Executive Summary [Q2 2025 Performance Highlights](index=1&type=section&id=1.1%20Q2%202025%20Performance%20Highlights) LeMaitre Vascular achieved strong sales growth in Q2 2025, with improved gross margin due to higher average selling prices and manufacturing efficiencies, alongside double-digit growth in operating income and EPS Q2 2025 Key Financial Data | Metric | Amount | Growth Rate (YoY) | | :--- | :--- | :--- | | Sales | $64.2 million | +15% (+15% Organic Growth) | | Gross Margin | 70.0% | +110 basis points (vs. 68.9% in Q2 2024) | | Operating Income | $16.1 million | +12% | | Diluted EPS | $0.60 | +16% | | Cash | $319.5 million | +$16.9 million sequentially | - Catheters (**+27%**) and grafts (**+19%**) were the primary drivers of sales growth in the second quarter[4](index=4&type=chunk) - EMEA sales grew **23%**, Americas sales grew **12%**, and Asia-Pacific sales grew **12%**[4](index=4&type=chunk) [Business Outlook and Guidance](index=1&type=section&id=1.2%20Business%20Outlook%20and%20Guidance) LeMaitre Vascular raised its full-year 2025 revenue and profit guidance, reflecting confidence in sustained healthy sales and profit growth, particularly with the successful international launch of Artegraft Q3 and Full-Year 2025 Guidance (Midpoint) | Metric | Q3 2025 Guidance (Midpoint) | Full-Year 2025 Guidance (Midpoint) | | :----- | :--------------------- | :---------------------------- | | Sales | $62.2 million (+13%, +15% Organic) | $251 million (+14%, +15% Organic) | | Gross Margin | 69.7% | 69.7% | | Operating Income | $15.1 million (+14%) | $60.9 million (+17%) | | Operating Margin | 24% | 24% | | EPS | $0.57 (+16%) | $2.30 (+19%) | - Chairman and CEO George LeMaitre stated that 2025 is expected to be another year of healthy sales and profit growth, with Artegraft's international launch exceeding plans[5](index=5&type=chunk) [Shareholder Programs](index=1&type=section&id=1.3%20Shareholder%20Programs) The company announced a quarterly dividend and is executing a stock repurchase program authorized to buy back up to $75 million of common stock - The Board of Directors approved a quarterly dividend of **$0.20 per share** on July 30, 2025, payable on September 4, 2025, to shareholders of record on August 21, 2025[2](index=2&type=chunk)[6](index=6&type=chunk) - The company's Board of Directors authorized the repurchase of up to **$75 million** of the company's common stock on February 18, 2025, with the program ending on February 17, 2026, unless extended by the Board[7](index=7&type=chunk) Company Information [About LeMaitre Vascular, Inc.](index=2&type=section&id=2.1%20About%20LeMaitre%20Vascular,%20Inc.) LeMaitre Vascular is a medical device company focused on developing, manufacturing, and marketing disposable and implantable vascular devices for treating peripheral vascular disease, with vascular surgeons as its core customers - LeMaitre provides devices, implants, and services for treating peripheral vascular disease, which affects over **200 million people** globally[11](index=11&type=chunk) - The company develops, manufactures, and markets disposable and implantable vascular devices to meet the needs of its core customers, vascular surgeons[11](index=11&type=chunk) [Use of Non-GAAP Financial Measures](index=2&type=section&id=2.2%20Use%20of%20Non-GAAP%20Financial%20Measures) LeMaitre management uses Non-GAAP financial measures, such as "organic" sales growth (adjusted for foreign exchange, business development transactions, etc.), to supplement GAAP results, believing this more effectively assesses sales and profitability trends - Non-GAAP financial measures are used to supplement GAAP financial performance indicators for a better understanding of the company's short-term and long-term financial trends[13](index=13&type=chunk) - The company refers to Non-GAAP sales growth percentages, adjusted for the impact of foreign exchange rates, business development transactions, and/or other events, as "organic" growth[14](index=14&type=chunk) - A reconciliation of GAAP to Non-GAAP results is included in the financial statement schedules of this press release[10](index=10&type=chunk)[13](index=13&type=chunk) [Forward-Looking Statements](index=2&type=section&id=2.3%20Forward-Looking%20Statements) This press release contains forward-looking statements subject to various risks and uncertainties, including competition, acquisitions, pricing, supply chain, regulatory compliance, and litigation, which could cause actual results to differ materially from expectations - Statements in this press release that are not historical facts about the company's business may constitute "forward-looking statements" involving risks and uncertainties[15](index=15&type=chunk) - Risks include competition from other medical device companies and alternative medical technologies, ability to make acquisitions, maintaining historical profit growth levels, reliance on single or limited source suppliers, regulatory approval status, and litigation[15](index=15&type=chunk) - Forward-looking statements should not be unduly relied upon, and the company undertakes no obligation to publicly update any forward-looking statements[16](index=16&type=chunk) [Contact Information](index=3&type=section&id=2.4%20Contact%20Information) Investor Relations contact information is provided for inquiries - The Investor Relations contact is Gregory Manker, Director of Business Development and Investor Relations[17](index=17&type=chunk) Financial Statements [Condensed Consolidated Balance Sheets](index=4&type=section&id=3.1%20Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, LeMaitre Vascular's total assets increased, driven primarily by growth in marketable securities and accounts receivable, while total liabilities remained relatively stable Condensed Consolidated Balance Sheets (Amounts in thousands USD) | Asset/Liability/Equity | June 30, 2025 | December 31, 2024 | Change | | :--------------------- | :------------ | :---------------- | :----- | | Total Current Assets | $430,126 | $402,192 | +$27,934 | | Total Assets | $577,591 | $551,817 | +$25,774 | | Total Current Liabilities | $30,816 | $30,607 | +$209 | | Total Liabilities | $214,905 | $214,527 | +$378 | | Total Stockholders' Equity | $362,686 | $337,290 | +$25,396 | - Cash and cash equivalents increased from **$25,610 thousand** to **$27,177 thousand**[18](index=18&type=chunk) - Short-term marketable securities increased from **$274,112 thousand** to **$292,311 thousand**[18](index=18&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=3.2%20Condensed%20Consolidated%20Statement%20of%20Operations) In Q2 2025, LeMaitre Vascular's net sales, gross profit, and net income all saw significant growth compared to Q2 2024, with diluted EPS increasing by 15.4%, and year-to-date performance also showing strength Condensed Consolidated Statements of Operations (Amounts in thousands USD, except per share amounts) | Metric | Q2 2025 | Q2 2024 | YoY Change (Q2) | YTD 2025 | YTD 2024 | YoY Change (YTD) | | :--------------------- | :------ | :------ | :-------------- | :------- | :------- | :--------------- | | Net Sales | $64,232 | $55,849 | +15.0% | $124,103 | $109,327 | +13.5% | | Gross Profit | $44,974 | $38,468 | +16.9% | $86,394 | $75,133 | +15.0% | | Operating Income | $16,142 | $14,380 | +12.2% | $28,768 | $26,254 | +9.6% | | Net Income | $13,779 | $11,826 | +16.5% | $24,790 | $21,713 | +14.2% | | Diluted Earnings Per Share | $0.60 | $0.52 | +15.4% | $1.08 | $0.96 | +12.5% | | Cash Dividends Per Common Share | $0.20 | $0.16 | +25.0% | $0.40 | $0.32 | +25.0% | - Selling and marketing expenses in Q2 2025 significantly increased by **35.6%** from **$10,984 thousand** to **$14,895 thousand** compared to Q2 2024[19](index=19&type=chunk) - Research and development expenses in Q2 2025 decreased by **17.3%** from **$4,284 thousand** to **$3,541 thousand** compared to Q2 2024[19](index=19&type=chunk) [Selected Net Sales Information](index=6&type=section&id=3.3%20Selected%20Net%20Sales%20Information) All geographic regions contributed to net sales growth in Q2 2025 and year-to-date, with the EMEA region showing the highest percentage growth in the second quarter Net Sales by Geographic Region (Amounts in thousands USD) | Geographic Region | Q2 2025 Sales | Q2 2024 Sales | Q2 YoY Growth Rate | YTD 2025 Sales | YTD 2024 Sales | YTD YoY Growth Rate | | :-------- | :------------ | :------------ | :------------ | :------------- | :------------- | :------------- | | Americas | $41,321 | $36,907 | +12.0% | $80,279 | $72,152 | +11.3% | | Europe, Middle East and Africa (EMEA) | $18,840 | $15,298 | +23.1% | $35,799 | $29,693 | +20.6% | | Asia-Pacific | $4,071 | $3,644 | +11.7% | $8,025 | $7,482 | +7.3% | | Total Net Sales | $64,232 | $55,849 | +15.0% | $124,103 | $109,327 | +13.5% | - The Americas remains the largest market, accounting for **64%** of net sales in Q2 2025[20](index=20&type=chunk) Non-GAAP Reconciliations [EBITDA Reconciliation](index=7&type=section&id=4.1%20EBITDA%20Reconciliation) LeMaitre Vascular's EBITDA grew 14% in Q2 2025 and 11% year-to-date, reflecting improved operating profitability before interest, taxes, depreciation, and amortization EBITDA Reconciliation (Amounts in thousands USD) | Metric | Q2 2025 | Q2 2024 | YoY Change (Q2) | YTD 2025 | YTD 2024 | YoY Change (YTD) | | :--------------------- | :------ | :------ | :-------------- | :------- | :------- | :--------------- | | Reported Net Income | $13,779 | $11,826 | +16.5% | $24,790 | $21,713 | +14.2% | | EBITDA | $19,037 | $16,753 | +13.6% | $34,217 | $30,931 | +10.6% | - Net interest (income) expense changed from **$(1,137) thousand** in Q2 2024 to **$(1,681) thousand** in Q2 2025[21](index=21&type=chunk) [Non-GAAP Sales Growth Reconciliation](index=8&type=section&id=4.2%20Non-GAAP%20Sales%20Growth%20Reconciliation) Adjusted net sales, excluding the impact of divestitures and foreign exchange fluctuations, showed a 15% increase in Q2 2025, with Q3 and full-year 2025 also projected to grow by 15%, indicating strong organic growth Non-GAAP Sales Growth Reconciliation (Amounts in thousands USD) | Metric | Q2 2025 | Q2 2024 | Adjusted Net Sales Growth (Q2) | | :------------------------------------ | :------ | :------ | :------------------------------- | | Reported Net Sales | $64,232 | $55,849 | | | Adjusted Net Sales | $63,146 | $54,889 | $8,257 (+15%) | Projected Non-GAAP Sales Growth Reconciliation (Amounts in thousands USD) | Metric | Q3 2025 (Midpoint) | Q3 2024 (Reported) | Adjusted Projected Net Sales Growth (Q3) | | :------------------------------------ | :----------------- | :----------------- | :----------------------------------------- | | Guidance Net Sales (Midpoint) | $62,200 | $54,819 | | | Adjusted Projected Net Sales | $61,383 | $53,503 | $7,880 (+15%) | | **Full-Year 2025 (Midpoint)** | **Full-Year 2024 (Reported)** | **Adjusted Projected Net Sales Growth (FY)** | | | Guidance Net Sales (Midpoint) | $250,503 | $219,863 | | | Adjusted Projected Net Sales | $248,142 | $216,598 | $31,544 (+15%) | - Foreign exchange fluctuations had a negative impact of **$1,039 thousand** on net sales in Q2 2025[22](index=22&type=chunk)

Core Insights - LeMaitre Vascular, Inc. reported strong Q2 2025 results, with significant sales growth driven by catheters and grafts, and announced a quarterly dividend of $0.20 per share [1][3][6] Financial Performance - Q2 2025 sales reached $64.2 million, a 15% increase compared to Q2 2024, with organic growth also at 15% [3][10] - Gross margin improved to 70.0%, up from 68.9% in Q2 2024, attributed to higher average selling prices and manufacturing efficiencies [3][10] - Operating income for Q2 was $16.1 million, reflecting a 12% increase year-over-year [3][10] - Earnings per share (EPS) rose 16% to $0.60 per fully diluted share [3][10] Sales Growth Drivers - Sales growth was primarily driven by a 27% increase in catheter sales and a 19% increase in graft sales [3] - Regional sales performance included a 23% increase in EMEA, and 12% growth in both Americas and APAC [3] Guidance and Outlook - The company raised its guidance for Q3 2025, projecting sales between $61.2 million and $63.2 million, and for the full year 2025, sales are expected to be between $248 million and $254 million [4] - Gross margin and operating margin are expected to remain stable at 69.7% and 24% respectively for both Q3 and full year guidance [4] Dividend and Share Repurchase - The Board of Directors approved a quarterly dividend of $0.20 per share, payable on September 4, 2025 [6] - A share repurchase program was authorized for up to $75 million, set to conclude on February 17, 2026, unless extended [7] Cash Position - The company reported a sequential increase in cash of $16.9 million, bringing total cash to $319.5 million [10]

Core Insights - The article compares two medical product stocks, Phibro Animal Health (PAHC) and LeMaitre Vascular (LMAT), to determine which offers better value for investors [1] Valuation Metrics - PAHC has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while LMAT has a Zacks Rank of 3 (Hold) [3] - PAHC's forward P/E ratio is 11.38, significantly lower than LMAT's forward P/E of 37.42 [5] - PAHC has a PEG ratio of 0.44, compared to LMAT's PEG ratio of 2.14, suggesting PAHC is more favorably valued in terms of expected earnings growth [5] - PAHC's P/B ratio is 3.98, while LMAT's P/B ratio is 5.27, further indicating that PAHC is undervalued relative to its book value [6] - Overall, PAHC earns a Value grade of A, while LMAT receives a Value grade of D, highlighting the superior valuation metrics of PAHC [6] Conclusion - Given the stronger estimate revision activity and more attractive valuation metrics, PAHC is positioned as the superior investment option for value investors at this time [7]

Company Overview - LeMaitre Vascular, Inc. is a provider of devices, implants, and services for the treatment of peripheral vascular disease, which affects over 200 million people globally [3] - The company develops, manufactures, and markets both disposable and implantable vascular devices aimed at vascular surgeons [3] Financial Results Announcement - LeMaitre Vascular will release its second quarter 2025 financial results on August 5, 2025, after market close [1] - A conference call is scheduled for 5:00 PM EDT on the same day to discuss the financial results, business highlights, and company outlook [1] Access to Conference Call - Access to the live conference call requires online registration, after which registrants will receive dial-in information and a PIN [2] - The audio webcast will be available live and for replay through the company's investor relations website [2]

Part I. Financial Information [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) LeMaitre Vascular, Inc.'s unaudited consolidated financial statements for Q1 2025 are presented, showing a 12% increase in net sales and an 11% rise in net income year-over-year [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased to $556.0 million, total liabilities decreased to $208.4 million, and total stockholders' equity grew to $347.6 million Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $25,340 | $25,610 | | Short-term marketable securities | $277,209 | $274,112 | | Total current assets | $408,113 | $402,192 | | Total assets | $556,006 | $551,817 | | **Liabilities & Equity** | | | | Total current liabilities | $24,745 | $30,607 | | Convertible senior notes, net | $167,984 | $167,772 | | Total liabilities | $208,434 | $214,527 | | Total stockholders' equity | $347,572 | $337,290 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2025, LeMaitre Vascular reported a 12% increase in net sales to $59.9 million and an 11% rise in net income to $11.0 million, resulting in a diluted EPS of $0.48 Q1 2025 vs. Q1 2024 Performance (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net sales | $59,871 | $53,478 | +12.0% | | Gross profit | $41,420 | $36,665 | +13.0% | | Income from operations | $12,626 | $11,874 | +6.3% | | Net income | $11,011 | $9,887 | +11.4% | | Diluted EPS | $0.48 | $0.44 | +9.1% | - Cash dividends declared per common share increased by **25%** to **$0.20** in Q1 2025 from **$0.16** in Q1 2024[12](index=12&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2025, net cash provided by operating activities significantly increased to $9.0 million, while investing activities used $4.3 million and financing activities used $5.2 million, resulting in a net decrease in cash of $0.3 million Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $9,039 | $5,071 | | Net cash used in investing activities | ($4,320) | ($2,361) | | Net cash (used in) provided by financing activities | ($5,239) | $39 | | Net (decrease) increase in cash | ($270) | $2,326 | [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) The notes detail accounting policies and financial statement components, covering business operations, convertible senior notes, stock-based compensation, and a subsequent event regarding new U.S. tariffs announced in April 2025 - The company operates in a single segment, developing, manufacturing, and marketing medical devices and implants for vascular surgery[23](index=23&type=chunk) - In December 2024, the company issued **$172.5 million** in **2.50% convertible senior notes** due 2030, with net proceeds of approximately **$167.7 million**[44](index=44&type=chunk)[45](index=45&type=chunk) - On April 2, 2025, the U.S. government announced new tariffs on a range of imported goods, effective June 15, 2025. The company is assessing the potential impact on its business[68](index=68&type=chunk)[69](index=69&type=chunk) - The company's Board of Directors authorized a share repurchase program of up to **$75.0 million** on February 18, 2025, with no repurchases made to date under this program[56](index=56&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's Q1 2025 financial performance, including a 12% increase in net sales to $59.9 million, strategic initiatives, and operational updates like MDR CE mark progress and ERP system implementation [Overview](index=24&type=section&id=Overview) LeMaitre Vascular's overview details its three-pronged growth strategy, the significant contribution of biologic products to sales, and progress in regulatory approvals and ERP system implementation - The company's three-pronged growth strategy involves a focused call point, competing in low-rivalry niche markets, and expanding the direct sales force alongside acquisitions[72](index=72&type=chunk) - Biologic offerings represented **52%** of worldwide sales in Q1 2025[75](index=75&type=chunk) - As of May 1, 2025, the company has obtained **17 MDR CE marks** for selling devices in the European Union and expects to hold **23** by the end of 2025[82](index=82&type=chunk) - A new ERP system (Microsoft Dynamics D365) was implemented in the U.S. in February 2024 and in the UK in February 2025 to improve operations[89](index=89&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Q1 2025 net sales grew 12% to $59.9 million, gross margin improved to 69.2%, and operating expenses rose 16% to $28.8 million, primarily due to increased headcount and compensation Net Sales by Geography (in thousands) | Region | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Americas | $38,958 | $35,245 | +11% | | Europe, Middle East and Africa | $16,959 | $14,395 | +18% | | Asia Pacific | $3,954 | $3,838 | +3% | | **Total** | **$59,871** | **$53,478** | **+12%** | - Gross margin increased by **60 basis points** to **69.2%** in Q1 2025, up from **68.6%** in Q1 2024, due to manufacturing efficiencies, lower obsolescence charges, and price increases[105](index=105&type=chunk)[106](index=106&type=chunk) - Sales and marketing expenses increased **22%** to **$14.2 million**, and General and administrative expenses increased **16%** to **$10.5 million**, primarily due to higher headcount and compensation[107](index=107&type=chunk)[108](index=108&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company held $25.3 million in cash and $277.2 million in marketable securities, with $9.0 million net cash from operations, and believes its resources are sufficient for the next twelve months - As of March 31, 2025, the company had **$25.3 million** in cash and cash equivalents and **$277.2 million** in short-term marketable securities[116](index=116&type=chunk) Q1 2025 Cash Flow Summary (in thousands) | Activity | Amount | | :--- | :--- | | Cash from Operating Activities | $9,039 | | Cash used in Investing Activities | ($4,320) | | Cash used in Financing Activities | ($5,239) | - A quarterly cash dividend of **$0.20 per share** was paid in Q1 2025, totaling **$4.5 million**. A similar dividend was approved for Q2 2025[133](index=133&type=chunk) - The company believes its existing cash, investments, and future cash flows will be sufficient to fund operating expenses, capital expenditures, and convertible note payments for at least the next twelve months[124](index=124&type=chunk) [Quantitative and Qualitative Disclosure about Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) The company is exposed to market risks from interest rate and foreign currency exchange rate fluctuations, with no material changes reported since the 2024 year-end report - The company is exposed to interest rate and foreign currency exchange risks. There has been no material change in this risk profile since the 2024 Form 10-K[137](index=137&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, while noting ongoing changes to internal controls due to ERP system implementation - Management concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective at the reasonable assurance level[140](index=140&type=chunk) - The phased implementation of a new ERP system, which began in February 2024, is expected to continue to cause changes to internal controls over financial reporting[141](index=141&type=chunk) Part II. Other Information [Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal matters but anticipates no material adverse effect on its financial position, results, or cash flows from current proceedings - The company states that there are no ongoing legal matters that are expected to have a material adverse effect on its financial condition or operations[144](index=144&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) This section supplements 2024 10-K risk factors, highlighting potential negative impacts from global economic conditions, tariffs, and product recalls, including a recent immaterial packaging seal issue - Adverse global economic conditions, including tariffs and trade tensions, could negatively affect the company's business and financial results[146](index=146&type=chunk) - In April 2025, the company voluntarily notified regulatory bodies and customers of an inadequate packaging seal on certain catheter products, which may result in a compromised sterile barrier. The financial impact is expected to be immaterial[148](index=148&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered equity sales, repurchased 6,065 shares for employee tax obligations, and has a $75.0 million authorized share repurchase program with no purchases made to date - In Q1 2025, the company repurchased **6,065 shares** to cover employee taxes on vested equity awards[150](index=150&type=chunk) - A **$75.0 million share repurchase program** was authorized on February 18, 2025, and remains fully available as no shares have been repurchased under it to date[150](index=150&type=chunk) [Other Information](index=39&type=section&id=Item%205.%20Other%20Information) Chairman and CEO George W. LeMaitre adopted a Rule 10b5-1 trading plan on March 10, 2025, for the potential sale of up to 250,000 shares of common stock through March 10, 2027 - Chairman and CEO George W. LeMaitre adopted a Rule 10b5-1 trading plan on March 10, 2025, for the sale of up to **250,000 shares of common stock** through March 10, 2027[151](index=151&type=chunk) [Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL data files

Company Overview - LeMaitre Vascular, Inc. is a provider of devices, implants, and services for the treatment of peripheral vascular disease, which affects over 200 million people globally [2] - The company develops, manufactures, and markets both disposable and implantable vascular devices tailored to the needs of vascular surgeons [2] Upcoming Event - David Roberts, the President of LeMaitre, will present at the Bank of America Securities 2025 Healthcare Conference on May 13, 2024, at 5:00 PM PDT in Las Vegas, NV [1]

Group 1 - LeMaitre Vascular reported quarterly earnings of $0.48 per share, missing the Zacks Consensus Estimate of $0.50 per share, but showing an increase from $0.44 per share a year ago, resulting in an earnings surprise of -4% [1] - The company posted revenues of $59.87 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.59%, compared to year-ago revenues of $53.48 million [2] - Over the last four quarters, LeMaitre has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Group 2 - The stock's immediate price movement will depend on management's commentary during the earnings call, with LeMaitre shares losing about 1.5% since the beginning of the year, while the S&P 500 declined by -5.3% [3] - The current consensus EPS estimate for the coming quarter is $0.59 on revenues of $61.31 million, and for the current fiscal year, it is $2.25 on revenues of $240.41 million [7] - The Zacks Industry Rank indicates that the Medical - Products sector is currently in the bottom 28% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - Q1 2025 sales showed stronger performance than previously guided, with 13% organic growth and 12% reported growth, driven by grafts (up 17%) and carotid shunts (up 14%) [6][13] - Gross margin for Q1 2025 was 69.2%, a 60 basis point increase year-over-year, attributed to higher average selling prices (ASPs) and lower inventory scrap [14][15] - Operating income increased 6% year-over-year to $12.6 million, with an operating margin of 21% [16] - Fully diluted EPS rose to $0.48, reflecting a 10% increase [16] - Cash and securities at the end of Q1 2025 totaled $302.5 million, up $2.8 million from the previous quarter [16] Business Line Data and Key Metrics Changes - Record sales were achieved across all five product categories: grafts, carotid shunts, catheters, valvulotomes, and patches [6][14] - Organic sales growth of 13% was driven by a 9% increase in average selling prices and a 4% increase in units sold [14] Market Data and Key Metrics Changes - By geography, EMEA sales increased by 18%, the Americas by 11%, and APAC by 3% [6] - The autograft product, which had $37 million in U.S. sales in 2024, is expected to have a market size of approximately $8 million in Europe and the rest of the world [9][10] Company Strategy and Development Direction - The company is focusing on expanding its sales force, with a target of 170 sales representatives by year-end, up from 164 [7][30] - New international sales offices are being established, including a direct office in Portugal and a new office in Zurich to enhance sales performance [8][9] - The company plans to open a pan-European RestoreFlow distribution facility in Dublin in H2 2025 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in increasing guidance for 2025 sales to $245 million, up from $239 million, due to strong Q1 performance and successful price increases [13][21] - The company anticipates that exiting the Aleutia distribution agreement will improve organic growth and gross margin [17][95] - Management remains optimistic about long-term prospects in China despite current trade tensions, indicating a commitment to the market [20][38] Other Important Information - The company has received 17 out of 23 MDR CE marks, with ongoing efforts to secure additional approvals [126] - The company is implementing price increases in China to offset tariff impacts, expecting to recover about 50% of additional costs [91] Q&A Session Summary Question: What factors contributed to the increased guidance? - Management cited strong Q1 performance, better-than-expected price increases, and the positive impact of exiting the Aleutia business as key factors for increased guidance [26][30] Question: Any updates on M&A activity? - The M&A pipeline remains strong, focusing on open vascular surgery and adjacent cardiac surgery markets, with a preference for larger deals [34][77] Question: How does the company view the impact of tariffs? - Management believes the company is well-positioned due to its U.S.-only manufacturing footprint and limited reliance on imports, with plans to raise prices to offset potential tariff impacts [18][20] Question: What is the outlook for gross margins? - Management expects gross margins to be slightly lower than previous guidance but maintains a strong operating margin outlook due to sales growth and exiting lower-margin products [65][84] Question: How will the new sales representatives impact growth? - Management indicated that new sales representatives are expected to contribute to sales growth more quickly than in the past, with a ramp-up time that has improved [73][75]

Financial Data and Key Metrics Changes - Q1 2025 sales showed a 13% organic growth and a 12% reported growth, exceeding previous guidance [6][13] - Gross margin for Q1 2025 was 69.2%, a 60 basis point increase year-over-year, driven by higher average selling prices (ASPs) and lower inventory scrap [14][15] - Operating income increased 6% year-over-year to $12.6 million, with an operating margin of 21% [16] - Fully diluted EPS rose to $0.48, up 10% from the previous year [16] - Cash and securities at the end of Q1 2025 totaled $302.5 million, reflecting a $2.8 million increase during the quarter [16] Business Line Data and Key Metrics Changes - Sales records were achieved in all five categories: grafts, carotid shunts, catheters, valvulotomes, and patches [6] - Grafts sales increased by 17%, while carotid shunts grew by 14% [6] - The company anticipates a significant contribution from the autograft product, which had $37 million in U.S. sales in 2024 [9][10] Market Data and Key Metrics Changes - By geography, EMEA sales increased by 18%, the Americas by 11%, and APAC by 3% [6] - The autograft market size in Europe is estimated at $8 million, with similar expectations for the rest of the world [10] Company Strategy and Development Direction - The company is focusing on expanding its sales force, targeting 170 sales representatives by year-end, up from 164 [7][13] - New international sales offices are being established, including a direct office in Portugal and a new office in Zurich to enhance sales performance [8] - The company is transitioning away from the porcine patch distribution agreement to focus on its own biologics, which is expected to improve organic growth and gross margin [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in increasing guidance due to strong Q1 performance, effective price increases, and the positive impact of new sales representatives [28][30] - The company remains optimistic about its position regarding tariffs, as it manufactures 100% of its products in the U.S. and has limited exposure to import tariffs [18][20] - Management anticipates continued growth in the RestoreFlow allograft segment, with a 23% CAGR since acquisition [11] Other Important Information - The company is preparing for the European launch of the autograft product following the receipt of the MDR CE mark [9] - The company plans to open a pan-European RestoreFlow distribution facility in Dublin in the second half of 2025 [12] Q&A Session Summary Question: What gives the company confidence to raise guidance early in the year? - Management cited strong Q1 performance, better-than-expected price increases, and the positive impact of exiting the Aleutia business as key factors [28][30] Question: Any updates on M&A activity? - The pipeline remains strong, focusing on open vascular surgery and adjacent cardiac surgery markets, with a preference for larger deals [34][36] Question: Concerns regarding XenoSure in China? - Management acknowledged challenges but remains committed to the long-term potential in China, expecting to continue pursuing provincial approvals [40][41] Question: Clarification on gross margin performance? - The allograft product's strong performance contributed to the gross margin miss, with management adjusting expectations slightly for the full year [63][65] Question: How will the sales force ramp-up impact operating leverage? - Management indicated that new sales representatives are expected to contribute to operating income growth, with a projected 14% increase in H2 [72][73] Question: Status of the share buyback program? - Management confirmed that no shares have been repurchased as of the date of the call [86]

Financial Data and Key Metrics Changes - Q1 2025 sales showed a 13% organic growth and a 12% reported growth, exceeding previous guidance [5] - Gross margin for Q1 2025 was 69.2%, a 60 basis point increase year-over-year, driven by higher average selling prices (ASPs) and lower inventory scrap [13][14] - Operating income increased 6% year-over-year to $12.6 million, with an operating margin of 21% [15] - Fully diluted EPS rose to $0.48, up 10% [15] - Cash and securities at the end of Q1 2025 totaled $302.5 million, an increase of $2.8 million during the quarter [15] Business Line Data and Key Metrics Changes - Sales records were achieved in all five categories: grafts (up 17%), carotid shunts (up 14%), catheters, valvulotomes, and patches [5] - The autograft, a biologic graft, was the largest U.S. product in 2024 with $37 million in sales, and the European market size is estimated at $8 million [8][9] Market Data and Key Metrics Changes - By geography, EMEA sales increased by 18%, Americas by 11%, and APAC by 3% [5] - International sales of autografts reached $180,000 in Q1, with expectations for approvals in Australia, Canada, Singapore, and Korea by H1 2026 [9] Company Strategy and Development Direction - The company is focusing on expanding its sales force, targeting 170 representatives by year-end, up from 164 [6] - A new distribution facility in Dublin is planned to support pan-European distribution of RestoreFlow [11][106] - The company aims to improve organic growth and gross margin by winding down the porcine patch distribution agreement with Eulsha [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in increasing guidance due to strong Q1 performance, effective price increases, and the positive impact of new sales representatives [26][30] - The company anticipates that trade tensions will not significantly impact its operations due to its U.S.-only manufacturing footprint [19][20] Other Important Information - The company has raised its full-year revenue guidance to $245 million, reflecting robust sales performance and a weaker U.S. dollar [21] - The anticipated gross margin for the full year is now 69.6%, with operating income projected at $57.7 million [21] Q&A Session Summary Question: What gives confidence to increase guidance early in the year? - Management cited strong Q1 performance, better-than-expected price increases, and the positive impact of exiting the Aleutia business as key factors [26][30] Question: Any updates on M&A activity? - The pipeline is strong, focusing on open vascular surgery and adjacent cardiac surgery markets, with a preference for larger deals [33] Question: Concerns regarding XenoSure in China? - Management acknowledged challenges but remains committed to the market, expecting to continue pursuing provincial approvals [38] Question: Clarification on gross margin performance? - The allograft product's strong performance contributed to the gross margin miss, with expectations for improved margins in the second half of the year [60][62] Question: How will the sales force ramp-up impact operating leverage? - Management indicated that new sales representatives are expected to contribute to operating income growth, with a projected 14% increase in H2 [70] Question: Impact of tariffs on guidance? - Tariffs have been factored into guidance, with price increases planned to offset costs associated with tariffs [88] Question: How does exiting the Aleutia agreement impact organic growth? - Exiting the agreement is expected to improve organic growth as the product was declining in sales [91][92]