Vericel's Strong Financial Growth: Q2 2025 Highlights
Vericel Corporation Reports Impressive Financial Results
Total Revenue Surges to $63.2 Million with 20% Growth
Gross Margin Improves Significantly, Reaching 74%
Adjusted EBITDA Jumps by 112% to $13.4 Million
FDA Clearance Received for MACI Ankle Clinical Study
Vericel Corporation (NASDAQ:VCEL), a prominent player in the field of advanced therapies in sports medicine and severe burn care, unveiled its financial outcomes and pivotal business achievements during the recent quarter. The report highlights a remarkable revenue increase, reflecting the company’s continued commitment to innovation and patient care.
Key Financial Highlights for Q2 2025
For the quarter concluded, Vericel showcased the following remarkable figures:
- Total net revenue skyrocketed to $63.2 million.
- Revenue from MACI (autologous cultured chondrocytes on porcine collagen membrane) surged by 21% to $53.5 million.
- Burn Care revenue was reported at $9.8 million, which included $8.6 million from Epicel and $1.2 million from NexoBrid.
- Gross profit reached $46.6 million, achieving a gross margin of 74%—an increase of over 400 basis points compared to the previous year.
- Despite a net loss of $0.6 million, or $0.01 per diluted share, the performance reflects a significant improvement year-over-year.
- Non-GAAP adjusted EBITDA grew significantly by 112% to $13.4 million, with the adjusted EBITDA margin expanding over 900 basis points to 21%.
- Operating cash flow stood at $8.2 million as the company demonstrated fiscal strength.
- As of the reporting date, Vericel maintained approximately $164 million in cash and investments with no outstanding debt.
Exciting Business Developments
During this quarter, Vericel achieved notable milestones, including:
- A record-setting total revenue and MACI revenue that stood out since the product's launch.
- The second highest volume of MACI biopsies in a quarter was recorded, with April boasting the highest number of biopsies in a single month.
- To date, around 600 MACI Arthro surgeons have been trained, indicating a robust training program.
- MACI implants aimed at small femoral condyle defects saw an increase of over 40% compared to the previous year in Q2.
- Sales force expansion plans took full swing into the second half of 2025, anticipating growth following the MACI Arthro launch.
- Epicel biopsy volumes reached record levels, achieving a 38% growth against the previous year, especially in June.
- NexoBrid’s revenue for the second quarter increased by a noteworthy 52% compared to last year, with the highest order volume recorded for hospital units.
- Additionally, FDA granted IND clearance for the MACI Ankle clinical study, and preparations are underway to initiate the study in the upcoming months.
“Our achievements this quarter underscore the effective execution of our strategy, leading to substantial revenue growth and improved profitability margins,” commented Nick Colangelo, President and CEO of Vericel Corporation. “With the increasing strength of our MACI Arthro launch, we anticipate ongoing revenue growth and profitability as we look ahead.”
2025 Financial Guidance
Looking forward, Vericel remains optimistic about its financial outlook:
- The company reaffirmed its low 20% revenue growth forecast for MACI for the entire year.
- Burn Care revenue guidance was updated to align with a projected run rate of approximately $10 million per quarter for the second half of the year.
- The forecast maintains guidance of a gross margin of 74% and an adjusted EBITDA margin of 26% for the year.
Vericel's financial momentum and ramped-up training efforts for surgeons indicate a strong continuation of growth and innovation in the medical sector, showcasing the importance of advanced therapies in patient recovery.
Frequently Asked Questions
What were Vericel’s total revenues for Q2 2025?
Vericel reported total revenues of $63.2 million for the second quarter of 2025.
How much did MACI’s revenue grow in Q2 2025?
The revenue from MACI experienced a growth of 21%, reaching $53.5 million.
What is the status of Vericel’s clinical studies?
Vericel received FDA clearance for its MACI Ankle clinical study, set to commence in the latter half of 2025.
What is Vericel's outlook for the year?
The company anticipates low 20% revenue growth for MACI, along with stable Burn Care revenue projections.
Who is the current CEO of Vericel?
Nick Colangelo serves as the President and CEO of Vericel Corporation.
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