Q3 FY2026
Filed Nov 3, 2026Strata Critical Medical Announces Third Quarter 2026 Results
Q3 revenue increased 50.3% year-over-year, Adjusted EBITDA increased 128.0%, and free cash flow was $8.6 million, while Logistics revenue declined 3.5% and the company remained loss-making under GAAP from continuing operations.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total revenueGAAP | $74.08M | 2.2 % | 50.3 % |
| Nine months 2026 total revenueGAAP | $214.0M | – | 64.1 % |
| Q3 2026 total gross profitGAAP | $16.82M | 10.5 % | 57.9 % |
| Nine months 2026 total gross profitGAAP | $46.15M | – | 72.8 % |
| Q3 2026 total gross marginGAAP | 22.7 % | 170 bps | 110 bps |
| Nine months 2026 total gross marginGAAP | 21.6 % | – | 110 bps |
| Q3 2026 selling, general and administrative expensesGAAP | $15.14M | – | (4.9) % |
| Nine months 2026 selling, general and administrative expensesGAAP | $44.74M | – | 7.7 % |
| Q3 2026 amortization of intangible assetsGAAP | $5.51M | – | 1,414.0 % |
| Nine months 2026 amortization of intangible assetsGAAP | $13.62M | – | 1,107.8 % |
| Q3 2026 total operating expensesGAAP | $20.65M | – | 26.9 % |
| Nine months 2026 total operating expensesGAAP | $58.37M | – | 36.8 % |
| Q3 2026 operating loss from continuing operationsGAAP | −$3.83M | – | (31.9) % |
| Nine months 2026 operating loss from continuing operationsGAAP | −$12.21M | – | (23.4) % |
| Q3 2026 net loss from continuing operationsGAAP | −$7.62M | – | (21.1) % |
| Nine months 2026 net loss from continuing operationsGAAP | −$15.73M | – | 7.2 % |
| Q3 2026 net loss from continuing operations as a percentage of revenueGAAP | (10.3) % | – | 930 bps |
| Nine months 2026 net loss from continuing operations as a percentage of revenueGAAP | (7.4) % | – | 390 bps |
| Q3 2026 total basic and diluted earnings (loss) per shareGAAP | $ (0.09) | – | – |
| Nine months 2026 total basic and diluted earnings (loss) per shareGAAP | $ (0.18) | – | – |
| Q3 2026 continuing operations basic and diluted earnings (loss) per shareGAAP | $ (0.09) | – | – |
| Nine months 2026 continuing operations basic and diluted earnings (loss) per shareGAAP | $ (0.18) | – | – |
| Q3 2026 Adjusted SG&Anon-GAAP | $8.93M | (2.1) % | 19.6 % |
| Nine months 2026 Adjusted SG&Anon-GAAP | $27.25M | – | 22.5 % |
| Q3 2026 Adjusted SG&A as a percentage of revenuenon-GAAP | 12.0 % | – | (310 bps) |
| Nine months 2026 Adjusted SG&A as a percentage of revenuenon-GAAP | 12.7 % | – | (440 bps) |
| Q3 2026 Adjusted EBITDAnon-GAAP | $9.61M | – | 128.0 % |
| Nine months 2026 Adjusted EBITDAnon-GAAP | $23.90M | – | 236.9 % |
| Q3 2026 Adjusted EBITDA as a percentage of revenuenon-GAAP | 13.0 % | – | 450 bps |
| Nine months 2026 Adjusted EBITDA as a percentage of revenuenon-GAAP | 11.2 % | – | 580 bps |
| Q3 2026 net cash provided by operating activitiesGAAP | $9.46M | – | – |
| Nine months 2026 net cash provided by operating activitiesGAAP | $19.03M | – | – |
| Q3 2026 free cash flownon-GAAP | $8.64M | – | – |
| Q3 2026 free cash flow before aircraft and engine acquisitionsnon-GAAP | $8.64M | – | – |
| Q3 2026 pro forma revenuenon-GAAP | $74.08M | – | 8.5 % |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| LogisticsSequential decline was towards the high end of the guidance framework and consistent with seasonal transplant industry volume declines. | $44.90M | (6.9) % | (3.5) % |
| Transplant ClinicalClinical growth was driven by a full quarter contribution from the Keystone acquisition and three acquisitions that closed in Q2 2026. | $15.22M | 21.5 % | NM (2) |
| Other ClinicalClinical growth was driven by a full quarter contribution from the Keystone acquisition and three acquisitions that closed in Q2 2026. | $13.96M | 18.9 % | NM (2) |
| Total ClinicalSequential growth was driven primarily by the full-quarter impact of recent acquisitions as well as modest organic sequential growth. | $29.18M | 20.3 % | NM (2) |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
2026 outlook
- Revenue$285-295 million
- NoteAdjusted EBITDA (2) of $33-35 million
- NoteFree cash flow, before aircraft and engine acquisitions (2) of $15-22 million
- NotePro forma, assuming all acquisitions completed in 2026 closed on January 1, 2026: Revenue of $295-305 million
- NotePro forma, assuming all acquisitions completed in 2026 closed on January 1, 2026: Adjusted EBITDA (2) of $36-38 million
Capital returns
- Announced a $20 million share repurchase authorization, which will be utilized alongside the Company’s M&A strategy.
What drove it
- Total revenue increased 50.3% year-over-year, driven by Clinical acquisitions partially offset by Logistics.
- Pro forma revenue increased 8.5% year-over-year in Q3 2026.
- Total gross margin increased 110 basis points to 22.7%, driven primarily by the positive mix impact of the larger Clinical segment and Clinical margin expansion, partially offset by a Logistics gross-margin decline.
- Logistics gross margin rebounded 240 basis points sequentially to 20.8% from 18.4% in Q2 2026.
- Clinical gross margin was 25.6%, compared with 23.8% in Q3 2025.
- Adjusted EBITDA margin increased 450 basis points year-over-year to 13.0%, driven by Clinical gross-margin expansion and lower Adjusted SG&A as a percentage of revenue, partly offset by lower Logistics gross margin.
- The Company launched a cardiothoracic surgical locum tenens business line to address customer demand.
Concerns
- Logistics revenue decreased 3.5% year-over-year and 6.9% sequentially to $44.9 million.
- Logistics gross margin of 20.8% declined from 21.5% in the prior-year period, driven primarily by increased fuel surcharge pass through revenue and reduced average donor-to-recipient distances.
- Clinical gross margin declined 50 basis points sequentially from 26.1%, primarily due to investments in staff and training to support future growth.
- The Company reported a Q3 2026 net loss from continuing operations of $ (7,615).
- Amortization of intangible assets increased to $5,511 from $364 in Q3 2025.
- Q3 other non-operating income (loss) included $ (2,649) from change in fair value of assets and other liabilities and $ (1,281) of realized loss from sales of short-term investments.
What to watch
- Delivery against reiterated 2026 revenue guidance of $285-295 million and Adjusted EBITDA guidance of $33-35 million.
- Sustainability of Logistics revenue and margins following the seasonal Q3 volume decline.
- Clinical integration, contribution, and margin performance from Keystone and the three acquisitions closed in Q2 2026.
- Deployment of the $20 million share repurchase authorization alongside the stated M&A strategy.
- Potential receipt of up to an additional $27.5 million of retention earn-out and indemnity holdback release by Q1 2027.
- Progress of the new cardiothoracic surgical locum tenens business line.
Balance sheet and cash flow
- Cash and cash equivalents were $ 35,136 at September 30, 2026, compared with $ 30,968 at December 31, 2025.
- Short-term investments were $ 6,505 at September 30, 2026, compared with $ 30,263 at December 31, 2025.
- The Company ended Q3 2026 with $41.6 million in cash and short-term investments.
- Total assets were $ 328,884 at September 30, 2026, compared with $ 325,472 at December 31, 2025.
- Total liabilities were $ 52,509 at September 30, 2026, compared with $ 46,400 at December 31, 2025.
- Net cash provided by operating activities was $ 9,458 in Q3 2026.
- Free cash flow was $ 8,643 in Q3 2026.
- The Passenger business sale earn-out was settled in Joby Aviation stock that the Company sold for net proceeds of $15.3 million.
- Up to an additional $27.5 million of retention earn-out and indemnity holdback release may be received by Q1 2027.
Analysis
Strata reported Q3 2026 revenue of $74,081, up 50.3% from $49,298 in Q3 2025 and up 2.2% from $72,506 in Q2 2026. The growth was acquisition-led in Clinical: Total Clinical revenue was $29,182, versus $2,791 in the prior-year period, and grew 20.3% sequentially. Pro forma revenue was $74,081 versus $68,287, an 8.5% increase. Logistics revenue was $44,899, down 3.5% year-over-year and down 6.9% sequentially amid seasonal transplant industry volume declines.
Gross profit rose 57.9% to $16,820 and total gross margin increased 110 basis points to 22.7%. The larger Clinical mix supported the improvement, with Clinical gross margin at 25.6% versus 23.8% a year earlier. Logistics gross margin was 20.8%, down from 21.5% in Q3 2025 due primarily to fuel surcharge pass through revenue and lower average donor-to-recipient distances, but up 240 basis points from 18.4% in Q2 2026. Clinical gross margin was 50 basis points below Q2 2026 because of staff and training investments.
The company reduced GAAP SG&A to $15,140 from $15,912, while Adjusted SG&A increased to $8,926 from $7,463 because of Clinical acquisitions but declined from $9,115 in Q2 2026. Adjusted EBITDA more than doubled to $9,606 from $4,214, and Adjusted EBITDA margin improved to 13.0% from 8.5%. GAAP operating loss narrowed to $ (3,831) from $ (5,622), and net loss from continuing operations narrowed to $ (7,615) from $ (9,657), although amortization of intangible assets rose to $5,511 from $364.
Cash generation improved materially in the quarter. Net cash provided by operating activities was $9,458 and free cash flow was $8,643. Cash and cash equivalents were $35,136 and short-term investments were $6,505 at September 30, 2026. The company also reported $15.3 million of net proceeds from selling Joby Aviation stock received as the Passenger business sale earn-out, announced a $20 million repurchase authorization, and stated that it will continue pursuing acquisitions.
Management reiterated 2026 guidance for revenue of $285-295 million, Adjusted EBITDA of $33-35 million, and free cash flow before aircraft and engine acquisitions of $15-22 million. On a pro forma basis assuming all 2026 acquisitions closed on January 1, 2026, it expects revenue of $295-305 million and Adjusted EBITDA of $36-38 million. The key reported operating issue is whether Clinical growth and mix gains can continue to offset Logistics volume and margin pressure while the company integrates acquisitions and deploys capital through both M&A and the buyback authorization.
Management, verbatim
Our strong third quarter results speak for themselves. We demonstrated additional market share gains in our clinical business, continued sequential margin improvement, and a reduction in our Adjusted SG&A base quarter-over-quarter, even following our significant growth and the completion of three acquisitions during Q2.
Melissa Tomkiel, Co-CEO and General Counsel
Strategically, this quarter puts a spotlight on the scalability and cash generation potential of our business model with a record $8.6 million of Free Cash Flow in Q3. Tactically, we are happy to see Logistics gross margins back up above our 20% target faster than we anticipated.
Melissa Tomkiel, Co-CEO and General Counsel
Given Strata's improved cash generation coupled with the receipt of our first passenger sale earn-out, we are now in a position to both accelerate our target pace of acquisitions as well as opportunistically return cash to shareholders through our new buyback program.
Will Heyburn, Co-CEO and CFO
Not in the filing
stated, not guessed- Prior-period free cash flow was not reported.
- Non-GAAP earnings per share was not reported.
- Debt balance was not reported as a balance-sheet line item.
- 2026 guidance for gross margin, operating expenses, and tax rate was not reported.
- Prior guidance was not provided, so no actual-versus-prior-guidance comparison is available.
- Sequential changes for GAAP SG&A, operating expenses, operating loss, net loss, earnings per share, and Adjusted EBITDA were not reported.
- Year-over-year changes for earnings per share, operating cash flow, free cash flow, and balance-sheet balances were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.