MiMedx Q3 Loss Narrows to $8.7M; Credit Covenant Breach Waived, Wound Sales Down 71%
MDXG sits 22% above its 52-week low of $3.025.
Summary
MiMedx posted a $8.7M Q3 loss on a 45% revenue decline, disclosed a waived credit-covenant default that freezes its revolver, and added a $25M patent license as it works through the FTC review of its $350M Sanara deal.
Key Events · Earnings and Guidance · MDXG
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Q3 Loss Narrows but Sales Fall 45%
Net loss was $8.7M, or $0.06 per share, versus net income of $16.7M a year earlier; net sales fell 45.2% to $62.3M as Wound revenue dropped 71.0% to $22.3M while Surgical grew 9.1% to $40.0M.
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Credit Covenant Breach Waived
MiMedx was not in compliance with a financial covenant under the Citizens Credit Agreement at September 30, 2026, an Event of Default; lenders waived it but the company cannot borrow on the $75M revolver until compliance is regained.
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Cash Burn and Buyback
Cash fell to $120.8M from $166.1M at December 31, 2025, with $4.2M used in operations versus $49.0M provided a year earlier; the company still repurchased 3.5 million shares for $12.7M, leaving $87.3M of plan capacity.
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Sanara Deal Awaits FTC Review
The $350M Sanara acquisition ($33.00 cash plus 0.4735 shares per share, about $303M cash and 4.4 million shares) remains open after the October 15, 2026 FTC Second Request; the $300M Hayfin term loan commitment accrues a 1.00% ticking fee from October 2026.
Analysis · MDXG · Industrial Applications And Services
The $8.7M headline loss improves on Q2's $14.8M, but two facts in the filing did not lead the earnings release. First, MiMedx was out of compliance with a financial covenant under its Citizens Credit Agreement at September 30, 2026 — an Event of Default that lenders waived, with the $75M revolver frozen until compliance returns. Second, cash fell to $120.8M from $166.1M at year-end and operations burned $4.2M in nine months versus generating $49.0M a year ago, as Wound revenue collapsed 71% on Medicare reimbursement changes. Against that backdrop the company still spent $12.7M buying back stock and is on the hook for a ticking fee on the $300M Hayfin commitment while the FTC's Second Request stretches the Sanara closing timeline. The $25M patent license ($5M a year for five years) is real cash but small next to a $303M cash outlay.
How filings like this one have moved
In the 30 days to Oct 29, 2026, 39% of the 991 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.56%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, MDXG was trading at $3.70 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $575.8M. The 52-week trading range was $3.03 to $7.97. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.