MDXG · MiMedx Group, Inc.

MiMedx reported a challenging first quarter of 2026, with net sales of $59 million, a 33% decline from $88 million in the same period last year. The decline was driven by a 60% drop in wound care sales, as new Medicare reimbursement policies effective January 1, 2026, created significant market disruption. The policies introduced a payment cap on skin substitutes per square centimeter and inconsistent implementation by Medicare Administrative Contractors, leading to confusion and reduced utilization, particularly in private office settings. In contrast, the surgical business continued its strong performance, growing 13% year-over-year, led by AMNIOFIX, AMNIOEFFECT, and the particulate portfolio. Gross margin fell to 71% from 81%, impacted by lower wound product pricing and unfavorable mix. Operating expenses decreased to $53 million from $60 million, partly due to a non-recurring reversal of stock-based compensation. The company reported a GAAP net loss of $11 million versus net income of $7 million in Q1 2025. Adjusted EBITDA was negative $12 million, compared to positive $17 million a year ago. Management revised its full-year 2026 net sales guidance to $260-$290 million (from prior expectations) and expects adjusted EBITDA to be approximately breakeven. The company has initiated cost reduction actions expected to generate $40 million in annualized savings, positioning for a return to profitability. Despite near-term headwinds, management expressed confidence in long-term growth, citing promising signs of volume recovery in wound care centers and hospitals as the market adjusts to new reimbursement rules.