Q2 FY2026
Filed Aug 4, 2026Q2 2026 sales were $70.4mm, up 10% versus Q2 2025, while gross margin expanded 210 bps to 72.1%, operating income increased 26% to $20.4mm, and EPS increased 23% to $0.74.
The company reported double-digit sales and organic growth, broad product and geographic records, gross-margin expansion, and faster operating-income and EPS growth. Full-year guidance calls for $274.3mm - $278.3mm of sales and $75.3mm - $78.2mm of operating income.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $70,382 (amounts in thousands) | – | +10% |
| Net salesGAAP | $136,933 (amounts in thousands) | – | – |
| Organic sales growthnon-GAAP | +10% organic | – | +10% organic |
| Gross profitGAAP | $50,764 (amounts in thousands) | – | – |
| Gross profitGAAP | $99,160 (amounts in thousands) | – | – |
| Gross marginGAAP | 72.1% | – | +210 bps |
| Cost of salesGAAP | $19,618 (amounts in thousands) | – | – |
| Cost of salesGAAP | $37,773 (amounts in thousands) | – | – |
| Sales and marketing expenseGAAP | $14,408 (amounts in thousands) | – | – |
| Sales and marketing expenseGAAP | $28,923 (amounts in thousands) | – | – |
| General and administrative expenseGAAP | $11,110 (amounts in thousands) | – | – |
| General and administrative expenseGAAP | $23,156 (amounts in thousands) | – | – |
| Research and development expenseGAAP | $4,847 (amounts in thousands) | – | – |
| Research and development expenseGAAP | $8,907 (amounts in thousands) | – | – |
| Total operating expensesGAAP | $30,365 (amounts in thousands) | – | – |
| Total operating expensesGAAP | $60,986 (amounts in thousands) | – | – |
| Income from operationsGAAP | $20,399 (amounts in thousands) | – | +26% |
| Income from operationsGAAP | $38,174 (amounts in thousands) | – | – |
| Operating marginGAAP | 29% | – | – |
| Investment incomeGAAP | $3,386 (amounts in thousands) | – | – |
| Investment incomeGAAP | $6,710 (amounts in thousands) | – | – |
| Interest expenseGAAP | $(1,302) (amounts in thousands) | – | – |
| Interest expenseGAAP | $(2,602) (amounts in thousands) | – | – |
| Other income (loss), netGAAP | $(294) (amounts in thousands) | – | – |
| Other income (loss), netGAAP | $(421) (amounts in thousands) | – | – |
| Income before income taxesGAAP | $22,189 (amounts in thousands) | – | – |
| Income before income taxesGAAP | $41,861 (amounts in thousands) | – | – |
| Provision for income taxesGAAP | $5,139 (amounts in thousands) | – | – |
| Provision for income taxesGAAP | $9,132 (amounts in thousands) | – | – |
| Net incomeGAAP | $17,050 (amounts in thousands) | – | – |
| Net incomeGAAP | $32,729 (amounts in thousands) | – | – |
| EPSGAAP | $0.74 | – | +23% |
| Basic earnings per share of common stockGAAP | $0.75 | – | – |
Q3 2026, Q4 2026 and Full Year outlook
- RevenueQ3 2026 Sales $66.3mm - $68.3mm (Mid $67.3mm, +10%, +11% org.); Q4 2026 Sales $71.1mm - $73.1mm (Mid $72.1mm, +12%, +12% org.); Full Year Sales $274.3mm - $278.3mm (Mid $276.3mm, +11%, +11% org.)
- Gross marginQ3 2026 72.2%; Q4 2026 72.6%; Full Year 72.4%
- NoteQ3 2026 Op. Income $17.3mm - $18.8mm (Mid $18.1mm, -11%, +7% adj.); Op. Margin (Mid) 27%; EPS $0.66 - $0.71 (Mid $0.69, -9%, +11% adj.)
- NoteQ4 2026 Op. Income $19.8mm - $21.2mm (Mid $20.5mm, +9%); Op. Margin (Mid) 29%; EPS $0.75 - $0.81 (Mid $0.78, +15%)
- NoteFull Year Op. Income $75.3mm - $78.2mm (Mid $76.8mm, +13%, +19% adj.); Op. Margin (Mid) 28%; EPS $2.84 - $2.94 (Mid $2.89, +15%, +21% adj.)
Capital returns
- Quarterly dividend of $0.25/share of common stock, approved July 28, 2026, payable September 3, 2026 to stockholders of record on August 20, 2026.
- The Board authorized the repurchase of up to $100.0mm of common stock on February 19, 2026. The program will conclude on February 18, 2027, unless extended by the Board.
What drove it
- Artegraft sales increased 34% in the quarter.
- Grafts increased 23%, carotid shunts increased 18%, and patches increased 4%; each posted records.
- EMEA increased 18%, APAC increased 18%, and the Americas increased 5%; each posted records.
- Q2 organic growth was 12% excluding catheters.
- Gross margin increased due to higher prices, mix shift, and operational efficiencies.
- Operating income benefited from headcount restraint: 660 at 6/30/2026 versus 658 at 6/30/2025.
- Artegraft was approved in 56 countries and accounted for 21% of sales.
Concerns
- Catheters were down 11% in the quarter due to recall-driven overstocking in Q2 2025.
- Q3 2025 results included a non-recurring benefit from the Employee Retention Tax Credit, affecting the reported Q3 2026 operating-income and EPS growth comparisons.
- Research and development expense was $4,847 (amounts in thousands) in Q2 2026, compared with $3,541 (amounts in thousands) in Q2 2025.
What to watch
- Execution of the Artegraft international launch, including sales in the 56 approved countries.
- Progress in building the sales force, moving to direct sales in new countries, and six international warehouse expansions.
- Whether higher prices, favorable mix shift, and operational efficiencies sustain the guided gross margins of 72.2%, 72.6%, and 72.4%.
- Catheter sales following the Q2 2025 recall-driven overstocking comparison.
- Delivery against Q3 2026 sales guidance of $66.3mm - $68.3mm and operating-income guidance of $17.3mm - $18.8mm.
Balance sheet and cash flow
- Cash and cash equivalents were $ 26,625 (amounts in thousands) at June 30, 2026, compared with $ 28,244 (amounts in thousands) at December 31, 2025.
- Short-term marketable securities were 349,615 (amounts in thousands) at June 30, 2026, compared with 330,876 (amounts in thousands) at December 31, 2025.
- Cash was up $9.0mm sequentially to $376.2mm.
- Convertible senior notes, net were 169,091 (amounts in thousands) at June 30, 2026, compared with 168,645 (amounts in thousands) at December 31, 2025.
- Total assets were $ 640,549 (amounts in thousands) at June 30, 2026, compared with $ 615,690 (amounts in thousands) at December 31, 2025.
- Total liabilities were 220,207 (amounts in thousands) at June 30, 2026, compared with 222,174 (amounts in thousands) at December 31, 2025.
Analysis
LeMaitre reported a strong Q2 2026. Sales were $70.4mm, up 10% versus Q2 2025, with organic growth also 10%. Growth was broad across grafts, carotid shunts, patches, EMEA, APAC, and the Americas. Artegraft was the principal product driver, with sales up 34%, while the company stated that the product accounted for 21% of sales and was approved in 56 countries. Excluding catheters, Q2 organic growth was 12%.
Profitability improved faster than sales. Gross margin reached 72.1%, up 210 bps, driven by higher prices, mix shift, and operational efficiencies. Income from operations rose 26% to $20.4mm and operating margin was 29%. The company also cited headcount restraint, with headcount at 660 at 6/30/2026 versus 658 at 6/30/2025. EPS was $0.74, up 23%.
The operating-expense mix was uneven. Sales and marketing expense was $14,408 (amounts in thousands), below $14,895 (amounts in thousands) in Q2 2025, while general and administrative expense and research and development expense increased. Catheters declined 11%, which the company attributed to recall-driven overstocking in Q2 2025. This remains the principal disclosed product-area offset to otherwise broad growth.
Liquidity was substantial, with cash up $9.0mm sequentially to $376.2mm. The balance sheet reported $ 26,625 (amounts in thousands) of cash and cash equivalents and 349,615 (amounts in thousands) of short-term marketable securities at June 30, 2026. Convertible senior notes, net were 169,091 (amounts in thousands). Capital allocation included a $0.25/share quarterly dividend and an authorization to repurchase up to $100.0mm of common stock.
Guidance calls for continued double-digit sales growth in Q3, Q4, and the full year. Full-year sales guidance is $274.3mm - $278.3mm, gross margin guidance is 72.4%, and operating-income guidance is $75.3mm - $78.2mm. The Q3 outlook includes year-over-year declines at the operating-income and EPS midpoints on a GAAP comparison because Q3 2025 included a non-recurring Employee Retention Tax Credit benefit; adjusted guidance shows growth of 7% for operating income and 11% for EPS at the midpoint.
Management, verbatim
Our focus on the Artegraft international launch paid off in Q2. The product is now approved in 56 countries, accounting for 21% of sales. So our largest product is now our fastest-growing product. To underpin the Artegraft launch and pave the way for RFA, we continue to build our sales force, go direct in new countries and we’re now undertaking six international warehouse expansions. $376m of cash provides strategic optionality.
George LeMaitre, Chairman/CEO
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Dollar revenue by product category and geography was not reported.
- Quarterly operating cash flow and free cash flow were not provided.
- Q2 2026 diluted EPS, weighted-average diluted shares, and six-month EPS information were not available in the supplied filing text because the statement of operations was truncated after the basic EPS line.
- Non-GAAP adjusted actual operating income, adjusted EPS, and their reconciliations were not included in the supplied filing text.
- Guidance for operating expenses and tax rate was not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.