Artivion (NYSE:AORT) Q4 2025 Earnings call February 12, 2026 04:30 PM ET Company ParticipantsBill Plovanic - Managing Director and Healthcare Equity ResearchDaniel Stoter - VP of Equity ResearchLance Berry - COO and CFOLane Morgan - Associate Vice PresidentPat Mackin - CEOConference Call ParticipantsJohn McCalley - Equity Research AnalystMike Matson - Managing Director and Senior Equity Research AnalystNone - AnalystNone - AnalystOperatorGood afternoon, and welcome to the Artivion fourth quarter and year-en ...

Artivion (NYSE:AORT) Q4 2025 Earnings call February 12, 2026 04:30 PM ET Company ParticipantsBill Plovanic - Managing Director and Healthcare Equity ResearchDaniel Stauder - VP of Equity ResearchLance Berry - COO and CFOLane Morgan - Associate Vice PresidentPat Mackin - CEOConference Call ParticipantsJohn McCalley - Equity Research AnalystMike Matson - Managing Director and Senior Equity Research AnalystNone - AnalystNone - AnalystOperatorGood afternoon, and welcome to the Artivion Q4 and Year-end 2025 Earn ...

Artivion (NYSE:AORT) Q4 2025 Earnings call February 12, 2026 04:30 PM ET Speaker3Good afternoon, and welcome to the Artivion fourth quarter and year-end 2025 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference o ...

Summary of Artivion Conference Call Company Overview - **Company**: Artivion - **Industry**: Medical Devices, specifically focusing on aortic technologies Key Points and Arguments Strategic Focus and Vision - Artivion has shifted its focus to cardiac and vascular surgeons treating the aorta, divesting non-aortic products to concentrate on unmet clinical needs in this area [2][3][5] - The company has made several strategic acquisitions over the past five years, including On-X, Jotec, and Ascyrus, to enhance its product offerings and address significant clinical challenges [3][5][6] Product Pipeline and Growth - Artivion has a robust pipeline with seven PMAs (Premarket Approvals) in progress, indicating a strong future growth trajectory without the immediate need for further acquisitions [9][10] - The company anticipates double-digit revenue growth and EBITDA growth at twice the rate of revenue for many years, with recent quarters showing even higher growth rates [15][17][40] AMDS Technology - The AMDS (Aortic Malperfusion Device System) is expected to expand the market for treating acute type A aortic dissections, potentially reducing mortality rates significantly [18][20] - AMDS is positioned to be used in a wider range of centers, which could lead to increased adoption and market expansion [18][20][21] Competitive Landscape - AMDS competes with existing technologies like the Frozen Elephant Trunk and hemianchor repair, but its ease of use and effectiveness may lead to broader adoption among surgeons [21][23] - The company aims to maintain a comprehensive aortic strategy by offering multiple treatment options, ensuring they meet diverse patient needs [23][24] Financial Performance and Projections - The mechanical heart valve business, particularly On-X, has seen significant growth, with recent quarters showing over 20% growth, driven by new clinical data demonstrating advantages over bioprosthetic valves [28][30][31] - The company expects gross margins to improve, with a target of reaching 70% in the long term, driven by the introduction of high-margin products [42][45] Operational and Financial Management - Artivion is focused on maintaining operational scalability to support growth, ensuring that infrastructure keeps pace with increasing demand for high-margin products [49][50] - The company has a solid cash flow management strategy, with priorities including funding for potential acquisitions and debt repayment [57] Market Dynamics and Reimbursement - The introduction of a new DRG (Diagnosis-Related Group) for complex aortic arch procedures is expected to facilitate AMDS adoption by improving reimbursement rates [27] - The company has successfully navigated previous reimbursement challenges, and the new DRG is seen as a positive development for market entry [27] Future Outlook - Artivion is optimistic about its growth prospects, with plans to train surgeons on AMDS and leverage new clinical data to drive market share [33][36] - The company is committed to a long-term growth strategy, focusing on innovation and customer needs in the aortic space [60][61] Additional Important Insights - The company has experienced a significant shift in its market positioning and is now seen as a leader in aortic technologies, with a clear focus on addressing critical clinical needs [1][2][60] - Artivion's management emphasizes the importance of aligning all teams towards a common goal of delivering innovative aortic solutions to improve patient outcomes [60][61]

Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were $113.4 million, representing a 16% increase compared to Q3 2024 [15] - Adjusted EBITDA increased approximately 39% from $17.7 million to $24.6 million in Q3 2025 [15] - Adjusted EBITDA margin improved to 21.7%, a 320 basis point increase year-over-year [16] - Gross margins were 65.6% in Q3 2025, up from 63.7% in Q3 2024, reflecting a 200 basis point increase [17] Business Line Data and Key Metrics Changes - Stent Graft revenues grew 31% on a constant currency basis in Q3 2025 [16] - ON-X revenues increased by 23% year-over-year on a constant currency basis [16] - Tissue processing revenue rose 5% year-over-year on a constant currency basis [11] - BioGlue revenues grew 1% in Q3 compared to the same period last year [11] Market Data and Key Metrics Changes - Revenues in North America increased by 19% [16] - Asia-Pacific revenues grew by 18% [16] - EMEA revenues increased by 12% [16] - Latin America revenues rose by 10% [16] Company Strategy and Development Direction - The company aims to replicate its successful Stent Graft strategy in the U.S. and Japan, expanding its total addressable market [5] - The establishment of a new MS-DRG code for complex aortic procedures is expected to enhance the economic value proposition of AMDS [7] - The company is focused on advancing a robust pipeline of high-margin innovations, estimating a $1 billion incremental market opportunity over the next five-plus years [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining double-digit revenue growth while growing adjusted EBITDA at twice the rate of revenue growth [15] - The company anticipates continued growth driven by AMDS, On-X heart valves, and the Nexus PMA [24] - Management highlighted the importance of new clinical data and reimbursement dynamics as tailwinds for growth [24] Other Important Information - The company expects to be slightly cash flow negative for the full year 2025 due to a one-time cash payment related to facility purchases [18] - As of September 30, 2025, the company had approximately $73.4 million in cash and $214.9 million in debt [19] Q&A Session Summary Question: What is the expected annualized cost for the Arcevo trial? - Management indicated that R&D funding is expected to be 7%-8% of sales annually, with a full year of trial costs anticipated in 2026 [27] Question: What is driving the growth of ON-X? - Management noted that growth is attributed to market share gains and new clinical data showing benefits of mechanical valves over bioprosthetic valves [29] Question: Can you elaborate on the new DRG and its economic implications? - Management explained that the new DRG reflects the high cost and complexity of advanced aortic arch procedures, which should alleviate previous economic challenges [31] Question: What is the expected market size for Arcevo? - The estimated market size for the frozen elephant trunk in the U.S. is about $80 million [38] Question: How is AMDS performing in terms of sell-through versus sell-in? - Management stated that revenue is currently weighted towards initial stocking, with increasing implantations expected [35] Question: What are the expectations for AMDS in international markets? - The company plans to pursue PMA approval in the U.S. before moving towards approvals in Japan and China [42]

Core Insights - Artivion (NYSE:AORT) exceeded Wall Street's revenue expectations for Q3 CY2025, reporting sales of $113.4 million, which represents an 18.4% year-on-year growth and a 2.6% beat against analyst estimates [1][7] - The company raised its full-year revenue guidance to $442 million at the midpoint, slightly above analysts' expectations [1][7] - Non-GAAP profit per share was reported at $0.16, aligning with consensus estimates [1][7] Revenue Growth - Artivion achieved a 16% constant currency revenue growth in Q3, driven by significant year-over-year increases in stent grafts (38%), On-X (25%), preservation services (5%), and BioGlue (2%) compared to Q3 2024 [3] - The company has demonstrated a 10.6% annualized revenue growth over the last five years, which is slightly above the average for healthcare companies, indicating strong customer resonance [5] - Over the last two years, Artivion's annualized revenue growth was 11.5%, consistent with its five-year trend, suggesting stable demand [6] Financial Performance - Adjusted EBITDA for Q3 was $24.57 million, exceeding analyst estimates of $22.25 million, with a margin of 21.7% [7] - Operating margin improved to 11.1%, up from 4.6% in the same quarter last year, while free cash flow margin increased to 15.6%, up from 8.2% year-on-year [7] - Market capitalization stands at $2.19 billion [7]

Investment Activity - Oppenheimer Asset Management Inc. purchased 21,513 shares of Artivion, Inc. valued at approximately $669,000, representing about 0.05% ownership at the end of the last quarter [2] - MCF Advisors LLC increased its holdings by 109.3%, now owning 1,176 shares worth $29,000 after buying an additional 614 shares [2] - Other institutional investors, including EntryPoint Capital LLC, Natixis Advisors LLC, and Zurcher Kantonalbank Zurich Cantonalbank, also increased their stakes in Artivion during the first quarter [2] Analyst Ratings - Citigroup maintained an "outperform" rating for Artivion [3] - Needham & Company raised the price target from $45.00 to $50.00 and assigned a "buy" rating [3] - The average rating for Artivion is "Moderate Buy" with a consensus target price of $43.97 [3] Stock Performance - Artivion's stock opened at $45.41, with a 52-week low of $21.97 and a high of $46.19 [4] - The company has a market capitalization of $2.14 billion and a PE ratio of -108.12 [4] Financial Results - Artivion reported $0.24 EPS for the last quarter, exceeding estimates of $0.11 by $0.13 [5] - Revenue for the quarter was $112.97 million, up 15.3% year-over-year, surpassing estimates of $107.96 million [5] - The company has set its FY 2025 guidance at EPS, with analysts forecasting $0.37 for the current fiscal year [5] Insider Transactions - SVP Jean F. Holloway sold 23,356 shares at an average price of $43.01, totaling approximately $1,004,541.56, reducing ownership by 11.95% [6] - SVP Marshall S. Stanton sold 18,200 shares at an average price of $44.02, totaling approximately $801,164.00, representing a 22.09% decrease in position [6] - Insiders have sold a total of 74,858 shares worth $3,250,129 over the last three months, with insiders owning 7.60% of the stock [6] Company Overview - Artivion, Inc. manufactures and distributes medical devices and implantable human tissues, including BioGlue and aortic arch stent grafts [8]

Summary of Artivion (NYSE:AORT) FY Conference Call - September 10, 2025 Company Overview - Artivion is focused on aorta-related medical devices, particularly heart valves for patients under 65 years old, and products for treating aortic aneurysms and dissections [4][5] - The company has a revenue guidance midpoint of $440 million for the year, with a 20% EBITDA margin [4] - Artivion aims for double-digit growth in sales and to grow EBITDA at twice the rate of sales [4][6] Financial Performance and Guidance - The company expects an acceleration in growth in the second half of 2025, driven by the launch of AMDS and easier comparisons due to a cyber attack in the previous year [6][7] - Historical EBITDA margin expansion of 200 to 300 basis points annually, with expectations for continued leverage in sales and marketing [7][8] - Current gross margin is approximately 65%, with AMDS expected to contribute significantly higher margins [8] Product Portfolio and Growth Drivers - The On-X mechanical valve business has seen durable growth, with a 22% increase worldwide, driven by positive clinical data and cross-selling opportunities [9][12] - AMDS is a new device for treating acute type A aortic dissection, showing promising clinical trial results with a mortality rate of 9.7% compared to a historical rate of 35% [16][14] - The Arsivo product, a third-generation frozen elephant trunk device, is set to begin trials, with expectations for FDA approval and expansion into the U.S. and Japan [23][24] Market Position and Competitive Advantage - Artivion emphasizes its focus on the aorta, with a pipeline of PMA-protected products and a strong market position [38][39] - The company has a competitive advantage in its technologies, with few competitors in each segment and high barriers to entry due to PMA requirements [41][42] - The company is confident in its ability to maintain and grow its market share, particularly with differentiated products [39][40] International Strategy and Market Expansion - Currently, Artivion's revenue is split 50-50 between international and U.S. markets, with plans to maximize U.S. growth while continuing to expand internationally [50][53] - The company has invested significantly in Asia and Latin America, with expectations for continued double-digit growth in international markets [51][54] Capital Allocation and Future Outlook - Artivion plans to allocate capital towards acquiring Endospan and paying down debt, with no immediate plans for share repurchases [35][36] - The company has a robust R&D pipeline with five PMAs in development, indicating a long-term growth trajectory [56][57] Key Takeaways - Artivion is positioned as a unique player in the aorta-focused medical device market, with strong financial health and growth potential [56][57] - The company’s focus on innovation and differentiation in its product offerings is expected to sustain its competitive edge and drive future growth [38][39]

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]

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]