MiMedx (MDXG) Q4 2025 Earnings Call Transcript
The Motley Fool
by newsfeedback@fool.com (Motley Fool Transcribing)February 25, 2026
AI-Generated Deep Dive Summary
MiMedx Group (MDXG) reported strong financial results for Q4 2025, with net sales reaching $118 million, marking a 27% year-over-year increase. Both wound care and surgical segments contributed significantly to this growth, each achieving over 25% revenue expansion. The company also highlighted an improved adjusted gross profit margin of 86%, up by approximately 200 basis points from the prior year, driven by favorable product mix. Adjusted EBITDA for the quarter was $29 million, representing a robust 25% margin compared to net sales.
The company faced challenges due to Medicare reimbursement changes, which introduced a price cap of $127 per square centimeter for skin substitutes. This shift disrupted market dynamics, leading to slower claims processing and competitive pricing pressures in the wound care sector. Despite this, MiMedx maintained optimism, with management expecting sequential revenue growth in each successive quarter throughout 2026 as market conditions stabilize.
MiMedx's strategic initiatives, including the launch of new products like EpiExpress, Emerge, AmnioFix Thyroid Shield, and others, played a key role in driving its surgical product sales to $39 million—a 25% increase. The company also emphasized its commitment to innovation through increased R&D spending, which rose by 33% for the quarter, focusing on randomized controlled trials and new product development.
Financial resilience was evident as the company generated $25 million in free cash flow during Q4, ending the year with a net cash position of $148 million. Additionally, MiMedx authorized up to $100 million for share repurchases over two years, showcasing its ability to strategically allocate capital while maintaining liquidity.
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Originally published on The Motley Fool on 2/25/2026