Vericel's Q2 2025: Unpacking Contradictions in MACI Arthro Growth, Conversion Rates, and Margin Targets

MACI Arthro impact on growth, conversion rate trends, MACI Arthro biopsy growth and conversion, MACI Ankle trial initiation timeline, and gross margin targets are the key contradictions discussed in Vericel Corporation's latest 2025Q2 earnings call.



MACI Growth and Arthro Impact:
- Vericel's MACI product generated record second quarter revenue of nearly $54 million, representing 21% growth versus the prior year and 15% sequential growth.
- MACI's growth was driven by an increase in MACI Arthro trained surgeons, which are now at approximately 600, and a 40% increase in small femoral condyle defects treated in the second quarter.

Burn Care Recovery and Performance:
- Epicel performance rebounded in the second quarter, with biopsies increasing nearly 40% over the prior year and revenue reaching $8.6 million.
- Improved performance was attributed to a substantial increase in biopsies and grafts, as well as a strong July graft volume.

Financial and Profitability Performance:
- Vericel's total revenue increased 20% in the quarter, with a gross margin expansion of more than 400 basis points to 74%.
- This growth was supported by strong operating cash flow of $8.2 million and a narrowing of the net loss to $0.6 million.

Guidance and Expectations for 2025:
- Vericel maintained its MACI full year revenue growth guidance in the low 20% range, and updated Burn Care guidance to $10 million per quarter for the second half of the year.
- The company emphasized strong underlying trends for MACI Arthro and Epicel, positioning them for a strong second half of 2025.