Elutia Inc. (NASDAQ: ELUT) reported first quarter 2026 financial results and provided updates on its drug-eluting biomatrix technologies targeting the breast reconstruction market.

The company reported net sales of $3.1 million for the quarter ended March 31, 2026, compared to $3.0 million in the same period last year. SimpliDerm sales decreased to $2.1 million from $2.6 million, while cardiovascular product sales increased to $1.0 million from $0.3 million.

Elutia recorded a net loss of $7.5 million, or $0.17 per share, compared to a net loss of $3.9 million, or $0.10 per share, in the prior year period. The increased loss was primarily attributed to a $6.7 million unfavorable swing in other expense, which included a $1.7 million non-cash loss on warrant liability revaluation.

The company reported progress on its NXT-41 product, with FDA review of the 510(k) submission advancing through collaborative dialogue with the agency. Elutia anticipates clearance for NXT-41 in the fourth quarter of 2026, with clearance for NXT-41x expected in the first half of 2027.

Elutia implemented a new automated manufacturing process, including a robotic coating system for applying drug-eluting layers. The company expects this platform to support gross margins exceeding 80% at scale.

The company maintained $28.5 million in cash as of March 31, 2026, with an additional $8.0 million held in escrow from the BioEnvelope business divestiture, expected to be released in the fourth quarter of 2026.

Elutia is exploring strategic processes for its SimpliDerm product line and has received inquiries for its cardiovascular product line acquisition.