MiMedx Cuts 2026 Sales Forecast to $260M–$290M After Q1 Sales Slide 33%
MiMedx reported first-quarter net sales of $59 million, a 33% drop year over year, driven by a 60% decline in its Wound business and a 13% increase in Surgical sales. Management now expects 2026 net sales of $260M–$290M and breakeven adjusted EBITDA, leveraging $40M in annual cost savings.
1. Q1 Financial Results
MiMedx generated $59M in Q1 net sales, down 33% year over year, with Surgical revenues up 13% and Wound sales down 60%. Gross margin fell to 71% from 81%, net loss reached $11M, and cash and equivalents stood at $160M (net cash $142M).
2. Impact of Medicare Reimbursement Changes
New Medicare reimbursement rules, including a per-square-centimeter payment cap for skin substitutes, took effect January 1 and created confusion and inconsistent implementation by Medicare Administrative Contractors. This disruption primarily pressured private offices, while sales to Wound Care Centers and Hospitals showed modest improvement late in the quarter.
3. Updated Guidance and Cost Savings
Management lowered full-year 2026 net sales guidance to $260M–$290M and now forecasts breakeven adjusted EBITDA. Cost structure adjustments are expected to generate $40M in annualized savings, positioning MiMedx for a return to profitability and targeting double-digit top-line growth in 2027.