SRTA

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 8:00 a.m. ET CFO of Clinical Services and Vice President of Finance and Investor Relations - Mathew Schneider Co-Chief Executive Officer and General Counsel - Melissa Tomkiel Co-Chief Executive Officer and Chief Financial Officer - William Heyburn Operator: Good morning, ladies and gentlemen, and welcome to the Strata Critical Medical Fiscal Second Quarter 2026 Earnings Release Conference Call. [Operator Instructions] As a reminder, this call is being recorded. I would now like to turn the conference over to Matt Schneider, CFO of Clinical Services and Vice President of Finance and Investor Relations. Matt, you may begin. Mathew Schneider: Thank you for standing by, and welcome to Strata's conference call and webcast for the quarter ended June 30, 2026. We appreciate everyone joining us today. Before we get started, I would like to remind you of the company's forward-looking statement and safe harbor language. Statements made in this conference call that are not historical facts, including statements about future time periods, may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties, and actual future results may differ materially from those expressed or implied by the forward-looking statements. We refer you to our SEC filings, including our annual report on Form 10-K and our quarterly report on Form 10-Q, each as filed with the SEC for a more detailed discussion of the risk factors that could cause these differences. Any forward-looking statements provided during this conference call are made only as of the date of this call. As stated in our SEC filings, Strata disclaims any intent or obligation to update or revise these forward-looking statements, except as required by law. During today's call, we will also discuss certain non-GAAP financial measures, which we believe may be useful in evaluating our financial performance. A reconciliation of the most directly historical comparable consolidated GAAP financial measures to those historical non-GAAP financial measures is provided in our earnings press release and investor presentation. Our press release, investor presentation and Form 10-Q and 10-K filings are available on the Investor Relations section of our website at ir.stratacritical.com. These non-GAAP measures should not be considered in isolation or a substitute for financial results prepared in accordance with GAAP. Hosting today's call are our co-CEOs, Will Heyburn and Melissa Tomkiel. I'll now turn the call over to Melissa. Melissa Tomkiel: Thank you, Matt, and good morning, everyone. We are pleased to report strong results for the second quarter of 2026, highlighted by accelerating growth in our clinical business, increased cash flow generation and great progress on our capital deployment plan. On an organic basis, excluding acquisitions made during Q2, clinical revenue increased 15.1% sequentially in Q2 2026, driven by 23.8% growth in Transplant Clinical revenue, while Clinical gross margins rose to 26.1% in Q2 2026, up from 25% in Q1. We generated $5.7 million of operating cash flow and $2.9 million of free cash flow in the quarter, our second consecutive quarter of cash generation, and we expect even stronger cash generation in the second half of the year. This strength was partially offset by a softer result in Logistics this quarter, driven largely by significantly reduced flying with one nonexclusive customer towards the end of the period. We expect the customers' lower flying levels to persist, which are specific to just one of the customer's transplant program and involve a unique set of circumstances that we don't expect to be replicated elsewhere. In Q3, we will see the full period impact of the volume reduction, which represents about 3% of our logistics revenue before we expect it to be largely mitigated through organic growth and new customer wins during Q4. Though this is an unfortunate bump in the road, we view the impact as simply a delay in our Logistics growth plan for 1 or 2 quarters, and our long-term outlook for Logistics and the business as a whole remains very positive. Our capital deployment plan is running well ahead of schedule. We closed 3 bolt-on acquisitions during Q2, all of which fit squarely within our capital allocation framework at mid-single-digit acquisition multiples and are highly strategic in nature. Within our other Clinical business line, we completed the acquisitions of Louisville Perfusion Services and Ohio Valley Perfusion Associates, both regional providers of perfusion services to cardiac surgery programs that together will strengthen our competitive positioning and enable further organic growth through new customer wins. In addition, these acquisitions serve to expand our national footprint of staff and equipment available to support organ transplant customers. In our Transplant Clinical business, we completed the acquisition of Heart and Lung Transplant National Recovery Program, a provider of surgical organ recovery services. This acquisition strengthens and adds scale to our platform by increasing our network of experienced surgeons available to complete recoveries, especially in key markets such as Florida and California. In addition to these deals, we signed an agreement to take over Statline's transplant center organ placement customer relationships on a rolling basis over the next year. Though this is not material to our financial picture today, it's a great example of how we can be creative to help industry participants continue the life-saving work they do while creating opportunities to win additional business in the future. In this situation, Statline's parent company was seeking to exit organ placement, which is noncore to their broader mission. We worked hand-in-hand with the Statline team and their customers to develop a structure that prioritizes continuity for both transplant centers and Statline employees during the transition of this mission-critical service. We landed on a rolling transition structure over the next 12 months, where we will pay Statline a fee per contract when and if customers and employees sign on our paper with unit economics that are consistent with our current business. Operationally, this is just like onboarding a new customer rather than making an acquisition. The maximum aggregate potential fee, which approximates a low single-digit multiple of the contract's contribution margin is under $1 million. But what we're really excited about is that this arrangement brings long-term contracted attachment points with up to 8 new customers that could lead to incremental clinical or logistics business over time. Following these acquisitions, Strata has a more attractive growth, margin and cash generation profile. We're also more diversified with increased exposure to the fastest-growing parts of the transplant ecosystem. We expect our business mix in the back half of the year to be roughly 40% clinical on a revenue basis versus 30% in Q1 2026 and nearly 50% clinical on a gross profit basis versus 35% in Q1. As a reminder, our clinical business is less capital intensive and has higher gross margins compared to Logistics in the mid- to high 20% range overall with Transplant Clinical in the 30% range. In addition, these acquisitions have made us a stronger, more capable and more cost-effective partner to the hospitals, transplant centers and organ procurement organizations we serve. Our broader geographic footprint means our clinicians spend more time in operating rooms and less time on airplanes, reducing the bill for customers and maximizing the productivity of our surgeons and perfusionists. Our captive transplant logistics services are highly differentiated versus competitors that are primarily brokers of nonexclusive aircraft. Our captive fleet of 35 aircraft includes 10 that are owned and 25 that are contractually 100% dedicated to Strata across approximately 20 air bases. We have a network of 55 ground vehicles across approximately 11 hubs and a 24/7 logistics operations center staffed with highly trained coordinators, leveraging our purpose-built technology platform. What's more, our integrated offering is compatible with a growing list of machine perfusion devices that have been recently approved and that we work with every day and even more that are expected to be approved over the coming years. Today, no one machine perfusion device represents more than a mid-single-digit percentage of our overall air trips, highlighting the importance of our equipment-agnostic strategy. Altogether, we believe the actions we've taken this quarter, expanding our clinical footprint, executing on our M&A strategy and continuing to generate cash flow puts Strata in a much stronger position with a more diversified business, setting us up for even more success in the long term. With that, I'll turn the call over to Will. William Heyburn: Thank you. As Melissa highlighted, our strategic expansion into clinical services is running well ahead of schedule after our accelerated progress on both organic growth and M&A execution in Q2. Year-to-date, we've completed 3 acquisitions that have significantly expanded our footprint and operational efficiency while adding more than $20 million of revenue and $6.3 million of projected annualized adjusted EBITDA at our targeted mid-single-digit acquisition multiples. We're well ahead of the capital deployment pace we targeted in our value creation plan, and we have even more great opportunities in the pipeline, though we do expect the pace of acquisition activity to slow in the second half of the year. We expect our cash balance to build into year-end, driven by free cash flow generation and the Joby performance earn-out of $17.5 million that we believe we are on track to receive in full by year-end. On the industry front, we've seen a continued recovery in DCD donors versus the low point in Q3 2025, with a low single-digit sequential increase in Q2 2026. While still down year-over-year due to a tough comp, we should start to see year-over-year industry donor growth in the second half of the year. Heart, liver and lung transplants continue to grow, thanks in large part to rising penetration rates of NRP, which, as a reminder, has been shown to result in approximately 50% more usable organs per DCD donor on average. In fact, NRP penetration continued its march forward this quarter, rising to approximately 59% of DCD donors in Q2 2026 versus 57% in Q1 2026. I'll now turn to the second quarter financial results, starting with Logistics, where year-over-year revenue growth moderated to 6.9% as we lapped 2 new large customer wins that started in Q2 2025. Logistics revenue increased approximately 1% sequentially versus Q1 2026, which was somewhat below our expectations. The dynamic of shorter trips that we called out last quarter continued into Q2 2026, driven by strength in our organ procurement organization customers, along with some softness in transplant centers. As Melissa highlighted earlier, we're expecting a roughly 3% Logistics revenue headwind driven by a nonexclusive customer that significantly reduced their flying with us for one organ type starting in June. We believe that the circumstances around this situation are unique and that the high customer retention rate we've experienced historically will persist moving forward. Our pipeline of new logistics customers remains strong, and we expect contributions from new customers as well as growth from existing customers to largely bridge the gap by the end of the year. On the profit front, Logistics gross margin fell to 18.4% in Q2 '26 versus 19.3% in Q1 2026 and our expectation of approximately 20%. There were several factors driving the lower-than-expected logistics gross margin, including a higher fuel surcharge. As a reminder, our Logistics contracts typically contain a fuel surcharge provision where we pass through fuel costs above an agreed-upon threshold, usually in the low $4 per gallon range. The fuel surcharge increases our revenue, but has no impact on our gross profit dollars, reducing our gross margin. Our gross margin, excluding fuel surcharge revenue and cost was 19% in Q2 2026. While we have fuel surcharge provisions in all of our logistics contracts, we have a small number of contracts, too, where the pass-through mechanism either kicks in at a higher price above current levels or is capped. This lowered gross margin by approximately 30 basis points. Lastly, customer mix shift remained unfavorable with a larger concentration of short lower-margin trips this quarter. We also experienced lower profitability on our owned fleet, driven in part by higher-than-average unscheduled maintenance expenses and lower ground margins compared to the year ago period due to a mix shift to lower-margin third-party vehicles, which we expect to correct in the coming quarters. We now expect gross margin to be in the 18.5% to 20% range in the second half of the year, but we are confident in our ability to restore Logistics gross margin solidly to our 20% target for 2027. We'll always see some volatility in Logistics margin, particularly given the inherently unpredictable nature of unscheduled maintenance. However, we have several initiatives underway to structurally increase Logistics gross margins back to our target, largely driven by the elimination of less efficient, higher cost operators and favorable changes to our supply contracts as we allocate more hours to better performing providers. I'll now turn to the Clinical segment and the company's overall performance. Total revenue increased 60.7% to $72.5 million in Q2 2026 versus $45.1 million in the prior year period, driven by organic growth in logistics, the addition of our clinical business through the acquisition of Keystone in Q3 2025 and the contribution from Clinical acquisitions completed during Q2 2026. Clinical revenue rose 22.6% sequentially to $24.3 million in Q2 2026 versus $19.8 million in Q1 2026. Excluding clinical acquisitions completed during the quarter, clinical revenue rose 15.1% sequentially in Q2 '26 versus Q1 '26, driven primarily by Transplant Clinical revenue, which rose 23.8% and other clinical revenue that rose 6.5%. Gross profit increased 68.9% to $15.2 million in Q2 2026 versus $9 million in the prior year period, driven by the addition of our Clinical business and the contribution from Clinical acquisitions completed during Q2 2026. This was partially offset by a modest decline in Logistics gross profit, as previously discussed. Gross margin increased 100 basis points to 21% in Q2 2026 versus 20% in the prior year period, driven primarily by the positive mix impact from the addition of our Clinical business and the contribution from Clinical acquisitions completed during the quarter, partially offset by the decline in Logistics gross margin. Clinical gross profit increased 27.8% sequentially to $6.3 million in Q2 2026 versus $5 million in Q1 2026. Clinical gross margin increased to 26.1% in Q2 2026 versus 25% in Q1 2026. As we noted in recent quarters, given the noise associated with last year's transactions, year-over-year comparisons of SG&A and adjusted EBITDA are not particularly meaningful. So we'll discuss those results on a sequential basis. Adjusted SG&A decreased approximately $100,000 to $9.1 million in Q2 2026 versus $9.2 million in Q1 2026, primarily driven by the timing of expenses in each period. Adjusted EBITDA was $7.9 million in Q2 2026 versus $6.4 million in Q1 2026. Adjusted EBITDA margin rose to 10.9% in Q2 2026 versus 9.5% in Q1 '26. The 140 basis point sequential increase in adjusted EBITDA margin was driven by the increase in Clinical gross margin and the mix shift to Clinical, partially offset by the reduction in Logistics gross margin. Operating cash flow was $5.7 million in Q2 '26. The $2.2 million difference between adjusted EBITDA and operating cash flow was driven primarily by a $1.7 million increase in working capital, given the accelerated growth in Clinical and nonrecurring transaction-related cash costs. Capital expenditures of $2.8 million in Q2 2026 were driven primarily by aircraft capitalized maintenance, which was elevated this quarter given the completion of 2 sets of engine overhauls, the only scheduled engine overhauls for 2026. Free cash flow was $2.9 million in Q2 2026, and there were no aircraft or engine acquisitions this quarter. As mentioned, we're encouraged by the second consecutive quarter of cash generation, especially considering the timing of expenses and nonrecurring transaction-related cash costs that burdened cash flow. Moving to the outlook. We are increasing our 2026 revenue guidance to a range of $285 million to $295 million, up from $260 million to $275 million previously. We are also increasing our 2026 adjusted EBITDA guidance to a range of $33 million to $35 million, up from $29 million to $33 million previously. At a high level, we're seeing the benefit of accelerated clinical growth and our acquisitions and a significantly increased revenue guide, while given the timing of the short-term margin headwinds we're seeing in Logistics, the profit benefits of the same are partially offset in our EBITDA guide for 2026. As discussed, the Logistics gross margin is expected to improve in the second half of the year and return to our 20% target in 2027, restoring the full underlying earnings power of the business moving into next year. Assuming the recent Clinical acquisitions closed on January 1, 2026, our 2026 revenue range would be $295 million to $305 million, and our adjusted EBITDA range would be $36 million to $38 million. We continue to expect free cash flow before aircraft acquisitions of $15 million to $22 million in 2026 as the increase in adjusted EBITDA is offset by higher nonrecurring cash costs related to the accelerated pace of acquisition activity during the year as well as anticipated working capital build associated with the faster pace of growth in Transplant Clinical. In Logistics, we expect revenue to decrease high single digits sequentially in Q3 versus Q2, driven by the 3% revenue headwind we discussed earlier as well as the expected summer seasonality that is typical in Q3. Over the last 3 years, heart, liver and lung industry transplant volumes fell between 3% and 6% between Q2 and Q3. As we've said before, our customer base could perform better or worse than the industry in any given quarter. From July to date, we have seen fewer organs being accepted for transplant at several of our centers. By Q4, we expect Logistics revenue to recover to near Q2 2026 levels. As discussed, Logistics gross margin is expected to gradually improve to the 18.5% to 20% range over the balance of the year. As we mentioned earlier, we've already put in place several initiatives to structurally drive Logistics gross margins back to our 20% target for 2027. Clinical revenue is expected to grow approximately 20% sequentially from Q2 to Q3, driven by continued growth in the base business, along with a full quarter contribution from the recent clinical acquisitions that closed during Q2 2026. In Q4, we expect mid-single-digit clinical sequential revenue growth versus Q3. We expect clinical gross margins to increase to the 27% to 28% range in the second half of the year, driven by mix shift to the higher-margin Transplant Clinical business. Our adjusted SG&A is expected to remain in the low $9 million range for the balance of the year. In summary, we're excited about the growth potential of our integrated service offering in Transplant, the performance of our Clinical business and the increasing cash generation that has started to come through in the first half of the year despite some short-term headwinds in Logistics that we're proactively addressing. The best is yet to come, and we look forward to seeing more and more of the financial benefits of our strategic plan shine through in the coming quarters. We're participating in several investor conferences over the next few weeks, including Needham's Healthcare Conference and the Lake Street Investor Conference. We hope to see many of you there. With that, I'll turn it back to the operator for Q&A. Operator: [Operator Instructions] Our first question comes from Yuan Zhi with B. Riley. Yuan Zhi: Congrats on a strong quarter. I think the industry-wide volume for machine perfusion was flat quarter-over-quarter in the second quarter. Excluding the recent acquisitions, can you comment if you are gaining market share in this segment? And what about the Logistics? William Heyburn: Thanks for the question. I think the best thing to look at is the growth sequentially in our clinical business, which was very strong. We do think that overall, the combination of our third-party surgical recovery and NRP services is gaining ground in the marketplace and the industry data supports that as you saw yet another quarter of sequential step-up in NRP as a percentage of the overall volume of donation after circulatory death. I would add that we're also seeing more customers take advantage even for brain dead recoveries of third-party surgical recovery because particularly when you're going long distances, we can make that more cost effective for them by sending our surgeons either on the ground or by a commercial flight and avoid turning on an airplane until you know that the organs are going to be accepted. So we're seeing a lot of folks take advantage of that and save a lot of money in the process. Yuan Zhi: Got it. Can you maybe expand a little bit on how you can see customer dollars on potential dry runs and which organs has the highest dry run rate? William Heyburn: On the dry run side of things, it's highly variable to the specifics of that donor. We're always working hand-in-hand with our customer to make that risk evaluation of whether or not it makes sense to pursue a donor based on the specific circumstances. The nice thing about our ability to deploy a surgeon locally is that you're taking much, much less risk in terms of the overall cost because, again, you try not to turn on that airplane until you know that it's not going to be a dry run. That's really where we can open up the aperture for our customers to attempt almost any organ, even if they see from the clinical data they're looking at a much higher risk of a dry run. Operator: Our next question comes from Ben Haynor with Lake Street Capital Markets. Benjamin Haynor: First off for me, can you maybe help us out and tease out the movements in guidance for the year? I mean what was Q2 outperformance, what was acquisition related, what is kind of factored into the general outlook that you have? William Heyburn: Sure, Ben. If you just take what we've disclosed on the acquisitions that we've made so far and kind of do the math, you're looking at a revenue contribution in 2026 of kind of $12 million -- $11.5 million to $12 million is what the math comes up with. Then on adjusted EBITDA, if you add it all up, you're at about 3.5%. That's the portion of the guidance change that's related to the acquisitions. Then the rest is just related to outperformance in the base business. As we walked through in detail there, there are a lot of puts and takes. But on the whole, you're seeing a benefit on both fronts in the guidance raise that we released today. Benjamin Haynor: Okay. That's helpful. Then on the initiatives you have in Logistics to restore the gross margin to the 20% goal, is there any more you can kind of share on that? How lasting can those impacts be? William Heyburn: Yes. Structurally, we have some operators that are just operating at much lower margin, particularly smaller operators where maybe we only have one airplane with them. We've already proactively removed 1 or 2 of our lowest margin airplanes from the overall addressable fleet. Then we're replacing that with lift that we're getting on a dedicated basis from operators that are just performing much more efficiently. There's also some moving around of airplanes we have to do as customer mix shifts. We're addressing that proactively as well. That mostly has to do with our owned airplanes where obviously, the more we fly on those airplanes, the less it cost per hour because we're amortizing those fixed costs over more hours. We're putting both of those action plans in place, and a lot of this has already started to show up in terms of the changes we've made in July. Mathew Schneider: Ben, just the last piece. The ground margins did decline somewhat year-over-year, and we have actions in place to improve the utilization of the vehicles and the drivers. We should see the ground margin, which is higher than average in Logistics get back to where it was previously in the back half of the year. Benjamin Haynor: Okay. Remind me, maybe I'm forgetting, have you ever split out the air versus ground mix? Mathew Schneider: We do have that disclosure in our investor presentation. You could see the approximate ground revenue that we have. So you can kind of break it out of the Logistics revenue in total. Benjamin Haynor: Okay. I'll take a look at that. Then lastly for me on the potential cardiac perfusion acquisition targets. Now that you've made -- acquired assets here and presumably have folks that you can point to that are happy with their decision to sell to Strata, much like Keystone, the Keystone folks that you're able to point to on the broader side. Does that help you much with additional acquisition targets? Or is that kind of moved? William Heyburn: We think it helps a lot. As you can see, our teams that we've acquired, and it's really first when we think about these acquisition targets are very active in growing the business. They're very active in helping us to find new targets. I think the story that they can share with folks that might want to come over and join the Strata team is really compelling because there's a huge role for them to play in making the service that we provide more efficient, more cost effective for our customers and available in more places across the country. They're driving that, and we're looking for other targets out there where folks, as we like to say, have more gas in the tank and are ready to keep driving towards this really important mission that we have here. Absolutely, we think it's helpful on the sourcing front. We still have a lot of great opportunities in the pipeline, and we are very focused on those clinical opportunities just given how exciting the growth opportunity is in that part of the marketplace and given the market share shift we've seen to things like NRP and third-party recovery and particularly the benefits we can provide to our customers when we put all these things together. Operator: [Operator Instructions] I'm not showing any further questions at this time. And as such, this does conclude today's presentation. We thank you for your participation. You may now disconnect, and have a wonderful day. 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Strata Critical Medical, Inc. (SRTA) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company. The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For Strata Critical Medical, Inc., there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The company is expected to earn $0.01 per share for the current quarter, which represents a year-over-year change of +116.7%. Over the last 30 days, one estimate has moved higher for Strata Critical Medical, Inc. compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 133.33%. For the full year, the company is expected to earn $0.01 per share, representing a year-over-year change of +105.6%. The revisions trend for the current year also appears quite promising for Strata Critical Medical, Inc., with one estimate moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 107.14%. Thanks to promising estimate revisions, Strata Critical Medical, Inc. currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Strata Critical Medical, Inc. shares have added 13.4% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Strata Critical Medical, Inc. (SRTA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Total Revenue: Increased 60.7% year-over-year to $72.5 million in Q2 2026, up from $45.1 million in the prior-year period. Clinical Revenue: Rose 22.6% sequentially to $24.3 million in Q2 2026, up from $19.8 million in Q1 2026. Excluding acquisitions, clinical revenue grew 15.1% sequentially. Transplant Clinical Revenue: Grew 23.8% sequentially in Q2 2026. Other Clinical Revenue: Rose 6.5% sequentially in Q2 2026. Logistics Revenue: Increased 6.9% year-over-year and approximately 1% sequentially versus Q1 2026. Gross Profit: Increased 68.9% to $15.2 million in Q2 2026, up from $9 million in the prior-year period. Gross Margin: Increased 100 basis points to 21% in Q2 2026, up from 20% in the prior-year period. Clinical Gross Profit: Increased 27.8% sequentially to $6.3 million in Q2 2026, up from $5 million in Q1 2026. Clinical Gross Margin: Rose to 26.1% in Q2 2026, up from 25% in Q1 2026. Logistics Gross Margin: Fell to 18.4% in Q2 2026, down from 19.8% in Q1 2026. Adjusted SG&A: Decreased approximately $100,000 to $9.1 million in Q2 2026, down from $9.2 million in Q1 2026. Adjusted EBITDA: Rose to $7.9 million in Q2 2026, up from $6.4 million in Q1 2026. Adjusted EBITDA margin increased to 10.9% from 9.5%. Operating Cash Flow: Generated $5.7 million in Q2 2026. Capital Expenditures: Totaled $2.8 million in Q2 2026, driven primarily by aircraft capitalized maintenance. Free Cash Flow: Generated $2.9 million in Q2 2026. 2026 Revenue Guidance: Increased to a range of $285 million to $295 million, up from $260 million to $275 million previously. 2026 Adjusted EBITDA Guidance: Increased to a range of $33 million to $35 million, up from $29 million to $33 million previously. 2026 Free Cash Flow Guidance: Expected to be $15 million to $22 million before aircraft acquisitions. Warning! GuruFocus has detected 4 Warning Signs with SRTA. Is SRTA fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Clinical revenue grew 15.1% sequentially on an organic basis, with transplant clinical revenue up 23.8%. Generated $5.7 million in operating cash flow and $2.9 million in free cash flow, marking the second consecutive quarter of cash generation. Completed three strategic bolt-on acquisitions at mid-single-digit multiples, expanding clinical footprint and adding over $20 million in revenue and $6.3 million in projected annualized adjusted EBITDA. Raised 2026 revenue guidance to $285-$295 million and adjusted EBITDA guidance to $33-$35 million, reflecting strong performance and acquisition contributions. NRP penetration rose to 59% of DCD donors, supporting continued growth in heart, liver, and lung transplants and benefiting the company's integrated services. Capital deployment plan is ahead of schedule, with a strong pipeline of additional opportunities and expected $17.5 million Joby performance earnout by year-end. Logistics revenue growth moderated to 6.9% year-over-year, with a sequential increase of only 1%, below expectations. A non-exclusive customer significantly reduced flying for one organ type, creating a 3% logistics revenue headwind expected to persist into Q3. Logistics gross margin fell to 18.4% in Q2, below the 20% target, due to higher fuel surcharges, unfavorable customer mix, and increased unscheduled maintenance costs. Q3 logistics revenue is expected to decline high single-digits sequentially due to the customer headwind and typical summer seasonality. Free cash flow guidance remains at $15-$22 million, with higher non-recurring cash costs and working capital build offsetting increased adjusted EBITDA. The company expects a slower pace of acquisition activity in the second half of the year, potentially limiting near-term growth catalysts. Q: Can you comment on whether you are gaining market share in the machine perfusion segment, and what about logistics? A: William Heyburn, Co-CEO and CFO, stated that the strong sequential growth in the clinical business indicates the combination of third-party surgical recovery and NRP services is gaining ground. He highlighted that NRP penetration rose to approximately 59% of DCD donors in Q2 2026, up from 57% in Q1, and noted that more customers are utilizing third-party surgical recovery even for brain-dead recoveries to save costs by avoiding turning on an airplane until organs are accepted. Q: Can you help us tease out the movements in guidance for the yearwhat was Q2 outperformance versus acquisition-related? A: William Heyburn, Co-CEO and CFO, explained that the acquisitions completed during Q2 contribute approximately $11.5 million to $12 million in revenue and about $3.5 million in adjusted EBITDA for 2026. The remainder of the guidance increase is attributed to outperformance in the base business, with benefits seen on both fronts. Q: Can you share more details on the initiatives to restore logistics gross margin to the 20% goal, and how lasting can those impacts be? A: William Heyburn, Co-CEO and CFO, detailed that structurally, they have removed one or two of the lowest-margin airplanes from the fleet and are replacing them with dedicated lifts from more efficient operators. They are also optimizing the utilization of owned aircraft to amortize fixed costs over more hours. Mathew Schneider, CFO of Clinical Services and VP of Finance, added that actions are in place to improve ground vehicle and driver utilization, which should restore ground margins in the back half of the year. Q: Does having acquired perfusion teams that are happy with their decision to sell to Strata help with additional acquisition targets? A: William Heyburn, Co-CEO and CFO, affirmed that it helps significantly. The acquired teams are active in growing the business and helping to find new targets. The compelling story they share with potential sellers highlights the role they can play in making services more efficient and cost-effective, and the company continues to see a strong pipeline of clinical opportunities. Q: Can you expand on how you can save customer dollars on potential dry runs and which organs have the highest dry run rate? A: William Heyburn, Co-CEO and CFO, explained that the dry run risk is highly variable and depends on the specific donor circumstances. By deploying a surgeon locally, customers take on much less financial risk, as they avoid turning on an airplane until it is confirmed the organs will be accepted. This approach allows customers to attempt almost any organ, even those with a higher risk of a dry run. 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. Management is aggressively shifting the business mix toward Clinical services, which are less capital-intensive and carry higher gross margins (mid-to-high 20% range) compared to Logistics. Organic Clinical revenue grew 15.1% sequentially, primarily driven by a 23.8% surge in Transplant Clinical revenue as Normothermic Regional Perfusion (NRP) adoption continues to rise. The company completed three bolt-on acquisitions in Q2 2026, expanding its national footprint of surgeons and perfusionists to improve operational efficiency and reduce travel costs. Logistics performance was hampered by a nonexclusive customer significantly reducing flying volume for one specific transplant program, creating a temporary 3% revenue headwind. Management attributes Logistics margin pressure to a combination of higher fuel surcharges, unfavorable mix shift toward shorter trips, and elevated unscheduled aircraft maintenance. The integrated service model is designed to be equipment-agnostic, supporting various machine perfusion devices without over-reliance on any single manufacturer. A strategic agreement with Statline to transition organ placement customers provides long-term attachment points for up to eight new customers with minimal upfront capital. Full-year 2026 revenue and adjusted EBITDA guidance were raised to reflect accelerated clinical growth and M&A contributions, despite short-term logistics margin compression. Management expects to restore Logistics gross margins to the 20% target by 2027 through the elimination of high-cost operators and improved supply contract terms. Clinical revenue is projected to grow approximately 20% sequentially in Q3 2026, aided by a full quarter of contribution from recent acquisitions. The company anticipates receiving a $17.5 million Joby performance earn-out by year-end, which is expected to significantly bolster the cash balance. Logistics revenue is expected to decline high single digits sequentially in Q3 due to typical summer seasonality and the specific customer volume reduction before recovering in Q4. Fuel surcharge provisions in contracts protect gross profit dollars but mathematically compress gross margin percentages as fuel prices rise. Unscheduled maintenance on the owned aircraft fleet acted as a volatile headwind to profitability during the second quarter. The company is proactively removing low-margin aircraft from its addressable fleet to improve structural profitability in the Logistics segment. Working capital requirements are increasing in tandem with the faster-than-expected growth in the Transplant Clinical business line. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management believes they are gaining ground via third-party surgical recovery and NRP services, noting NRP penetration rose to 59% of DCD donors in Q2. The strategy of deploying local surgeons helps customers avoid expensive 'dry runs' by not activating aircraft until organ acceptance is confirmed. The guidance raise includes approximately $11.5 million to $12 million in revenue and 3.5% in adjusted EBITDA from recent acquisitions. The remainder of the increase is attributed to organic outperformance in the base business, offsetting the temporary logistics headwinds. Strata is replacing smaller, inefficient operators with dedicated lift from higher-performing providers and optimizing the use of its owned fleet. Management is also focused on improving ground vehicle utilization and driver efficiency to restore higher-margin ground logistics performance.

Revenue increased 60.7% year-over-year to $72.5 million in Q2 2026 Clinical revenue increased 22.6% sequentially in Q2 2026; Excluding Clinical acquisitions that closed in Q2 2026, Clinical revenue increased 15.1% sequentially driven by a 23.8% increase in Transplant Clinical revenue Q2 2026 net loss from continuing operations of $(10.5) million or (14.5)% of revenue Adjusted EBITDA(1) of $7.9 million in Q2 2026; Adjusted EBITDA margin of 10.9% Cash flow from operating activities was $5.7 million in Q2 2026; Free Cash Flow(1) was $2.9 million in Q2 2026 Completed bolt-on acquisitions of Louisville Perfusion Services, Heart and Lung Transplant National Recovery Program and Ohio Valley Perfusion Associates during Q2 2026 Signed agreement to take over Statline's Transplant Center Organ Placement customer relationships on a rolling basis over the next year NEW YORK, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Strata Critical Medical, Inc. (Nasdaq: SRTA, "Strata" or the "Company"), today announced financial results for the second quarter ended June 30, 2026. Financial results in this release, including all comparisons to prior year periods, reflect continuing operations only. The results of the divested Passenger business have been reclassified as discontinued operations in all periods. (1) See "Use of Non-GAAP Financial Information" and "Key Metrics and Non-GAAP Financial Information" sections attached to this release for an explanation of Non-GAAP measures used and reconciliations to the most directly comparable GAAP financial measure.(2) Not meaningful. (1) See "Use of Non-GAAP Financial Information" and "Key Metrics and Non-GAAP Financial Information" sections attached to this release for an explanation of Non-GAAP measures used and reconciliations to the most directly comparable GAAP financial measure.(2) Not meaningful.(3) Net of depreciation expense of $1,417 and $852 for the three months ended June 30, 2026 and 2025, respectively, and $2,564 and $1,607 for the six months ended June 30, 2026 and 2025, respectively.(4) Net of depreciation expense of $370 and $730 for the three and six months ended June 30, 2026, respectively. "Our strategic expansion into clinical services is running well ahead of schedule after our accelerated progress on both organic growth and M&A execution in Q2," said Will Heyburn, Co-CEO and CFO. "Year-to-date, we've completed three acquisitions that have significantly expanded our footprint and operational efficiency while adding more than $6 million of projected annualized Adjusted EBITDA at our targeted mid-single-digit acquisition multiples." Heyburn continued, "With each quarter, more of the financial benefits of our strategic execution shine though, with Q2 posting records for revenue, operating cash flow and free cash flow driven by strong overall performance and standout results in our Transplant Clinical business line, which grew 24% quarter-over-quarter versus Q1 2026. Looking forward, we're left with a business that is higher margin and less capital intensive as a result." "Following our significant growth and successful acquisition integration, Strata is a stronger, more capable and more cost effective partner to the hospitals, transplant centers and organ procurement organizations we serve," said Melissa Tomkiel, Co-CEO and General Counsel. "Our broader geographic footprint means our clinicians spend more time in operating rooms and less time on airplanes, reducing the bill for customers and maximizing the productivity of our surgeons and perfusionists." Tomkiel continued, "We are now able to leverage expanded local resources to make our service less costly and more reliable. At the same time, we've diversified our business and increased our exposure to the fastest growing parts of the transplant ecosystem: third-party surgical recovery and NRP. I'm more confident now than ever in our long-term strategy." Second Quarter Ended June 30, 2026 Financial Highlights: Q2 2026 vs. Q2 2025 Total revenue increased 60.7% to $72.5 million in Q2 2026 versus $45.1 million in the prior year period driven by organic growth in Logistics, the addition of our Clinical business through the acquisition of Keystone in Q3 2025 and the contribution from Clinical acquisitions completed during Q2 2026. Logistics revenue, which represents the Company's organic revenue growth, increased 6.9% to $48.2 million in Q2 2026 versus $45.1 million in the prior year period driven primarily by higher Air revenue. Compared to the year ago period, strength in Organ Procurement Organization customers and softness in Transplant Center customers drove shorter trip distances, muting overall revenue in the period. The Clinical business continued to drive growth in Logistics revenue compared to the prior year period. Gross profit increased 68.9% to $15.2 million in Q2 2026 versus $9.0 million in the prior year period driven by the addition of our Clinical business and the contribution from Clinical acquisitions completed during Q2 2026, partially offset by a modest decline in Logistics gross profit. Gross margin increased 100 basis points to 21.0% in Q2 2026 versus 20.0% in the prior year period driven primarily by the positive mix impact from the addition of our Clinical business and the contribution from Clinical acquisitions completed during Q2 2026, partially offset by a decline in Logistics gross margin. Logistics gross profit decreased 1.3% to $8.9 million in Q2 2026 versus $9.0 million in the prior year period. Logistics gross margin of 18.4% in Q2 2026 decreased 160 basis points versus 20.0% the prior year period driven primarily by an increase in the fuel surcharge, fuel costs, customer mix, modestly lower owned fleet profitability and lower ground margins. Given that the acquisition of our Clinical business as well as the sale of our Passenger business occurred in Q3 2025, and the recent Clinical acquisitions completed during Q2 2026, year-over-year comparisons of Clinical metrics, Net Income, Adjusted SG&A, Adjusted EBITDA and cash flow are not meaningful. Please see below for sequential comparisons for these metrics. Second Quarter Ended June 30, 2026 Financial Highlights: Q2 2026 vs. Q1 2026 Clinical revenue rose 22.6% to $24.3 million in Q2 2026 versus $19.8 million in Q1 2026. Excluding Clinical acquisitions completed during Q2 2026, Clinical revenue rose 15.1% in Q2 2026 versus Q1 2026 driven primarily by Transplant Clinical revenue, which rose 23.8% and Other Clinical revenue, that rose 6.5%. Clinical gross profit increased 27.8% to $6.3 million in Q2 2026 versus $5.0 million in Q1 2026. Clinical gross margin increased to 26.1% in Q2 2026 versus 25.0% in Q1 2026. Total Selling, General and Administrative expenses decreased $1.6 million to $14.0 million in Q2 2026 versus $15.6 million in Q1 2026. Adjusted SG&A(1) decreased $0.1 million to $9.1 million in Q2 2026 versus $9.2 million in Q1 2026. Net income from continuing operations decreased $12.9 million to $(10.5) million in Q2 2026 versus $2.4 million in Q1 2026 primarily due to $5.0 million of accelerated trademark amortization related to our brand integration and a $10.5 million decrease in other non-operating income related to the non-cash revaluation of transaction earn-out liabilities. Adjusted EBITDA(1) was $7.9 million in Q2 2026 versus $6.4 million in Q1 2026. Adjusted EBITDA margin rose to 10.9% in Q2 2026 versus 9.5% in Q1 2026. The 140 basis points increase in Adjusted EBITDA margin versus Q1 2026 was driven by the increase in Clinical gross margin and the mix shift to Clinical partially offset by the reduction in Logistics gross margin. Cash flow from operating activities was $5.7 million in Q2 2026. In Q2 2026, the $2.2 million difference between Adjusted EBITDA and operating cash flow was driven primarily by the $1.7 million increase in working capital related to the timing of expenses. (1) See "Use of Non-GAAP Financial Information" and "Key Metrics and Non-GAAP Financial Information" sections attached to this release for an explanation of Non-GAAP measures used and reconciliations to the most directly comparable GAAP financial measure. Capital expenditures of $2.8 million in Q2 2026 were driven primarily by aircraft capitalized maintenance. Free Cash Flow, before aircraft and engine acquisitions(1) was $2.9 million in Q2 2026. Ended Q2 2026 with $22.8 million in cash and short term investments. Business Highlights and Recent Updates In late April 2026, we completed the acquisition of Ohio Valley Perfusion Associates, a regional provider of perfusion services to cardiac surgery programs in Ohio and Pennsylvania, strengthening our cardiac care footprint in the region. In early June 2026, we completed the acquisition of Louisville Perfusion Services ("LPS"), a regional provider of perfusion and blood management services to cardiac surgery programs in Kentucky. In late June 2026, we completed the acquisition of Heart and Lung Transplant National Recovery Program (“HLT-NRP”), a provider of transplant surgical recovery services in the United States. HLT-NRP strengthens and adds scale to our organ recovery platform by increasing our network of experienced transplant surgeons available to complete recoveries, especially in key markets such as Florida and California. In late July 2026, we signed an agreement to take over Statline's Transplant Center Organ Placement customer relationships on a rolling basis over the next year, bringing us long-term contracted attachment points with up to eight new customers that we believe could lead to incremental clinical or logistics business over time. Financial Outlook Today, we are updating our 2026 guidance: Revenue of $285-295 million (previously: $260-275 million) Adjusted EBITDA(2) of $33-35 million (previously: $29-33 million) Free cash flow, before aircraft and engine acquisitions(2) of: $15-22 million (previously: $15-22 million) Pro forma, assuming all acquisitions completed in 2026 closed on January 1 2026, our 2026 revenue and Adjusted EBITDA guidance would be approximately: Revenue of $295-305 million Adjusted EBITDA(2) of $36-38 million Conference Call The Company will conduct a conference call starting at 8:00 a.m. ET on August 4, 2026 to discuss the results for the second quarter ended June 30, 2026. A live audio-only webcast of the call may be accessed from the Investor Relations section of the Company’s website at https://ir.stratacritical.com/. An archived replay of the call will be available on the Investor Relations section of the Company's website for one year. (1) See "Use of Non-GAAP Financial Information" and "Key Metrics and Non-GAAP Financial Information" sections attached to this release for an explanation of Non-GAAP measures used and reconciliations to the most directly comparable GAAP financial measure.(2) We have not reconciled the forward-looking Adjusted EBITDA and free cash flow, before aircraft and engine acquisitions guidance included above to the most directly comparable GAAP measures because this cannot be done without unreasonable effort due to the variability and low visibility with respect to certain costs, the most significant of which are, with respect to Adjusted EBITDA, incentive compensation (including stock-based compensation), transaction-related expenses, and certain fair value measurements, which are potential adjustments to future earnings, and with respect to free cash flow, before aircraft and engine acquisitions, changes in operating assets and liabilities. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results. Use of Non-GAAP Financial Information Strata believes that the non-GAAP measures discussed below, viewed in addition to and not in lieu of our reported U.S. generally accepted accounting principles ("GAAP") results, provide useful information to investors by providing a more focused measure of operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other companies. Adjusted EBITDA, Adjusted SG&A, Free Cash Flow, Free Cash Flow before aircraft and engine acquisitions, and Clinical revenue, excluding acquisitions, have all been reconciled to the nearest GAAP measure in the tables within this press release. Adjusted EBITDA – Strata reports Adjusted EBITDA, which is a non-GAAP financial measure. Strata defines Adjusted EBITDA as net income (loss) from continuing operations adjusted to exclude: (1) depreciation and amortization; (2) stock-based compensation; (3) change in fair value of warrant liabilities and other assets and liabilities; (4) interest income and expense; (5) income tax; (6) impairment of intangible assets or property and equipment; and (7) certain other non-recurring items that management does not believe are indicative of the Company's ongoing operating performance and would impact the comparability of results between periods. Adjusted SG&A – Strata defines Adjusted selling, general and administrative ("SG&A") expenses as SG&A adjusted to exclude: (1) depreciation; (2) stock-based compensation; (3) impairment of property and equipment; and (4) other non-cash items and certain other non-recurring items that management does not believe are indicative of the Company's ongoing operating performance that would impact the comparability of results between periods. Free Cash Flow, and Free Cash Flow before aircraft and engines acquisitions – Strata defines Free Cash Flow as net cash provided by / (used in) operating activities less capital expenditures and capitalized software development costs (net of proceeds from disposals). Free Cash Flow before aircraft and engines acquisitions is defined as Free Cash Flow excluding cash outflows related to aircraft and engines acquisitions. Strata believes these measures provide valuable insights into the Company's cash-generating capacity. In particular, Free Cash Flow before aircraft and engines acquisitions highlights the cash generated by Strata's continuing operations prior to the impact of aircraft and engines acquisitions, which are discretionary and strategic in nature. Clinical revenue, excluding Clinical acquisitions that closed in Q2 2026 – Strata defines Clinical revenue, excluding Clinical acquisitions that closed in Q2 2026, as total Clinical revenue, including Transplant Clinical and Other Clinical revenue, less revenue attributable to businesses acquired during the period presented. Strata believes this measure is useful to investors because it facilitates the evaluation of organic period-over-period growth in the Clinical segment by excluding growth attributable to acquired businesses. Financial Results (1) Prior year amounts have been updated to conform to current period presentation. Key Metrics and Non-GAAP Financial Information (1) For the three months ended June 30, 2026, includes the reversal of a provision that had previously been adjusted in the calculation of Adjusted EBITDA, partially offset by legal fees relating to one specific litigation. For the six months ended June 30, 2026, includes the settlement fees related to one legal matter and legal fees relating to one specific litigation, partially offset by the reversal of a provision that had previously been adjusted in the calculation of Adjusted EBITDA. For the three months ended March 31, 2026, mainly includes settlement fees related to one specific legal matter. For the three and six months ended June 30, 2025, comprised of legal fees related to the Drulias class action lawsuit which the parties entered into a Stipulation of Settlement to fully resolve the matter in December 2025. We consider those matters to be non-recurring and not representative of the legal and regulatory advocacy costs typically incurred in the ordinary course of business.(2) Represents contingent consideration in connection with the Keystone acquisition, where part of the Seller earnout was allocated to a vendor.(3) For the three and six months ended June 30, 2026, and the three months ended March 31, 2026, consists of M&A transaction costs (including legal fees and professional fees related to financial, legal, and tax due diligence); and costs of integrating Keystone into a public company environment, including enterprise resource planning migration and software development costs to enhance its internally developed software to meet internal control standards. (4) For the three and six months ended June 30, 2026, and the three months ended March 31, 2026, consists of rebranding costs related to the decommissioning of the Blade brand and the introduction of the Strata brand; one-time reorganization costs related to the restructuring of Strata headquarters staff following the transfer of certain positions to Joby Aviation; and software application costs incurred to separate our software from the Passenger platform. (5) Represents corporate staff costs related to employees who transferred to Joby Aviation following the sale of the Passenger business on August 29, 2025. This adjustment is intended to enhance period-to-period comparability by excluding from all periods, costs associated with transferred employees whose corporate functions were not replaced. Under U.S. GAAP (ASC 205-20), these costs were required to remain in continuing operations prior to the divestiture because they were not directly attributable to discontinued operations. (1) For the three months ended June 30, 2026, includes the reversal of a provision that had previously been adjusted in the calculation of Adjusted EBITDA, partially offset by legal fees relating to one specific litigation. For the six months ended June 30, 2026, includes the settlement fees related to one legal matter and legal fees relating to one specific litigation, partially offset by the reversal of a provision that had previously been adjusted in the calculation of Adjusted EBITDA. For the three months ended March 31, 2026, mainly includes settlement fees related to one specific legal matter. For the three and six months ended June 30, 2025, comprised of legal fees related to the Drulias class action lawsuit which the parties entered into a Stipulation of Settlement to fully resolve the matter in December 2025. We consider those matters to be non-recurring and not representative of the legal and regulatory advocacy costs typically incurred in the ordinary course of business.(2) Represents contingent consideration in connection with the Keystone acquisition, where part of the Seller earnout was allocated to a vendor.(3) For the three and six months ended June 30, 2026, and the three months ended March 31, 2026, consists of M&A transaction costs (including legal fees and professional fees related to financial, legal, and tax due diligence); and costs of integrating Keystone into a public company environment, including enterprise resource planning migration and software development costs to enhance its internally developed software to meet internal control standards. (4) For the three and six months ended June 30, 2026, and the three months ended March 31, 2026, consists of rebranding costs related to the decommissioning of the Blade brand and the introduction of the Strata brand; one-time reorganization costs related to the restructuring of Strata headquarters staff following the transfer of certain positions to Joby Aviation; and software application costs incurred to separate our software from the Passenger platform. (5) Represents corporate staff costs related to employees who transferred to Joby Aviation following the sale of the Passenger business on August 29, 2025. This adjustment is intended to enhance period-to-period comparability by excluding from all periods, costs associated with transferred employees whose corporate functions were not replaced. Under U.S. GAAP (ASC 205-20), these costs were required to remain in continuing operations prior to the divestiture because they were not directly attributable to discontinued operations. (1) Represents capital expenditures for aircraft and engine acquisitions, excluding capitalized maintenance subsequent to initial acquisition. (1) Not meaningful. About Strata Critical Medical Strata is a time-critical logistics and medical services provider to the U.S. healthcare industry. We operate one of the nation’s largest air transport and surgical services networks for transplant hospitals and organ procurement organizations, offering an integrated “one call” solution for donor organ recovery. Strata’s core services include air and ground logistics, surgical organ recovery, organ placement and normothermic regional perfusion for the transplant industry, as well as perfusion staffing and equipment solutions for cardiovascular surgery centers, offered under the Trinity Medical Solutions and Keystone Perfusion brands. For more information, visit www.srta.com. Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and may be identified by the use of words such as "will", “anticipate”, “believe”, “could”, “continue”, “expect", “estimate”, “may”, “plan”, “outlook”, “future”, "target", and “project” and other similar expressions and the negatives of those terms. These statements, which involve risks and uncertainties, are based on forecasts of future results and estimates of amounts not yet determinable and may also relate to Strata’s future prospects, developments and business strategies. In particular, such forward-looking statements include statements concerning Strata’s future plans and business strategies, financial and operating performance (including the discussion of financial outlook and guidance for 2026 and beyond), acquisition opportunities, results of operations, and industry environment and growth opportunities. These statements are based on management’s current expectations and beliefs, as well as a number of assumptions concerning future events. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Strata’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements include: our continued net losses or failure to achieve or maintain profitability; our ability to realize the anticipated benefits of strategic transactions, including the recently completed divestment of the Passenger business and acquisition and integration of Keystone; any future acquisitions or partnerships; harm to our reputation and brand; negative publicity, litigation, claims or regulatory scrutiny; our ability to provide high-quality customer support and maintain trusted relationships with customers; our reliance on contractual relationships with transplant centers, hospitals, Organ Procurement Organizations and strategic partners; adoption and effective utilization of our integrated clinical and logistics offerings by medical customers; competition; our dependence on the availability and utilization of organ donors and transplant volumes; insufficient reimbursement or funding for organ transport and related services; risks inherent in organ transportation operations; risks associated with ground transportation operations; advancements in preservation technology or alternative transport methods; aviation safety risks; the effects of climate change, extreme weather events or environmental developments affecting our operations; terrorist attacks, geopolitical conflict or security events affecting aviation or healthcare infrastructure; the volatility in aircraft fuel availability or cost; our ability to obtain additional capital or financing; restrictions under our credit agreement; our ability to manage our growth; insurance market conditions; our dependence on key personnel and our ability to attract and retain qualified professionals; employment-related claims, workforce litigation or labor market challenges; our ability to maintain our company culture as we grow; fluctuations in financial results and the non-comparability of historical financial statements; risks associated with purchasing aircraft or evolving from an asset-light model; risks associated with directly operating aircraft; our reliance on maintaining efficient aircraft utilization to manage costs, operating efficiency and margins; changes in regulatory frameworks; our reliance on third-party aircraft operators; the availability of sufficient third-party aircraft capacity; workforce disruptions, operations interruptions or financial difficulties affecting third-party operators or service workers; risks arising from illegal, improper, or otherwise inappropriate operation of branded aircraft by third-party operators; our reliance on third-party cloud infrastructure, hosting providers and other technology vendors; interruptions, defects, failures or vulnerabilities in our technology systems or those of third-party providers; cybersecurity incidents, data breaches or misuse of artificial intelligence technologies; our ability to protect and enforce intellectual property rights; risks associated with our use of open-source software; our operations within highly regulated environments; the impact of any litigation or regulatory investigations that we may be subject to; our ability to comply with privacy, data protection, consumer protection and security laws; the expansion of environmental regulations; our ability to remediate any material weaknesses and maintain effective disclosure controls and procedures; and other factors beyond our control. Additional factors can be found in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, each as filed with the U.S. Securities and Exchange Commission. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and Strata undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, changes in expectations, future events or otherwise. Contacts Mathew [email protected]

Image source: The Motley Fool. May 6, 2026, 8 a.m. ET Co-Chief Executive Officer — William Heyburn Co-Chief Executive Officer — Melissa Tomkiel Chief Financial Officer — Mathew Schneider Need a quote from a Motley Fool analyst? Email [email protected] Mathew Schneider: Thank you for standing by, and welcome to Strata's conference call and webcast for the quarter ended March 31, 2026. We appreciate everyone joining us today. Before we get started, I would like to remind you of the company's forward-looking statement and safe harbor language. Statements made in this conference call that are not historical facts, including statements about future time periods, may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties, and actual future results may differ materially from those expressed or implied by the forward-looking statements. We refer you to our SEC filings, including our annual report on Form 10-K and our quarterly report on Form 10-Q, each as filed with the SEC, for a more detailed discussion of the risk factors that could cause these differences. Any forward-looking statements provided during the conference call are made only as of the date of this call. As stated in our SEC filings, Strata disclaims any intent or obligation to update or revise these forward-looking statements, except as required by law. During today's call, we will also discuss certain non-GAAP financial measures, which we believe may be useful in evaluating our financial performance. A reconciliation of the most directly historical comparable consolidated GAAP financial measures to those historical non-GAAP financial measures is provided in our earnings press release and investor presentation. Our press release, investor presentation and our Form 10-Q and 10-K filings are available on the Investor Relations section of our website at ir.stratacritical.com. These non-GAAP measures should not be considered in isolation or a substitute for financial results prepared in accordance with GAAP. Hosting today's call are our co-CEOs, Will Heyburn and Melissa Tomkiel. I'll now turn the call over to Will. William Heyburn: Thank you, Mat, and good morning, everyone. We're happy to report another great quarter with results ahead of our guidance for both revenue and adjusted EBITDA. Our 87% year-over-year revenue growth reflected organic growth of 32% in Logistics, coupled with a particularly strong contribution from our new Clinical business. The underlying strength of our transformed economic model is finally shining through as we began generating both operating cash flow and free cash flow before aircraft acquisitions this quarter. Our quality of earnings and cash conversion will only improve in the coming quarters as we clear the last remaining Passenger divestiture-related outflows. We are more confident than ever, not just that the transplant ecosystem sees value in our platform, but that the capabilities we bring captive, nationwide logistics integrated with device-agnostic clinical support, are essential to solve the shortage of donor organs in this country. Melissa will talk in more detail about some of the underlying trends driving our confidence in this area, but suffice it to say that the industry practices continue to move in our direction. On the M&A front, we're delighted to announce the acquisition of Ohio Valley Perfusion Associates. While small in size, this deal is perfectly aligned with and illustrates the potential of our M&A strategy. We operate in highly fragmented markets and can acquire businesses for mid-single-digit multiples of EBITDA that strengthen our existing business lines, position us for future growth and provide cost efficiencies. The Ohio Valley transaction value is approximately $1 million, and we expect it to contribute approximately $100,000 of adjusted EBITDA for the remainder of this year. As a reminder, the cardiac perfusion or Other Clinical vertical, as we call it, in which Ohio Valley sits is a great complement to our transplant business, fueling our ability to hire and train the same perfusionists we utilize for NRP services, while benefiting from recurring revenue through multiyear retainer contracts. Our capital deployment towards M&A is just getting started, and our pipeline remains very active. As we discussed last quarter, we have several opportunities currently under exclusivity across multiple business lines, including logistics, surgical recovery, placement and cardiac perfusion. Some of these are smaller opportunities like Ohio and some are larger bolt-ons that we project will generate low single-digit millions of adjusted EBITDA annually. We expect to reach the finish line on certain of these opportunities over the coming months. We continue to find that we are the acquirer of choice for many business leaders in our area, specifically our kind of leaders, the ones that still have gas in the tank, are hungry to keep growing, but see a larger value creation opportunity by joining forces with our team, benefiting from our nationwide platform and competing at scale. We have significant balance sheet capacity to support this M&A strategy, including approximately $59 million of cash on hand, an undrawn $30 million asset-based lending facility that could be upsized to $50 million and up to $45 million of contingent consideration from the Passenger sale transaction that's payable over the next year, along with the underlying free cash flow generation of the business. With that, I'll turn the call over to Melissa. Melissa Tomkiel: Thanks, Will. We've made a great deal of progress this quarter building out our national footprint of aviation, ground and clinical resources. This scale allows us to better and more efficiently service our customers and reduces costs for the transplant community. We acquired 1 new plane this quarter, providing us with a total of 10 owned aircraft and a dedicated fleet of approximately 35. We opened several new aviation bases in Q1 and now have roughly 20 logistics hubs around the country. We recently expanded into the Midwest, launching a new combined Logistics and Clinical base in the very strategic city of Chicago. This joint base allows us to best serve our new Chicago-based transplant center customers and creates more cost-effective options for all of our customers when recovering organs from donors throughout the Midwest. On the broader transplant industry front, as Will mentioned earlier, the industry continues to embrace NRP and third-party surgical recovery, areas where we are a market leader with data now showing NRP being performed on more than half of all DCD donors. Increased adoption of these practices has been a critical lifeline for the transplant community over the last several quarters, resulting in increased yields, or usable organs per donor that have more than offset a reduction in the overall number of donors that began following the media and regulatory scrutiny in mid-2025. Though deceased donors were still down year-over-year in Q1 2026, we saw sequential improvement starting in Q4 2025 and a larger sequential improvement in Q1 2026, putting us well above the lows of Q3 2025. A return to growth in deceased donors is welcome news for the 100,000-plus patients on the transplant waiting list and for the broader transplant community, including service provider partners like Strata. As the industry has worked through this period of reduced donor volumes, another subtle shift has occurred. The recovery surgeon capacity that transplant centers used to keep in-house simply doesn't exist at the same levels anymore. Couple this with the increased recovery complexity associated with the industry's shift to DCD and NRP and the old system of transplant centers using their own surgeons for recovery is maxed out. What's more, this is happening even at today's still depressed donor levels. Thankfully, we have the solution with local third-party surgical recovery. As we see continued normalization of donor volumes, this will only become a more critical and larger component of the organ transplant ecosystem. This is good news for everyone because it is giving us an opportunity to make the process more efficient, in partnership with the entire industry. Third-party recovery like what Strata offers enables surgeons to be dispatched from somewhere near the donor so they can spend more time recovering organs and less time sitting on airplanes. Additionally, by using local surgeons we can ensure that a DCD opportunity will actually result in viable organs before launching an airplane, significantly reducing logistics costs for dry runs, which can occur more than 1/4 of the time in DCD recoveries. In short, the evolving system, driven by third-party recovery, NRP and machine perfusion, is making the whole process more efficient and fueling the next leg of growth in transplants for all that desperately need them. Given the trends we've been discussing here, it should come as no surprise that our clinical division posted especially great results this quarter, with growth driven by continued new customer acquisitions across both NRP and Surgical Recovery as well as higher volumes within our existing customer base. We started providing NRP services to a new OPO in the Pacific Northwest during Q1, and we onboarded new Transplant Center clinical customers, several of which are existing Logistics customers, illustrating some early cross-sell wins. There is more work to do integrating our placement, clinical and logistics service offerings, but we have multiple end-to-end customers in the pipeline, customers that will utilize our entire suite of transplant service offerings. We remain well positioned to provide these critical services to the transplant community given our dedication to clinical excellence, geographic scale, and the technology and reporting platform that ensures strict compliance with national protocols and standards. On the regulatory front, we continue to see increased scrutiny around certification and qualification standards for donor surgeons, both abdominal and thoracic. This is an important and expected evolution as the field matures and scales. It is important to emphasize that in anticipation of this, we have designed our recovery service line to be forward-compatible with formal certification requirements and are actively expanding capacity to meet both current and anticipated demand. We have a growing pipeline of licensed surgeons, and we are deliberately building additional depth. In parallel, we have initiated development of a dedicated training pathway for thoracic donor recovery and NRP, drawing from a pool of already highly qualified surgeons. As the field gains broader recognition and demand increases, we believe this structured approach to training and credentialing will be essential to ensuring quality, consistency and scalability. We remain focused on several key value drivers, including strengthening our national organ recovery platform, acquiring new customers across all businesses, optimizing the profitability of our existing operations and executing on our M&A strategy. As you can see from our financial performance to date, we're making excellent progress on all of these initiatives. With that, I'll turn the call back over to Will. William Heyburn: Thank you, Melissa. We'll now turn to the financial results for the quarter. Total revenue increased 87.4% to $67.4 million in Q1 2026 versus $35.9 million in the prior year period and increased approximately 1% sequentially versus Q4 2025. Logistics revenue, which represents the company's organic growth, excluding Keystone, increased 32.4% to $47.6 million in the current quarter versus $35.9 million in the prior year period, driven primarily by higher Air revenue where both new and existing customers contributed to the strong performance in the period. Logistics revenue fell 3.3% sequentially versus Q4 2025 as customer mix drove shorter trip distances and winter storms resulted in the closure of key airports for several days during the quarter. Clinical, which did not exist in the prior year period, saw revenue increase 12.7% sequentially to $19.8 million in Q1 2026 versus $17.6 million in Q4 2025, driven primarily by Transplant Clinical revenue, which rose 26.7% sequentially, driven by both NRP and Surgical Recovery services. As mentioned earlier, new customers in both of these areas contributed to the results in the quarter. Other Clinical revenue rose 1.6% in Q1 2026 sequentially versus Q4 2025. Gross profit increased 100% to $14.1 million in Q1 2026 versus $7.1 million in the prior year period, driven by growth in Logistics and the addition of our Clinical business through the Keystone acquisition. Gross margin increased approximately 140 basis points year-over-year to 21% versus 19.6% in the prior year period, driven primarily by the positive mix impact from the Keystone acquisition, partially offset by a modest decline in Logistics gross margins. Logistics gross profit, which represents the company's organic growth, excluding Keystone, increased 29.9% to $9.2 million in Q1 2026 versus $7.1 million in the prior year period. Logistics gross margin of 19.3% in Q1 2026 decreased 30 basis points versus 19.6% in the year ago period and decreased 220 basis points versus 21.5% in Q4 2025, both driven primarily by customer mix. As discussed earlier, we saw a customer mix shift to OPOs during the quarter that have shorter trip lengths. This dynamic contributed to the Logistics gross margin softness in the quarter as OPOs are typically lower margin versus Transplant Centers due to shorter trip lengths and the aircraft types that are used, small jets and turboprops. Quarter-to-quarter customer mix shifts are a normal part of the business, and we don't anticipate any structural mix shift to OPOs versus Transplant Centers. Clinical gross profit rose 29.2% sequentially to $5 million in Q1 2026 from $3.8 million in Q4 2025. Clinical gross margin rose to 25% in Q1 2026 versus 21.8% in Q4 2025, primarily due to margin improvement in, and a mix shift towards transplant Clinical revenue. Given the noise associated with last year's transactions, year-over-year comparisons of SG&A are not particularly meaningful. Instead, looking sequentially, adjusted SG&A increased $0.3 million to $9.2 million in Q1 2026 versus $8.9 million in Q4 2025. We continue to take a disciplined approach to SG&A. The modest increase in adjusted SG&A sequentially was driven by investments in resources and infrastructure to support growth in the business. Similarly, year-over-year adjusted EBITDA comparisons are not illuminating. Looking sequentially, adjusted EBITDA fell to $6.4 million in Q1 2026 versus $7 million in Q4 2025, driven by a 90 basis point reduction in adjusted EBITDA margin to 9.5% in Q1 2026 versus 10.4% in Q4 2025, consistent with our guide for an approximate 1 point decline sequentially. The 90 basis point decline in adjusted EBITDA margin versus Q4 2025 was driven by the reduction in gross margin and slight increase in adjusted SG&A we discussed previously. Operating cash flow was $3.9 million in Q1 2026. And the $2.5 million difference between adjusted EBITDA and operating cash flow was driven by approximately $1 million of income statement adjustments and a $1.5 million increase in working capital, which was primarily a function of incentive compensation payments that are accrued throughout the year but paid in Q1. Capital expenditures of $5.5 million in Q1 2026 were driven primarily by the $3.7 million acquisition of 1 aircraft, along with aircraft capitalized maintenance. Free cash flow before aircraft and engine acquisitions was $2.1 million in Q1 2026. We're encouraged by the cash generation in the quarter, especially considering the non-recurring cash items that burden cash flow, along with the timing of annual incentive compensation payouts during the quarter. We ended Q1 2026 with $58.8 million in cash and short-term investments. We continue to expect to receive Joby earn-out payments related to our Passenger divestiture of approximately $45 million. Up to $17.5 million of this earn-out would become due at the end of August based on Blade's financial performance post close. The balance, which would become due in March 2027, is based on the retention of former Blade employees who transferred to Joby and is largely hedged by our ability to recover stock from those employees if they do not fulfill their obligations. Note that the value of those shares is held as a liability on the balance sheet today and will be revalued based on the current share price each quarter flowing through the income statement. Finally, as a reminder, if Joby elects to make the earn-out payments in the form of Joby stock, the number of shares will be determined at the time the earn-out is earned, not based on a historical Joby stock price. We would also like to note that the 14 million warrants issued as part of our 2021 going public transaction are set to expire tomorrow, according to their terms. The exercise price of the warrants is $11.50. Moving to the outlook. Revenue is trending above the midpoint of our guidance range, partially due to higher-than-anticipated fuel surcharges for the remainder of the year. On Logistics gross margins, there are several key drivers in a given quarter, including the mix between air capacity types, owned fleet uptime, customer mix and the timing of contractual pricing escalators or contract renewals that include cost increases. For the rest of the year, we expect Logistics gross margins to remain in the 20% range as we anticipate higher fuel surcharges, along with the impact of customer mix that we have limited visibility into quarter-over-quarter. As we discussed, Clinical gross margins were very strong in Q1 2026. And while they might not stay at 25% plus each quarter, Clinical gross margins are trending above expectations given the mix shift to Transplant Clinical. Lastly, the contribution from Ohio Valley Perfusion is limited for the remainder of 2026, as we mentioned earlier. We are reiterating all aspects of our 2026 guidance, including revenue of $260 million to $275 million, adjusted EBITDA of $29 million to $33 million, and free cash flow before aircraft and engine purchases of $15 million to $22 million. For the second quarter, we expect revenue to increase in the low single digits sequentially. Adjusted EBITDA margin is expected to improve to approximately 10%. In summary, we're very happy with the performance of the business, and we see significant value creation potential ahead through organic growth and executing on our M&A strategy. We're participating in several investor conferences over the next few weeks, including Craig-Hallum's Institutional Investor Conference, B. Riley's Investor Conference, William Blair's Growth Conference and a Non-Deal Roadshow with Lake Street. We hope to see many of you at these upcoming events. With that, I'll turn it back to the operator for Q&A. Operator: [Operator Instructions] And it comes from the line of Bill Bonello with Craig-Hallum. William Bonello: So a couple of things real quick. You talked about onboarding some of your Transplant Center Logistics customers as Clinical customers, which was great to hear. I think last quarter, you had talked about a lot of the Logistics growth sequential being driven by capturing some of the Keystone customers. Is that trend still continuing? William Heyburn: Bill, thanks for the question. It's Will here. Yes, we continue to get an extremely high percentage of the clinical cases where we're performing services, having those customers use our logistics. I think there was an initial step-up of that after we closed the Keystone transaction. So you're not going to see a big step-up like that again because we do believe we're capturing all that. But you will continue to see that benefit the Logistics business as the Clinical business continues its slightly faster growth. William Bonello: Yes. Okay. That's really helpful. And then just one other thing. Curious -- and I'll hop back in the queue. Curious on Chicago. Is there anything you can sort of extrapolate from prior market expansions in terms of how adding a new base impacts growth in that area? William Heyburn: This is a unique one for us because it is a combined Clinical and Logistics base. So it gives us a lot of flexibility in an area where, frankly, we had limited -- more limited capabilities historically. Now we'll be able to have airplanes on standby for organs that are being recovered in that area. We'll be able to dispatch surgeons locally for organs that are going to be recovered in that area. And then also, we'll be able to fly out perfusionists and surgeons from that Chicago hub to anywhere in the area if it's not within driving distance. So there's a lot of new capabilities. We've been able to do that in a number of other areas for a period of time, but it does allow us to cover a large part of the country that we haven't been able to cover very well previously. Operator: Our next question comes from the line of Yuan Zhi with B. Riley. Yuan Zhi: And congrats on a strong quarter. Maybe a first question to Will. So if the oil price stays at this high level, can you give more details about how this oil price will impact your top line and the bottom line? Melissa Tomkiel: This is Melissa. So we build into our Logistics contracts a fuel pass-through above a certain threshold, which most of our customers have already been at prior to these most recent increases. So this happens on a trip-by-trip basis. So as we incur cost for fuel, that is passed through to the customers, and we provide them with the fuel invoices for each trip. So there's full visibility there. We're always trying to minimize the cost for our customers, which is why we're building out this national infrastructure to have planes strategically located throughout the countries, which will reduce repositioning of those planes, which drives that fuel cost. So we -- it doesn't have that much of an impact on our business. Yuan Zhi: Got it. And I think maybe just to follow on the prior questions. I see you guys have an update on the regional hub chart. I'm just curious about your thinking behind how -- what are the required criteria or thinking behind entering a new market in the U.S.? Melissa Tomkiel: We are responsive to our customers' needs. So our value proposition is to be able to offer dedicated capacity with aviation assets to our customers. So this -- we picked up some new customers in Chicago, and we immediately were able to relocate or provide additional resources in that region. And because we know that the most efficient way we can provide the service is by having those locally based surgeons and aviation assets. William Heyburn: But I would point out that those new customers in Chicago are not yet flying. We're expecting that in the back half of the year, but we're already using that hub to support our existing customers in the region. Yuan Zhi: Got it. And my last question is related to ongoing clinical trials in the transplant space. There are several clinical trials ongoing involving specialized medical device for organ transplantation. I wonder, do you see the logistics associated with those activities have a higher margin or higher revenue versus the routine procedures? William Heyburn: With our agnostic philosophy, our relationship is with the customer, the transplant center or the OPO. And we're not charging them anything different based on what device they may or may not be using. So our goal is to support all of our customers with any clinical decision they might make and any medical device they might want to use, whether that's a device that's already certified or whether that's a device that's going through a clinical trial in which they're participating. So don't think that, that will have much impact on us one way or another because if you recall, our contracts simply say that we're going to do 100% of the flying that, that customer is going to do, and that would be inclusive of that kind of work. Operator: [Operator Instructions] We have a question from Ben Haynor with Lake Street Capital Markets. Benjamin Haynor: First off for me, just on becoming kind of the acquirer of choice in the space. Just curious on what folks are looking for in terms of structure on some of these acquisitions. I mean, is it going to be typically an upfront cash payment, as the guys with gas in the tank and -- guys with gas in the tank on sort of earn-out, equity? How broad is the structure spectrum of these acquisitions that you're looking at? Melissa Tomkiel: Well, it will vary on a case-by-case basis, but we are flexible. What we are seeing with the structure. There's not just one formula. What we're seeing though with the companies that we're speaking to, to partner with is a lot of excitement on their end to partner with us, knowing that together, we're going to have a larger footprint, and we're going to have more resources. And they want to participate in the upside, which is why we do tend to discuss structures that will involve some equity component. There's just a lot of excitement in the space and the belief that partnering with us as a strategic is a much better outcome for those companies. William Heyburn: I think we do have a little bit of an advantage when we're being considered versus a private equity acquirer, because it's just a simpler structure that we can offer relative to maybe a less transparent incentive plan structure. It's publicly traded equity. They can see what it's worth. They have a little more confidence that it could lead to liquidity down the line. And so, I think, that's been a nice benefit for us. And also, just our strategic approach. Really, what we see as an advantage with these acquisitions is building on our platform and our capabilities versus the financial arbitrage of it is secondary to the strategic benefit that we see. And I think that entrepreneurs really appreciate that mindset. Benjamin Haynor: So strategic benefit and incentive alignment will match up, and you offer both. William Heyburn: Yes. Benjamin Haynor: Got it. And then on the organ recovery hubs getting up to 13, I guess, over time, where do you see that ultimately going? Is that something that you want to give more of them sooner rather than later? How do you see that kind of tracking over time? William Heyburn: As Melissa said, it's really driven by our customers. So if we have a customer that can support a new hub, that is usually the first step and us feeling like we have enough demand for flight hours that we can justify the presence of an airplane there. And it's also a tremendous benefit to that customer because, again, as Melissa pointed out, the best way we can make their costs more efficient and reduce things like fuel costs is to not fly unnecessary repositioning flights. And so that's why our strategy, which I think our customers have appreciated is always to put airplanes either at the home airport that they're going to depart from or as close to there as possible. Melissa Tomkiel: And specifically on the clinical side, there is opportunity there. There are very strategic regions that we have not yet expanded into that we're looking to do so over the next several quarters. Mathew Schneider: Ben, this is Mat. I would just encourage you to look at our investor presentation that has an updated map of all the hubs. There's a lot of white space still out there, particularly in the West and Southwest. So I think that's important just to think about geographically, we have a much -- we have a very strong footprint on the East Coast. And we're kind of filling that in over time. We're doing so based on demand and where we see customers looking to expand the relationship with us. So it's really contingent paced by that, but there's a lot of opportunity to grow from here. Operator: One moment for our next question. It comes from Bill Bonello with Craig-Hallum. William Bonello: Thanks for allowing me to follow-up with one more. So the donor metrics, as you discussed, all look really strong. One item that did stand out to us is maybe a little bit less positive was a modest reduction in average transport distance. And just curious if you have any thoughts on if there's anything structural or what might be driving that or if it's just normal variability? And then I'm pretty sure you said this, but I just want to confirm that the Logistics mix shift to OPOs is just normal quarter-to-quarter variability. Mathew Schneider: Bill, this is Mat again. I think quite the opposite in terms of our view, and we talked about this at Investor Day and the last few times we all got together about a continued increase in the distance organs are traveling over time, driven by several factors, including regulatory change in terms of organ allocation policies. Over the last 5 years, you've seen about a 60% increase in the distance organs are traveling. Any given quarter, it could move around depending on our customer mix. We have -- we don't have great visibility into a particular mix of customers in a given month or quarter, but we are confident over time in the distance increasing. William Bonello: Okay. So even at the macro level, what we saw most recently, just think of that as kind of normal variability. Mathew Schneider: I think what we saw in the quarter was really our customer mix. I think that's the way to think about it. William Heyburn: Although I think the industry saw the same thing. William Bonello: Yes, industry saw the same thing. That's okay. We can follow up offline. Operator: Our last question comes from the line of Jon Hickman with Ladenburg Thalmann. Jon Hickman: Could you -- Will, could you elaborate a little bit on the weather, the effects of the weather during Q1? William Heyburn: Yes. Really, this was pretty unusual in that we had particularly Peterborough, where we have a number of airplanes based, the airport was actually closed for several days during the quarter. I don't want to overemphasize the impact of that because Transplant Centers are nimble. They'll try to reschedule cases. They'll push things back, they'll pull things up. And so I do think a lot of cases still get done. But certainly, if you have multiple days in a quarter where you can't fly the airplanes, there's some impact there. But I wouldn't say it was a determinative impact. Jon Hickman: Okay. And then could you elaborate a little bit on your comments about SG&A going forward? So you said like the adjusted SG&A was $9 million, $9.5 million. And what -- can you give us some idea of what you expect growth going the rest of the year? Mathew Schneider: Yes. So the adjusted SG&A -- this is Mat. It was $9.2 million in the quarter. I think you really have to look at just given all the changes, the divestiture, the acquisition of our -- of Keystone, our Clinical business, really look at the last 2 quarters as the baseline. So you saw a modest increase of about $300,000 sequentially. So that's the base. Our guidance implies a modest increase from these levels throughout the rest of the year, really just to support growth in the business. So adding some staff and infrastructure across the businesses to really support that growth. So I think we should look at it. It makes sense to look at it sequentially versus the fourth quarter, first quarter going forward throughout the rest of the year. Jon Hickman: Okay. Modest growth. Okay. Operator: And this concludes my Q&A session. I will pass it back to Mat for any additional comments. Mathew Schneider: We would like to take one question we got from retail investors that we ask what they're thinking about each quarter. We got a question on the transplant industry growth and if we expect it to improve this year. I think the important thing to think about here is we've seen an improvement in deceased donor activity over the last few months. Deceased donors slowed down really in the second half of the year, and they picked up a bit in the fourth quarter and then more meaningfully in the first quarter following some regulatory media scrutiny in the first half of 2025. And transplant growth has also reaccelerated from a low single-digit rate to the -- back to the mid-single digits in the first quarter. This is really in line with our guidance. If you recall, we assumed transplant industry growth would moderate towards this mid-single-digit level in line with what we saw last year as a result of the slowdown in deceased donors. So it's very much in line with our guidance. If we do see a continued recovery of deceased donors, we think there's upside to the number of transplants, which is great for the community, for everyone on the transplant waiting list, but we're not underwriting that in our guidance. Operator: Thank you. And ladies and gentlemen, this concludes our conference. 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Revenue growth of 87% was driven by the successful integration of the new Clinical business and 32% organic growth in Logistics, validating the company's transformed economic model. The company achieved positive operating and free cash flow before aircraft acquisitions, marking a pivot toward sustainable cash generation as legacy passenger divestiture outflows subside. Management attributes the Clinical division's outperformance to the rapid adoption of Normothermic Regional Perfusion (NRP) and third-party surgical recovery, which now accounts for over half of all DCD donors. Strategic expansion into Chicago as a combined Logistics and Clinical hub is designed to reduce dry-run costs and improve efficiency by dispatching local surgeons and aviation assets. Logistics gross margins faced a 220 basis point sequential decline primarily due to a temporary customer mix shift toward Organ Procurement Organizations (OPOs), which typically involve shorter, lower-margin trips. The acquisition of Ohio Valley Perfusion Associates, while small, illustrates a mid-single-digit EBITDA multiple M&A strategy aimed at consolidating fragmented cardiac perfusion and transplant markets. Management reiterated full-year 2026 guidance, assuming transplant industry growth remains in the mid-single digits despite recent sequential improvements in deceased donor activity. Logistics gross margins are expected to remain in the 20% range for the remainder of the year, factoring in higher fuel surcharges and limited visibility into quarter-over-quarter customer mix. The company expects to reach the 'finish line' on several M&A opportunities currently under exclusivity, including larger bolt-ons projected to generate low single-digit millions in annual adjusted EBITDA. Q2 2026 revenue is projected to increase in the low single digits sequentially, with adjusted EBITDA margins expected to improve to approximately 10%. Future cash flow will be bolstered by approximately $45 million in contingent consideration from the Passenger sale, with up to $17.5 million potentially due in August 2025. Increased regulatory scrutiny regarding surgeon certification is being addressed by building a forward-compatible recovery service line and a dedicated training pathway for thoracic recovery. Winter storms and the temporary closure of the Teterboro airport impacted Q1 flight operations, though management noted transplant centers often reschedule cases to mitigate long-term loss. The company maintains a $59 million cash balance and an undrawn $30 million credit facility to fund its active M&A pipeline without compromising liquidity. A $1.5 million increase in working capital during Q1 was primarily attributed to the timing of annual incentive compensation payments. 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. Management confirmed they are capturing an 'extremely high percentage' of logistics business from clinical customers following the Keystone transaction. While the initial step-up in capture rate has passed, Logistics will continue to benefit as the Clinical business grows at a faster relative pace. Melissa Tomkiel explained that contracts include a fuel pass-through mechanism above certain thresholds, minimizing the direct financial impact on Strata. The company is actively building national infrastructure to reduce 'repositioning' flights, which is the primary driver of excess fuel costs for customers. Strata utilizes a mix of cash and publicly traded equity to align incentives with entrepreneurs who want to participate in the platform's upside. Management believes they have an advantage over private equity because they offer a simpler, more transparent liquidity path and a strategic rather than purely financial rationale. Management noted that while 25% plus margins may not occur every quarter, the segment is trending above expectations due to a favorable mix shift toward Transplant Clinical services. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

Revenue increased 87.4% year-over-year to $67.4 million in Q1 2026 Logistics revenue and gross profit grew 32.4% and 29.9% year-over-year, respectively, in Q1 2026, which represents Strata's organic growth Clinical revenue and gross profit sequential growth of 12.7% and 29.2%, respectively in Q1 2026 versus Q4 2025 Q1 2026 net income from continuing operations of $2.4 million Adjusted EBITDA(1) of $6.4 million in Q1 2026 Completed bolt-on acquisition of Ohio Valley Perfusion Associates Reiterating full year 2026 guidance NEW YORK, May 06, 2026 (GLOBE NEWSWIRE) -- Strata Critical Medical, Inc. (Nasdaq: SRTA, "Strata" or the "Company"), today announced financial results for the first quarter ended March 31, 2026. Financial results in this release, including all comparisons to prior year periods, reflect continuing operations only. The results of the divested Passenger business have been reclassified as discontinued operations in all periods. "We are pleased to report Q1 results that came in ahead of our expectations, reflecting both strong execution on our growth plan and improving industry dynamics," said Melissa Tomkiel, Co-CEO and General Counsel. "Operationally, we're making great progress optimizing how we deliver our end-to-end transplant service offering." Tomkiel continued, "This quarter we opened a new combined Logistics and Clinical hub in Chicago, enabling us to both better serve new Chicago-based transplant center customers we are onboarding this year as well as creating more cost-effective options to serve all of our customers when they are recovering from donors in the Midwest region more broadly." "The underlying strength of our transformed economic model is finally shining through as we began generating operating cash flow this quarter. Our quality of earnings and cash conversion will only improve in the coming quarters as we clear the last remaining Passenger divestiture transaction-related outflows," said Will Heyburn, Co-CEO and CFO. "Our Clinical division showed especially strong sequential growth, with Gross Profit up nearly 30% versus Q4 2025, driven by a combination of new customer wins, a rebound in overall industry organ donors and continued industry mix shift towards third-party surgical recovery and NRP, where Strata is a market leader." Heyburn continued, "We’re delighted to announce the bolt-on acquisition of Ohio Valley Perfusion Associates, a regional provider of perfusion services to cardiac surgery programs in Ohio and Pennsylvania. While small in size, this deal is perfectly aligned with, and illustrates the potential of, our M&A strategy. Our capital deployment towards M&A is just getting started and our pipeline remains very active. We expect to reach the finish line on certain of these opportunities over the coming months." First Quarter Ended March 31, 2026 Financial Highlights: Q1 2026 vs. Q1 2025 Total revenue increased 87.4% to $67.4 million in Q1 2026 versus $35.9 million in the prior year period driven by organic growth in Logistics and the addition of our Clinical business through the Keystone acquisition in Q3 2025. Logistics revenue, which represents the Company's organic revenue growth, increased 32.4% to $47.6 million in Q1 2026 versus $35.9 million in the prior year period driven primarily by higher Air revenue where both new and existing customers contributed to the strong performance in the period. This was partially offset by customer mix, that drove shorter trip distances, and winter storms that resulted in the closure of key airports for several days during the quarter. Gross profit increased 100.2% to $14.1 million in Q1 2026 versus $7.1 million in the prior year period driven by growth in Logistics and the addition of our Clinical business. Gross margin increased approximately 140 basis points to 21.0% in Q1 2026 versus 19.6% in the prior year period driven primarily by the positive mix impact from the addition of our Clinical business, partially offset by a modest decline in Logistics gross margin. Logistics gross profit, which represents the Company's organic growth, increased 29.9% to $9.2 million in Q1 2026 versus $7.1 million in the prior year period. Logistics gross margin of 19.3% in Q1 2026 decreased 30 basis points versus 19.6% the prior year period driven primarily by customer mix." Given that the acquisition of our Clinical business as well as the sale of our Passenger business occurred in Q3 2025, year-over-year comparisons of Clinical metrics, Net Income, Adjusted SG&A, Adjusted EBITDA and cash flow are not meaningful. Please see below for sequential comparisons for these metrics. First Quarter Ended March 31, 2026 Financial Highlights: Q1 2026 vs. Q4 2025 Total revenue increased 0.9% to $67.4 million in Q1 2026 versus $66.8 million in Q4 2025. Logistics revenue decreased (3.3)% to $47.6 million in Q1 2026 versus $49.2 million in Q4 2025 driven primarily by customer mix that drove shorter trip distances and winter storms that resulted in the closure of key airports for several days during the quarter. Clinical revenue rose 12.7% to $19.8 million in Q1 2026 versus $17.6 million in Q4 2025 driven primarily by Transplant Clinical revenue, which rose 26.7% in Q1 2026 versus Q4 2025 driven by both Normothermic Regional Perfusion (NRP) and Surgical Recovery services. Gross profit decreased (2.0)% to $14.1 million in Q1 2026 versus $14.4 million in Q4 2025 driven by a decrease in Logistics gross profit partially offset by an increase in Clinical gross profit. Gross margin decreased approximately 60 basis points to 21.0% in Q1 2026 versus 21.6% in Q4 2025 driven primarily by a decline in the Logistics gross margin, partially offset by an improvement in the Clinical gross margin. Logistics gross profit decreased (13.4)% to $9.2 million in Q1 2026 versus $10.6 million in Q4 2025. Logistics gross margin of 19.3% in Q1 2026 decreased 220 basis points versus 21.5% in Q4 2025 driven primarily by customer mix. Clinical gross profit increased 29.2% to $5.0 million in Q1 2026 versus $3.8 million in Q4 2025. Clinical gross margin increased to 25.0% in Q1 2026 versus 21.8% in Q4 2025 primarily due to margin improvement in, and a mix shift towards, Transplant Clinical revenue. Total Selling, general and administrative expenses decreased $3.7 million to $15.6 million in Q1 2026 versus $19.3 million in Q4 2025. Adjusted SG&A(1) increased $0.3 million to $9.2 million in Q1 2026 versus $8.9 million in Q4 2025 driven primarily by investments in resources and infrastructure to support growth in the business. (1) See "Use of Non-GAAP Financial Information" and "Key Metrics and Non-GAAP Financial Information" sections attached to this release for an explanation of Non-GAAP measures used and reconciliations to the most directly comparable GAAP financial measure. Net income from continuing operations increased by $7.8 million to $2.4 million in Q1 2026 versus $(5.4) million in Q4 2025. Adjusted EBITDA(1) was $6.4 million in Q1 2026 versus $7.0 million in Q4 2025. Adjusted EBITDA margin fell to 9.5% in Q1 2026 versus 10.4% in Q4 2025. The 90 basis points decline in Adjusted EBITDA margin versus Q4 2025 was driven by a 60 basis points decline in gross margin and a 30 basis points increase in Adjusted SG&A as a percentage of revenue. Cash flow from operating activities was $3.9 million in Q1 2026. In Q1 2026, the $2.5 million difference between Adjusted EBITDA and operating cash flow was driven by approximately $1.0 million of income statement adjustments and a $1.5 million increase in working capital. Capital expenditures of $5.5 million in Q1 2026 were driven primarily by $3.7 million of aircraft acquisitions, along with aircraft capitalized maintenance. Free Cash Flow, before aircraft and engine acquisitions(1) was $2.1 million in Q1 2026. Ended Q1 2026 with $58.8 million in cash and short term investments. Business Highlights and Recent Updates Completed the acquisition of Ohio Valley Perfusion Associates, a regional provider of perfusion services to cardiac surgery programs in Ohio and Pennsylvania for approximately $1 million. Ended Q1 2026 with a fleet of approximately 35 aircraft, including 10 owned aircraft following the acquisition of 1 aircraft during the quarter. The fleet was stationed across approximately 20 air bases at the end of Q1 2026; opened new base in Chicago. Opened 2 organ recovery hubs and ended Q1 2026 with 13 hubs. Key transplant indicators improved in Q1 2026 including a mid-single digit sequential increase in deceased donors and the continued increase in NRP penetration of Donation after Circulatory Death (DCD) donors. Financial Outlook Today, we are reiterating our 2026 guidance: Revenue of $260-275 million Adjusted EBITDA(2) of $29-33 million Free cash flow, before aircraft and engine acquisitions(2) of $15-22 million Conference Call The Company will conduct a conference call starting at 8:00 a.m. ET on May 6, 2026 to discuss the results for the first quarter ended March 31, 2026. A live audio-only webcast of the call may be accessed from the Investor Relations section of the Company’s website at https://ir.stratacritical.com/. An archived replay of the call will be available on the Investor Relations section of the Company's website for one year. (1) See "Use of Non-GAAP Financial Information" and "Key Metrics and Non-GAAP Financial Information" sections attached to this release for an explanation of Non-GAAP measures used and reconciliations to the most directly comparable GAAP financial measure. (2) We have not reconciled the forward-looking Adjusted EBITDA and free cash flow, before aircraft and engine acquisitions guidance included above to the most directly comparable GAAP measures because this cannot be done without unreasonable effort due to the variability and low visibility with respect to certain costs, the most significant of which are, with respect to Adjusted EBITDA, incentive compensation (including stock-based compensation), transaction-related expenses, and certain fair value measurements, which are potential adjustments to future earnings, and with respect to free cash flow, before aircraft and engine acquisitions, changes in operating assets and liabilities. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results. Use of Non-GAAP Financial Information Strata believes that the non-GAAP measures discussed below, viewed in addition to and not in lieu of our reported U.S. generally accepted accounting principles ("GAAP") results, provide useful information to investors by providing a more focused measure of operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other companies. Adjusted EBITDA, Adjusted SG&A, Free Cash Flow, and Free Cash Flow before aircraft and engines acquisitions, all of which have been reconciled to the nearest GAAP measure in the tables within this press release. Adjusted EBITDA – Strata reports Adjusted EBITDA, which is a non-GAAP financial measure. Strata defines Adjusted EBITDA as net income (loss) from continuing operations adjusted to exclude: (1) depreciation and amortization; (2) stock-based compensation; (3) change in fair value of warrant liabilities and other assets and liabilities; (4) interest income and expense; (5) income tax; (6) impairment of intangible assets or property and equipment; and (7) certain other non-recurring items that management does not believe are indicative of the Company's ongoing operating performance and would impact the comparability of results between periods. Adjusted SG&A – Strata defines Adjusted selling, general and administrative ("SG&A") expenses as SG&A adjusted to exclude: (1) depreciation; (2) stock-based compensation; (3) impairment of property and equipment; and (4) other non-cash items and certain other non-recurring items that management does not believe are indicative of the Company's ongoing operating performance that would impact the comparability of results between periods. Free Cash Flow, and Free Cash Flow before aircraft and engines acquisitions – Strata defines Free Cash Flow as net cash provided by / (used in) operating activities less capital expenditures and capitalized software development costs (net of proceeds from disposals). Free Cash Flow before aircraft and engines acquisitions is defined as Free Cash Flow excluding cash outflows related to aircraft and engines acquisitions. Strata believes these measures provide valuable insights into the Company's cash-generating capacity. In particular, Free Cash Flow before aircraft and engines acquisitions highlights the cash generated by Strata's continuing operations prior to the impact of aircraft and engines acquisitions, which are discretionary and strategic in nature. Financial Results About Strata Critical Medical Strata is a time-critical logistics and medical services provider to the U.S. healthcare industry. We operate one of the nation’s largest air transport and surgical services networks for transplant hospitals and organ procurement organizations, offering an integrated “one call” solution for donor organ recovery. Strata’s core services include air and ground logistics, surgical organ recovery, organ placement and normothermic regional perfusion for the transplant industry, as well as perfusion staffing and equipment solutions for cardiovascular surgery centers, offered under the Trinity Medical Solutions and Keystone Perfusion brands. For more information, visit www.srta.com. Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and may be identified by the use of words such as "will", “anticipate”, “believe”, “could”, “continue”, “expect", “estimate”, “may”, “plan”, “outlook”, “future”, "target", and “project” and other similar expressions and the negatives of those terms. These statements, which involve risks and uncertainties, are based on forecasts of future results and estimates of amounts not yet determinable and may also relate to Strata’s future prospects, developments and business strategies. In particular, such forward-looking statements include statements concerning Strata’s future plans and business strategies, financial and operating performance (including the discussion of financial outlook and guidance for 2026 and beyond), acquisition opportunities, results of operations, and industry environment and growth opportunities. These statements are based on management’s current expectations and beliefs, as well as a number of assumptions concerning future events. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Strata’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements include: our continued net losses or failure to achieve or maintain profitability; our ability to realize the anticipated benefits of strategic transactions, including the recently completed divestment of the Passenger business and acquisition and integration of Keystone; any future acquisitions or partnerships; harm to our reputation and brand; negative publicity, litigation, claims or regulatory scrutiny; our ability to provide high-quality customer support and maintain trusted relationships with customers; our reliance on contractual relationships with transplant centers, hospitals, Organ Procurement Organizations and strategic partners; adoption and effective utilization of our integrated clinical and logistics offerings by medical customers; competition; our dependence on the availability and utilization of organ donors and transplant volumes; insufficient reimbursement or funding for organ transport and related services; risks inherent in organ transportation operations; risks associated with ground transportation operations; advancements in preservation technology or alternative transport methods; aviation safety risks; the effects of climate change, extreme weather events or environmental developments affecting our operations; terrorist attacks, geopolitical conflict or security events affecting aviation or healthcare infrastructure; the volatility in aircraft fuel availability or cost; our ability to obtain additional capital or financing; restrictions under our credit agreement; our ability to manage our growth; insurance market conditions; our dependence on key personnel and our ability to attract and retain qualified professionals; employment-related claims, workforce litigation or labor market challenges; our ability to maintain our company culture as we grow; fluctuations in financial results and the non-comparability of historical financial statements; risks associated with purchasing aircraft or evolving from an asset-light model; risks associated with directly operating aircraft; our reliance on maintaining efficient aircraft utilization to manage costs, operating efficiency and margins; changes in regulatory frameworks; our reliance on third-party aircraft operators; the availability of sufficient third-party aircraft capacity; workforce disruptions, operations interruptions or financial difficulties affecting third-party operators or service workers; risks arising from illegal, improper, or otherwise inappropriate operation of branded aircraft by third-party operators; our reliance on third-party cloud infrastructure, hosting providers and other technology vendors; interruptions, defects, failures or vulnerabilities in our technology systems or those of third-party providers; cybersecurity incidents, data breaches or misuse of artificial intelligence technologies; our ability to protect and enforce intellectual property rights; risks associated with our use of open-source software; our operations within highly regulated environments; the impact of any litigation or regulatory investigations that we may be subject to; our ability to comply with privacy, data protection, consumer protection and security laws; the expansion of environmental regulations; our ability to remediate any material weaknesses and maintain effective disclosure controls and procedures; and other factors beyond our control. Additional factors can be found in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, each as filed with the U.S. Securities and Exchange Commission. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and Strata undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, changes in expectations, future events or otherwise. Contacts Mathew Schneider [email protected]