Vericel Q2 2025 slides: MACI drives 21% revenue growth, margins expand

Introduction & Market Context

Vericel Corporation (NASDAQ:VCEL) presented its second quarter 2025 financial results on July 31, showcasing strong revenue growth across its product portfolio. Despite the positive financial performance, Vericel’s stock was down 6.69% in premarket trading at $37.94, suggesting investors may have had higher expectations or concerns about forward guidance not fully addressed in the presentation.

The regenerative medicine company, which specializes in advanced cell therapies for sports medicine and severe burn care, has been focusing on expanding its MACI (autologous cultured chondrocytes on porcine collagen membrane) franchise through the recent launch of MACI Arthro, a minimally invasive application of its cartilage repair technology.

Quarterly Performance Highlights

Vericel reported total revenue of $63.2 million for Q2 2025, representing a 20% increase from $52.7 million in the same period last year. The company’s flagship product, MACI, continued to be the primary growth driver, with revenue increasing 21% year-over-year to $53.5 million.

As shown in the following chart of quarterly revenue growth across Vericel’s product portfolio:

The company’s burn care franchise, comprising Epicel and NexoBrid, generated $9.8 million in revenue. Epicel contributed $8.6 million, showing recovery with a 10% increase from Q2 2024, while NexoBrid revenue grew 52% to $1.2 million compared to the prior year.

Vericel achieved several operational milestones in the quarter, including:

• Record second quarter total revenue and MACI revenue
• Second highest number of MACI biopsies in a quarter since launch
• Highest number of Epicel biopsies in a quarter since 2023, representing 38% growth
• Record monthly NexoBrid hospital unit orders in June

The following slide summarizes Vericel’s key financial and business highlights for the quarter:

Detailed Financial Analysis

Vericel’s gross margin expanded significantly to 74% in Q2 2025, an improvement of over 400 basis points compared to 70% in Q2 2024. This margin expansion, coupled with strong revenue growth, contributed to a 112% increase in Adjusted EBITDA, which reached $13.4 million compared to $6.3 million in the same period last year.

The company’s comprehensive financial results show improvement across multiple metrics:

While Vericel still reported a GAAP net loss of $0.6 million for the quarter, this represents a substantial improvement from the $4.7 million loss in Q2 2024. On a per-share basis, the loss narrowed to $0.01 from $0.10 in the prior year period.

The company’s Adjusted EBITDA margin expanded to 21% in Q2 2025, up from 12% in Q2 2024, demonstrating improved operational efficiency. The reconciliation between GAAP net loss and Adjusted EBITDA shows the impact of non-cash items and pre-occupancy expenses related to the company’s new manufacturing facility:

Vericel maintained a strong balance sheet with $164 million in cash and investments as of July 31, 2025, and no debt. The company generated $8.2 million in operating cash flow during the quarter, further strengthening its financial position.

Strategic Initiatives

A key focus for Vericel has been the rollout of MACI Arthro, which allows surgeons to perform cartilage repair procedures using less invasive arthroscopic techniques. The company has made significant progress in training surgeons on this new approach, with approximately 600 surgeons trained since the launch in late 2024.

The following chart illustrates the rapid adoption of MACI Arthro among surgeons:

The data indicates that surgeons trained on MACI Arthro are demonstrating expanded utilization of the product, with biopsy growth rates accelerating for these surgeons in Q2. Notably, MACI implants for the treatment of small femoral condyle defects increased more than 40% in the second quarter versus the prior year.

Vericel also reported progress on its MACI Ankle program, receiving FDA IND clearance for a clinical study that is expected to begin in the second half of 2025. This expansion into ankle applications represents a significant potential growth opportunity for the MACI franchise.

Forward-Looking Statements

Vericel indicated a strong start to Q3 2025, reporting accelerating MACI biopsy and implant growth in July, the highest monthly Epicel graft volume of the year, and the highest NexoBrid monthly hospital orders since launch.

Based on the Q2 results and early Q3 indicators, the company is accelerating its MACI sales force expansion into the second half of 2025, suggesting confidence in continued growth momentum. This follows the upward revision of full-year guidance after Q1 2025, when the company increased its revenue growth projection to 20-23%.

The company’s performance in Q2 2025 represents a significant improvement from Q1, where it reported a wider-than-expected loss of $0.23 per share despite achieving record Q1 revenue of $52.6 million. The sequential improvement in profitability metrics suggests Vericel is making progress toward sustainable profitability while maintaining strong top-line growth.

While Vericel’s presentation highlighted numerous positive developments, investors will likely be watching for further details on the company’s path to consistent profitability and the long-term market opportunity for MACI Arthro as the product continues to gain traction among surgeons.

Full presentation:

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