Episurf Medical (EPIS) Q4 2024 earnings summary

Executive summary

• Achieved significant improvements in cash flow and cost savings, with operating cash flow improving by SEK 7.6m to SEK -12.9m in Q4 2024 compared to Q4 2023.

• Increased sales and expanded US presence, including first sales through Johnson & Johnson's distributor network.

• Signed a major distribution agreement with Joint Operations for several European countries, shifting to a distributor model for broader reach and lower costs.

• Submitted a comprehensive response to the FDA for the Episealer MTP implant, aiming for 510(k) clearance in the US.

Financial highlights

• Q4 2024 net sales were SEK 3.4m (Q4 2023: SEK 3.0m); full-year 2024 net sales reached SEK 13.0m (2023: SEK 10.3m).

• Q4 2024 loss for the period was SEK -18.1m (Q4 2023: SEK -21.9m); full-year 2024 loss was SEK -76.0m (2023: SEK -94.8m).

• Earnings per share improved to SEK -0.03 in Q4 2024 (Q4 2023: SEK -0.07) and SEK -0.15 for the year (2023: SEK -0.30).

• Cash and cash equivalents at year-end were SEK 50.5m (2023: SEK 57.9m).

• Equity ratio increased to 85.7% (2023: 81.0%).

Outlook and guidance

• Targeting annual sales of SEK 150–200m in the medium term, with expectations to be cash flow positive at that level.

• Year-to-date 2025 growth is 45%, with a goal to double order intake and sales annually to reach targets.

• Focused on expanding US knee business, launching the MTP implant in the US, and leveraging Joint Operations for European growth.