Cytosorbents (CTSO) investor relations material

Executive summary

• Q1 2026 revenue grew 2% year-over-year to $8.9 million, led by strong international direct sales and stable distributor performance, but offset by declines in Germany and delayed Middle East orders due to geopolitical instability.

• Gross margin declined to 69% from 71% last year, mainly due to intentional production slowdowns to manage inventory and working capital.

• Operating loss improved to $3.0 million from $3.9 million year-over-year, reflecting cost reductions and operational improvements.

• Net loss widened to $5.1 million ($0.08/share) from $1.5 million, primarily due to non-cash foreign currency impacts; adjusted net loss improved to $3.4 million ($0.05/share).

• Strategic workforce and cost reduction initiatives, including a 10% workforce reduction, are supporting the goal of achieving operating cash flow breakeven in the second half of 2026.

Financial highlights

• Q1 2026 revenue: $8.9 million (+2% YoY); direct international sales up 13%, Germany down 7%, distributor sales flat due to $0.5 million in delayed Middle East orders.

• Gross margin: 69% (down from 71% YoY); gross profit: $6.1 million.

• Operating expenses reduced to $9.2 million from $10.1 million YoY, with R&D at $1.0 million and SG&A at $8.1 million.

• Adjusted EBITDA loss improved to $2.2 million from $2.7 million year-over-year.

• Cash and equivalents at quarter end were $6.4 million, with cash burn improving to $1.1 million (excluding $0.3 million restructuring payments).

Outlook and guidance

• Management targets operating cash flow breakeven in the second half of 2026 through continued cost controls and operational improvements.

• Plans to selectively rebuild or expand the German sales force to re-accelerate growth.

• Regulatory submission for DrugSorb-ATR in the U.S. is targeted for late 2026 or early 2027, with ongoing FDA engagement and a 150-day review timeline.