Q2 2025 Performance Overview [Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) The company reported strong Q2 2025 results with 20% revenue growth, significant margin expansion, and a 112% surge in adjusted EBITDA Financial Highlights | Metric | Q2 2025 | Growth vs. Q2 2024 | | :--- | :--- | :--- | | **Total Net Revenue** | $63.2 million | +20% | | **MACI Net Revenue** | $53.5 million | +21% | | **Burn Care Net Revenue** | $9.8 million | - | | - Epicel Revenue | $8.6 million | - | | - NexoBrid Revenue | $1.2 million | - | | **Gross Margin** | 74% | +400 bps | | **Net Loss** | ($0.6) million | Improved from ($4.7) million | | **Adjusted EBITDA** | $13.4 million | +112% | | **Adjusted EBITDA Margin** | 21% | +900 bps | - The company ended the quarter with a strong balance sheet, holding approximately **$164 million in cash and investments with no debt**[3](index=3&type=chunk)[12](index=12&type=chunk) - Operating cash flow for the second quarter was **$8.2 million**[3](index=3&type=chunk) [Business Highlights and Updates](index=2&type=section&id=Business%20Highlights%20and%20Updates) The company achieved key operational milestones, including FDA clearance for a new study and strong adoption across its product lines - Received **FDA Investigational New Drug (IND) clearance** for the MACI Ankle™ clinical study, which is on track to begin in the second half of 2025[2](index=2&type=chunk)[8](index=8&type=chunk) - Approximately **600 MACI Arthro™ surgeons have been trained** to date, indicating strong adoption[2](index=2&type=chunk)[8](index=8&type=chunk) - The company recorded the **second-highest number of MACI biopsies** in a quarter since launch and the highest number of Epicel biopsies since 2023[8](index=8&type=chunk) - NexoBrid revenue **increased 52% versus the prior year**, and June saw the highest number of hospital unit orders since launch[8](index=8&type=chunk) [2025 Financial Guidance](index=2&type=section&id=2025%20Financial%20Guidance) The company reaffirmed its full-year 2025 revenue growth and profitability targets while updating its Burn Care revenue guidance Full Year 2025 Outlook | Guidance Metric | Full Year 2025 Outlook | | :--- | :--- | | **MACI Revenue Growth** | Reaffirmed in the low 20% range | | **Burn Care Revenue (H2 2025)** | Updated to approx. $10 million per quarter | | **Gross Margin** | Reaffirmed at 74% | | **Adjusted EBITDA Margin** | Reaffirmed at 26% | Detailed Financial Statements [Consolidated Statements of Operations](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The company's Q2 2025 revenue grew to $63.2 million, driving a significant reduction in net loss despite higher operating expenses Condensed Consolidated Statements of Operations | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Total revenue** | $63,240 | $52,662 | | **Gross profit** | $46,613 | $36,601 | | **Total operating expenses** | $48,642 | $42,632 | | **Loss from operations** | ($2,029) | ($6,031) | | **Net loss** | ($553) | ($4,682) | | **Net loss per share** | ($0.01) | ($0.10) | - The increase in operating expenses was primarily driven by increased headcount, related employee expenses, and costs associated with the new Burlington facility, including depreciation and MACI tech transfer activities[10](index=10&type=chunk) [GAAP vs. Non-GAAP Reconciliation](index=7&type=section&id=RECONCILIATION%20OF%20REPORTED%20NET%20LOSS%20(GAAP)%20TO%20ADJUSTED%20EBITDA%20(NON-GAAP%20MEASURE)) Non-GAAP adjusted EBITDA increased to $13.4 million, with key adjustments including stock-based compensation and depreciation Reconciliation of Reported Net Loss (GAAP) to Adjusted EBITDA (Non-GAAP) | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net loss (GAAP)** | ($553) | ($4,682) | | Stock-based compensation | $10,140 | $9,520 | | Depreciation and amortization | $2,826 | $1,323 | | Pre-occupancy lease & tech transfer | $2,446 | $1,509 | | **Adjusted EBITDA (Non-GAAP)** | **$13,359** | **$6,313** | [Condensed Consolidated Balance Sheets](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) The company maintained a strong balance sheet with $435.6 million in total assets and a robust liquidity position Condensed Consolidated Balance Sheets | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash, cash equivalents & investments** | $164,281 | $156,093 | | **Total current assets** | $204,577 | $212,777 | | **Total assets** | $435,608 | $432,722 | | **Total current liabilities** | $41,132 | $50,286 | | **Total liabilities** | $128,799 | $140,755 | | **Total shareholders' equity** | $306,809 | $291,967 | Other Information [About Vericel Corporation](index=3&type=section&id=About%20Vericel%20Corporation) The company provides advanced therapies for sports medicine and severe burn care, with three key products marketed in the U.S - Vericel is a leading provider of advanced therapies for the sports medicine and severe burn care markets[15](index=15&type=chunk) - The company markets three products in the United States: **MACI®** (for knee cartilage defects), **Epicel®** (for severe burns), and **NexoBrid®** (for eschar removal in thermal burns)[15](index=15&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section outlines potential risks and uncertainties that could cause actual results to differ from forward-looking statements - The company identifies several risk factors that could cause actual results to differ from forward-looking statements[18](index=18&type=chunk) - Key risks include uncertainties in future revenue, market penetration for products like MACI and NexoBrid, ability to scale manufacturing (including the new Burlington facility), and potential supply chain disruptions[19](index=19&type=chunk)[20](index=20&type=chunk)

Financial Performance - Total net revenue for Q2 2025 increased by 20% to $63.2 million compared to $52.7 million in Q2 2024 [7][9] - MACI net revenue grew by 21% to $53.5 million, while Burn Care net revenue was $9.8 million, consisting of $8.6 million from Epicel and $1.2 million from NexoBrid [7][9] - Gross margin improved by over 400 basis points to 74% from 70% in the prior year [10][7] - Adjusted EBITDA rose by 112% to $13.4 million, with an adjusted EBITDA margin increase of over 900 basis points to 21% [2][12] Business Highlights - Approximately 600 MACI Arthro surgeons have been trained to date [2] - The company received FDA IND clearance for the Phase 3 MACI Ankle clinical study, expected to initiate in the second half of 2025 [7][9] - The second quarter saw the second highest number of MACI biopsies since launch, with a more than 40% increase in MACI implants for small femoral condyle defects compared to the previous year [7][9] - Epicel biopsies reached the highest number in a quarter since 2023, representing a 38% growth year-over-year [7] Financial Guidance - The company reaffirmed MACI full-year revenue growth in the low 20% range and updated Burn Care revenue guidance for the second half of 2025 to approximately $10 million per quarter [8] - Full-year profitability guidance includes a gross margin of 74% and an adjusted EBITDA margin of 26% [8]

Company Overview - Vericel Corporation is a leader in advanced therapies for the sports medicine and severe burn care markets, combining innovations in biology with medical technologies to create a differentiated portfolio of cell therapies and specialty biologics [3] Upcoming Financial Results - Vericel will report its second-quarter 2025 financial results on July 31, 2025, with a conference call and webcast scheduled for 8:30 a.m. ET [1] - The live webcast can be accessed through the Investor Relations section of the Vericel website, and a replay will be available until July 31, 2026 [2] Product Portfolio - Vericel markets three main products in the United States: - MACI: An autologous cellularized scaffold product for repairing full-thickness cartilage defects in the knee [3] - Epicel: A permanent skin replacement for treating deep dermal or full-thickness burns covering 30% or more of total body surface area [3] - NexoBrid: A biological orphan product for eschar removal in burn patients, for which Vericel holds exclusive North American rights [3]

Company Overview and Financial Performance - Vericel is a leader in advanced therapies in sports medicine and burn care, combining innovations in biology with medical technologies[5] - The company has a strong financial profile with ~$162 million in cash and investments[9] - Vericel achieved GAAP Net Income positive in 2024[9] - The company is driving high revenue growth and targets high-70% gross margin and high-30% adjusted EBITDA in the mid-term[17] - The company experienced 20% top-line growth in 2024 and expects continued high revenue growth in 2025 and beyond[18] Market Opportunity and Product Expansion - The total addressable market (TAM) opportunity is expanding to over $5 billion in the years ahead[10] - The core TAM is ~$4 billion, with an expanded TAM of ~$5 billion[11, 12] - MACI Arthro, launched in Q3 2024, targets the largest segment of the current MACI addressable market[9] - MACI Ankle study is anticipated to initiate in 2025, potentially increasing the total MACI addressable market to $4 billion[9, 53] - NexoBrid, launched in the U S in Q4 2023, significantly expands the total addressable market in burn care[9]

Company Overview - Vericel is a leader in advanced cell therapies for the sports medicine and severe burn care markets[6, 11, 18, 22, 99] - The company utilizes an innovative advanced therapy platform, combining devices and biologics that use a patient's own cells to repair tissue and restore function[10] Financial Performance & Market Opportunity - The company achieved 45% trailing twelve-month product revenue growth[12] - Total trailing twelve-month product revenues reached $90.9 million as of December 31, 2018[13] - Vericel is operating in addressable markets valued at over $2 billion[14] - The company has cash and short-term investments of approximately $83 million with no debt as of December 31, 2018[22, 98] MACI Product Highlights - Cartilage defects are found in approximately 60% of knee arthroscopies[33, 34] - MACI demonstrated statistically significantly greater improvement in KOOS pain and function scores compared to microfracture at year 2 (p = 0.001)[52, 53] - 87.50% of patients responded to MACI treatment compared to 68.10% with microfracture (p = 0.016)[55, 56] Epicel Product Highlights - Epicel is a permanent skin replacement for full-thickness burns covering 30% or more of the total body surface area[76] - Data demonstrates a lower mortality rate for Epicel patients compared to the National Burn Repository[82] - The addressable market for Epicel in the U S is estimated at $120 million[86]

Financial Performance - Total revenue for Q4 2019 increased by 26% compared to Q4 2018[5] - Full-year 2019 MACI revenue grew by 35%[5] - Full-year 2019 Epicel revenue grew by 13%[5] - Gross margin expanded by 66 basis points in Q4 2019 compared to Q4 2018[5] - Adjusted EBITDA improved by $5.1 million in Q4 2019 compared to Q4 2018[5] - Net product sales for the full year 2019 were $117.85 million, compared to $90.857 million in 2018[16] Revenue Details - Q4 2019 total revenue was $33.6 million[9] - Full-year 2019 total revenue was $91.6 million[11] Guidance and Future Expectations - Full-year 2020 revenue guidance is $141-$146 million[6] - Full-year MACI revenue is expected to grow by approximately 26% in 2020[19]

VERICEL Q4 2021 RESULTS FEBRUARY 24, 2022 Safe Harbor | --- | --- | --- ...

Summary of Vericel Conference Call Company Overview - Vericel is a leading provider of advanced therapies for the sports medicine and severe burn care market [3] - The company has a portfolio of advanced cell therapies and specialty biologics designed to restore or repair damaged tissue [4] Key Products - **MACI**: An advanced cell therapy for repairing damaged cartilage, launched in 2017, now the leading restorative biologic cartilage repair product [4] - Received FDA approval for label expansion for arthroscopic delivery of MACI for defects up to four square centimeters [4] - **NexoBrid**: An orphan biologic product for the removal of burn tissue in patients [5] - **Epicel**: The only FDA-approved permanent skin replacement for patients with large, full-thickness burns [5] Competitive Advantages - Unique FDA-approved products with strong competitive barriers to entry [6] - MACI and Epicel are regulated as combination device biologic products, limiting competition [6] - NexoBrid has seven years of orphan market exclusivity and twelve years of biologic data exclusivity [7] Financial Performance - 20% compound annual revenue growth since MACI's launch in 2017 [8] - Ended last year with a 73% gross margin, up almost 400 basis points from 2023 [8] - Consistent positive adjusted EBITDA and operating cash flow for the last five years [8] - Strong balance sheet with approximately $160 million in cash [9] Growth Drivers for MACI - Expansion of the surgeon base and increasing the number of biopsies per surgeon [15] - High reimbursement rates, with over 90% approval for treatment by insurance companies [13] - Continued growth expected from MACI Arthro, targeting smaller defects in the knee [19][22] MACI Arthro Launch - MACI Arthro is seen as both a deeper and broader strategy for growth [19] - Surgeons trained for MACI Arthro increased from 150 to 400 within a few months [25] - Biopsy growth rate for trained surgeons was up 30%, indicating strong early adoption [26] - The product is designed for smaller defects, expanding the addressable market significantly [22] Guidance and Market Outlook - Increased financial guidance due to strong performance and market conditions [39] - Epicel's growth was 16% last year, with expectations for normalization in future quarters [41] - Anticipated significant cash generation post-capital expenditures [44] Capital Allocation - Focus on business development opportunities while maintaining a disciplined approach [47] - Expectation of increased free cash flow as capital expenditures decrease [44] Conclusion - Vericel is positioned for continued growth with a strong product portfolio, competitive advantages, and a solid financial foundation, particularly with the launch of MACI Arthro and ongoing market expansion efforts [49]

Group 1 - The article discusses the focus on covered call opportunities within the biotech sector, particularly in the context of a small-cap company, Vericel Corporation (NASDAQ: VCEL) [1] - Vericel Corporation was previously rated as a 'Sell' due to its extreme valuation despite growth prospects [1] - The Biotech Forum offers a model portfolio featuring 12-20 high upside biotech stocks, along with live discussions and weekly updates [1]

Core Insights - Vericel Corporation will participate in a fireside chat at the Truist Securities MedTech Conference on June 17, 2025, at 9:20 a.m. ET [1] Company Overview - Vericel Corporation is a leader in advanced therapies for sports medicine and severe burn care markets, combining biological innovations with medical technologies [2] - The company markets three products in the United States: - MACI, an autologous cellularized scaffold for repairing full-thickness cartilage defects in the knee [2] - Epicel, a permanent skin replacement for treating deep dermal or full-thickness burns covering 30% or more of total body surface area [2] - NexoBrid, a biological orphan product for eschar removal in burn patients, for which Vericel holds exclusive North American rights [2]