CytoSorbents posts positive operating cash flow of about $43,000 in third quarter
Key Facts
CytoSorbents reported results on November 12 for the third quarter ended September 30, 2026, and said it generated positive operating cash flow of about $43,000 after excluding restructuring payments. The company described this as achieving its breakeven target in the second half of 2026, while total cash use was about $200,000 when those payments were included. The results put operating cash flow in the context of improving revenue and margins and reduced expenses, but also show that available cash declined during the quarter. Cash, cash equivalents and restricted cash totaled about $5.7 million on September 30, compared with $5.9 million on June 30. The company announced the results in a statement issued Thursday and scheduled a call to discuss them that day.
Revenue was $9.7 million, up 3% from $9.5 million in the same period of 2025. The company attributed the growth to higher sales through distributors and strategic partners, saying the channel grew 18% year over year and 10% from the previous quarter. The channel accounted for 76% of quarterly sales, according to the statement. By contrast, sales in Germany fell 20% year over year and represented 24% of quarterly sales. The company said the contraction in the German market was linked to restructuring that resulted in a smaller, more focused sales force and coverage of fewer regions.
Gross margin rose to 75% in the third quarter, compared with 73% in the second quarter of 2026 and 70% a year earlier. The company said manufacturing and procurement improvements supported the increase, alongside an 11% decline in operating expenses to $8.5 million. The operating loss also improved 59% to $1.2 million, compared with $2.9 million in the third quarter of 2025. The net loss narrowed 42% to $1.8 million, or $0.58 per share. The company links these metrics to a lower cost base: it reduced headcount by 24% since September 2025 and cut inventory to $3.2 million on September 30 from $5.3 million at the end of 2025.
Sales results varied across the markets on which the company relies: growth came from distributors and strategic partners, while Germany remained a weak spot during the quarter. The company said it had added two sales representatives and expected to add another in the month after the announcement, followed by two more in early 2027. The expansion of the sales team follows cuts made during restructuring and is intended to broaden coverage, which the company said had contracted in Germany. These steps leave the commercial recovery tied to the company's ability to regain reach in the German market while sustaining growth in other distribution channels. The statement did not provide revenue forecasts for coming periods.
On the regulatory front, CytoSorbents said it is seeking U.S. Food and Drug Administration approval for DrugSorb-ATR and will consider seeking approval from Health Canada once the U.S. regulatory path becomes clearer. The product is not yet approved in the United States or Canada, according to the statement. The company plans to submit a new De Novo application in early 2027, drawing on real-world data evidence that it said would bring the number of patients represented in the application to about 250, or nearly five times the previous number. It said the Brilinta and direct oral anticoagulant programs offer two separate potential pathways to commercialization in the United States. The company estimated the product's initial addressable market at about $300 million in the United States and Canada, and said it could expand to $1–2 billion if the indication were broadened to include additional blood thinners and surgical indications.
In September, the company announced an independent analysis of real-world data showing a relative 37% reduction in major bleeding among urgent coronary artery bypass graft surgery patients who had taken ticagrelor, and said the results would support the new De Novo application. On its listing status, the company disclosed in September that it had regained compliance with Nasdaq's minimum bid price requirement after its shares closed at $1 or more for 10 consecutive trading sessions ending September 21. It said, however, that it had until December 28, 2026, to address the minimum market value of listed securities requirement. These deadlines set the near-term timetable for the company as it pursues its regulatory and commercial plans. The third-quarter results call is scheduled to begin on November 12, 2026, at 4:30 p.m. Eastern time.