BioStem Q1 2026: Revenue Dips but Hospital Focus and Nasdaq Uplist Advance

PRISM MediaWire — BioStem Technologies, Inc. (OTC: BSEM), a regenerative medicine company specializing in perinatal tissue allografts, reported its first quarter 2026 financial results. The company generated net revenue of $6.1 million, driven primarily by its Neox® and Clarix® product lines. BioStem is undergoing a strategic transformation following its acquisition of surgical and wound care assets from BioTissue, with a renewed focus on the hospital market. Hospital revenue accounted for 87% of total revenue, or $5.4 million, while physician office revenue contributed $0.8 million. The company expanded its direct sales force to 35 representatives, up from 18 at the close of the acquisition, and strengthened its leadership by appointing Katherine Gorrell as Chief Legal and Compliance Officer. Additionally, BioStem retired $3 million in outstanding debt with GMA and advanced its capital markets strategy by completing audited financial statements for 2024 and 2025, progressing toward a planned Nasdaq uplisting.

Gross profit for the quarter was $3.8 million, representing a 61% gross margin, a decrease from 97% in the prior quarter due to the mix shift toward Neox and Clarix products, which are subject to a cost-plus markup under the current manufacturing supply agreement. The company expects gross margin to improve significantly upon completion of a planned manufacturing technology transfer in 2027. Operating expenses totaled $12.6 million, down from $17.3 million in the fourth quarter of 2025, partly due to lower bad debt expense. GAAP net loss was ($8.8 million), or ($0.52) per share, compared to net income of $3.9 million in the first quarter of 2025. Adjusted EBITDA was ($5.7 million). As of March 31, 2026, cash and cash equivalents totaled $13.7 million. Looking ahead, BioStem expects full-year 2026 revenue in the range of $25 million to $29 million, with sequential growth in the hospital business in the second half of the year as integration of the BioTissue assets continues.

CEO Jason Matuszewski emphasized that the first quarter marked the beginning of a strategic transformation, positioning BioStem as a fully integrated, hospital-focused commercial organization. The company's allografts, processed using proprietary technologies such as BioRetain®, CryoTek®, and SteriTek®, are used across a wide range of clinical specialties. BioStem's quality management system is accredited by the American Association of Tissue Banks. The company plans to provide updates as it reaches additional milestones toward its Nasdaq uplisting. For more details, the company's newsroom is available at https://tinyurl.com/bsemnewsroom.