Artivion (AORT) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $99.0 million, up 4% year-over-year on a constant currency basis, with strong growth in stent grafts, On-X, and BioGlue, despite a 23% decline in preservation services due to a cybersecurity incident; operations have largely normalized and backlog clearance is ahead of schedule.

• Adjusted EBITDA increased 1% to $17.5 million, while net loss was $0.5 million (GAAP), or $(0.01) per share; non-GAAP net income was $2.5 million, or $0.06 per share.

• Key growth drivers included the AMDS launch, Onyx valve market expansion, and positive Nexus trial data, with clinical results supporting future regulatory approvals and product launches.

• On-X supply and tissue processing backlog cleared faster than expected after the November 2024 cybersecurity incident; On-X supply fully normalized, tissue backlog expected to clear by end of Q3 2025.

• Raised full-year 2025 revenue guidance and reiterated adjusted EBITDA growth expectations, supported by strong execution and product momentum.

Financial highlights

• Q1 2025 revenue was $99 million, up 4% year-over-year constant currency; GAAP revenue up 1.6%; Adjusted EBITDA was $17.5 million, margin 17.7%.

• Gross margin was 64.2% (GAAP), down slightly from 64.6% year-over-year, with gross profit at $63.6 million.

• Product revenue grew 11% year-over-year, led by stent grafts (+19%), On-X (+11%), and BioGlue (+9%).

• Preservation services revenue declined 23% due to the cyber incident backlog, but recovery is ahead of schedule.

• Regional revenue growth: Latin America +26%, EMEA +14%, Asia-Pacific +8%, North America -6% (constant currency).

Outlook and guidance

• Full-year 2025 constant currency revenue guidance raised to $423–$435 million (11–14% growth); adjusted EBITDA expected at $84–$91 million, up 18–28% year-over-year.

• Q2 2025 revenue forecasted at $107.5M–$109.5M, with sequential AMDS sales growth expected each quarter.

• Tissue backlog expected to be fully cleared by end of Q3, supporting mid-single digit growth for the year.

• Expectation to be free cash flow positive for FY25; cash from operations and credit facilities sufficient for liquidity needs.

• No changes to FX assumptions; minimal impact expected from tariffs.