0001688757-26-000041
SEC filingRevenue grew 44.7% to $59.9M, gross margin expanded to 70.7%, and net loss narrowed to $13.4M, driven by strong US market adoption.
For the three months ended March 31, 2026, revenue increased 44.7% to $59.9 million from $41.4 million in the prior-year period. Gross profit rose 52.2% to $42.3 million, with gross margin expanding 350 basis points to 70.7% due to favorable US pricing and product mix, partially offset by higher inventory obsolescence reserves. Operating expenses increased 9.2% to $48.8 million, driven by higher SG&A costs (personnel, consulting, freight) partially offset by lower bad debt and sales/marketing expenses. R&D spending was relatively flat at $5.2 million. As a result, loss from operations improved to $6.5 million from $16.9 million. Net loss narrowed to $13.4 million from $20.7 million, helped by higher interest expense ($7.1 million vs. $5.9 million) and lower other income ($0.5 million vs. $3.0 million, primarily due to foreign currency losses). The provision for income taxes decreased to $0.3 million from $0.9 million.
The company reports revenue on a consolidated basis but provides qualitative regional breakdown. US sales increased by $13.5 million, accounting for the majority of growth, as the company capitalized on FDA approval received in September 2024. Outside the US, sales increased by $5.0 million, led by the Asia-Pacific region and Latin America, while EMEA remained relatively stable. No segment profitability data is provided.
Management expects continued losses in the near term but believes available cash and cash from operations will be sufficient for at least 12 months. Key strategic priorities include market adoption of Motiva Implants, regulatory activities, and R&D. In April 2026, the company refinanced its debt by entering a $300 million Amended Credit Agreement, with an initial $265 million tranche used to repay existing obligations, strengthening the balance sheet and extending liquidity runway.
Cash and cash equivalents stand at $68.1M, down from $75.6M at year-end 2025, reflecting cash burn of $7.5M in Q1. Total debt (net of unamortized prepayment premium) is $248.6M, consisting of $246.4M principal under the Oaktree Credit Agreement (notes payable) plus capitalized interest. The company also has $11.2M in short-term borrowings (raw material financing and insurance premium financing). Shareholders' equity declined to $14.8M from $23.5M due to the net loss and share repurchases for tax withholdings. Inventory increased slightly to $86.7M, with $16.2M on consignment. Deferred revenue is immaterial at $2.2M. No material contingent liabilities were disclosed.
No significant purchase commitments are detailed in the notes. The company relies on a sole supplier for medical-grade silicone (Avantor), with purchases of $7.8M in Q1, but no long-term contracts or minimum purchase obligations are mentioned. Lease commitments total $4.9M in undiscounted future payments, with $1.6M due in the remainder of 2026. No other material contractual obligations are disclosed.
There were no share buybacks or dividends during the quarter. The company repurchased shares worth $0.7M for tax withholding on vested RSUs. Capital expenditures were $1.9M (3.1% of sales), primarily for property and equipment. Debt activity was limited to $1.2M repayment of insurance premium financing. On April 30, 2026, the company refinanced via a new $300M credit agreement (Amended Credit Agreement), repaying the existing Oaktree debt. The new loan bears interest at 8.75% and matures in 2031.
The company operates a single segment. Geographic revenue split: US $19.6M (32.7% of total, up from 15.5% in prior year) and OUS $40.3M (67.3%). The US growth reflects the recent FDA approval and commercial launch of Motiva Implants. No other disaggregation is provided at the segment level.