Company Performance - Artivion reported quarterly earnings of $0.24 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, and up from $0.07 per share a year ago, representing an earnings surprise of +118.18% [1] - The company posted revenues of $112.97 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.36%, compared to $98.02 million in the same quarter last year [2] - Over the last four quarters, Artivion has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Artivion shares have increased approximately 12.9% since the beginning of the year, outperforming the S&P 500's gain of 7.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $108.75 million, and for the current fiscal year, it is $0.48 on revenues of $429.25 million [7] Industry Outlook - The Medical - Instruments industry, to which Artivion belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Artivion's stock may be influenced by the overall outlook for the industry, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 were $113 million, representing a year-over-year increase of over 14% compared to 2024 [17] - Adjusted EBITDA grew approximately 33% from $18.6 million to $24.8 million in Q2 2025 [17] - Adjusted EBITDA margin improved to 21.9%, reflecting a 300 basis point increase from the prior year [18] - Gross margins were 64.7% in Q2 2025, slightly up from 64.6% in 2024 [19] Business Line Data and Key Metrics Changes - On X revenue increased by 24% year-over-year on a constant currency basis [5] - Stent graft revenues grew by 22% on a constant currency basis [6] - BioGlue revenue grew by 4% year-over-year [10] - Tissue processing revenues increased by 3% year-over-year [10] Market Data and Key Metrics Changes - Revenues in North America increased by 18%, Asia Pacific by 15%, EMEA by 10%, and Latin America by 7%, all compared to 2024 [18] Company Strategy and Development Direction - The company is focused on expanding its addressable market through ongoing product launches, particularly the AMDS following FDA approval [4][12] - The strategy includes leveraging cross-selling opportunities and enhancing the product portfolio to drive growth [6][26] - The company aims to deliver sustainable double-digit revenue growth and drive EBITDA margin expansion [15][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit revenue growth and expanding EBITDA margins, driven by strong product performance and market opportunities [15][26] - The company anticipates a full-year revenue growth rate of 12% to 14% for 2025, raising the midpoint of its guidance [22][23] - Management highlighted the positive reception of the AMDS launch and the potential for significant market opportunities [10][12] Other Important Information - The company successfully reduced its net leverage ratio from 4.1 to 2.2 by retiring convertible debt [21][22] - Free cash flow for Q2 2025 was $11.7 million, with expectations to remain positive for the full year [21][86] Q&A Session Summary Question: Update on AMDS and hospital adoption - Management noted that there are about 1,000 accounts capable of performing AMDS procedures, with ongoing training sessions leading to increased cross-selling opportunities [35][36] Question: BioGlue launch in China - Management indicated that BioGlue is expected to launch in the second half of 2025, with ongoing preparations [40] Question: Guidance dynamics and currency impact - Management explained that the guidance was adjusted due to strong Q2 performance and favorable currency movements, leading to an increase in revenue expectations [42][43] Question: Physician adoption of AMDS - Management reported positive feedback from physicians, noting that the device is simple to use and has been quickly integrated into practices [47][49] Question: Future expansion of the commercial team - Management stated that while they are evaluating expansion, the focus remains on the top 600 centers for the AMDS launch [54] Question: Next steps for Arecibo trial - Management confirmed that they expect to enroll the first patient in the Arecibo trial by the end of the year, pending hospital contracts and IRB approvals [57] Question: Pricing trends - Management indicated that there has been no significant price pressure, with modest inflationary price increases continuing [79] Question: Contribution of On X growth from cross-selling - Management acknowledged a meaningful uptick from new accounts, attributing growth to both cross-selling and new data [84]

Core Insights - Artivion reported strong Q2 2025 results, with non-GAAP earnings per share of $0.24, significantly exceeding analyst estimates of approximately -$0.00 and up from $0.07 in Q2 2024, indicating a 243% year-over-year increase [1][2] - Revenue for Q2 2025 reached $113.0 million, surpassing the consensus estimate of $108.03 million and reflecting a 15% increase compared to the previous year [1][2] - The company raised its full-year 2025 revenue and adjusted EBITDA guidance, demonstrating confidence in its business trajectory and pipeline development [1][11] Financial Performance - Non-GAAP adjusted EBITDA for Q2 2025 was $24.8 million, a 33% increase from $18.6 million in Q2 2024 [2][8] - Free cash flow (non-GAAP) surged to $11.7 million from $3.6 million in Q2 2024, marking a 224% increase [2][8] - Net income flipped to a positive $1.3 million from a loss of $2.1 million in the prior year [2][8] Business Overview - Artivion specializes in cardiac and vascular surgical devices, including mechanical heart valves, aortic stent grafts, surgical sealants, and preservation services for transplant tissues [3] - The company focuses on innovation, investing heavily in new product development, particularly in aortic repair and advanced heart valves [4] Product Performance - The On-X mechanical heart valve line grew 24% on a constant currency basis compared to Q2 2024, supported by clinical trial data showing reduced major bleeding risk [6] - Aortic stent grafts segment posted 22% constant currency growth, indicating strong demand for these products [6] - BioGlue, a surgical sealant, grew 4% year-over-year, while preservation services for transplant tissue recovered 3% year-over-year [7] Regional Growth - Latin America achieved constant currency revenue growth of 26%, and Asia Pacific saw 8% growth, despite supply constraints [7] - North America rebounded with 18% growth after declines in Q1 2025, indicating broad multi-regional expansion [7] Strategic Initiatives - The U.S. launch of the AMDS hybrid prosthesis is progressing, with approximately 150 hospital accounts seeking necessary approvals [10] - The company achieved Investigational Device Exemption (IDE) approval from the FDA for the ARTIZEN trial, targeting long-term growth in aortic arch replacement devices [10] Future Guidance - Full-year 2025 revenue is now expected to be in the range of $435 million to $443 million, up from earlier guidance of $423 million to $435 million [11] - Adjusted EBITDA guidance was raised to $86 million to $91 million, reflecting confidence in operational recovery and margin expansion [11] - Segment guidance indicates mid-teens percentage growth for stent grafts and continued double-digit gains for On-X heart valves [11]

Financial Performance - Revenue for Q2 2025 reached $113 million, a 14% year-over-year constant currency growth[9] - Adjusted EBITDA for Q2 2025 was $24.8 million, a 33% year-over-year growth[9] - The company raised FY25 revenue guidance to a range of $435 to $443 million, representing 12% to 14% year-over-year constant currency growth[12] - FY25 adjusted EBITDA is expected to be in the range of $86 to $91 million, growing 21% to 28% over FY24[12] - The company effectively retired convertible senior notes due July 1, 2025, reducing net debt leverage to 2.2x EBITDA[13] Product & Geographic Growth - On-X product revenue grew 24% year-over-year in constant currency[10] - Aortic stent grafts revenue increased by 22% year-over-year in constant currency[10] - North America revenue grew by 18%, EMEA by 10%, APAC by 15%, and Latin America by 7% in constant currency[17] Clinical Studies & Approvals - The company received IDE approval from the U S FDA to initiate the Arcevo LSA pivotal trial, planning to enroll 132 patients[11] - Initial U S AMDS launch shows positive momentum with sequential sales growth expected each quarter in 2025 and PMA approval expected mid-2026[11] - AMDS use significantly lowers 30-day Major Adverse Events (MAEs) compared to hemiarch control group[21]

Company Information [Contacts](index=1&type=section&id=Contacts) This section provides investor relations contact information for Artivion, Inc., including Lance A. Berry, Executive Vice President and CFO, and Brian Johnston and Laine Morgan of Gilmartin Group LLC - Investor contacts: Lance A. Berry (Artivion Executive Vice President and CFO) and Brian Johnston / Laine Morgan (Gilmartin Group LLC)[1](index=1&type=chunk) Second Quarter 2025 Financial Performance [Executive Summary & Key Achievements](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Achievements) Artivion demonstrated strong performance in Q2 2025 with **14% constant currency revenue growth** and **33% adjusted EBITDA growth**, advancing strategic initiatives and improving capital structure - The company achieved **14% constant currency revenue growth** and **33% adjusted EBITDA growth** in Q2 2025, demonstrating business scalability and EBITDA margin expansion[4](index=4&type=chunk) - Both On-X and stent graft product lines achieved **over 20% growth** at constant currency[5](index=5&type=chunk) - Received US FDA Investigational Device Exemption (IDE) approval to initiate the ARTIZEN pivotal trial, evaluating Arcevo LSA for treating acute and chronic aortic arch pathologies[5](index=5&type=chunk) - Successfully exited previously issued notes by converting **$99.5 million** of 2025 convertible senior notes due July 1 into common stock, significantly improving the capital structure[5](index=5&type=chunk)[6](index=6&type=chunk) 2025 Second Quarter Key Financial Metrics | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | YOY Growth (GAAP) | YOY Growth (Constant Currency) | | :------------------- | :--------------- | :--------------- | :--------------- | :------------------- | | Revenue | $113.0 | $98.0 | 15% | 14% | | Net Income | $1.3 | $(2.1) | - | - | | Diluted Net Income Per Share (USD) | $0.03 | $(0.05) | - | - | | Non-GAAP Net Income | $10.7 | $2.9 | - | - | | Non-GAAP Diluted Net Income Per Share (USD) | $0.24 | $0.07 | - | - | | Adjusted EBITDA | $24.8 | $18.6 | 33% | - | [Detailed Financial Results](index=5&type=section&id=Detailed%20Financial%20Results) Artivion achieved **$113 million** in total revenue for Q2 2025, a 15% year-over-year increase, with growth in product and preservation services revenue, a gross margin of **$73.1 million**, and a net profit of **$1.3 million** 2025 Second Quarter and First Half Consolidated Operating Results | Metric (Thousand USD) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------- | :--------------- | :--------------- | :----------- | :----------- | | Product Revenue | 87,444 | 73,210 | 166,242 | 144,324 | | Preservation Services Revenue | 25,528 | 24,809 | 45,708 | 51,126 | | **Total Revenue** | **112,972** | **98,019** | **211,950** | **195,450** | | Cost of Product Revenue | 28,315 | 24,545 | 53,578 | 48,295 | | Cost of Preservation Services Revenue | 11,545 | 10,150 | 21,683 | 20,885 | | **Total Cost of Revenue** | **39,860** | **34,695** | **75,261** | **69,180** | | **Gross Margin** | **73,112** | **63,324** | **136,689** | **126,270** | | Operating Expenses | 64,728 | 56,817 | 126,160 | 94,452 | | **Operating Income** | **8,384** | **6,507** | **10,529** | **31,818** | | Net Income (Loss) | 1,345 | (2,121) | 840 | 5,412 | | Diluted Net Income (Loss) Per Share (USD) | 0.03 | (0.05) | 0.02 | 0.13 | 2025 Financial Outlook [Updated Guidance](index=2&type=section&id=Updated%20Guidance) Artivion raised its full-year 2025 revenue and adjusted EBITDA guidance midpoints, reflecting strong Q2 performance and confidence in future growth, projecting **12% to 14%** constant currency revenue growth and **21% to 28%** adjusted EBITDA growth - The company raised the midpoints of its full-year 2025 revenue and adjusted EBITDA guidance, reflecting strong Q2 performance and greater confidence in the overall growth outlook[8](index=8&type=chunk)[9](index=9&type=chunk) 2025 Full-Year Financial Guidance | Metric | New Guidance (2025) | Old Guidance (2025) | Growth Rate (vs 2024) | | :------------------- | :--------------- | :--------------- | :------------------- | | Reported Revenue (Million USD) | $435 - $443 | $423 - $435 | - | | Constant Currency Revenue Growth | 12% - 14% | 11% - 14% | - | | Adjusted EBITDA (Million USD) | $86 - $91 | $84 - $91 | 21% - 28% | - Full-year 2025 foreign currency impact is expected to be approximately flat compared to 2024[8](index=8&type=chunk) Non-GAAP Financial Measures [Explanation of Non-GAAP Measures](index=2&type=section&id=Explanation%20of%20Non-GAAP%20Measures) This section explains Artivion's non-GAAP financial measures, which provide useful insights into operational performance by excluding non-recurring or non-cash items to better assess core business results - Non-GAAP financial measures include non-GAAP revenue, non-GAAP net income, EBITDA, adjusted EBITDA, non-GAAP general, administrative, and marketing expenses, and free cash flow[10](index=10&type=chunk) - The company uses non-GAAP measures for management review of operating performance and strategic planning, providing useful information on unusual non-operating transactions, operating expense structure, and excluding foreign currency fluctuations and non-cash compensation expenses[11](index=11&type=chunk) - Non-GAAP measures primarily exclude depreciation and amortization, interest income and expense, non-cash compensation expense, foreign currency revaluation gains and losses, income tax expense or benefit, business development, integration and severance expenses, debt inducement/extinguishment losses, non-cash interest expense, capital expenditures, and other non-recurring items[10](index=10&type=chunk) - The company does not provide a reconciliation of forward-looking adjusted EBITDA to comparable GAAP measures due to the inherent uncertainty and unpredictability of the impact and timing of these potential expenses or benefits[12](index=12&type=chunk) Corporate Information [Webcast and Conference Call Information](index=3&type=section&id=Webcast%20and%20Conference%20Call%20Information) Artivion will host a conference call and webcast on August 7, 2025, to discuss Q2 results, with replay information and access details provided - The company will host a conference call and webcast on **August 7, 2025, at 4:30 PM ET** to discuss results[13](index=13&type=chunk) - A replay of the conference call will be available approximately one hour after the event via phone or the investor section of the company's website[13](index=13&type=chunk)[14](index=14&type=chunk) [About Artivion, Inc.](index=3&type=section&id=About%20Artivion%2C%20Inc.) Artivion, Inc. is a medical device company based near Atlanta, focused on providing solutions for cardiac and vascular surgeons treating aortic diseases, with products sold in over 100 countries worldwide - Artivion, Inc. is a medical device company focused on developing solutions for the most challenging problems faced by cardiac and vascular surgeons in treating aortic diseases[15](index=15&type=chunk) - Key products include aortic stent grafts, surgical sealants, On-X mechanical heart valves, and implantable cardiac and vascular human tissues[15](index=15&type=chunk) - Artivion's products are sold in **over 100 countries** worldwide[15](index=15&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, reflecting management's expectations for future performance, which are subject to various risks and uncertainties that may cause actual results to differ materially - Forward-looking statements include expectations for revenue, year-over-year growth, profitability, foreign currency impact, capital requirements, competitive advantages, product portfolio, business strategy, and full-year 2025 revenue and adjusted EBITDA guidance[16](index=16&type=chunk) - These statements are subject to various risks, uncertainties, estimates, and assumptions that could cause actual results to differ materially from current expectations[16](index=16&type=chunk) - Key risks include the timing and outcome of regulatory decisions, international operational risks, anticipated benefits of clinical trials and regulatory approvals, potential unknown impacts of the 2024 cybersecurity incident, and benefits of market expansion in Asia Pacific and Latin America[16](index=16&type=chunk) - The company does not undertake to update its forward-looking statements[16](index=16&type=chunk) Financial Statements [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) Artivion reported **$113 million** in total revenue for Q2 2025, a 15% year-over-year increase, with a net profit of **$1.3 million** and diluted EPS of **$0.03**, and **$212 million** in total revenue for the first half with **$0.84 million** net profit Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Thousand USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--------------------------------- | :--------------- | :--------------- | :----------- | :----------- | | Total Revenue | 112,972 | 98,019 | 211,950 | 195,450 | | Gross Margin | 73,112 | 63,324 | 136,689 | 126,270 | | Operating Income | 8,384 | 6,507 | 10,529 | 31,818 | | Net Income (Loss) | 1,345 | (2,121) | 840 | 5,412 | | Diluted Net Income (Loss) Per Share (USD) | 0.03 | (0.05) | 0.02 | 0.13 | | Comprehensive Income (Loss) | 17,113 | (4,444) | 22,939 | 1,561 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Artivion's total assets increased to **$838 million**, total liabilities decreased to **$418 million**, and shareholders' equity significantly rose to **$419 million**, primarily due to increased additional paid-in capital Condensed Consolidated Balance Sheets (Thousand USD) | Metric | June 30, 2025 | December 31, 2024 | | :------------------- | :--------------- | :--------------- | | Cash and Cash Equivalents | 53,476 | 53,463 | | Accounts Receivable, Net | 91,440 | 79,462 | | Inventories | 86,723 | 79,766 | | **Total Current Assets** | **318,820** | **290,080** | | Goodwill | 253,802 | 240,958 | | **Total Assets** | **838,387** | **789,101** | | **Total Current Liabilities** | **66,670** | **66,823** | | Long-Term Debt, Net | 215,538 | 314,152 | | **Total Liabilities** | **418,485** | **512,901** | | Common Stock | 486 | 434 | | Additional Paid-in Capital | 497,318 | 376,607 | | **Total Stockholders' Equity** | **419,902** | **276,200** | [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In H1 2025, Artivion reported **$1.9 million** cash outflow from operating activities, **$6.9 million** outflow from investing activities, and **$6.5 million** inflow from financing activities, primarily from stock option exercises and common stock issuance Condensed Consolidated Statement of Cash Flows (Thousand USD) | Metric | H1 2025 | H1 2024 | | :----------------------- | :----------- | :----------- | | Net Cash Provided by (Used in) Operating Activities | (1,942) | 642 | | Net Cash Used in Investing Activities | (6,925) | (6,124) | | Net Cash Provided by Financing Activities | 6,535 | 556 | | Effect of Exchange Rate Changes | 2,345 | 1,005 | | Net Increase (Decrease) in Cash and Cash Equivalents | 13 | (3,921) | | Cash and Cash Equivalents at End of Period | 53,476 | 55,019 | Financial Highlights [Revenue Breakdown by Product and Geography](index=9&type=section&id=Revenue%20Breakdown%20by%20Product%20and%20Geography) In Q2 2025, Artivion's total revenue was **$113 million**, with strong performance from aortic stent grafts and On-X product lines, and North America as the largest revenue contributor 2025 Second Quarter and First Half Revenue Breakdown (Thousand USD) | Product Category | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------- | :--------------- | :--------------- | :----------- | :----------- | | Aortic Stent Grafts | 39,841 | 32,190 | 76,443 | 64,293 | | On-X | 25,572 | 20,645 | 47,146 | 40,326 | | Surgical Sealants | 19,288 | 18,545 | 37,394 | 35,526 | | Other Products | 2,743 | 1,830 | 5,259 | 4,179 | | **Total Product Revenue** | **87,444** | **73,210** | **166,242** | **144,324** | | Preservation Services | 25,528 | 24,809 | 45,708 | 51,126 | | **Total Revenue** | **112,972** | **98,019** | **211,950** | **195,450** | | Region | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------- | :--------------- | :--------------- | :----------- | :----------- | | North America | 57,569 | 48,662 | 105,362 | 99,590 | | Europe, Middle East, and Africa | 38,713 | 34,145 | 75,758 | 67,733 | | Asia Pacific | 11,131 | 9,653 | 19,345 | 17,262 | | Latin America | 5,559 | 5,559 | 11,485 | 10,865 | | **Total Revenue** | **112,972** | **98,019** | **211,950** | **195,450** | GAAP to Non-GAAP Reconciliations [Reconciliation of Revenues](index=10&type=section&id=Reconciliation%20of%20Revenues) This section reconciles GAAP revenue to non-GAAP constant currency revenue, illustrating the impact of exchange rate changes on product and regional revenues, with **14%** constant currency total revenue growth in Q2 2025 2025 Second Quarter Revenue Reconciliation (Thousand USD) | Product Category | GAAP Revenue (2025) | GAAP Revenue (2024) | FX Impact | Constant Currency Revenue (2024) | Constant Currency YOY Change | | :----------------- | :---------------- | :---------------- | :------- | :-------------------- | :----------------- | | Aortic Stent Grafts | 39,841 | 32,190 | 584 | 32,774 | 22% | | On-X | 25,572 | 20,645 | 41 | 20,686 | 24% | | Surgical Sealants | 19,288 | 18,545 | 61 | 18,606 | 4% | | Other Products | 2,743 | 1,830 | 4 | 1,834 | 50% | | **Total Product Revenue** | **87,444** | **73,210** | **690** | **73,900** | **18%** | | Preservation Services | 25,528 | 24,809 | (17) | 24,792 | 3% | | **Total Revenue** | **112,972** | **98,019** | **673** | **98,692** | **14%** | | Region | GAAP Revenue (2025) | GAAP Revenue (2024) | FX Impact | Constant Currency Revenue (2024) | Constant Currency YOY Change | | :----------------------- | :---------------- | :---------------- | :------- | :-------------------- | :----------------- | | North America | 57,569 | 48,662 | (46) | 48,616 | 18% | | Europe, Middle East, and Africa | 38,713 | 34,145 | 1,091 | 35,236 | 10% | | Asia Pacific | 11,131 | 9,653 | — | 9,653 | 15% | | Latin America | 5,559 | 5,559 | (372) | 5,187 | 7% | | **Total Revenue** | **112,972** | **98,019** | **673** | **98,692** | **14%** | 2025 First Half Revenue Reconciliation (Thousand USD) | Product Category | GAAP Revenue (2025) | GAAP Revenue (2024) | FX Impact | Constant Currency Revenue (2024) | Constant Currency YOY Change | | :----------------- | :---------------- | :---------------- | :------- | :-------------------- | :----------------- | | Aortic Stent Grafts | 76,443 | 64,293 | (724) | 63,569 | 20% | | On-X | 47,146 | 40,326 | (231) | 40,095 | 18% | | Surgical Sealants | 37,394 | 35,526 | (256) | 35,270 | 6% | | Other Products | 5,259 | 4,179 | — | 4,179 | 26% | | **Total Product Revenue** | **166,242** | **144,324** | **(1,211)** | **143,113** | **16%** | | Preservation Services | 45,708 | 51,126 | (84) | 51,042 | -10% | | **Total Revenue** | **211,950** | **195,450** | **(1,295)** | **194,155** | **9%** | | Region | GAAP Revenue (2025) | GAAP Revenue (2024) | FX Impact | Constant Currency Revenue (2024) | Constant Currency YOY Change | | :----------------------- | :---------------- | :---------------- | :------- | :-------------------- | :----------------- | | North America | 105,362 | 99,590 | (198) | 99,392 | 6% | | Europe, Middle East, and Africa | 75,758 | 67,733 | (119) | 67,614 | 12% | | Asia Pacific | 19,345 | 17,262 | — | 17,262 | 12% | | Latin America | 11,485 | 10,865 | (978) | 9,887 | 16% | | **Total Revenue** | **211,950** | **195,450** | **(1,295)** | **194,155** | **9%** | [Reconciliation of General, Administrative, and Marketing Expense, EBITDA, Adjusted EBITDA, and Free Cash Flows](index=11&type=section&id=Reconciliation%20of%20General%2C%20Administrative%2C%20and%20Marketing%20Expense%2C%20EBITDA%2C%20Adjusted%20EBITDA%2C%20and%20Free%20Cash%20Flows) This section reconciles GAAP to non-GAAP general, administrative, and marketing expenses, EBITDA, adjusted EBITDA, and free cash flow, with Q2 2025 adjusted EBITDA reaching **$24.8 million**, a **33%** year-over-year increase 2025 Second Quarter and First Half Expense, EBITDA, and Free Cash Flow Reconciliation (Thousand USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------------- | :--------------- | :--------------- | :----------- | :----------- | | GAAP General, Administrative, and Marketing Expenses | 57,665 | 49,320 | 112,369 | 80,009 | | Adjusted Non-GAAP General, Administrative, and Marketing Expenses | 53,372 | 47,287 | 106,410 | 95,363 | | GAAP Net Income (Loss) | 1,345 | (2,121) | 840 | 5,412 | | Non-GAAP EBITDA | 16,222 | 11,415 | 26,892 | 37,557 | | Non-GAAP Adjusted EBITDA | 24,764 | 18,643 | 42,312 | 35,955 | | Net Cash Provided by (Used in) Operating Activities (GAAP) | 15,011 | 6,135 | (1,942) | 642 | | Non-GAAP Free Cash Flow | 11,724 | 3,622 | (8,867) | (5,482) | - Adjustments to Adjusted EBITDA include non-cash compensation, business development, integration and severance expenses, cybersecurity incident-related expenses, debt inducement/extinguishment losses, and foreign currency revaluation gains and losses[29](index=29&type=chunk) [Reconciliation of Net Income and Diluted Income Per Common Share](index=12&type=section&id=Reconciliation%20of%20Net%20Income%20and%20Diluted%20Income%20Per%20Common%20Share) This section reconciles GAAP to non-GAAP net income and diluted EPS, with Q2 2025 non-GAAP adjusted net income at **$10.7 million** and non-GAAP diluted EPS at **$0.24**, significantly higher than GAAP figures 2025 Second Quarter and First Half Net Income and Diluted Income Per Common Share Reconciliation (Thousand USD, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--------------------------------------- | :--------------- | :--------------- | :----------- | :----------- | | GAAP Net Income (Loss) | 1,345 | (2,121) | 840 | 5,412 | | GAAP Diluted Net Income (Loss) Per Share (USD) | 0.03 | (0.05) | 0.02 | 0.13 | | Non-GAAP Adjusted Net Income | 10,732 | 2,913 | 13,226 | 5,545 | | Non-GAAP Adjusted Diluted Net Income Per Share (USD) | 0.24 | 0.07 | 0.30 | 0.13 | | GAAP Diluted Weighted Average Common Shares | 45,378 | 41,683 | 44,503 | 42,405 | | Non-GAAP Diluted Weighted Average Common Shares | 45,378 | 42,624 | 44,503 | 42,405 | - Non-GAAP adjustments include amortization expense, business development, integration and severance expenses, non-cash interest expense, cybersecurity incident-related expenses, and debt inducement/extinguishment losses, along with the tax impact of these adjustments[31](index=31&type=chunk)

Core Points - Artivion, Inc. experienced a data breach on or about November 20, 2024, involving unauthorized access to its network [3] - The breach potentially compromised sensitive personal data, including names, Social Security Numbers, driver's license numbers, and direct deposit details [3] - Edelson Lechtzin LLP is investigating the incident and considering a class action lawsuit for affected individuals [4] Company Overview - Artivion, Inc. is a global medical device company based in Kennesaw, Georgia, founded in 1984 and previously known as CryoLife [2] - The company specializes in manufacturing, processing, and distributing medical devices and implantable tissues for cardiac and vascular procedures [2]

Financial Performance and Guidance - Artivion reported approximately $400 million in revenue and around $70 million in EBITDA for FY24[4] - The company projects revenue between $423 million and $435 million for 2025, representing constant currency revenue growth of 11%-14% compared to 2024[3] - Artivion anticipates Adjusted EBITDA between $84 million and $91 million in 2025, a growth of 18-28% over 2024[3] - The company expects net debt leverage to decrease to below 20x by the end of 2025[3] Market Opportunities and Growth Strategy - Artivion is focused on driving sustained double-digit revenue growth and 2x+ EBITDA growth[3, 13] - The company estimates a total addressable market of approximately $4 billion for E-vita OPEN NEO, AMDS, NEXUS, E-nside, Artivex and E-tegra, with market growth rates between mid-single and mid-teen digits[3] - Mechanical Heart Valves (On-X) hold the 2 position with 34% market share in a $250 million global market[16] - Preservation Services (CryoValve® SG) holds the 1 position with 65% market share in a $150 million global market[16] - Surgical Sealant (BioGlue) holds the 2 position with 28% market share in a $260 million global market[16] Clinical Trial Data and Product Development - AMDS PERSEVERE US IDE study data demonstrates a significant reduction in Major Adverse Events (MAEs) at 30 days compared to the hemiarch control group (269% vs 580%)[38] - Endospan NEXUS ® TRIOMPHE US IDE Trial 30-day data demonstrates a 63% reduction in major adverse event (MAE) rate compared to the reference performance goal (130% vs 350%, p<0001)[41] - On-X Aortic Heart Valve Post Approval Study (PAS) shows a 66% reduction in major events and an 87% reduction in major bleeding compared to the PROACT IDE study[19]

Summary of Artivion (AORT) Conference Call Company Overview - **Company**: Artivion (AORT) - **Industry**: Medical Devices, specifically focused on aortic treatments Key Points and Arguments Market Potential and Growth Strategy - Artivion operates in multiple Total Addressable Markets (TAMs) that, while individually smaller, collectively provide a durable growth runway [2][4] - The company is focused on the aortic segment, particularly advanced stent grafts, with a global market for stents and stent grafts estimated at $4 billion, of which $2 billion is in advanced stent grafts [5][6] - Artivion's pipeline includes several products with upcoming PMA submissions, including AMDS, NexSys, and Arecibo, which are expected to contribute to growth every 18 months [9][10] Product Pipeline and Innovations - **AMDS**: Expected PMA approval by mid-2026, with a TAM of over $500 million [12][13] - **NexSys**: A pivotal trial with 60 patients showed promising results, with a focus on chronic dissections [32][33] - **Arecibo**: A product for total replacement of the aortic arch, with trials expected to start later this year [8] - The company has a unique patented technology for aortic dissection that significantly reduces mortality rates [15][16] Financial Performance and Projections - Artivion aims for EBITDA growth at twice the rate of top-line growth, driven by margin expansion and operational efficiencies [69][71] - The company has successfully reduced leverage and improved cash flow, with a focus on maintaining reasonable debt levels while funding growth initiatives [45][46] Sales and Market Penetration - The existing sales force is deemed adequate for launching new products, with no immediate plans for expansion [21][22] - The company is actively working with over 150 accounts to navigate hospital bureaucracy for product adoption [23][24] Risks and Challenges - The primary risk to growth acceleration is the timing of hospital bureaucracy related to product adoption [68] - The company experienced a cyber attack that impacted supply chains, but recovery is expected by the end of Q3 [63][66] Competitive Landscape - Artivion's On X mechanical valve has shown a 14% CAGR over the past eight years, with a TAM of $250 million [54] - Recent studies indicate a mortality benefit for mechanical valves, opening up additional market opportunities [58][61] Conclusion - Artivion is positioned for significant growth in the aortic medical device market, with a strong pipeline of innovative products and a focus on operational efficiency and margin expansion. The company is navigating challenges related to market entry and hospital adoption but remains optimistic about future performance.

Core Viewpoint - Artivion, Inc. has successfully closed transactions related to privately negotiated exchange agreements with holders of its 4.250% Convertible Senior Notes due 2025, significantly reducing its outstanding debt and enhancing its financial position [1][3]. Financial Transactions - The exchange agreements involved the conversion of approximately $99.54 million of Notes into 4,334,347 shares of common stock, along with a cash payment of approximately $1.7 million for accrued and unpaid interest [2]. - Following the transactions, only about $0.46 million in principal amount of the Notes remains outstanding [2]. Management Commentary - The CEO of Artivion highlighted that the retirement of the convertible notes is a significant milestone that reduces leverage ratios and enhances balance sheet flexibility [3]. Advisory Role - J. Wood Capital Advisors LLC served as the financial advisor to Artivion during these exchange transactions [4]. Company Overview - Artivion, Inc. is a medical device company focused on solutions for cardiac and vascular surgery, particularly in treating aortic diseases, with a product range that includes aortic stent grafts, surgical sealants, mechanical heart valves, and implantable tissues [7].

Core Viewpoint - Artivion, Inc. has entered into privately negotiated exchange agreements to repurchase approximately $95 million of its 4.250% Convertible Senior Notes due 2025 in exchange for shares of its common stock, with the transaction expected to close around May 28, 2025 [1] Group 1: Exchange Agreements - The company will repurchase approximately $95 million principal amount of Existing Convertible Notes in exchange for shares of common stock, with the number of shares to be determined based on the trading price over a four-day averaging period starting May 15, 2025 [1] - At the closing stock price of $28.91, the transaction would result in the issuance of approximately 4.1 million shares [1] - Cash will also be paid to note holders for accrued and unpaid interest as part of the exchange agreements [1] Group 2: Financial Advisory - J. Wood Capital Advisors LLC acted as the financial advisor to Artivion in connection with the exchange transactions [2] Group 3: Company Overview - Artivion, Inc. is a medical device company focused on developing solutions for cardiac and vascular surgeons, particularly in treating aortic diseases [5] - The company’s product groups include aortic stent grafts, surgical sealants, On-X mechanical heart valves, and implantable cardiac and vascular human tissues, marketed in over 100 countries [5]