Revenue in Line with Guidance
Reported Q1 revenue of $20.8M, within guidance of $20.0M–$22.0M. Q2 guidance ($20.5M–$22.5M) midpoint implies ~5% year-over-year growth; company reaffirmed full-year 2026 revenue guidance of +2% to +4%.
Gross Margin Expansion
Adjusted gross margin improved to 59%, up ~300 basis points year-over-year (from ~56% in Q1 2025). Management is targeting consistent gross margins >60% and FY gross margin guidance of 58%–60%.
Strong NPI and Translational Product Momentum
New product innovation (NPI) revenue grew to >12% of total (from ~4% a year ago). The Mesh MEA, BTX and SoHo platforms now represent ~15%–20% of revenue and are expected to deliver double-digit revenue growth for the full year. Sales to pharma and biotech customers grew >20% year-over-year.
Improved Profitability Metrics Versus Prior Year Impairment
GAAP operating loss narrowed to $1.2M versus a $49.7M loss in prior year (prior included a $48M goodwill impairment). Adjusted EBITDA was $0.8M (flat YoY) and adjusted EPS improved to -$0.33 from -$1.25 a year ago.
Operational and Commercial Initiatives
Project Viking (manufacturing consolidation) remains on track and expected to yield $3M in savings in 2027 and $4M annually thereafter. Enhanced distribution with Fisher North America drove high-single-digit sales growth; leadership strengthened with hiring of an experienced SVP of Commercial; Made in China pilot launched for BTX to address local sourcing incentives.