John McCalley

John McCauley sought clarification on the recurring revenue per procedure, noting a potential significant decline if procedures grew 20% year-over-year. He also asked for more specific guidance on the high double-digit to low triple-digit revenue growth for 2026 and the expected capital versus recurring revenue mix for the upcoming year.

Answer

CEO Arun Menawat reiterated that the 20% procedure growth was year-over-year and that recurring revenue doesn't perfectly correlate quarter-over-quarter due to inventory management, confirming no discounting on the $5,500 disposable price. While not providing official guidance, Menawat indicated that John's projected range for 2026 revenue growth was in the 'right ballpark.' He also stated that a 50/50 or 60/40 capital-heavy mix is reasonable for the next few years due to new site installations, while reaffirming a long-term 70/30 recurring revenue mix.

John McCauley inquired about the implied significant decline in revenue per procedure quarter-over-quarter, given the 20% year-over-year procedure growth and CAD 2.3 million recurring revenue. He also asked for clarification on Profound Medical's 2026 growth expectations and the anticipated capital versus recurring revenue mix for the year.

Answer

Arun Menawat, Chairman and CEO of Profound Medical, reiterated that the 20% growth was year-over-year and explained that recurring revenue quarter-over-quarter does not always directly reflect product usage due to inventory management, with no discounting on the fixed $5,500 disposable price. He confirmed that John's analysis of the 2026 growth range was in the 'right ballpark' based on adding 42 sites. Menawat also indicated that the revenue mix for the next few years would likely be closer to 50/50 or 60/40 (capital heavy) due to increasing site additions, while reaffirming the long-term expectation of a 70/30 recurring-to-capital mix.

John McCalley inquired about the progress and remaining opportunity for AMDS account penetration in 2026 and beyond, and sought reaction to the impressive NEXUS data from STS, framing its market opportunity, competitive landscape, and potential for market expansion.

Answer

CEO Pat Mackin stated that AMDS is still in its 'first inning,' with 2025 focused on opening accounts and only penetrating about 10% of target accounts, expressing bullishness for 2026 growth. For NEXUS, Pat Mackin highlighted it as a nascent market with one approved competitor, emphasizing its platform technology for high-risk patients and its potential to expand the $150 million U.S. market, expecting PMA approval in H2.

John McCalley with Stifel inquired about the progress of AMDS account penetration and implant growth, and sought Artivion's reaction to the impressive NEXUS data from STS, including framing the market opportunity, competitive landscape, and potential for market expansion.

Answer

Pat Mackin, CEO, described AMDS as being in the 'first inning,' with only about 10% of target accounts opened in 2025, highlighting significant opportunity in 2026 for both new account openings and increased implants in existing accounts. Regarding NEXUS, he noted the nascent market for high-risk patients, the $150 million US market opportunity, and expressed confidence in NEXUS's competitive positioning and its role in Artivion's commitment to aortic technologies.