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    VCEL
    Earnings call· Jun 2026(Q2 FY26)

    Vericel Q2 FY26 earnings call VCEL

    Jul 30, 2026 Source

    Executive summary

    Vericel Q2 FY26 — Record Revenue and Raised Full-Year Guidance

    Vericel delivered strong Q2 FY26 results, driven by robust growth in both MACI and Burn Care franchises, leading to record revenue, profitability, and cash flow. The company raised its full-year revenue guidance and announced a $200 million share repurchase program, reflecting confidence in sustained growth and capital allocation strategy. Management emphasized continued investment in growth initiatives and opportunistic capital return.

    Highlights

    5

    • Record Q2 total revenue of more than $77 million, up 22% YoY, exceeding guidance.

    • Record Q2 MACI revenue of more than $65 million, up 23% YoY, driven by double-digit volume growth.

    • Burn Care revenue increased 22% to $12 million, exceeding guidance, with NexoBrid achieving its highest quarterly revenue of over $1.5 million.

    • Generated GAAP net income of $2.2 million for the quarter and over $14 million of free cash flow, ending with $227 million in cash and investments.

    • Raised full-year revenue guidance to $330 million to $340 million, representing over 20% growth at the midpoint.

    Guidance & targets

    12
    CategoryTargetConfidence
    Full-year total revenue
    $330M-$340M
    high materiality
    High
    Full-year MACI revenue
    $284M-$290M
    medium materiality
    High
    Full-year Burn Care revenue
    $46M-$50M
    medium materiality
    High
    Q3 total revenue
    $76.5M-$78.5M
    medium materiality
    High
    Q3 MACI revenue
    ~$65.5M
    medium materiality
    High
    Q3 Burn Care revenue
    ~$12M
    medium materiality
    High
    Full-year gross margin
    ~75%
    medium materiality
    High
    Full-year adjusted EBITDA margin
    ~27%
    medium materiality
    High
    Q3 gross margin
    71%-72%
    low materiality
    High
    Q3 adjusted EBITDA margin
    21%-22%
    low materiality
    High
    MACI U.K. launch
    2027
    medium materiality
    Medium
    MACI Arthro next-gen instruments launch
    2028
    low materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    MACI
    Record second quarter revenue driven by double-digit volume growth and strong execution of strategic initiatives including sales force expansion and MACI Arthro utilization.
    Trailing 4-quarter revenue growth: 23% (vs 19% prior 4 quarters)Double-digit biopsy and implant growthRecord Q2 biopsies, implants, and biopsy and implanting surgeonsSecond highest number of biopsies and biopsy surgeons in any quarter since launchFifth consecutive quarter with MACI growth of 20% or more
    		$65.5 million23%——
    Burn Care
    Strong second quarter performance, above guidance, with Epicel achieving significant H1 revenue and NexoBrid reaching record quarterly revenue and utilization.
    Epicel revenue: $10.4 millionEpicel H1 revenue: >$21 million (second highest 6-month total since launch)NexoBrid revenue: >$1.5 million (highest quarterly revenue since launch)NexoBrid growth vs prior year: >30%NexoBrid growth vs prior quarter: >30%NexoBrid ordering centers: ~80 (cumulative)NexoBrid total hospital unit sales: highest to date
    		$12 million22%——

    Operational metrics

    13
    Total Revenue
    $77.5M22% YoY growth
    Q2 FY26

    Record second quarter total revenue, exceeding guidance.

    GAAP Net Income
    $2.2M
    Q2 FY26

    First time achieving GAAP net income in a second quarter.

    Cash and Investments Balance
    $227MIncreased over $60M vs Q2 FY25 end
    Q2 FY26 end

    Strong balance sheet position following completion of new facility.

    Gross Margin
    73%
    Q2 FY26

    Above guidance for the quarter.

    Adjusted EBITDA Margin
    19%
    Q2 FY26

    Above guidance for the quarter.

    Total Revenue Growth
    26%
    H1 FY26

    Strong performance in the first half of the year.

    Adjusted EBITDA Growth
    47%
    H1 FY26

    Significant profitability growth in the first half of the year.

    Total Revenue Growth
    23%
    Trailing 4 quarters

    Elevated top-tier financial profile.

    Adjusted EBITDA Growth
    ~40%
    Trailing 4 quarters

    Elevated top-tier financial profile.

    Share Repurchase Program
    $200M
    Authorized

    Board authorized share repurchase program to return capital to shareholders.

    MACI Pricing Strategy
    volume and price growth story for the foreseeable future
    Future

    MACI's unique position allows for sustained price increases.

    Epicel Pricing Strategy
    mid-single digits
    Annual

    Epicel typically sees mid-single digit price increases.

    NexoBrid Pricing Strategy
    modest
    Midyear FY26

    NexoBrid had its first modest price increase mid-year.

    What to watch in Q3 FY26

    5

    MACI U.K. regulatory approval

    End of 2026
    CurrentMarketing authorization application submitted in Q2 FY26
    TargetApproval by end of 2026

    Why it matters

    Enables potential MACI launch in the U.K. in 2027, establishing a beachhead for international expansion.

    remains on track to relaunch MACI outside the United States and submitted a MACI marketing authorization application in the U.K. in the second quarter, which, if approved, would enable the company to potentially launch MACI in the U.K. in 2027.

    Q&A highlights

    10

    What is driving the acceleration in MACI's growth, particularly the step-up in the trailing 4-quarter growth rate? Please address price and volume contributions.

    Management attributed MACI's acceleration to an increased sales force, the launch of MACI Arthro, and enhanced commercial execution. The growth is driven by strong biopsy and implant volume increases, coupled with sustained pricing power.

    “it's really a combination of the fact that we increased our MACI sales force. We obviously launched MACI Arthro, which has had an impact, really spent a lot of time on the commercial excellence initiatives that have really elevated the execution of our MACI's commercial team.”

    asked by Richard Newitter · answered by Dominick C. Colangelo

    2 min read7 chapters

    Detailed Narrative

    01

    Strong Q2 Performance and Raised Guidance

    Vericel reported record Q2 total revenue of over $77 million, a 22% increase year-over-year, surpassing guidance. This performance was driven by significant growth in both MACI and Burn Care, leading to GAAP net income and over $14 million in free cash flow. The company raised its full-year revenue guidance to $330 million to $340 million, reflecting strong momentum.

    02

    MACI's Sustained Growth Drivers

    MACI achieved record Q2 revenue of over $65 million, growing 23% year-over-year, marking its fifth consecutive quarter of 20%+ growth. This was attributed to double-digit volume growth, leveraging an expanded sales force, deeper penetration in surgeon practices, and increased utilization of MACI Arthro. The trailing 4-quarter growth accelerated to 23% from 19%.

    03

    Burn Care Franchise Strength

    Burn Care revenue increased 22% to $12 million, exceeding guidance. Epicel revenue reached $10.4 million, with its first-half performance being the second highest in six months since launch. NexoBrid recorded its highest quarterly revenue of over $1.5 million, with increasing utilization and ordering centers.

    04

    Capital Allocation and Share Repurchase

    The company announced a $200 million share repurchase program, reflecting its strong financial position with $227 million in cash and investments and robust cash generation. This program is part of a strategy to maximize shareholder value while continuing to fund internal growth initiatives and pursue M&A opportunities.

    05

    MACI International Expansion and Clinical Development

    Vericel remains on track to relaunch MACI outside the U.S., having submitted a marketing authorization application in the U.K. in Q2 for a potential 2027 launch. Enrollment has also begun in the MACI ankle MASCOT study, expanding its clinical development.

    06

    MACI Arthro Adoption and Clinical Data

    MACI Arthro continues to drive growth, particularly in smaller femoral condyle defects, with some use in trochlea and patella. Trained surgeons using MACI Arthro show higher activity levels. Recent publications highlight excellent long-term outcomes for arthroscopically-administered MACI and anticipated positive short-term outcomes for MACI Arthro, supporting increased uptake.

    07

    Sales Force Effectiveness

    The recent MACI sales force expansion has shown immediate contributions, with new representatives driving high biopsy growth rates in their territories. The company expects sustained upside from these reps, particularly as they enter their second and third years, contributing to continued growth beyond 2026.

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