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Image source: The Motley Fool. Wednesday, July 29, 2026 at 4:30 p.m. ET Chief Executive Officer - Joseph Capper Chief Financial Officer - Douglas Rice Head of Investor Relations - Matthew Notarianni Operator: Welcome to today's MiMedx investor conference call. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Matt Notarianni, Head of Investor Relations for MiMedx. Thank you. You may begin. Matthew Notarianni: Thank you, operator, and good afternoon, everyone. We are excited to welcome you to today's conference call where we will discuss our recently announced plans to acquire Sanara MedTech as well as MiMedx's second quarter 2026 operating and financial results. With me on today's call are Chief Executive Officer Joe Capper and Chief Financial Officer Doug Rice. As part of today's webcast, we are simultaneously displaying slides that you can follow. You can access the slides from the Investor Relations website at mimedx.com. Joe will kick us off with some opening remarks about the Sanara transaction before we continue with the summary of our second quarter 2026 operating and financial results highlights. And Doug will provide a detailed review of our results for the quarter, and then we will conclude with some additional updates before we open the line for your questions. Before we begin, I would like to remind you that our comments today will include forward-looking statements, including statements regarding future sales, operating results and cash balance growth, future margins and expenses, our product portfolios, expected market sizes for our products and expectations regarding the Sanara acquisition, including expected benefits and financial performance of the combined company. These expectations are subject to risks and uncertainties, and actual results may differ materially from those anticipated due to many factors, including competition, access to customers, the reimbursement environment and unforeseen circumstances and delays. Additional factors that could impact outcomes and our results include those described in the Risk Factors section of our annual report on Form 10-K and our quarterly report on Form 10-Q. Also, our comments today include non-GAAP financial measures, and we provide a reconciliation to the most comparable GAAP measures in our press release, which is available on our website at mimedx.com. With that, I'm now pleased to turn the call over to Joe Capper. Joe? Joseph Capper: Thanks, Matt, and good afternoon, everyone. Thank you for joining us on today's call. I am pleased to report that MiMedx is back on track to deliver dynamic growth, as we announce our intent to combine forces with Sanara MedTech to augment our already successful surgical franchise. Importantly, we are also starting to see signs of stabilization on the wound care side of the business. As expected, MiMedx was faced with an extremely challenging environment in the wound care market. We signaled on previous calls that the dramatic changes to the Medicare reimbursement system for wound care products would cause significant disruption and take some time to sort out among various constituencies. We believed the business would stabilize over time as weaker players left the market, creating an opportunity to pick up share. So far, the early signs indicate that is exactly what is happening. Moreover, our surgical business continued to post excellent performance, growing the top line 15% year-over-year. In aggregate, the company grew sequentially by 9% from Q1 to Q2. More on that in a few minutes. I want to first touch on the big news of the day. We are extremely excited to share the news that we have reached the definitive agreement to acquire all the outstanding shares of Sanara MedTech for a total consideration of $35 a share. This transformational combination will immediately create one of the largest regenerative medicine companies across numerous surgical subspecialties with an incredibly attractive financial profile. Post closing, approximately 75% of MiMedx revenue will come from Surgical and 25% from Wound. When I joined the company 3 years ago, we clarified our strategic growth plan, which included focusing on opportunities to expand our surgical business. More specifically, the plan called for targeted investments in commercial resources, new products and robust clinical research to augment our surgical footprint and take advantage of what we consider an incredibly large, growing and underserved market. As I mentioned on our last call, we have raised our surgical revenue by more than 50% over that time frame. We've also spoken about our intent to deploy capital to accelerate our surgical growth plan if we could find assets that met our acquisition criteria. We have remained disciplined in that endeavor, making only a few small investments to date. Having made my share of acquisitions over the years, I know the importance of waiting for the right opportunity. Our patience has been rewarded, as Sanara checks the critical boxes we were looking for in an acquisition. I would go so far as to say, we believe this is a perfect strategic and cultural fit. 100% of Sanara's greater than $100 million of revenue is in surgical procedures that are highly complementary to our business. They are a growth company that is profitable and immediately accretive even before synergies. Their products are 510(k) cleared and unlock $4 billion of new addressable market for us. We expect the transaction to close by year-end. In the meantime, we will solidify the integration plan in preparation for a fast start post close. In 2027, we would expect the newly combined company to generate revenue well in excess of $400 million with growth in the double digits. And with over $20 million of expected cost synergies, we would anticipate an adjusted EBITDA margin of over 20%, generating a meaningful amount of free cash flow. These metrics illustrate why we are calling this a transformational combination. The MiMedx surgical franchise, which is primarily soft tissue focused, combined with Sanara, which is roughly 2/3 musculoskeletal focused, creates a business approaching $300 million in annual surgical revenue across a wide range of subspecialties and this before factoring in the cross-selling opportunities. Sanara currently generates most of its revenue from 2 product lines. Their CellerateRX product is a bovine particulate, which accounted for approximately $80 million of LTM revenue. It is indicated for the management of surgical, traumatic and partial and full thickness wounds as well as first and second degree burns. It is supported by over 20 published clinical studies and is approved and/or contracted in over 4,000 hospitals. Market data indicates that particulates are the fastest-growing subsegment in the surgical soft tissue repair category. Sanara's BIASURGE is a no rinse irrigation solution containing an antimicrobial preservative highly effective against a broad spectrum of pathogenic microorganisms. It is indicated for use in the mechanical cleansing and removal of debris from surgical wounds and requires no secondary rinsing. The Sanara team is also excited to get OsStic approved and into the market, hopefully during Q1 of 2027. Granted breakthrough device designation by the FDA, OsStic is a synthetic injectable bone bioadhesive that we believe is a one-of-a-kind product. The initial indication being pursued is for periarticular fractures, which occur at or near the joint. Periarticular fractures have postoperative complication rates of over 35% with an average failure rate of 10% to 20% for patients with lower extremity fractures. In preclinical mechanical testing, OsStic demonstrated bonding to bone that was 40x stronger than traditional bone cement. Unlike other bone graft products, OsStic provides immediate bone adhesion and stability when traditional fixation is limited, enabling surgeons to reconstruct joints that were previously considered nonrepairable. Not only are we excited about these products and the rest of the existing portfolio and pipeline, during the diligence process, we became extremely impressed with the Sanara team, their creativity, desire to win and passion for patient care, qualities that are shared by our organization. The importance of a cultural alignment cannot be overstated. We think these teams are ideally suited to combine and grow together. We will discuss more about the acquisition in Q&A. So I'll now move on to summarize the excellent progress we made in Q2. The headline is, we experienced sequential recovery in Wound and continued strong momentum in Surgical. For the second quarter, net sales were $64 million. As expected, this was a significant year-over-year drop due to the Medicare reimbursement changes. More relevant to the current circumstances, it represented a $5 million or 9% sequential improvement. We also experienced sequential revenue growth for each month during the quarter, with June being our highest net sales month for the calendar year at $24 million. Wound care center unit volume grew by double digits on both an annual and sequential basis, a very positive sign for MiMedx amidst a struggling wound market. Our surgical revenue was up 15% year-over-year. Our adjusted gross profit margin was 74% in the quarter. We had an adjusted EBITDA loss of $8 million compared to a $12 million loss in Q1. This loss includes $5 million of additional bad debt expenses above our historic reserve levels to account for collection challenges primarily among private office accounts resulting from the Medicare reimbursement change. We expect this additional expense to be transitory. For perspective, had bad debt expenses been consistent with our historic quarterly run rate of approximately $700,000 per quarter, adjusted EBITDA in the first 2 quarters of 2026 would have been significantly better. As a reminder, we began reducing our expense structure starting in April. And by June, we trended near breakeven, a positive indicator for the second half of the year. We bought back $13 million of MiMedx stock before terminating the program as discussions develop regarding the Sanara acquisition. We ended the quarter with $119 million in net cash. We moved into full market release of the newly licensed surgical products, including G4Derm Plus, and we submitted our first two 510(k) applications, including one for a placental-derived product, both of which were accepted for review by the FDA. As we have articulated many times in the past, the company continues to pursue a long-term growth plan, which prioritizes, number one, innovation and diversification to support both our Wound and Surgical businesses; and number two, targeted investments to expand our Surgical franchise. We believe the Sanara acquisition accelerates this plan by several years. This strategy has been extremely effective. And as a result, we have continued to realize excellent growth in our Surgical segment while quickly stabilizing our Wound business. During the second quarter, the wound care market continued to work through the implications of the new Medicare reimbursement framework. The distracting factors we discussed during last quarter's call remained largely the same in Q2. The MACs are disorganized and behind in processing claims. Extremely low-priced products are being dumped on the market. Audits and clawbacks are increasing and the WISeR model is a complete disaster. At least in the case of WISeR, there is some hope for relief. The prolonged prior authorization and ineffective implementation have been devastating for patients. The resulting high complaint rates and concern for beneficiary access led to legislative directive for CMS to address the issue and report back to Congress. Corrective action with WISeR would be a welcome reprieve. Despite these headwinds, we have been making excellent progress. Given the magnitude of the Medicare reimbursement reduction from year-to-year, the only logical way to measure such progress is on a sequential basis. For Q2, our wound care volume increased 22% compared to Q1. Within wound care centers, where we have been concentrating our efforts, we achieved 44% sequential volume growth. In both cases, we achieved sequential revenue growth as well. We are still in the early stages of this transition. However, we see the sequential growth as a positive sign for MiMedx. The proposed 2027 physician fee schedule, which was published earlier this month, indicates CMS has little interest in course correcting at this time. The system and reimbursement level we have today will likely remain in place throughout next year as well. We believe that at some point, CMS will set basic requirements for proof of product safety and efficacy to qualify for reimbursement. As such, we continue to fund RCTs on 2 of our most recent product introductions. Proof of clinical effectiveness is a standard we would welcome and see as a competitive advantage for MiMedx. In summary, we are making good progress as the wound care market works through this recovery phase. Once normalized, we believe our market-leading technology with its unmatched collection of clinical evidence will continue to set the standard. I want to be clear, we remain committed to the wound care market and we will continue to persevere through the current market conditions. We never lose sight that people with chronic hard-to-heal wounds depend on our products. Turning to our Surgical business, where we continue to experience excellent momentum with 15% year-over-year growth in Q2. We saw contributions from the entire Surgical portfolio with the fastest growth in our domestic particulate subsegment, which grew 21%. At the outset of this year, we realigned our commercial team to dedicate more sales professionals to the Surgical business, and we continue to look for opportunities to augment this team even further. As I mentioned in the past, we added a few new products to the bag this year. AMNIOFIX Thyroid Shields, a new variant of our AMNIOFIX product, which is used as a protective barrier during thyroidectomy surgery is off and running. We also moved into full market release of the surgical products we licensed earlier in the year, including G4Derm Plus. In addition to deploying more direct selling resources and expanding our product portfolio, we consistently prioritize the generation of rigorous scientific and clinical evidence as a crucial part of our growth plan, some of which I highlighted during our last few calls. We've amassed a library of data that allows us to confidently state that we have the #1 most studied amniotic tissue. As you know, we've also been advocating for placental allografts to be upregulated from a 361 designation to 510(k) clearance like xenografts and synthetic skin substitutes, which will allow us to articulate specific usage claims. To that end, during Q2, we submitted our first two 510(k) applications, one of which is a placental-derived particulate product. In summary, as you've just heard, we're making good progress working through the reimbursement-related disruptions in the wound care market. We rightsized our cost structure to facilitate a return to profitability. Momentum in our Surgical business remains strong. And with today's acquisition announcement, we will transform this company and position it for tremendous growth in 2027 and beyond. Importantly, today, we are also reiterating MiMedx's full year stand-alone guidance for 2026. With that, I'll turn the call over to Doug. Doug? Douglas Rice: Thank you, Joe, and good afternoon to everyone. I would like to start by echoing Joe's enthusiasm around today's announcement. We believe that the combination of Sanara's innovative portfolio and commercial momentum together with MiMedx's growing surgical footprint will create significant value. This is a great day for both companies, and I am excited for what this means for all of our stakeholders. Today, after my standalone second quarter comments, I'll be providing some additional color around the financing of the transaction as well as our performance expectations from the combination. Notwithstanding that we believe this acquisition will close by year-end, for clarity, my comments around our performance for the second quarter and guidance for the remainder of 2026 are on a standalone basis and excludes any potential impact from the pending Sanara acquisition. Before we begin, as a reminder, many of the financial measures covered in today's call are presented on a non-GAAP basis, so please refer to our earnings release for further information regarding our non-GAAP reconciliations and disclosures, including the reconciliation tables that provide more detail regarding the adjustments made to calculate our non-GAAP measures. Turning to our results. Second quarter 2026 net sales were $64 million, a decrease of 35% compared to the prior year period, but sequential growth of 9% compared to the first quarter. By product category, Surgical net sales were $39 million, increasing 15% year-over-year; while Wound net sales were $25 million, declining 61%. This continued the trend established in the first quarter with strong Surgical growth, partially offsetting the ongoing challenges facing the Wound business. As a result, MiMedx's organic revenue mix has shifted meaningfully toward surgical and is likely to continue moving forward. Within Surgical, growth remained broad-based across the portfolio. Our flagship placental sheet products, AMNIOFIX and AMNIOEFFECT and our particulate products all generated solid year-over-year growth. We also benefited from incremental revenue contributions from G4Derm Plus, which we recently licensed, further demonstrating the strength and diversification of our surgical platform. Within Wound, the business continues to be impacted by the Medicare reimbursement changes that took effect on January 1, 2026, which significantly reduced reimbursement levels across the category. Many of the challenges we articulated during our first quarter call persisted in the second quarter. Despite these ongoing wound care reimbursement challenges, we are encouraged by improving activity levels in wound care centers and hospital outpatient settings as patient volume continues to migrate into those sites of care. As a result, Wound revenue in the second quarter increased 11% sequentially while volume improved 22%, reflecting early signs of stabilization within the business. The gross profit for the second quarter was $44 million, compared to $80 million in the prior year period; while gross margin was 69% compared to 81% last year. The decline was primarily driven by lower pricing within Wound following the Medicare reimbursement changes, unfavorable product mix as well as certain higher costs. Looking ahead, we expect gross margin to improve into the mid-70s range beginning in the third quarter, as we realize benefits from our cost reduction initiative and improved manufacturing throughput. Sales and marketing expense was $46 million or 72% of net sales compared to $48 million or 49% of net sales in the prior year period. The decrease was primarily driven by our cost reduction initiatives, which resulted in lower compensation, travel and meeting expenses. We also incurred lower commission expenses due to lower sales. These savings were largely offset by bad debt expense, which increased $5 million year-over-year. This charge primarily reflects the credit deterioration of a limited number of legacy customer accounts and is not indicative of broader portfolio trends. While we continue to aggressively pursue all collections, we do not expect any further significant bad debt charges in the back half of 2026. For the full year, we expect sales and marketing expense to be between 62% and 64% of net sales, reflecting anticipated sequential revenue growth in the second half of the year, benefits from our cost reduction actions, partially offset by the bad debt expense we incurred during the second quarter, which we don't expect to recur as we expect our accounts receivable collections to improve. General and administrative expense was $13 million compared to $16 million in the prior year period. The decrease was primarily driven by lower compensation expense following our cost reduction initiatives. This was partially offset by increased legal expenses associated with ongoing legal matters. In the back half of 2026, we expect the amount of GAAP G&A expense to be consistent with the second quarter. Research and development expense was $3 million or 4% of net sales, representing a decrease of 16% compared to the prior year period. The reduction was primarily driven by lower personnel costs following our cost reduction initiatives. We expect R&D expense to remain relatively consistent throughout the remainder of 2026, averaging approximately $3 million to $3.5 million per quarter. Our effective income tax rate for the quarter was 17% compared to 26% in the prior year period. Our effective tax rate was impacted by the timing and deductibility of compensation-related expenses as well as vestings of restricted stock. We continue to expect our long-term non-GAAP effective tax rate to be approximately 25%. GAAP net loss was $15 million or $0.10 per share compared to GAAP net income of $10 million or $0.06 per share in the prior year period. Adjusted net loss for the second quarter was $7 million or $0.05 per share compared to adjusted net income of $15 million or $0.10 per share in the prior year period. The decline primarily reflects the impact of the lower Wound profitability, partially offset by savings realized from our restructuring and cost-reduction initiatives. Adjusted EBITDA was negative $8 million or negative 13% of net sales compared to positive adjusted EBITDA of $24 million or 25% of net sales in the prior year period. We remain focused on executing our operational initiatives and expect adjusted EBITDA to improve sequentially throughout the remainder of the year, while exiting the year in Q4 in the high single digits as a percent of revenue. Turning to liquidity. We ended the quarter with $119 million in net cash, an increase of $19 million compared to the prior year period. During the quarter, we deployed $13 million under our share repurchase plan and incurred $4 million of one-time severance costs related to our cost reduction initiatives. Even after these uses of cash, we continue to maintain a strong balance sheet and significant financial flexibility, enabling us to more efficiently finance the transaction with Sanara. As Joe mentioned in his opening comments, today we are reiterating our standalone financial outlook for 2026, which calls for full-year net sales of between $260 million and $290 million and adjusted EBITDA approaching breakeven on a full-year basis. Turning our attention back to our pending combination with Sanara. We have secured committed financing for the acquisition with a $300 million term loan from Hayfin Capital Management. The 6-year note will carry interest at SOFR plus 6.25% and is subject to various covenants over the duration of the loan. As you may recall, Hayfin was previously a lender to the company, and we appreciate our long-standing relationship with the team and look forward to working with them again. On a related note, as we move toward the closing of this acquisition, we initiated this week the prepayment of our existing term loan with Citizens and Bank of America later this week. We could not be more appreciative of the partnership with both of these banks over the last several years. Regarding our anticipated 2027 financial performance following the Sanara acquisition, as Joe mentioned, and assuming a 2026 closing, we expect the combined company's top line to be well in excess of $400 million. Coupling strong top-line growth with the realization of at least $20 million of annualized cost synergies, we also expect an adjusted EBITDA margin of at least 20% in 2027, generating strong cash flow and strengthening our balance sheet. This level of anticipated profitability will also enable us to rapidly de-lever to under 3x adjusted EBITDA by the end of the first full year as a combined company. I will now turn the call back to Joe. Joe? Joseph Capper: Thanks, Doug. As you just heard, our wound business is recovering nicely. Surgical franchise continues to excel, and we have just put the company in position to execute an extremely transformational merger, creating one of the most attractive regenerative medicine companies in the market. We have a lot of work to do over the next few months to bring the deal to a successful conclusion and welcome the Sanara team to the family. In closing, I would like to once again thank the entire MiMedx team for your persistence and focus as we navigate the profound changes and opportunities that face our company. Because of your dedication and never-quit mindset, we remain in a competitively strong position and believe our future is incredibly bright. Now let's shift over to Q&A and open the call to questions. Operator, we are ready for our first question. Please proceed. Operator: [Operator Instructions] Our first question comes from the line of Chase Knickerbocker with Craig-Hallum. Chase Knickerbocker: Maybe just to start for me, Joe, I just wanted to dig in a little bit further on kind of what makes this deal the right one, a little bit more kind of specifically on the product side. So I'd imagine Cellerate was kind of central here, but maybe just take us through the 3 major Sanara products and your thoughts on kind of the synergies versus the overlap and kind of the specifics of the products as well as far as kind of what kind of drew this deal being the right one. Joseph Capper: Yes, thanks, Chase. You know, before I jump into that, I don't want to lose sight on the fact that we had an outstanding quarter. This is an exciting deal, but it should not overshadow the fact that we made meaningful progress in Q2. Surgical revenues were up 15%, once again. We made great progress in the wound care market. We talked about our sequential volume growth in wound care centers of 22% or in wound care overall; in wound care centers, sequential volume growth was up 44%. And in wound care centers, we even had year-over-year volume growth. That is meaningful progress. We talked about taking out a fair amount of expense, get us back to profitability, which we saw towards the end of the quarter. We had sequential revenue growth for the company in aggregate 9%, which was phenomenal performance. June revenue was $24 million. If you took that June revenue and just figured we did that on the average for the back half of the year on a monthly basis, you're already within range, the range that we put out for revenue. If we stop there, that's fantastic news. Now adding the Sanara acquisition. Yes, this is a deal that makes a ton of sense for us. You've heard us talk about the importance of expanding our Surgical portfolio on every one of these calls. We've licensed a few products, and we've seen excellent growth. That's where investments have been in terms of additional commercial resources, clinical data, et cetera. This just accelerates that plan. As you mentioned, most of their LTM revenue comes from the CellerateRX product. It's well-penetrated into the marketplace. We think we can help expand that even further, given the reach of our commercial organization. The second product that accounts for a fair amount of sales is their BIASURGE product, which is a rinse product. I talked about it in my prepared comments. Super excited about that as well. We think our direct team can do more with that, frankly, and we think there's a possibility to take a variant of that into the wound care center, which is, frankly, they haven't really penetrated much because that's not where their reach is today. And then I also mentioned the OsStic product, which is a bone adhesive product that's in development. And that frankly is another product that we're super excited about. So all of these things together and other products that they have in development made a ton of sense for us. We've been working with their team who started back in 2025, got to know them a lot better over the course of this process and are super impressed with the people in that organization. That's probably the most important thing for me, when I look at combining companies. If you don't have cultures that match up, it's just not going to work. So the more we got to know them, the more excited we got about this potential deal. Chase Knickerbocker: Joe, could you maybe just touch on kind of the momentum that you've seen kind of continuing through July? I would imagine that, that kind of ending the quarter at $24 million that was probably a kind of a steep increase from kind of what you had seen in April per your commentary on the Q1 talk. So can you just maybe talk about kind of how that momentum has continued through July? And then just a point of clarification, could you just give us a sense for what portion of your Wound business at this stage is HOPD, wound care center relative to the other sites of service and just kind of how what you're seeing is kind of differing in those different sites of service at this point. Joseph Capper: Well, that's -- HOPD is where all the growth is coming from. We're not seeing any sequential growth anywhere else. But we have not broken them by sites of service. As far as July, since it's not over, I'm not going to comment on it. But suffice it to say, we continue to see good momentum in our business. Chase Knickerbocker: Is it fair to say you've seen continued improvement, Joe? Joseph Capper: We continue to see good momentum across our business. Operator: Your next question comes from the line of Frank Takkinen with Lake Street Capital Markets. Frank Takkinen: Congrats on the quarter and the acquisition, of course. We would like to start with one on the acquisition as well. We'd like to cover the overlap question. You mentioned Sanara has over 4,000 accounts that they have contracts with, but I believe they have about 1,500 that they are active within. Realizing you're probably early and looking at all that overlap, maybe talk to how much of those incremental 2,500 you may already have relationships? And then two, on their sales force, how much overlap do you have on those geographies and where might you be able to expand or see synergies from either side? Joseph Capper: Thanks, Frank. Way too early to talk about that level of specificity. We just signed this deal today. We will work very closely with the Sanara team over the next few months to develop a well thought-out integration plan that takes into account best practices from both organizations, and certainly we're going to look to see where we have overlap and where we have potential gaps that we could augment. But it's kind of too early to start going into the details of what that looks like. Frank Takkinen: Okay. Fair enough. And then maybe one on any overlapping products across your 2 portfolios where you could see some potential cannibalization in either direction or any thoughts on that? Joseph Capper: No, for the most part, we view the 2 portfolios as extremely complementary. And the products -- and I would say even the physicians that we're targeting are incredibly complementary and the procedures that we're targeting are incredibly complementary. There may be some overlap, but I think it's minimal. Frank Takkinen: Okay, fair enough. And then maybe back on the Wound business. You made a couple comments on MACs and it feels like there's some recovery there, but maybe take us a little bit deeper into how that trend line has looked? And I assume that has a good contributor to why your June was as good as it is. So any other additional color around the MACs would be greatly appreciated. Joseph Capper: Yes, I can't share market data because I don't -- I'm not really getting great market data on the wound care business today. I could just talk about what we're seeing. And I outlined those percent increases on a sequential basis. What we anticipated was patients would start to migrate into the wound care centers. And certainly that seems like that has happened, right? And we have a pretty good position in that segment and is likely why our business is trending the way it is. I can't speak for other companies. I'm not sure how everybody's doing, but -- and so I can't really speak to the wound care market at large. I just know that we have a strong position there and our business is turning in a very positive direction. So remember, though, we're still in kind of the early recovery phase. There's a lot of noise in the market. We talked about challenges at the MAC level to process claims. We've mentioned the challenges with CMS's implementation of the WISeR model, which is really impacting us in 4 states. That's been a real headwind. There's a lot of customers that have left the business. Folks are being plagued with audits and clawbacks that they're trying to work their way through. All of that just creates challenges in the overall market. In spite of that, we're seeing fairly good progress, again, specifically in wound care centers. Operator: Your next question comes from the line of David Turkaly with Citizens JMP. David Turkaly: Congrats on the transaction and the performance, the sequential uptake. I don't know if you're going to be willing to talk about some of the details here, but I'll throw a couple out and see if you can expand on them. The $20 million in synergies, you know, given that you're placental and their collagen and synthetic, could you just talk about where you think you're going to get those and specifically from what bucket? Douglas Rice: Yes, Dave, this is Doug. Good question. I think the way we look at it is the synergies are going to be derived from your typical public-to-public acquisition overlaps. So we'll get more than half of the $20 million from G&A, and the rest of it will be spread around. David Turkaly: I guess the other 1 I had, there was a comment in the release that said, driving strong profitability post-close. Was that comment intended to mean EBITDA, or does that actually mean bottom line, like net income? Douglas Rice: Well, we look at the whole gamut of financial measures, but primarily EBITDA is our focus initially. And we'll exit the year on a positive note from an organic perspective. And Sanara already has a strong track record of healthy flow through on their side, coupled with the synergies that we expect, we expect a really healthy financial profile after the combination. Joseph Capper: Yes, it's really rare that you can execute an acquisition like this, it's immediately accretive up and down the P&L. So that's really exciting. We'll be profitable as a stand-alone company in the back half of the year. Sanara is already running at a fairly decent adjusted EBITDA margin, and then we'll have the combination synergies on top of that. So we feel pretty good about the direction of the company in terms of both revenue and profitability. David Turkaly: One last one I'll just throw out there, Doug. I don't know if you have this number off the top of your head, but given the stock component of the deal, do you have an estimate of what the shares outstanding will be in '27? Douglas Rice: All in, Dave, we're at roughly 150 million shares today and we're going to issue just over 4 million new shares, if that gives you an idea about total going forward. Matthew Notarianni: Yes. And Dave, just to pile on there in the Q, there's some disclosure we talked about the share repurchase, which took 3.5-or-so million out in the second quarter. So there's kind of a netting effect. I mean, it's slightly higher, but, don't think of it as an all-in extra 4.5 million. Joseph Capper: Yes, excellent point, Matt. We took out close to 3.5 million shares at $3.67. We'll reissue about 4.2 million shares and it's -- so a net increase of about 700,000 shares to our float since the time we executed our buyback program. And obviously, we stopped the buyback program as this deal got closer to looking likely. Operator: Your last question comes from the line of Bradley Bowers with Mizuho Securities. Bradley Bowers: Maybe to ask one kind of on the reverse side. I mean, looking at the Sanara business, some pretty attractive things about it, $100 million-or-so revenue-base, 90%-plus gross margins, why is it the right time for this business to kind of be selling to MiMedx? Honestly on the surgical side, I think, similar EV, similar-sized businesses. So just wanted to kind of hear about what they've seen and why they're selling? And then if it is that growth was kind of slowing, how MiMedx can kind of take it to the next leg? Joseph Capper: Brad, I'm not going to speak for them. I will tell you that they are still incredibly bullish on their business. They have a robust product portfolio. They have more products in the pipeline. They've been resourcing the business. They streamlined it a bit last year. They saw nice growth last year, nice growth into this year. So you would have to ask them why this made sense for them to do it and why this was the right time. Bradley Bowers: Okay, sure thing, that makes sense. Just thinking about, I guess, the gap between the $100 million of revenue that's being bought and the $4 billion of new TAM, you know, clearly under-penetrated. And just wanted to hear about, I guess, what's available maybe near term and what level of investment is required to get maybe some of the other pieces of the new TAM? Joseph Capper: I think just with our larger commercial presence and the momentum that they've built up behind their portfolio, we'll find a lot of cross-selling opportunities. And again, you mentioned the TAM. It is a big TAM. It is under-penetrated. These markets are still in development. Use of these types of products in a variety of different surgical subspecialties is still in development, which is frankly quite exciting for us. So I think there's a ton of upside here. Bradley Bowers: And then just one on the core business, just obviously, again, buying a good amount of EBITDA here, obviously nice that it's an accretive deal. Just wanted to hear about what was implied on the core business? I think you guys have actually been pretty good with guiding us on the Wound business. So there's some visibility here and it sounds like next year would be better, so maybe just, I don't know if you're willing to give kind of what core EBITDA would have been, obviously 20% with the deal, but it might imply something like low double digits for the core business. Just wanted to hear about recovery and the next year expectations? Douglas Rice: Yes, I will start and you can provide color. We expect to be profitable in the back half of the year, Brad, for all the reasons that we articulated in the script and just consistent with our prior quarter call. So we'll exit the year on a strong sequential revenue growth and strong flow through, which we expect to carry into 2027 as we sort of get back to not just double digits, but certainly well into the double digits in terms of just organic flow through for next year. Just based on everything that we know about our new products, our launches and momentum both in Wound and Surgical, we expect to grow in both of those franchises. Joseph Capper: Yes, you could put the pieces together. This 2026 is clearly a reset year for the wound care business, and we continue to see great momentum in Surgical. So you reset the business in 2026. If you're back to normal growth rates for the business overall in 2027, you know that, that chunk of our business is up $300 million-plus. And then you add these guys in, we're saying conservatively we're over $400 million. We're not saying how much over $400 million because we're still in the early stages of this. And I think the 20-plus percent EBITDA margin is also very safe. We're being conservative there as well. Bradley Bowers: Congrats on the deal. Joseph Capper: Thank you. Operator: This now concludes our question-and-answer session. I would like to turn the floor back over to Joe Capper for closing comments. Joseph Capper: Thanks, operator. Thanks, everybody, for your continued interest in the company. At this point, we'll conclude the call, and we'll talk to you all at the end of next quarter. Thank you very much. Operator: Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines, and have a wonderful day. Before you buy stock in MiMedx Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and MiMedx Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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This article first appeared on GuruFocus. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. MiMedx Group Inc (NASDAQ:MDXG) reported strong sequential revenue growth of 9% from Q1 to Q2 2026, with June being the highest net sales month of the year at $24 million. The surgical business continued its excellent momentum with 15% year-over-year growth in Q2, driven by broad-based portfolio strength and a 21% increase in the domestic particulate subsegment. The acquisition of Sanara MedTech is expected to be immediately accretive and transformational, creating a combined company with over $400 million in revenue and a 20%+ adjusted EBITDA margin in 2027. Wound care volume showed early signs of stabilization, with a 22% sequential increase overall and a 44% sequential increase in wound care centers, indicating market recovery. The company ended Q2 with a strong balance sheet of $119 million in net cash and expects to rapidly deleverage to under 3 times adjusted EBITDA by the end of the first full year post-acquisition. Net sales decreased 35% year-over-year in Q2 due to significant Medicare reimbursement changes in the wound care market, which continue to pressure the business. Adjusted EBITDA was a loss of $8 million in Q2, impacted by $5 million in additional bad debt expenses from collection challenges related to Medicare changes. Gross margin declined to 69% from 81% in the prior year, driven by lower wound pricing, unfavorable product mix, and higher costs. The wound care market remains challenging with disorganized MACs, low-price product dumping, increased audits and clawbacks, and a problematic WiSE model that is hurting patient access. The proposed 2027 physician schedule indicates CMS is unlikely to course-correct on reimbursement levels, suggesting current headwinds will persist through next year. Here are the key highlights from the MiMedx Group Inc (NASDAQ:MDXG) Q2 2026 earnings call. Warning! GuruFocus has detected 2 Warning Sign with MDXG. Is MDXG fairly valued? Test your thesis with our free DCF calculator. Q: What are the strategic and financial benefits of acquiring Sanara MedTech, and how does it fit into MiMedx's growth plan? A: (Joe Capper, CEO) This is a transformational combination that immediately creates one of the largest regenerative medicine companies. It perfectly fits our strategy to expand our surgical franchise. Sanara is a profitable, high-growth company with 510(k)-cleared products that unlock a $4 billion new addressable market. The deal is immediately accretive, and we expect the combined company to generate revenue well in excess of $400 million in 2027, with double-digit growth and an adjusted EBITDA margin of over 20% after realizing at least $20 million in cost synergies. Q: Can you provide more detail on the specific Sanara products that were most attractive and the potential for cross-selling? A: (Joe Capper, CEO) The portfolio is highly complementary. Their lead product, Accelerate Rx (a bovine particulate), is well-penetrated in hospitals and we believe our commercial reach can expand it further. Their Biosurge (a no-rinse irrigation solution) has potential for a wound care variant, a market they haven't penetrated. We are also very excited about their pipeline product, Ostic, a synthetic injectable bone bioadhesive with breakthrough device designation. The cultural fit with the Sanara team was also a critical factor in our decision. Q: What are the early signs of stabilization in the wound care business, and what is the outlook for the rest of 2026? A: (Joe Capper, CEO) We are seeing clear signs of recovery. Wound care center unit volume grew by 44% sequentially from Q1 to Q2, and overall wound volume grew 22% sequentially. This is driven by patient migration to wound care centers. While the market is still noisy with challenges like MAC disorganization and the WISE model, our strong position in wound care centers is a positive sign. We are reiterating our full-year 2026 standalone guidance of $260-$290 million in net sales and adjusted EBITDA approaching break-even. Q: Where will the $20 million in cost synergies from the Sanara acquisition be realized? A: (Doug Rice, CFO) The synergies will be derived from typical public-to-public acquisition overlaps. We expect more than half of the $20 million to come from general and administrative (G&A) expenses, with the remainder spread across other areas of the business. Q: How will the acquisition be financed, and what is the expected deleveraging timeline? A: (Doug Rice, CFO) We have secured committed financing with a $300 million term loan from Hayen Capital Management. The six-year note carries an interest rate of SOFR plus 6.25%. We expect the combined company's strong profitability and cash flow generation to allow us to rapidly delever to under 3 times adjusted EBITDA by the end of the first full year as a combined company. Q: What is the expected impact of the acquisition on MiMedx's share count? A: (Doug Rice, CFO) We are issuing just over 4 million new shares as part of the deal. However, this is partially offset by the 3.5 million shares we repurchased in Q2 at an average price of $3.67. The net increase to our share float is approximately 700,000 shares. Q: Can you elaborate on the performance of the surgical business in Q2 and the drivers of its 15% year-over-year growth? A: (Joe Capper, CEO) The surgical business continues to show excellent momentum. Growth was broad-based across the portfolio, with the fastest growth coming from our domestic particulate subsegment, which grew 21%. We also benefited from new product launches like the Amniotic Thyroid Seal and the full market release of licensed products like Gellroderm Plus. This growth is a direct result of our strategic focus on expanding our commercial resources and product portfolio in the surgical space. Q: What is the outlook for gross margins in the second half of 2026? A: (Doug Rice, CFO) We expect gross margin to improve into the mid-70% range, beginning in the third quarter. This improvement will be driven by the benefits from our cost reduction initiatives and improved manufacturing throughput. Q: Regarding the $5 million increase in bad debt expense in Q2, is this a recurring issue? A: (Doug Rice, CFO) No, we do not expect this to recur. The increase was due to credit deterioration in a limited number of legacy customer accounts, primarily private offices impacted by the Medicare changes. We are aggressively pursuing collections and do not expect any further significant bad debt charges in the back half of 2026. Q: What is the status of the company's 510(k) submissions and the regulatory strategy for placental-derived products? A: (Joe Capper, CEO) During Q2, we submitted our first two 510(k) applications, one of which is for a placental-derived particulate product. Both were accepted for review by the FDA. This is a key part of our strategy to move placental allografts from a 361 designation to 510(k) clearance, which will allow us to articulate specific usage claims and create a competitive advantage. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. The acquisition of Sanara MedTech is a transformational pivot that shifts MiMedx's revenue mix to approximately 75% Surgical, accelerating the company's long-term growth plan by several years. Management attributes the 15% year-over-year Surgical growth to targeted investments in commercial resources and the successful launch of new products like AMNIOFIX Thyroid Shields and G4Derm Plus. The Wound care business is showing early signs of stabilization, with management observing a migration of patient volume into wound care centers and hospital outpatient settings following Medicare reimbursement disruptions. Management believes the current 'disorganized' Medicare environment is driving weaker players out of the market, creating a long-term opportunity for MiMedx to capture market share through its superior clinical evidence. Operational efficiency improved throughout the quarter, with cost-reduction initiatives implemented in April leading the company toward a breakeven run rate by June. The company is advocating for the upregulation of placental allografts to 510(k) clearance to allow for specific usage claims, having submitted its first two applications to the FDA during the quarter. For 2027, the combined company is projected to generate revenue well in excess of $400 million with double-digit growth and an adjusted EBITDA margin exceeding 20%. Management expects to realize at least $20 million in annualized cost synergies, with more than half derived from G&A overlaps and with the remaining synergies expected to be spread across various areas of the business. The financial framework assumes the transaction will close by year-end 2026, with the combined entity expected to rapidly de-lever to under 3x adjusted EBITDA by the end of the first full year. Future growth in the Wound segment is predicated on the assumption that CMS will eventually require proof of product safety and efficacy, a standard MiMedx is proactively preparing for through ongoing RCTs. The product pipeline includes the anticipated Q1 2027 market entry of OsStic, a breakthrough synthetic bone bioadhesive that management believes will address high failure rates in periarticular fractures. Q2 results included a $5 million transitory bad debt expense, primarily reflecting credit deterioration among private office accounts impacted by Medicare reimbursement changes. The company secured a $300 million term loan from Hayfin Capital Management to finance the Sanara acquisition, carrying an interest rate of SOFR plus 6.25%. Management flagged the WISeR model implementation in four states as a 'complete disaster' and a significant headwind for patient access, though they hope for legislative relief. MiMedx terminated its share repurchase program during the quarter after buying back approximately 3.5 million shares to preserve capital for the Sanara transaction. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management emphasized that Sanara's CellerateRX and BIASURGE products are highly complementary to MiMedx's soft tissue focus, with minimal overlap in targeted procedures. The deal provides access to a $4 billion TAM and offers cross-selling opportunities, such as taking Sanara's rinse products into MiMedx's established wound care center network. Joe Capper highlighted cultural alignment as a critical factor, noting that the two teams share a similar 'desire to win' and passion for patient care. Management confirmed that all sequential growth in the Wound business is coming from Hospital Outpatient Departments (HOPD) and wound care centers. While June was the strongest month of the year at $24 million in revenue, management noted the market is still in an 'early recovery phase' with significant noise from audits and claim processing delays. The company reiterated that they are not seeing sequential growth in private office settings at this time. Joseph Capper clarified that the acquisition is expected to be immediately accretive even before factoring in synergies. The 20% adjusted EBITDA margin target for 2027 is characterized by management as a 'conservative' floor for the combined company. The share count for the combined entity is expected to be approximately 150 million shares, as the new issuance is largely offset by recent buybacks.

Reports Second Quarter Net Sales of $64 Million Reiterates Full Year Financial Outlook on a Standalone Basis Announces Plans to Acquire Sanara MedTech Management to Host Conference Call Today, July 29, 2026, at 4:30 PM ET MARIETTA, Ga., July 29, 2026 (GLOBE NEWSWIRE) -- MiMedx Group, Inc. (Nasdaq: MDXG) (“MIMEDX” or the “Company”), today announced operating and financial results for the second quarter 2026. Joseph H. Capper, MIMEDX Chief Executive Officer, commented, "During the second quarter, we delivered another strong performance in our Surgical franchise, with 15% year-over-year revenue growth balanced across our sheet and particulate products. Our sustained momentum in several Surgical settings represents a meaningful, long-term growth opportunity for the Company, and we are focused on expanding into other procedures." Mr. Capper continued, "Meanwhile, our Wound business saw positive signs of recovery during the quarter as the industry navigates adjustments in the reimbursement landscape and the resulting implications for patient care. On a sequential basis, our overall Wound volume grew 22%, with volume in hospital outpatient departments and wound care centers growing at an even higher rate. This is clear evidence of the shift in behavior we have long predicted and expect to continue, particularly as Medicare remains committed to this new payment structure into 2027." "Early in the second quarter, we took swift action to right-size our expense structure for the current market environment, which yielded improving results throughout the quarter, putting us on a path back to profitability for the second half of the year. We're encouraged by our sequential progress in the near-term, and our teams continue to excel at achieving our strategic objectives. To that end, we are reiterating our full-year 2026 net sales guidance range of $260-290 million. Given the momentum of our Surgical franchise and numerous other growth drivers, we believe MIMEDX is optimally positioned to emerge from the current transition stronger than others. Additionally, with today’s announcement to acquire Sanara MedTech, we are accelerating our plan to create long-term success and shareholder value," concluded Mr. Capper. Second Quarter 2026 Results Discussion Net Sales MIMEDX reported net sales for the three months ended June 30, 2026 of $64 million, compared to $99 million for the three months ended June 30, 2025, a decrease of 35%. During the quarter, Surgical product sales increased 15% compared to the prior year period, led by sales of AMNIOFIX® and AMNIOEFFECT®. These results were offset by a year-over-year decrease in Wound sales of 61%. The performance of the Wound business in the quarter was negatively impacted by several Medicare reimbursement changes that went into effect on January 1. Gross Profit and Margin Gross profit for the three months ended June 30, 2026, was $44 million, compared to $80 million the prior year period. Gross margin for the three months ended June 30, 2026 was 69%, compared to 81% in the prior year period. The quarter-over-quarter decline in gross margin was driven primarily by the Medicare reimbursement rules negatively impacting the prices of our Wound products. Unfavorable product mix and other, one-time non-recurring expenses in connection with our cost reduction actions also contributed to the decline. Operating Expenses Selling, general and administrative ("SG&A") expenses for the three months ended June 30, 2026, were $60 million compared to $64 million for the three months ended June 30, 2025. The decrease in SG&A was driven primarily by lower expenses as a result of the cost reduction initiative announced in April as well as lower commissions on lower sales. These impacts were offset by higher bad debt expense, which increased $5 million, year over year, due to the credit deterioration of certain, legacy customers. Research and development ("R&D") expenses for the three months ended June 30, 2026 and 2025 were $3 million and $3 million, respectively. R&D spend in the quarter reflects ongoing investments in the development of future products in our pipeline, including the costs associated with two 510(k) applications we made to the United States Food & Drug Administration. Net (Loss) Income Net loss for the three months ended June 30, 2026 was $15 million compared to net income of $10 million for the three months ended June 30, 2025. Cash and Cash Equivalents As of June 30, 2026, the Company had $136 million of cash and cash equivalents compared to $166 million as of December 31, 2025. As of June 30, 2026, our cash position, net of debt on our balance sheet, was $119 million. MIMEDX to Acquire Sanara MedTech MIMEDX today also announced that it has entered into a definitive agreement to acquire all of the outstanding shares of Sanara MedTech Inc. (Nasdaq: SMTI) (“Sanara”) in a cash and stock transaction valued at $35 per Sanara share with a total enterprise value of approximately $350 million. Under the terms of the agreement, Sanara shareholders will receive $33.00 in cash and 0.4735 shares of MIMEDX common stock for each share of Sanara common stock they own, which represents a value of $2.00 per share, calculated based on the average closing price of MIMEDX common stock of $4.22 for the last five consecutive trading days through and including July 28, 2026. The merger consideration represents a premium of 46% to Sanara’s 30-day volume weighted average share price as of July 28, 2026. MIMEDX expects to finance the cash portion of the transaction through a combination of cash on hand and a new, committed debt financing in the form of a $300 million term loan, which has been secured with Hayfin Capital Management, LLP. In connection with the execution and delivery of definitive documentation with respect to the debt financing by Hayfin, MIMEDX’s existing credit agreement will be terminated and all amounts outstanding will be repaid in full. The transaction has been unanimously approved by the board of directors of both companies and is expected to close by the end of the year, subject to approval by Sanara shareholders, the receipt of required regulatory approvals and other customary closing conditions. Financial Outlook For 2026, MIMEDX continues to expect 2026 net sales to be in a range of $260 to $290 million. 2026 Adjusted EBITDA is expected to approach breakeven on a full year basis. Longer-term, the Company continues to expect to achieve annual net sales growth in the low double-digits with an adjusted EBITDA margin above 20%. Conference Call and Webcast MIMEDX will host a conference call and webcast to review its second quarter 2026 results on Wednesday, July 29, 2026, beginning at 4:30 p.m., Eastern Time. The call can be accessed using the following information: Webcast: Click here U.S. Investors: 877-407-6184International Investors: 201-389-0877Conference ID: 13761338 A replay of the webcast will be available for approximately 30 days on the Company’s website at www.mimedx.com following the conclusion of the event. Important Cautionary Statement This press release includes forward-looking statements, including statements regarding (i) our 2026 and longer term financial goals and expectations for future financial results, including revenue, net sales growth and Adjusted EBITDA margin; (ii) growth opportunities, including in the Surgical setting; (iii) the continued impact of the Medicare reimbursement changes on our Wound Business; ; (iv) the impact of our restructuring and cost reduction initiatives, including expected cost savings, on our future profitability and growth; and (v) our agreement to acquire Sanara, including the expected benefits of the acquisition, expected closing date and the funding sources for the acquisition consideration.. Additional forward-looking statements may be identified by words such as "believe," "expect," "may," "plan," “goal,” “outlook,” "potential," "will," "preliminary," and similar expressions, and are based on management's current beliefs and expectations. Forward-looking statements are subject to risks and uncertainties, and the Company cautions investors against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ from expectations include: (i) future sales are uncertain and are affected by competition, access to customers, patient access to healthcare providers, the new reimbursement environment, which introduced tighter coverage parameters, lower reimbursement levels in certain categories, and incremental administrative complexity for providers and many other factors; (ii) the Company may change its plans due to unforeseen or evolving circumstances and market response to the reimbursement rules; (iii) the results of scientific research are uncertain and may have little or no value; (iv) our ability to sell our products in other countries depends on a number of factors including adequate levels of reimbursement, market acceptance of novel therapies, and our ability to build and manage a direct sales force or third party distribution relationship; (v) the effectiveness of amniotic tissue as a therapy for particular indications or conditions is the subject of further scientific and clinical studies; (vi) we may alter the timing and amount of planned expenditures for research and development based on regulatory developments; (vii) Medicare spending; (viii) changes in the size of the addressable market for our products and (ix) the inability of the Company to successfully or timely consummate the acquisition of Sanara or, if consummated, failure to realize the anticipated benefits of the acquisition of Sanara. The Company describes additional risks and uncertainties in the Risk Factors section of its most recent annual report and quarterly reports filed with the Securities and Exchange Commission. Any forward-looking statements speak only as of the date of this press release and the Company assumes no obligation to update any forward-looking statement. Important Information and Where to Find It In connection with the proposed transaction, MIMEDX intends to file with the SEC a registration statement on Form S-4 that will include a proxy statement of Sanara and that also constitutes a prospectus of MIMEDX. Each of MIMEDX and Sanara may also file other relevant documents with the SEC regarding the proposed transaction. This communication is not a substitute for the proxy statement/prospectus or registration statement or any other document that MIMEDX or Sanara may file with the SEC. The definitive proxy statement/prospectus (if and when available) will be mailed to stockholders of Sanara. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain free copies of the registration statement and proxy statement/prospectus (if and when available) and other documents containing important information about MIMEDX, Sanara and the proposed transaction, once such documents are filed with the SEC through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by MIMEDX will be available free of charge on MIMEDX’s website at https://investors.mimedx.com/. Copies will also be available at no charge at the Investors Relations section of Sanara’s website at https://ir.sanaramedtech.com/. Participants in the Solicitation Sanara, MIMEDX and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information about the directors and executive officers of Sanara, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in Sanara’s proxy statement for its 2026 Annual Meeting of Stockholders, which was filed with the SEC on April 17, 2026. Information about the directors and executive officers of MIMEDX, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in MIMEDX ’s proxy statement for its 2026 Annual Meeting of Stockholders, which was filed with the SEC on April 29, 2026. Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC regarding the proposed transaction when such materials become available. Investors should read the proxy statement/prospectus carefully when it becomes available before making any voting or investment decisions. You may obtain free copies of these documents from Sanara and MIMEDX using the sources indicated above. No Offer or Solicitation This communication does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy any securities or a solicitation of any vote or approval with respect to the proposed transactions or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. About MIMEDX MIMEDX is a pioneer and leader focused on helping humans heal. With more than a decade and a half of helping clinicians manage chronic and other hard-to-heal wounds, MIMEDX provides a leading portfolio of products for applications in the wound care, burn, and surgical sectors of healthcare. The Company’s vision is to be the leading global provider of healing solutions through relentless innovation to restore quality of life. For additional information, please visit www.mimedx.com. Contact:Matt NotarianniInvestor [email protected] Selected Unaudited Financial Information Reconciliation of Non-GAAP Measures In addition to our GAAP results, we provide certain non-GAAP measures including Adjusted EBITDA and related margins, Free Cash Flow, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Net Income, and Adjusted Earnings Per Share ("Adjusted EPS"). We believe that the presentation of these measures provides important supplemental information to management and investors regarding our performance. These measures are not a substitute for GAAP measures. Company management uses these non-GAAP measures as aids in monitoring our ongoing financial performance from quarter-to-quarter and year-to-year on a regular basis and for benchmarking against comparable companies. These non-GAAP financial measures reflect the exclusion of the following items: Share-based compensation - expense recognized related to awards to employees and our board of directors issued pursuant to our share-based compensation plans. This expense is reflected amongst cost of sales, research and development expense, and selling, general, and administrative expense in the unaudited condensed consolidated statements of operations. Amortization of acquired intangible assets - reflects amortization expense recognized solely related to assets which were acquired as part of a transaction. These expenses are generally reflected in cost of sales in our unaudited condensed consolidated statements of operations. Transaction-related expenses – reflects expenses incrementally incurred resulting from the consummation of material strategic transactions or the integration of acquired assets or operations into our core business. These expenses are generally reflected in selling, general and administrative expense and other expense, net in our unaudited condensed consolidated statements of operations. Strategic legal and regulatory expenses - relates to litigation and regulatory expenses deemed strategically important to our operations. Litigation expenses primarily relate to legal fees incurred and relate to suits filed against former employees and their employers for violation of non-compete and non-solicitation agreements and certain patent infringement matters. Regulatory expenses relate to legal fees incurred stemming from action taken against the United States Food & Drug Administration ("FDA") surrounding the designation of one of our products. These expenses are generally reflected in selling, general and administrative expense in our unaudited condensed consolidated statements of operations. Reorganization expense - expenses incurred toward the realignment of our operating strategy. These expenses relate to severance expenses related to certain executive leaders and other employment actions, including the implementation of our cost reduction initiative during the second quarter of 2026. These expenses are reflected as a component of cost of sales, selling, general and administrative expense, and research and development expense in the unaudited condensed consolidated statements of operations. Strategic software implementation costs - incremental expenses incurred toward the implementation of software as a service arrangements which are not capitalizable under GAAP and are determined to be material to the Company's core operations. These expenses are reflected in the caption of the unaudited condensed consolidated statements of operations which is commensurate with the intended use of the software. For the quarter ended June 30, 2026, this is primarily cost of sales. Long-term effective income tax rate adjustment - for purposes of calculating Adjusted Net Income and Adjusted Earnings Per Share, reflects our expectation of a long-term effective tax rate, which is normalized and balance sheet-agnostic. Actual tax expense will be based on GAAP earnings, and may differ from the expected long-term effective tax rate due to a variety of factors, including the tax treatment of various transactions included in GAAP net income and other reconciling items that are excluded in determining Adjusted Net Income and Adjusted EPS. The actual long-term normalized effective tax rate was 25% for each of the quarters ended June 30, 2026 and 2025. Adjusted EBITDA and Adjusted EBITDA margin Adjusted EBITDA consists of GAAP net (loss) income excluding (i) strategic legal and regulatory expenses, (ii) reorganization expenses, (iii) amortization of intangible assets, (iv) share-based compensation expense (reversal), (v) depreciation expense, (vi) strategic software implementation costs, (vii) transaction-related expenses, (viii) interest income, net, and (ix) income tax provision (benefit) expense. A reconciliation of GAAP net income to Adjusted EBITDA and the calculation of Adjusted EBITDA margin appears in the table below (in thousands): Adjusted Net Income Adjusted Net Income provides a view of our operating performance, exclusive of certain items which are non-recurring or not reflective of our core operations. Adjusted Net Income is defined as GAAP net (loss) income plus (i) strategic legal and regulatory expenses, (ii) reorganization expenses, (iii) amortization of acquired intangible assets, (iv) strategic software implementation costs, (v) transaction-related expenses, and (vi) long-term effective income tax rate adjustment. A reconciliation of GAAP net income to Adjusted Net Income appears in the table below (in thousands): A reconciliation of various line items included in our GAAP unaudited condensed consolidated statements of operations to Adjusted Net Income for the three months ended June 30, 2026 and 2025 are presented in the tables below (in thousands): Adjusted Earnings Per Share Adjusted Earnings Per Share is intended to provide a normalized view of earnings per share by removing items that may be irregular, one-time, or non-recurring from net income. This enables us to identify underlying trends in our business that could otherwise be masked by such items. Adjusted Earnings Per Share consists of GAAP diluted net income per common share including adjustments for (i) amortization of acquired intangible assets, (ii) strategic legal and regulatory expenses, (iii) transaction-related expenses, and (iv) the long-term effective income tax rate adjustment. A reconciliation of GAAP diluted earnings per share to Adjusted Earnings Per Share appears in the table below (per diluted share): Free Cash Flow Free Cash Flow is intended to provide a measure of our ability to generate cash in excess of capital investments. It provides management with a view of cash flows which can be used to finance operational and strategic investments. Free Cash Flow is defined as net cash provided by operating activities less capital expenditures, including purchases of equipment. A reconciliation of GAAP net cash flows provided by operating activities to Free Cash Flow appears in the table below (in thousands): Other Information Net Sales by Product Category by Quarter Below is a summary of net sales by product category (in thousands):

Interested in MiMedx Group, Inc? Here are five stocks we like better. MiMedx agreed to acquire Sanara MedTech for $35 per share, adding more than $100 million in surgical revenue and approximately $4 billion in addressable market opportunity. The combined company expects roughly 75% of revenue to come from surgical products and projects 2027 revenue well above $400 million, with at least $20 million in annual cost synergies. Second-quarter sales were $64 million, up 9% sequentially, as surgical revenue rose 15% year over year and wound-care revenue improved 11% sequentially despite a sharp annual decline tied to Medicare reimbursement changes. MiMedx also reduced its adjusted EBITDA loss to $8 million from $12 million in Q1. MiMedx secured a $300 million term loan to help finance the acquisition and expects to deleverage to below three times adjusted EBITDA within the first full year after closing. The company maintained its standalone 2026 outlook of $260 million-$290 million in sales and adjusted EBITDA approaching breakeven. MiMedx Group (NASDAQ:MDXG) said it has agreed to acquire Sanara MedTech in a transaction valued at $35 per Sanara share, a deal the company expects to close by the end of 2026. The announcement accompanied MiMedx’s second-quarter results, which showed sequential improvement in its wound-care business and continued growth in surgical sales. Chief Executive Officer Joe Capper said the acquisition would shift the company’s revenue mix more heavily toward surgery. Following the closing, MiMedx expects about 75% of revenue to come from surgical products and 25% from wound care. → This Tiny AI Supplier Could Be More Important Than the Chipmakers “This transformational combination will immediately create one of the largest regenerative medicine companies across numerous surgical subspecialties,” Capper said. Capper said Sanara contributes more than $100 million in revenue, all from surgical procedures, and brings products that are complementary to MiMedx’s existing portfolio. The company said Sanara’s offerings would add approximately $4 billion in new addressable market opportunity. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Sanara’s largest product line is CellerateRX, a bovine particulate product used in the management of surgical, traumatic, and partial- and full-thickness wounds, as well as first- and second-degree burns. Capper said the product generated about $80 million of trailing-12-month revenue, is supported by more than 20 published clinical studies, and has been approved or contracted in more than 4,000 hospitals. The acquired portfolio also includes BIASURGE, a no-rinse irrigation solution used for mechanical cleansing and removal of debris from surgical wounds. Capper said MiMedx sees opportunities to expand distribution of that product, including potential use in wound-care centers. → Innovative ETF Strategies That Are Paying Off This Summer Sanara is also developing OsStic, a synthetic injectable bone bioadhesive that has received FDA breakthrough device designation. The company is pursuing an initial indication for periarticular fractures and hopes to have the product approved and in the market during the first quarter of 2027, according to Capper. MiMedx said it expects the combined company to generate revenue “well in excess of” $400 million in 2027, assuming the transaction closes this year. Management also expects double-digit revenue growth, at least $20 million in annualized cost synergies and adjusted EBITDA margin of at least 20% in 2027. Chief Financial Officer Doug Rice said more than half of the expected synergies are expected to come from general and administrative expense, with the remainder spread across other areas. Management characterized the acquisition as immediately accretive even before synergies. MiMedx secured committed financing for the transaction through a $300 million term loan from Hayfin Capital Management. Rice said the six-year loan will carry interest at SOFR plus 6.25% and will be subject to covenants. The company also began prepaying its existing term loan with Citizens and Bank of America. MiMedx ended the second quarter with $119 million in net cash, up $19 million from the prior-year period. During the quarter, the company spent $13 million repurchasing stock before ending the program as acquisition discussions progressed. It also incurred $4 million in one-time severance costs tied to cost-reduction actions. Management said it expects the anticipated profitability of the combined company to support rapid deleveraging to less than three times adjusted EBITDA by the end of the first full year after the merger. MiMedx reported second-quarter net sales of $64 million, down 35% from the prior-year period but up 9% sequentially from the first quarter. June was the company’s highest sales month of the year, with $24 million in net sales. Surgical net sales were $39 million, up 15% year over year. Wound-care net sales were $25 million, down 61% year over year but up 11% sequentially. Wound-care volume increased 22% sequentially, while volume in wound-care centers rose 44% sequentially. Adjusted gross margin was 74%, while reported gross margin was 69%, compared with 81% a year earlier. Adjusted EBITDA loss was $8 million, improving from a $12 million loss in the first quarter. The company said the year-over-year decline in wound-care revenue reflected Medicare reimbursement changes that took effect Jan. 1 and significantly reduced reimbursement levels across the category. Capper said the market remains affected by delayed claims processing, audits and clawbacks, low-priced products entering the market, and implementation issues related to CMS’s WISeR Model. Still, management pointed to growing activity in wound-care centers and hospital outpatient settings as evidence of early stabilization. Capper said MiMedx is concentrating its efforts in wound-care centers, where it has seen the strongest volume gains. Rice said the company expects gross margin to improve to the mid-70% range beginning in the third quarter, supported by cost-reduction measures and improved manufacturing throughput. MiMedx expects adjusted EBITDA to improve sequentially through the remainder of 2026 and to exit the fourth quarter in the high single digits as a percentage of revenue. MiMedx reiterated its standalone 2026 outlook, calling for net sales between $260 million and $290 million and adjusted EBITDA approaching breakeven for the full year. The outlook excludes any impact from the proposed Sanara acquisition. Management said it expects to be profitable in the second half of 2026 as revenue grows sequentially and cost-reduction actions take effect. The company also expects to continue investing in surgical expansion, including commercialization of newly licensed products such as G4Derm Plus and clinical evidence generation for its portfolio. During the second quarter, MiMedx submitted two 510(k) applications to the FDA, including one for a placental-derived particulate product. Both applications were accepted for review. MiMedx Group, Inc is a biopharmaceutical company focused on the development, manufacture and marketing of regenerative biomaterial products derived from human placental tissues. The company's core mission centers on harnessing the extracellular matrix and growth factors within amniotic and chorionic membranes to support wound healing and surgical applications. MiMedx's product line leverages proprietary purification processes designed to retain native tissue properties while ensuring sterility and safety. MiMedx's principal offerings include amnion/chorion allografts branded under names such as EpiFix® and AmnioFix®, which are indicated for the treatment of acute and chronic wounds—including diabetic foot ulcers, venous leg ulcers and surgical site repair. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "MiMedx Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

MiMedx Group, Inc.'s (NASDAQ:MDXG) stock was strong despite it releasing a soft earnings report last week. Our analysis suggests that investors may have noticed some promising signs beyond the statutory profit figures. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. In high finance, the key ratio used to measure how well a company converts reported profits into free cash flow (FCF) is the accrual ratio (from cashflow). To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. The ratio shows us how much a company's profit exceeds its FCF. That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future". For the year to March 2026, MiMedx Group had an accrual ratio of -0.36. That implies it has very good cash conversion, and that its earnings in the last year actually significantly understate its free cash flow. Indeed, in the last twelve months it reported free cash flow of US$69m, well over the US$30.7m it reported in profit. MiMedx Group's free cash flow improved over the last year, which is generally good to see. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. As we discussed above, MiMedx Group's accrual ratio indicates strong conversion of profit to free cash flow, which is a positive for the company. Because of this, we think MiMedx Group's underlying earnings potential is as good as, or possibly even better, than the statutory profit makes it seem! Unfortunately, though, its earnings per share actually fell back over the last year. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. If you'd like to know more about MiMedx Group as a business, it's important to be aware of any risks it's facing. To that end, you should learn about the 2 warning signs we've spotted with MiMedx Group (including 1 which is potentially serious). This note has only looked at a single factor that sheds light on the nature of MiMedx Group's profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

MALVERN, Pa., April 30, 2026 (GLOBE NEWSWIRE) -- TELA Bio, Inc. (“TELA Bio”), a commercial-stage medical technology company focused on providing innovative soft-tissue reconstruction solutions, today announced a comprehensive board refreshment plan designed to support the Company’s next phase of commercial growth and operational excellence. In a unanimous decision by the current seven-member Board of Directors, four respected directors have agreed to step down following the Company’s 2026 Annual Meeting of Stockholders on June 9, 2026 (the “2026 Annual Meeting”), to make room for four new highly accomplished executives with deep expertise in medtech commercialization, financial strategy, venture capital, and corporate turnarounds. This refreshment reflects the Board’s strong commitment to positioning TELA Bio for long-term success. Departing Directors (effective at the conclusion of the 2026 Annual Meeting): Doug Evans, Chairman of the Board Kurt Azarbarzin Vince Burgess Federica O’Brien New Directors (effective immediately after the conclusion of the 2026 Annual Meeting): Joseph Capper will be nominated for election as a Class I director at the 2026 Annual Meeting and is expected to serve as Chair of the Board upon election Guy Nohra has been appointed as a Class II director Joseph Neels has been appointed as a Class III director Paul Thomas has been appointed as a Class III director William Plovanic and Betty Jo Rocchio, who recently joined the Board and whose terms are also expiring, will stand for election and continue to provide valuable continuity. Antony Koblish, CEO, will also remain on the board. “The Board and management team are fully aligned on this important refreshment,” said Antony Koblish, Co-Founder and Chief Executive Officer of TELA Bio. “We are extremely grateful to Doug, Vince, Kurt, and Freddi for their many contributions in building TELA Bio into a commercial-stage company with a strong foundation in soft-tissue reconstruction. Their leadership and dedication have been instrumental.” “We are excited to welcome this outstanding group of four prestigious leaders whose collective experience will be invaluable as we execute our commercial strategy, improve operational efficiency, and advance toward sustainable profitability and value creation for shareholders. This is a pivotal step forward for the Company.” The new directors bring extensive track records in scaling medtech companies, venture capital investment in life sciences, optimizing commercial organizations, and navigating complex financial and strategic transformations, expertise that directly aligns with TELA Bio’s current priorities. Preliminary First Quarter 2026 Revenue The Company also announced preliminary revenue for the first quarter of 2026 of approximately $19.0 million versus previously provided guidance of approximately $18.5 million. Full financial results for the quarter will be reported after the market close on May 12, 2026. The preliminary financial information presented in this press release is based on the Company’s current expectations and may be adjusted as a result of, among other things, the completion of the quarterly review and financial closing procedures. The preliminary financial information reflects management’s estimates and assumptions that are inherently subject to risks and uncertainties. The Company’s actual results may differ from these preliminary results and such differences may be material. The Company undertakes no obligation to update or supplement the information provided in this press release until the Company releases its financial statements for the three months ended March 31, 2026. About the Incoming Directors Joseph Capper A highly experienced and accomplished healthcare executive, Mr. Capper has nearly 30 years of experience in MedTech and Life Sciences leadership roles and a track record of substantial value creation. Mr. Capper has been CEO of MiMedx Group Inc. (NASDAQ: MDXG) since January 2023. Before that, he was CEO of BioTelemetry, Inc. (formerly NASDAQ: BEAT), from 2010 to 2021, guiding the company through a significant turn-around, which culminated in its acquisition by Royal Philips for $2.8 billion. Prior to BioTelemetry, he served as President and CEO of both Home Diagnostics and CCS Medical. Mr. Capper brings a wealth of commercial experience, having held several leadership roles earlier in his career during the decade he spent with Bayer AG. Additionally, he was an officer in the U.S. Navy serving with distinction as a naval aviator. Mr. Capper has served on the board of directors of Anika Therapeutics, Inc. (NASDAQ: ANIK), since May 2024. Mr. Capper received his undergraduate degree in Accounting from West Chester University and an MBA in International Finance from George Washington University. Guido Neels Mr. Neels joined EW Healthcare Partners (“EW”) in 2006 and is an Operating Partner. He currently serves on the Board of Directors of several companies, including Elutia Inc. (NASDAQ: ELUT), Impulse Dynamics, Corvista, Enercon Technologies, and Bioventus Inc. (NASDAQ: BVS). Prior to joining EW, Mr. Neels served as Chief Operating Officer of Guidant Corporation, a world leader in the development of cardiovascular medical products prior to the company’s acquisition for $25 billion. Mr. Neels was responsible for the global operations of Guidant’s four operating units, Cardiac Rhythm Management, Vascular Intervention, Cardiac Surgery, and Endovascular Solutions, including responsibility for worldwide sales operations, corporate communications, corporate marketing, investor relations, and government relations. He also served as Vice President of Global Marketing for Vascular Intervention and as Managing Director for German and Central European operations. Prior to joining Guidant, Mr. Neels held general management, sales, and marketing positions at Eli Lilly in the U.S. and Europe. Mr. Neels previously served on the board of directors of Axogen, Inc. (NASDAQ: AXGN) from August 2015 to June 2025. Mr. Neels holds a Business Engineering degree from the University of Leuven in Belgium and a Master of Business Administration from Stanford University. Guy Nohra Mr. Nohra is a co-founder of Alta Partners, and was also a partner at Burr, Egan, Deleage & Co., which he joined in 1989. Mr. Nohra has been involved in the funding and development of notable medical technology and life science companies including ATS Medical, Cutera, Innerdyne, R2 Technology, deCODE genetics, and Vesica. Previously, Mr. Nohra was Product Manager of Medical Products with Security Pacific Trading Corporation. He was responsible for a multi-million dollar product line and traveled extensively in Korea, Taiwan, Hong Kong, China, and Southeast Asia. Currently, Mr. Nohra serves on the board of directors Bioventus Inc. (NASDAQ: BVS). He previously served on the board of directors of AcelRx Pharmaceuticals (formerly NASDAQ: ACRX), Carbylan Biosurgery (formerly NASDAQ: CBYL), Vertiflex and was the Chairman of the board of directors of USGI Medical and served on the board of directors of the Medical Device Manufacturing Association. He was named to the Forbes “Midas List” of dealmakers in high-tech and life sciences in 2007. In 2016 Mr. Nohra cofounded Alta Life Sciences, a venture fund based in Barcelona. Mr. Nohra has also served as the President of the Silicon Valley chapter of The Leukemia and Lymphoma Society for two terms. He holds a Master of Business Administration from the University of Chicago and a Bachelor of Arts in History from Stanford University. Paul Thomas Mr. Thomas currently serves as the Chief Executive Officer and Co-Founder of Prominex, Inc., a company focused on the development of molecular diagnostic assays for point-of-care infectious disease testing, a position he has held since 2018. Mr. Thomas previously served as the Chief Executive Officer of Roka Bioscience, a molecular diagnostic company focused on pathogen testing, a position he held from 2009 until 2017. Before that, he served as Chairman and Chief Executive Officer of LifeCell Corporation (formerly NASDAQ: LIFC), a regenerative medicine company from 1998 until it was acquired by KCI in 2008 in a transaction valued at $1.8 billion. Mr. Thomas previously held various senior positions, including President of the Pharmaceutical Products Division, during his tenure of 15 years with Ohmeda, a world leader in inhalation anesthetics and acute care pharmaceuticals. Mr. Thomas has served on the board of directors of Axogen Corporation (NASDAQ: AXGN) since 2020. Mr. Thomas received his MBA degree from Columbia University Graduate School of Business and completed his postgraduate studies in Chemistry at the University of Georgia Graduate School of Arts and Science. He received his B.S. degree in Chemistry from St. Michael’s College in Vermont. About TELA Bio, Inc. TELA Bio, Inc. (NASDAQ: TELA) is a commercial-stage medical technology company focused on providing innovative technologies that optimize clinical outcomes by prioritizing the preservation and restoration of the patient’s own anatomy. The Company is committed to providing surgeons with advanced, economically effective soft-tissue reconstruction solutions that leverage the patient’s natural healing response while minimizing long-term exposure to permanent synthetic materials. For more information, visit www.telabio.com. Caution Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements and reflect the current beliefs of TELA Bio’s management. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and other factors that could cause actual results and events to differ materially and adversely from those indicated by such forward-looking statements. These risks and uncertainties are described more fully in the “Risk Factors” section and elsewhere in our filings with the Securities and Exchange Commission and available at www.sec.gov, including in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Any forward-looking statements that we make in this press release speak only as of the date of this press release, and TELA Bio assumes no obligation to update forward-looking statements whether as a result of new information, future events or otherwise after the date of this press release, except as required under applicable law. Investor Contact Louisa Smith [email protected]