Vericel 2025 Q2 Earnings Misses Targets as Net Income Improves 88.2%

Vericel (VCEL) reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. Vericel's performance for Q2 2025 showed a mixed outlook. The company reported a net loss of $0.01 per share, which was better than the Zacks Consensus Estimate of a $0.04 loss per share. However, the revenue of $63.24 million fell short of expectations, leading to a 7% tumble in the stock price. Vericel maintained its revenue growth guidance in the low 20% range and reaffirmed profitability targets.

Revenue

Vericel's revenue for Q2 2025 saw an increase of 20.1% to $63.24 million compared to the same quarter in the previous year. The company attributed this growth primarily to its MACI product, which generated $53.5 million, marking a 21% increase. Additionally, Burn Care revenue totaled $9.8 million, with Epicel contributing $8.6 million and NexoBrid adding $1.2 million.

Earnings/Net Income

Vericel narrowed its losses to $0.01 per share in Q2 2025, a significant improvement from a $0.10 loss per share in Q2 2024. The company also reduced its net loss by 88.2%, reporting a net loss of $553,000 compared to $4.68 million in the previous year. Despite ongoing financial challenges, the EPS results were a positive development.

Price Action

The stock price of Vericel has dropped 5.52% during the latest trading day, has tumbled 12.03% during the most recent full trading week, and has plummeted 17.88% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Vericel (VCEL) shares after a revenue increase on the earnings report release date, followed by a 30-day holding period, has yielded strong returns over the past three years. This approach delivered a 105.60% return, significantly outperforming the benchmark's 85.57% return, indicating a robust ability to leverage positive earnings momentum. The strategy's compound annual growth rate (CAGR) was 15.63%, showcasing consistent performance. Despite a maximum drawdown of 0.00%, the strategy exhibited high volatility at 55.29% and a Sharpe ratio of 0.28, highlighting that while losses were minimized, considerable risk was undertaken for potential returns.

CEO Commentary

Dominick C. Colangelo, CEO, President & Director, commented, "The company delivered solid financial and business results in the second quarter with significant revenue growth and margin expansion. Total revenue increased 20% in the quarter. MACI generated record second quarter revenue of nearly $54 million, representing 21% growth versus the prior year. We believe that having the entire expanded sales force in place this year will help support our significant fourth quarter volume. We are well positioned to continue to deliver a unique combination of sustained high revenue and profitability growth in the second half of this year and the years ahead."

Guidance

Vericel maintains MACI full-year revenue growth in the low 20% range, with third-quarter revenue expected at approximately $54 million to $55 million. For Burn Care, the company updates guidance to approximately $10 million per quarter in the second half, consistent with recent run rates. Profitability guidance reaffirms a gross margin of 74% and an adjusted EBITDA margin of 26%, including operating expenses related to the MACI sales force expansion.

Additional News

In recent weeks, Vericel has not announced any major mergers and acquisitions or changes in its C-level executive team. The company has been focused on advancing its clinical programs and expanding its market presence. Vericel received FDA IND clearance for its MACI Ankle clinical study, which marks a significant step forward in its product development efforts. The company also highlighted the training of approximately 600 MACI Arthro surgeons, enhancing its operational capabilities. Additionally, Vericel participated in the Truist Securities MedTech Conference, offering insights into its strategic direction and innovations in the medical technology sector.