Company: MDXG
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001376339-25-000045
Chunk: 2

Company: MIMEDX GROUP, INC.
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 2
Chunk 2
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31, 2024. Sales growth from certain Surgical products, particularly AMNIOFIX and AMNIOEFFECT, as well as contributions from HELIOGEN, drove this increase. 

Cost of Sales and Gross Profit Margin

Cost of sales for the three months ended March 31, 2025 and 2024 was $16.6 million and $13.0 million, respectively, an increase of $3.6 million, or 27.5%, year-over-year. Gross profit margin for the three months ended March 31, 2025 was 81.2% compared to 84.7% for the three months ended March 31, 2024. The year-over-year decrease in gross margin was driven by production variances and product mix. In addition, amortization of our acquired intangible assets during the three months ended March 31, 2025 further decreased margins. There was no equivalent activity during the three months ended March 31, 2024. 

19

Selling, General and Administrative Expense

Selling, general and administrative (“SG&A”) expense for the three months ended March 31, 2025 was $60.0 million, compared to $55.1 million for the three months ended March 31, 2024. The following table shows the composition of this expense between selling and marketing (“S&M”) and general and administrative (“G&A”) components (amounts in thousands):

Three Months Ended March 31,20252024Selling and marketing$46,861 $44,477 General and administrative13,108 10,652 Selling, general and administrative$59,969 $55,129 

Sales and marketing expenses increased $2.4 million or 5%, year over year, which was driven by increases in commissions due to higher sales and higher effective commission rates. General and administrative expenses increased $2.5 million or 23%, year over year, which was driven by incremental spend from legal and regulatory disputes in the current period, including our ongoing litigation with a competitor and several former employees.

Research and Development Expense

Our research and development (“R&D”) expense for the three months ended March 31, 2025 was $3.3 million, compared to $2.8 million for the three months ended March 31, 2024, an increase of $0.5 million, or 17.1%. R&D spend in the quarter was driven by the ongoing enrollment of our