MDXG earnings analysis
What we found in MDXG's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Q2 revenue was $64.4 million, down 34.7% year over year but up from $59 million in Q1 2026, as 15.1% Surgical growth was overwhelmed by a 61.1% Wound decline following Medicare reimbursement changes. Gross margin declined to 69.0% from 81.1%, and MIMEDX reported a $14.8 million net loss, or $0.10 per diluted share, versus $9.6 million of net income a year earlier. Cost reductions lowered SG&A, but cash used in operations was $8.1 million in the first half; liquidity remains supported by $135.8 million of cash and $75.0 million of undrawn revolver capacity.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Surgical franchise grew 15.1%
- Surgical sales reached $39.3 million, increasing $5.2 million, or 15.1%, year over year, driven by AMNIOFIX and AMNIOEFFECT sheet-product growth. This marks the business's sixth consecutive quarter of double-digit year-over-year growth.
- Cost actions lowered SG&A
- The company completed cost actions that reduced quarterly SG&A by $4.4 million, or 6.8%, to $59.8 million; G&A declined $2.9 million, or 17.9%.
- Cash and revolver support liquidity
- Liquidity remained substantial at $135.8 million of cash and cash equivalents, $17.3 million of term debt, and $75.0 million of unused revolving-credit availability at June 30, 2026.
- Material share repurchase activity
- MIMEDX repurchased 3.5 million shares for $12.7 million in Q2, leaving $87.3 million under its $100.0 million repurchase authorization.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Medicare changes severely pressure Wound
- Revenue declined $34.2 million, or 34.7%, to $64.4 million as Wound sales fell $39.4 million, or 61.1%, to $25.1 million. Management attributes the decline to Medicare reimbursement changes effective January 1, 2026 that reduced both pricing and volumes.
- Margin compression drove operating loss
- Gross margin fell 12.1 percentage points to 69.0% from 81.1%, reflecting lower Wound pricing and higher manufacturing costs. The resulting operating loss was $18.5 million, or a 28.7% operating margin.
- Operating cash flow turned negative
- Cash used in operations was $8.1 million for the first six months of 2026, versus $19.7 million provided a year earlier. Lower collections, incentive payments, and severance payments were key drivers.
- Receivables and credit-loss exposure
- The company reserved $14.8 million against gross accounts receivable of $56.1 million at June 30, 2026; bad-debt expense increased $5.0 million year over year in Q2 due to deteriorating credit quality among legacy customers.
- No formal risk-factor update
- Item 1A reports no material changes to the risk factors disclosed in the 2025 Form 10-K; however, the company notes numerous legal claims and lawsuits, some involving substantial amounts.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.1
- Gross margin
- 69.0%
- Operating margin
- -28.7%
- Segment
- Surgical revenue: $39.297 million, up 15.1% year over year from $34.129 million.
- Segment
- Wound revenue: $25.065 million, down 61.1% year over year from $64.476 million.
What they said about what is next.
The 10-Q provides no quantitative revenue or EPS guidance. Management states that cash, operating cash flow, and the $75.0 million available revolving facility are expected to meet operational liquidity needs for the 12 months following the filing date.
The filing reads worse than the one before it.
What came before.
- 10-Q · April 29, 2026
- MiMedx reported Q1 2026 results with net sales of $59 million, a significant 33% decline compared to the prior year, driven by a 60% drop in wound care sales, though surgical sales grew by 13%. The company posted a net…
- 10-K · February 25, 2026
- MiMedx reports continued top-line recovery and margin durability in 2025 driven by wound-care and surgical product demand, product-line expansion into xenografts and new distribution agreements, and strong free cash…
- 10-Q · October 29, 2025
- MiMedx reported strong Q3 2025 results with net sales of $113,725,000, up 35.3% year-over-year, driven by Wound (+40.0% to $77,098,000) and Surgical (+26.3% to $36,627,000). Gross margin expanded to 83.5% and operating…
- 10-Q · July 30, 2025
- MiMedx reported Q2 2025 net sales of $98.6 million, up 13.1% year-over-year, driven by Wound (+12.0% to $64.5M) and Surgical (+15.1% to $34.1M) product growth. Gross margin remained high at 81.1% while GAAP net income…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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