Translation: Original published in Finnish on 11/12/2026 at 9:15 am EET.

Bioretec's Q3 report published this morning moderately exceeded our expectations in terms of revenue growth and particularly earnings. The US acted as the revenue growth driver, and its growth demonstrates the effectiveness of the company's new sales representative model. The cost level was also lower than we expected, which, together with stronger-than-estimated revenue, led to an earnings beat. We believe that the most important takeaway from the business review was the clearly right direction of development in the US, even though the absolute figures remain low. Our expectations for Q4 are already at a fairly high level, but we anticipate moderate upward revisions to our forecasts based on the report.

US-driven growth exceeded expectations

The company's Q3 revenue rose by 86% to the 1.3 MEUR level, thereby exceeding our 1.2 MEUR forecast. Growth was supported by broad-based development across all geographical regions, but the standout factor was the 143% growth in the US. According to the company, a boost was provided by a targeted commercial strategy that includes increasing the recurring surgical use of products and strengthening the network of key opinion leaders. We expected the gradual ramp-up of the RemeOs trauma screw and the transition to a direct distribution model to accelerate growth, and the strong volume development serves as key evidence of the new sales model's effectiveness. In addition, European revenue surged 69% year-on-year, indicating that the CE mark received earlier in the year has supported demand and the launch of sales as expected.

A rising gross margin buffers the expenses driven by sales investments

The operating loss settled at -1.8 MEUR in Q3, which was a better performance than our -2.2 MEUR forecast. Bioretec does not publish a full income statement, but according to our estimate, operating expenses were lower than we expected. The company-reported adjusted gross margin improved from the comparison period to just under 69%, which, according to management, reflects a clearly improved quality and structure of revenue. The change negotiations initiated in October after the review period to achieve annual savings of 0.3 MEUR further reinforce the picture of narrowing losses on the path towards a turnaround in earnings.

Verbal outlook emphasizes efficiency measures

Bioretec does not provide any numeric financial guidance. However, management estimates that the overall cost level will remain "stable and controlled" in the near term despite ongoing product development investments. In addition, the company communicated that it aims for a continuous improvement of the margin, following the path set by the development of the previous nine months. Overall, the report was a positive signal, particularly regarding progress in the US and the cost level. Based on the report, we expect to moderately raise our earnings forecasts for the current and next year. Our forecasts for Q4 and the coming years already include the assumption of significant growth.