Cytosorbents Corp’s Earnings Call: Growth Amid Challenges

Cytosorbents Corp ((CTSO)) has held its Q3 earnings call. Read on for the main highlights of the call.

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Cytosorbents Corp’s recent earnings call conveyed a cautiously optimistic sentiment, underscored by strong revenue growth and gross margin improvements. The company is making strategic strides towards profitability and regulatory advancements in the U.S., despite facing challenges such as declining sales in Germany and an increased net loss.

Record Core Product Sales

Cytosorbents Corp reported record core product sales, reaching $37 million over the trailing 12 months as of September 30, 2025. This achievement was driven by robust execution across its global network, highlighting the company’s ability to capitalize on its core offerings.

Gross Margin Improvement

The company achieved a significant improvement in its gross margin, which stood at approximately 70%, up from 61% in the third quarter of 2024. This enhancement reflects effective cost management and operational efficiency.

Revenue Growth

Cytosorbents Corp’s third-quarter revenue rose to $9.5 million, marking a 10% increase from the previous year, or 4% on a constant currency basis. This growth underscores the company’s expanding market presence and successful sales strategies.

Regulatory Progress for DrugSorb-ATR

In a strategic move, the company filed a formal pre-submission meeting request with the FDA for its DrugSorb-ATR product on November 7, 2025. A pre-submission meeting is anticipated in late 2025 or early Q1 of 2026, indicating progress in regulatory pathways.

Cost Reduction and Strategic Workforce Program

To achieve cash flow breakeven by Q1 2026, Cytosorbents Corp has implemented a strategic workforce and cost reduction program, including a 10% workforce reduction. This initiative is part of the company’s broader strategy to streamline operations and enhance financial stability.

Decline in German Market

The company experienced a modest 3% decline in direct sales in Germany, totaling $12.6 million. In response, Cytosorbents is restructuring its sales team and approach in the region to address this challenge.

Operating Loss

The third quarter saw an operating loss of approximately $9.2 million, compared to $4.8 million in the previous year. This increase highlights the financial challenges the company is navigating.

Net Loss Increase

Cytosorbents Corp reported a net loss of $3.2 million for the quarter, equivalent to $0.05 per share, compared to a net loss of $2.8 million or $0.05 per share in the prior year. This underscores the ongoing financial pressures faced by the company.

Forward-Looking Guidance

Looking ahead, Cytosorbents Corp anticipates achieving cash flow breakeven by Q1 2026, supported by its strategic workforce and cost reduction program. The company has also secured $2.5 million in new capital through an amended loan agreement, providing additional financial flexibility. Despite challenges in the German market, the company expects overall sales growth to continue, driven by strong distributor and partner sales.

In summary, Cytosorbents Corp’s earnings call reflects a cautiously optimistic outlook, with strong revenue growth and gross margin improvements counterbalanced by challenges in the German market and increased net losses. The company’s strategic initiatives and regulatory progress are key takeaways for investors and stakeholders.