Strata Q2 2026 earnings: Clinical expansion lifts revenue and adjusted EBITDA

Strata Critical Medical (Nasdaq: SRTA) reported fiscal Q2 2026 revenue of $72.5 million, up 60.7% from $45.1 million, while diluted EPS from continuing operations was $(0.12), compared with $(0.04) a year earlier. Clinical services and acquisitions drove most of the revenue expansion and lifted adjusted EBITDA, but amortization and a noncash earn-out liability revaluation widened the GAAP net loss.

Core earnings data

The results, released on August 4, cover the quarter ended June 30, 2026. Revenue growth was largely attributable to the Clinical business acquired in Q3 2025, additional Clinical acquisitions completed during Q2, and 6.9% organic growth in Logistics.

Gross profit grew faster than revenue, raising gross margin by 100 basis points. However, operating expenses increased 51.1%, including a sharp rise in intangible asset amortization, and the continuing-operations net loss reached $10.5 million.

Prior-year income statement figures have been recast to exclude the divested Passenger business. Strata also cautioned that year-over-year comparisons for net income, adjusted EBITDA and cash flow are not meaningful because the Clinical acquisition and Passenger divestiture occurred in Q3 2025, followed by additional acquisitions in Q2 2026. Operating cash flow figures include discontinued operations.

Business and segment performance

Logistics revenue increased 6.9% to $48.2 million, which the company characterizes as its organic revenue growth. Higher Air revenue was the primary driver, but strength among Organ Procurement Organization customers and softness among Transplant Center customers resulted in shorter trip distances and limited overall revenue growth. The Clinical business also generated additional Logistics demand.

Logistics profitability moved in the opposite direction. Gross profit declined 1.3% to $8.9 million, while gross margin fell 160 basis points to 18.4%. Strata attributed the pressure to higher fuel surcharges and fuel costs, customer mix, modestly lower owned-fleet profitability and weaker ground margins.

Clinical revenue reached $24.3 million, up 22.6% sequentially. Excluding businesses acquired during Q2, Clinical revenue grew 15.1% from Q1, including 23.8% growth in Transplant Clinical revenue and 6.5% growth in Other Clinical revenue. Clinical gross profit increased 27.8% sequentially to $6.3 million, and its margin rose from 25.0% to 26.1%.

Strata completed three bolt-on acquisitions during the quarter: Ohio Valley Perfusion Associates, Louisville Perfusion Services and Heart and Lung Transplant National Recovery Program. These transactions expanded the company’s perfusion and organ-recovery presence, including in Ohio, Pennsylvania, Kentucky, Florida and California.

Clinical mix lifted adjusted margins, while amortization and revaluation deepened the GAAP loss

The quarter produced a clear divergence between adjusted operating performance and GAAP earnings. Adjusted EBITDA rose sequentially from $6.4 million to $7.9 million, with margin improving 140 basis points to 10.9%. Management attributed that improvement to the higher Clinical margin and a larger Clinical revenue mix, partially offset by weaker Logistics margins.

Meanwhile, the company moved from $2.4 million of continuing-operations net income in Q1 to a $10.5 million net loss in Q2. The main factors were $5.0 million of accelerated trademark amortization associated with brand integration and a $10.5 million sequential reduction in other non-operating income related to the noncash revaluation of transaction earn-out liabilities.

Total intangible asset amortization was $6.6 million, up from $0.4 million a year earlier. These amortization and fair-value effects are excluded from adjusted EBITDA, explaining much of the gap between the positive adjusted result and the GAAP loss.

Profitability, cash flow and balance sheet

Selling, general and administrative expenses were $14.0 million, up 5.3% year over year but down $1.6 million from Q1. Adjusted SG&A was $9.1 million, nearly unchanged sequentially, and declined to 12.6% of revenue from 16.4% a year earlier as revenue grew faster than adjusted overhead.

Operating activities generated $5.7 million of cash, while free cash flow was $2.9 million after $2.8 million of capital expenditures, primarily for capitalized aircraft maintenance. The $2.2 million gap between adjusted EBITDA and operating cash flow was mainly associated with a $1.7 million working-capital investment related to expense timing.

Strata ended the quarter with $22.8 million in cash and short-term investments, comprising $16.3 million of cash and cash equivalents and $6.4 million of short-term investments. Acquisitions used $34.8 million of cash during the quarter, making acquisition spending the largest investing outflow.

2026 guidance

Strata raised its full-year revenue and adjusted EBITDA outlook while leaving free cash flow guidance unchanged. The increases incorporate the company’s organic Clinical growth and contributions from completed acquisitions.

Assuming all 2026 acquisitions had closed on January 1, pro forma guidance would be approximately $295 million to $305 million of revenue and $36 million to $38 million of adjusted EBITDA. Strata did not provide GAAP reconciliations for the forward-looking adjusted EBITDA and free cash flow measures because of uncertainty around items including compensation, transaction costs, fair-value measurements and working capital.

Management perspective

Management said the expansion into Clinical services was ahead of schedule based on organic growth and acquisition execution. The three year-to-date acquisitions are projected by the company to add more than $6 million of annualized adjusted EBITDA at targeted mid-single-digit acquisition multiples.

The broader geographic footprint is also intended to reduce clinician travel and increase surgeon and perfusionist productivity. Separately, Strata signed an agreement in late July to take over Statline’s Transplant Center Organ Placement customer relationships over the following year, potentially adding contracted relationships with up to eight customers and creating opportunities for additional Clinical or Logistics work.

Risks investors need to watch

• Acquisition integration and execution: A meaningful part of Q2 growth and the higher annual guidance depends on acquired Clinical operations. Integration expenses, earn-out revaluations or slower realization of projected benefits could affect GAAP earnings and cash generation.
• Logistics margin pressure: Logistics gross margin fell 160 basis points because of fuel costs, customer mix, lower owned-fleet profitability and weaker ground margins. Continued pressure could offset the benefit of a growing Clinical mix.
• Persistent GAAP losses: Adjusted EBITDA was positive, but accelerated amortization and noncash fair-value changes contributed to a $10.5 million continuing-operations loss. The size and variability of these adjustments complicate comparisons between GAAP and adjusted performance.
• Cash deployment and conversion: Acquisitions used $34.8 million of cash during Q2, compared with $2.9 million of free cash flow. The unchanged free cash flow outlook, despite higher revenue and adjusted EBITDA guidance, makes working capital and capital spending important indicators for the remainder of 2026.

Summary

Strata’s Q2 2026 growth was led by the expansion of Clinical services, combining acquisition contributions with double-digit sequential growth excluding Q2 deals. That mix improved gross and adjusted EBITDA margins, but weaker Logistics profitability, accelerated amortization and a noncash earn-out revaluation produced a larger GAAP loss. The next points to monitor are Clinical integration, stabilization of Logistics margins and whether higher adjusted earnings translate into the unchanged full-year free cash flow range.