sales, compared to $20 million, or 21% of net sales in the prior year [26] - The net cash balance at year-end reached nearly $150 million, an increase of $63 million from the start of 2025 [4][29] Business Line Data and Key Metrics Changes - Wound care sales in Q4 were $79 million, up 28% year-over-year, while surgical sales were $39 million, reflecting a 25% increase [22] - The surgical business grew by 20% for the full year 2025, benefiting from investments made in the segment [5][12] Market Data and Key Metrics Changes - The wound care market is undergoing disruption due to changes in Medicare reimbursement rates, which went into effect on January 1st [4][10] - Claims processing has slowed in states under the WISeR model, affecting market dynamics and provider operations [9][10] Company Strategy and Development Direction - The company aims to innovate and diversify its product portfolio in both wound care and surgical segments, with a focus on achieving a balanced business mix [8][30] - A share repurchase program has been authorized, allowing the company to buy back up to $100 million in stock over the next two years [8][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the wound care market despite current disruptions, citing the company's competitive position to thrive post-reimbursement changes [10][12] - The guidance for full-year 2026 revenue is projected to be between $340 million and $360 million, with expectations for sequential growth throughout the year [19][56] Other Important Information - The company is nearing full enrollment for its EPIEFFECT randomized control trial, with results expected soon [7][11] - The company has launched new products, including AMNIOFIX Thyroid Shield, aimed at enhancing surgical outcomes [14][16] Q&A Session Summary Question: Guidance in a tough environment and market adjustments - Management anticipated market disruptions and noted ongoing adjustments in response to new reimbursement rules [34][35] Question: Sales force turnover and market outlook - Management is monitoring sales force dynamics and is flexible in adjusting resources based on market conditions [38] Question: Volume perspective in Q1 and market stabilization - A significant drop-off in volume was observed from Q4 to Q1, with expectations for recovery as the year progresses [43][48] Question: Revenue composition between wound and surgical - The revenue split is expected to be approximately 50/50 between surgical and wound care, with surgical growth anticipated to accelerate [54][56] Question: Commercial investments in surgical - The company has increased dedicated sales resources in the surgical business by about 50% over the past few years and plans to continue investing [59][60]

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved record net sales of $118 million, representing a 27% year-over-year growth [6][22] - Adjusted EBITDA for the quarter was $29 million, or 25% of net sales, compared to $20 million, or 21% of net sales in the prior year [27] - The company ended the year with a net cash balance of $148 million, an increase of $24 million in the quarter and $63 million higher than the start of 2025 [5][28] Business Line Data and Key Metrics Changes - Wound care sales in Q4 2025 were $79 million, up 28% year-over-year, while surgical sales were $39 million, reflecting a 25% increase [22] - The surgical business grew 20% for the full year 2025, benefiting from investments made in the segment [6][12] Market Data and Key Metrics Changes - The wound care market is undergoing disruption due to changes in Medicare reimbursement rates, which went into effect on January 1st [5][10] - Claims processing has slowed in states under the WISeR model, affecting the overall market dynamics [9] Company Strategy and Development Direction - The company aims to innovate and diversify its product portfolio in both wound care and surgical businesses, with a focus on achieving higher growth in surgical products [8][12] - A share repurchase program has been authorized, allowing the company to buy back up to $100 million in stock over the next two years [8][20] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the wound care market despite near-term disruptions, citing the company's competitive position to thrive post-reimbursement changes [10][12] - Guidance for full-year 2026 revenue is projected to be between $340 million and $360 million, with expectations for sequential growth throughout the year [19][56] Other Important Information - The company is nearing full enrollment for its EPIEFFECT randomized control trial, with results expected soon [7][11] - The company has launched new products, including AMNIOFIX Thyroid Shield, aimed at enhancing surgical outcomes [12][16] Q&A Session Summary Question: Market adjustments and guidance - Management anticipated market disruptions due to new reimbursement rules and noted ongoing price adjustments and product dumping [34][36] Question: Volume perspective in Q1 - A significant drop-off in volume was observed from Q4 to Q1, with expectations for recovery as the year progresses [43][44] Question: Revenue composition for 2026 - The revenue split between surgical and wound care is expected to be approximately 50/50, with surgical growth anticipated to accelerate in the second half of the year [53][56]