BioStem Technologies Reports Fourth Quarter and Full Year 2025 Financial Results
POMPANO BEACH, Fla., March 24, 2026 (GLOBE NEWSWIRE) -- BioStem Technologies, Inc. (OTC: BSEM), a leading regenerative medicine company focused on the development, manufacturing, and commercialization of perinatal tissue allograft products, today reported financial results for the fourth quarter and full year ended December 31, 2025.
Recent Financial and Business Highlights
- Generated net revenue of $10.1 million for the fourth quarter 2025 and gross margin of 97%
- Completed the acquisition of the BioTissue Holdings Inc. surgical and wound assets in January 2026, significantly expanding the Company's product portfolio, commercial footprint, and diversifying end markets into the hospital setting
- Integrated BioTissue's experienced national sales force of approximately 20 direct sales representatives and managers, and more than 30 independent sales agents into BioStem
- Promoted Barry Hasset to Chief Commercial Officer
- Strengthened the Board of Directors with the appointment of Jodi Ungrodt, who will serve as Audit Committee Chairperson
“BioStem delivered a solid finish to 2025, with fourth quarter revenue reflecting continued penetration of the physician office market,” said Jason Matuszewski, CEO and Chairman of the Board of BioStem. “As we enter 2026, BioStem is a fundamentally stronger and more diversified regenerative medicine company following the addition of the BioTissue surgical and wound assets, which have expanded our product portfolio and commercial reach across both hospital and physician office settings. With focused commercial channels serving these sites of care and increased exposure to commercially insured patient populations, we believe we are well positioned to navigate the evolving reimbursement landscape as we execute on our strategy to drive long-term growth and create value for our shareholders.”
Nasdaq Uplisting Update
KPMG LLP was appointed as the Company's independent registered public accounting firm in October 2025, and the Company expects to have audited financial statements for 2024 and 2025 in the near future, a key prerequisite as it pursues a Nasdaq uplisting.
Fourth Quarter 2025 Financial Results
Net revenue was $10.1 million, a 55% decrease compared to Q4 2024. Revenue in the quarter reflected the significant impact of reimbursement uncertainty and competitive pressure in the physician office and mobile settings.
Gross profit was $9.8 million, or 97% of net revenue, compared to $19.1 million or 84% of net revenue, in Q4 2024. The increase in gross margin reflects a product mix shift towards our products that do not carry a licensing fee.
Operating expenses totaled $17.3 million, up from $10.7 million in Q4 2024, primarily driven by an expense charge for potentially uncollectible accounts receivable due from Venture Medical.
GAAP net loss was ($11.3 million) or ($0.67) per share, compared to net income of $14.7 million or $0.89 per share in Q4 2024.
Adjusted EBITDA for the fourth quarter was $3.4 million, compared to $11.0 million in Q4 2024. The decline reflects lower revenue, lower gross profit, and higher operating expenses.
As of December 31, 2025, cash equivalents totaled $29.5 million. Post closing of the BioTissue asset acquisition on January 21, 2026, BioStem’s cash equivalents balance totaled approximately $16 million.
Full Year 2025 Financial Results
Net revenue for the full year 2025 was $47.5 million, compared to $69.7 million for the full year 2024. The decline was primarily driven by lower wound care volume resulting from reimbursement uncertainty and increased competition in the physician office and mobile settings.
Gross profit for the full year 2025 was $44.4 million, or 94% of net revenue, compared to $55.9 million or 80% of net revenue, for the full year 2024.
Total operating expenses for the full year 2025 were $45.1 million, compared to $24.8 million for the full year 2024, reflecting the charge for potentially uncollectible accounts receivable due from Venture Medical, increased clinical trial activity, infrastructure investment, and costs associated with the BioTissue acquisition.
GAAP net (loss) income for the full year 2025 was ($6.6 million), compared to $31.0 million for the full year 2024.
2026 Financial Outlook
Given the recent changes in the marketplace and timing in the quarter, BioStem is providing additional color on its outlook for the first quarter. The Company expects the hospital business to perform in line with the historical levels of the acquired assets, adjusted for a January 21 acquisition date, and expects the physician office business to be down significantly from the prior quarter. As a result, the Company anticipates first quarter revenue to be in the range of $5 million to $6 million. In the second half of the year, after completing integration activities, expanding its salesforce and executing its strategic plan, the Company expects to drive sequential and year-over-year growth in the hospital business. As the physician office market begins to stabilize in the second half of 2026, the Company sees an opportunity for sequential revenue growth improvement in that business.
Conference Call & Webcast Information:
- Conference ID: 9695874
- North America Toll-Free: (800) 715-9871
- International Toll: +1 (646) 307-1963
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Webcast Link: https://events.q4inc.com/attendee/218077167
About BioStem Technologies, Inc. (OTC: BSEM): BioStem Technologies is a publicly traded, biomedical innovator, focused on developing, manufacturing and commercializing advanced allograft solutions derived from perinatal tissue. The company leverages its industry-leading proprietary BioRetain®, CryoTek® and SteriTek® processing technologies, designed to optimize the preservation of the natural properties of these tissues, supporting their use in clinical settings. Its allografts are used by clinicians across a wide range of specialties. With a growing portfolio of products, expanding clinical research initiatives, and a national commercial footprint, BioStem is committed to advancing innovation in regenerative medicine.
BioStem Technologies’ quality management system and standard operating procedures have been reviewed and accredited by the American Association of Tissue Banks (“AATB”). These systems and procedures are established in compliance with current Good Tissue Practices (“cGTP”) and current Good Manufacturing Processes (“cGMP”). BioStem’s portfolio of quality brands includes its Neox®, Clarix®, VENDAJE® and American Amnion™ product lines.
For more information, visit biostemtechnologies.com and follow us on X and LinkedIn.
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Forward-Looking Statements:
Certain statements in this press release may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to expectations or forecasts of future events including with respect to the operations of the Company, strategies, prospects, and other aspects of the business of the Company. Forward-looking statements may be identified using words such as “forecast,” “intend,” “seek,” “target,” “anticipate,” “believe,” “expect,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical fact. Forward-looking statements in this release include, among other things, statements regarding: the Company’s expectations regarding its financial and operational strength and diversity; the Company’s expectations regarding the benefits and integration of the acquired BioTissue assets; the Company’s expectations regarding its ability to navigate the evolving reimbursement landscape; the Company’s expectations regarding its ability to execute on its operational strategies; the Company’s expectations regarding its ability to uplist to Nasdaq; the Company’s expectations regarding first quarter 2026 financial results; and the Company’s expectations regarding growth and the market penetration of the Company’s products.
Forward-looking statements with respect to the operations of the Company, strategies, prospects and other aspects of the business of the Company are based on current expectations that are subject to known and unknown risks and uncertainties, which could cause actual results or outcomes to differ materially from expectations expressed or implied by such forward-looking statements. These factors include, but are not limited to: the impact of any changes to the reimbursement levels for the Company’s products; significant and continuing competition, which could adversely affect the Company’s business, results of operations and financial condition; rapid technological change, which could cause the Company’s products to become outdated or obsolete, harming the Company’s ability to effectively compete; the Company’s ability to convince physicians that its products are safe and effective alternatives to existing treatments and that its products should be used in their procedures; the risk that the Company may be unable to successfully market its products to the end users of such products; the impact of any changes to the accounting treatment of the Company’s revenue and expenses; the Company’s ability to obtain financing on terms acceptable to it, or at all; the Company has incurred significant losses since inception and may incur losses in the future; the impact of any changes in applicable laws or regulations; the Company’s ability to maintain production of its products in sufficient quantities to meet demand; and the possibility that the Company may be adversely affected by other general economic, business, and/or competitive factors. There may be additional risks about which the Company is presently unaware of or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company undertakes no duty to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Contact BioStem:
Website: www.biostemtechnologies.com
E-Mail: info@biostemtech.com
X: @BSEM_Tech
Facebook: BioStemTechnologies
Phone: 954-380-8342
Investor Relations:
Philip Trip Taylor, Gilmartin
E-Mail: ir@biostemtech.com
| BioStem Technologies, Inc. and Subsidiaries | |||||||||
| Consolidated Balance Sheets | |||||||||
| As of | As of | ||||||||
| December 31, 2025 | December 31, 2024 | ||||||||
| Current Assets | |||||||||
| Cash and cash equivalents | $ | 29,549,018 | $ | 22,832,706 | |||||
| Accounts receivable, net | 9,874,468 | 23,107,027 | |||||||
| Inventory | 2,877,160 | 1,824,001 | |||||||
| Short-term loan receivable | - | 1,250,000 | |||||||
| Prepaid expenses and other assets | 2,102,803 | 2,874,317 | |||||||
| Total current assets | 44,403,449 | 51,888,051 | |||||||
| Long-Term Assets | |||||||||
| Property and equipment, net | 3,970,513 | 1,504,577 | |||||||
| Construction-in-process | 961,032 | 190,422 | |||||||
| Right-of-use asset, net | 327,267 | 271,214 | |||||||
| Intangible assets, net | 119,765 | 224,137 | |||||||
| Goodwill | 244,635 | 244,635 | |||||||
| Deferred tax assets | - | 3,994,890 | |||||||
| Total assets | $ | 50,026,661 | $ | 58,317,926 | |||||
| LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT) | |||||||||
| Current Liabilities | |||||||||
| Accounts payable and accrued expenses | $ | 4,441,419 | $ | 5,936,553 | |||||
| License fees payable | 729,975 | 2,359,575 | |||||||
| Income tax payable | 31,512 | 3,498,045 | |||||||
| Accrued interest | 2,227,500 | 1,962,983 | |||||||
| Operating lease liabilities | 225,768 | 106,723 | |||||||
| Notes payable, net of discount | 3,000,000 | 3,957,744 | |||||||
| Other current liabilities | 127,406 | 144,144 | |||||||
| Total current liabilities | 10,783,580 | 17,965,767 | |||||||
| Long-Term Liabilities | |||||||||
| Operating lease liabilities, less current portion | 105,262 | 180,235 | |||||||
| Notes payable, less current portion | - | 150,000 | |||||||
| Total long-term liabilities | 105,262 | 330,235 | |||||||
| Total liabilities | 10,888,842 | 18,296,002 | |||||||
| Commitments and contingencies (Note 9) | |||||||||
| Stockholders' Equity | |||||||||
| Series A-1 convertible preferred stock, $0.001 par value authorized, 300 shares; issued and outstanding, 300 shares as of December 31, 2025 and December 31, 2024. | - | - | |||||||
| Series B-1 convertible preferred stock, $0.001 par value authorized, 500,000 shares; issued and outstanding 5 shares as of December 31, 2025 and December 31, 2024. | - | - | |||||||
| Common stock, $0.001 par value authorized, 975,000,000 shares issued and outstanding 16,825,716 and 16,661,482 shares as of December 31, 2025 and December 31, 2024, respectively. | 16,827 | 16,662 | |||||||
| Additional paid-in capital | 60,338,654 | 54,642,012 | |||||||
| Treasury stock, 18,000 shares at cost | (43,346 | ) | (43,346 | ) | |||||
| Accumulated deficit | (21,174,316 | ) | (14,593,404 | ) | |||||
| Total stockholders' equity | 39,137,819 | 40,021,924 | |||||||
| Total liabilities and stockholders' equity | $ | 50,026,661 | $ | 58,317,926 | |||||
| BioStem Technologies, Inc. and Subsidiaries | |||||||||
| Consolidated Statements of Operations | |||||||||
| Years Ended | |||||||||
| December 31, 2025 | December 31, 2024 | ||||||||
| Revenue, net | $ | 47,482,015 | $ | 69,658,420 | |||||
| Cost of goods sold | 3,043,090 | 13,743,284 | |||||||
| Gross profit | 44,438,925 | 55,915,136 | |||||||
| Operating Expenses: | |||||||||
| Sales and marketing expenses | 14,028,352 | 3,868,704 | |||||||
| General and administrative expenses | 23,794,216 | 18,799,039 | |||||||
| Research and development expenses | 7,086,087 | 1,911,031 | |||||||
| Depreciation and amortization expense | 219,417 | 212,732 | |||||||
| Total operating expenses | 45,128,072 | 24,791,506 | |||||||
| (Loss) income from operations | (689,147 | ) | 31,123,630 | ||||||
| Other income (expense): | |||||||||
| Interest income (expense), net | 413,849 | (622,458 | ) | ||||||
| Other income (expense) | (114,348 | ) | 32,696 | ||||||
| Other income (expense), net | 299,501 | (589,762 | ) | ||||||
| Total income (loss) before income taxes | (389,646 | ) | 30,533,868 | ||||||
| Income tax (expense) benefit | (6,191,266 | ) | 496,845 | ||||||
| Net Income | $ | (6,580,912 | ) | $ | 31,030,713 | ||||
| Basic net income per share attributable to common stockholders | $ | (0.39 | ) | $ | 1.90 | ||||
| Diluted net income per share attributable to common stockholders | $ | (0.39 | ) | $ | 1.43 | ||||
| Basic weighted average common shares outstanding | 16,728,783 | 16,368,429 | |||||||
| Diluted weighted average common shares outstanding | 16,728,783 | 21,698,384 | |||||||
Non-GAAP Financial Measures:
Our management uses financial measures that are not in accordance with generally accepted accounting principles in the United States, or GAAP, in addition to financial measures in accordance with GAAP to evaluate our operating results. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, our reported financial results prepared in accordance with GAAP. Our management uses Adjusted EBITDA, which we calculate as net income less interest, taxes, depreciation and amortization and share-based compensation expense, to evaluate our operating performance and trends and make planning decisions. Our management believes Adjusted EBITDA helps identify underlying trends in our business that could otherwise be masked by the effect of the items that we exclude. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by our management in its financial and operational decision-making.
The following is a reconciliation of GAAP net (loss) income to non-GAAP EBITDA and non-GAAP Adjusted EBITDA for each of the periods presented:
| Years Ended, | Three Months Ended, | ||||||||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | ||||||||||||||
| Net (loss) income | $ | (6,580,912 | ) | $ | 31,030,713 | $ | (11,260,699 | ) | $ | 14,666,892 | |||||||
| Interest expense (income) | (413,849 | ) | 622,458 | (177,234 | ) | 100,176 | |||||||||||
| Depreciation and amortization | 219,417 | 212,732 | 47,073 | 53,961 | |||||||||||||
| Income taxes (benefit) | 6,191,266 | (496,845 | ) | 3,943,838 | (6,328,118 | ) | |||||||||||
| EBITDA | (584,078 | ) | 31,369,058 | (7,447,021 | ) | 8,492,911 | |||||||||||
| Share-based compensation | 7,260,269 | 7,987,478 | 1,235,717 | 2,520,642 | |||||||||||||
| Legal Settlement | 125,000 | - | - | - | |||||||||||||
| Allowance for uncollectible accounts | 8,800,602 | - | 8,800,602 | - | |||||||||||||
| Acquisition costs | 860,084 | - | 860,084 | - | |||||||||||||
| Adjusted EBITDA | $ | 16,461,877 | $ | 39,356,536 | $ | 3,449,382 | $ | 11,013,553 | |||||||||
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