Cytosorbents (CTSO) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $9.6 million, flat year-over-year, with gross margin rising to 73% from 71% a year ago and 69% in Q1 2026.

• Operating loss improved by 27% to $2.6 million, and adjusted EBITDA loss improved by 38% to $1.6 million compared to Q2 2025.

• Strategic cost reduction and workforce restructuring led to a 23% headcount reduction since September 2025.

• Four value drivers: achieving operating cash flow breakeven, core business growth, U.S. market entry with DrugSorb-ATR, and unlocking HemoDefend-BGA value.

• Net loss was $4.4 million, or $0.07 per share, mainly due to non-cash foreign currency impacts.

Financial highlights

• Q2 2026 revenue: $9.6 million; distributor/partner sales up 16%, direct international up 9%, Germany down 24%.

• Gross margin: 73% (up from 71% YoY and 69% in Q1 2026).

• Operating expenses: $9.7 million (down from $10.4 million YoY); adjusted net loss: $2.8–$2.9 million.

• Adjusted EBITDA loss: $1.6 million (improved 38% YoY).

• Cash, cash equivalents, and restricted cash at Q2: $5.9 million.

Outlook and guidance

• Management expects to achieve operating cash flow breakeven in the second half of 2026.

• Plans to add 3–5 new sales representatives in Germany through early 2027 to restore coverage and drive growth.

• Regulatory approval for DrugSorb-ATR in the U.S. is now expected beyond 2026, with a new De Novo submission anticipated in early 2027.

• Focus remains on disciplined execution, regulatory progress, and sustainable long-term growth.