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Investing.com -- Vericel Corporation (NASDAQ:VCEL) shares fell 7.4% after the advanced therapies company reported second-quarter revenue that fell short of analyst expectations, despite posting better-than-expected earnings.
The sports medicine and burn care specialist reported Q2 revenue of $63.2 million, missing the consensus estimate of $64.61 million. However, the company’s loss per share came in at -$0.01, beating analyst expectations of -$0.03. The revenue shortfall overshadowed the earnings beat, driving the significant stock decline.
Total (EPA:TTEF) revenue increased 20% compared to $52.7 million in the same quarter last year, driven by MACI net revenue growth of 21% to $53.5 million. Burn Care revenue reached $9.8 million, consisting of $8.6 million from Epicel and $1.2 million from NexoBrid, with NexoBrid revenue increasing 52% YoY.
"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.
Gross margin improved to 74%, an increase of more than 400 basis points compared to the prior year. Non-GAAP adjusted EBITDA increased 112% to $13.4 million, with adjusted EBITDA margin expanding by over 900 basis points to 21%.
The company reaffirmed its guidance for MACI full-year revenue growth in the low 20% range and updated its Burn Care revenue guidance for the second half of 2025 to approximately $10 million per quarter, in line with recent performance. Vericel also maintained its full-year profitability guidance of 74% gross margin and 26% adjusted EBITDA margin.
As of June 30, 2025, Vericel had approximately $164 million in cash and investments with no debt.
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