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Biostem Technologies (BSEM) investor relations material
Biostem Technologies Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved seventh consecutive quarter of positive adjusted EBITDA and 40% quarter-over-quarter growth in product volume, maintaining industry-leading gross margins despite a challenging reimbursement environment and increased competition.
Restated historical financials to reclassify service fees as contra revenue, with no impact on EBITDA, net income, or cash flow.
Advanced clinical programs, including successful top-line results from a randomized controlled trial for bioretained products and expanded into new markets such as the VA and Medicaid.
Remediated all prior FDA inspection concerns; latest inspection completed with no findings.
Secured land for future headquarters and manufacturing expansion at Florida Atlantic University.
Financial highlights
Q3 2025 revenue was $10.5 million, down from $11 million in Q2 2025 and $18.4 million in Q3 2024, primarily due to lower selling prices, reimbursement headwinds, and increased competition.
Gross profit was $9.3 million (88.5% margin), up from 77% in Q3 2024, reflecting a favorable product mix.
Operating expenses were $7.8 million, down from $10.2 million in Q2 but up from $4.9 million in Q3 2024 due to increased clinical trial and infrastructure investments.
GAAP net income was $0.8 million ($0.05 per share), down from $6.8 million ($0.42 per share) in Q3 2024.
Cash and cash equivalents totaled $27.2 million at quarter-end, down from $30.8 million in Q2 but up from $22.8 million at year-end 2024.
Outlook and guidance
Positioned to benefit from CMS reimbursement reform in 2026, which will shift to a flat-rate model and eliminate current pricing disadvantages.
Expecting continued market share gains through expanded commercial partnerships, new payer channels, and strategic acquisitions.
Anticipates completion of KPMG audits for 2024 and 2025 by end of Q1 2026, with Nasdaq uplisting targeted for mid-2026.
Anticipates top-line readout from the BioREtain venous leg ulcer trial in Q1 2026.
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