MIMEDX Announces First Quarter 2026 Operating & Financial Results
Rhea-AI Summary
MIMEDX (Nasdaq: MDXG) reported Q1 2026 net sales of $59 million, down 33% year-over-year, driven by a 60% decline in Wound sales while Surgical sales rose 13%.
The company cut 2026 net sales guidance to $260–$290 million and now expects ~breakeven Adjusted EBITDA for 2026; cash was $160 million at March 31, 2026.
AI-generated analysis. Not financial advice.
Positive
- Surgical sales +13% year-over-year
- Cash and cash equivalents of $160 million at March 31, 2026
- Planned $40 million in annualized cost savings to restore profitability
Negative
- Total net sales down 33% to $59 million in Q1 2026
- Wound sales declined 60% year-over-year due to new Medicare reimbursement rules
- Gross margin fell to 71% from 81% year-over-year
News Market Reaction – MDXG
On the day this news was published, MDXG gained 8.91%, reflecting a notable positive market reaction. Argus tracked a peak move of +7.3% during that session. Argus tracked a trough of -14.2% from its starting point during tracking. Our momentum scanner triggered 21 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $41M to the company's valuation, bringing the market cap to $503.64M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
MDXG was up 1.8% pre‑release while close peers were mixed: MRVI -2.47%, MAZE -1.96%, XERS -0.49%, ATNF +2.92%, NTLA +2.96%. This points to company‑specific dynamics rather than a broad sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 25 | Q4 & FY 2025 earnings | Positive | -1.3% | Record 2025 results, strong margins, new $100M buyback and upbeat 2026 outlook. |
| Jul 30 | Q2 2025 earnings | Positive | +10.3% | Record Q2 with 13% sales growth and 25% Adjusted EBITDA margin; guidance raised. |
| Apr 30 | Q1 2025 earnings | Positive | -8.1% | Solid quarter with 4% growth and 20% Adjusted EBITDA; 2025 outlook reaffirmed. |
| Feb 26 | Q4 & FY 2024 earnings | Positive | +1.6% | Q4 and full‑year 2024 sales up, strong cash and EBITDA margin above 20%. |
| Oct 30 | Q3 2024 earnings | Positive | +20.4% | Q3 2024 growth with 22% Adjusted EBITDA margin and raised full‑year sales outlook. |
Earnings have often been strong but stock reactions mixed, with both sharp rallies and notable selloffs following results.
Over the past five earnings cycles, MIMEDX reported steady growth, record 2024–2025 sales, and consistent Adjusted EBITDA margins above 20%. Prior outlooks projected 2026 net sales of $340–360M and mid‑to‑high‑teens Adjusted EBITDA margins. Today’s update contrasts with that trajectory by highlighting reimbursement‑driven pressure on the Wound business and a lower 2026 sales range, following recent product launches and cost‑reduction actions aimed at restoring profitability.
Historical Comparison
In the last five earnings releases, average next‑day move was about 4.57%, with both strong rallies and selloffs, showing that MIMEDX earnings have often been meaningful trading catalysts.
Earnings updates progressed from record 2024–2025 growth and guidance for $340–360M 2026 sales to this quarter’s reimbursement‑driven setback and reduced 2026 net sales range of $260–290M, despite ongoing product expansion and cost‑cutting.
Market Pulse Summary
The stock moved +8.9% in the session following this news. A strong positive reaction aligns with MIMEDX’s history of earnings acting as trading catalysts, where past reports saw average moves of about 4.57%. Investors may have focused on resilient Surgical growth, cost reductions targeting $40M annualized savings, and stable cash of $160M despite reimbursement headwinds. However, the sharp reset of 2026 net sales guidance to $260–290M and a shift to a Q1 net loss could still temper longer‑term enthusiasm.
Key Terms
medicare administrative contractors regulatory
adjusted ebitda financial
randomized controlled trial medical
asp +6% methodology financial
gross margin financial
gaap financial
AI-generated analysis. Not financial advice.
Reports First Quarter Net Sales of
Revises 2026 Net Sales and Adjusted EBITDA Expectations
Management to Host Conference Call Today, April 29, 2026, at 4:30 PM ET
MARIETTA, Ga., April 29, 2026 (GLOBE NEWSWIRE) -- MiMedx Group, Inc. (Nasdaq: MDXG) (“MIMEDX” or the “Company”), today announced operating and financial results for the first quarter 2026.
Joseph H. Capper, MIMEDX Chief Executive Officer, commented, "The first quarter of 2026 was adversely impacted as new Medicare reimbursement policies in the advanced wound care space went into effect at the start of the year and led to significant confusion across the industry in nearly every care setting. Additionally, inconsistent implementation by the Medicare Administrative Contractors ("MACs") created even greater challenges for providers and their patients."
Mr. Capper continued, "We generated
“While some disruption was expected, the challenges we are now seeing in the market, coupled with irrational behavior by some industry participants, has added complexity that could not have been anticipated. To compound matters, the wound care market is adjusting to the new reimbursement rules at an extremely slow pace. We are working closely with our customers to help them adapt to the changes. Importantly, as we exited the quarter, we saw promising signs of volume recovery in Wound Care Centers and Hospitals. On the other side of this transition, we will be competing in a far more attractive space and believe MIMEDX is uniquely positioned to lead the market. Our Surgical franchise continues to post double-digit top-line growth, with
First Quarter 2026 Results Discussion
Net Sales
MIMEDX reported net sales for the three months ended March 31, 2026 of
Gross Profit and Margin
Gross profit for the three months ended March 31, 2026, was
Operating Expenses
Selling, general and administrative ("SG&A") expenses for the three months ended March 31, 2026, were
Research and development ("R&D") expenses for the three months ended March 31, 2026 and 2025, were
Net Income
Net loss for the three months ended March 31, 2026 was
Cash and Cash Equivalents
As of March 31, 2026, the Company had
Financial Outlook
For 2026, MIMEDX now expects 2026 net sales to be in a range of
Longer-term, the Company continues to expect to achieve annual net sales growth in the low double-digits as a percentage with an adjusted EBITDA margin above
Conference Call and Webcast
MIMEDX will host a conference call and webcast to review its first quarter 2026 results on Wednesday, April 29, 2026, beginning at 4:30 p.m., Eastern Time. The call can be accessed using the following information:
Webcast: Click here
U.S. Investors: 877-407-6184
International Investors: 201-389-0877
Conference ID: 13759618
A replay of the webcast will be available for approximately 30 days on the Company’s website at www.mimedx.com following the conclusion of the event.
Important Cautionary Statement
This press release includes forward-looking statements, including statements regarding (i) our 2026 and longer term financial goals and expectations for future financial results, including revenue, net sales growth and Adjusted EBITDA margin; and (ii) any changes to underlying demand in the Wound segment, and (iii) the impact of our restructuring and cost reduction initiatives, including expected cost savings, on our future profitability and growth. Additional forward-looking statements may be identified by words such as "believe," "expect," "may," "plan," “goal,” “outlook,” "potential," "will," "preliminary," and similar expressions, and are based on management's current beliefs and expectations.
Forward-looking statements are subject to risks and uncertainties, and the Company cautions investors against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ from expectations include: (i) future sales are uncertain and are affected by competition, access to customers, patient access to healthcare providers, the new reimbursement environment, which introduced tighter coverage parameters, lower reimbursement levels in certain categories, and incremental administrative complexity for providers and many other factors; (ii) the Company may change its plans due to unforeseen or evolving circumstances and market response to the reimbursement rules; (iii) the results of scientific research are uncertain and may have little or no value; (iv) our ability to sell our products in other countries depends on a number of factors including adequate levels of reimbursement, market acceptance of novel therapies, and our ability to build and manage a direct sales force or third party distribution relationship; (v) the effectiveness of amniotic tissue as a therapy for particular indications or conditions is the subject of further scientific and clinical studies; (vi) we may alter the timing and amount of planned expenditures for research and development based on regulatory developments; (vii) Medicare spending; and (viii) changes in the size of the addressable market for our products. The Company describes additional risks and uncertainties in the Risk Factors section of its most recent annual report and quarterly reports filed with the Securities and Exchange Commission. Any forward-looking statements speak only as of the date of this press release and the Company assumes no obligation to update any forward-looking statement.
About MIMEDX
MIMEDX is a pioneer and leader focused on helping humans heal. With more than a decade of helping clinicians manage chronic and other hard-to-heal wounds, MIMEDX is dedicated to providing a leading portfolio of products for applications in the wound care, burn, and surgical sectors of healthcare. The Company’s vision is to be the leading global provider of healing solutions through relentless innovation to restore quality of life. For additional information, please visit www.mimedx.com.
Contact:
Matt Notarianni
Investor Relations
470.304.7291
mnotarianni@mimedx.com
Selected Unaudited Financial Information
| MiMedx Group, Inc. | |||||
| Condensed Consolidated Balance Sheets | |||||
| (in thousands) Unaudited | |||||
| March 31, 2026 | December 31, 2025 | ||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 159,773 | $ | 166,121 | |
| Accounts receivable, net | 46,034 | 75,707 | |||
| Inventory | 26,228 | 25,340 | |||
| Other current assets | 8,291 | 10,303 | |||
| Total current assets | 240,326 | 277,471 | |||
| Property and equipment, net | 4,756 | 4,713 | |||
| Deferred tax asset, net | 24,127 | 19,596 | |||
| Goodwill | 19,441 | 19,441 | |||
| Intangible assets, net | 13,140 | 14,158 | |||
| Other assets | 6,886 | 7,274 | |||
| Total assets | $ | 308,676 | $ | 342,653 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Current portion of long term debt | $ | 1,500 | $ | 1,500 | |
| Accounts payable | 11,464 | 14,528 | |||
| Accrued compensation | 14,524 | 31,065 | |||
| Accrued expenses | 11,008 | 11,383 | |||
| Other current liabilities | 6,054 | 5,790 | |||
| Total current liabilities | 44,550 | 64,266 | |||
| Long term debt, net | 16,094 | 16,467 | |||
| Other liabilities | 5,096 | 5,372 | |||
| Total liabilities | 65,740 | 86,105 | |||
| Total stockholders' equity | 242,936 | 256,548 | |||
| Total liabilities and stockholders’ equity | $ | 308,676 | $ | 342,653 | |
| MiMedx Group, Inc. | |||||||
| Condensed Consolidated Statements of Operations | |||||||
| (in thousands, except share and per share amounts) Unaudited | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Net sales | $ | 58,991 | $ | 88,205 | |||
| Cost of sales | 17,368 | 16,558 | |||||
| Gross profit | 41,623 | 71,647 | |||||
| Operating expenses: | |||||||
| Selling, general and administrative | 53,231 | 59,969 | |||||
| Research and development | 4,140 | 3,328 | |||||
| Amortization of intangible assets | 301 | 99 | |||||
| Operating income | (16,049 | ) | 8,251 | ||||
| Other expense, net | |||||||
| Interest income, net | 886 | 506 | |||||
| Other expense, net | (168 | ) | (145 | ) | |||
| (Loss) income before income tax | (15,331 | ) | 8,612 | ||||
| Income tax provision | 4,471 | (1,589 | ) | ||||
| Net (loss) income | $ | (10,860 | ) | $ | 7,023 | ||
| Basic net (loss) income per common share | $ | (0.07 | ) | $ | 0.05 | ||
| Diluted net (loss) income per common share | $ | (0.07 | ) | $ | 0.05 | ||
| Weighted average common shares outstanding - basic | 148,446,017 | 147,272,324 | |||||
| Weighted average common shares outstanding - diluted | 148,446,017 | 149,677,452 | |||||
| MiMedx Group, Inc. | |||||||
| Condensed Consolidated Statements of Cash Flows | |||||||
| (in thousands) Unaudited | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Net cash flows provided by operating activities | 1,879 | 5,299 | |||||
| Net cash flows used in investing activities | (5,642 | ) | (406 | ) | |||
| Net cash flows used in financing activities | (2,585 | ) | (2,878 | ) | |||
| Net change in cash | $ | (6,348 | ) | $ | 2,015 | ||
Reconciliation of Non-GAAP Measures
In addition to our GAAP results, we provide certain non-GAAP measures including Adjusted EBITDA and related margins, Free Cash Flow, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Net Income, and Adjusted Earnings Per Share ("Adjusted EPS"). We believe that the presentation of these measures provides important supplemental information to management and investors regarding our performance. These measures are not a substitute for GAAP measures. Company management uses these non-GAAP measures as aids in monitoring our ongoing financial performance from quarter-to-quarter and year-to-year on a regular basis and for benchmarking against comparable companies.
These non-GAAP financial measures reflect the exclusion of the following items:
- Share-based compensation - expense recognized related to awards to employees and our board of directors issued pursuant to our share-based compensation plans. This expense is reflected amongst cost of sales, research and development expense, and selling, general, and administrative expense in the unaudited condensed consolidated statements of operations.
- Amortization of acquired intangible assets - reflects amortization expense recognized solely related to assets which were acquired as part of a transaction. These expenses are generally reflected in cost of sales in our unaudited condensed consolidated statements of operations.
- Transaction-related expenses – reflects expenses incrementally incurred resulting from the consummation of material strategic transactions or the integration of acquired assets or operations into our core business.
- Strategic legal and regulatory expenses - relates to litigation and regulatory expenses deemed strategically important to our operations. Litigation expenses primarily relate to legal fees incurred and relate to suits filed against former employees and their employers for violation of non-compete and non-solicitation agreements and certain patent infringement matters. Regulatory expenses relate to legal fees incurred stemming from action taken against the United States Food & Drug Administration ("FDA") surrounding the designation of one of our products. These expenses are generally reflected in selling, general and administrative expense in our unaudited condensed consolidated statements of operations.
- Reorganization expense - expenses incurred toward the realignment of our operating strategy. These expenses relate to severance expenses related to certain executive leaders and other employment actions. These expenses are reflected as a component of selling, general, and administrative expense in the unaudited condensed consolidated statements of operations.
- Income Tax Adjustment - for purposes of calculating Adjusted Net Income and Adjusted Earnings Per Share, reflects our expectation of a long-term effective tax rate, which is normalized and balance sheet-agnostic. Actual tax expense will be based on GAAP earnings, and may differ from the expected long-term effective tax rate due to a variety of factors, including the tax treatment of various transactions included in GAAP net income and other reconciling items that are excluded in determining Adjusted Net Income and Adjusted EPS. The actual long-term normalized effective tax rate was
25% for each of the quarters ended March 31, 2026 and 2025.
Adjusted EBITDA and Adjusted EBITDA margin
Adjusted EBITDA consists of GAAP net income excluding (i) share-based compensation, (ii) income tax provision, (iii) amortization of intangible assets (iv) strategic legal and regulatory expenses, (v) interest (income) expense, net, (vi) depreciation expense, (vii) reorganization expenses, and (viii) transaction-related expenses.
Please refer to the tables at the beginning of this press release for reconciliation to GAAP net income.
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Net (loss) income | $ | (10,860 | ) | $ | 7,023 | |||
| Non-GAAP Adjustments: | ||||||||
| Strategic legal and regulatory expenses | 4,555 | 1,645 | ||||||
| Amortization of intangible assets | 1,101 | 2,646 | ||||||
| Depreciation expense | 527 | 558 | ||||||
| Transaction related expenses | 176 | 7 | ||||||
| Reorganization expenses | (7 | ) | — | |||||
| Interest (income) expense, net | (886 | ) | (506 | ) | ||||
| Share-based compensation | (1,697 | ) | 4,259 | |||||
| Income tax provision | (4,471 | ) | 1,589 | |||||
| Adjusted EBITDA | $ | (11,562 | ) | $ | 17,221 | |||
| Adjusted EBITDA margin | (19.6 | )% | 19.5 | % | ||||
Adjusted Net Income
Adjusted Net Income provides a view of our operating performance, exclusive of certain items which are non-recurring or not reflective of our core operations.
Adjusted Net Income is defined as GAAP net income plus (i) amortization of acquired intangible assets, (ii) strategic legal and regulatory expenses, (iii) reorganization expenses, (iv) transaction related expenses, and (v) the long-term effective income tax rate adjustment.
A reconciliation of GAAP net income to Adjusted Net Income appears in the table below (in thousands):
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Net (loss) income | $ | (10,860 | ) | $ | 7,023 | |||
| Strategic legal and regulatory expenses | 4,555 | 1,645 | ||||||
| Amortization of acquired intangible assets | 799 | 2,547 | ||||||
| Transaction related expenses | 176 | 7 | ||||||
| Reorganization expenses | (7 | ) | — | |||||
| Long-term effective income tax rate adjustment | (2,019 | ) | (1,614 | ) | ||||
| Adjusted net (loss) income | $ | (7,356 | ) | $ | 9,608 | |||
A reconciliation of various line items included in our GAAP unaudited condensed consolidated statements of operations to Adjusted Net Income for the three months ended March 31, 2026 and 2025 are presented in the tables below (in thousands):
| Three Months Ended March 31, 2026 | ||||||||||||||
| Gross Profit | Selling, General & Administrative Expense | Research and Development Expense | Net Loss | |||||||||||
| Reported GAAP Measure | $ | 41,623 | $ | 53,231 | $ | 4,140 | $ | (10,860 | ) | |||||
| Amortization of acquired intangible assets | 799 | — | — | 799 | ||||||||||
| Strategic legal and regulatory expenses | — | (4,555 | ) | — | 4,555 | |||||||||
| Reorganization expenses | — | 7 | — | (7 | ) | |||||||||
| Transaction related expenses | — | (145 | ) | — | 176 | |||||||||
| Long-term effective income tax rate adjustment | — | — | — | (2,019 | ) | |||||||||
| Non-GAAP Measure | $ | 42,422 | $ | 48,538 | $ | 4,140 | $ | (7,356 | ) | |||||
| Gross Profit Margin | 70.6 | % | ||||||||||||
| Gross Profit Margin, as adjusted | 71.9 | % | ||||||||||||
| Three months ended March 31, 2025 | ||||||||||||||
| Gross Profit | Selling, General & Administrative Expense | Research and Development Expense | Net Income | |||||||||||
| Reported GAAP Measure | $ | 71,647 | $ | 59,969 | $ | 3,328 | $ | 7,023 | ||||||
| Amortization of acquired intangible assets | 2,547 | — | — | 2,547 | ||||||||||
| Strategic legal and regulatory expenses | — | (1,645 | ) | — | 1,645 | |||||||||
| Transaction related expenses | — | — | 7 | |||||||||||
| Long-term effective income tax rate adjustment | — | — | — | (1,614 | ) | |||||||||
| Non-GAAP Measure | $ | 74,194 | $ | 58,324 | $ | 3,328 | $ | 9,608 | ||||||
| Gross Profit Margin | 81.2 | % | ||||||||||||
| Gross Profit Margin, as adjusted | 84.1 | % | ||||||||||||
Adjusted Earnings Per Share
Adjusted Earnings Per Share is intended to provide a normalized view of earnings per share by removing items that may be irregular, one-time, or non-recurring from net income. This enables us to identify underlying trends in our business that could otherwise be masked by such items. Adjusted Earnings Per Share consists of GAAP diluted net income per common share including adjustments for (i) amortization of acquired intangible assets, (ii) strategic legal and regulatory expenses, (iii) transaction-related expenses, and (iv) the long-term effective income tax rate adjustment.
A reconciliation of GAAP diluted earnings per share to Adjusted Earnings Per Share appears in the table below (per diluted share):
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| GAAP net (loss) income per common share - diluted | $ | (0.07 | ) | $ | 0.05 | ||
| Amortization of acquired intangible assets | 0.01 | 0.02 | |||||
| Strategic legal and regulatory expenses | 0.03 | 0.00 | |||||
| Reorganization expenses | 0.00 | 0.00 | |||||
| Transaction related expenses | 0.00 | 0.00 | |||||
| Long-term effective income tax rate adjustment | (0.02 | ) | (0.01 | ) | |||
| Adjusted Earnings Per Share | (0.05 | ) | 0.06 | ||||
| Weighted average common shares outstanding - adjusted | 148,446,017 | 149,677,452 | |||||
Free Cash Flow
Free Cash Flow is intended to provide a measure of our ability to generate cash in excess of capital investments. It provides management with a view of cash flows which can be used to finance operational and strategic investments.
Free Cash Flow is defined as net cash provided by operating activities less capital expenditures, including purchases of equipment.
A reconciliation of GAAP net cash flows provided by operating activities to Free Cash Flow appears in the table below (in thousands):
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Net cash flows provided by operating activities | $ | 1,879 | $ | 5,299 | |||
| Capital expenditures, including purchases of equipment | (570 | ) | (377 | ) | |||
| Free Cash Flow | $ | 1,309 | $ | 4,922 | |||
Other Information
Net Sales by Product Category by Quarter
Below is a summary of net sales by product category (in thousands):
| Three Months Ended March 31, | ||||||
| 2026 | 2025 | |||||
| Surgical | $ | 36,374 | $ | 32,132 | ||
| Wound | 22,617 | 56,073 | ||||
| Net sales | $ | 58,991 | $ | 88,205 | ||
