How does Strata help customers save money on potential dry runs, and which organs have the highest grade rate?

Management explained that deploying a surgeon locally for risk evaluation significantly reduces the cost risk associated with dry runs, as the airplane is not activated until organ acceptance is confirmed. This allows customers to attempt more high-risk organ procurements. “The nice thing about our ability to deploy a surgeon locally is that you're taking much, much less risk in terms of the overall cost. Because again, you try not to turn on that airplane until you know that it's not going to be a dry run.”

Can management clarify how much of the guidance increase is due to Q2 outperformance versus acquisition-related contributions?

Management stated that approximately $11.5 million to $12 million of the revenue guidance increase and about $3.5 million of the adjusted EBITDA guidance increase are attributable to acquisitions made so far in 2026. The remainder is due to outperformance in the base business. “If you just take what we've disclosed on the acquisitions that we've made so far and kind of during that -- you're looking at a revenue contract 2026 of kind of $12 million -- $11.5 million to $12 million is what the math comes up with. And then on adjusted EBITDA, if you add it all up, you're at about $3.5 million on -- so that's the portion of the guidance change that's related to the acquisitions and then the rest is just related to outperformance in the base business.”

What initiatives are in place to restore logistics gross margin to the 20% target, and how sustainable are these impacts?

Management detailed plans to remove lower-margin airplanes from smaller operators and replace them with more efficient dedicated lift. They are also optimizing the utilization of owned airplanes and ground vehicles/drivers to improve ground margins. These changes have already begun in July and are expected to be lasting. “Structurally, we have some operators that are just operating at much lower margin, particularly smaller operators where maybe we only have 1 airplane with them. And so we've already proactively removed 1 or 2 of our lowest margin airplanes from the overall addressable fleet.”

SRTA

Strata Critical Medical (SRTA) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Health Care· Aug 4, 2026

Source: earnings call transcript

Executive summary

Strata Critical Medical Q2 FY26 — Strong Clinical Growth and Accelerated Capital Deployment

Strata Critical Medical delivered a strong second quarter, marked by robust organic growth and strategic acquisitions in its clinical services segment, which now represents a larger portion of the business with higher margins. Despite short-term headwinds in logistics, including a customer volume reduction and margin compression, the company is proactively implementing initiatives to restore profitability and is well ahead of its capital deployment plan, positioning for continued cash generation and long-term success.

Highlights

Clinical revenue increased 15.1% sequentially (excluding acquisitions) in Q2 FY26, driven by 23.8% growth in transplant clinical revenue.
Clinical gross margins rose to 26.1% in Q2 FY26, up from 25% in Q1.
Generated $5.7 million of operating cash flow and $2.9 million of free cash flow in Q2 FY26, marking the second consecutive quarter of cash generation.
Completed 3 bolt-on acquisitions in Q2 FY26, adding over $20 million of revenue and $6.3 million of projected annualized adjusted EBITDA.
Increased 2026 revenue guidance to $285 million-$295 million (up from $260 million-$275 million) and adjusted EBITDA guidance to $33 million-$35 million (up from $29 million-$33 million).

Concerns

Logistics revenue growth moderated to 6.9% YoY and increased only 1% sequentially, below expectations.
Logistics gross margins fell to 18.4% in Q2 FY26 (from 19.3% in Q1 FY26), below the 20% expectation, due to higher fuel surcharge, unfavorable customer mix, and higher unscheduled maintenance.
Anticipate a roughly 3% logistics revenue headwind in Q3 FY26 due to a nonexclusive customer significantly reducing flying for one organ type.

Guidance & targets

Category	Target	Timeline	Confidence
2026 Revenue	$285 million to $295 million high materiality	FY26	High
2026 Adjusted EBITDA	$33 million to $35 million high materiality	FY26	High
2026 Free Cash Flow (before aircraft acquisitions)	$15 million to $22 million medium materiality	FY26	Medium
Logistics Revenue Sequential Growth	decrease high single digits medium materiality	Q3 · FY26	High
Logistics Revenue	recover to near Q2 2026 levels medium materiality	Q4 · FY26	Medium
Logistics Gross Margin	18.5% to 20% range medium materiality	H2 FY26	High
Logistics Gross Margin	20% target medium materiality	FY27	High
Clinical Revenue Sequential Growth	approximately 20% medium materiality	Q3 · FY26	High
Clinical Revenue Sequential Growth	mid-single-digit medium materiality	Q4 · FY26	High
Clinical Gross Margin	27% to 28% range medium materiality	H2 FY26	High
Adjusted SG&A	low $9 million range low materiality	H2 FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Logistics Revenue growth moderated due to lapping prior year customer wins and dynamic of shorter trips. Gross margin declined due to higher fuel surcharge, unfavorable customer mix (shorter, lower-margin trips), higher unscheduled maintenance, and mix shift to lower-margin third-party ground vehicles. Gross margin excluding fuel surcharge: 19%	—	6.9%	1%	18.4%
Clinical Revenue growth driven by continued base business growth and contribution from Q2 acquisitions. Gross margin increased due to mix shift to higher-margin transplant clinical business.	$24.3 million	—	22.6%	26.1%
Transplant Clinical Strong sequential growth. Higher gross margin compared to overall clinical business.	—	—	23.8%	30% range
Other Clinical Sequential growth driven by acquisitions of Louisville Perfusion Services and Ohio Valley Perfusion Associates.	—	—	6.5%	—

Deals & partnerships

Louisville Perfusion Services Regional provider of perfusion services to cardiac surgery programs.

One of three bolt-on acquisitions closed in Q2 FY26, fitting within capital allocation framework at mid-single-digit acquisition multiples.

Ohio Valley Perfusion Associates Regional provider of perfusion services to cardiac surgery programs.

One of three bolt-on acquisitions closed in Q2 FY26, fitting within capital allocation framework at mid-single-digit acquisition multiples.

Heart and Lung Transplant National Recovery Program Provider of surgical organ recovery services.

One of three bolt-on acquisitions closed in Q2 FY26, fitting within capital allocation framework at mid-single-digit acquisition multiples.

Statline Agreement to take over Statline's transplant center organ placement customer relationships. maximum aggregate potential fee under $1 million rolling basis over the next year

Statline's parent company sought to exit noncore organ placement business. Structure prioritizes continuity for centers and employees during transition. Unit economics consistent with current business.

Risks & headwinds

Significantly reduced flying by a nonexclusive customer for one organ type. Starting in June, persisting in Q3 FY26, largely mitigated by Q4 FY26.

Roughly 3% of logistics revenue

Mitigation:Expect unique circumstances not to be replicated; pipeline of new logistics customers and growth from existing customers expected to bridge the gap by year-end.

Lower-than-expected logistics gross margin. Q2 FY26, expected to improve to 18.5%-20% in H2 FY26 and 20% target in FY27.

Fell to 18.4% in Q2 FY26 versus 19.3% in Q1 FY26 and expectation of approximately 20%.

Mitigation:Higher fuel surcharge (partially passed through), unfavorable customer mix (shorter, lower-margin trips), higher unscheduled maintenance expenses, and mix shift to lower-margin third-party ground vehicles. Initiatives underway to structurally increase gross margins by eliminating less efficient operators and favorable changes to supply contracts, and improving ground vehicle utilization.

Higher nonrecurring cash costs and working capital build offsetting adjusted EBITDA increase. Q2 FY26, anticipated for FY26.

$2.2 million difference between adjusted EBITDA and operating cash flow in Q2 FY26 driven by $1.7 million increase in working capital and nonrecurring transaction-related cash costs.

Mitigation:Related to accelerated pace of acquisition activity and faster growth in transplant clinical. Expected to be temporary as cash balance builds into year-end.

Typical summer seasonality impacting logistics revenue. Q3 FY26

Heart, liver, and lung industry transplant volumes fell between 3% and 6% between Q2 and Q3 over the last 3 years.

Mitigation:Expected and factored into Q3 guidance; recovery expected by Q4 FY26.

Fewer organs being accepted for transplant at several centers. July (Q3 FY26)

Observed from July to date.

Mitigation:Customer base performance can vary from industry; no specific mitigation stated beyond general expectation of recovery by Q4.

What to watch in Q3 FY26

Logistics Revenue Recovery

Q4 FY26

Current Expected high single-digit sequential decrease in Q3 FY26.

Target Near Q2 2026 levels.

Why it matters

Logistics revenue recovery is crucial for overall growth and mitigating the impact of the nonexclusive customer headwind.

By Q4, we expect Logistics revenue to recover to near Q2 2026 levels.

Find out whether SRTA delivers this. Inve re-checks your case every morning.

Q&A highlights

Is Strata gaining market share in the machine perfusion segment, given flat industry volumes, and how is logistics performing?

Management highlighted strong sequential growth in the clinical business and increasing penetration of NRP (Normothermic Regional Perfusion) in DCD donors, which supports their third-party surgical recovery and NRP services gaining ground. They also noted that third-party surgical recovery is becoming more cost-effective for long-distance brain-dead recoveries, saving customers money.

“I think the best thing to look at is the growth sequentially in our clinical business, which was very strong. We do think that overall the combination of our third-party surgical recovery and NRP services is gaining ground in the marketplace.”

asked by Yuan Zhi · answered by William Heyburn

2 min read 6 chapters

Detailed narrative

Clinical Business Expansion and M&A Strategy

Strata significantly expanded its clinical services footprint in Q2 FY26, completing three bolt-on acquisitions that added over $20 million in revenue and $6.3 million in projected annualized adjusted EBITDA. These acquisitions, including Louisville Perfusion Services, Ohio Valley Perfusion Associates, and Heart and Lung Transplant National Recovery Program, strengthen the company's competitive positioning, expand its national footprint, and increase its network of experienced surgeons and perfusionists.

The company is ahead of its capital deployment schedule and expects the pace of acquisitions to slow in H2 FY26.

Logistics Segment Headwinds and Mitigation

The logistics segment experienced moderated growth and a decline in gross margins in Q2 FY26, primarily due to a nonexclusive customer reducing flying, higher fuel surcharges, and unfavorable customer mix. Management anticipates a high single-digit sequential revenue decrease in Q3 FY26 for logistics but expects recovery to near Q2 levels by Q4 FY26.

Initiatives are underway to structurally improve logistics gross margins back to the 20% target for FY27, including eliminating less efficient operators and optimizing supply contracts.

Integrated Service Offering and Market Position

Strata's integrated offering, combining clinical services with captive transplant logistics, is highly differentiated. The company operates a captive fleet of 35 aircraft and 55 ground vehicles, supported by a 24/7 logistics operations center. This integrated approach allows for more cost-effective and efficient service delivery, reducing customer costs and maximizing clinician productivity.

The offering is also compatible with a growing list of machine perfusion devices, maintaining an equipment-agnostic strategy.

Organ Transplant Industry Trends

The industry continues to see a recovery in DCD (Donation after Circulatory Death) donors, with a low single-digit sequential increase in Q2 FY26. Heart, liver, and lung transplants are growing, largely driven by the rising penetration of Normothermic Regional Perfusion (NRP), which reached approximately 59% of DCD donors in Q2 FY26, up from 57% in Q1 FY26.

NRP has been shown to result in approximately 50% more usable organs per DCD donor.

Statline Partnership for Organ Placement

Strata signed an agreement to take over Statline's transplant center organ placement customer relationships on a rolling basis over the next year. This arrangement, while not immediately material financially, provides long-term contracted attachment points with up to eight new customers, potentially leading to incremental clinical or logistics business over time.

The transition involves a fee per contract for customers and employees who sign on with Strata, with unit economics consistent with current business.

Financial Performance and Cash Generation

The company reported strong financial results with total revenue increasing 60.7% YoY to $72.5 million and gross profit up 68.9% YoY to $15.2 million in Q2 FY26. Adjusted EBITDA rose to $7.9 million, with a margin of 10.9%, a 140 basis point sequential increase.

Strata generated $5.7 million in operating cash flow and $2.9 million in free cash flow, marking the second consecutive quarter of cash generation, with expectations for even stronger generation in the second half of the year.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.