94% gross margins on restated net revenue. Seven consecutive profitable quarters. FDA inspection with zero nonconformances. Audit resolved. Clinical pipeline building with two randomized controlled trials advancing simultaneously in diabetic foot ulcers and venous leg ulcers; both Medicare-reimbursable indications. Share count at 16.5M diluted with no toxic convertible structures.
BioStem makes bandages from placental tissue. Medicare pays for them because they work on wounds that don't heal; diabetic foot ulcers, venous leg ulcers, surgical wounds. The margin is 94 percent, meaning for every dollar they collect, they keep 94 cents after product cost. That is not a misprint. The raw material is donated tissue. The processing cost is minimal at scale. Medicare sets the price it will pay, and that price is much higher than the cost to make the product. The risk was the paperwork: their accountants reclassified some numbers, which spooked people. The FDA then walked through the actual facility and found zero problems. The bookkeeping changed. The business did not. They are now running two clinical trials to expand into new wound types; and those trials are being funded by the cash the existing business generates every quarter. No emergency fundraise. No dilution event. The company paid for its own clinical development.
Watch the Q1 2026 venous leg ulcer RCT top-line data. A positive readout gives BioStem two documented RCT wins in Medicare-billable indications; that is the data that matters for the CMS relationship and the long-term revenue base. Also monitor quarterly product volume growth for whether the 40 percent QoQ acceleration in Q3 2025 is sustained or was a one-time spike. Sustained volume growth at a 94 percent gross margin compounds fast.