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]

Financial Data and Key Metrics Changes - The company reported a record quarterly revenue of $114 million, representing a year-over-year growth of 35% [5][22] - Adjusted EBITDA for the quarter was $35 million, or 31% of net sales, compared to $18 million, or 22% of net sales in the prior year [27] - The adjusted gross profit margin was 88%, an increase of approximately 540 basis points compared to the same quarter last year [23] Business Line Data and Key Metrics Changes - Wound sales reached $77 million, reflecting a 40% increase year-over-year, while surgical sales were $37 million, up 26% [22] - The surgical business grew by 26% in Q3, driven by strong performance from AMNIOFIX and AMNIOEFFECT [22][23] Market Data and Key Metrics Changes - The company has over half of the target patients enrolled in the EPIEFFECT randomized controlled trial, with favorable interim analysis results [6][8] - The company expects to end the year with a net cash balance of more than $150 million, having ended Q3 with $124 million in net cash [6][27] Company Strategy and Development Direction - The top strategic priority is to innovate and diversify the product portfolio, with recent launches including EPIEFFECT, HELIOGEN, CELERA, and EMERGE [8][9] - The company is focused on enhancing customer intimacy through improved interactions and the MiMedx Connect portal, which saw nearly 60% sequential sales growth for orders managed within it [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position post-Medicare reimbursement reform, anticipating that product performance will drive selection rather than profit potential [16][19] - The company raised its full-year 2025 revenue growth guidance from low teens to mid to high teens, expecting adjusted EBITDA margin to be at least in the mid-20% range [18][19] Other Important Information - The company generated $29 million in free cash flow during the quarter, a record for the company [27] - Management highlighted the importance of upcoming Medicare reimbursement reforms and expressed optimism about the potential for market share growth as competitors may exit the market [16][19] Q&A Session Summary Question: Guidance for the rest of the year regarding contributions from wound versus surgical - Management expects strong uptake in the surgical suite and continued healthy growth in the wound business, although Q4 comparisons may be tougher due to prior sales turnover [31][32] Question: Preparations for post-January 1 reforms - Management is advocating for a level playing field and believes that the proposed reforms will benefit the company, allowing it to outperform the market [35][36] Question: Cash generation and expectations for year-end cash balance - The company clarified that the $150 million guidance refers to net cash, with gross cash expected to be in the high $160 million range [37] Question: Volume growth in the wound business - Management refrained from providing specific volume growth figures, citing various factors affecting volume per square centimeter [40][41] Question: Feedback on suggestions made to CMS - Management indicated that they have not received public feedback on their suggestions but are working through third-party advisors to communicate with CMS [42][43] Question: Local Coverage Determinations and clinical data submission - Management expressed confidence in the strength of the evidence for EPIEFFECT and stated that all necessary steps for reimbursement submission have been completed [45][46]