Artivion Reports First Quarter 2025 Financial Results
First Quarter Highlights:
-- Achieved revenue of $99.0 million in the first quarter of 2025 versus
$97.4 million in the first quarter of 2024, an increase of 2% on a GAAP
basis and 4% on a non-GAAP constant currency basis
-- Net loss was $(0.5) million, or $(0.01) per fully diluted share and
non-GAAP net income was $2.5 million, or $0.06 per fully diluted share
in the first quarter of 2025
-- Adjusted EBITDA increased 1% to $17.5 million in the first quarter of
2025 compared to $17.3 million in the first quarter of 2024
-- 30-day data from Endospan's NEXUS TRIOMPHE IDE trial presented at the
AATS Annual Meeting demonstrated a 63% reduction in the major adverse
event (MAE) rate compared with reference performance goal
-- Submitted the clinical module of the pre-market approval application
(PMA) to the FDA for the AMDS Hybrid Prosthesis
ATLANTA, May 5, 2025 /PRNewswire/ -- Artivion, Inc. (NYSE: AORT), a leading cardiac and vascular surgery company focused on aortic disease, today announced financial results for the first quarter ended March 31, 2025.
"I am pleased with our first quarter results as we returned to normal operations following our previously disclosed cybersecurity incident while making substantial progress on our strategic growth initiatives. As anticipated, our performance was driven by year-over-year growth in stent grafts of 14%, On-X of 10%, and BioGlue of 7%, all compared to the first quarter of 2024. On a constant currency basis, year-over-year stent grafts, On-X, and BioGlue grew 19%, 11% and 9%, respectively. Our strong product revenue growth of 14% on a constant currency basis was tempered by a 23% decrease in preservation services revenue due to the short-term backlog in tissue processing operations caused by the cybersecurity incident. We are pleased with our team's progress to date in returning to standard tissue processing times, as we outpaced our initial expectations enabling stronger than anticipated first quarter performance," said Pat Mackin, Chairman, President, and Chief Executive Officer.
Mr. Mackin added, "Given our strong first quarter performance, we are raising the midpoint of our full year revenue expectations for 2025 and remain confident in our ability to grow adjusted EBITDA at twice the rate of constant currency revenue growth."
Mr. Mackin concluded, "We were also pleased to see Endospan present positive new clinical data for its NEXUS aortic stent graft system at the AATS Annual Meeting in May. Trial data out to 30 days met its primary endpoints and demonstrated statistically significant improvement in clinical outcomes compared with the goals set in the investigational protocol. With these outcomes, we believe NEXUS remains on track for FDA approval in the second half of 2026 and we look forward to Endospan sharing 1-year follow up data next year."
First Quarter 2025 Financial Results
Total revenues for the first quarter of 2025 were $99.0 million, an increase of 2% on a GAAP basis and 4% on a non-GAAP constant currency basis, both compared to the first quarter of 2024.
Net loss for the first quarter of 2025 was $(0.5) million, or $(0.01) per fully diluted common share, compared to net income of $7.5 million, or $0.18 per fully diluted common share for the first quarter of 2024. Non-GAAP net income for the first quarter of 2025 was $2.5 million, or $0.06 per fully diluted common share, compared to non-GAAP net income of $2.6 million, or $0.06 per fully diluted common share for the first quarter of 2024. Non-GAAP net income for the first quarter of 2025 includes pretax gains related to foreign currency revaluation of $2.9 million.
2025 Financial Outlook
Artivion is raising the midpoint of its revenue guidance and now expects full year 2025 revenue to be in the range of $423 to $435 million, representing growth of 11% to 14% on a constant currency basis compared to 2024. While current exchange rates would provide incremental upside to our as-reported revenue guidance range, the Company is not revising its FX assumptions at this time given ongoing volatility in the foreign exchange environment.
Additionally, Artivion continues to expect adjusted EBITDA growth of between 18% and 28% for the full year 2025 compared to 2024, resulting in an expected range of $84 to $91 million for 2025.
The Company's financial performance for 2025 and future periods is subject to the risks identified below.
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, including non-GAAP revenue, non-GAAP net income and diluted EPS, EBITDA, adjusted EBITDA, non-GAAP general, administrative, and marketing expenses, and free cash flows. Investors should consider this non-GAAP information in addition to, and not as a substitute for, financial measures prepared in accordance with US GAAP. In addition, this non-GAAP financial information may not be the same as similar measures presented by other companies. The Company's non-GAAP revenues are adjusted for the impact of changes in currency exchange. The Company's non-GAAP net income, EBITDA, adjusted EBITDA, general, administrative, and marketing, and free cash flows results primarily exclude (as applicable) depreciation and amortization expense, interest income and expense, non-cash compensation expense, loss or gain on foreign currency revaluation, income tax expense or benefit, business development, integration, and severance income or expense, loss on extinguishment of debt, non-cash interest expense, capital expenditures, and other non-recurring items.
The Company generally uses non-GAAP financial measures to facilitate management's review of the operational performance of the Company and as a basis for strategic planning. Company management believes that these non-GAAP presentations provide useful information to investors regarding unusual non-operating transactions, the operating expense structure of the Company's existing and acquired operations, without regard to its on-going efforts to acquire additional complementary products and businesses, and the transaction and integration expenses incurred in connection with recently acquired and divested product lines, and the operating expense structure excluding fluctuations resulting from foreign currency revaluation and non-cash compensation expense. The Company believes it is useful to exclude certain expenses and revenues because such amounts in any specific period may not directly correlate to the underlying performance of its business operations or can vary significantly between periods as a result of factors such as impact of recent acquisitions, non-cash expense related to amortization of previously acquired tangible and intangible assets, and any related adjustments to their carrying values. The Company has adjusted for the impact of changes in currency exchange from certain revenues to evaluate comparable product growth rates on a constant currency basis. The Company does, however, expect to incur similar types of expenses and currency exchange impacts in the future, and this non-GAAP financial information should not be viewed as a statement or indication that these types of expenses will not recur. Company management encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety, including the reconciliation of GAAP to non-GAAP financial measures.
The Company's adjusted EBITDA expectations for fiscal 2025 exclude potential charges or gains that may be recorded during the fiscal year, relating to, among other things, non-cash compensation, business development, integration, and severance income or expense, loss on extinguishment of debt, and foreign currency revaluations. The Company does not attempt to provide reconciliations of forward-looking adjusted EBITDA to the comparable GAAP measure because the impact and timing of these potential charges or gains are inherently uncertain and difficult to predict and are unavailable without unreasonable efforts. In addition, the Company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a material impact on GAAP measures of the Company's financial performance.
Webcast and Conference Call Information
The Company will hold a teleconference call and live webcast on May 5, 2025, at 4:30 p.m. ET to discuss the results, followed by a question-and-answer session. To participate in the conference call dial 201-689-8261 a few minutes prior to 4:30 p.m. ET. The teleconference replay will be available approximately one hour following the completion of the event and can be accessed by calling (toll free) 877-660-6853 or 201-612-7415. The conference number for the replay is 13752340.
The live webcast and replay can be accessed by going to the Investors section of the Artivion website at www.Artivion.com and selecting the heading Webcasts & Presentations.
About Artivion, Inc.
Headquartered in suburban Atlanta, Georgia, Artivion, Inc., is a medical device company focused on developing simple, elegant solutions that address cardiac and vascular surgeons' most difficult challenges in treating patients with aortic diseases. Artivion's four major groups of products include: aortic stent grafts, surgical sealants, On-X mechanical heart valves, and implantable cardiac and vascular human tissues. Artivion markets and sells products in more than 100 countries worldwide. For additional information about Artivion, visit our website, www.Artivion.com.
Forward-Looking Statements
Statements made in this press release that look forward in time or that express management's beliefs, expectations, or hopes are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the views of management at the time such statements are made. These statements include, but are not limited to, our beliefs and expectations about our revenue, year-over-year growth and growth drivers, earnings, currency impacts, and other financial measures and related information; our anticipated capital needs and capital structure; our beliefs about our competitive advantages and market opportunities; the expected impact on our business of the dynamic trade policy and tariff environment; our expected product mix and business strategy; anticipated quarterly fluctuations in our business; our beliefs and expectations about the impact of the November 2024 cybersecurity incident, including our expected timeline for returning to normal levels of inventory and backlog; the timeline for regulatory approval for AMDS and other products, including our expectation that NEXUS is on track to obtain FDA approval in the second half of 2026; the benefits of receiving the Humanitarian Device Exemption and Breakthrough Designation for AMDS; our expected geographies and timeframes for commercializing our products; that our revenues for the full year 2025 will be in the range of $423 to $435 million, representing revenue growth of between 11% to 14% compared to 2024 on a constant currency basis; and that we expect non-GAAP adjusted EBITDA to increase between 18% and 28% for the full year 2025 compared to 2024, resulting in non-GAAP adjusted EBITDA in the range of $84 to $91 million in 2025. These forward-looking statements are subject to a number of risks, uncertainties, estimates and assumptions that may cause actual results to differ materially from current expectations, including, but not limited to, the unpredictability of the timing and outcome of regulatory decisions and other regulatory developments; risks relating to our international operations; the benefits anticipated from our 2024 credit facility, the Ascyrus Medical LLC transaction and Endospan agreements, and our operational improvements in our tissue and stent graft business may not be achieved at all or at the levels we anticipate or had originally anticipated; the benefits anticipated from our clinical trials and regulatory approvals may not be achieved or achieved on our anticipated timelines; the uncertainty regarding potential unknown or future impacts of the November 2024 cybersecurity incident; and the benefits anticipated from our expansion into APAC and LATAM may not be achieved or achieved on our anticipated timelines. These risks and uncertainties include the risk factors detailed in our Securities and Exchange Commission filings, including our Form 10-K for the year ended December 31, 2025, and our Form 10-Q for the quarter ended March 31, 2025. Artivion does not undertake to update its forward-looking statements, whether as a result of new information, future events, or otherwise.
Artivion, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income
In Thousands, Except Per Share Data
(Unaudited)
Three Months Ended
March 31,
2025 2024
Revenues:
Products $78,798 $71,114
Preservation services 20,180 26,317
Total revenues 98,978 97,431
Cost of products and preservation services:
Products 25,263 23,750
Preservation services 10,138 10,735
Total cost of products and preservation services 35,401 34,485
Gross margin 63,577 62,946
Operating expenses:
General, administrative, and marketing 54,704 30,689
Research and development 6,728 6,946
Total operating expenses 61,432 37,635
Operating income 2,145 25,311
Interest expense 7,663 7,826
Interest income (144) (374)
Loss on extinguishment of debt - 3,669
Other (income) expense, net (3,079) 1,409
(Loss) income before income taxes (2,295) 12,781
Income tax (benefit) expense (1,790) 5,248
Net (loss) income $(505) $7,533
(Loss) income per share:
Basic $(0.01) $0.18
Diluted $(0.01) $0.18
Weighted-average common shares outstanding:
Basic 42,232 41,290
Diluted 42,232 47,886
Net (loss) income $(505) $7,533
Other comprehensive income:
Foreign currency translation adjustments, net of tax 6,331 (1,528)
Comprehensive income $5,826 $6,005
Artivion, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
In Thousands
March 31, December 31,
2025 2024
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $37,693 $53,463
Trade receivables, net 87,802 79,462
Other receivables 7,956 6,431
Inventories 81,927 79,766
Deferred preservation costs 52,375 51,701
Prepaid expenses and other 19,544 19,257
Total current assets 287,297 290,080
Goodwill 245,069 240,958
Acquired technology, net 127,530 128,051
Operating lease right-of-use assets, net 39,229 39,726
Property and equipment, net 37,810 36,403
Other intangibles, net 28,517 28,332
Deferred tax assets, net 684 1,068
Other long-term assets 25,027 24,483
Total assets $791,163 $789,101
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $11,695 $17,971
Accrued compensation 12,294 18,342
Accrued expenses 11,520 11,834
Accrued interest 6,757 8,170
Taxes payable 1,605 2,934
Accrued procurement fees 1,982 1,704
Current maturities of operating leases 4,575 4,489
Current portion of finance lease obligations 669 601
Current portion of long-term debt, net 135 195
Other current liabilities 708 583
Total current liabilities 51,940 66,823
Long-term debt, net 314,611 314,152
Contingent consideration 50,050 52,880
Non-current maturities of operating leases 39,353 39,988
Deferred tax liabilities, net 21,532 20,183
Deferred compensation liability 8,070 7,977
Non-current finance lease obligations 3,016 2,833
Other long-term liabilities 8,339 8,065
Total liabilities $496,911 $512,901
Commitments and contingencies
Stockholders' equity:
Preferred stock $0.01 par value per share, 5,000 shares authorized, no shares issued -
Common stock $0.01 par value per share, 75,000 shares authorized, 44,190 and 43,432 shares issued as of March 31, 2025 and December 31, 2024, respectively 442 434
Additional paid-in capital 388,825 376,607
Retained deficit (61,771) (61,266)
Accumulated other comprehensive loss (18,596) (24,927)
Treasury stock, at cost, 1,487 shares as of March 31, 2025 and December 31, 2024 (14,648) (14,648)
Total stockholders' equity 294,252 276,200
Total liabilities and stockholders' equity $791,163 $789,101
Artivion, Inc. and Subsidiaries
Condensed Consolidated Statement of Cash Flows
In Thousands
(Unaudited)
Three Months Ended
March 31,
2025 2024
Net cash flows from operating activities:
Net (loss) income $(505) $7,533
Adjustments to reconcile net (loss) income to net cash from operating activities:
Depreciation and amortization 5,446 5,909
Non-cash compensation 8,045 3,478
Non-cash lease expense 1,226 1,920
Write-down of inventories and deferred preservation costs 1,312 723
Deferred income taxes - 4,299
Change in fair value of contingent consideration (2,830) (17,470)
Loss on extinguishment of debt - 3,669
Other (2,891) 644
Changes in operating assets and liabilities:
Receivables (7,922) (3,334)
Inventories and deferred preservation costs (2,453) (1,380)
Prepaid expenses and other assets (327) (2,268)
Accounts payable, accrued expenses, and other liabilities (16,054) (9,216)
Net cash flows used in operating activities (16,953) (5,493)
Net cash flows from investing activities:
Capital expenditures (3,638) (3,611)
Net cash flows used in investing activities (3,638) (3,611)
Net cash flows from financing activities:
Proceeds from issuance of long-term debt - 190,000
Proceeds from revolving credit facility - 30,000
Repayment of debt (66) (211,627)
Proceeds from exercise of stock options and issuance of common stock 4,181 3,528
Payment of debt issuance costs - (9,998)
Principal payments on short-term notes payable - (1,027)
Other (178) (139)
Net cash flows provided by financing activities 3,937 737
Effect of exchange rate changes on cash and cash equivalents 884 545
Decrease in cash and cash equivalents (15,770) (7,822)
Cash and cash equivalents beginning of period 53,463 58,940
Cash and cash equivalents end of period $37,693 $51,118
Artivion, Inc. and Subsidiaries
Financial Highlights
In Thousands
(Unaudited)
Three Months Ended
March 31,
2025 2024
Products:
Aortic stent grafts $36,602 $32,103
On-X 21,574 19,681
Surgical sealants 18,106 16,981
Other 2,516 2,349
Total products 78,798 71,114
Preservation services 20,180 26,317
Total revenues $98,978 $97,431
North America 47,793 50,928
Europe, the Middle East, and Africa 37,045 33,588
Asia Pacific 8,214 7,609
Latin America 5,926 5,306
Total revenues $98,978 $97,431
Artivion, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP
Revenues
$ In Thousands
(Unaudited)
Revenues for the Percent
Three Months Ended Change
March 31, From Prior
Year
2025 2024
US GAAP US GAAP Exchange Constant Constant
Rate Effect Currency Currency
Products:
Aortic stent grafts $36,602 $32,103 $(1,308) $30,795 19 %
On-X 21,574 19,681 (272) 19,409 11 %
Surgical sealants 18,106 16,981 (317) 16,664 9 %
Other 2,516 2,349 (4) 2,345 7 %
Total products 78,798 71,114 (1,901) 69,213 14 %
Preservation services 20,180 26,317 (67) 26,250 -23 %
Total $98,978 $97,431 $(1,968) $95,463 4 %
North America 47,793 50,928 (152) 50,776 -6 %
Europe, the Middle East, and Africa 37,045 33,588 (1,210) 32,378 14 %
Asia Pacific 8,214 7,609 7,609 8 %
Latin America 5,926 5,306 (606) 4,700 26 %
Total $98,978 $97,431 $(1,968) $95,463 4 %
Artivion, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP
General, Administrative, and Marketing Expense, EBITDA, Adjusted EBITDA, and Free Cash Flows
In Thousands
(Unaudited)
Three Months Ended
March 31,
2025 2024
Reconciliation of G&A expenses, GAAP to adjusted G&A, non-GAAP:
General, administrative, and marketing expense, GAAP $54,704 $30,689
Business development, integration, and severance income (2,784) (17,387)
Cybersecurity incident 4,450
Adjusted G&A, non-GAAP $53,038 $48,076
Three Months Ended
March 31,
2025 2024
Reconciliation of net (loss) income, GAAP and EBITDA, non-GAAP to adjusted EBITDA, non-GAAP:
Net (loss) income, GAAP $(505) $7,533
Adjustments:
Interest expense 7,663 7,826
Interest income (144) (374)
Income tax (benefit) expense (1,790) 5,248
Depreciation and amortization expense 5,446 5,909
EBITDA, non-GAAP 10,670 26,142
Non-cash compensation 8,045 3,478
Business development, integration, and severance income (3,057) (17,387)
Cybersecurity incident 4,746
Loss on extinguishment of debt - 3,669
(Gain) loss on foreign currency revaluation (2,856) 1,410
Adjusted EBITDA, non-GAAP $17,548 $17,312
Three Months Ended
March 31,
2025 2024
Reconciliation of cash flows from operating activities, GAAP to free cash flows, non-GAAP:
Net cash flows provided by operating activities (16,953) (5,493)
Capital expenditures (3,638) (3,611)
Free cash flows, non-GAAP $(20,591) $(9,104)
Artivion Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP
Net Income and Diluted Income Per Common Share
In Thousands, Except Per Share Data
(Unaudited)
Three Months Ended
March 31,
2025 2024
GAAP:
(Loss) income before income taxes $(2,295) $12,781
Income tax (benefit) expense $(1,790) $5,248
Net (loss) income $(505) $7,533
Diluted (loss) income per common share $(0.01) $0.18
Diluted weighted-average common shares outstanding 42,232 47,886
Reconciliation of (loss) income before income taxes, GAAP to adjusted income, non-GAAP:
(Loss) income before income taxes, GAAP: $(2,295) $12,781
Adjustments:
Amortization expense 3,388 3,867
Business development, integration, and severance income (3,057) (17,387)
Non-cash interest expense 543 580
Cybersecurity incident 4,746
Loss on extinguishment of debt - 3,669
Adjusted income before income taxes, non-GAAP 3,325 3,510
Income tax expense calculated at a tax rate of 25% 831 878
Adjusted net income, non-GAAP $2,494 $2,632
Reconciliation of diluted (loss) income per common share, GAAP to adjusted diluted income per common share, non-GAAP:
Diluted (loss) income per common share, GAAP: $(0.01) $0.18
Adjustments:
Amortization expense 0.08 0.09
Business development, integration, and severance income (0.07) (0.41)
Non-cash interest expense 0.01 0.01
Cybersecurity incident 0.11
Loss on extinguishment of debt - 0.09
Tax effect of non-GAAP adjustments (0.03) 0.05
Effect of 25% tax rate (0.03) 0.05
Adjusted diluted income per common share, non-GAAP $0.06 $0.06
Reconciliation of diluted weighted-average common shares outstanding GAAP to diluted weighted-average common shares outstanding, non-GAAP:
Diluted weighted-average common shares outstanding, GAAP: 42,232 47,886
Adjustments:
Effect of dilutive stock options and awards 1,306
Effect of convertible senior notes - (5,707)
Diluted weighted-average common shares outstanding, non-GAAP 43,538 42,179
Contacts:
Artivion Gilmartin Group LLC
Lance A. Berry Brian Johnston /Laine
Morgan
Executive Vice President & Phone: 332-895-3222
Chief Financial Officer investors@artivion.com
Phone: 770-419-3355
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SOURCE Artivion, Inc.
