Blade(US:BLDE)2025-11-10 14:00Financial Data and Key Metrics Changes - Revenue increased by 36.7% year-over-year to $49.3 million in Q3 2025, with a 29% increase excluding Keystone [11][12] - Medical segment-adjusted EBITDA margin rose to 15.1% in Q3 2025 from 12.5% in the first half of the year [12][13] - Free cash flow from continuing operations was approximately $2 million for the quarter [13] Business Line Data and Key Metrics Changes - Organ placement services revenue more than doubled year-over-year, indicating strong growth in this area [11] - Air logistics contributed significantly to organic revenue growth, with new and existing customers driving strong results [11][12] - Keystone's revenue increased over 40% year-over-year for the full month of September, despite only contributing $2.8 million for half of Q3 [12] Market Data and Key Metrics Changes - Industry-wide NRP adoption rates continued to increase, with transplants of organs undergoing NRP approximately doubling compared to the prior year [9][10] - Despite a seasonal decline in industry transplant volumes of approximately 6%, the company achieved a 3% sequential revenue increase [11] Company Strategy and Development Direction - The company has rebranded as Strata Critical Medical and shifted focus to healthcare, aiming for long-term growth and value creation [5] - The integration of Keystone Perfusion is expected to enhance operational efficiencies and cost savings for the transplant community [8][9] - The company plans to leverage local resources to reduce transportation costs and improve service delivery [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand seen in Q3, leading to an increase in 2025 revenue guidance to a range of $185 million-$195 million [16] - The company anticipates continued growth driven by new customer acquisitions and market share consolidation in a fragmented marketplace [22] - Management acknowledged the impact of seasonal factors on transplant volumes but emphasized the company's ability to grow through these challenges [39] Other Important Information - The company ended the quarter with no debt and approximately $76 million in cash and short-term investments [15] - The Joby transaction closed during the quarter, with cash proceeds of approximately $70 million from monetizing shares [15] Q&A Session Summary Question: Can you provide a disaggregation of where the growth came from in terms of revenue during Q3? - Management indicated that growth was driven by a mix of new customer acquisition and strength within existing customers, with new services contributing to the results [20][21] Question: Do you see the growth coming from similar directions in the future? - Management expects continued customer additions and market share consolidation, supported by favorable industry growth dynamics [22] Question: What should we expect in terms of fleet margin and maintenance impact for the remainder of the year? - Management noted that scheduled maintenance events have decreased and margins are expected to improve sequentially [23] Question: How many individual customers are being served now with the Keystone acquisition? - The company serves almost 250 different customers across cardiac care and transplant businesses, providing geographic diversity [29] Question: Is there any customer that constitutes 5% or more of revenues? - Management stated that the business is diversified, and they do not break out customer contributions by business line [30] Question: Are you evening out the revenue sides between air and ground logistics? - Air remains the larger part of the business, but the Keystone acquisition provides opportunities for ground logistics growth [32] Question: Will you break out logistics versus perfusionist side in the future? - Management indicated that a pro forma business mix will be provided in the investor deck, reflecting the expected future mix [33]