Strata Critical Medical, Inc. (SRTA)·Q3 2025 Earnings Summary

Executive Summary

• Q3 2025 delivered 36.7% year-over-year revenue growth to $49.3M, a record Flight Margin of 23.6%, and Medical Segment Adjusted EBITDA up 93.5% to $7.6M; continuing operations EPS was -$0.12, with net loss affected by realized losses on short-term investments and legal reserves .
• Revenue exceeded S&P Global consensus by ~13% ($49.3M vs $43.8M*), while EPS consensus coverage was unavailable; Adjusted EBITDA improved to $4.2M from $0.1M YoY .
• Management raised FY2025 revenue guidance to $185–$195M (from $180–$190M) and reaffirmed Adjusted EBITDA of $13–$14M; Investor Day set for Nov 17 to introduce 2026 guidance .
• Shares rose premarket despite mixed headline reactions, with investor focus on strategic repositioning (Passenger divestiture, Keystone acquisition) and medium-term margin trajectory .

What Went Well and What Went Wrong

What Went Well

• Record Medical Segment performance: Adjusted EBITDA rose 93.5% YoY to $7.6M; margin expanded 450 bps to 15.3% on revenue growth and Flight Margin gains .
• Flight margin expanded to 23.6% (+280 bps YoY) on improved profitability across Air Logistics, Ground Logistics, Organ Placement, and owned fleet economics .
• Strategic repositioning completed: Passenger business sold to Joby; Keystone Perfusion acquired; rebranding to Strata Critical Medical with sharpened healthcare focus. “We closed two transformational transactions...setting us up incredibly well for long term growth,” said Co‑CEO Melissa Tomkiel .

What Went Wrong

• Net loss from continuing operations widened to -$9.7M (vs -$5.6M prior year), primarily due to a $5.2M realized loss on sales of short-term investments and a legal reserve, partially offset by $4.1M Adjusted EBITDA increase .
• Operating cash flow was -$37.3M, driven by $44.3M of Keystone consideration directed through payroll to employees in a “phantom equity” plan (required to be included in operating cash flow under accounting rules) .
• Selling and marketing rose 53.5% YoY in the quarter, and G&A increased 17.5%, reflecting growth investments and transaction-related activities .

Financial Results

Quarterly Trend (Continuing Operations)

Year-over-Year Comparison (Quarter)

Estimates vs Actuals (S&P Global)

Values marked with * retrieved from S&P Global.

Segment/Performance Metrics and KPIs

Notes: FCF from continuing ops excludes acquisition consideration, Passenger sale transaction costs, and discontinued ops cash flow .

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “Organic revenue growth accelerated to 29.0% in Q3, well above our expectation for mid-teens...resulting in record Adjusted EBITDA performance.” — Melissa Tomkiel, Co‑CEO and General Counsel .
• “Our sequential growth in Q3 2025 versus Q2 2025 is particularly impressive...demonstrating Strata's continued market share gains and our customers' adoption of new services.” — Melissa Tomkiel .
• “Industry-wide NRP adoption rates continued to increase during Q3 with transplants of organs that have undergone NRP approximately doubling versus the prior year.” — Will Heyburn, Co‑CEO and CFO .
• “The integration of Keystone is off to a fantastic start...tailoring solutions that deliver operational efficiencies and cost savings to the transplant community broadly.” — Will Heyburn .

Q&A Highlights

• Analysts focused on seasonality in transplant volumes and Keystone integration; management emphasized growth drivers (new customer acquisition, market share expansion, new technology adoption) and reinforced confidence in margin trajectory and integration progress .
• Management reiterated Investor Day timing and intent to introduce 2026 guidance alongside medium-term targets, signaling confidence in the multi-year plan .
• Clarifications around cash flow mechanics: Keystone consideration directed through payroll and captured in operating cash flow; Adjusted and continuing operations FCF presented to isolate underlying cash generation .

Estimates Context

• Revenue beat vs S&P Global consensus: $49.3M actual vs $43.75M* estimate; indicates stronger-than-modeled demand in Air/Ground Logistics and Organ Placement .
• EPS consensus not available* for Q3 2025; continuing operations EPS was -$0.12 (GAAP), with non-GAAP Adjusted EBITDA of $4.2M benefiting from Flight Margin improvements .
• Street models likely need to raise revenue run-rate and reflect expanding Medical Segment margins; maintain caution on legal/transaction-related non-GAAP adjustments.

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

• The core medical logistics franchise is inflecting: strong YoY revenue growth, material margin expansion, and Medical Segment Adjusted EBITDA strength point to improving unit economics and share gains .
• Non-GAAP adjustments matter: realized investment losses and legal costs obscured GAAP net loss; underlying profitability trends (Flight/Adj. EBITDA margins) are improving and should be reflected in forward models .
• Guidance raise signals confidence: FY2025 revenue raised to $185–$195M, Adjusted EBITDA reaffirmed at $13–$14M; watch for 2026 targets at Investor Day as a catalyst .
• Strategic repositioning is a tailwind: Passenger divestiture and Keystone acquisition sharpen focus and expand clinical services, with NRP adoption and OrganOx enabling higher growth vectors .
• Cash discipline amid transactions: headline operating cash flow impacted by Keystone payroll-based consideration; continuing operations FCF positive in Q3 after normalizing for transaction effects .
• Near-term: Expect continued revenue/margin momentum into Q4, with potential stock catalysts from Investor Day; monitor legal/regulatory costs and integration execution. Medium-term: Margin trajectory toward mid-teens Medical margin and expansion via technology and M&A remains intact .

Sources: Q3 2025 8‑K and press release, including GAAP/Non‑GAAP reconciliations and guidance ; external transcript and market reaction references .