Cytosorbents (NASDAQ:CTSO) Issues Earnings Results, Misses Estimates By $0.03 EPS

Cytosorbents (NASDAQ:CTSO) released its quarterly earnings results on Thursday. The medical research company reported ($0.07) earnings per share for the quarter, missing the consensus estimate of ($0.04) by ($0.03), Zacks reports. Cytosorbents had a negative net margin of 48.94% and a negative return on equity of 309.53%. The firm had revenue of $9.63 million for the quarter, compared to analysts’ expectations of $9.38 million.

Here are the key takeaways from Cytosorbents’ conference call:

• Profitability and cash-burn trends improved: Second-quarter gross margin rose to 73%, adjusted EBITDA loss improved 38% year over year, and operating cash burn fell to approximately $200,000 excluding restructuring payments. Management reiterated its expectation of reaching operating cash-flow breakeven in the second half of 2026.
• Revenue remained essentially flat at $9.6 million: Distributor and strategic-partner revenue increased 16% year over year and direct sales outside Germany rose 9%, offset by continued weakness in Germany and Middle East disruptions. The company plans to add three to five German sales representatives through early 2027.
• DrugSorb-ATR still faces regulatory uncertainty: The FDA previously denied the company’s de novo application because the pivotal STAR-T trial missed its primary endpoint, although management said a new clinical trial is not required. Cytosorbents plans to submit additional mechanistic data and real-world evidence, with separate FDA discussions planned for the ticagrelor and DOAC indications.
• Management highlighted favorable DrugSorb-ATR secondary analyses: In the CABG per-protocol population, the severe-bleeding endpoint achieved a statistically significant win ratio of 1.59, while a composite of severe bleeding or more than one liter of chest-tube blood loss showed a reported 58% relative risk reduction. These analyses may support a renewed FDA submission, though they do not eliminate the prior primary-endpoint miss.
• HemoDefend-BGA represents longer-term strategic optionality rather than current revenue: The universal-plasma technology has completed development and received constructive FDA feedback on a potential clinical pathway, but Cytosorbents does not plan to fund clinical trials from its current resources. Progress depends on government funding, partnerships, licensing, or another strategic transaction.

Cytosorbents Trading Down 9.7%

NASDAQ:CTSO traded down $0.04 during midday trading on Friday, hitting $0.36. 96,364 shares of the company traded hands, compared to its average volume of 61,883. The firm has a market capitalization of $22.62 million, a P/E ratio of -1.24 and a beta of 1.39. The firm’s fifty day moving average is $0.40 and its 200-day moving average is $0.55. Cytosorbents has a 12-month low of $0.35 and a 12-month high of $1.22. The company has a current ratio of 1.09, a quick ratio of 0.81 and a debt-to-equity ratio of 4.70.

Wall Street Analyst Weigh In

Separately, Weiss Ratings reissued a “sell (e+)” rating on shares of Cytosorbents in a research note on Monday, July 6th. One investment analyst has rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Cytosorbents presently has an average rating of “Hold” and a consensus price target of $5.38.

Insider Buying and Selling

In other news, CEO Phillip P. Chan acquired 251,136 shares of the business’s stock in a transaction on Friday, June 12th. The shares were acquired at an average price of $0.40 per share, for a total transaction of $100,454.40. Following the completion of the transaction, the chief executive officer directly owned 1,734,099 shares of the company’s stock, valued at approximately $693,639.60. The trade was a 16.93% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 7.80% of the stock is owned by insiders.

Hedge Funds Weigh In On Cytosorbents

A number of large investors have recently made changes to their positions in CTSO. Avenir Corp boosted its stake in shares of Cytosorbents by 2.9% during the 4th quarter. Avenir Corp now owns 5,230,099 shares of the medical research company’s stock worth $3,343,000 after purchasing an additional 147,261 shares during the period. CIBC Bancorp USA Inc. purchased a new stake in Cytosorbents in the 3rd quarter worth about $161,000. Vanguard Group Inc. lifted its stake in Cytosorbents by 3.7% in the third quarter. Vanguard Group Inc. now owns 2,204,294 shares of the medical research company’s stock worth $2,059,000 after purchasing an additional 79,535 shares during the last quarter. Goldman Sachs Group Inc. boosted its position in shares of Cytosorbents by 149.2% during the first quarter. Goldman Sachs Group Inc. now owns 62,662 shares of the medical research company’s stock valued at $63,000 after buying an additional 37,519 shares during the period. Finally, Citadel Advisors LLC grew its stake in shares of Cytosorbents by 127.3% during the third quarter. Citadel Advisors LLC now owns 65,690 shares of the medical research company’s stock valued at $61,000 after buying an additional 36,790 shares during the last quarter. 32.87% of the stock is owned by hedge funds and other institutional investors.

Cytosorbents Company Profile

Cytosorbents Corporation, founded in 2011 and headquartered in Princeton, New Jersey, is a medical device company focused on critical care and extracorporeal blood purification. The company’s flagship product, CytoSorb, is a hemoadsorption cartridge designed to remove excessive inflammatory mediators such as cytokines, bilirubin and myoglobin from a patient’s blood. By targeting the molecular drivers of hyperinflammation, CytoSorb is intended to stabilize patients undergoing septic shock, cardiac surgery, trauma and organ failure.

CytoSorb has secured regulatory clearance in Europe (CE mark) and is available in more than 65 countries, with a growing presence in Asia, the Middle East and Latin America.