Core Insights - LeMaitre Vascular, Inc. (NASDAQ: LMAT) has experienced a stock price increase of 12% since the last publication in June of the previous year, indicating positive growth in both capital and income accounts [1] Group 1 - The company focuses on fundamental value drivers of business economics to identify high probability long-term investment opportunities [1] - The research encompasses various financial market participants, including speculators, hedgers, long-term traders, and the public [1] - The company emphasizes the importance of buying at appropriate prices relative to intrinsic worth [1] Group 2 - The analyst has a beneficial long position in LMAT shares through stock ownership, options, or other derivatives [2] - The article reflects the analyst's personal opinions and is not influenced by compensation from any company mentioned [2] - There is no business relationship between the analyst and any company whose stock is discussed in the article [2]

Company Overview - LeMaitre Vascular, Inc. (NASDAQ:LMAT) is a medical device company focused on products for peripheral vascular disease, which affects over 200 million people globally [2] - The company develops and markets a range of disposable and implantable devices for vascular surgeons, including biologic and biosynthetic grafts, embolectomy and thrombectomy catheters, occlusion and perfusion catheters, and biologic patches for vessel and cardiac repair [2] Financial Performance - In Q2 2025, LeMaitre Vascular reported strong growth, particularly in international sales, with Artegraft sales more than doubling quarter-over-quarter outside the U.S. [3] - Analysts project revenue growth of 13-15%, driven by innovative vascular graft products and increasing international penetration [3] Market Position - The company targets niche vascular device markets valued under $200 million, allowing for steady product development with limited competition [4] - LeMaitre Vascular's surgical devices address critical clinical needs, such as bypassing or replacing diseased arteries and improving dialysis access, maintaining relevance in both clinical and commercial settings [4] Product Highlights - Key products include the Artegraft biologic graft and Valvulotomes, which support advanced vascular surgeries [2][5] - The accelerated adoption of biologic grafts like Artegraft, especially in international markets, highlights the company's momentum in advancing vascular surgery solutions [5]

Core Viewpoint - Growth investors are focused on stocks with above-average financial growth, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: Company Overview - LeMaitre Vascular (LMAT) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 13.7%, with projected EPS growth of 17.2% this year, surpassing the industry average of 11.4% [5] Group 2: Financial Metrics - LeMaitre's year-over-year cash flow growth is 35.1%, significantly higher than the industry average of 1.2% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 18.1%, compared to the industry average of 8% [7] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for LeMaitre, with the Zacks Consensus Estimate for the current year increasing by 5.6% over the past month [8] Group 4: Investment Potential - LeMaitre has earned a Growth Score of B and a Zacks Rank 2, indicating it is a potential outperformer and a solid choice for growth investors [10]

Part I. Financial Information [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for LeMaitre Vascular, Inc., covering key financial periods and detailed accounting notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's assets, liabilities, and equity at specific points in time | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | **Assets** | | | | | | Total current assets | $430,126 | $402,192 | $27,934 | 6.9% | | Total assets | $577,591 | $551,817 | $25,774 | 4.7% | | **Liabilities & Equity** | | | | | | Total current liabilities | $30,816 | $30,607 | $209 | 0.7% | | Convertible senior notes, net | $168,205 | $167,772 | $433 | 0.3% | | Total liabilities | $214,905 | $214,527 | $378 | 0.2% | | Total stockholders' equity | $362,686 | $337,290 | $25,396 | 7.5% | [Unaudited Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) This section details the company's revenues, expenses, and net income over specific reporting periods | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | % Change (YoY) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | % Change (YoY) | | :-------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------- | :------------------------------------------- | :------------------------------------------- | :------------- | | Net sales | $64,232 | $55,849 | 15.0% | $124,103 | $109,327 | 13.5% | | Gross profit | $44,974 | $38,468 | 16.9% | $86,394 | $75,133 | 15.0% | | Income from operations | $16,142 | $14,380 | 12.2% | $28,768 | $26,254 | 9.6% | | Net income | $13,779 | $11,826 | 16.5% | $24,790 | $21,713 | 14.2% | | Basic EPS | $0.61 | $0.53 | 15.1% | $1.10 | $0.97 | 13.4% | | Diluted EPS | $0.60 | $0.52 | 15.4% | $1.08 | $0.96 | 12.5% | | Cash dividends declared per common share | $0.20 | $0.16 | 25.0% | $0.40 | $0.32 | 25.0% | [Unaudited Consolidated Statements of Comprehensive Income](index=6&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents net income and other comprehensive income items, reflecting changes in equity from non-owner sources | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Net income | $13,779 | $11,826 | $24,790 | $21,713 | | Foreign currency translation adjustment, net | $2,011 | $451 | $2,839 | $(380) | | Unrealized gain (loss) on short-term marketable securities | $144 | $13 | $347 | $(89) | | Total other comprehensive income (loss) | $2,155 | $464 | $3,186 | $(469) | | Comprehensive income | $15,934 | $12,290 | $27,976 | $21,244 | [Unaudited Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section outlines changes in the company's equity accounts, including retained earnings and additional paid-in capital | Metric | Balance at Dec 31, 2024 (in thousands) | Balance at June 30, 2025 (in thousands) | Change (in thousands) | % Change | | :-------------------------- | :------------------------------------- | :------------------------------------ | :-------------------- | :------- | | Total Stockholders' Equity | $337,290 | $362,686 | $25,396 | 7.5% | | Retained Earnings | $145,090 | $160,843 | $15,753 | 10.9% | | Additional Paid-in Capital | $213,760 | $220,822 | $7,062 | 3.3% | - Net income for the six months ended June 30, 2025, contributed **$24.79 million** to retained earnings, while common stock dividends paid reduced retained earnings by **$9.037 million**[15](index=15&type=chunk)[16](index=16&type=chunk) [Unaudited Consolidated Statements of Cash Flows](index=9&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) This section reports on cash generated and used by operating, investing, and financing activities | Cash Flow Activity | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | Change (in thousands) | | :----------------------------- | :-------------------------------------------- | :-------------------------------------------- | :-------------------- | | Operating activities | $29,330 | $14,696 | $14,634 | | Investing activities | $(20,669) | $(13,364) | $(7,305) | | Financing activities | $(8,003) | $(2,831) | $(5,172) | | Net increase (decrease) in cash and cash equivalents | $1,567 | $(2,001) | $3,568 | | Cash and cash equivalents at end of period | $27,177 | $22,268 | $4,909 | - Net cash provided by operating activities significantly increased by **$14.6 million**, driven by higher net income and non-cash adjustments, despite a net use of working capital[131](index=131&type=chunk)[132](index=132&type=chunk) - Net cash used in investing activities increased by **$7.3 million**, primarily due to higher purchases of marketable securities[133](index=133&type=chunk)[134](index=134&type=chunk) - Net cash used in financing activities increased by **$5.2 million**, mainly due to higher dividend payments and deferred payments for acquisitions, partially offset by stock option exercises[135](index=135&type=chunk)[136](index=136&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the consolidated financial statements [Note 1. Nature of the Business and Basis of Presentation](index=10&type=section&id=Note%201.%20Nature%20of%20the%20Business%20and%20Basis%20of%20Presentation) This note describes the company's core business, product lines, and the foundational principles for financial statement preparation - LeMaitre Vascular, Inc. develops, manufactures, and markets medical devices and implants for vascular surgery, and processes/cryopreserves human tissues. Key product lines include anastomotic clips, various grafts and patches, carotid shunts, catheters, and valvulotomes[20](index=20&type=chunk) - The company operates in a single segment and has offices and production facilities across North America, Europe, and Asia[20](index=20&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=10&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the key accounting principles, methods, and estimates used in preparing the financial statements - The interim financial statements are unaudited and prepared in conformity with GAAP, with certain disclosures condensed or omitted per SEC rules. Management's estimates are used for items like credit losses, inventories, and income taxes[22](index=22&type=chunk)[23](index=23&type=chunk) - Fair value measurements are classified into Level 1, 2, or 3 hierarchy. The company's Convertible Senior Notes are a Level 2 measurement[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) - The company has not recognized any amounts related to the Employee Retention Credit (ERC) claim for 2021, as there is no reasonable assurance of receipt[29](index=29&type=chunk)[30](index=30&type=chunk) - ASU 2023-07 (Segment Reporting) was adopted retrospectively effective December 31, 2024, with no material impact on segment disclosures. ASU 2023-09 (Income Tax Disclosures) and ASU 2024-03 (Expense Disaggregation) are being evaluated for future impact[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) [Note 3. Inventory and Other Deferred Costs](index=14&type=section&id=Note%203.%20Inventory%20and%20Other%20Deferred%20Costs) This note details the composition and valuation of inventory and other deferred costs, including human tissue processing expenses | Inventory Component | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Raw materials | $21,721 | $19,109 | $2,612 | 13.7% | | Work-in-process | $2,251 | $2,157 | $94 | 4.4% | | Finished products | $33,488 | $34,676 | $(1,188) | -3.4% | | Other deferred costs | $10,925 | $8,985 | $1,940 | 21.6% | | Total inventory and other deferred costs | $68,385 | $64,927 | $3,458 | 5.3% | - Other deferred costs primarily relate to the RestoreFlow allograft business, accumulating costs for human tissue preservation and processing, which are not held as inventory due to federal law[36](index=36&type=chunk) [Note 4. Goodwill and Other Intangible Assets](index=14&type=section&id=Note%204.%20Goodwill%20and%20Other%20Intangible%20Assets) This note provides information on the company's goodwill and identifiable intangible assets, including their amortization - Goodwill remained unchanged during the six months ended June 30, 2025[37](index=37&type=chunk) | Intangible Asset Category | June 30, 2025 Net Carrying Value (in thousands) | December 31, 2024 Net Carrying Value (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :-------------------------------------------- | :------------------------------------------------ | :-------------------- | :------- | | Product technology and intellectual property | $9,511 | $10,840 | $(1,329) | -12.3% | | Trademarks, tradenames and licenses | $1,330 | $1,506 | $(176) | -11.7% | | Customer relationships | $22,232 | $23,462 | $(1,230) | -5.2% | | Other intangible assets | $79 | $11 | $68 | 618.2% | | Total identifiable intangible assets | $33,152 | $35,819 | $(2,667) | -7.4% | | Amortization Expense | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Amortization expense | $1,437 | $1,472 | $2,857 | $2,944 | - The weighted-average amortization period for intangibles as of June 30, 2025, is **8.6 years**. Estimated amortization expense for the remainder of 2025 is **$2.78 million**, and for 2026 is **$5.163 million**[37](index=37&type=chunk)[38](index=38&type=chunk) [Note 5. Accrued Expenses and Other Long-term Liabilities](index=15&type=section&id=Note%205.%20Accrued%20Expenses%20and%20Other%20Long-term%20Liabilities) This note details the breakdown of current accrued expenses and other non-current liabilities | Accrued Expense Component | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Compensation and related taxes | $12,176 | $15,117 | $(2,941) | -19.5% | | Accrued purchases | $4,525 | $4,463 | $62 | 1.4% | | Accrued expenses | $2,429 | $3,852 | $(1,423) | -36.9% | | Accrued interest | $2,300 | $86 | $2,214 | 2574.4% | | Income and other taxes | $1,094 | $639 | $455 | 71.2% | | Professional fees | $74 | $144 | $(70) | -48.6% | | Other | $380 | $431 | $(51) | -11.8% | | Total Accrued Expenses | $22,978 | $24,732 | $(1,754) | -7.1% | | Other Long-term Liabilities | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Income taxes | $623 | $572 | $51 | 8.9% | | Other | $311 | $259 | $52 | 20.1% | | Total Other Long-term Liabilities | $934 | $831 | $103 | 12.4% | [Note 6. Income Taxes](index=15&type=section&id=Note%206.%20Income%20Taxes) This note explains the components of income tax expense, effective tax rates, and unrecognized tax benefits - The company's income tax expense is influenced by estimates for current tax, deferred tax assets/liabilities, valuation allowances, and uncertain tax positions across multiple jurisdictions[40](index=40&type=chunk)[41](index=41&type=chunk) - The 2025 income tax expense deviates from the statutory rate due to federal and state tax credits, permanent items, varying foreign statutory rates, and discrete stock option exercises[42](index=42&type=chunk) | Unrecognized Tax Benefits | Six months ended June 30, 2025 (in thousands) | | :------------------------------------------ | :-------------------------------------------- | | Unrecognized tax benefits as of December 31, 2024 | $515 | | Additions/adjustments for tax positions of prior years | $22 | | Reductions for lapses of the applicable statutes of limitations | $(114) | | Unrecognized tax benefits as of June 30, 2025 | $423 | - The company remains subject to examination for U.S. tax years 2021 and forward, and foreign tax years 2016 and forward[43](index=43&type=chunk) [Note 7. Convertible Senior Notes](index=17&type=section&id=Note%207.%20Convertible%20Senior%20Notes) This note describes the terms, accounting treatment, and fair value of the company's convertible senior notes | Convertible Senior Notes | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | | :------------------------------------ | :----------------------------- | :------------------------------- | :-------------------- | | Principal amount | $172,500 | $172,500 | $0 | | Debt discount, net of accretion | $(4,295) | $(4,728) | $433 | | Convertible senior notes, net | $168,205 | $167,772 | $433 | - The company issued **$172.5 million** aggregate principal amount of 2.50% convertible senior notes due 2030 on December 19, 2024, with net proceeds of approximately **$167.7 million**[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) - The initial conversion rate was **8.3521 shares per $1,000 principal**, adjusted to **8.3602 shares** due to a quarterly cash dividend increase to **$0.20 per share** in May 2025[46](index=46&type=chunk) - Noteholders can convert under specific conditions, and the company can settle in cash, stock, or a combination. The notes are not redeemable before February 5, 2028[47](index=47&type=chunk)[48](index=48&type=chunk)[50](index=50&type=chunk) - Interest expense for the six months ended June 30, 2025, was **$2.2 million** for the cash coupon and **$0.4 million** for debt issuance cost amortization. The estimated fair value of the notes was **$172.7 million** as of June 30, 2025[51](index=51&type=chunk) [Note 8. Stock-Based Compensation](index=19&type=section&id=Note%208.%20Stock-Based%20Compensation) This note details the types and amounts of stock-based compensation expense recognized by the company | Stock-Based Compensation Type | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Stock option awards | $910 | $732 | $1,810 | $1,473 | | Restricted stock units | $634 | $573 | $1,320 | $1,134 | | Performance-based restricted stock units | $400 | $304 | $860 | $612 | | Total stock-based compensation | $1,944 | $1,609 | $3,990 | $3,219 | | Expense Category | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :----------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Cost of sales | $266 | $228 | $552 | $439 | | Sales and marketing | $349 | $274 | $725 | $545 | | General and administrative | $1,140 | $943 | $2,316 | $1,908 | | Research and development | $189 | $164 | $397 | $327 | | Total stock-based compensation | $1,944 | $1,609 | $3,990 | $3,219 | - The company granted **741 stock options**, **1,521 restricted stock units**, and **129 performance-based restricted stock units** during the six months ended June 30, 2025[53](index=53&type=chunk) [Note 9. Net Income per Share](index=20&type=section&id=Note%209.%20Net%20Income%20per%20Share) This note presents the calculation of basic and diluted net income per common share | EPS Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic EPS | $0.61 | $0.53 | $1.10 | $0.97 | | Diluted EPS | $0.60 | $0.52 | $1.08 | $0.96 | | Weighted average basic common shares outstanding (thousands) | 22,614 | 22,458 | 22,592 | 22,412 | | Weighted average dilutive common shares outstanding (thousands) | 22,892 | 22,725 | 22,896 | 22,657 | - The company excluded **1,610 thousand common shares** (primarily convertible senior notes) from diluted EPS computation for the six months ended June 30, 2025, as their inclusion would have been anti-dilutive[56](index=56&type=chunk) [Note 10. Stockholders' Equity](index=21&type=section&id=Note%2010.%20Stockholders'%20Equity) This note provides information on changes in stockholders' equity, including share repurchases and dividend declarations - On February 18, 2025, the Board authorized a repurchase program of up to **$75.0 million** of common stock until February 17, 2026; no repurchases have been made under this program to date[57](index=57&type=chunk) | Dividend Record Date | Payment Date | Per Share Amount | Dividend Payment (in thousands) | | :------------------- | :----------- | :--------------- | :------------------------------ | | **Fiscal Year 2025** | | | | | March 13, 2025 | March 27, 2025 | $0.20 | $4,517 | | May 15, 2025 | May 29, 2025 | $0.20 | $4,520 | | **Fiscal Year 2024** | | | | | March 14, 2024 | March 28, 2024 | $0.16 | $3,589 | | May 16, 2024 | May 30, 2024 | $0.16 | $3,593 | - On July 30, 2025, the Board approved a quarterly cash dividend of **$0.20 per share** payable on September 4, 2025[58](index=58&type=chunk) [Note 11. Commitments and Contingencies](index=22&type=section&id=Note%2011.%20Commitments%20and%20Contingencies) This note outlines the company's operating lease commitments and potential contingent liabilities - The company has operating leases for buildings (office, manufacturing, distribution) and equipment, with ROU assets and liabilities recognized based on present value of future lease payments[59](index=59&type=chunk) | Lease Metric | June 30, 2025 | June 30, 2024 | | :------------------------------------ | :------------ | :------------ | | Weighted average remaining lease term - operating leases (in years) | 6.9 | 7.8 | | Weighted average discount rate - operating leases | 6.62% | 6.60% | | Minimum Noncancelable Operating Lease Rental Commitments | Amount (in thousands) | | :------------------------------------------------------- | :-------------------- | | Remainder of 2025 | $2,035 | | Year ending December 31, 2026 | $3,612 | | Year ending December 31, 2027 | $3,030 | | Year ending December 31, 2028 | $2,759 | | Year ending December 31, 2029 | $2,695 | | Year ending December 31, 2030 | $2,186 | | Thereafter | $6,420 | | Adjustment to net present value as of June 30, 2025 | $(5,053) | | Minimum noncancelable lease liability | $17,684 | - In June 2025, the company executed a new building lease agreement in Billerica, Massachusetts, for U.S. distribution, commencing January 1, 2026, with a primary term through December 31, 2032[64](index=64&type=chunk) [Note 12. Segment and Geographic Information](index=24&type=section&id=Note%2012.%20Segment%20and%20Geographic%20Information) This note provides details on the company's single operating segment and net sales broken down by geographic region - The company operates as a single operating segment, with the CEO (CODM) evaluating performance and allocating resources based on net income and total consolidated assets[65](index=65&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk) | Net Sales by Geography | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :--------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | United States | $36,656 | $32,798 | $71,284 | $63,923 | | Germany | $4,458 | $3,509 | $8,435 | $7,027 | | Canada | $3,955 | $3,618 | $7,676 | $7,230 | | United Kingdom | $3,296 | $2,718 | $6,445 | $5,246 | | Other countries | $15,867 | $13,206 | $30,263 | $25,901 | | Total Net Sales | $64,232 | $55,849 | $124,103 | $109,327 | [Note 13. Subsequent Event](index=25&type=section&id=Note%2013.%20Subsequent%20Event) This note discloses significant events occurring after the balance sheet date, such as new legislation impacts - On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, impacting corporate tax provisions like bonus depreciation and R&E expensing. The company is evaluating its impact but does not expect a material effect on financial statements[70](index=70&type=chunk) - The OBBBA removed claims filed after January 31, 2024, for the Employee Retention Credit (ERC) for the period July 1, 2021, through September 30, 2021. The company had filed amended Forms 941-X in April 2025 for **$2.2 million** for this period[71](index=71&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides a detailed discussion and analysis of the company's financial condition, results of operations, and cash flows [Overview](index=26&type=section&id=Overview) This section provides a high-level summary of the company's business, strategic initiatives, and recent operational highlights - LeMaitre Vascular is a global provider of medical devices and human tissue cryopreservation services for peripheral vascular, end-stage renal, and cardiovascular diseases, with a diversified portfolio of brand-name products[73](index=73&type=chunk)[75](index=75&type=chunk) - The company's strategy includes a focused call point (vascular surgeons), competing for low-rivalry niche products, expanding its direct sales force, and acquiring complementary devices. Biologics represented **51% of worldwide sales** in Q2 2025[73](index=73&type=chunk)[76](index=76&type=chunk) - Recent regulatory approvals include Artegraft bovine graft in EU and Australia (April/June 2025) and Pruitt Aortic Occlusion Catheter in EU (May 2025). The company has **19 MDR CE marks** and UKCA approvals as of June 30, 2025, expecting **22 by year-end 2025**[82](index=82&type=chunk)[83](index=83&type=chunk) - The company ended its cardiovascular porcine patch distribution agreement with Elutia in 2025, which contributed **$1.8 million** in 2025 revenues[84](index=84&type=chunk) - The company is implementing a new Microsoft Dynamics D365 ERP system, with US transition in February 2024 and UK in February 2025, capitalizing **$4.9 million** in costs as of June 30, 2025[87](index=87&type=chunk) - The company is actively transitioning from distributors to direct sales in various countries, including Portugal (May 2025) and Czechia (Q3 2025), incurring distribution termination fees[89](index=89&type=chunk) [Net Sales and Expense Components](index=29&type=section&id=Net%20Sales%20and%20Expense%20Components) This section defines the key revenue and expense categories and their drivers within the company's financial statements - Net sales are derived from product and service sales, less discounts and returns, primarily through a direct sales force to hospitals or clinics. Revenue for consigned products is recognized upon surgical use[90](index=90&type=chunk) - Cost of sales includes manufacturing personnel, raw materials, depreciation, allocated overhead, and freight. Operating expenses comprise sales and marketing, general and administrative, and research and development, with specific cost drivers for each[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk) - Other income (expense) includes interest income/expense and foreign currency gains/losses. Income tax expense is affected by the mix of taxable income, tax credits, permanent items, and foreign statutory rates[95](index=95&type=chunk)[96](index=96&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, including net sales, gross profit, and operating expenses [Net Sales](index=29&type=section&id=Net%20Sales) This section analyzes the company's revenue performance, highlighting key drivers of sales growth | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | % Change (YoY) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | % Change (YoY) | | :------- | :-------------------------------------------- | :-------------------------------------------- | :------------- | :------------------------------------------- | :------------------------------------------- | :------------- | | Net sales | $64,232 | $55,849 | 15% | $124,103 | $109,327 | 14% | - The increase in net sales for both periods was primarily driven by higher average selling prices, increased unit volumes, and additional sales representatives. A weaker U.S. dollar also contributed to the increase[97](index=97&type=chunk)[99](index=99&type=chunk) - Direct-to-hospital net sales remained high, at **95%** for the three months ended June 30, 2025 and 2024, and **94%** and **95%** for the six months ended June 30, 2025 and 2024, respectively[98](index=98&type=chunk)[100](index=100&type=chunk) [Net Sales by Geography](index=31&type=section&id=Net%20Sales%20by%20Geography) This section breaks down the company's net sales performance across different geographic regions | Geography | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | % Change (YoY) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | % Change (YoY) | | :-------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------- | :------------------------------------------- | :------------------------------------------- | :------------- | | Americas | $41,321 | $36,907 | 12% | $80,279 | $72,152 | 11% | | Europe, Middle East and Africa (EMEA) | $18,840 | $15,298 | 23% | $35,799 | $29,693 | 21% | | Asia Pacific (APAC) | $4,071 | $3,644 | 12% | $8,025 | $7,482 | 7% | - Americas sales growth was primarily driven by grafts, catheters, and valvulotomes. EMEA saw strong growth from catheters, patches, shunts, and valvulotomes. APAC growth was mainly from grafts, patches, and valvulotomes[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk) [Gross Profit](index=31&type=section&id=Gross%20Profit) This section examines the company's gross profit and gross margin, analyzing factors influencing profitability | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | % Change (YoY) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | % Change (YoY) | | :----------- | :-------------------------------------------- | :-------------------------------------------- | :------------- | :------------------------------------------- | :------------------------------------------- | :------------- | | Gross profit | $44,974 | $38,468 | 17% | $86,394 | $75,133 | 15% | | Gross margin | 70.0% | 68.9% | 1.1% pts | 69.6% | 68.7% | 0.9% pts | - Gross profit increase was driven by higher sales, especially from grafts, catheters, and valvulotomes. Gross margin improved due to greater manufacturing efficiencies, sales price increases, and favorable product mix (e.g., decreased lower-margin porcine patches)[107](index=107&type=chunk)[108](index=108&type=chunk) [Operating Expenses](index=33&type=section&id=Operating%20Expenses) This section details the trends and drivers of the company's sales and marketing, general and administrative, and R&D expenses | Expense Category | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | % Change (YoY) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | % Change (YoY) | | :----------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------- | :------------------------------------------- | :------------------------------------------- | :------------- | | Sales and marketing | $14,895 | $10,984 | 36% | $29,107 | $22,670 | 28% | | General and administrative | $10,396 | $8,820 | 18% | $20,883 | $17,833 | 17% | | Research and development | $3,541 | $4,284 | -17% | $7,636 | $8,376 | -9% | | Total operating expenses | $28,832 | $24,088 | 20% | $57,626 | $48,879 | 18% | - Sales and marketing expenses increased significantly due to higher sales representative headcount, wage increases, and increased travel/training. R&D expenses decreased due to lower third-party service fees related to MDR activities[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) [Income Tax Expense](index=33&type=section&id=Income%20Tax%20Expense) This section analyzes the company's income tax provision and effective tax rate, including influencing factors | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :-------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Pre-tax income | $18,070 | $15,506 | $32,311 | $28,303 | | Tax provision | $4,291 | $3,680 | $7,521 | $6,590 | | Effective income tax rate | 23.7% | 23.7% | 23.3% | 23.3% | - The effective income tax rate for the three and six months ended June 30, 2025, was **23.7%** and **23.3%**, respectively, primarily influenced by federal/state tax credits, permanent items, foreign statutory rates, and discrete stock option exercises[117](index=117&type=chunk) - A valuation allowance of **$1.7 million** has been provided for deferred tax assets related to Australian net operating loss and capital loss carry forwards and Massachusetts tax credit carry forwards not expected to be realized[120](index=120&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's ability to meet its short-term and long-term financial obligations and funding sources [Convertible Senior Notes](index=35&type=section&id=Convertible%20Senior%20Notes%20(Liquidity)) This section details the company's convertible senior notes, their terms, and their impact on liquidity - The company issued **$172.5 million** in 2.50% convertible senior notes due 2030 on December 19, 2024, with net proceeds of approximately **$167.7 million**. Interest is payable semi-annually[123](index=123&type=chunk)[124](index=124&type=chunk) - The conversion rate was adjusted from **8.3521 to 8.3602 shares per $1,000 principal** due to an increase in quarterly cash dividends to **$0.20 per share** in May 2025[124](index=124&type=chunk) - Noteholders can convert under specific conditions, and the company can settle conversions in cash, shares, or a combination. The notes are not redeemable before February 5, 2028[125](index=125&type=chunk)[126](index=126&type=chunk) [Operating and Capital Expenditure Requirements](index=36&type=section&id=Operating%20and%20Capital%20Expenditure%20Requirements) This section outlines the company's expected funding needs for ongoing operations and capital investments - The company expects to fund operating expenses, capital expenditures, and Convertible Note payments for at least twelve months using existing cash, cash equivalents, investments, and anticipated future cash flows[128](index=128&type=chunk) - Future capital requirements depend on factors such as revenues, dividend payments, acquisition-related payments, tax payments, expansion costs, regulatory clearance costs, and potential share repurchases[130](index=130&type=chunk) [Cash Flows](index=37&type=section&id=Cash%20Flows) This section analyzes the company's cash generation and usage from operating, investing, and financing activities | Cash Flow Activity | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | Net Change (in thousands) | | :----------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------ | | Operating activities | $29,330 | $14,696 | $14,634 | | Investing activities | $(20,669) | $(13,364) | $(7,305) | | Financing activities | $(8,003) | $(2,831) | $(5,172) | | Net increase (decrease) in cash and cash equivalents | $1,567 | $(2,001) | $3,568 | - Net cash from operating activities increased by **$14.6 million**, driven by higher net income and non-cash adjustments, despite increased working capital use[131](index=131&type=chunk)[132](index=132&type=chunk) - Net cash used in investing activities increased by **$7.3 million**, primarily due to higher purchases of marketable securities[133](index=133&type=chunk)[134](index=134&type=chunk) - Net cash used in financing activities increased by **$5.2 million**, mainly due to higher dividend payments and deferred acquisition payments, partially offset by stock option exercises[135](index=135&type=chunk)[136](index=136&type=chunk) [Dividends](index=37&type=section&id=Dividends%20(Liquidity)) This section provides information on the company's dividend policy and recent dividend payments | Record Date | Payment Date | Per Share Amount | Dividend Payment (in thousands) | | :------------------- | :----------- | :--------------- | :------------------------------ | | **Fiscal Year 2025** | | | | | March 13, 2025 | March 27, 2025 | $0.20 | $4,517 | | May 15, 2025 | May 29, 2025 | $0.20 | $4,520 | | **Fiscal Year 2024** | | | | | March 14, 2024 | March 28, 2024 | $0.16 | $3,589 | | May 16, 2024 | May 30, 2024 | $0.16 | $3,593 | - The Board approved a quarterly cash dividend of **$0.20 per share** payable on September 4, 2025, continuing the policy of quarterly cash dividends approved in February 2011[137](index=137&type=chunk)[138](index=138&type=chunk) [Critical Accounting Policies and Significant Judgments and Estimates](index=38&type=section&id=Critical%20Accounting%20Policies%20and%20Significant%20Judgments%20and%20Estimates) This section highlights the accounting policies requiring significant management judgment and estimation - The preparation of consolidated financial statements requires management to make estimates, assumptions, and judgments that affect reported amounts. No material changes to critical accounting policies and estimates were reported from the 2024 Form 10-K[139](index=139&type=chunk)[140](index=140&type=chunk) [Recent Accounting Pronouncements](index=38&type=section&id=Recent%20Accounting%20Pronouncements) This section discusses the potential impact of newly issued accounting standards on the company's financial reporting - Information on recently issued accounting pronouncements that may impact financial position, results of operations, or cash flows is disclosed in Note 2 to the consolidated financial statements[141](index=141&type=chunk) [Item 3. Quantitative and Qualitative Disclosure about Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) The company is exposed to market risks from changes in interest rates and foreign currency exchange rates, which are managed through normal operating and financing activities - The company is exposed to market risks from changes in interest rates and foreign currency exchange rates, which are managed through normal operating and financing activities[142](index=142&type=chunk) - No material changes in foreign currency risk or interest rate risk were reported compared to the 2024 Form 10-K[142](index=142&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the evaluation of the company's disclosure controls and procedures and reports on changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=38&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section assesses the effectiveness of the company's controls designed to ensure timely and accurate financial disclosures - Management, including the CEO and CFO, evaluated the effectiveness of disclosure controls and procedures as of June 30, 2025, and concluded they were effective at a reasonable assurance level[143](index=143&type=chunk)[144](index=144&type=chunk) [Changes in Internal Control over Financial Reporting](index=38&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) This section reports on any material changes in the company's internal control over financial reporting during the period - The ongoing implementation of a new ERP system, which began in February 2024, is expected to result in changes to internal control over financial reporting as processes and procedures evolve[145](index=145&type=chunk) - Other than the ERP system implementation, there have been no material changes to internal control over financial reporting during the quarter ended June 30, 2025[146](index=146&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various lawsuits, claims, and investigations in the ordinary course of business, but management does not believe any currently pending matters would have a material adverse effect on its financial position, results of operations, or cash flows - The company is routinely involved in legal proceedings related to employment, product liability, commercial arrangements, and intellectual property[148](index=148&type=chunk) - Management believes no current legal matters will have a material adverse effect on the company's financial position, results of operations, or cash flows[148](index=148&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) This section supplements and updates the risk factors from the 2024 Form 10-K, highlighting potential negative impacts from adverse global economic conditions and the risks associated with product recalls or regulatory non-compliance - Adverse global economic conditions, including tariffs and trade tensions, could negatively impact demand for products, sales growth, and margins, though the U.S. domestic business is less likely to be affected by tariffs due to domestic manufacturing[150](index=150&type=chunk) - Products and services are subject to extensive regulation, and approvals could be withdrawn or suspended due to non-compliance or unforeseen problems, potentially leading to significant costs and adverse publicity from recalls[151](index=151&type=chunk)[152](index=152&type=chunk) - In April 2025, the company voluntarily notified regulatory bodies of an inadequate seal on certain catheter packaging, which may compromise sterility, but the financial impact is not expected to be material[152](index=152&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports on the company's equity security transactions, noting no recent unregistered sales and detailing common stock repurchases made to satisfy employee tax obligations related to equity awards - No unregistered sales of equity securities were reported[153](index=153&type=chunk) | Period | Number of Shares Purchased (1) | Average Price Paid Per Share | Maximum Dollar Value of Shares that may yet be Purchased under the Plans or Program (2) | | :------------------------------------ | :----------------------------- | :--------------------------- | :------------------------------------------------------------------------------------ | | April 1, 2025 through April 30, 2025 | 33 | $85.16 | $75,000,000 | | May 1, 2025 through May 31, 2025 | 19 | $80.26 | $75,000,000 | | June 1, 2025 through June 30, 2025 | - | - | $75,000,000 | | Total (for Q2 2025) | 52 | $83.37 | $75,000,000 | - The repurchased shares were used to satisfy employees' minimum statutory withholding taxes in connection with the vesting of restricted stock units and performance-based restricted stock units[154](index=154&type=chunk) - The Board authorized a **$75.0 million** common stock repurchase program on February 18, 2025, valid until February 17, 2026, but no repurchases have been made under this specific program to date[155](index=155&type=chunk) [Item 5. Other Information](index=40&type=section&id=Item%205.%20Other%20Information) This section details recent amendments to the company's By-laws, including updates to advance notice provisions for stockholder nominations, clarification on special meeting proposals, proxy card color requirements, and designation of exclusive forums for legal claims [Amendments to By-laws](index=40&type=section&id=Amendments%20to%20By-laws) This section describes recent changes to the company's By-laws, affecting corporate governance and stockholder rights - On August 4, 2025, the Board approved Second Amended and Restated By-laws, updating advance notice provisions for director nominations and other stockholder business, including compliance with Rule 14a-19 of the Exchange Act[157](index=157&type=chunk) - New By-laws clarify special meeting proposals, require non-white proxy cards for soliciting stockholders, and designate the Delaware Court of Chancery and U.S. federal district courts as exclusive forums for certain legal claims[157](index=157&type=chunk)[160](index=160&type=chunk) [Rule 10b5-1 and non-Rule 10b5-1 trading arrangements](index=41&type=section&id=Rule%2010b5-1%20and%20non-Rule%2010b5-1%20trading%20arrangements) This section reports on any Rule 10b5-1 or non-Rule 10b5-1 trading plans established by company insiders - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were reported[159](index=159&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including amendments to By-laws, certifications from the CEO and CFO, and Inline XBRL documents - Exhibits include amendments to the Second Amended and Restated By-laws (3.1, 3.2), CEO and CFO certifications (31.1, 31.2, 32.1, 32.2), and Inline XBRL documents (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[163](index=163&type=chunk) [Signatures](index=43&type=section&id=Signatures) The report is duly signed on behalf of LeMaitre Vascular, Inc. by its Chairman and Chief Executive Officer, George W. LeMaitre, and Chief Financial Officer, Dorian P. LeBlanc, on August 6, 2025 - The report was signed on August 6, 2025, by George W. LeMaitre (Chairman and CEO) and Dorian P. LeBlanc (CFO)[165](index=165&type=chunk)[166](index=166&type=chunk)

Core Insights - LeMaitre Vascular reported strong Q2 2025 earnings, with GAAP EPS of $0.60 exceeding expectations of $0.57 and revenue of $64.2 million surpassing forecasts of $62.48 million, marking a significant year-over-year increase from $55.8 million in Q2 2024 [1][5][15] - The company experienced a gross margin improvement to 70.0%, driven by higher average selling prices and improved manufacturing efficiencies, while EBITDA rose to $19.0 million, reflecting a 14% increase [2][7] Financial Performance - Q2 2025 GAAP EPS: $0.60, up 15.4% from $0.52 in Q2 2024 [2] - Q2 2025 GAAP Revenue: $64.2 million, a 15.1% increase from $55.8 million in Q2 2024 [2] - Gross Margin: 70.0%, up 1.1 percentage points from 68.9% in Q2 2024 [2] - Operating Income: $16.1 million, an 11.8% increase from $14.4 million in Q2 2024 [2] - EBITDA: $19.0 million, a 13.1% increase from $16.8 million in Q2 2024 [2] Market and Product Insights - LeMaitre Vascular specializes in medical devices for peripheral vascular disease, operating in a global market valued at over $5 billion, with a direct addressable opportunity of nearly $1 billion [3] - The company reported significant sales growth in key product categories, with catheter sales increasing by 27% and graft sales by 19% [5] - EMEA sales rose 23% year-over-year, totaling $18.8 million, while sales in the Americas increased by 12% to $41.3 million [6] Strategic Developments - The company is focusing on enhancing its direct sales force and expanding into niche product segments, with a strong emphasis on regulatory compliance and operational efficiency [4][11] - LeMaitre Vascular has secured 17 out of 23 necessary CE marks to meet evolving European requirements, with ongoing efforts to optimize inventory levels [11] - The company has a $75 million share buyback authorization and recently increased its quarterly dividend by 25% to $0.20 per share [8][12] Future Guidance - For Q3 2025, the company forecasts GAAP revenue between $61.2 million and $63.2 million, representing 13% organic growth from the same period in 2024 [13] - Full-year gross margin guidance is set at 69.7%, with operating income expected between $14.4 million and $15.8 million [13][14]

Core Viewpoint - LeMaitre Vascular reported quarterly earnings of $0.6 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, and showing an increase from $0.52 per share a year ago, indicating a positive earnings surprise of +5.26% [1][2] Financial Performance - The company achieved revenues of $64.23 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.53%, and up from $55.85 million in the same quarter last year [2] - Over the last four quarters, LeMaitre has exceeded consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - LeMaitre shares have declined approximately 8.4% since the beginning of the year, contrasting with the S&P 500's gain of 7.6% [3] - The current Zacks Rank for LeMaitre is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.55 on revenues of $61.2 million, while the estimate for the current fiscal year is $2.17 on revenues of $246.09 million [7] - The trend of estimate revisions for LeMaitre was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Medical - Products industry, to which LeMaitre belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

Financial Data and Key Metrics Changes - Q2 sales increased by 15%, with a gross margin of 70% and EPS up 16% [5][12] - Operating income for Q2 was $16.1 million, reflecting a 12% increase, resulting in an operating margin of 25% [12] - Net income rose by 17% year-over-year to $13.8 million, with fully diluted EPS at $0.60, up 16% [12][14] - Cash from operations reached a record $20.3 million in Q2, with total cash and securities at $319.5 million, an increase of $17 million in the quarter [12][14] Business Line Data and Key Metrics Changes - Sales from catheters increased by 27%, grafts by 19%, and both valvulotomes and shunts by 13% [5] - Organic revenue growth was 15%, driven by 8% price growth and 7% unit growth, particularly in ArteGraft, XenoSure, RestoreFlow, and catheters [9][11] - ArteGraft sales are projected to exceed $2 million for the full year 2025, with Q2 sales of $420,000, up from $185,000 in Q1 [6][34] Market Data and Key Metrics Changes - EMEA region grew by 23%, while the Americas and APAC regions both saw growth of 12% [5] - International autograft launch exceeded expectations, contributing significantly to sales growth [6][34] Company Strategy and Development Direction - The company is focusing on expanding its international presence, with plans for regulatory approvals in Canada, Korea, and Singapore by 2026 [6][8] - A new RestoreFlow distribution facility is being opened in Dublin to support European launches [7] - The company anticipates a full-year revenue of $251 million and 15% organic growth, driven by a growing sales organization and success in global markets [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the global business model despite evolving international trade landscapes, with only a 25% average price increase in China due to tariffs [13] - The company expects lower operating expenses in the second half of the year, contributing to improved operating margins [40][41] - Management raised full-year guidance for revenue, gross margin, operating income, and EPS, reflecting optimism for continued growth [14] Other Important Information - The company ended Q2 with 164 sales representatives and 33 sales managers, with ongoing efforts to expand direct sales in international markets [8] - A packaging-related recall impacted catheter sales temporarily, but stocking orders boosted overall sales in Q2 [10][18] Q&A Session Summary Question: Impact of stocking orders on Q2 results - Management estimated that stocking orders related to the catheter recall contributed approximately $800,000 to Q2 sales [18] Question: Sustainability of price growth - Management indicated that while price growth has been strong, future price increases will depend on market conditions and competitive dynamics [20] Question: Details on unit volume growth - Excluding the impact of the catheter recall, unit growth was around 5%, consistent with previous years [23][24] Question: Sales force expansion plans - The company aims to reach around 165 sales representatives by year-end, with a focus on maintaining a balanced sales force across regions [46][48] Question: International sales growth expectations - Management noted strong growth in Europe and a positive turnaround in the U.S., with expectations for continued growth in both regions [50][52] Question: Regulatory approvals and new product introductions - The company is awaiting approvals for several products in key international markets, including China and Canada, which are expected to drive future growth [105][106]

Executive Summary [Q2 2025 Performance Highlights](index=1&type=section&id=1.1%20Q2%202025%20Performance%20Highlights) LeMaitre Vascular achieved strong sales growth in Q2 2025, with improved gross margin due to higher average selling prices and manufacturing efficiencies, alongside double-digit growth in operating income and EPS Q2 2025 Key Financial Data | Metric | Amount | Growth Rate (YoY) | | :--- | :--- | :--- | | Sales | $64.2 million | +15% (+15% Organic Growth) | | Gross Margin | 70.0% | +110 basis points (vs. 68.9% in Q2 2024) | | Operating Income | $16.1 million | +12% | | Diluted EPS | $0.60 | +16% | | Cash | $319.5 million | +$16.9 million sequentially | - Catheters (**+27%**) and grafts (**+19%**) were the primary drivers of sales growth in the second quarter[4](index=4&type=chunk) - EMEA sales grew **23%**, Americas sales grew **12%**, and Asia-Pacific sales grew **12%**[4](index=4&type=chunk) [Business Outlook and Guidance](index=1&type=section&id=1.2%20Business%20Outlook%20and%20Guidance) LeMaitre Vascular raised its full-year 2025 revenue and profit guidance, reflecting confidence in sustained healthy sales and profit growth, particularly with the successful international launch of Artegraft Q3 and Full-Year 2025 Guidance (Midpoint) | Metric | Q3 2025 Guidance (Midpoint) | Full-Year 2025 Guidance (Midpoint) | | :----- | :--------------------- | :---------------------------- | | Sales | $62.2 million (+13%, +15% Organic) | $251 million (+14%, +15% Organic) | | Gross Margin | 69.7% | 69.7% | | Operating Income | $15.1 million (+14%) | $60.9 million (+17%) | | Operating Margin | 24% | 24% | | EPS | $0.57 (+16%) | $2.30 (+19%) | - Chairman and CEO George LeMaitre stated that 2025 is expected to be another year of healthy sales and profit growth, with Artegraft's international launch exceeding plans[5](index=5&type=chunk) [Shareholder Programs](index=1&type=section&id=1.3%20Shareholder%20Programs) The company announced a quarterly dividend and is executing a stock repurchase program authorized to buy back up to $75 million of common stock - The Board of Directors approved a quarterly dividend of **$0.20 per share** on July 30, 2025, payable on September 4, 2025, to shareholders of record on August 21, 2025[2](index=2&type=chunk)[6](index=6&type=chunk) - The company's Board of Directors authorized the repurchase of up to **$75 million** of the company's common stock on February 18, 2025, with the program ending on February 17, 2026, unless extended by the Board[7](index=7&type=chunk) Company Information [About LeMaitre Vascular, Inc.](index=2&type=section&id=2.1%20About%20LeMaitre%20Vascular,%20Inc.) LeMaitre Vascular is a medical device company focused on developing, manufacturing, and marketing disposable and implantable vascular devices for treating peripheral vascular disease, with vascular surgeons as its core customers - LeMaitre provides devices, implants, and services for treating peripheral vascular disease, which affects over **200 million people** globally[11](index=11&type=chunk) - The company develops, manufactures, and markets disposable and implantable vascular devices to meet the needs of its core customers, vascular surgeons[11](index=11&type=chunk) [Use of Non-GAAP Financial Measures](index=2&type=section&id=2.2%20Use%20of%20Non-GAAP%20Financial%20Measures) LeMaitre management uses Non-GAAP financial measures, such as "organic" sales growth (adjusted for foreign exchange, business development transactions, etc.), to supplement GAAP results, believing this more effectively assesses sales and profitability trends - Non-GAAP financial measures are used to supplement GAAP financial performance indicators for a better understanding of the company's short-term and long-term financial trends[13](index=13&type=chunk) - The company refers to Non-GAAP sales growth percentages, adjusted for the impact of foreign exchange rates, business development transactions, and/or other events, as "organic" growth[14](index=14&type=chunk) - A reconciliation of GAAP to Non-GAAP results is included in the financial statement schedules of this press release[10](index=10&type=chunk)[13](index=13&type=chunk) [Forward-Looking Statements](index=2&type=section&id=2.3%20Forward-Looking%20Statements) This press release contains forward-looking statements subject to various risks and uncertainties, including competition, acquisitions, pricing, supply chain, regulatory compliance, and litigation, which could cause actual results to differ materially from expectations - Statements in this press release that are not historical facts about the company's business may constitute "forward-looking statements" involving risks and uncertainties[15](index=15&type=chunk) - Risks include competition from other medical device companies and alternative medical technologies, ability to make acquisitions, maintaining historical profit growth levels, reliance on single or limited source suppliers, regulatory approval status, and litigation[15](index=15&type=chunk) - Forward-looking statements should not be unduly relied upon, and the company undertakes no obligation to publicly update any forward-looking statements[16](index=16&type=chunk) [Contact Information](index=3&type=section&id=2.4%20Contact%20Information) Investor Relations contact information is provided for inquiries - The Investor Relations contact is Gregory Manker, Director of Business Development and Investor Relations[17](index=17&type=chunk) Financial Statements [Condensed Consolidated Balance Sheets](index=4&type=section&id=3.1%20Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, LeMaitre Vascular's total assets increased, driven primarily by growth in marketable securities and accounts receivable, while total liabilities remained relatively stable Condensed Consolidated Balance Sheets (Amounts in thousands USD) | Asset/Liability/Equity | June 30, 2025 | December 31, 2024 | Change | | :--------------------- | :------------ | :---------------- | :----- | | Total Current Assets | $430,126 | $402,192 | +$27,934 | | Total Assets | $577,591 | $551,817 | +$25,774 | | Total Current Liabilities | $30,816 | $30,607 | +$209 | | Total Liabilities | $214,905 | $214,527 | +$378 | | Total Stockholders' Equity | $362,686 | $337,290 | +$25,396 | - Cash and cash equivalents increased from **$25,610 thousand** to **$27,177 thousand**[18](index=18&type=chunk) - Short-term marketable securities increased from **$274,112 thousand** to **$292,311 thousand**[18](index=18&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=3.2%20Condensed%20Consolidated%20Statement%20of%20Operations) In Q2 2025, LeMaitre Vascular's net sales, gross profit, and net income all saw significant growth compared to Q2 2024, with diluted EPS increasing by 15.4%, and year-to-date performance also showing strength Condensed Consolidated Statements of Operations (Amounts in thousands USD, except per share amounts) | Metric | Q2 2025 | Q2 2024 | YoY Change (Q2) | YTD 2025 | YTD 2024 | YoY Change (YTD) | | :--------------------- | :------ | :------ | :-------------- | :------- | :------- | :--------------- | | Net Sales | $64,232 | $55,849 | +15.0% | $124,103 | $109,327 | +13.5% | | Gross Profit | $44,974 | $38,468 | +16.9% | $86,394 | $75,133 | +15.0% | | Operating Income | $16,142 | $14,380 | +12.2% | $28,768 | $26,254 | +9.6% | | Net Income | $13,779 | $11,826 | +16.5% | $24,790 | $21,713 | +14.2% | | Diluted Earnings Per Share | $0.60 | $0.52 | +15.4% | $1.08 | $0.96 | +12.5% | | Cash Dividends Per Common Share | $0.20 | $0.16 | +25.0% | $0.40 | $0.32 | +25.0% | - Selling and marketing expenses in Q2 2025 significantly increased by **35.6%** from **$10,984 thousand** to **$14,895 thousand** compared to Q2 2024[19](index=19&type=chunk) - Research and development expenses in Q2 2025 decreased by **17.3%** from **$4,284 thousand** to **$3,541 thousand** compared to Q2 2024[19](index=19&type=chunk) [Selected Net Sales Information](index=6&type=section&id=3.3%20Selected%20Net%20Sales%20Information) All geographic regions contributed to net sales growth in Q2 2025 and year-to-date, with the EMEA region showing the highest percentage growth in the second quarter Net Sales by Geographic Region (Amounts in thousands USD) | Geographic Region | Q2 2025 Sales | Q2 2024 Sales | Q2 YoY Growth Rate | YTD 2025 Sales | YTD 2024 Sales | YTD YoY Growth Rate | | :-------- | :------------ | :------------ | :------------ | :------------- | :------------- | :------------- | | Americas | $41,321 | $36,907 | +12.0% | $80,279 | $72,152 | +11.3% | | Europe, Middle East and Africa (EMEA) | $18,840 | $15,298 | +23.1% | $35,799 | $29,693 | +20.6% | | Asia-Pacific | $4,071 | $3,644 | +11.7% | $8,025 | $7,482 | +7.3% | | Total Net Sales | $64,232 | $55,849 | +15.0% | $124,103 | $109,327 | +13.5% | - The Americas remains the largest market, accounting for **64%** of net sales in Q2 2025[20](index=20&type=chunk) Non-GAAP Reconciliations [EBITDA Reconciliation](index=7&type=section&id=4.1%20EBITDA%20Reconciliation) LeMaitre Vascular's EBITDA grew 14% in Q2 2025 and 11% year-to-date, reflecting improved operating profitability before interest, taxes, depreciation, and amortization EBITDA Reconciliation (Amounts in thousands USD) | Metric | Q2 2025 | Q2 2024 | YoY Change (Q2) | YTD 2025 | YTD 2024 | YoY Change (YTD) | | :--------------------- | :------ | :------ | :-------------- | :------- | :------- | :--------------- | | Reported Net Income | $13,779 | $11,826 | +16.5% | $24,790 | $21,713 | +14.2% | | EBITDA | $19,037 | $16,753 | +13.6% | $34,217 | $30,931 | +10.6% | - Net interest (income) expense changed from **$(1,137) thousand** in Q2 2024 to **$(1,681) thousand** in Q2 2025[21](index=21&type=chunk) [Non-GAAP Sales Growth Reconciliation](index=8&type=section&id=4.2%20Non-GAAP%20Sales%20Growth%20Reconciliation) Adjusted net sales, excluding the impact of divestitures and foreign exchange fluctuations, showed a 15% increase in Q2 2025, with Q3 and full-year 2025 also projected to grow by 15%, indicating strong organic growth Non-GAAP Sales Growth Reconciliation (Amounts in thousands USD) | Metric | Q2 2025 | Q2 2024 | Adjusted Net Sales Growth (Q2) | | :------------------------------------ | :------ | :------ | :------------------------------- | | Reported Net Sales | $64,232 | $55,849 | | | Adjusted Net Sales | $63,146 | $54,889 | $8,257 (+15%) | Projected Non-GAAP Sales Growth Reconciliation (Amounts in thousands USD) | Metric | Q3 2025 (Midpoint) | Q3 2024 (Reported) | Adjusted Projected Net Sales Growth (Q3) | | :------------------------------------ | :----------------- | :----------------- | :----------------------------------------- | | Guidance Net Sales (Midpoint) | $62,200 | $54,819 | | | Adjusted Projected Net Sales | $61,383 | $53,503 | $7,880 (+15%) | | **Full-Year 2025 (Midpoint)** | **Full-Year 2024 (Reported)** | **Adjusted Projected Net Sales Growth (FY)** | | | Guidance Net Sales (Midpoint) | $250,503 | $219,863 | | | Adjusted Projected Net Sales | $248,142 | $216,598 | $31,544 (+15%) | - Foreign exchange fluctuations had a negative impact of **$1,039 thousand** on net sales in Q2 2025[22](index=22&type=chunk)

Core Insights - LeMaitre Vascular, Inc. reported strong Q2 2025 results, with significant sales growth driven by catheters and grafts, and announced a quarterly dividend of $0.20 per share [1][3][6] Financial Performance - Q2 2025 sales reached $64.2 million, a 15% increase compared to Q2 2024, with organic growth also at 15% [3][10] - Gross margin improved to 70.0%, up from 68.9% in Q2 2024, attributed to higher average selling prices and manufacturing efficiencies [3][10] - Operating income for Q2 was $16.1 million, reflecting a 12% increase year-over-year [3][10] - Earnings per share (EPS) rose 16% to $0.60 per fully diluted share [3][10] Sales Growth Drivers - Sales growth was primarily driven by a 27% increase in catheter sales and a 19% increase in graft sales [3] - Regional sales performance included a 23% increase in EMEA, and 12% growth in both Americas and APAC [3] Guidance and Outlook - The company raised its guidance for Q3 2025, projecting sales between $61.2 million and $63.2 million, and for the full year 2025, sales are expected to be between $248 million and $254 million [4] - Gross margin and operating margin are expected to remain stable at 69.7% and 24% respectively for both Q3 and full year guidance [4] Dividend and Share Repurchase - The Board of Directors approved a quarterly dividend of $0.20 per share, payable on September 4, 2025 [6] - A share repurchase program was authorized for up to $75 million, set to conclude on February 17, 2026, unless extended [7] Cash Position - The company reported a sequential increase in cash of $16.9 million, bringing total cash to $319.5 million [10]

Core Insights - The article compares two medical product stocks, Phibro Animal Health (PAHC) and LeMaitre Vascular (LMAT), to determine which offers better value for investors [1] Valuation Metrics - PAHC has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while LMAT has a Zacks Rank of 3 (Hold) [3] - PAHC's forward P/E ratio is 11.38, significantly lower than LMAT's forward P/E of 37.42 [5] - PAHC has a PEG ratio of 0.44, compared to LMAT's PEG ratio of 2.14, suggesting PAHC is more favorably valued in terms of expected earnings growth [5] - PAHC's P/B ratio is 3.98, while LMAT's P/B ratio is 5.27, further indicating that PAHC is undervalued relative to its book value [6] - Overall, PAHC earns a Value grade of A, while LMAT receives a Value grade of D, highlighting the superior valuation metrics of PAHC [6] Conclusion - Given the stronger estimate revision activity and more attractive valuation metrics, PAHC is positioned as the superior investment option for value investors at this time [7]