By Thomas Kerr, CFA
NASDAQ:CTSO
READ THE FULL CTSO RESEARCH REPORT
Preliminary 2025 Financial Results & Business Update
On January 12, 2026, CytoSorbents (NASDAQ:CTSO) announced preliminary 2025 financial results and other business updates.
For the 4th quarter of 2025, total revenues are expected to be approximately $9.2 million, which is roughly flat compared to the prior year period. Full year revenues are projected to reach approximately $37.0 million, which is roughly 4% growth compared to $35.6 million in 2024.
The company expects a meaningful increase in gross margins, which is expected to reach between 73%-75% in the 4th quarter, which is up from 71% in the prior year period and 70% in the 3rd quarter of 2025.
Full-year gross margins are expected to be approximately 72%, which is an improvement from 71% for full-year 2024.
In other news, the company announced that the results of the important STAR-T study for DrugSorb®-ATR have recently been accepted for publication in a top cardiac surgery journal. The publication is currently in press and should be publicly available online soon.
The company also noted they have scheduled a Pre-Submission Meeting this month with the FDA to confirm regulatory requirements for a new De Novo Application for DrugSorb®-ATR. Pending the outcome of the Pre-Submission Meeting, the company expects to file a new De Novo Application by the end of the 1st quarter of 2026.
In addition, the company indicated that cumulative CytoSorb treatments have now exceeded 300,000 worldwide. CytoSorb is approved in the European Union and distributed to over 70 countries worldwide.
Valuation and Estimates
Based on these preliminary results, we adjust our full year 2025 revenue estimate to $37.1 million and maintain our 2025 loss per share of ($0.18). We adjust our 2026 revenues estimate to $41.2 million and our loss per share to ($0.08). Our 2026 revenue estimate does not include revenues from the potential commercialization of DrugSorb-ATR.
Based on ongoing cost controls and the maintenance of gross margins above 70%, we believe the core business of the company (i.e., the existing CytoSorb business) could reach close to cash flow breakeven in the 1st quarter of 2026.
Beginning in 2025, the company began a significant reorganization of the direct sales team and strategy in Germany (its largest market for the CytoSorb device). This includes the rebalancing of territories and hospital accounts with the goal of restoring sales growth through deeper customer engagement, more effective market development, and improved sales representative productivity. The company is pleased with the initial progress of this reorganization and remains confident it will lead to stronger execution, improved performance, and more robust sales growth in the region.
Last year, the company implemented significant cost-cutting measures to reduce the cash burn, including major reductions in headcount, termination of non-core R&D programs, termination of the STAR-D trial to focus on STAR-T, and a third consecutive year of salary freezes for executive management, with management voluntarily reducing salaries in exchange for stock options in 2024. The benefit of these cost cuts on operating expenses have been apparent in the significant cash burn reduction for the past four quarters.
Based on earlier than expected cash flow breakeven status, we increase our price target to $5.00 per share.
We believe the company has adequate liquidity and funding options to support its business model through the expected regulatory approval of DrugSorb-ATR and the subsequent commercial launch in 2026.
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