second quarter 2026
Filed Jul 29, 2026MIMEDX reported second-quarter net sales of $64 million, down 35%, and reiterated 2026 net sales guidance of $260 to $290 million.
Surgical product sales increased 15% year over year and the Company reiterated its full-year outlook, but net sales decreased 35%, gross margin declined to 69%, and the Company reported a $15 million net loss as Medicare reimbursement changes materially affected the Wound business.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $64 million | – | a decrease of 35% |
| Surgical product sales growthother | 15% | – | 15% |
| Wound sales declineother | 61% | – | a year-over-year decrease of 61% |
| Gross profitGAAP | $44 million | – | – |
| Gross marginGAAP | 69% | – | – |
| Selling, general and administrative expensesGAAP | $60 million | – | – |
| Research and development expensesGAAP | $3 million | – | – |
| Net lossGAAP | $15 million | – | – |
| Overall Wound volume growthother | 22% | 22% | – |
| Bad debt expense increaseGAAP | $5 million | – | increased $5 million, year over year |
2026 outlook
- Revenue$260 to $290 million
- Note2026 Adjusted EBITDA is expected to approach breakeven on a full year basis.
- NoteLonger-term, the Company continues to expect to achieve annual net sales growth in the low double-digits with an adjusted EBITDA margin above 20%.
What drove it
- Surgical product sales increased 15% compared to the prior-year period, led by sales of AMNIOFIX® and AMNIOEFFECT®.
- Overall Wound volume grew 22% sequentially, with volume in hospital outpatient departments and wound care centers growing at an even higher rate.
- The cost reduction initiative announced in April and lower commissions on lower sales reduced SG&A expenses.
- R&D spending reflected ongoing pipeline investments, including costs associated with two 510(k) applications made to the United States Food & Drug Administration.
- MIMEDX announced a definitive agreement to acquire all outstanding shares of Sanara MedTech Inc. in a cash and stock transaction valued at $35 per Sanara share.
Concerns
- Several Medicare reimbursement changes effective January 1 negatively affected Wound sales and Wound-product pricing.
- Gross margin declined due primarily to Medicare reimbursement rules, unfavorable product mix, and other one-time non-recurring expenses connected with cost-reduction actions.
- Higher bad debt expense reflected credit deterioration of certain legacy customers.
- Net sales decreased 35% and the Company reported a $15 million net loss.
- The proposed Sanara transaction remains subject to Sanara shareholder approval, required regulatory approvals, and other customary closing conditions.
What to watch
- The pace of Wound-business recovery as providers adjust to the reimbursement landscape and new payment structure.
- Whether Surgical momentum, including AMNIOFIX® and AMNIOEFFECT® sales, continues to offset Wound-business pressure.
- Progress toward the Company’s stated path back to profitability for the second half of the year and full-year Adjusted EBITDA approaching breakeven.
- Execution, financing, approvals, and closing of the proposed Sanara acquisition, which is expected to close by the end of the year.
Balance sheet and cash flow
- As of June 30, 2026, the Company had $136 million of cash and cash equivalents compared to $166 million as of December 31, 2025.
- As of June 30, 2026, our cash position, net of debt on our balance sheet, was $119 million.
- MIMEDX expects to finance the cash portion of the Sanara transaction through a combination of cash on hand and a new, committed debt financing in the form of a $300 million term loan.
- The Sanara transaction has a total enterprise value of approximately $350 million.
- In connection with definitive debt-financing documentation, MIMEDX’s existing credit agreement will be terminated and all amounts outstanding will be repaid in full.
Analysis
Second-quarter results reflected a sharp divergence between the Company’s Surgical and Wound businesses. Net sales were $64 million, compared with $99 million in the prior-year period, a decrease of 35%. Surgical product sales increased 15% year over year, led by AMNIOFIX® and AMNIOEFFECT®, while Wound sales decreased 61%. Management attributed the Wound decline to Medicare reimbursement changes that became effective on January 1, while also reporting 22% sequential growth in overall Wound volume.
Profitability weakened with revenue and mix. Gross profit was $44 million versus $80 million, while gross margin was 69% compared with 81%. The Company identified lower Wound-product pricing under Medicare reimbursement rules as the primary reason for the quarter-over-quarter gross-margin decline. Unfavorable product mix and one-time non-recurring costs related to cost-reduction actions also contributed.
Expense actions reduced SG&A to $60 million from $64 million, primarily through the April cost-reduction initiative and lower commissions on lower sales. These savings were partly offset by a $5 million year-over-year increase in bad debt expense related to credit deterioration among certain legacy customers. R&D expense was unchanged at $3 million, reflecting pipeline investment and costs related to two 510(k) applications. The Company reported a $15 million net loss, compared with net income of $10 million in the prior-year period.
Liquidity stood at $136 million of cash and cash equivalents as of June 30, 2026, compared with $166 million as of December 31, 2025, and cash net of balance-sheet debt was $119 million. MIMEDX reiterated 2026 net sales guidance of $260 to $290 million and expects full-year Adjusted EBITDA to approach breakeven. Separately, the proposed Sanara acquisition adds a transaction valued at approximately $350 million in enterprise value, with the cash consideration expected to be funded through cash on hand and a committed $300 million term loan.
Management, verbatim
During the second quarter, we delivered another strong performance in our Surgical franchise, with 15% year-over-year revenue growth balanced across our sheet and particulate products.
Joseph H. Capper, MIMEDX Chief Executive Officer
Meanwhile, our Wound business saw positive signs of recovery during the quarter as the industry navigates adjustments in the reimbursement landscape and the resulting implications for patient care.
Joseph H. Capper, MIMEDX Chief Executive Officer
Early in the second quarter, we took swift action to right-size our expense structure for the current market environment, which yielded improving results throughout the quarter, putting us on a path back to profitability for the second half of the year.
Joseph H. Capper, MIMEDX Chief Executive Officer
Not in the filing
stated, not guessed- Reported revenue amounts for the Surgical and Wound segments.
- Operating income or loss.
- GAAP and non-GAAP earnings per share.
- Adjusted EBITDA result for the reported quarter.
- Operating cash flow.
- Free cash flow.
- Capital returns, including share repurchases and dividends.
- Total debt balance as of June 30, 2026.
- Gross-margin percentage change.
- Prior-quarter net sales, gross profit, SG&A, R&D, net income or loss, and earnings per share.
- Prior outlook for comparison with reported results.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.