Financial Data and Key Metrics Changes - Q4 2025 featured 16% sales growth, a gross margin of 71.7%, and a 47% increase in operating income [4] - Q4 fully diluted earnings per share were $0.68, representing a 39% year-over-year increase [8] - For the full year 2025, organic revenue growth was 14%, with adjusted gross margin at 70.4% and adjusted EPS growth of 23% [9] Business Line Data and Key Metrics Changes - Sales growth in Q4 was led by grafts (up 27%), valvetomes (up 20%), and shunts (up 18%) [4] - RFA Vascular grew 19% and RFA Cardiac grew 90% in Q4 [4] - Autograft sales grew 29% worldwide in Q4, with international sales reaching $1.9 million in Q4 and $4 million for the full year 2025 [4][9] Market Data and Key Metrics Changes - EMEA region sales grew 29%, APAC grew 20%, and the Americas grew 10% in Q4 [4] - International sales of autograft are expected to reach approximately $10 million in 2026, contributing $6 million of sales growth for the year [4] Company Strategy and Development Direction - The company aims to produce quality devices, build its vascular sales force, go direct in new countries, acquire niche products, and focus on profitability, cash flow, and dividends [7] - The company plans to consolidate its Chicago RFA facility into Burlington in 2026 to simplify operations and reduce costs [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, anticipating 12% sales growth and 21% adjusted operating income growth [6][11] - The company experienced a cyber incident in January 2026 but reported minimal disruption to sales and manufacturing [9][10] Other Important Information - The board approved a new $100 million share repurchase program and a Q1 2026 dividend of $0.25 per share, marking the 15th consecutive year of dividend increases [10] - The company ended 2025 with $359 million in cash and securities, with free cash flow of $74.5 million [9] Q&A Session Summary Question: Can you rank the factors key to achieving operating growth? - Management highlighted stable headcount, sales pricing growth, and improved manufacturing efficiency as key factors for operating leverage [16] Question: What contributed to the smoother price transition this year? - Management noted that sending price lists earlier allowed for better preparation among sales and customer service teams, leading to a smoother transition [17] Question: What is the setup for M&A in 2026? - Management indicated a focus on organic growth but remains open to M&A opportunities, particularly in the open vascular area [28][30] Question: Can you elaborate on the performance of Artegraft? - Management revised the total addressable market (TAM) for Artegraft in Europe to $30 million, indicating stronger than expected performance [33] Question: How is the company performing in China? - Management reported a 24% revenue increase in Q4, with profitability achieved for the first time in the region [47] Question: What is the outlook for gross margin in 2026? - Management expects gross margin to increase by 170 basis points from 2025 to 2026, driven by pricing increases and manufacturing efficiencies [75] Question: What is the anticipated impact of the Restore Flow manufacturing transfer? - Management indicated it may be a slight headwind to margins in 2026 as operations transition [96]

Financial Data and Key Metrics Changes - Q4 2025 featured 16% sales growth, with a gross margin of 71.7% and operating income growth of 47% [4] - Q4 fully diluted earnings per share (EPS) were $0.68, a 39% increase year-over-year [8] - For the full year 2025, organic revenue growth was 14%, with adjusted EPS growth of 23% [9] Business Line Data and Key Metrics Changes - Sales growth in Q4 was led by grafts (up 27%), valvulotomes (up 20%), and shunts (up 18%) [4] - RFA Vascular grew 19% and RFA Cardiac grew 90% in Q4 [4] - Artegraft grew 29% worldwide in Q4, with international sales reaching $1.9 million in Q4 and $4 million for the full year 2025 [4] Market Data and Key Metrics Changes - EMEA region grew 29%, APAC grew 20%, and the Americas grew 10% in Q4 [4] - International sales are expected to reach approximately $10 million in 2026, contributing $6 million of sales growth for the year [4] Company Strategy and Development Direction - The company aims to produce quality devices, build its vascular sales force, go direct in new countries, acquire niche products, and focus on profitability, cash flow, and dividends [7] - The 2026 U.S. price list reflects a blended 8% increase across the portfolio, with early results indicating hospital acceptance [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, anticipating 12% sales growth and 21% adjusted operating income growth [9] - The company is focused on niche markets and believes it is well-positioned for another successful year in 2026 [12] Other Important Information - The company ended 2025 with $359 million in cash and securities, and free cash flow for the year was $74.5 million [9] - A cyber incident in January 2026 had minimal impact on sales and operations, with adequate insurance coverage [10] Q&A Session Summary Question: Factors for achieving operating growth in 2026 - Management highlighted stable headcount, sales pricing growth, and improved manufacturing efficiency as key factors for operating leverage [16] Question: Outlook for future price increases - Management noted that the smoother transition for price increases this year was due to earlier communication and preparation [17][19] Question: M&A strategy and targets - The company is actively pursuing M&A opportunities in open vascular and cardiac surgery, with a focus on revenues between $15 million and $150 million [30][31] Question: Performance of Artegraft and market potential - Management revised the total addressable market (TAM) for Artegraft in Europe to $30 million, indicating stronger than expected performance [33] Question: Updates on the European market and MDR approvals - The company has been aggressive with MDR approvals, gaining market share as competitors faced challenges [44][46] Question: Performance in China - Revenue in China grew 24% in Q4, with the company now profitable in that market for the first time [47][48] Question: Valvulotome sales growth - Management attributed the 20% growth in valvulotomes to a well-established sales channel and effective marketing [50][56] Question: Guidance for 2026 tax rate and share count - The tax rate for 2026 is expected to be around 23.2%, with share count remaining stable [100] Question: Approval status for RestoreFlow in Ireland - Approval for RestoreFlow in Ireland is now expected in Q3 2026, delayed from previous expectations [103]

Financial Data and Key Metrics Changes - Q4 2025 featured 16% sales growth, with a gross margin of 71.7% and operating income growth of 47% [4] - Q4 fully diluted earnings per share were $0.68, a 39% increase year-over-year [9] - For the full year 2025, organic revenue growth was 14%, with adjusted gross margin at 70.4% and adjusted EPS growth of 23% [10] Business Line Data and Key Metrics Changes - Sales growth in Q4 was led by grafts (up 27%), valvetomes (up 20%), and shunts (up 18%) [4] - RFA Vascular grew 19% and RFA Cardiac grew 90% in Q4 [4] - Autograft sales grew 29% worldwide in Q4, with international sales reaching $1.9 million in Q4 and $4 million for the full year 2025 [4] Market Data and Key Metrics Changes - EMEA region sales grew 29%, APAC grew 20%, and the Americas grew 10% in Q4 [4] - International sales of autograft are expected to reach approximately $10 million in 2026, contributing $6 million of sales growth for the year [4] Company Strategy and Development Direction - The company aims to produce quality devices, build its vascular sales force, go direct in new countries, acquire niche products, and focus on profitability, cash flow, and dividends [7] - The 2026 U.S. price list reflects a blended 8% increase across the portfolio, with early results indicating hospital acceptance [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, anticipating revenue of $280 million, organic sales growth of 12%, and operating income of $77.8 million, up 21% adjusted from 2025 [12] - The company experienced a cyber incident in January 2026 but reported minimal disruption to sales and manufacturing [10][11] Other Important Information - The board approved a new $100 million share repurchase program and a Q1 2026 dividend of $0.25 per share, marking the 15th consecutive year of dividend increases [11] - The company ended 2025 with $359 million in cash and securities, with free cash flow of $74.5 million [10] Q&A Session Summary Question: Guidance and Operating Growth Factors - Management highlighted stable headcount, sales pricing growth, and manufacturing efficiencies as key factors for achieving operating growth above sales growth [15][16] Question: Price Increases and Future Outlook - Management noted that the smoother transition for price increases this year was due to earlier communication and preparation [18][19] Question: M&A Environment and Strategy - The company is actively pursuing M&A opportunities, focusing on open vascular and cardiac surgery markets, with 22 targets identified [30][32] Question: Artegraft Performance and Market Potential - Management revised the total addressable market (TAM) for Artegraft in Europe to $30 million, indicating stronger than expected performance [34][35] Question: Impact of CREST-2 Trial on Carotid Business - Management stated that the carotid shunt business remains resilient and is transitioning to an OUS business model [70][72] Question: Gross Margin Outlook - Management expects continued gross margin improvement, with guidance for a 170 basis point increase from 2025 to 2026 [80][82] Question: Restore Flow Manufacturing Transfer - The transfer of Restore Flow manufacturing is expected to be a slight headwind to margins in 2026, with costs already included in guidance [102]

Financial Data and Key Metrics Changes - Q1 2025 sales showed stronger performance than previously guided, with 13% organic growth and 12% reported growth, driven by grafts (up 17%) and carotid shunts (up 14%) [6][13] - Gross margin for Q1 2025 was 69.2%, a 60 basis point increase year-over-year, attributed to higher average selling prices (ASPs) and lower inventory scrap [14][15] - Operating income increased 6% year-over-year to $12.6 million, with an operating margin of 21% [16] - Fully diluted EPS rose to $0.48, reflecting a 10% increase [16] - Cash and securities at the end of Q1 2025 totaled $302.5 million, up $2.8 million from the previous quarter [16] Business Line Data and Key Metrics Changes - Record sales were achieved across all five product categories: grafts, carotid shunts, catheters, valvulotomes, and patches [6][14] - Organic sales growth of 13% was driven by a 9% increase in average selling prices and a 4% increase in units sold [14] Market Data and Key Metrics Changes - By geography, EMEA sales increased by 18%, the Americas by 11%, and APAC by 3% [6] - The autograft product, which had $37 million in U.S. sales in 2024, is expected to have a market size of approximately $8 million in Europe and the rest of the world [9][10] Company Strategy and Development Direction - The company is focusing on expanding its sales force, with a target of 170 sales representatives by year-end, up from 164 [7][30] - New international sales offices are being established, including a direct office in Portugal and a new office in Zurich to enhance sales performance [8][9] - The company plans to open a pan-European RestoreFlow distribution facility in Dublin in H2 2025 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in increasing guidance for 2025 sales to $245 million, up from $239 million, due to strong Q1 performance and successful price increases [13][21] - The company anticipates that exiting the Aleutia distribution agreement will improve organic growth and gross margin [17][95] - Management remains optimistic about long-term prospects in China despite current trade tensions, indicating a commitment to the market [20][38] Other Important Information - The company has received 17 out of 23 MDR CE marks, with ongoing efforts to secure additional approvals [126] - The company is implementing price increases in China to offset tariff impacts, expecting to recover about 50% of additional costs [91] Q&A Session Summary Question: What factors contributed to the increased guidance? - Management cited strong Q1 performance, better-than-expected price increases, and the positive impact of exiting the Aleutia business as key factors for increased guidance [26][30] Question: Any updates on M&A activity? - The M&A pipeline remains strong, focusing on open vascular surgery and adjacent cardiac surgery markets, with a preference for larger deals [34][77] Question: How does the company view the impact of tariffs? - Management believes the company is well-positioned due to its U.S.-only manufacturing footprint and limited reliance on imports, with plans to raise prices to offset potential tariff impacts [18][20] Question: What is the outlook for gross margins? - Management expects gross margins to be slightly lower than previous guidance but maintains a strong operating margin outlook due to sales growth and exiting lower-margin products [65][84] Question: How will the new sales representatives impact growth? - Management indicated that new sales representatives are expected to contribute to sales growth more quickly than in the past, with a ramp-up time that has improved [73][75]

Financial Data and Key Metrics Changes - Q1 2025 sales showed a 13% organic growth and a 12% reported growth, exceeding previous guidance [5] - Gross margin for Q1 2025 was 69.2%, a 60 basis point increase year-over-year, driven by higher average selling prices (ASPs) and lower inventory scrap [13][14] - Operating income increased 6% year-over-year to $12.6 million, with an operating margin of 21% [15] - Fully diluted EPS rose to $0.48, up 10% [15] - Cash and securities at the end of Q1 2025 totaled $302.5 million, an increase of $2.8 million during the quarter [15] Business Line Data and Key Metrics Changes - Sales records were achieved in all five categories: grafts (up 17%), carotid shunts (up 14%), catheters, valvulotomes, and patches [5] - The autograft, a biologic graft, was the largest U.S. product in 2024 with $37 million in sales, and the European market size is estimated at $8 million [8][9] Market Data and Key Metrics Changes - By geography, EMEA sales increased by 18%, Americas by 11%, and APAC by 3% [5] - International sales of autografts reached $180,000 in Q1, with expectations for approvals in Australia, Canada, Singapore, and Korea by H1 2026 [9] Company Strategy and Development Direction - The company is focusing on expanding its sales force, targeting 170 representatives by year-end, up from 164 [6] - A new distribution facility in Dublin is planned to support pan-European distribution of RestoreFlow [11][106] - The company aims to improve organic growth and gross margin by winding down the porcine patch distribution agreement with Eulsha [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in increasing guidance due to strong Q1 performance, effective price increases, and the positive impact of new sales representatives [26][30] - The company anticipates that trade tensions will not significantly impact its operations due to its U.S.-only manufacturing footprint [19][20] Other Important Information - The company has raised its full-year revenue guidance to $245 million, reflecting robust sales performance and a weaker U.S. dollar [21] - The anticipated gross margin for the full year is now 69.6%, with operating income projected at $57.7 million [21] Q&A Session Summary Question: What gives confidence to increase guidance early in the year? - Management cited strong Q1 performance, better-than-expected price increases, and the positive impact of exiting the Aleutia business as key factors [26][30] Question: Any updates on M&A activity? - The pipeline is strong, focusing on open vascular surgery and adjacent cardiac surgery markets, with a preference for larger deals [33] Question: Concerns regarding XenoSure in China? - Management acknowledged challenges but remains committed to the market, expecting to continue pursuing provincial approvals [38] Question: Clarification on gross margin performance? - The allograft product's strong performance contributed to the gross margin miss, with expectations for improved margins in the second half of the year [60][62] Question: How will the sales force ramp-up impact operating leverage? - Management indicated that new sales representatives are expected to contribute to operating income growth, with a projected 14% increase in H2 [70] Question: Impact of tariffs on guidance? - Tariffs have been factored into guidance, with price increases planned to offset costs associated with tariffs [88] Question: How does exiting the Aleutia agreement impact organic growth? - Exiting the agreement is expected to improve organic growth as the product was declining in sales [91][92]