Vericel Corporation (NASDAQ:VCEL) is one of the best small cap stocks to buy with huge upside potential. Truist analyst Richard Newitter slashed the price target on Vericel Corporation (NASDAQ:VCEL) to $45 from $50 on December 18, reaffirming a Buy rating on the stock as part of a broader research note previewing the coming year for the MedTech sector. Similarly, on December 16, Canaccord Genuity reaffirmed a Buy rating on Vericel Corporation (NASDAQ:VCEL) and set a $58 price target. Vericel Corporation ( ...

Market Trends - The market rotation trend is shifting from mega-cap tech stocks towards small caps, cyclicals, and financials, with expectations for this trend to continue due to easy monetary policy from the Fed and upcoming rate cuts [2][3] - Small caps are viewed as undervalued and are expected to outperform as the Fed enters a rate-cutting cycle, supported by fiscal policies and a new tax bill that benefits R&D intensive small caps [2][3] Investment Methodology - A list of small cap stocks was created using stock screeners, focusing on those with high analyst upside potential and hedge fund interest, with data sourced from Insider Monkey's database [6][7] - The methodology aims to identify stocks that hedge funds are investing in, as this strategy has historically outperformed the market [7] Company Highlights UP Fintech Holding Ltd. (NASDAQ:TIGR) - UP Fintech Holding Ltd. has a market cap of $1.54 billion and an analyst upside of 72.79%, with 18 hedge fund holders [8][9] - The company reported a fiscal Q3 revenue of $175.2 million, reflecting a 73.3% year-over-year growth, and a net income of $53.8 million, up 29.9% quarter-over-quarter [12] - Despite strong fiscal results, analysts maintain a cautious outlook due to anticipated rate cuts, slowing client acquisition, and market volatility [10][11] Vericel Corporation (NASDAQ:VCEL) - Vericel Corporation has a market cap of $1.84 billion and an analyst upside of 53.33%, also with 18 hedge fund holders [14] - The company reported fiscal Q3 revenue of $67.5 million, an increase from $57.9 million in the prior year, with net product revenue driven by MACI and Epicel products [15] - Vericel reaffirmed its full-year revenue guidance of $272 to $276 million, with a projected growth rate for MACI in the low 20% range [17]

Vericel (NasdaqGM:VCEL) FY Conference Summary Company Overview - **Company**: Vericel Corporation - **Industry**: Biotechnology, specifically in regenerative medicine and cell therapy Key Financial Highlights - **Q3 Revenue**: Achieved record revenue of approximately **$67.5 million** [4] - **MACI Revenue**: Contributed about **$56 million**, reflecting a **25% growth** [4] - **Burn Care Revenue**: Recorded its strongest quarter with approximately **$12 million** [4] - **Adjusted EBITDA**: Increased by **70%** to about **$17 million**, achieving a **25% margin** [5] - **GAAP Net Income**: Positive at approximately **$5 million** [5] - **Cash Generation**: Generated roughly **$20 million** in operating and free cash flow [5] Market and Product Insights - **Total Addressable Market (TAM)**: Identified a **60,000-patient TAM** for MACI [8] - **Market Segmentation**: - Key growth drivers include patella and larger defects, making up about **one-third** of the market [9] - Smaller defects, particularly in the femoral condyles (2-4 sq cm), represent about **two-thirds** of the market, with low penetration currently [10] - **Surgeon Adoption**: Growth in surgeon adoption is crucial, with expectations for continued growth in MACI usage among surgeons [12] Strategic Initiatives - **Salesforce Expansion**: - Expansion to approximately **100 territories** from **75**, with hiring ahead of schedule [26] - Focus on increasing surgeon activation and deeper penetration in existing accounts [29] - **International Expansion**: - Plans to target the U.K. for MACI rollout, with potential launch in **2027** [46] - New manufacturing facility in Burlington, MA, set to support both U.S. and international standards [46] Product Development and Pipeline - **MACI Ankle Study**: On track for initiation in Q4 [6] - **Arthro Training**: Surgeons trained in Arthro are showing higher biopsy growth rates compared to non-trained surgeons [18] - **Trochlear Defects**: Notable increase in utilization for trochlear defects, indicating a potential growth area [15] Financial Outlook - **2026 Growth Expectations**: Anticipated strong growth driven by MACI, with a cautious outlook for 2024 at around **20% growth** [34] - **Margin Guidance**: Projected **74% gross margin** and **26% adjusted EBITDA margin** for the current year, with expectations for margin expansion moving forward [49] Challenges and Considerations - **Burn Care Variability**: Epicel's revenue has shown variability, with efforts to stabilize and grow the burn care franchise [37] - **Nexabrid Utilization**: Despite achieving **70 P&T approvals**, utilization has been slower than expected due to workflow and training challenges [42] Conclusion - **Overall Positioning**: Vericel is well-positioned for continued growth with strong financial performance, strategic initiatives in place, and a focus on expanding its market presence both domestically and internationally. The company is optimistic about its future trajectory, particularly with the anticipated contributions from its expanded Salesforce and new product offerings.

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 [2] - The company markets three main products in the United States: MACI, Epicel, and holds an exclusive license for NexoBrid [2] Product Details - MACI is an autologous cellularized scaffold product for repairing symptomatic, full-thickness cartilage defects of the knee in adults [2] - Epicel is a permanent skin replacement for treating patients with deep dermal or full-thickness burns covering 30% or more of total body surface area [2] - NexoBrid is a biological orphan product indicated for eschar removal in patients with deep partial-thickness and/or full-thickness thermal burns [2] Upcoming Events - Vericel Corporation will participate in a fireside chat at the Stephens Annual Investment Conference on November 20, 2025, at 11:00 a.m. ET [1]

VERICEL Q3 2025 RESULTS NOVEMBER 6, 2025 Safe Harbor Vericel cautions you that all statements other than statements of historical fact included in this presentation that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. Although we believe that we have a reasonable basis for the forward-looking statements contained herein, they are based on current expectations about future events affecting us and are subject to r ...

Core Insights - Vericel Corporation reported record total revenue of $67.5 million for Q3 2025, a 16% increase from $57.9 million in Q3 2024 [5][8] - MACI revenue grew by 25% to $55.7 million, contributing significantly to the overall revenue growth [6][10] - The company achieved a net income of $5.1 million, compared to a net loss of $0.9 million in the same quarter last year [10][11] Financial Highlights - Total net revenue for Q3 2025 was $67.5 million, up from $57.9 million in Q3 2024 [5][8] - MACI net revenue was $55.7 million, with Epicel contributing $10.4 million and NexoBrid $1.5 million [5][6] - Gross margin improved to 73.5%, up from 71.9% in Q3 2024 [6][8] - Non-GAAP adjusted EBITDA increased by 69% to $17.0 million, representing 25% of total revenue [10][22] Business Developments - Over 800 MACI Arthro surgeons have been trained to date, indicating strong market engagement [6][10] - The MACI sales force expansion is on track for completion in Q4 2025, with new hires positioned for 2026 [6][10] - The MACI Ankle™ program is set to initiate clinical studies in Q4 2025 [6][10] Guidance and Outlook - Full-year revenue guidance is set between $272 million and $276 million, with MACI expected to grow in the low 20% range [7][10] - The company reaffirmed a gross margin target of 74% and an adjusted EBITDA margin of 26% for the full year [7][10]

Core Viewpoint - Vericel Corporation will report its third-quarter 2025 financial results on November 6, 2025, and will host a conference call to discuss these results and business highlights [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 to create a differentiated portfolio of cell therapies and specialty biologics [3]. - The company markets three 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 patients with deep partial-thickness and/or full-thickness thermal burns, for which Vericel holds exclusive North American rights [3].

Financial Data and Key Metrics Changes - The company reported a compounded annual revenue growth rate of around 20% since the launch of MACI in 2017, leading to impressive margin expansion with gross margins at approximately 73% and adjusted EBITDA margins at 23% last year [7][8] - The company has been profitable every quarter for the past five years, with positive operating cash flow, and ended the second quarter with about $165 million in cash and no debt [8][9] Business Line Data and Key Metrics Changes - MACI has become the leading restorative cartilage repair product, with significant market penetration in patella and larger defects, while MACI Arthro targets smaller defects, representing a substantial market opportunity [11][12] - The burn care segment includes two products: Epicel, which has been marketed for over 10 years, and NexoBrid, launched recently, with Epicel revenue up 16% last year [33][34] Market Data and Key Metrics Changes - The addressable market for MACI is characterized as approximately 60,000 patients annually, with significant opportunities in smaller defects and a targeted surgeon community of about 5,000 [11][12][14] - The burn care market is smaller, with about 40,000 hospitalized burn patients each year, and NexoBrid is expected to provide a more predictable revenue stream as it targets a larger patient base [37][38] Company Strategy and Development Direction - The company aims to expand its product portfolio with MACI Ankle, which could increase the overall MACI addressable market to over $4 billion, with a potential launch around 2031 [48][49] - International expansion is planned for 2027 or 2028, with a roadmap expected by the end of this year [43][44] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential of MACI Arthro and its ability to penetrate the market further, while also highlighting the unique revenue growth and profitability profile of the company [54] - The company anticipates a significant inflection in cash flow generation moving forward, supported by recent investments and operational efficiencies [52][54] Other Important Information - The company is expanding its sales force in anticipation of increased demand, particularly in the fourth quarter, and expects to have these positions filled soon [27][28] - The BARDA RFP for NexoBrid is in progress, with proposals submitted and expected outcomes aligned with national security preparedness [40][41] Q&A Session Summary Question: What is the market expansion opportunity for MACI Arthro? - The addressable market for MACI is about 60,000 patients annually, with MACI Arthro targeting smaller defects, representing a significant growth opportunity [11][12] Question: How is the surgeon training for MACI Arthro progressing? - About one-third of trained surgeons are new MACI users, with a good mix of existing and new users being trained [16][19] Question: What is the outlook for the burn care division? - Epicel is expected to continue growing, while NexoBrid is anticipated to provide a more predictable revenue stream as it targets a larger patient base [33][34][38] Question: What is the capital allocation strategy moving forward? - The company plans to invest in sales force expansion and product development while remaining selective in business development opportunities [52][53]

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 [2] - The company markets three main products in the United States: MACI, Epicel, and holds an exclusive license for NexoBrid [2] Product Details - MACI is an autologous cellularized scaffold product for repairing full-thickness cartilage defects in the knee, applicable to adults [2] - Epicel is a permanent skin replacement for treating patients with deep dermal or full-thickness burns covering 30% or more of total body surface area [2] - NexoBrid is a biological orphan product indicated for eschar removal in patients with deep partial-thickness and/or full-thickness burns [2] Upcoming Events - Vericel Corporation will participate in a fireside chat at the Wells Fargo Healthcare Conference on September 4, 2025, at 3:45 p.m. ET, with a webcast available on their Investor Relations website [1]

Core Insights - Vericel reported a 20% year-over-year GAAP revenue growth in Q2 2025, reaching $63.2 million, driven by its MACI franchise, despite missing analyst expectations of $64.5 million [1][2] - The company achieved a gross margin of 74%, an increase of 4 percentage points from the previous year, and narrowed its net loss per share to $0.01, outperforming the estimated loss of $0.03 [1][2][8] Financial Performance - Revenue for Q2 2025 was $63.2 million, up from $52.7 million in Q2 2024, reflecting a 20% increase [2] - Adjusted EBITDA (Non-GAAP) reached $13.4 million, a 112% increase from $6.3 million in Q2 2024 [2] - Operating cash flow was reported at $8.2 million, with cash reserves of approximately $164 million and no long-term debt [2][8] Product Performance - MACI, the cartilage repair implant, generated $53.5 million in revenue, a 21% increase year-over-year, and saw a significant rise in biopsies, indicating future revenue potential [5][6] - In burn care, Epicel and NexoBrid generated revenues of $8.6 million and $1.2 million, respectively, with Epicel revenue increasing from $7.8 million and NexoBrid growing by 52% from $0.8 million [7] Business Strategy - The company is focused on expanding the usage of its products, training more physicians, and enhancing delivery methods, such as the new arthroscopic technique for MACI [4][6] - Management plans to expand the MACI sales force in the second half of 2025 to align with expected demand and surgeon training momentum [11] Market Outlook - Management expects full-year MACI revenue growth in the low 20% range and a stable run rate of approximately $10 million per quarter for burn care in the second half of 2025 [12] - Vericel received FDA clearance for a Phase 3 study of MACI for ankle cartilage repair, potentially opening a new market worth an estimated $1 billion annually [11]