Artivion (AORT) Q4 2024 earnings summary

Executive summary

• Achieved 10% constant currency revenue growth and 32% adjusted EBITDA growth for 2024, overcoming a significant November cybersecurity incident that temporarily disrupted Q4 operations but is not expected to impact full-year 2025 results.

• FDA granted HDE approval for AMDS Hybrid Prosthesis, with PMA approval now expected mid-2026 due to new FDA testing requirements; regulatory progress for BioGlue in China and positive clinical data for AMDS and mechanical valves.

• Free cash flow for FY 2024 was $11.0M, with year-end cash at $53.5M and net leverage at 3.8, targeted to fall below 2.0x after convertible debt conversion in 2025.

• Net loss narrowed to $13.4M for 2024 from $30.7M in 2023, with adjusted diluted EPS improving to $0.25.

• Operations have normalized post-cyber incident, and insurance reimbursement is being sought for related costs.

Financial highlights

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

• Full-year 2024 revenue reached $388.5M, up 10% in constant currency; adjusted EBITDA was $71.3M, up 32% year-over-year.

• Q4 gross margin was 63–63.2%, affected by a 2-point idle plant charge; FY 2024 gross margin was 64.0%.

• Free cash flow for FY 2024 was $11.0M; year-end cash and equivalents were $53.5M.

• Cyber incident negatively impacted Q4 revenue by $4.5M and adjusted EBITDA by $2M.

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 basis points of 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 was 7% of sales in 2024, expected to rise to 8% in 2025.