Thank you. Our first question comes from the line of Chase Knickerbocker with Craig Hallam. Please go ahead.

Good afternoon. Thanks for taking the questions. Maybe just to start for me, Joe, I just wanted to dig in a little bit further on kind of what makes this deal the right one, a little bit more kind of specifically on the product side. So I'd imagine Accelerate was kind of central here, but maybe just take us through the three major Sonara products and your thoughts on kind of the synergies versus overlap and kind of, you know, kind of the specifics of the products as well as far as kind of what kind of drew this deal being the right one.

Yeah, thanks, Chase. You know, before I jump into that, I don't want to lose sight on the fact that we had an outstanding quarter. This is an exciting deal, but it should not overshadow the fact that we made meaningful progress in Q2. Surgical revenues were up 15% once again. We made great progress in the wound care market. We talked about our sequential volume growth in wound care centers of 22% or in wound care overall, in wound care centers. Sequential volume growth was up 44%. And in wound care centers, we even had year-over-year volume growth. That is meaningful progress. Talked about taking out a fair amount of expense to get us back to profitability, which we saw towards the end of the quarter. We had sequential revenue growth for the company in accurate 9%, which was phenomenal performance. June revenue was $24 million. If you took that June revenue and just figured we did that on average, for the back half of the year on a monthly basis, you're already within range, the range that we put out for revenue. If we stop there, that's fantastic news. Now add in the Senera acquisition. Yes, this is a deal that makes a ton of sense for us. You've heard us talk about the importance of expanding our surgical portfolio on every one of these calls. We've licensed a few products and we've seen excellent growth. That's where investments have been in terms of additional Commercial Resources, Clinical Data, etc. This just accelerates that plan. As you mentioned, most of their LTM revenue comes from the Celerate Rx product. It's well penetrated into the marketplace. We think we can help expand that even further given the reach of our commercial organization. Second product that accounts for a fair amount of sales is their BioSurge product, which is a rinse product. I talked about it in my prepared comments. Super excited about that as well. We think our direct team can do more with that, frankly, and we think there's a possibility to take a variant of that into the wound care center, which is, frankly, they haven't really penetrated much because that's not where their reach is today. And then I also mentioned the Ostick product, which is a bone adhesion product that's in development. And that, frankly, is another product that we're super excited about. So all of these things together and other products that they have in development made a ton of sense for us. We've been working with their team for, We started back in 2025, got to know them a lot better over the course of this process and are super impressed with the people in that organization. And that's probably the most important thing for me when I look at combining companies. If you don't have cultures that match up, it's just not going to work. So the more we got to know them, the more excited we got about this potential deal.

Joe, could you maybe just touch on kind of the momentum that you've seen kind of continuing through July? I would imagine that that, you know, kind of ending the quarter at 24 million, that was probably a kind of a steep increase from, you know, kind of what you had seen in April per your commentary on the Q1 call. So can you just maybe talk about kind of how that momentum has continued through July? and then just a point of clarification. Can you just give us a sense for what portion of your wound business at this stage is HOPD, you know, wound care center relative to the other sites of service and just kind of how what you're seeing is kind of differing in those different sites of service at this point?

Well, that's, HOPD is where all the growth is coming from. We're not seeing sequentious growth anywhere else but there. We have not broken up by sites of service. As far as July, since it's not over, I'm not going to comment on it. But suffice to say, we continue to see good momentum in our business.

It's fair to say you've seen continued improvement, Joe.

We continue to see good momentum across our business. Thank you.

Your next question comes from the line of Frank Tikunin with Lake Street Capital Markets. Please go ahead.

Great. Thank you for taking the questions. Congrats on the quarter and the acquisition, of course. Would like to start with one on the acquisition as well. Would like to kind of cover the overlap question. You mentioned Sonara has over 4,000 accounts that they have contracts with, but I believe they have about 1,500 that they are active within. Realizing you're probably early and looking at all that overlap, maybe talk to how much of those incremental 2,500 you may already have relationships. And then two, on their sales force, how much overlap do you have on those geographies and where might you be able to expand or see synergies from either side?

Frank, way too early to talk about that level of specificity. We just signed this deal today. We will work very closely with the Sonata team over the next few months to develop a well-thought-out integration plan that takes into account best practices from both organizations, and certainly we're going to look to see where we have overlap and where we have potential gaps that we could augment. But it's kind of too early to start going into the details of what that looks like.

Okay. Fair enough. And then maybe one on any overlapping products across your two portfolios where you could see some potential cannibalization in either direction or any thoughts on that?

Now, for the most part, we view the two portfolios as extremely complementary. And the products, and I would say even the physicians that we're targeting are incredibly complementary. and the procedures that we're targeting are incredibly complimentary. There may be some overlap, but I think it's minimal.

Okay, fair enough. And then maybe back on the wound business, you made a couple of comments on MAX and it feels like there's some recovery there, but maybe take us a little bit deeper into how that trend line has looked. And I assume that has a good contributor to why your June was as good as it is. So any other additional color on the MAX would be greatly appreciated.

Yeah, I can't share market data because I'm not really getting great market data on the wound care business today. I could just talk about what we're seeing, and I outlined those percent increases on a sequential basis. What we anticipated was patients would start to migrate into the wound care centers, and certainly that seems like that has happened, right? And we have a pretty good position in that segment and is likely why our business is trending I can't speak for other companies. I'm not sure how everybody's doing. So I can't really speak to the wound care market at large. I just know that we have a strong position there and our business is trending in a very positive direction. So remember though, we're still in kind of the early recovery phase. There's a lot of noise in the market. We talked about challenges at the MAC level to process claims. We've mentioned the challenges with CMS's implementation of the Wiser model, which is really impacting us in four states. That's been a real headwind. There's a lot of customers that have left the business. Folks are being plagued with audits and callbacks that they're trying to work their way through. All of that just creates challenges in the overall market. In spite of that, we're seeing fairly good progress, again, specifically in wound care centers.

Got it. That's helpful. Thanks for taking the questions.

Your next question comes from the line of Dave Turkley with Citizens. Please go ahead.

Hey, good evening. Yeah, congrats on the transaction and the performance, the sequential uptake. I don't know if you're going to be willing to talk about some of the details here, but I'll throw a couple out and see if you can expand on them. The $20 million in synergies... You know, given that you're placental and they're collagen and synthetic, could you just talk about where you think you're going to get those and specifically from what bucket?

Yeah, Dave, this is Doug. Good question. I think the way we look at it is, you know, the synergies are going to be derived from your typical public to public acquisition overlaps. So we'll get more than half of the $20 million from GNA, and the rest of it will be spread around.

Thank you for that. I guess the other one I had, there was a comment in the release that said, driving strong profitability post-close. Was that comment intended to mean EBITDA, or does that actually mean bottom line, like net income?

Well, we look at The whole gamut of financial measures, but primarily EBITDA is our focus initially. And we'll exit the year on a positive note from an organic perspective. And Sonara already has a strong track record of healthy flow through on their side, coupled with the synergies that we expect. We expect a really healthy financial profile after the combination.

Yeah, it's really rare. that you can execute an acquisition like this that's immediately accretive up and down the P&L. So that's really exciting. We'll be profitable as a standalone company in the back half of the year. Scenarios already run under the fairly decent adjusted EBITDA margin, and then we'll have the combination synergies on top of that. So we feel pretty good about the direction of the company in terms of both revenue and profitability.

One last one I'll just throw out there, Doug. I don't know if you have this number off the top of your head, but given the stock component of the deal, do you have an estimate of what the shares outstanding will be in 2027?

All in, Dave, we're at roughly 150 million shares today, and we're going to issue just over 4 million new shares. if that gives you an idea about total going forward.

Yeah, and Dave, just to pile on there in the queue, there's some disclosure. We talked about the share repurchase, which took three and a half or so out in the second quarter. So there's kind of a netting effect. I mean, it's slightly higher, but don't think of it as an all-in extra four and a half.

Yeah, excellent point, Matt. We took out close to three and a half million shares at $3.67. will reissue about 4.2 million shares. So a net increase of about 700,000 shares to our float since the time we executed our buyback program. And obviously we stopped the buyback program as this deal got closer to looking likely.

Got it. Thank you very much.

Your last question comes from the line of Brad Bowers with Mizuho Securities. Please go ahead.

Hey, thanks for taking the questions, guys. Maybe to ask one kind of on the reverse side, I mean, looking at the Sonara business, you know, some pretty attractive things about it, you know, 100 million, so revenue-based, 90% plus gross margins, you know, why is it the right time for this business to kind of be selling to Memetics? You know, honestly, on the surgical side, I think, you know, similar EV, you know, similar size businesses, so just wanted to kind of hear about, you know, What they've seen and why they're selling and then, you know, if it is that growth was kind of slowing, how Memetics can kind of take it to the next leg?

Brad, I'm not going to speak for them. I will tell you that they are still incredibly bullish on their business. They have a robust product portfolio. They have more products in the pipeline. They've been resourcing the business. They streamlined it a bit last year. They saw nice growth last year, nice growth into this year. So you would have to ask them why this made sense for them to do it and why this was the right time.

Okay, sure thing. That makes sense. Just thinking about, I guess, the gap between the $100 million of revenue that's being bought and the $4 billion of new TAM clearly underpenetrated and just wanted to hear about, I guess, what's available maybe near term and what level of investment is required to get maybe some of the other pieces of the new TAM.

I think just with our larger commercial presence and the momentum that they've built up behind their portfolio, we'll find a lot of cross-selling opportunities. And again, you mentioned the TAM. It is a big TAM. It is underpenetrated. These markets are still in development. Use of these types of products in a variety of different surgical subspecialties is still in development, which is frankly quite exciting for us. So I think there's a ton of upside here.

Thanks. And then just one on the core business, just, you know, obviously, again, buying a good amount of EBITDA here, you know, obviously nice that it's in a creative deal. Just wanted to hear about what was implied on the core business. You know, I think you guys have actually been pretty good with guiding us on the wound business. So, you know, there's some visibility here and it sounds like next year would be better. So maybe just, I don't know about if you'd be willing to give kind of what core EBITDA would have been, you know, obviously 20% with the deal, but it might imply something like low double digits for the core business. Just wanted to hear about recovery into next year expectations. Thank you.

So I'll start and you can provide color. We expect to be profitable in the back half of the year, Dave, for all the reasons that we articulated in the script and just consistent with our prior quarter call. So we'll exit the year on a strong, you know, sequential revenue growth and strong flow through, which we expect to carry into 2027 as we sort of get back to not just double digits, but certainly well into the double digits in terms of just organic flow through for next year. Just based on everything that we know about our new products, our launches and momentum, both in wound and surgical, we expect to grow in both of those franchises.

Yeah, you could put the pieces together. This 2026 is clearly a reset year for the wound care business, and we continue to see great momentum in surgical. So you reset the business in 2026. If you're back to normal growth rates for the business, Overall in 2027, you know, that chunk of our business is up 300 million plus. So then you add these guys in. We're saying conservatively we're over 400 million. We're not saying how much over 400 million because we're still in the early stages of this. And I think the 20 plus percent EBITDA margin is also very safe. We're being conservative there as well. Thanks, guys. Congrats on the deal. Thank you. Thanks, Steve.

This now concludes our question and answer session. I would like to turn the floor back over to Joe Capper for closing comments.

Thanks, operator. Thanks, everybody, for your continued interest in the company. At this point, we'll conclude the call and we'll talk to you all at the end of next quarter. Thank you very much.

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day.