Covalon Reports on 2026 First Quarter Results and Recent Achievements and Highlights
Executive Summary
- Covalon Technologies reported fiscal 2026 first‑quarter revenue of $6.89 M, a modest decline from the prior year but achieved a breakeven net income of $125 K and positive Adjusted EBITDA of $427 K.
- The company ended the quarter with approximately $17.9 M cash and no debt, after paying a $4.1 M special dividend.
- Operational highlights include adding >12 new customers, securing system‑wide approval for its VALGuard® line guard at a 300‑site IDN, and winning an innovative‑technology contract with Hartmann USA through Vizient.
Key Details
- Financial Results (Three months ended Dec 31, 2025 vs. 2024)
- Revenue: $6,888,302 vs. $8,077,940
- Gross profit: $4,008,231 vs. $4,994,466 (Gross margin 58.2% vs. 61.2%)
- Operating expenses: $3,955,987 vs. $3,679,798
- Net income: $125,377 (vs. $1,422,103) – breakeven level
- Adjusted EBITDA: $426,829 (vs. $1,547,671)
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Diluted EPS: $0.00 vs. $0.04
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Cash Position – Approximately $17.9 M on Dec 31, 2025, up >$0.5 M from quarter start after a $4.1 M special dividend distribution.
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Customer & Market Wins
- Added >12 new customers from leading medical centers for vascular access, surgical consumables, and advanced wound‑care collagen dressings.
- Secured system‑wide approval of VALGuard® Vascular Access Line Guard at a large Integrated Delivery Network (300+ sites, including 15 acute‑care/pediatric hospitals) in the southeastern U.S.
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Hartmann USA awarded an Innovative Technology contract by Vizient (largest U.S. GPO), bundling Covalon’s ColActive® Plus collagen matrix dressing with Hartmann’s Zetuvit® Plus line.
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Clinical & Thought‑Leadership Highlights
- Peer‑reviewed study in the Journal of the Association for Vascular Access (JAVA) showed significant reduction—and a sustained period of zero—central line–associated bloodstream infections (CLABSIs) in a pediatric critical care unit.
- Ongoing partnership with Dr. Nancy Moureau, leading vascular‑access expert; recent Continuing Education webinar reached hundreds of healthcare professionals.
- Dr. Moureau scheduled to present at the Infusion Nurses Society Annual Meeting (April 2026) and APIC Annual Conference (June 2026).
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Poster by Dr. Traci Kimball on Covalon’s collagen matrix dressing accepted for SAWC Spring Symposium (April 2026).
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Conference Call – Management discussed Q1 results on Wednesday, February 25, 2026 at 8:30 a.m. ET; call details provided in release.
Notable Quotes
“Covalon’s first quarter of fiscal 2026 delivered results just above a breakeven… sales and orders received in the first half of the second quarter have already exceeded the total revenue reported for Q1… we are confident that we will remain on track for a strong Q2 and a strong fiscal 2026 overall.” – Brent Ashton, CEO
“Our strong balance sheet, with more than $17 M in cash and no debt, positions us well to capitalize on the growing interest from large and emerging partners.” – Brent Ashton, CEO