MIMEDX Announces Second Quarter 2024 Operating and Financial Results Net Sales of $87 Million Grew 7% Year-Over-Year for the Second Quarter Second Quarter GAAP Net Income and Earnings Per Share were $18 Million and $0.12

MIMEDX Announces Second Quarter 2024 Operating and Financial Results

Net Sales of $87 Million Grew 7% Year-Over-Year for the Second Quarter

Second Quarter GAAP Net Income and Earnings Per Share were $18 Million and $0.12, Respectively

Second Quarter Adjusted EBITDA was $20 Million, or 23% of Net Sales

Management to Host Conference Call Today, July 31, 2024, at 4:30 PM ET

MARIETTA, Ga., July 31, 2024 MiMedx Group, Inc. (Nasdaq: MDXG) ( MIMEDX or the Company ), today

announced operating and financial results for the second quarter 2024.

Recent Operating and Financial Highlights:

Joseph H. Capper, MIMEDX Chief Executive Officer, commented, Our second quarter 2024 results were marked by exceptional resolve,

focus and execution, resulting in total net sales growth of 7% year-over-year and an Adjusted EBITDA margin of 23%, both compared to a strong second quarter in 2023. During the quarter, we faced commercial challenges as a result of certain

competitive behavior. Specifically, several companies continue to engage in schemes to sell artificially high-priced, yet clinically unproven, skin substitutes primarily in the private office, by sharing a substantial portion of the revenue with

treating physicians. Since remedial action has yet to be implemented, these selling practices have escalated dramatically, reaching a fevered pitch as of late. As a result, we unfortunately experienced higher than normal employee and customer

attrition during the quarter as people were swept up by the promise of riches.

Mr. Capper continued, We are in active dialogue with

several regulatory and legislative bodies in an effort to promote positive change in this area. Despite these near-term challenges, we are enthusiastic about our progress in pursuit of the company s long-term priorities. We are excited for the

full market release of our first xenograft product, HELIOGEN, to help drive the continued expansion of our footprint in various surgical settings. Our commitment to high-quality clinical and scientific research is unmatched in our market, as

evidenced by our recent peer-reviewed publication in Nature - Scientific Reports.

Second Quarter 2024 Results Discussion1

MIMEDX reported net sales for the three months

ended June 30, 2024, of $87 million, compared to $81 million for the three months ended June 30, 2023, an increase of 7%. The increase was primarily driven by growing contributions from its AMNIOEFFECT and EPIEFFECT products, partially offset by commercial challenges associated with competitive behavior in the marketplace, namely the

sale of artificially high-priced skin substitute products and the ongoing uncertainty related to Medicare s reimbursement of these products, based upon recently proposed Local Coverage Determinations, and headwinds relating to turnover of

certain of our sales team and customers.

Gross Profit and Margin

Gross profit for the three months ended June 30, 2024, was $72 million, an increase of $5 million as compared to the prior year period. Gross

margin for the three months ended June 30, 2024 was 83.0%, compared to 83.3% in the prior year period. The year-over-year reduction in gross margin was driven by the amortization of distribution rights stemming from the TELA Bio, Inc. and

Regenity Biosciences agreements entered into during the first quarter of 2024. Excluding this amortization expense, gross margin for the second quarter was roughly flat compared to the prior year period.

Selling, general and administrative

( SG&A ) expenses for the three months ended June 30, 2024, were $55 million compared to $52 million for the three months ended June 30, 2023. The increase in SG&A was driven by year-over-year increases in

compensation related to higher salary and benefit costs from merit raises, promotions, as well as commissions driven by increases in sales volumes and proportionally higher sales through sales agents. Incremental spend from legal and regulatory

disputes in the current period also contributed to the increase.

Research and development expenses for the three months ended June 30, 2024, were

$3 million compared to $4 million for the three months ended June 30, 2023. The decrease was the result of lower headcount and the timing of R&D activities compared to the prior year.

Investigation, restatement and related expense for the three months ended June 30, 2024, was a benefit of $10 million compared to expense of

$1 million for the three months ended June 30, 2023. The benefit in the second quarter 2024 resulted from various settlements, including those with former officers and other matters.

Net income from continuing operations for the three months ended June 30, 2024 was $18 million compared to $9 million for the three months

ended June 30, 2023.

Cash and Cash Equivalents

As of June 30, 2024, the Company had $69 million of cash and cash equivalents compared to $82 million as of December 31, 2023. The decrease

during the period ended June 30, 2024 was primarily a result of our repaying the $30 million outstanding balance on our revolving credit facility in the first quarter of 2024, as well as the $5 million cash payment also in the first

quarter 2024 associated with our agreement with TELA Bio, Inc., paving the way for our exclusive manufacturing and supply agreement with Regenity Biosciences. The decrease was partially offset by year-over-year increases in net sales, which drove

increases in collections from customers.

For 2024, MIMEDX expects net sales growth to be in the mid-to-high

single-digits as a percentage compared to 2023, due principally to the ongoing uncertainty surrounding Medicare reimbursement policy for skin substitutes in the private office and adjacent care settings.

Longer-term, the Company continues to expect to achieve annual net sales growth in the low double-digits as

a percentage with an adjusted EBITDA margin above 20%.

Conference Call and Webcast

MIMEDX will host a conference call and webcast to review its second quarter 2024 results on Wednesday, July 31, 2024, beginning at 4:30 p.m., Eastern

Time. The call can be accessed using the following information:

U.S. Investors: 877-407-6184

International Investors: 201-389-0877

Conference ID: 13747365

A replay of the webcast will be

available for approximately 30 days on the Company s website at www.mimedx.com following the conclusion of the event.

Important Cautionary

This press release includes forward-looking statements. Statements regarding: (i) future sales or sales growth; (ii) our 2024

financial goals and expectations for future financial results, including levels of net sales, Adjusted EBITDA, and Adjusted EBITDA margin; (iii) our cash flows; (iv) our expectations regarding the use of our products, including EPIEFFECT

and AMNIOEFFECT; (v) our expectations regarding the launch of HELIOGEN; and (v) continued growth in different care settings. Additional forward-looking statements may be identified by words such as believe, expect,

may, plan, goal, outlook, potential, will, preliminary, and similar expressions, and are based on management s current beliefs and expectations.

Forward-looking statements are subject to risks and uncertainties, and the Company cautions investors against placing undue reliance on such statements.

Actual results may differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ from expectations include: (i) future sales are uncertain and are affected by competition, access to

customers, patient access to healthcare providers, the reimbursement environment and many other factors; (ii) the Company may change its plans due to unforeseen circumstances; (iii) the results of scientific research are uncertain and may

have little or no value; (iv) our ability to sell our products in other countries depends on a number of factors including adequate levels of reimbursement, market acceptance of novel therapies, and our ability to build and manage a direct

sales force or third party distribution relationship; (v) the effectiveness of amniotic tissue as a therapy for particular indications or conditions is the subject of further scientific and clinical studies; and (vi) we may alter the

timing and amount of planned expenditures for research and development based on regulatory developments. The Company describes additional risks and uncertainties in the Risk Factors section of its most recent annual report and quarterly reports

filed with the Securities and Exchange Commission. Any forward-looking statements speak only as of the date of this press release and the Company assumes no obligation to update any forward-looking statement.

MIMEDX is a pioneer and leader focused on helping humans heal. With more than a decade of helping clinicians manage chronic and other hard-to-heal wounds, MIMEDX is dedicated to providing a leading portfolio of products for applications in the wound care, burn, and surgical sectors of healthcare. The

Company s vision is to be the leading global provider of healing solutions through relentless innovation to restore quality of life. For additional information, please visit www.mimedx.com.

Selected Unaudited Financial

Condensed Consolidated Balance Sheets

(in thousands) Unaudited

Condensed Consolidated Statements of Operations

(in thousands, except share and per share amounts) Unaudited

Condensed Consolidated Statements of Cash Flows

(in thousands) Unaudited

Reconciliation of Non-GAAP Measures

In addition to our GAAP results, we provide certain non-GAAP measures including Adjusted EBITDA, related margins, Free

Cash Flow, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Net Income, and Adjusted Earnings Per Share ( Adjusted EPS ). We believe that the presentation of these measures provides important supplemental information to management

and investors regarding our performance. These measures are not a substitute for GAAP measures. Company management uses these non-GAAP measures as aids in monitoring our ongoing financial performance from quarter-to-quarter and year-to-year on a regular basis and for benchmarking against comparable

These non-GAAP financial measures reflect the exclusion of the following items:

Adjusted EBITDA and Adjusted EBITDA margin

Adjusted EBITDA consists of GAAP net income (loss) excluding: (i) depreciation, (ii) amortization of intangibles, (iii) interest (income) expense,

net, (iv) income tax provision, (v) share-based compensation, (vi) investigation, restatement and related expenses, (vii) expenses related to disbanding of the Regenerative Medicine business unit, (viii) extraordinary legal

and regulatory expenses, (x) transaction-related expenses, and (ix) impairment of intangible assets.

Please refer to the tables at the

beginning of this press release for reconciliation to GAAP net income (loss).

Adjusted Net Income (Loss)

Adjusted Net Income (Loss) provides a view of our operating performance, exclusive of certain items which are

non-recurring or not reflective of our core operations.

Adjusted Net Income is defined as GAAP net income (loss)

plus (i) loss on extinguishment of debt, (ii) investigation restatement and related expenses, (iii) impairment of intangible assets, (iv) amortization of acquired intangible assets, (v) transaction related expenses,

(vi) strategic legal and regulatory expenses, and (vii) expenses related to disbanding of our Regenerative Medicine business unit, and (viii) the long-term effective income tax rate adjustment.

A reconciliation of GAAP Net Income (Loss) to Adjusted Net Income appears in the table below (in thousands):

A reconciliation of various line items included in our GAAP unaudited condensed consolidated statements of operations to

Adjusted Net Income for the three and six months ended June 30, 2024 and 2023 are presented in the tables below (in thousands):