[Management View]
MiMedx reported $114 million in net sales for Q3 2025, marking a 35% YoY growth. The wound franchise sales reached $77 million, up 40% YoY, driven by new products like Solara and Emerge. Surgical franchise sales were $37 million, reflecting a 26% YoY growth. The company achieved an adjusted gross margin of 88%, a 540 basis point increase from the previous year, and adjusted EBITDA of $35 million, or 31% of net sales. Management emphasized strategic priorities in product innovation and market expansion.

[Outlook]
MiMedx raised its full-year 2025 revenue growth guidance to the mid-to-high teens percentage range and adjusted EBITDA margin guidance to at least the mid-20% range. The company is preparing for Medicare reimbursement reforms expected in 2026, with a focus on maintaining competitive advantages and exploring M&A opportunities, particularly in the surgical segment.

[Financial Performance]
The company reported a GAAP net income of $17 million, or $0.11 per diluted share, up from $8 million and $0.05 per share in the prior year period. Adjusted net income was $23 million, or $0.15 per diluted share, compared to $10 million and $0.07 per share in the prior year period. Free cash flow was $29 million, with a net cash position of $124 million at quarter-end.

[Q&A Highlights]
Question 1: How should we think about the contribution from wound versus surgical for the rest of the year?
Answer: The company expects strong uptake in the surgical suite and continued healthy growth in the wound business. Q4 will face tougher comps due to last year's sales turnover impact, but momentum is expected to continue.

Question 2: What preparations are being made for post-January 1 reimbursement reforms?
Answer: MiMedx is advocating for a level playing field and expects to outperform the market in a less profitability-driven environment. The company is exploring market share growth opportunities and has a strong balance sheet to support strategic initiatives.

Question 3: Can you share volume growth in the wound business on a square centimeter basis?
Answer: The company does not publicly disclose volume growth due to various influencing factors. However, MiMedx is confident in its position to gain market share post-reform.

Question 4: Are there any compelling M&A prospects given the cash build-up?
Answer: Yes, MiMedx is exploring opportunities, particularly in the surgical segment, while being cautious with wound care assets due to reimbursement uncertainties.

Question 5: Was there any pull forward of demand in the wound or surgical business ahead of CMS rulings?
Answer: No significant pull forward was observed. The surgical business, in particular, is not impacted by elective surgery dynamics.

[Sentiment Analysis]
Analysts expressed optimism about MiMedx's strategic positioning and growth prospects. Management maintained a confident tone, emphasizing preparedness for upcoming reimbursement changes and potential market share gains.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 |
|-------------------------|---------|---------|
| Net Sales | $114M | $84.4M |
| Wound Franchise Sales | $77M | $55M |
| Surgical Franchise Sales| $37M | $29.4M |
| Adjusted Gross Margin | 88% | 82.6% |
| Adjusted EBITDA | $35M | $18M |
| GAAP Net Income | $17M | $8M |

[Risks and Concerns]
The primary risk involves the uncertainty surrounding Medicare reimbursement reforms, which could impact pricing and market dynamics. Additionally, valuation challenges for wound-care assets due to reimbursement uncertainties pose a concern for potential M&A activities.

[Final Takeaway]
MiMedx delivered a record-breaking quarter with significant growth in both wound and surgical segments. The company is strategically positioned to navigate upcoming Medicare reimbursement reforms, with a focus on leveraging its competitive advantages and exploring growth opportunities. Management's confidence in maintaining momentum and capturing market share post-reform underscores a positive outlook for the company's future performance.