Summary of CytoSorbents Q2 2026 Earnings Call

1Key Financial Results and Metrics

Revenue: $9.6 million, stable year-over-year and up 9% sequentially.

Gross Margin: Improved to 73%, up from 69% in Q1 2026 and 71% in Q2 2025.

Operating Loss: Narrowed to $2.6 million, a 27% improvement from $3.6 million in the prior year.

Net Loss: $4.4 million, or $0.07 per share, compared to a net income of $1.9 million in Q2 2025, primarily due to non-cash foreign currency impacts.

Adjusted Net Loss: Improved by 22% to $2.9 million, or $0.05 per share.

Adjusted EBITDA Loss: Decreased 38% to $1.6 million from $2.6 million in the prior year.

Cash Position: Approximately $5.9 million in cash, with a net operating cash burn of $200,000, excluding restructuring costs.

2Strategic Updates and Business Highlights

Operational Improvements: Significant reductions in operating costs and cash burn, with a focus on achieving operating cash flow breakeven in the second half of 2026.

CytoSorb Business Growth: Growth driven by distributor network (up 16% YoY) and direct sales outside Germany (up 9% YoY). Challenges in Germany due to restructuring but plans to hire additional sales representatives.

DrugSorb-ATR Progress: Received two FDA Breakthrough Device designations, with ongoing efforts to gather additional clinical data for regulatory submissions.

HemoDefend-BGA Development: Progress made towards universal plasma technology, with FDA feedback on clinical pathways and potential for government funding.

3Forward Guidance and Outlook

Operating Cash Flow Breakeven: Management remains optimistic about achieving this goal in the latter half of 2026.

Growth Initiatives: Focus on returning CytoSorb to sustainable growth, expanding the U.S. market through DrugSorb-ATR, and unlocking the value of HemoDefend-BGA.

Sales Force Expansion: Plans to add 3 to 5 sales representatives in Germany, expected to contribute to revenue growth by mid-2027.

4Bad News, Challenges, or Points of Concern

Declining Sales in Germany: The restructuring has led to lower sales performance in Germany, which remains a challenge.

Regulatory Hurdles: Previous FDA denial of DrugSorb-ATR's de novo application due to missed primary endpoint, necessitating additional data and submissions.

Market Risks: Geopolitical instability in the Middle East has affected sales, and the company is cautious about future revenue contributions from this region.

5Notable Q&A Insights

DrugSorb-ATR Submissions: Management clarified that they plan to pursue parallel submissions for DrugSorb-ATR and DOAC indications without significant delays.

Sales Rep Productivity: New sales representatives are expected to ramp up quickly due to existing customer relationships, potentially improving revenue in the near term.

Real-World Evidence for DrugSorb-ATR: FDA guidance on real-world evidence has been received positively, and the company believes it has adequate data sources for future submissions.

Funding for HemoDefend-BGA: The company is exploring non-dilutive funding options and partnerships to accelerate clinical studies for HemoDefend-BGA. Overall, CytoSorbents reported steady financial performance with significant operational improvements, while also navigating challenges in regulatory approvals and market conditions. The company is focused on strategic growth initiatives and maintaining a path toward cash flow profitability.