Vericel (VCEL) - 2025 Q2 - Quarterly Results

Q2 2025 Performance Overview Financial Highlights 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][12] - Operating cash flow for the second quarter was $8.2 million[3] Business Highlights and Updates 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][8] - Approximately 600 MACI Arthro™ surgeons have been trained to date, indicating strong adoption[2][8] - 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] - NexoBrid revenue increased 52% versus the prior year, and June saw the highest number of hospital unit orders since launch[8] 2025 Financial Guidance 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 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] GAAP vs. Non-GAAP Reconciliation 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 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 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] - 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] Forward-Looking Statements 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] - 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][20]