Executive Summary

Q3 delivered solid profitability with adjusted EPS $0.62 (+27% y/y) and adjusted gross margin 70.8% (+300 bps), while reported EPS of $0.75 benefited from a one-time Employee Retention Tax Credit (ERTC) of $4.8mm; revenue was $61.0mm (+11% y/y; +12% organic) .
Versus S&P Global consensus, revenue modestly missed ($61.0mm vs $62.17mm*), but EPS beat on both reported ($0.75 vs $0.56*) and adjusted bases ($0.62 vs $0.56*); strength came from pricing, mix and manufacturing efficiencies .
FY25 guidance raised on profitability: gross margin 71.4% (adj. 70.3%), operating income midpoint to $67.1mm (adj. $63.7mm) and EPS midpoint to $2.51 (adj. $2.37), while sales midpoint trimmed to $248mm (prior midpoint $251mm) amid FX and catheter recall timing dynamics; Q4 guide implies 29% op margin .
Stock-relevant catalysts: accelerating Artegraft OUS launch (Q3 OUS $1.4mm; Q4 run-rate expected ~$2mm), German approval for RestoreFlow (allograft) enabling broader EU approvals, 2026 U.S. price list +8%, and disclosure that 55% of North America revenue now has price floors; near-term watch items include APAC softness, FX headwinds and FDA warning letter (no supply disruption) .

What Went Well and What Went Wrong

What Went Well
- Pricing power and cost discipline expanded adjusted GM to 70.8% (+300 bps y/y) and adjusted op margin to 28%; CEO: “We’ve been making some progress… pricing… Autograft… providing a positive impact to product mix” .
- OUS Artegraft (Autograft) beat expectations: Q3 sales $1.4mm (Q2 $0.42mm) with Q4 expected ~$2mm; “doctors love it… finding customers faster than we thought” .
- Cash generation and balance sheet optionality: cash and securities rose $23.6mm to $343.1mm; CFO highlighted $28.8mm CFO and continued dividend payments .
What Went Wrong
- Revenue guide trimmed: ~~one-third from FX (~~$0.6mm), plus catheter recall pull-forward from Q2 and APAC execution issues (management transitions in Korea/Japan); “bringing guidance down by about $1.8 million in the quarter” .
- FDA warning letter (Aug 11) at NJ Autograft facility (QMS) adds regulatory overhang, though production/shipping/invoicing unaffected .
- China cardiac patch launch underwhelmed; pivoting to peripheral vascular patch (XenoSure) with filing expected in Q4 and longer-dated approval timeline .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($MM)	$54.82	$64.23	$61.05
Revenue Consensus ($MM)*	$53.51*	$62.52*	$62.17*
Primary (GAAP) Diluted EPS ($)	$0.49	$0.60	$0.75
EPS Consensus ($)*	$0.43*	$0.57*	$0.56*
Adjusted EPS ($)	N/A	N/A	$0.62

Values with asterisk are from S&P Global consensus.

Margins/Profitability	Q3 2024	Q2 2025	Q3 2025
Gross Margin % (reported)	67.8%	70.0%	75.3%
Gross Margin % (adjusted)	67.8%	—	70.8%
Operating Income ($MM, reported)	$13.15	$16.14	$20.31
Operating Margin % (reported)	24%	25%	33%
Operating Income ($MM, adjusted)	—	—	$16.93
Operating Margin % (adjusted)	—	—	28%
Adjusted EBITDA ($MM)	$15.78	—	$19.24

Geography Net Sales ($MM)	Q3 2024	Q3 2025
Americas	$35.80	$39.22
EMEA	$15.00	$17.63
APAC	$4.02	$4.20
YoY Growth (mgmt disclosure)	—	Americas +10%, EMEA +18%, APAC +4%

KPIs and Operating Metrics (Q3 2025)

Price vs Units contribution: +10% price, +2% units; ex-catheters +11% price, +3% units .
Product/category highlights: Grafts +23%, Shunts +18%, Artegraft +33% .
Sales force: 152 reps at quarter-end; 23 open reqs; targeting ~165 reps by year-end .
Headcount: 633 (9/30/25) vs 637 a year ago .
Cash and securities: $343.1mm; Cash from operations $28.8mm; CapEx $2.3mm .
Dividend: $0.20/share approved Oct 27, payable Dec 4 (record Nov 20) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Sales	FY 2025	$248–$254mm (Mid: $251mm)	$247–$249mm (Mid: $248mm)	Lowered
Gross Margin	FY 2025	69.7%	71.4% (Adj: 70.3%)	Raised
Operating Income	FY 2025	$58.8–$63.0mm (Mid: $60.9mm)	$66.4–$67.8mm (Mid: $67.1mm; Adj Mid: $63.7mm)	Raised
Operating Margin (Mid)	FY 2025	24%	27% (Adj: 26%)	Raised
EPS (Diluted)	FY 2025	$2.23–$2.37 (Mid: $2.30)	$2.48–$2.53 (Mid: $2.51; Adj Mid: $2.37)	Raised
Sales	Q4 2025	—	$61.8–$63.8mm (Mid: $62.8mm)	New
Gross Margin	Q4 2025	—	71.2%	New
Operating Income	Q4 2025	—	$17.3–$18.7mm (Mid: $18.0mm); Op margin ~29%	New
EPS (Diluted)	Q4 2025	—	$0.64–$0.69 (Mid: $0.67)	New
Dividend	Quarterly	$0.20/share (ongoing)	$0.20/share declared Oct 27	Maintained
Share Repurchase	Through 2/17/26	Up to $75mm authorization	Unchanged	Maintained

Drivers of the full-year revenue trim include ~$0.6mm FX headwind, catheter recall pull-forward into Q2, and APAC execution issues; profitability raised on pricing, mix and opex moderation .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 and Q1)	Current Period (Q3)	Trend
Pricing & Price Floors	Price drove +8% of Q2 growth; units +7% . Q1 highlighted price/mfg efficiencies supporting GM .	Price +10% of Q3 growth (units +2%); 55% of NA revenue under price floors; 2026 U.S. price list +8% .	Strengthening pricing power; broader price-floor coverage.
Gross Margin & Cost	GM 70.0% in Q2 (+110 bps) on price and mfg efficiencies .	Adj GM 70.8%; progress expected to 71.2% in Q4; mix tailwinds from Autograft and exit of distribution-only lines .	Upward trajectory across 2025.
Autograft/Allograft OUS	Q1: Artegraft MDR CE mark; EU launch commencing . Q2: OUS launch ahead of plan .	OUS sales ramped (Q3 $1.4mm; Q4 ~$2mm expected); German approval for RestoreFlow; EU approvals to follow; Dublin distribution leased .	Accelerating and expanding footprint.
Regulatory	Q1: Artegraft MDR CE mark .	FDA warning letter (Aug 11) to NJ Autograft facility; no disruption to production/shipping/invoicing .	Mixed: EU progress; U.S. remediation ongoing.
Regional Trends	Q1: EMEA +18%, APAC +3% ; Q2: EMEA +23%, APAC +12% .	EMEA +18%, Americas +10%, APAC +4%; APAC management transitions in Korea/Japan; China cardiac patch underperforming .	EMEA strong; APAC mixed.
Sales Force	Q1: 164 reps, 34 managers .	152 reps after 8 performance-based reductions; 23 open reqs; targeting 165 by YE .	Optimizing productivity; rebuilding to target.

Management Commentary

CEO on margin cadence and drivers: “Look at the cadence of gross margin… 69.2% in Q1, 70% in Q2, 70.8% adjusted here in Q3, and our guidance of 71.2%. The pricing… getting [distribution exit] out… Autograft… providing a positive impact to product mix” .
CEO on Artegraft OUS: “We didn’t realize the strength of our channel… doctors love it… South Africa has exploded… $300,000 in Q3 alone” .
CFO on operating leverage: “Op margin has increased over the first three quarters, 21%, 25%, 28%, and now we are guiding 29% in Q4… adjusted operating expenses decreasing by $4.5 million from H1-H2” .
CEO on price floors: “55% of our North American revenue is now subject to price floors… some commodity-type stuff… it would not be wise to put a price floor on it” .
CFO on cash: “We ended the quarter with $343.1 million in cash and securities… generated $28.8 million in cash from operations… paid $4.5 million in dividends” .

Q&A Highlights

Revenue guide mechanics: ~~one-third of Q4 guide reduction from FX (~~$0.6mm), plus catheter recall pull-forward and APAC execution issues; overall ~$1.8mm lower vs prior expectations .
2026 gross margin setup: continued price realization, Autograft mix benefit, and manufacturing efficiencies underpin upward GM trajectory; specifics not guided yet .
Pricing durability: 2026 U.S. price list +8% blended; niche categories can absorb higher increases; broader adoption of price floors to protect realized pricing .
Regulatory/quality: FDA warning letter addressed with responses; no impact to production/shipping/invoicing to date .
China: peripheral vascular patch final filing in Q4, but two-year approval timeline expected; cardiac patch underperforming since approval .

Estimates Context

Q3 2025: Revenue $61.05mm vs $62.17mm consensus* (miss); GAAP EPS $0.75 vs $0.56* (beat); Adjusted EPS $0.62 vs $0.56* (beat) .
Q4 2025 guide vs consensus: Sales midpoint $62.8mm vs $63.0mm* (slightly below); EPS midpoint $0.67 vs $0.662* (slightly above) .
FY 2025 guide vs consensus: Sales midpoint $248mm vs $248.26mm* (inline); EPS midpoint $2.51 vs $2.418* (above) .
Values with asterisk are from S&P Global.

Implication: Street models likely adjust mix—lower near-term revenue for FX/recall timing and APAC execution, offset by higher gross margin and operating leverage driving EPS upward.

Key Takeaways for Investors

Pricing-led operating leverage is the core narrative: adjusted GM +300 bps y/y to 70.8% and op margin stepping up to 28%, with Q4 guided to ~29% .
EPS power is increasing despite modest revenue headwinds; FY25 EPS guide raised meaningfully vs prior, supported by price floors, mix (biologics) and opex moderation .
OUS biologics runway is significant: Artegraft OUS ramp and RestoreFlow Germany approval de-risk broader EU expansion into 2026; near-term inventory build in Germany is a gating factor .
Watch APAC: leadership transitions and China cardiac patch softness temper the regional outlook; the peripheral patch pathway is longer-dated .
Regulatory overhang: FDA warning letter bears monitoring, but no production/shipment disruption to date .
Capital deployment optionality remains high with $343.1mm in cash/securities and a $75mm buyback authorization; management is active but disciplined on M&A .
Near-term trading setup: modest revenue miss vs consensus offset by better margins/EPS and raised FY profit guidance; catalysts include Q4 execution on 29% op margin and continued OUS biologics traction .

Notes: Values with asterisk are from S&P Global consensus estimates. All other figures and commentary are sourced from the company’s Q3 2025 8-K and press release and the Q3 2025 earnings call transcript. Citations: –, –, –, –.

LEMAITRE VASCULAR INC (LMAT)·Q3 2025 Earnings Summary