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    LMAT
    Earnings call· Jun 2026(Q2 FY26)

    LEMAITRE VASCULAR Q2 FY26 earnings call LMAT

    Aug 4, 2026 Source

    Executive summary

    LeMaitre Vascular Q2 FY26 — Strong Organic Growth Despite Headwinds, Artegraft Drives International Expansion

    LeMaitre Vascular delivered robust organic growth in Q2, primarily fueled by strong Artegraft performance and international expansion, despite facing currency headwinds, Middle East conflict impacts, and supply constraints for cardiac allografts. The company is actively investing in global infrastructure and sales force expansion, while navigating regulatory pathways for key products and addressing supply chain challenges to support future growth.

    Highlights

    5

    • Organic sales grew 10% in Q2, with 7% from price and 3% from units, reaching 12% excluding catheter recall impact.

    • Artegraft sales grew 34% in Q2, accounting for 21% of total sales, with 2026 sales now expected to reach $11 million, up from $4 million in 2025.

    • Gross margin expanded by 210 basis points year-over-year to 72.1% in Q2, driven by higher ASPs and positive product mix.

    • Operating income increased 26% to a record $20.4 million, resulting in a 29% operating margin for the quarter.

    • EMEA and APAC regions both posted strong 18% growth in Q2, contributing to global expansion.

    Concerns

    5

    • Q2 sales underperformed guidance by $1.1 million due to strengthening dollar, Middle East conflict, and cardiac allograft supply issues.

    • Catheter sales were down 11% in Q2 due to recall-driven overstocking in the prior year, impacting overall organic growth.

    • Quick Stick project likely requires a clinical trial, extending the timeline for market entry from quarters to years.

    • Cardiac allograft sales growth is slowing due to anticipated supply constraints, despite a 39% QoQ growth.

    • Full-year organic revenue growth guidance reduced from 12% to 11% due to Q2 results and ongoing headwinds.

    Guidance & targets

    18
    CategoryTargetConfidence
    Full-year 2026 Reported Revenue
    $276.3 million
    high materiality
    High
    Full-year 2026 Reported Revenue Growth
    11%
    high materiality
    High
    Full-year 2026 Organic Revenue Growth
    11%
    high materiality
    High
    Full-year 2026 Gross Margin
    72.4%
    medium materiality
    High
    Full-year 2026 Operating Income
    $76.8 million
    high materiality
    High
    Full-year 2026 Operating Margin
    28%
    medium materiality
    High
    Full-year 2026 Fully Diluted EPS
    $2.89
    high materiality
    High
    Artegraft Sales
    $11 million
    medium materiality
    High
    Artegraft International Approvals
    Korea, Brazil, India
    medium materiality
    High
    Artegraft Japan PMDA Approval (AV indication)
    By 2029/2030
    medium materiality
    Medium
    Artegraft Canada Launch
    September
    low materiality
    High
    Longer Artegraft Sizes Approval Filings
    Q4 2026
    low materiality
    High
    Longer Artegraft Sizes Sales Start
    H2 2027
    low materiality
    High
    Irish RFA Approval
    H1 2027
    low materiality
    High
    RFA Distribution Expansion
    Austria, Holland, Spain
    low materiality
    High
    RFA Distribution Expansion
    Australia, Switzerland
    low materiality
    High
    Sales Rep Count
    170 to 180 reps
    medium materiality
    High
    Polish Go-Direct Launch
    December
    low materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Americas
    Reported growth was impacted by prior-year catheter recall overstocking and Aziyo issues.
    Organic growth (ex-Aziyo): 6%Organic growth (ex-catheters): 8%
    		—5%——
    EMEA
    Strong growth and significant profitability improvement driven by relocalization efforts and Artegraft sales.
    		—18%—70% profitability growth
    APAC
    Strong growth in the region.
    		—18%——

    Operational metrics

    29
    Organic sales growth
    10%
    Q2 FY26

    Overall organic sales growth.

    Organic sales growth (ex-catheters)
    12%
    Q2 FY26

    Organic sales growth excluding the impact of catheter recall-driven overstocking in the prior year.

    Catheter sales growth
    -11%
    Q2 FY26

    Decline due to recall-driven overstocking in Q2 2025.

    Artegraft sales growth
    34%
    Q2 FY26

    Strong growth for the product.

    Artegraft sales as % of total sales
    21%
    Q2 FY26

    Contribution of Artegraft to overall sales.

    International Artegraft sales
    $2.8 millionsequentially from $2.1 million in Q1
    Q2 FY26

    Sequential growth in international Artegraft sales.

    Grafts sales growth
    23%
    Q2 FY26

    Record sales for Grafts.

    Shunts sales growth
    18%
    Q2 FY26

    Record sales for Shunts.

    Patches sales growth
    4%
    Q2 FY26

    Record sales for Patches.

    RFA allograft revenue growth
    17%
    Q2 FY26

    Growth in allograft revenues.

    Cardiac allografts growth
    39%quarter-on-quarter
    Q2 FY26

    Strong growth for cardiac allografts, though growth rate is slowing from expectations due to supply.

    Gross margin
    72.1%+210 bps YoY
    Q2 FY26

    Increase driven by favorable factors.

    Operating expenses
    $30.4 million+5% versus Q2 2025
    Q2 FY26

    Increase resulting from continued hiring restraint.

    Full-time employees
    660vs 658 at June 30, 2025
    as of June 30, 2026

    Marginal increase in employee count.

    Operating income
    $20.4 million+26%
    Q2 FY26

    Record operating income.

    Operating margin
    29%
    Q2 FY26

    Strong operating margin for the quarter.

    Net income
    $17.1 million+24% year-over-year
    Q2 FY26

    Increase in net income.

    Fully diluted EPS
    $0.74+23%
    Q2 FY26

    Increase in fully diluted earnings per share.

    Cash and securities balance
    $376 million+$9 million in the quarter
    as of Q2 FY26

    Increase in cash and securities.

    Capital expenditures
    $2.3 million
    Q2 FY26

    Capital spending incurred.

    Dividends paid
    $5.7 million
    Q2 FY26

    Dividends distributed to shareholders.

    Fully diluted share count
    24.5 million
    Q2 FY26

    Triggered by if-converted accounting for convertible debt.

    Euro rate forecast
    $1.17
    Q2 FY26

    Euro rate forecasted when Q2 guidance was given.

    Euro rate at quarter end
    $1.14
    end of June

    Actual euro rate at the end of Q2, which hurt results.

    Euro rate (current)
    $1.15
    July

    Euro rate as of July, slightly recovered from quarter-end.

    Products with ample supply
    95%
    Q2 FY26

    Percentage of products not facing supply issues, contrasting with cardiac allografts.

    M&A target revenue range (low)
    $15 million
    Q2 FY26

    Lower end of the sweet spot for acquisition targets.

    M&A target revenue range (high)
    $150 million
    Q2 FY26

    Upper end of the sweet spot for acquisition targets.

    Europe segment profitability growth
    70%
    Q2 FY26

    Significant profitability growth in the European segment, intertwined with the relocalization project.

    Industry KPIs

    7
    MetricValueDetails
    Pricing realized price7%%
    New product launch ramp$11MUSD
    Procedure volume growth3%%
    FCF conversion leverage guidance$2.89USD
    Segment franchise organic growth10%%
    Sales force commercial capacity build163reps
    Pivotal trial clinical evidence milestonesClinical trial likely

    Deals & partnerships

    1
    Polish entity (unnamed)Signed a go-direct term sheet to sell direct to hospitals from a Warsaw warehouse.

    Part of the company's 'relocalization' strategy to establish direct connections with worldwide hospital customers.

    Risks & headwinds

    6
    Strengthening U.S. dollarQ2 2026 and H2 2026

    Contributed to $1.1 million Q2 sales miss; 1/3 of Q2 miss and 1/3 of full-year guidance change. Euro rate moved from $1.17 forecast to $1.14 (end June) and $1.15 (July).

    Mitigation: Reflected in updated full-year guidance.

    Middle East war / conflictQ2 2026 and H2 2026

    Contributed to $1.1 million Q2 sales miss; $400,000 of export orders ready but unable to ship.

    Mitigation: Reflected in updated full-year guidance; export business overall expected to be down for the year if unresolved.

    Cardiac allograft supply constraintsQ2 2026 and H2 2026

    Contributed to $1.1 million Q2 sales miss; slowing growth for RFA. Cardiac allografts grew 39% QoQ but below expectations.

    Mitigation: Moving tissue processing to Burlington, MA; exploring bringing on more recovery groups; removed internal purchasing constraints.

    Catheter recall-driven overstocking impactQ2 2026 (prior year comp)

    Catheter sales down 11% in Q2, impacting overall organic growth by 2 percentage points (10% reported vs 12% ex-catheters).

    Mitigation: Believed to be transient, comp will normalize in H2.

    Quick Stick clinical trial requirementMulti-year

    Likely requires a clinical trial, extending timeline for market entry from quarters to years.

    Mitigation: Company is evaluating resource allocation and strategic path forward.

    FDA quality system observationsOngoing

    Additional observations received June 25, 2026, after reaudit of New Jersey facility.

    Mitigation: Company responded July 16; no disruption to production, shipping, or invoicing.

    What to watch in Q3 FY26

    5

    Artegraft Canada Launch

    Next quarter (Q3 FY26)
    CurrentApproved last year, launch set for September.
    TargetSuccessful launch and initial sales data.

    Why it matters

    Indicates successful international expansion for a key growth driver.

    Canada approved Artegraft last year and the launch is set to occur this September.

    Q&A highlights

    7

    How will LeMaitre allocate resources to the Quick Stick project given the likely need for a multi-year clinical trial?

    Management acknowledges the market opportunity for Quick Stick but needs time to decide on resource allocation for a clinical trial, as they are not historically a clinical trial company, despite aspirations for more R&D focus.

    “We're not really a clinical trial company historically, but we do have these aspirations to get a little bit more R&D focused. So I think it will take us a little time to figure that out.”

    asked by Michael Sarcone · answered by George LeMaitre

    3 min read6 chapters

    Detailed Narrative

    01

    Artegraft's Accelerating Momentum and International Expansion

    Artegraft continues to be a significant growth driver, growing 34% in Q2 and contributing 21% of total sales. International sales for Artegraft increased sequentially from $2.1 million in Q1 to $2.8 million in Q2, with full-year 2026 sales now projected at $11 million, a substantial increase from $4 million in 2025. The product received approvals in Vietnam, Morocco, and Turkey in Q2, bringing its global reach to 56 countries, with major approvals expected in Korea, Brazil, and India in 2027. The company is also developing longer Artegraft sizes for leg bypasses in Europe, with approval filings planned for Q4 2026 and sales commencing in H2 2027.

    02

    Strategic Infrastructure and Sales Force Investments

    LeMaitre is undertaking a significant "relocalization" initiative, expanding its global warehouse footprint to enhance customer connections and reduce shipping costs. This includes tripling the primary warehouse in Billerica, Massachusetts, doubling Madrid, and planning expansions in Paris and Toronto, with a total of seven new or larger warehouses opening in 2026/2027. Concurrently, the company is aggressively expanding its sales force, aiming for 170-180 reps by year-end, up from 163 in Q2, with 9 new reps starting in Q3 and 13 open requisitions. This strategy has already yielded significant gross margin expansion in Europe, with segment profitability up 70%.

    03

    Navigating Regulatory and Supply Challenges

    The Quick Stick project faces a potential setback, with the FDA indicating a clinical trial is likely, extending the timeline for market entry to years. Cardiac allograft sales, while growing 39% quarter-on-quarter, are experiencing slowing growth due to anticipated supply constraints, which the company is actively addressing by moving processing to Burlington, Massachusetts, and exploring additional recovery groups. Management emphasized that 95% of their products have ample supply, and they are committed to resolving the allograft issue.

    04

    Geographic Performance and Catheter Impact

    EMEA and APAC regions demonstrated strong growth of 18% each in Q2, while the Americas grew 5%. The Americas' performance was notably impacted by an 11% decline in catheter sales, attributed to recall-driven overstocking in Q2 2025. Excluding catheters, the Americas organic growth would have been 8%, indicating underlying strength in other product lines. The company believes the catheter impact is transient📎 and will normalize📎 in the second half of the year.

    05

    Financial Performance and Outlook Adjustments

    The company reported a 10% organic revenue growth in Q2, driven by 7% price and 3% unit growth, which would have been 12% excluding the catheter impact. Gross margin improved by 210 basis points year-over-year to 72.1%, primarily due to higher ASPs, reduced shipping costs, and a favorable product mix, particularly from Artegraft. Full-year organic revenue guidance was adjusted from 12% to 11% due to Q2 performance, FX headwinds🌐 (euro rate moving from $1.17 forecast to $1.14), and Middle East conflict impacts on export business, which has resulted in $400,000 of unshipped orders.

    06

    FDA Audit and Quality Systems

    Following a 2025 warning letter, the FDA reaudited the New Jersey facility in June 2026. Management believes 3 out of 4 observations from 2025 were adequately addressed. Additional quality system observations were provided on June 25, to which the company responded on July 16, with no disruption to production, shipping, or invoicing. The company continues to prioritize compliance and quality in its manufacturing processes.

    AI-generated summary of the company’s earnings call. Not investment advice.