Vericel still sees FY MACI revenue growth in low 20% range

Vericel still sees FY MACI revenue growth in low 20% range

Vericel Corporation (NASDAQ: VCEL), a leader in advanced therapies for the sports medicine and severe burn care markets, reported robust financial results for the second quarter of 2025. The company's total revenue grew by 20% to $63.2 million, with its flagship product, MACI, driving significant revenue growth. MACI revenue increased by 21% to $53.5 million, accounting for 85% of total revenue [1].

The company's gross margin expanded by more than 400 basis points to 74%, while adjusted EBITDA grew by 112% to $13.4 million, translating to an adjusted EBITDA margin of 21%—a remarkable 900 basis point improvement year-over-year [1]. This demonstrates exceptional operational leverage as revenue scales.

Key operational highlights included training approximately 600 MACI Arthro surgeons, receiving FDA IND clearance for the MACI Ankle clinical study, and achieving the highest number of Epicel biopsies since 2023. The company maintains a strong financial position with $164 million in cash and investments and no debt [1].

Management reaffirmed its 2025 guidance for MACI revenue growth in the low 20% range, along with expectations for 74% gross margin and 26% adjusted EBITDA margin for the full year, indicating confidence in continued strong execution [1].

Vericel's Q2 results show impressive growth with a 20% revenue increase, 112% EBITDA growth, and strong MACI adoption driving profitability. The MACI Arthro launch appears to be gaining significant traction with approximately 600 surgeons trained to date. This expansion into arthroscopic procedures represents a critical market opportunity [1].

Notable achievements in the burn care segment include Epicel biopsies growing 38% versus the prior year, reaching the highest quarterly level since 2023, and NexoBrid revenue increasing 52% year-over-year, with June marking the highest number of hospital unit orders since launch [1].

The company's strong balance sheet, with approximately $164 million in cash and investments and no debt, provides ample resources for continued growth investments. Management's decision to accelerate the MACI sales force expansion signals confidence in continued momentum [1].

The FDA IND clearance for the MACI Ankle clinical study also opens a potential future growth avenue. Total Revenue Growth of 20% to $63.2 Million, with MACI Revenue Growth of 21% to $53.5 Million, Gross Margin Increased More than 400 Basis Points to 74%, Adjusted EBITDA Growth of 112% to $13.4 Million, with Adjusted EBITDA Margin Increase of More than 900 Basis Points to 21% Approximately 600 MACI Arthro Surgeons Trained to Date Received FDA IND Clearance for Phase 3 MACI Ankle Clinical Study Conference Call Today at 8:30am Eastern Time CAMBRIDGE, Mass., July 31, 2025 (GLOBE NEWSWIRE) -- Vericel Corporation (NASDAQ:VCEL), a leader in advanced therapies for the sports medicine and severe burn care markets, today reported financial results and business highlights for the second quarter ended June 30, 2025. Second Quarter 2025 Financial Highlights Business Highlights and Updates “The Company delivered another quarter of solid financial and business results in the second quarter, with significant revenue growth and even higher profitability growth and margin expansion as well as continued strength in the key performance indicators for the MACI Arthro launch,” said Nick Colangelo, President and CEO of Vericel. “Based on the positive trends across the business to start the third quarter, we expect continued strong revenue growth and profitability for the remainder of the year and beyond.” 2025 Financial Guidance Second Quarter 2025 Results Total net revenue for the quarter ended June 30, 2025 increased to $63.2 million , compared to $52.7 million in the second quarter of 2024. Total net product revenue for the quarter included $53.5 million of MACI (autologous cultured chondrocytes on porcine collagen membrane) net revenue, $8.6 million of Epicel (cultured epidermal autografts) net revenue, and $1.2 million of NexoBrid (anacaulase-bcdb) net revenue, compared to $44.1 million of MACI net revenue, $7.8 million of Epicel net revenue, and $0.8 million of NexoBrid net revenue, respectively, in the second quarter of 2024. Gross profit for the quarter ended June 30, 2025 was $46.6 million , or 74% of net revenue, compared to $36.6 million , or 70% of net revenue, for the second quarter of 2024. Total operating expenses for the quarter ended June 30, 2025 were $48.6 million , compared to $42.6 million for the same period in 2024. The increase in operating expenses was primarily due to increased headcount and related employee expenses and additional costs related to the Company’s new Burlington facility, including depreciation and MACI tech transfer activities. Net loss for the quarter ended June 30, 2025 was $0.6 million , or $0.01 per diluted share, compared to $4.7 million , or $0.10 per diluted share, for the second quarter of 2024. Non-GAAP adjusted EBITDA for the quarter ended June 30, 2025 was $13.4 million , or 21% of net revenue, compared to $6.3 million , or 12% of net revenue, for the second quarter of 2024. A table reconciling non-GAAP measures is included in this press release for reference. As of June 30, 2025, the Company had approximately $164 million in cash and investments, and no debt. Conference Call Information Today’s conference call will be available live at 8:30 a.m. Eastern Time. The live webcast can be accessed on the Investor Relations section of the Vericel website at http://investors.vcel.com/events-presentations. Presentation slides for the conference call will be available on the webcast and on the website. A replay of the webcast will be available until July 31, 2026. To participate by telephone, dial 855-303-0072 or +1 773-305-6837 if connecting from outside the U.S. When connected, please use passcode: 276790. About Vericel Corporation Vericel is a leading provider of advanced therapies for the sports medicine and severe burn care markets. The Company combines innovations in biology with medical technologies, resulting in a highly differentiated portfolio of innovative cell therapies and specialty biologics that repair injuries and restore lives. Vericel markets three products in the United States. MACI (autologous cultured chondrocytes on porcine collagen membrane) is an autologous cellularized scaffold product indicated for the repair of symptomatic, single or multiple full-thickness cartilage defects of the knee with or without bone involvement in adults. Epicel (cultured epidermal autografts) is a permanent skin replacement for the treatment of patients with deep dermal or full thickness burns greater than or equal to 30% of total body surface area. Vericel also holds an exclusive license for North American rights to NexoBrid (anacaulase-bcdb), a biological orphan product containing proteolytic enzymes, which is indicated for eschar removal in adults and pediatric patients with deep partial-thickness and/or full-thickness thermal burns. For more information, please visit www.vcel.com. Epicel® and MACI® are registered trademarks of Vericel Corporation. NexoBrid® is a registered trademark of MediWound Ltd. and is used under license to Vericel Corporation. © 2025 Vericel Corporation. All rights reserved. GAAP v. Non-GAAP Measures Vericel’s reported earnings are prepared in accordance with generally accepted accounting principles in the United States, or GAAP, and represent earnings as reported to the Securities and Exchange Commission. Vericel has provided in this release certain financial information that has not been prepared in accordance with GAAP. Vericel’s management believes that the non-GAAP adjusted EBITDA described in this release, which includes adjustments for specific items that are generally not indicative of our core operations, provides additional information that is useful to investors in understanding Vericel’s underlying performance, business and performance trends, and helps facilitate period-to-period comparisons and comparisons of its financial measures with other companies in Vericel’s industry. However, the non-GAAP financial measures that Vericel uses may differ from measures that other companies may use. Non-GAAP financial measures are not required to be uniformly applied, are not audited and should not be considered in isolation or as substitutes for results prepared in accordance with GAAP. Forward-Looking Statements Vericel cautions you that all statements other than statements of historical fact included in this press release that address activities