MIMEDX Delivers Record-Breaking Q3 Revenue with Strong Margins and Upbeat 2025 Outlook
Net Sales Jump 35% to All-Time Highs—Wound and Surgical Growth Powers Momentum
In the third quarter of 2025, MIMEDX Group, Inc. (NASDAQ:MDXG) delivered record-breaking results, reporting net sales of $114 million—a substantial 35% increase over the same period last year. This marks the company’s second consecutive quarter of highest-ever quarterly net sales. Growth was fueled by robust performance in both core segments: Wound product sales climbed 40%, driven by new products like CELERA™ and EMERGE™, while Surgical sales rose 26% on accelerating adoption of key offerings such as AMNIOFIX®, AMNIOEFFECT®, and HELIOGEN®.
| Product Category | Q3 2025 Sales ($M) | Q3 2024 Sales ($M) | YoY Growth |
|---|---|---|---|
| Wound | 77.10 | 55.05 | 40.0% |
| Surgical | 36.63 | 29.01 | 26.3% |
| Total Net Sales | 113.73 | 84.06 | 35.2% |
Margins Hit Multi-Year Highs: Gross Margins Exceed 84% and Adjusted EBITDA Nears 31%
MIMEDX continues to drive operational efficiency, with gross profit rising to $95 million (up from $69 million last year), translating to a gross margin of 84%—a notable improvement from the previous 82%. The quarter also delivered adjusted EBITDA of $35 million, representing 31% of net sales and signaling healthy bottom-line expansion. Adjusted net income climbed to $22.60 million, more than doubling from Q3 2024.
| Key Metrics | Q3 2025 | Q3 2024 |
|---|---|---|
| Gross Profit ($M) | 95.01 | 68.74 |
| Gross Margin (%) | 84.0% | 82.0% |
| Adjusted EBITDA ($M) | 34.95 | 18.18 |
| Adjusted EBITDA Margin (%) | 30.7% | 21.6% |
| Adjusted Net Income ($M) | 22.60 | 10.41 |
| Free Cash Flow ($M) | 29.14 | 19.45 |
Cash Reserves Grow as Balance Sheet Remains Strong
The company exited Q3 with $142 million in cash and cash equivalents, up from $104 million at the end of 2024, further solidifying its liquidity position. Net cash (after accounting for debt) stands at $124 million. This financial strength enables continued investment in growth opportunities and supports ongoing R&D initiatives.
Management Lifts 2025 Outlook: Net Sales Growth Expected in Mid-to-High Teens
Looking forward, management now expects 2025 net sales to grow by a mid-to-high teen percentage, an upward revision from previous guidance. Adjusted EBITDA margin is expected to stay in the mid-20% range for the full year, while the long-term goal remains double-digit annual sales growth and an EBITDA margin above 20%. Importantly, the company says it is well-positioned to adapt to final 2026 reimbursement rules from CMS, with management viewing pending reforms as a positive for the business and the broader industry.
Key Takeaway: Sustained Momentum with Resilient Growth Engines
In a period where regulatory changes and competition loom large, MIMEDX’s strong financials and improving margins underscore the resilience and momentum of its core businesses. For investors, the robust product growth, improved cash position, and higher profit margins signal a company in command of its strategic direction. As CMS finalizes future reimbursement rules and the company continues its product innovation, stakeholders may want to track whether MIMEDX’s earnings and cash flows can sustain their current trajectory.
Summary Table: MIMEDX Selected Q3 2025 Financial Results
| Metric | Q3 2025 | Q3 2024 | Change (%) |
|---|---|---|---|
| Net Sales ($M) | 113.73 | 84.06 | +35.2 |
| Gross Profit ($M) | 95.01 | 68.74 | +38.2 |
| Adjusted EBITDA ($M) | 34.95 | 18.18 | +92.2 |
| Adjusted Net Income ($M) | 22.60 | 10.41 | +117.1 |
| Gross Margin (%) | 84.0 | 82.0 | +2.0 pts |
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