BioStem Technologies Posts Q1 2026 Revenue of $6.1M Amid Strategic Shift to Hospital Market

BioStem Technologies, Inc. (OTC: BSEM), a regenerative medicine company specializing in perinatal tissue allografts, reported financial results for the first quarter ended March 31, 2026, revealing a strategic transformation that prioritizes the hospital market following its acquisition of BioTissue assets. The company generated net revenue of $6.1 million, a decrease from $10.1 million in Q4 2025 and $16.0 million in Q1 2025, as it repositions itself for long-term growth.

The first quarter marked the beginning of a strategic transformation, according to Jason Matuszewski, Chairman and CEO of BioStem. “To best leverage these new resources in alignment with what we see as our most attractive market opportunity, the majority of our focus is now being prioritized on the hospital market,” Matuszewski said. Hospital revenue accounted for approximately 87% of total revenue, or $5.4 million, while physician office revenue contributed $0.8 million. Revenue was primarily driven by sales of Neox® and Clarix® products.

Gross profit for the quarter was $3.8 million, representing a gross margin of 61%, down from 97% in Q4 2025 and 95% in Q1 2025. The sequential decrease reflects the mix shift to 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 the completion of the planned manufacturing technology transfer in 2027.

Operating expenses totaled $12.6 million, compared to $17.3 million in Q4 2025 and $9.9 million in Q1 2025. The sequential decline was primarily driven by bad debt expense recorded in the prior quarter, partly offset by the addition of the acquired workforce and expenses related to the BioTissue transaction and uplist process. GAAP net loss was ($8.8 million), or ($0.52) per share, compared to net income of $3.9 million, or $0.23 per share, in Q1 2025. Adjusted EBITDA was ($5.7 million), compared to $7.8 million in the prior-year quarter.

BioStem made significant progress on integration initiatives following the BioTissue assets acquisition, including the reassignment of all GPO contracts. The company expanded its direct sales force to 35 representatives, up from 18 at the close of the acquisition, and strengthened its leadership team with the appointment of Katherine Gorrell as Chief Legal and Compliance Officer. Additionally, the company retired outstanding debt with GMA, resolving two promissory notes with an aggregate principal amount of $3 million and accrued interest of $2.3 million.

On the capital markets front, BioStem completed audited financial statements for 2024 and 2025 during the first quarter and is progressing toward a planned Nasdaq uplisting. As of March 31, 2026, cash and cash equivalents totaled $13.7 million, compared to $29.5 million at the end of Q4 2025.

For full year 2026, BioStem expects revenue in the range of $25 million to $29 million. In the second half of the year, with continuing integration of the acquired BioTissue assets, expansion of its salesforce, and execution of its strategic plan, the company expects to drive sequential growth in the hospital business. As the physician office market begins to stabilize, the company also expects sequential revenue growth in that business in the second half of 2026.

“We believe that our achievements in the first quarter have built a foundational platform from which we can deliver durable growth over the long-term,” Matuszewski said. The company plans to provide updates as additional milestones are reached in the Nasdaq uplisting process.

For more information, visit the company’s newsroom at https://tinyurl.com/bsemnewsroom.