Artivion (AORT) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $99.0 million, up 2% year-over-year (4% constant currency), driven by strong growth in stent grafts, On-X, and BioGlue, partially offset by a 23% decline in preservation services due to a cybersecurity incident; operations and supply chains normalized faster than expected.

• Adjusted EBITDA increased 1% to $17.5 million, with a margin of 17.7%; net loss was $0.5 million (GAAP), or $(0.01) per share, while non-GAAP net income was $2.5 million, or $0.06 per share.

• Key growth drivers included the AMDS HDE launch, On-X heart valve market expansion, and positive Nexus trial data, with clinical trials showing significant reductions in major adverse events.

• On-X supply and tissue processing backlog cleared ahead of expectations after the November 2024 cybersecurity incident; tissue processing backlog expected to clear by end of Q3 2025.

• Net cash used in operating activities was $17.0 million, with cash and cash equivalents at $37.7 million at quarter-end.

Financial highlights

• Q1 2025 total revenue was $99 million, up 4% year-over-year on a constant currency basis; adjusted EBITDA was $17.5 million, with a margin of 17.7%.

• Product revenue grew 11% year-over-year, with stent grafts up 19%, On-X up 11%, and BioGlue up 9%; preservation services revenue declined 23%.

• Gross margin was 64.2% (GAAP), down from 64.6% in Q1 2024; gross margin dollars were $63.6 million.

• Q1 included $4.7 million in cyber incident costs, excluded from adjusted EBITDA.

• Free cash flow was negative $20.6 million for the quarter.

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 $107.5–$109.5 million, about 13% constant currency growth.

• Tissue backlog expected to be fully resolved by end of Q3; AMDS sales to grow sequentially each quarter.

• Expect to be free cash flow positive for FY25; no changes to FX assumptions due to ongoing volatility.