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.

• Operating loss improved to $3.0 million from $3.9 million, with adjusted net loss at $3.4 million and adjusted EBITDA loss at $2.2 million, reflecting cost reductions and operational improvements.

• Net loss widened to $5.1 million, primarily due to non-cash foreign currency losses.

• Strategic 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); gross margin: 69%; operating expenses: $9.2 million (down from $10.1 million); operating loss: $3.0 million; adjusted net loss: $3.4 million; adjusted EBITDA loss: $2.2 million.

• Net loss: $5.1 million ($0.08/share); adjusted net loss per share: $0.05.

• Cash, cash equivalents, and restricted cash: $6.4 million as of March 31, 2026.

• Cash burn for the quarter, excluding restructuring payments, was $1.1 million.

• Inventory reduced to $4.8 million from $5.3 million at year-end, improving working capital.

Outlook and guidance

• Targeting operating cash flow breakeven in the second half of 2026, supported by ongoing cost controls and operational efficiencies.

• Management expects continued operational improvements and cost reductions, with plans to selectively expand the commercial team in Germany.

• Regulatory submission for DrugSorb-ATR in the U.S. targeted for late 2026 or early 2027, with additional FDA engagement ongoing.

• Anticipates recovery in Middle East distributor sales as geopolitical conditions stabilize.