Artivion (AORT) Q4 2024 earnings summary

Executive summary

• Achieved 10% constant currency revenue growth and 32% adjusted EBITDA growth for 2024, with margin expansion of 310 basis points.

• Managed a significant cybersecurity incident in Q4 2024, which temporarily disrupted operations and negatively impacted Q4 revenue by $4.5M and adjusted EBITDA by $2M, but operations have normalized and no impact is expected for full-year 2025.

• Advanced key clinical and regulatory milestones, including U.S. HDE approval for AMDS Hybrid Prosthesis and regulatory progress for BioGlue in China.

• Net loss narrowed to $13.4M for 2024 from $30.7M in 2023; adjusted diluted EPS improved to $0.25 from $0.20.

• Achieved positive free cash flow of $11.0M for the year and operating cash flow of $22.2M.

Financial highlights

• Q4 2024 revenues were $97.3M, up 3–4% year-over-year; adjusted EBITDA rose 15% to $17.6M, with an 18% margin.

• Full-year 2024 revenues reached $388.5M, up 10% constant currency; adjusted EBITDA margin improved to 18%.

• Gross margin for Q4 was 63.2%, down from 65.2% year-over-year due to idle plant charges from the cyber event.

• Free cash flow for FY 2024 was $11.0M; year-end cash was $53.5M, with net debt of $314.3M.

• FY 2024 net loss narrowed to $13.4M; non-GAAP net income was $10.8M.

Outlook and guidance

• 2025 constant currency revenue growth expected between 10–14%, or $420M–$435M, with a 2% FX headwind.

• Adjusted EBITDA guidance for 2025 is $84M–$91M, representing 18–28% growth and 200 bps margin expansion.

• Free cash flow positive expected for FY 2025; net debt leverage targeted below 2.0x.

• Q1 2025 revenue forecasted at $94M–$96M due to lingering cyber incident effects, with catch-up expected over the year.

• R&D expense to rise to ~8% of sales in 2025.