Vericel Corp Q1 FY2025 earnings call

• The company had a solid start to 2025 with record MACI and total revenue. - MACI Arthro launch shows strong performance indicators, with 400 surgeons trained by April, higher biopsy and implant growth rates for trained surgeons. - NexoBrid revenue continued to progress with over 200% year-over-year growth. - Epicel had lower Q1 revenue but stronger second quarter trends due to biopsies received in Q1. - Plan to begin MACI sales force expansion in the second half of 2025. - Expect relatively similar quarterly operating expenses for the rest of the year, with cash generation expected to inflect moving forward.

Vericel achieved record total net revenue of $52.6 million in Q1 2025. MACI contributed $46.3 million (88% of total revenue), with record first quarter revenue of over $46 million, representing 15% year-over-year growth (adjusted for one fewer selling day, ~17% growth). NexoBrid revenue was $1.3 million, up 207% year-over-year and 31% sequentially. Epicel had $5 million in revenue, lower than anticipated due to high canceled cases and timing of surgeries, but biopsies were the highest since 2023 and second quarter performance is stronger with grafts exceeding first quarter volume.

• Second quarter total company revenue growth expected to be 22% to 25%, with total revenue ~$64 million to $66 million. - MACI expected to have 22% to 24% revenue growth in Q2. - Full year revenue guidance maintained at 20% to 23% growth. - Raised profitability guidance: full year gross margin to 75% and adjusted EBITDA margin to 26%.

• Variability in Epicel revenue due to patient health issues and timing of surgeries. - Trade tariffs are expected to have a negligible impact on the company’s business and margins, but the variability in Epicel revenue remains a risk.

Q: Ryan Zimmerman asked about the market opportunity for femoral condyle and trochlea in MACI Arthro and how it adds to the current market sizing.

A: Nick Colangelo explained the addressable market for femoral condyles and trochlea, with trochlea being a significant potential segment.

Q: Richard Newitter inquired about MACI's reliance on Arthro inflection and margin guidance.

A: Joe Mara stated MACI is assuming contribution from Arthro trends, and margin guidance is driven by revenue levels and expense management.

Q: Josh Jennings asked about acute outcomes for MACI Arthro procedures and cross-selling opportunities.

A: Nick Colangelo mentioned ongoing registry enrollment and cross-selling opportunities with Epicel and NexoBrid sales force.

Q: Caitlin Cronin asked about Salesforce expansion for MACI Arthro and Epicel trends.

A: Nick Colangelo discussed salesforce expansion plans and Epicel trends not being a systemic issue.

Q: Mason Carrico asked about trade war impacts on MACI internationally and Arthro training prioritization.

A: Nick Colangelo mentioned evaluating international expansion and training prioritization through events and synthetic models.