Haemonetics’ Plasma Growth Guidance, Vascular Outlook Clash in 2027 Q1 Earnings Call

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Date of Call: Aug 6, 2026

Financials Results

• Revenue: $339 million, increasing 6% reported and organic year-over-year
• EPS: $1.14 per diluted share, increased 4% year-over-year
• Gross Margin: 60.4%, down 40 basis points year-over-year (prior year benefited by ~200 bps from software license revenue)
• Operating Margin: 23.4%, down 70 basis points year-over-year and down 100 basis points sequentially

Guidance:

• Full-year reported revenue growth guidance raised to 5% to 8% from prior range.
• Full-year organic growth guidance raised to 4% to 7% from prior range.
• Apheresis revenue growth guidance raised to low to mid single-digit growth.
• Adjusted operating margin expansion of 50 to 100 basis points expected for fiscal 2027.
• Adjusted diluted EPS expected to grow broadly in line with increased reported revenue growth guidance.
• Free cash flow conversion guidance reaffirmed at approximately 80% of adjusted net income.

Business Commentary:

Revenue and Earnings Growth:

• Humanetics reported first quarter fiscal 2027 revenue of $339 million, with 6% reported and organic growth year-on-year. Adjusted earnings per diluted share increased 4% to $1.14.
• Growth was driven by investments to enhance their portfolio, improve operating models, and strengthen commercial execution.

MedSurge Revenue and Performance:

• MedSurge revenue increased 6% year-over-year to $148 million, with growth across both franchises. Hemostasis management showed mid-teens disposable growth, and vascular closure grew in the low double digits.
• This was attributed to higher utilization across the installed base, share gains, and improved market fundamentals.

Apheresis and Plasma Revenue Growth:

• Apheresis revenue grew 5% reported and 6% organic to $191 million. Plasma revenue grew 8% organically, with double-digit growth in disposables globally.
• Growth was supported by share gains, strong plasma collection trends, and the rollout of Persona Plus, which provided economic benefits to customers.

Operating Margin and Cost Management:

• First quarter gross margin was 60.4%, down 40 basis points from the prior year, but adjusted gross margin expanded excluding a prior-year software benefit.
• Sequential margin decline was primarily due to lower med-surg revenue and external cost pressures, but they expect margin expansion through revenue growth and favorable mix.

Cash Flow and Financial Flexibility:

• Operating cash flow was $52 million, three times the prior year period, and free cash flow conversion reached 75% of adjusted net income.
• Strong cash generation allowed for debt paydown and provides financial flexibility for strategic investments and opportunistic share buybacks.

Sentiment Analysis:

Overall Tone: Positive

• "We start at FY27 strong, with broad-based execution driving another quarter of profitable growth." "Strong earnings once again translated into strong cash generation... free cash flow conversion reached 106%..." "We are raising our fiscal 2027 guidance..." "Our outlook incorporates sustained external cost pressure, which we expect to more than offset through revenue growth..." "We remain confident in delivering..."

Q&A:

• Question from Anthony Petrone (Mizuho Financial Group): To what extent have you recaptured previously lost accounts in IVT? What is the underlying attach rate to pulse field ablation for VASC-8? Also, to what extent was the strong plasma quarter driven by Persona Plus versus share gains and market dynamics?
  Response: IVT growth driven by vascular closure low double-digit growth, due to market stabilization, stronger commercial execution, and XL label expansion. Plasma outperformance (8% organic) driven by share gains, strong collections, and early Persona Plus yield improvements (>5%), though guidance remains conservative.

• Question from Alan Gong (JP Morgan): How should we think about the progression of gross margins for the rest of the year?
  Response: Q1 margin impacted by lapping prior year software benefit; sequential decline due to lower MedSurg revenue. Expect margin expansion through revenue growth, favorable mix, and Persona Plus pricing, with tariff refunds partially offset by other cost pressures.

• Question from Marie Thibault (U.S. Bancorp, BTIG): What is the timing of the Persona Plus rollout? Update on underlying plasma volume growth assumption in guidance.
  Response: Persona Plus rollout is ahead of schedule; adoption is rapid but forecast only includes contracted commitments. Underlying plasma volume growth assumption unchanged at 0% to 2% for guidance; upside exists from share gains and faster adoption.

• Question from David Rescott (Barrett): Can you unpack the plasma results, especially the impact of restatements and Persona Plus? What are the longer-term views on U.S. plasma collection and international expansion?
  Response: Plasma guidance raised to low-to-mid single digits; strong performance driven by North American disposables (mid-20% growth) from share gains, demand, and Persona Plus. Long-term outlook remains attractive due to global IG demand; expansion in Europe and Middle East is a key opportunity.

• Question from Andrew Cooper (Raymond James): What would it take to guide to more durable mid-single-digit collection growth? Update on regulatory launches (Excel in Japan, PerQCL).
  Response: Prefers prudent guidance focused on controllable factors (share gains, Persona Plus); would consider higher collections if volumes remain robust. Excel heparinase neutralization paperwork submitted to Japan, expected later this fiscal year; PerQCL in FDA dialogue, benefit not yet included.

• Question from Michael Petoskey (Barrington Research): What drove operating margin expansion in Med-Surg? How much has pricing flexibility helped in IVT recovery?
  Response: Med-Surg margin expansion predominantly from BMT; IVT recovery driven by market stabilization, sales execution, pricing flexibility, and clinical evidence. Expect momentum to build.

• Question from Joe Inwich (Citi): Where are we in the rollout of heparinase neutralized cartridge and pipeline for BMT? Any updated views on M&A?
  Response: BMT growth durable; heparinase neutralization driving higher utilization and revenue per device. Focus on organic growth (upcoming launches) and capital allocation (debt paydown, share buybacks); M&A not currently a priority.

• Question from Travis Deed (B of A): How does the new board member Martin Medeiros contribute to strategic value creation?
  Response: Adds strategic and operating experience to strengthen board capabilities, focusing on execution, stabilization, and long-term value creation.

• Question from Mike Matchin (Needham & Company): Any commentary on hospital capital equipment budgets or hesitancy? Impact of strong cash flow on share buybacks?
  Response: No capital budget pressures seen in IVT; TAG capital placements still below $50k threshold. Strong cash flow allows balanced capital allocation (debt paydown, buybacks); $200M revolver remaining.

Contradiction Point 1

Plasma Market Growth Assumption and Underlying Collection Volume

Guidance for FY2027 plasma volume growth shifts from a strict 0-2% assumption to incorporating upside from Q1 outperformance, reflecting a change in forecasting discipline.

Anthony Petrone (Mizuho Financial Group) - Anthony Petrone (Mizuho Financial Group)

2027Q1: The guidance increase to low-to-mid single-digit growth reflects this outperformance while remaining disciplined... The underlying plasma market assumption for FY27 remains 0-2% volume growth. - James Durecka(CFO)

To what extent was the Q1 plasma outperformance driven by Persona Plus upgrades versus incremental share gains, and is the $153M from CSL completely out now? - Andrew Cooper (Raymond James)

2026Q4: The FY 2027 guide is based on... with 0%-2% collection volume growth assumed. - Christopher Simon(CEO)

Contradiction Point 2

Regulatory Approval Timeline for VASCADE XL

Contradiction in the expected timeline for obtaining key regulatory approvals, impacting product launch readiness and market entry strategy.

Andrew Cooper (Raymond James) - Andrew Cooper (Raymond James)

2027Q1: The U.S. label [for VASCADE XL] is expected later this fiscal year. - Chris Simon(CEO)

Okay, let's tackle this. The user wants me to rewrite the input into one concise earnings-call question. The input is: "What is the update on regulatory approvals (e.g., Excel label in Japan) and new product launches (e.g., Percocet Elite)?" First, I need to make sure I follow all the rules. The output must be exactly one line, only the final question text, end with a question mark if possible. No explanations or meta text. If it's not a question or too vague, output as-is.The original input is a question, so I can rewrite it. The key points are regulatory approvals (specific example given) and new product launches (another example). The user wants it concise. Maybe combine the two parts into a single question without the examples? But the examples add specificity. However, the user might want it even more concise. Let me check.Original has two parts: regulatory approvals with an example, and new product launches with another example. The rewritten question should include both aspects but maybe shorten the examples or use more general terms. For instance, instead of "Excel label in Japan," maybe just "regulatory approvals in key markets" and "new product launches like Percocet Elite." But the user wants it as concise as possible. Maybe "What updates are there on regulatory approvals and new product launches?" But that's too vague. The examples are important for clarity. The challenge is to keep it concise but still specific enough.Alternatively, "Can you provide updates on recent regulatory approvals and new product launches?" But the original mentions specific examples. The user might want those examples included but shortened. The original uses "e.g.," so maybe keep one example for each part. But the user wants one line. Let me try: "What is the update on regulatory approvals (e.g., Excel label in Japan) and new product launches (e.g., Percocet Elite)?" Wait, that's the original input. The user wants a rewrite. Maybe combine the examples into a single parenthetical? Not sure. Maybe "What updates are there on regulatory approvals and new product launches, such as Excel label in Japan and Percocet Elite?" But that's longer. Alternatively, "What updates are there on regulatory approvals and new product launches?" without the examples. But that might be too vague. The original input has specific examples, so removing them might make the question less clear. However, the user wants it concise. The instructions say to form a clear earnings-call question. So perhaps the examples are necessary for clarity but need to be abbreviated. Maybe "What updates are there on regulatory approvals (e.g., Japan) and new product launches (e.g., Percocet Elite)?" But the original says "Excel label in Japan." Maybe "Excel approval in Japan" is more concise. Let me check the original: "Excel label in Japan" – perhaps that's a specific regulatory approval. So "regulatory approvals (e.g., Excel label in Japan)" is specific. The user might want to keep that. The original input is already a question. The task is to rewrite it into a concise version. Maybe the original is already concise enough, but the user wants it even more so. Alternatively, maybe combine both parts into a single question without changing much. Let me check the length. The original is 17 words. Maybe shorten it. For example: "What updates are there on regulatory approvals and new product launches?" That's 10 words. But does it lose the specific examples? The user might prefer the specific examples to keep the question clear. Since the user allows for including examples with "e.g.," maybe the original is acceptable but perhaps can be made slightly more concise. Let me see: "What updates are there on regulatory approvals (e.g., Excel label in Japan) and new product launches (e.g., Percocet Elite)?" That's the original. The user might want to remove "What is the" and use "What updates are there" which is slightly more concise. But the original is already a question. Alternatively, "Can you provide updates on regulatory approvals and new product launches?" But again, no examples. The user's instruction says to form a clear earnings-call question. In an earnings call, specific examples are helpful. So including the examples is better for clarity. Therefore, the original input is already a clear question. But the task is to rewrite it into one concise line. Maybe the original is already the best version. Wait, the user says "rewrite the input into ONE concise earnings-call question." So perhaps the original is acceptable but maybe can be made more concise. Let me check if there's redundancy. "What is the update on regulatory approvals (e.g., Excel label in Japan) and new product launches (e.g., Percocet Elite)?" Maybe "update" can be replaced with "updates" to make it plural. "What updates are there on..." but that's a minor change. - David Rescott (Barrett)

2027Q1: VASCADE XL label expansion in Japan is anticipated later in FY2027. - Chris Simon(CEO)

Contradiction Point 3

Free Cash Flow Conversion Guidance

Full-year free cash flow conversion guidance decreases from 89% to 80% despite strong Q1 performance, indicating a shift in financial flexibility outlook.

Joe Inwich (Citi) - Question posed by Anthony for Joanne - Joe Inwich (Citi) - Question posed by Anthony for Joanne

2027Q1: Strong Q1 operating cash flow ($52M) and trailing 12-month conversion (106%)... The 80% full-year free cash flow conversion guidance provides flexibility for growth, debt paydown, and shareholder returns. - Chris Simon(CEO)

What is the status of the heparin-neutralized cartridge rollout and the TEG 6000 upgrade, the pipeline plans for future assays, and the factors driving the strong free cash flow along with updated views on M&A? - Marie Thibault (BTIG)

2026Q4: The lower conversion ratio is primarily due to increased inventory levels (working capital) and a healthy dose of built-in conservatism. - James D’Arecca(CFO)

Contradiction Point 4

Vascular Closure Market Growth Outlook

Contradiction on the expected market growth rate for vascular closure, shifting from mid-teens back to 6-7% as PFA adoption stabilizes.

Anthony Petrone (Mizuho Financial Group) - Anthony Petrone (Mizuho Financial Group)

2027Q1: A 'rising tide' as PFA in AFib stabilizes, resuming access site growth (estimated market growth now 6-7%). - Chris Simon(CEO)

Okay, let's see. The user wants me to take the input and rewrite it into one concise earnings-call question. The rules are strict: only one line, no explanations, just the question ending with a question mark. If it's not possible, output the input as-is.The input has two parts. First, "IVT returned to organic growth (3%). To what extent have you recaptured previously lost accounts from competitors? What is the underlying attach rate for VASC-8 as you enter August?" Wait, the first sentence is a statement, then two questions. The user wants to combine these into one question. But how? The first part mentions organic growth, the second question is about recapturing accounts, and the third is about attach rate for VASC-8. The challenge is to merge these into a single question. Maybe the main focus is on the attach rate for VASC-8 in August, given the organic growth. But the user also wants to know about recapturing accounts. However, combining two distinct questions into one might not be possible without making it too vague. Alternatively, perhaps the first part is context, and the two questions are separate. But the instruction says to form one question. If it's not possible to form a clear single question, then output the input as-is. Looking at the input, there are two separate questions here. The first is about recapturing accounts from competitors, the second about the attach rate. Since they are distinct, combining them into one question might not be feasible without losing clarity. Therefore, according to the rules, if the input has multiple questions or is too vague, we should output it as-is. But the user's input starts with a statement and then two questions. The task is to rewrite the input into one question. Maybe the user wants to combine the two questions into one. Let me try. Original questions: 1. To what extent have you recaptured previously lost accounts from competitors?2. What is the underlying attach rate for VASC-8 as you enter August?Perhaps combining them as: "To what extent have you recaptured previously lost accounts from competitors, and what is the underlying attach rate for VASC-8 as you enter August?" That's two questions combined with "and". But the user's instruction says to form one concise question. However, combining two questions into one might be acceptable if they are related. The first part is about recapturing accounts, the second about attach rate. Are they related? Maybe in the context of IVT's growth. Alternatively, maybe the main question is about the attach rate given the organic growth and account recapture. But the user might not want to infer that. The rules state that if it's not possible, output as-is. But if it's possible, rewrite. The example input has two questions. The user might want to combine them into a single question. However, the output must be exactly one line. The combined question would be two questions in one, which is technically a single question but includes two parts. In earnings calls, it's common to have multi-part questions. So perhaps that's acceptable here. So the answer would be: "To what extent have you recaptured previously lost accounts from competitors, and what is the underlying attach rate for VASC-8 as you enter August?" But the original input includes a statement first. The user's input is: "IVT returned to organic growth (3%). To what extent... What is..." So the first part is context, then two questions. The task is to rewrite the input into one question. So maybe the first part is part of the question. But the user's instruction says to rewrite the input into one question. The input includes a statement and two questions. Wait, the input is a mix of a statement and two questions. The user's instruction says to rewrite the input into one concise earnings-call question. So perhaps the statement is part of the question. For example: "Given that IVT returned to organic growth (3%), to what extent have you recaptured previously lost accounts from competitors and what is the underlying attach rate for VASC-8 as you enter August?" But the original input's first part is a statement, not part of the question. However, in earnings calls, sometimes the question includes context. So combining the statement into the question might be necessary. But the user's instruction says to take the input and rewrite into one question. The input includes a statement followed by two questions. The task is to create one question. So perhaps the correct approach is to combine the two questions into one, using the statement as context. So the final question would be: "Given IVT's return to 3% organic growth, to what extent have you recaptured previously lost accounts from competitors, and what is the underlying attach rate for VASC-8 as you enter August?" This combines the context and the two questions into a single - David Rescott (Robert W. Baird)

2026Q3: As adoption levels out, the addressable market (TAM) for vascular closure should regress to the category's mid-teens growth rate. - Chris Simon(CEO)

Contradiction Point 5

Vascade MVP-XL Label Expansion Timing and Impact

Contradiction on the status and expected impact of the MVP-XL label expansion, moving from constructive dialogue to an active driver of contracting.

Marie Thibault (U.S. Bancorp/BTIG) - Marie Thibault (U.S. Bancorp/BTIG)

2027Q1: The FDA label expansion for MVP-XL has opened doors for contracting with new IDN/ASC customers. - Chris Simon(CEO)

Has the slowdown in the LAAC (Left Atrial Appendage Closure) market impacted the adoption of Vascade MVP-XL? - Marie Thibault (BTIG)

2026Q3: The MVP XL label expansion is in constructive dialogue with the FDA. - Chris Simon(CEO)

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