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Introduction & Market Context
Artivion Inc (NYSE:AORT) reported strong second-quarter 2025 results on August 7, with double-digit revenue growth and significant EBITDA expansion leading to raised full-year guidance. The cardiac and vascular surgery-focused company continues to build momentum after a somewhat challenging first quarter, with its stock currently trading at $32.70, up 1.33% on the day and significantly higher than the $24.90 level seen after Q1 results.
The company’s Q2 performance demonstrates accelerating growth across its product portfolio, particularly in its On-X mechanical valves and aortic stent grafts, while also making progress on strategic initiatives and clinical studies.
As shown in the following key messages overview from the company’s presentation:
Quarterly Performance Highlights
Artivion delivered Q2 2025 revenue of $113.0 million, representing 14% year-over-year growth on a constant currency basis. This marks a significant acceleration from the 4% growth reported in Q1 2025. Adjusted EBITDA reached $24.8 million, increasing 33% compared to the same period last year and reflecting substantial margin expansion.
The company’s non-GAAP gross margin improved to 65.1%, up 0.8 percentage points year-over-year, while non-GAAP diluted earnings per share came in at $0.24. Free cash flow showed remarkable improvement, reaching $11.7 million, a 223.7% increase from Q2 2024.
The detailed financial performance is illustrated in the following slide:
Artivion also reported progress in addressing the tissue processing backlog related to a November 2024 cybersecurity incident, with expectations to clear the backlog by the end of Q3 2025. The company effectively retired convertible senior notes during the quarter, strengthening its balance sheet.
Product Portfolio Performance
The company’s growth was driven primarily by its On-X and aortic stent graft product lines, which both achieved impressive 24% year-over-year growth on a GAAP basis. On a constant currency basis, On-X maintained 24% growth while stent grafts grew 22%. Preservation services and surgical sealants showed more modest growth at 3% and 4% respectively.
The product revenue breakdown is shown in the following slide:
Geographically, North America led growth at 18% year-over-year, followed by Asia-Pacific at 15% and EMEA (Europe, Middle East, and Africa) at 10% on a constant currency basis. Latin America showed 7% constant currency growth despite flat GAAP revenue, indicating currency headwinds in that region.
The geographic revenue distribution is illustrated here:
Clinical Evidence & Pipeline Development
Artivion highlighted compelling clinical evidence supporting its On-X mechanical valve, particularly for younger patients requiring aortic valve replacement. Data presented shows that surgical aortic valve replacement (SAVR) is preferable to transcatheter aortic valve replacement (TAVR) in patients younger than 65, with TAVR associated with a 2.3-fold increased hazard of 6-year mortality. Additionally, mechanical AVR is favored over bioprosthetic AVR in patients 60 years and younger.
The company also emphasized that at a lower INR target (1.5-2.0), the On-X aortic valve demonstrated an 87% decrease in major bleeding with no increase in thromboembolism or valve thrombosis compared to standard anticoagulation therapy.
This clinical evidence is summarized in the following slide:
The company’s AMDS PERSEVERE US IDE Study showed promising results, with significantly lower rates of major adverse events compared to a hemiarch reference cohort in patients with Acute Debakey Type I with Malperfusion. The total patients with one or more major adverse events in the PERSEVERE group was 27% versus a goal of less than 40%, and substantially better than the 58% rate in the reference group.
The detailed comparison of outcomes is presented here:
Artivion also received IDE approval for its Arcevo LSA pivotal trial (ARTIZEN), which is expected to begin enrollment in September or October 2025. This prospective, non-randomized study will include approximately 30 sites in the US and EU, with potential approval anticipated around 2029.
Financial Outlook & Guidance
Based on the strong Q2 performance, Artivion raised its full-year 2025 guidance. The company now expects revenue of $435 million to $443 million, representing 12-14% year-over-year constant currency growth. This is an increase from the previously revised Q1 guidance of $423 million to $435 million.
The revenue guidance progression is illustrated in the following slide:
Similarly, Artivion raised its adjusted EBITDA guidance to $86 million to $91 million, representing 21-28% year-over-year growth. The company expects to be free cash flow positive for the full year 2025, continuing the positive trend seen in Q2.
The adjusted EBITDA guidance is shown here:
Strategic Initiatives
Artivion’s growth strategy continues to focus on expanding its core product lines while advancing its clinical pipeline. The company highlighted several growth drivers, including continued strength in existing products, positive new data supporting AMDS and On-X aortic valves, and the launch of AMDS following receipt of Humanitarian Device Exemption by the FDA.
The company also expects continued operating leverage driven by its global sales force and G&A infrastructure, which should contribute to adjusted EBITDA margin expansion throughout 2025.
After experiencing a revenue miss in Q1 2025, Artivion has demonstrated a strong recovery in Q2, with accelerating growth across product lines and geographies. The company’s consistent upward revisions to guidance throughout 2025 reflect management’s confidence in the business trajectory and ability to execute on strategic initiatives.
With a stock price that has appreciated significantly since Q1 earnings, the market appears to be recognizing Artivion’s improved performance and growth potential. The company’s focus on clinical evidence and pipeline development, particularly for its On-X valves and AMDS technology, positions it well for continued growth in the cardiac and vascular surgery markets.
Full presentation:
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