$AORT earnings report

Artivion delivered third-quarter revenue of $123,790, up 9% on both a GAAP basis and a non-GAAP constant currency basis. Product revenue was $98,160 and grew 12% on a constant currency basis, while preservation services revenue was $25,630 and was flat on a constant currency basis. On-X revenue was $30,317 and grew 13% on a constant currency basis, and aortic stent graft revenue was $44,278 and grew 12% on a constant currency basis. The company attributed growth to continued portfolio execution, with management also citing increased U.S. AMDS implants from the second quarter.

Profitability weakened despite revenue growth. Gross margin was $75,977, compared with $74,395, while general, administrative, and marketing expense rose to $63,222 from $57,281 and research and development expense rose to $9,808 from $8,078. Operating income declined to $2,947 from $12,536. The company reported a GAAP net loss of $(7,926), compared with net income of $6,502, and adjusted net income declined to $3,808 from $7,942. Adjusted EBITDA declined 8% to $22,492 from $24,567.

Cash conversion and balance-sheet changes deserve attention. Third-quarter net cash flows used in operating activities were $(4,556), capital expenditures were $(13,013), and free cash flows were $(17,569). For the first nine months, operating cash flow was $(4,668), capital expenditures were $(31,764), and free cash flows were $(36,432). Cash and cash equivalents were $48,399 at September 30, 2026, versus $64,908 at December 31, 2025, while long-term debt, net was $363,787 versus $215,114. The nine-month cash-flow statement includes $(116,661) for acquisition of Endospan, net of cash acquired, and $148,875 of net proceeds from issuance of long-term debt.

Management narrowed full-year 2026 revenue guidance to $484 to $492 million, representing growth of 8% to 10% on an adjusted constant currency basis compared with 2025 adjusted revenue, from the previous $480 to $496 million range. It narrowed adjusted EBITDA guidance to $93 to $98 million from $92 to $99 million. Guidance retains an expectation for currency to represent an approximate one percentage point full-year tailwind and includes approximately $8 million of full-year Endospan-related expense. Operational milestones to monitor are NEXUS launch preparation for January 2027, AMDS adoption, On-X supply, and ARTIZEN enrollment for ARCEVO LSA.

Artivion reported second-quarter 2026 revenue of $125.8 million, compared with $113.0 million in the second quarter of 2025. Revenue increased 11% on a GAAP basis and 9% on a non-GAAP constant currency basis. Management identified On-X and stent grafts, including AMDS, as the primary growth drivers, with constant currency growth of 18% and 12%, respectively.

Profitability was mixed. Adjusted EBITDA increased 7% to $26.4 million from $24.8 million in the second quarter of 2025. However, the company reported a GAAP net loss of $(13.5) million, or $(0.28) per fully diluted common share, compared with net income of $1.3 million, or $0.03 per fully diluted common share, a year earlier. Non-GAAP net income was $6.3 million, or $0.13 per fully diluted common share, versus $10.7 million, or $0.24 per fully diluted common share, in the prior-year quarter. The reported non-GAAP net income includes pretax losses related to foreign currency revaluation of $0.7 million.

The quarter included two portfolio milestones: completion of the Endospan Ltd. acquisition and U.S. FDA PMA approval for the AMDS Hybrid Prosthesis. Management stated that NEXUS, AMDS and ARCEVO LSA form a three-pronged aortic arch portfolio and that NEXUS supports three additional PMA programs in development. The company also reported a return to growth across all international geographies and stated that ARTIZEN was enrolling as expected.

Artivion reiterated full-year 2026 revenue guidance of $480 to $496 million, representing adjusted constant currency growth of 7% to 11% compared to 2025 adjusted revenue. The outlook continues to assume currency will be an approximate one percentage point tailwind for the full year. Adjusted EBITDA guidance was also reiterated at $92 to $99 million and includes approximately $8 million of expense through the full year 2026 associated with the Endospan acquisition.

The central reported tension is between continued top-line and adjusted EBITDA growth and the deterioration in both GAAP and non-GAAP earnings compared with the second quarter of 2025. Attention is focused on whether product-led growth in On-X and stent grafts, the AMDS approval, and Endospan integration support delivery of the reiterated full-year revenue and adjusted EBITDA ranges while absorbing the stated acquisition-related expense.