BioStem Technologies, Inc.

Q2 2026 revenue was $7.9 million versus $6.1 million in Q1 2026. Hospital revenue was $6.7 million versus $5.4 million, and physician office revenue was $1.1 million versus $772,000. Gross profit was $4.8 million with gross margin of 61%, flat sequentially versus $3.8 million and 61% in Q1. GAAP net loss was $9 million, or $0.52 per share, versus net income of $10,000, or $0.00 per share, in Q2 2025; adjusted EBITDA was a loss of $4.6 million versus income of $2.5 million in Q2 2025. Cash and cash equivalents were $7 million at June 30, 2026 versus $13.7 million at March 31, 2026, and operating cash use was $5.5 million. Management raised full-year 2026 revenue guidance to $26 million-$29 million from $25 million-$29 million, expects hospital revenue to keep growing sequentially, physician office to recover gradually, and operating expenses to be approximately flat sequentially for the rest of the year excluding Q3 Nasdaq uplisting costs.

Jason Matuszewski framed the quarter as BioStem’s first full quarter operating as a predominantly hospital-focused company and emphasized that the core operating transition is now complete. He highlighted the Nasdaq uplisting, expanded commercial infrastructure, and the company’s four priorities: integrating systems and the sales organization, driving hospital adoption, advancing the first 510(k) product, and preparing for the Neox/Clarix manufacturing transfer. His tone was constructive but execution-focused, repeatedly tying value creation to operating discipline and commercial progress.

Brandon Poe focused on the sequential improvement in revenue and the cost/margin bridge. He said gross profit was $4.8 million with 61% gross margin, unchanged sequentially, and explained that the company expects modest gross margin pressure in the second half because of preexisting Neox and Clarix inventory bought at a discount to supply agreement pricing, followed by improvement after the manufacturing transfer. On liquidity, he cited $7 million of cash at quarter-end, $5.5 million of operating cash use, and the $2.5 million institutional financing, while also noting the $3.5 million cash payment and $1 million secured note used to resolve prior promissory notes and accrued interest. He also said the company is evaluating financing options, including non-dilutive alternatives, to support growth.

Analysts pressed on the $10 million contingent consideration on the balance sheet and how it will be paid; management said it is working through payment options, had already secured an extension with BioTissue, and is considering financing alternatives. Questions also focused on why guidance was conservative versus the implied second-half run-rate; management said it wants to give prudent guidance as a newly uplisted company, though it remains excited about sequential hospital growth. On the clinical pipeline, management confirmed the VLU study remains on track for top-line publication in the back half of 2026, and said the current sales force is 30 direct reps plus five regional directors, with a target of more than 40 W2 reps by year end.