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ARTIVION, INC. (AORT)·Q2 2025 Earnings Summary

Executive Summary

  • Beat-and-raise quarter: revenue $112.97M (+15% GAAP, +14% CC) vs S&P consensus $107.95M; adjusted diluted EPS $0.24 vs consensus ~-$0.00; adjusted EBITDA $24.76M, below EBITDA consensus as non-GAAP EBITDA (ex add-backs) was $16.22M; company raised FY25 revenue to $435–$443M and adjusted EBITDA to $86–$91M. *
  • Mix and execution drove outperformance: On‑X +24%, stent grafts +22% CC; AMDS HDE ramp and cross‑selling improved GM (GAAP 64.7%, +50 bps non‑GAAP YoY).
  • Balance sheet de‑risked: retired ~$100M convertible notes; quarter-end cash $53.5M, debt $215.6M, net leverage 2.2x.
  • Near-term catalysts: continued AMDS ramp, Arcevo LSA IDE launch by YE25, BioGlue China commercialization in 2H25, Endospan NEXUS PMA path (H2’26).

* Values retrieved from S&P Global

What Went Well and What Went Wrong

What Went Well

  • “Exceptionally strong” quarter with constant currency revenue growth 14% and adjusted EBITDA +33%; On‑X and stent grafts both grew >20% CC; midpoints for FY25 revenue and EBITDA raised.
  • Gross margin expansion aided by U.S. AMDS HDE revenues and strong On‑X mix; non‑GAAP GM 65.1% (+50 bps YoY); adjusted EBITDA margin 21.9% (+~300 bps YoY).
  • Capital structure improvement: effectively retired ~$100M convert due 7/1/25; net leverage reduced to 2.2x (from 4.1x prior year).

What Went Wrong

  • EBITDA vs consensus: non‑GAAP EBITDA of $16.22M missed consensus $21.10M (adjusted EBITDA was $24.76M, but consensus tracked non‑GAAP EBITDA). *
  • Ongoing cyber incident expenses ($1.7M in Q2) excluded from adjusted EBITDA; backlog in tissue processing persists, though expected to normalize by Q3.
  • FX sensitivity and estimate variability: foreign currency revaluation gains ($4.5M pretax) boosted non‑GAAP net income; management cautioned insurance recoveries timing and inherent uncertainty in forward non‑GAAP reconciliations.

* Values retrieved from S&P Global

Financial Results

Trend vs prior quarters (sequential)

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$97.31 $98.98 $112.97
GAAP Diluted EPS ($)$(0.39) $(0.01) $0.03
Adjusted Diluted EPS ($)$0.00 $0.06 $0.24
Gross Margin % (GAAP)63.0% (Q4) 64.2% (Q1) 64.7% (Q2)
Gross Margin % (Non-GAAP)——65.1%
EBITDA, Non-GAAP ($M)$10.15 $10.67 $16.22
Adjusted EBITDA ($M)$17.61 $17.55 $24.76
Adjusted EBITDA Margin %18.1% 17.7% 21.9%

Year-over-year comparison (Q2 2025 vs Q2 2024)

MetricQ2 2024Q2 2025YoY Change
Revenue ($USD Millions)$98.02 $112.97 +15% GAAP; +14% CC
GAAP Diluted EPS ($)$(0.05) $0.03 +$0.08
Adjusted Diluted EPS ($)$0.07 $0.24 +$0.17
Adjusted EBITDA ($M)$18.64 $24.76 +33%

Actuals vs Wall Street Estimates (S&P Global)

MetricEstimateActualSurprise
Revenue ($USD Millions)$107.95*$112.97 +$5.02M (Beat)*
Primary EPS (Normalized) ($)-$0.00*$0.24 +$0.24 (Beat)*
EBITDA, Non-GAAP ($M)$21.10*$16.22 -$4.88M (Miss)*

* Values retrieved from S&P Global

Segment & Geographic Breakdown (Q2 2025 vs Q2 2024)

Segment ($USD Millions)Q2 2024Q2 2025YoY CC Growth
Aortic Stent Grafts$32.19 $39.84 +22% CC
On‑X$20.65 $25.57 +24% CC
Surgical Sealants$18.55 $19.29 +4% CC
Other Products$1.83 $2.74 +50% CC
Preservation Services$24.81 $25.53 +3% CC
Total Revenues$98.02 $112.97 +14% CC
Geography ($USD Millions)Q2 2024Q2 2025YoY CC Growth
North America$48.66 $57.57 +18% CC
EMEA$34.15 $38.71 +10% CC
Asia Pacific$9.65 $11.13 +15% CC
Latin America$5.56 $5.56 +7% CC

KPIs and Balance Sheet

KPIQ2 2025
Free Cash Flow, Non‑GAAP ($M)$11.72
Cash ($M)$53.48
Total Debt ($M)$215.54
Net Leverage (x)2.2x
Foreign Currency Revaluation Gain (pretax)~$4.5M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue (Reported)FY 2025$423–$435M (CC +11–14%) $435–$443M (CC +12–14%) Raised midpoint
Adjusted EBITDAFY 2025$84–$91M (+18–28%) $86–$91M (+21–28%) Raised midpoint
FX AssumptionFY 2025Not revising FX (volatility) ~Flat vs 2024 More favorable
Adjusted EBITDA MarginFY 2025~+200 bps YoY at midpoint ~+200 bps YoY at midpoint Maintained
Gross Margin ExpansionFY 2025~+100 bps (AMDS mix) ~+100 bps (AMDS mix) Maintained
Q2 2025 Revenue (one-time guide issued on Q1 call)Q2 2025$107.5–$109.5M Actual $112.97M Beat prior guide
H2 Revenue Growth AssumptionH2 2025—~17% at midpoint New cadence disclosure

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
AMDS HDE U.S. LaunchHDE granted; 3-step onboarding (IRB, VAC, training); ~150 facilities pursuing approvals; AMDS to add +1–2 pts to FY25 growth Sequential revenue ramp, strong early adoption; training events driving cross‑sell to On‑X; pursuing top ~600 of ~1,000 centers Accelerating
On‑X Mechanical ValvesDouble-digit growth; STS/JACC data showed mortality benefit <60 yrs; supply constraints in Q1 due cyber +24% CC in Q2, particularly strong in U.S.; new accounts and utilization rising; cross‑sell from AMDS Strengthening
Tissue ProcessingCyber incident drove backlog; expected to catch up by end Q3 +3% CC in Q2; backlog still normalizing, expected cleared by end Q3 Improving
Gross Margin & EBITDA LeveragePlan: +100 bps GM from AMDS mix; +SG&A leverage; higher R&D (7–8%) +50 bps non‑GAAP GM improvement; adjusted EBITDA margin 21.9% (+~300 bps YoY) On track
FX & TariffsFX initially a -2% headwind; tariffs exposure minimal (U.S.-made, <1% sales in China) FY25 FX now ~flat to 2024; Q2 benefited from stronger EUR/USD More favorable FX
BioGlue ChinaRegulatory approval obtained; commercialization expected 2H25 Confirmed 2H25 commercialization timing; no new Q2 specifics Pending launch
Arcevo LSA (Frozen Elephant Trunk)Pipeline; trial planning IDE approval received; plan to enroll first patient by YE25 Advancing
Endospan NEXUS PMA30‑day IDE data: 63% MAE reduction; PMA targeted H2’26; $135M upfront option post-approval Physician feedback “overwhelmingly positive” on stroke/renal endpoints; timeline intact Positive momentum

Management Commentary

  • CEO: “Given our strong second quarter performance and continued business momentum, we are raising the midpoints of our full year 2025 constant currency revenue and EBITDA guidance and remain confident in our ability to grow adjusted EBITDA at twice the rate of constant currency revenue growth.”
  • CFO: “Adjusted EBITDA margin was 21.9%… driven by improvements in gross margin, leverage in SG&A and timing of R&D spend… Free cash flow was $11.7M… We retired our convertible senior notes due 2025… net leverage ratio was 2.2.”
  • CEO on AMDS: “Reception to the launch has remained extremely encouraging… feedback from physicians already using the device has been overwhelmingly positive.”

Q&A Highlights

  • AMDS adoption KPIs: Company ceased quarterly disclosure of non‑financial onboarding metrics but stated pipeline “larger” than last quarter; focus on top ~600 of ~1,000 U.S. centers; training sessions are catalyzing immediate On‑X adoption in some accounts.
  • Guidance drivers: Q2 outperformance vs guided 13% CC growth; improved FX assumptions; raised FY25 revenue and adjusted EBITDA midpoints; H2 growth ~17% at midpoint, driven by tissue normalization and AMDS ramp.
  • Pricing environment: Modest inflationary price increases, no unusual actions; revenue growth volume‑led.
  • Arcevo LSA trial: IDE approved; contracting/IRB underway; first patient targeted before YE25; training lift expected to be modest given surgeon familiarity.
  • Free cash flow: Positive for full year despite Q1 catch‑up; Q2 improved collections; trajectory supportive of Endospan option funding.

Estimates Context

  • Revenue and normalized EPS beat consensus; non‑GAAP EBITDA missed consensus (consensus tracked EBITDA before add‑backs rather than adjusted EBITDA). Expectations for FY25 point to ~$441.75M revenue and ~$0.23 normalized EPS, consistent with raised company guidance band.
  • Implications: Sell‑side models likely to revise top‑line and EPS higher for H2 on AMDS ramp and tissue normalization; EBITDA line may bifurcate (some track “EBITDA non‑GAAP,” others prefer “adjusted EBITDA”).*
MetricPeriodConsensusActualDelta
Revenue ($M)Q2 2025$107.95*$112.97 +$5.02*
Primary EPS (Normalized) ($)Q2 2025-$0.00*$0.24 +$0.24*
EBITDA, Non-GAAP ($M)Q2 2025$21.10*$16.22 -$4.88*
Revenue ($M)FY 2025$441.75*Guidance $435–$443 In range*
Primary EPS (Normalized) ($)FY 2025$0.23*N/A—

* Values retrieved from S&P Global

Key Takeaways for Investors

  • Beat-and-raise with robust product momentum: On‑X and stent grafts (>20% CC) plus AMDS ramp drove top‑line beat; guidance midpoints raised—supports near‑term positive estimate revisions and potential stock catalysts.
  • Margins expanding ahead of plan: Mix shift (AMDS, U.S. On‑X) improving GM and adjusted EBITDA margins; management reiterates ~100 bps GM expansion and ~200 bps adjusted EBITDA margin expansion for FY25.
  • Deleveraging reduces risk: Convert retired; net leverage down to 2.2x, improving flexibility for Endospan option and pipeline investment.
  • H2 setup strong: Tissue backlog clearance (Q3) and sequential AMDS growth underpin ~17% H2 revenue growth at midpoint; watch for onboarding pace in top centers and training throughput.
  • Pipeline catalysts: Arcevo LSA IDE trial start by YE25; BioGlue China commercialization in 2H25; Endospan NEXUS PMA trajectory intact for H2’26 (option cost $135M upfront net of loans).
  • Model nuances: If tracking “adjusted EBITDA,” Q2 performance was strong; if tracking “EBITDA non‑GAAP,” Q2 missed consensus—clarify methodology in comps and monitor quarter-to-quarter add‑backs (cyber costs, FX). *
  • Risks to watch: FX volatility (currently favorable vs prior views), cyber-related cash timing, and cadence of AMDS IRB/VAC approvals; tariff exposure minimal given U.S. manufacturing and negligible China sales.

* Values retrieved from S&P Global