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FOR IMMEDIATE RELEASE
Contacts: | | | | | |
| Artivion | Gilmartin Group LLC |
| Lance A. Berry | Brian Johnston / Laine Morgan |
| Executive Vice President, | Phone: 332-895-3222 |
| Chief Operating Officer & | investors@artivion.com |
| Chief Financial Officer | |
| Phone: 770-419-3355 | |
Artivion Reports Fourth Quarter and Full Year 2025 Financial Results
Fourth Quarter Highlights:
•GAAP revenue was $116.0 million in the fourth quarter of 2025 versus $97.3 million in the fourth quarter of 2024. For the full year, GAAP revenue was $441.3 million versus $388.5 million for the full year of 2024. GAAP net income was $2.4 million, or $0.05 per fully diluted share, in the fourth quarter of 2025, versus a net loss of $(16.5) million, or $(0.39) per fully diluted share in the fourth quarter of 2024. For the full year 2025, GAAP net income was $9.8 million, versus a net loss of $(13.4) million for the full year 2024.
•Adjusted revenue1 was $118.3 million in the fourth quarter of 2025, an increase of 18% on an adjusted constant currency basis compared to the fourth quarter of 2024.
•Adjusted revenue1 was $443.6 million for the full year 2025, an increase of 13% on an adjusted constant currency basis compared to the full year of 2024.
•Non-GAAP net income was $8.6 million, or $0.17 per fully diluted share in the fourth quarter of 2025. For the full year, non-GAAP net income was $29.7 million.
•Adjusted EBITDA increased 29% to $22.7 million in the fourth quarter of 2025 compared to $17.6 million in the fourth quarter of 2024. For the full year adjusted EBITDA increased 26% to $89.6 million.
•Positive new clinical data from Endospan’s NEXUS TRIOMPHE IDE trial presented at the STS Annual Meeting demonstrate high patient survival with low morbidity.
•Filed the fourth and final module of the pre-market approval application (PMA) to the FDA for the AMDS Hybrid Prothesis.
1 Adjusted revenue excludes a $2.3 million reserve for estimated payback to the Italian government for fiscal years 2019 through 2025 as a result of legislation adopted in Italy that would require medical device manufacturers to repay previously paid amounts to the extent that such expenditures ostensibly exceed annual regional maximum ceilings. In fiscal 2025, the Company recorded a liability of $2.3 million as a reduction to revenue as an estimate of the amount that the Company may be required to repay for certain years after 2018. See “Non-GAAP Financial Measures” for important information about our use of non-GAAP measures.
ATLANTA, GA – (February 12, 2026) – Artivion, Inc. (NYSE: AORT), a leading cardiac and vascular surgery company focused on aortic disease, today announced financial results for the fourth quarter and year ended December 31, 2025.
“We are very pleased with our strong performance for the full year 2025 as we drove 13% adjusted constant currency revenue growth and 26% adjusted EBITDA growth, while making substantial progress in advancing our Aortic focused product development pipeline. Our success continued through the fourth quarter, during which revenue growth was driven by year-over-year growth in stent grafts of 44%, On-X of 25%, and preservation services of 6%, all compared to the fourth quarter of 2024. On an adjusted constant currency basis, fourth quarter year-over-year stent grafts, On-X, and preservation services, grew 36%, 24%, and 6% respectively,” said Pat Mackin, Chairman, President, and Chief Executive Officer.
Mr. Mackin continued, “We were also pleased to see Endospan present positive new clinical data for its NEXUS TRIOMPHE IDE trial at the Society of Thoracic Surgery Annual Meeting. These results highlighted 94% patient survival from lesion-related death with 91% of patients remaining free from disabling stroke at 1-year post treatment in this high-risk patient group. Also at STS, we saw positive new 2-year data from the AMDS PERSEVERE IDE trial, which further demonstrate persistent clinical benefits of our novel AMDS technology.”
Mr. Mackin concluded, “Entering 2026, we expect to build on our strong financial performance and continued clinical and operational achievements, reinforcing our confidence in our ability to deliver sustained double-digit constant currency revenue growth and adjusted EBITDA growth at twice the pace of constant currency revenue growth over the long-term.”
Fourth Quarter 2025 Financial Results
Total revenues for the fourth quarter of 2025 were $116.0 million compared to $97.3 million in the fourth quarter of 2024. Adjusted revenues1 for the fourth quarter of 2025 were $118.3 million, an increase of 18% on an adjusted constant currency basis.
Net income for the fourth quarter of 2025 was $2.4 million, or $0.05 per fully diluted common share, compared to net loss of $(16.5) million, or $(0.39) per fully diluted common share for the fourth quarter of 2024. Non-GAAP net income for the fourth quarter of 2025 was $8.6 million, or $0.17 per fully diluted common share, compared to non-GAAP net income of $0.2 million, or $0.00 per fully diluted common share for the fourth quarter of 2024. Non-GAAP net income for the fourth quarter of 2025 includes pretax losses related to foreign currency revaluation of less than $0.1 million.
Full Year 2025 Financial Results
Total revenues for 2025 were $441.3 million compared to $388.5 million for the full year of 2024. Adjusted revenues1 for the full year of 2025 were $443.6 million, an increase of 13% on an adjusted constant currency basis.
Net income for 2025 was $9.8 million, or $0.21 per fully diluted common share, compared to net loss of $(13.4) million, or $(0.32) per fully diluted common share for the full year of 2024. Non-GAAP net income for the full year of 2025 was $29.7 million, or $0.63 per fully diluted common share, compared to non-GAAP net income of $10.8 million, or $0.25 per fully diluted common share for the full year of 2024. Non-GAAP net income for the full year of 2025 includes pretax gains related to foreign currency revaluation of $7.2 million.
2026 Financial Outlooks
Artivion expects revenues for the full year 2026 to be in the range of $486 to $504 million, representing growth of 10% to 14% on an adjusted constant currency basis compared to 2025 adjusted revenues1. This guidance contemplates currency to be approximately neutral for the full year.
Additionally, Artivion expects adjusted EBITDA growth of between 18% and 22% for the full year 2026 compared to 2025, resulting in an expected range of $105 to $110 million for 2026.
The Company’s financial performance for 2026 and future periods is subject to the risks identified below.
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, including non-GAAP adjusted revenue, non-GAAP net income, EBITDA, adjusted EBITDA, non-GAAP general, administrative, and marketing expenses, and free cash flows. Investors should consider this non-GAAP information in addition to, and not as a substitute for, financial measures prepared in accordance with US GAAP. In addition, this non-GAAP financial information may not be the same as similar measures presented by other companies. The Company’s non-GAAP adjusted revenues reflect an adjustment to GAAP revenue for the impact of certain estimated Italian payback obligations recorded in the fourth quarter of 2025 for fiscal years 2019 through 2025. The Company’s non-GAAP adjusted constant currency growth rates compare current year revenues to prior period revenues adjusted for the impact of changes in currency exchange. The Company’s non-GAAP net income, EBITDA, adjusted EBITDA, general, administrative, and marketing, and free cash flows results primarily exclude (as applicable) the impact of certain estimated Italian payback reserves recorded in the fourth quarter of 2025 for fiscal years 2019 through 2025, depreciation and amortization expense, interest income and expense, non-cash compensation expense, loss or gain on foreign currency revaluation, income tax expense or benefit, expense/(income) for business development, integration, and severance, losses on inducement/extinguishment of debt, non-cash interest expense, capital expenditures, and other non-recurring items.
The Company generally uses non-GAAP financial measures to facilitate management’s review of the operational performance of the Company and as a basis for strategic planning. Company management believes that these non-GAAP presentations provide useful information to investors regarding unusual non-operating transactions, the operating expense structure of the Company’s existing and acquired operations, without regard to its on-going efforts to acquire additional complementary products and businesses, and the transaction and integration expenses incurred in connection with recently acquired and divested product lines, and the operating expense structure excluding fluctuations resulting from foreign currency revaluation and non-cash compensation expense. Company management believes adjusted revenue is a useful metric as it eliminates the impact of the estimated Italian payback obligations recorded in the fourth quarter of 2025 for fiscal years 2019 through 2025 and allows a more direct comparison of our business performance between periods. The Company believes it is useful to exclude this revenue impact and certain expenses from non-GAAP financial measures because such amounts in any specific period may not directly correlate to the underlying performance of its business operations or can vary significantly between periods as a result of factors such as impact of recent acquisitions, non-cash expense related to amortization of previously acquired tangible and intangible assets, and any related adjustments to their carrying values. The Company has adjusted for the impact of changes in currency exchange from certain revenues to evaluate comparable product growth rates on a constant currency basis. The Company does, however, expect to incur similar types of expenses and currency exchange impacts in the future, and this non-GAAP financial information should not be viewed as a statement or indication that these types of expenses will not recur. Company
management encourages investors to review the Company’s consolidated financial statements and publicly filed reports in their entirety, including the reconciliation of GAAP to non-GAAP financial measures.
The Company’s adjusted EBITDA expectations for fiscal 2026 exclude potential charges or gains that may be recorded during the fiscal year, relating to, among other things, non-cash compensation; expense/(income) for business development, integration, and severance; losses on inducement/extinguishment of debt; and foreign currency revaluations. The Company does not attempt to provide reconciliations of forward-looking adjusted EBITDA to the comparable GAAP measure because the impact and timing of these potential charges or gains are inherently uncertain and difficult to predict and are unavailable without unreasonable efforts. In addition, the Company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a material impact on GAAP measures of the Company’s financial performance.
Webcast and Conference Call Information
The Company will hold a teleconference call and live webcast on February 12, 2026, at 4:30 p.m. ET to discuss the results, followed by a question-and-answer session. To participate in the conference call dial 201-689-8261 a few minutes prior to 4:30 p.m. ET. The teleconference replay will be available approximately one hour following the completion of the event and can be accessed by calling (toll free) 877-660-6853 or 201-612-7415. The conference number for the replay is 13758212.
The live webcast and replay can be accessed by going to the Investors section of the Artivion website at www.Artivion.com and selecting the heading Webcasts & Presentations.
About Artivion, Inc.
Headquartered in suburban Atlanta, Georgia, Artivion, Inc., is a medical device company focused on developing simple, elegant solutions that address cardiac and vascular surgeons’ most difficult challenges in treating patients with aortic diseases. Artivion’s four major groups of products include: aortic stent grafts, surgical sealants, On-X mechanical heart valves, and implantable cardiac and vascular human tissues. Artivion markets and sells products in more than 100 countries worldwide. For additional information about Artivion, visit our website, www.Artivion.com.
Forward-Looking Statements
Statements made in this press release that look forward in time or that express management's beliefs, expectations, or hopes are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the views of management at the time such statements are made. These statements include, but are not limited to, our beliefs and expectations about our revenue, year-over-year growth and growth drivers, earnings, currency impacts, and other financial measures and related information; our anticipated capital needs and capital structure; our beliefs about our competitive advantages and market opportunities; the expected impact on our business of the dynamic trade policy and tariff environment; our expected product mix and business strategy; anticipated quarterly fluctuations in our business; the benefits of receiving IDE approval to initiate our Arcevo LSA pivotal trial; the expected clinical benefits of our AMDS technology as a result of data from our AMDS PERSEVERE and PROTECT trials; our ability to scale our business and expand adjusted EBITDA margins; that our revenues for the full year 2026 will be in the range of $486 to $504 million, representing revenue growth of between 10% to 14% compared to 2025 on an adjusted constant currency basis; that we expect non-GAAP adjusted EBITDA to increase between 18% and 22% for the full year 2026 compared to 2025, resulting in non-GAAP adjusted EBITDA in the range of $105 to $110 million in 2025; and our belief that we will be able to grow adjusted EBITDA at twice the rate of constant currency revenue growth. These forward-looking statements are subject to a number of risks, uncertainties, estimates and assumptions that may cause actual results to differ materially from current expectations, including, but not limited to, the unpredictability of the timing and outcome of regulatory decisions and other regulatory developments; risks relating to our international operations; the benefits anticipated from our 2024 credit facility and the 2025 amendments thereto, the Ascyrus Medical LLC transaction and Endospan agreements, and our operational improvements in our tissue and stent graft business may not be achieved at all or at the levels we anticipate or had originally anticipated; the benefits anticipated from our clinical trials and regulatory approvals may not be achieved or achieved on our anticipated timelines; and the benefits anticipated from our expansion into APAC and LATAM may not be achieved or achieved on our anticipated timelines. These risks and uncertainties include the risk factors detailed in our Securities and Exchange Commission filings, including our Form 10-K for the year ended December 31, 2025. Artivion does not undertake to update its forward-looking statements, whether as a result of new information, future events, or otherwise.
Artivion, Inc. and Subsidiaries
Consolidated Statements of Operations and Comprehensive Income (Loss)
In Thousands, Except Per Share Data
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
December 31, | | Year Ended
December 31, |
| 2025 | | 2024 | | 2025 | | 2024 |
| (Unaudited) | | (Unaudited) | | |
| Revenues: | | | | | | | |
| Products | $ | 91,918 | | | $ | 74,662 | | | $ | 345,825 | | | $ | 290,230 | |
| Preservation services | 24,074 | | | 22,646 | | | 95,505 | | | 98,307 | |
| Total revenues | 115,992 | | | 97,308 | | | 441,330 | | | 388,537 | |
| | | | | | | |
| Cost of products and preservation services: | | | | | | | |
| Products | 31,392 | | | 26,678 | | | 112,781 | | | 99,385 | |
| Preservation services | 11,457 | | | 9,128 | | | 44,322 | | | 40,371 | |
| Total cost of products and preservation services | 42,849 | | | 35,806 | | | 157,103 | | | 139,756 | |
| | | | | | | |
| Gross margin | 73,143 | | | 61,502 | | | 284,227 | | | 248,781 | |
| | | | | | | |
| Operating expenses: | | | | | | | |
| General, administrative, and marketing | 56,841 | | | 51,429 | | | 226,491 | | | 181,455 | |
| Research and development | 9,122 | | | 7,404 | | | 30,991 | | | 28,452 | |
| Total operating expenses | 65,963 | | | 58,833 | | | 257,482 | | | 209,907 | |
| Gain from sale of non-financial assets | (3,500) | | | — | | | (7,000) | | | — | |
| Operating income | 10,680 | | | 2,669 | | | 33,745 | | | 38,874 | |
| | | | | | | |
| Interest expense | 5,530 | | | 9,742 | | | 26,582 | | | 34,277 | |
| Interest income | (311) | | | (374) | | | (763) | | | (1,467) | |
| Losses on inducement/extinguishment of debt | — | | | — | | | 2,664 | | | 3,669 | |
| Other (income) expense, net | (1,076) | | | 9,903 | | | (9,518) | | | 9,909 | |
| | | | | | | |
| Income (loss) before income taxes | 6,537 | | | (16,602) | | | 14,780 | | | (7,514) | |
| Income tax expense (benefit) | 4,111 | | | (119) | | | 5,012 | | | 5,845 | |
| | | | | | | |
| Net income (loss) | $ | 2,426 | | | $ | (16,483) | | | $ | 9,768 | | | $ | (13,359) | |
| | | | | | | |
| Income (loss) per share: | | | | | | | |
| Basic | $ | 0.05 | | | (0.39) | | | $ | 0.22 | | | $ | (0.32) | |
| Diluted | $ | 0.05 | | | $ | (0.39) | | | $ | 0.21 | | | $ | (0.32) | |
| | | | | | | |
| Weighted-average common shares outstanding: | | | | | | | |
| Basic | 47,560 | | | 41,882 | | | 45,335 | | | 41,676 | |
| Diluted | 49,601 | | | 41,882 | | | 47,162 | | | 41,676 | |
| | | | | | | |
| Net income (loss) | $ | 2,426 | | | $ | (16,483) | | | $ | 9,768 | | | $ | (13,359) | |
| Other comprehensive income (loss): | | | | | | | |
| Foreign currency translation adjustments, net of tax | (432) | | | (15,399) | | | 22,208 | | | (12,917) | |
| Comprehensive income (loss) | $ | 1,994 | | | $ | (31,882) | | | $ | 31,976 | | | $ | (26,276) | |
Artivion, Inc. and Subsidiaries
Consolidated Balance Sheets
In Thousands
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| (Unaudited) | | |
| ASSETS | | | |
| | | |
| Current assets: | | | |
| Cash and cash equivalents | $ | 64,908 | | | $ | 53,463 | |
| Trade receivables, net | 89,758 | | | 79,462 | |
| Other receivables | 13,921 | | | 6,431 | |
| Inventories | 92,427 | | | 79,766 | |
| Deferred preservation costs | 54,531 | | | 51,701 | |
| Prepaid expenses and other | 42,537 | | | 19,257 | |
| | | |
| Total current assets | 358,082 | | | 290,080 | |
| | | |
| Goodwill | 254,091 | | | 240,958 | |
| Acquired technology, net | 123,664 | | | 128,051 | |
| Operating lease right-of-use assets, net | 34,701 | | | 39,726 | |
| Property and equipment, net | 64,988 | | | 36,403 | |
| Other intangibles, net | 32,831 | | | 28,332 | |
| Deferred tax assets, net | 1,201 | | | 1,068 | |
| Other long-term assets | 15,238 | | | 24,483 | |
| | | |
| Total assets | $ | 884,796 | | | $ | 789,101 | |
Artivion, Inc. and Subsidiaries
Consolidated Balance Sheets
In Thousands, Except Par Value
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| (Unaudited) | | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | |
| | | |
| Current liabilities: | | | |
| Accounts payable | $ | 16,042 | | | $ | 17,971 | |
| Accrued compensation | 22,484 | | | 18,342 | |
| Accrued expenses | 16,447 | | | 11,834 | |
| Accrued interest | 4,815 | | | 8,170 | |
| Taxes payable | 7,489 | | | 2,934 | |
| Accrued procurement fees | 3,436 | | | 1,704 | |
| Current portion of contingent consideration | 20,690 | | | — | |
| Current maturities of operating leases | 4,649 | | | 4,489 | |
| Current portion of finance lease obligations | 726 | | | 601 | |
| Current portion of long-term debt, net | — | | | 195 | |
| Other current liabilities | 4,778 | | | 583 | |
| | | |
| Total current liabilities | 101,556 | | | 66,823 | |
| | | |
| Long-term debt, net | 215,114 | | | 314,152 | |
| Non-current contingent consideration | 39,890 | | | 52,880 | |
| Non-current maturities of operating leases | 34,427 | | | 39,988 | |
| Deferred tax liabilities, net | 24,308 | | | 20,183 | |
| Deferred compensation liability | 9,464 | | | 7,977 | |
| Non-current finance lease obligations | 2,698 | | | 2,833 | |
| Other long-term liabilities | 9,107 | | | 8,065 | |
| | | |
| Total liabilities | 436,564 | | | 512,901 | |
| | | |
| Commitments and contingencies | | | |
| | | |
| Stockholders’ equity: | | | |
| | | |
Preferred stock $0.01 par value per share, 5,000 shares authorized, no shares issued | — | | | — | |
Common stock $0.01 par value per share, 75,000 shares authorized, 49,330 and 43,432 shares issued as of December 31, 2025 and 2024, respectively | 493 | | | 434 | |
| Additional paid-in capital | 516,604 | | | 376,607 | |
| Retained deficit | (51,498) | | | (61,266) | |
| Accumulated other comprehensive loss | (2,719) | | | (24,927) | |
Treasury stock at cost, 1,487 shares as of December 31, 2025 and 2024 | (14,648) | | | (14,648) | |
| | | |
| Total stockholders’ equity | 448,232 | | | 276,200 | |
| | | |
| Total liabilities and stockholders’ equity | $ | 884,796 | | | $ | 789,101 | |
Artivion, Inc. and Subsidiaries
Consolidated Statement of Cash Flows
In Thousands
| | | | | | | | | | | | |
| Year Ended December 31, | |
| 2025 | | 2024 | |
| (Unaudited) | | | |
| Net cash flows from operating activities: | | | | |
| Net income (loss) | $ | 9,768 | | | $ | (13,359) | | |
| | | | |
| Adjustments to reconcile net income (loss) to net cash from operating activities: | | | | |
| Depreciation and amortization | 22,458 | | | 24,205 | | |
| Non-cash compensation | 24,385 | | | 14,242 | | |
| Non-cash lease expense | 5,170 | | | 4,915 | | |
| Write-down of inventories and deferred preservation costs | 4,900 | | | 4,434 | | |
| Non-cash interest expense | 1,705 | | | 3,866 | | |
| Deferred income taxes | 37 | | | (1,511) | | |
| Change in fair value of contingent consideration | 7,700 | | | (11,010) | | |
| Endospan fair value adjustments | (2,337) | | | 4,329 | | |
| Losses on inducement/extinguishment of debt | 2,664 | | | 3,669 | | |
| Gain on sale of non-financial assets | (7,000) | | | — | | |
| Other | (7,409) | | | 5,699 | | |
| | | | |
| Changes in operating assets and liabilities: | | | | |
| Receivables | (7,269) | | | (15,395) | | |
| Inventories and deferred preservation costs | (15,277) | | | (6,137) | | |
| Prepaid expenses and other assets | (1,798) | | | (5,209) | | |
| Accounts payable, accrued expenses, and other liabilities | 2,183 | | | 9,498 | | |
| Net cash flows provided by operating activities | 39,880 | | | 22,236 | | |
| | | | |
| Net cash flows from investing activities: | | | | |
| Capital expenditures | (39,041) | | | (11,188) | | |
| Payments under Endospan agreements | (8,000) | | | (17,000) | | |
| Proceeds from sale of non-financial assets, net | 5,000 | | | — | | |
| Net cash flows used in investing activities | (42,041) | | | (28,188) | | |
| | | | |
| Net cash flows from financing activities: | | | | |
| Proceeds from issuance of long-term debt | — | | | 184,000 | | |
| Proceeds from revolving credit facility | — | | | 28,500 | | |
| Repayment of debt | (210) | | | (211,831) | | |
| Proceeds from exercise of stock options and issuance of common stock | 13,074 | | | 5,728 | | |
| Payment of debt issuance costs | (1,750) | | | (2,544) | | |
| Proceeds from financing insurance premiums | 3,117 | | | — | | |
| Principal payments on short-term notes payable | (2,250) | | | (1,027) | | |
| Other | (699) | | | (623) | | |
| Net cash flows provided by financing activities | 11,282 | | | 2,203 | | |
| | | | |
| Effect of exchange rate changes on cash and cash equivalents | 2,324 | | | (1,728) | | |
| Increase (decrease) in cash and cash equivalents | 11,445 | | | (5,477) | | |
| | | | |
| Cash and cash equivalents, beginning of year | 53,463 | | | 58,940 | | |
| Cash and cash equivalents, end of year | $ | 64,908 | | | $ | 53,463 | | |
Artivion, Inc. and Subsidiaries
Financial Highlights
In Thousands
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
December 31, | | Year Ended
December 31, |
| 2025 | | 2024 | | 2025 | | 2024 |
| Products: | | | | | | | |
| Aortic stent grafts | $ | 43,343 | | | $ | 30,145 | | | $ | 159,371 | | | $ | 123,081 | |
| On-X | 27,797 | | | 22,178 | | | 101,740 | | | 83,982 | |
| Surgical sealants | 20,315 | | | 19,935 | | | 76,602 | | | 73,898 | |
Other (1) | 463 | | | 2,404 | | | 8,112 | | | 9,269 | |
| Total products | 91,918 | | | 74,662 | | | 345,825 | | | 290,230 | |
| | | | | | | |
| Preservation services | 24,074 | | | 22,646 | | | 95,505 | | | 98,307 | |
| Total revenues | $ | 115,992 | | | $ | 97,308 | | | $ | 441,330 | | | $ | 388,537 | |
| | | | | | | |
| North America | 58,065 | | | 49,261 | | | 221,742 | | | 197,940 | |
| Europe, the Middle East, and Africa | 39,386 | | | 33,362 | | | 151,368 | | | 131,518 | |
| Asia Pacific | 12,668 | | | 9,574 | | | 44,250 | | | 37,202 | |
| Latin America | 5,873 | | | 5,111 | | | 23,970 | | | 21,877 | |
| Total revenues | $ | 115,992 | | | $ | 97,308 | | | $ | 441,330 | | | $ | 388,537 | |
(1) 2025 Other revenue includes reduction in revenue from Italian government payback reserves of $2.3 million.
Artivion, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP
Revenues
$ In Thousands
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues for the
Three Months Ended
December 31, | | Percent
Change
From Prior
Year |
| 2025 | | 2024 | |
| US GAAP | | Italian Payback Measure (2) | | Adjusted Revenue | | US GAAP | | Exchange Rate Effect | | Constant Currency | | Adjusted Constant Currency |
| Products: | | | | | | | | | | | | | |
| Aortic stent grafts | $ | 43,343 | | | $ | — | | | $ | 43,343 | | | $ | 30,145 | | | $ | 1,842 | | | $ | 31,987 | | | 36% |
| On-X | 27,797 | | | — | | | 27,797 | | | 22,178 | | | 296 | | | 22,474 | | | 24% |
| Surgical sealants | 20,315 | | | — | | | 20,315 | | | 19,935 | | | 399 | | | 20,334 | | | —% |
| Other | 463 | | | 2,313 | | | 2,776 | | | 2,404 | | | 5 | | | 2,409 | | | 15% |
| Total products | 91,918 | | | 2,313 | | | 94,231 | | | 74,662 | | | 2,542 | | | 77,204 | | | 22% |
| | | | | | | | | | | | | |
| Preservation services | 24,074 | | — | | | 24,074 | | | 22,646 | | (10) | | | 22,636 | | | 6% |
| Total | $ | 115,992 | | | $ | 2,313 | | | $ | 118,305 | | | $ | 97,308 | | | $ | 2,532 | | | $ | 99,840 | | | 18% |
| | | | | | | | | | | | | |
| North America | 58,065 | | | — | | | 58,065 | | | 49,261 | | | (19) | | | 49,242 | | | 18% |
| Europe, the Middle East, and Africa | 39,386 | | | 2,313 | | | 41,699 | | | 33,362 | | | 2,291 | | | 35,653 | | | 17% |
| Asia Pacific | 12,668 | | | — | | | 12,668 | | | 9,574 | | | — | | | 9,574 | | | 32% |
| Latin America | 5,873 | | | — | | | 5,873 | | | 5,111 | | | 260 | | | 5,371 | | | 9% |
| Total | $ | 115,992 | | | $ | 2,313 | | | $ | 118,305 | | | $ | 97,308 | | | $ | 2,532 | | | $ | 99,840 | | | 18% |
(2) Reduction in revenue from Italian government payback reserves.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues for the
Year Ended
December 31, | | Percent
Change
From Prior
Year |
| 2025 | | 2024 | |
| US GAAP | | Italian Payback Measure (2) | | Adjusted Revenue | | US GAAP | | Exchange Rate Effect | | Constant Currency | | Adjusted Constant Currency |
| Products: | | | | | | | | | | | | | |
| Aortic stent grafts | $ | 159,371 | | | $ | — | | | $ | 159,371 | | | $ | 123,081 | | | $ | 2,701 | | | $ | 125,782 | | | 27% |
| On-X | 101,740 | | | — | | | 101,740 | | | 83,982 | | | 328 | | | 84,310 | | | 21% |
| Surgical sealants | 76,602 | | | — | | | 76,602 | | | 73,898 | | | 462 | | | 74,360 | | | 3% |
| Other | 8,112 | | | 2,313 | | | 10,425 | | | 9,269 | | | 12 | | | 9,281 | | | 12% |
| Total products | 345,825 | | | 2,313 | | | 348,138 | | | 290,230 | | | 3,503 | | | 293,733 | | | 19% |
| | | | | | | | | | | | | |
| Preservation services | 95,505 | | | — | | | 95,505 | | | 98,307 | | | (96) | | | 98,211 | | | (3)% |
| Total | $ | 441,330 | | | $ | 2,313 | | | $ | 443,643 | | | $ | 388,537 | | | $ | 3,407 | | | $ | 391,944 | | | 13% |
| | | | | | | | | | | | | |
| North America | 221,742 | | | — | | | 221,742 | | | 197,940 | | | (216) | | | 197,724 | | | 12% |
| Europe, the Middle East, and Africa | 151,368 | | | 2,313 | | | 153,681 | | | 131,518 | | | 4,221 | | | 135,739 | | | 13% |
| Asia Pacific | 44,250 | | | — | | | 44,250 | | | 37,202 | | | — | | | 37,202 | | | 19% |
| Latin America | 23,970 | | | — | | | 23,970 | | | 21,877 | | | (598) | | | 21,279 | | | 13% |
| Total | $ | 441,330 | | | $ | 2,313 | | | $ | 443,643 | | | $ | 388,537 | | | $ | 3,407 | | | $ | 391,944 | | | 13% |
(2) Reduction in revenue from Italian government payback reserves.
Artivion, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP
General, Administrative, and Marketing Expense, EBITDA, Adjusted EBITDA, and Free Cash Flows
In Thousands
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | |
| Three Months Ended
December 31, | | Year Ended
December 31, |
| 2025 | | 2024 | | 2025 | | 2024 |
| Reconciliation of G&A expenses, GAAP to adjusted G&A, non-GAAP: | | | | | | | |
| General, administrative, and marketing expense, GAAP | $ | 56,841 | | | $ | 51,429 | | | $ | 226,491 | | | $ | 181,455 | |
| Business development, integration, and severance | 6,260 | | | 1,297 | | | 9,478 | | | (10,626) | |
| Cybersecurity incident, net of recoveries | (2,880) | | | 2,602 | | | 3,541 | | | 2,602 | |
| Adjusted G&A, non-GAAP | $ | 53,461 | | | $ | 47,530 | | | $ | 213,472 | | | $ | 189,479 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | |
| Three Months Ended
December 31, | | Year Ended
December 31, |
| 2025 | | 2024 | | 2025 | | 2024 |
| Reconciliation of net income (loss), GAAP and EBITDA, non-GAAP to adjusted EBITDA, non-GAAP: | | | | | | | |
| Net income (loss), GAAP | $ | 2,426 | | | $ | (16,483) | | | $ | 9,768 | | | $ | (13,359) | |
| Adjustments: | | | | | | | |
| Interest expense | 5,530 | | | 9,742 | | | 26,582 | | | 34,277 | |
| Interest income | (311) | | | (374) | | | (763) | | | (1,467) | |
| Income tax expense (benefit) | 4,111 | | | (119) | | | 5,012 | | | 5,845 | |
| Depreciation and amortization | 5,757 | | | 6,295 | | | 22,458 | | | 24,205 | |
| EBITDA, non-GAAP | 17,513 | | | (939) | | | 63,057 | | | 49,501 | |
| | | | | | | |
| Non-cash compensation | 4,083 | | | 2,743 | | | 24,385 | | | 14,242 | |
| Business development, integration, and severance | 5,151 | | | 5,821 | | | 7,141 | | | (6,102) | |
| Cybersecurity incident, net of recoveries | (2,880) | | | 4,583 | | | 4,277 | | | 4,583 | |
| Losses on inducement/extinguishment of debt | — | | | — | | | 2,664 | | | 3,669 | |
| Loss (gain) on foreign currency revaluation | 42 | | | 5,398 | | | (7,236) | | | 5,369 | |
| Gain from sale of non-financial assets | (3,500) | | | — | | | (7,000) | | | — | |
| Italian payback measure | 2,313 | | | — | | | 2,313 | | | — | |
| | | | | | | |
| Adjusted EBITDA, non-GAAP | $ | 22,722 | | | $ | 17,606 | | | $ | 89,601 | | | $ | 71,262 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | |
| Three Months Ended
December 31, | | Year Ended
December 31, |
| 2025 | | 2024 | | 2025 | | 2024 |
| Reconciliation of cash flows from operating activities, GAAP to free cash flows, non-GAAP: | | | | | | | |
| Net cash flows provided by operating activities | $ | 19,560 | | | $ | 10,139 | | | $ | 39,880 | | | $ | 22,236 | |
| Capital expenditures | (27,507) | | | (1,425) | | | (39,041) | | | (11,188) | |
| Free cash flows, non-GAAP | $ | (7,947) | | | $ | 8,714 | | | $ | 839 | | | $ | 11,048 | |
Artivion Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP
Net Income and Diluted Income Per Common Share
In Thousands, Except Per Share Data
(Unaudited) | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
| Three Months Ended
December 31, | | Year Ended
December 31, |
| 2025 | | 2024 | | 2025 | | 2024 |
| GAAP: | | | | | | | |
| Income (loss) before income taxes | $ | 6,537 | | | $ | (16,602) | | | $ | 14,780 | | | $ | (7,514) | |
| Income tax expense (benefit) | 4,111 | | | (119) | | | 5,012 | | | 5,845 | |
| Net income (loss) | $ | 2,426 | | | $ | (16,483) | | | $ | 9,768 | | | $ | (13,359) | |
| | | | | | | |
| Diluted income (loss) per common share | $ | 0.05 | | | $ | (0.39) | | | $ | 0.21 | | | $ | (0.32) | |
| | | | | | | |
| Diluted weighted-average common shares outstanding | 49,601 | | | 41,882 | | | 47,162 | | | 41,676 | |
| | | | | | | |
| Reconciliation of income (loss) before income taxes, GAAP to adjusted income, non-GAAP | | | | | | | |
| Income (loss) before income taxes, GAAP: | $ | 6,537 | | | $ | (16,602) | | | $ | 14,780 | | | $ | (7,514) | |
| Adjustments: | | | | | | | |
| Amortization expense | 3,484 | | | 4,205 | | | 13,775 | | | 15,855 | |
| Business development, integration, and severance | 5,151 | | | 5,821 | | | 7,141 | | | (6,102) | |
| Non-cash interest expense | 326 | | | 2,256 | | | 1,705 | | | 3,866 | |
| Cybersecurity incident, net of recoveries | (2,880) | | | 4,583 | | | 4,277 | | | 4,583 | |
| Losses on inducement/extinguishment of debt | — | | | — | | | 2,664 | | | 3,669 | |
| Gain from sale of non-financial assets | (3,500) | | | — | | | (7,000) | | | — | |
| Italian payback measure | 2,313 | | | — | | | 2,313 | | | — | |
| Adjusted income before income taxes, non-GAAP | 11,431 | | | 263 | | | 39,655 | | | 14,357 | |
| | | | | | | |
| Income tax expense calculated at a tax rate of 25% | 2,858 | | | 66 | | | 9,914 | | | 3,589 | |
| Adjusted net income, non-GAAP | $ | 8,573 | | | $ | 197 | | | $ | 29,741 | | | $ | 10,768 | |
| | | | | | | |
| Reconciliation of diluted income (loss) per common share, GAAP to adjusted diluted income per common share, non-GAAP: | | | | | | | |
| Diluted income (loss) per common share, GAAP: | $ | 0.05 | | | $ | (0.39) | | | $ | 0.21 | | | $ | (0.32) | |
| Adjustments: | | | | | | | |
| Amortization expense | 0.07 | | | 0.10 | | | 0.29 | | | 0.37 | |
| Business development, integration, and severance | 0.11 | | | 0.14 | | | 0.15 | | | (0.14) | |
| Non-cash interest expense | 0.01 | | | 0.05 | | | 0.04 | | | 0.09 | |
| Cybersecurity incident, net of recoveries | (0.06) | | | 0.11 | | | 0.09 | | | 0.11 | |
| Losses on inducement/extinguishment of debt | — | | | — | | | 0.06 | | | 0.09 | |
| Gain from sale of non-financial assets | (0.08) | | | — | | | (0.15) | | | — | |
| Italian payback measure | 0.05 | | | — | | | 0.05 | | | — | |
| Tax effect of non-GAAP adjustments | (0.02) | | | (0.10) | | | (0.13) | | | (0.13) | |
| Effect of 25% tax rate | 0.04 | | | 0.09 | | | 0.02 | | | 0.18 | |
| Adjusted diluted income per common share, non-GAAP | $ | 0.17 | | | $ | — | | | $ | 0.63 | | | $ | 0.25 | |
| | | | | | | |
| Reconciliation of diluted weighted-average common shares outstanding GAAP to diluted weighted-average common shares outstanding, non-GAAP: | | | | | | | |
| Diluted weighted-average common shares outstanding, GAAP: | 49,601 | | | 41,882 | | | 47,162 | | | 41,676 | |
| Adjustments: | | | | | | | |
| Effect of dilutive stock options and awards | — | | | 1,319 | | | — | | | 1,077 | |
| Diluted weighted-average common shares outstanding, non-GAAP | 49,601 | | | 43,201 | | | 47,162 | | | 42,753 | |
