CRMT’s Q2 Performance and Strategic Path to Recovery

Carmat (CRMT)’s Q2 2025 financial results underscore a paradox: robust top-line growth juxtaposed with deepening profitability challenges. Revenue surged 145.79% year-over-year to €7.00 million, driven by demand for its advanced biotherapies and artificial heart technologies [1]. Yet, the company’s EBITDA margin contracted to -27.58%, reflecting operational and capital-intensive hurdles [2]. This divergence highlights the critical role of capital constraints and operational efficiency as catalysts for near-term recovery.

Capital Constraints: A Double-Edged Sword

Carmat’s CAPEX-to-EBITDA ratio of -3.09% in Q2 2025 reveals ongoing struggles to align investment with earnings [2]. While the company’s stock has delivered 88.18% total returns year-to-date, outperforming the CAC 40, its financials suggest a reliance on external capital to sustain growth. This dynamic is not uncommon in healthtech, where R&D and regulatory costs weigh heavily on short-term profitability. However, Carmat’s ability to navigate these constraints will determine whether its revenue momentum translates into sustainable value creation.

Operational Efficiency: A Hidden Lever

Operational metrics offer a glimmer of hope. Days Sales Outstanding (DSO) fell to 62 days in Q2 2025, down six days year-over-year, signaling improved working capital management [1]. This efficiency gain—though modest—could free up liquidity to reinvest in high-impact initiatives. For context, a DSO of 62 days remains above the 30-day benchmark for optimal performance, but the downward trend suggests progress [1]. If Carmat can further reduce DSO while scaling production, it may unlock critical cash flow to offset capital demands.

Strategic Pathways: Aligning with Industry Trends

While Carmat has not explicitly outlined 2023–2025 strategies in its disclosures, broader industry trends and national healthtech priorities provide clues. France’s Panorama Healthtech 2023 initiative emphasizes domestic biotherapy development and real-world efficiency monitoring—areas where Carmat is actively engaged [3]. By aligning with these goals, the company may access government support and streamline regulatory pathways, reducing capital outlays.

Moreover, innovations in the artificial heart market—such as wireless energy transfer and AI-enabled monitoring—could bolster Carmat’s operational efficiency. The global artificial heart market is projected to grow at a 13.9% CAGR, reaching $6.2 billion by 2030, driven by advancements that enhance device safety and patient outcomes [4]. Carmat’s focus on durable left ventricular assist devices (dLVADs) positions it to benefit from this growth, provided it can scale production without sacrificing margins.

The Road Ahead

Carmat’s recovery hinges on two levers: tightening capital allocation and accelerating operational efficiency. The company must balance R&D investments with cost discipline, leveraging government partnerships and industry innovations to reduce reliance on external financing. Meanwhile, continued DSO improvements and scalable production processes could transform its cash flow profile.

For investors, the key question is whether Carmat can sustain its revenue growth while addressing profitability headwinds. The artificial heart market’s expansion offers a tailwind, but execution—particularly in managing capital and operations—will define Carmat’s trajectory.

Source:
[1] Financial Scores & Performance Indicators of Carmat SA, [https://stockinvest.us/financials/ALCAR.PA]
[2] CARMAT: Financial Data Forecasts Estimates and ...,
https://www.marketscreener.com/quote/stock/CARMAT-6379853/finances/
[3] Panorama France Healthtech 2023, [https://www.calameo.com/books/00659705219d7561cc221]
[4] Artificial Heart Market Size ($6.2 Billion) 2030, [https://www.strategicmarketresearch.com/market-report/artificial-heart-market]