MiMedx Cuts 2026 Sales Outlook After Wound Drop

The Tip Desk · November 10, 2026 · 3 min read

Third-quarter net sales were $62 million, down 45% from a year earlier, as the company lowered its full-year range to $250 million–$260 million.

MiMedx Group, Inc. (MDXG) reported third-quarter net sales of $62 million, down 45% from a year earlier, a steeper year-over-year decline than the 35% drop in the second quarter.

The wound-care and surgical products company said Surgical product sales rose 9% to $40.0 million, led by AMNIOFIX, AMNIOEFFECT and HELIOGEN. Surgical now represents nearly two-thirds of net sales, Chief Executive Officer Joseph H. Capper said, after 15% year-over-year Surgical growth in the prior quarter. Capper said a few discrete items dampened reported Surgical sales growth and that underlying demand remained strong across the portfolio.

Wound sales fell 71% to $22.3 million, a deeper year-over-year drop than the 61% decline in the second quarter. The company said Medicare reimbursement changes that took effect on January 1, 2026, continued to weigh on Wound performance. Wound Care Center unit volume grew 7% sequentially, after overall Wound volume had grown 22% sequentially in the second quarter. Capper said the company is beginning to see the anticipated signs of adjustment, including patient migration into Wound Care Centers.

Gross profit was $50 million. Gross margin expanded to 80% from 69% in the second quarter, while remaining below 84% a year earlier. The company said the year-over-year margin decline was driven primarily by Medicare reimbursement rules that negatively impacted Wound product prices along with unfavorable product mix. It said the sequential improvement highlighted cost-removal and manufacturing-efficiency efforts.

GAAP results swung to a $9 million net loss, or $0.06 a share, from net income of $17 million, or $0.11 a share, a year earlier. Adjusted EBITDA returned to positive $2.1 million, a 3.3% margin, after $35.0 million, or a 30.7% margin, in the year-ago quarter. Capper said cost actions from earlier in the year were fully reflected in the run rate and produced a significant sequential improvement in the GAAP net loss.

Selling, general and administrative expenses were $58 million, compared with $69 million a year earlier. The company said the decrease was driven primarily by the April cost-reduction initiative and lower commissions on lower sales, partially offset by $6 million of incremental legal and strategic expenses tied to litigation and the proposed Sanara acquisition. Research and development expenses were $3 million.

For 2026, MiMedx now expects net sales of $250 million to $260 million, below the $260 million–$290 million range it reiterated after the second quarter. The company expects fourth-quarter Adjusted EBITDA to be sequentially higher than the third quarter. Longer-term, it continues to expect annual net sales growth in the low double digits as a percentage with an adjusted EBITDA margin above 20%.

Cash and cash equivalents were $121 million as of September 30, 2026. The company repaid the remaining $17 million term loan and ended the quarter with no debt outstanding.

During the quarter, a U.S. District Court for the Northern District of Georgia vacated FDA’s determination that AXIOFILL is not a Section 361 HCT/P because it is more than minimally manipulated and FDA’s determination that AXIOFILL should be classified as a biological product rather than a medical device, remanding both matters. MiMedx also announced a patent license with a wound-care competitor that resolves infringement allegations; the licensee will pay $25 million in five equal $5 million installments, with the first installment received. Capper said the company is working with the FTC to obtain HSR clearance and looks forward to completing the Sanara MedTech acquisition.