Q2 2026 Artivion Inc Earnings Call Transcript
Key Points
- Artivion Inc (AORT) received US FDA PMA approval for its AMDS hybrid prosthesis, which is expected to accelerate new account conversion and set sales by eliminating the lengthy IRB review process.
- The company completed the acquisition of Endospan and its Nexus Aortic Arch Stent Graft system ahead of schedule, positioning Artivion Inc (AORT) as the only company globally with a complete portfolio of aortic arch solutions.
- Stent graft revenues grew 12% on a constant currency basis in Q2 2026, an acceleration from the 10% growth in Q1, despite a tougher year-over-year comparison.
- ONIX revenues grew 18% year-over-year on a constant currency basis, driven by global market share gains and compelling clinical data supporting its use in patients under 65.
- The company reported strong long-term clinical data for its SynerGraft pulmonary valve, with a 12-year re-intervention rate of only 3.5%, reinforcing its market leadership and physician confidence.
- Artivion Inc (AORT) reiterated its full-year 2026 guidance, expecting constant currency revenue growth of 7-11% and adjusted EBITDA of $92-99 million, reflecting confidence in its growth trajectory.
- The company is making progress on its Artisan clinical trial for the CIVO LSA product, with 30 patients enrolled and expectations to complete enrollment by mid-2027, potentially unlocking an additional $80 million US market opportunity.
- Adjusted EBITDA margin decreased by approximately 90 basis points year-over-year in Q2 2026, primarily due to increased investments in R&D and costs associated with the Endospan acquisition.
- Free cash flow was negative $12 million in Q2 2026, impacted by $1.5 million in Endospan-related diligence and integration expenses and a $10.2 million payment for contractually required transaction bonuses.
- The company's net leverage ratio increased to 3.1 at the end of Q2 2026, reflecting the $150 million in borrowings drawn to fund the Endospan acquisition, with an additional $25 million AMDS PMA milestone payment due in July.
- BioGlue revenue declined modestly in Q2 2026, and the company continues to face variability due to its stocking distribution business, though it expects mid-single-digit growth for the full year.
- The company noted that the preservation services business had a challenging comparison in Q2 due to recovery from the 2024 cyber incident, and it expects a difficult comp in Q3 before normalizing in Q4.
- Management chose not to raise full-year guidance despite a strong Q2, citing conservatism and the need to maintain flexibility given the challenging Q1 and potential timing shifts in revenue.
- The company acknowledged that the US commercial launch of Nexus is not expected until January 2027, with inconsequential revenue contribution in 2026, and expects the combined results to be even non-neutral for the full year 2027.
Good afternoon, and welcome to the Artivian second-quarter 2026 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. anyone require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded.
I would now like to turn the conference over to Brian Johnston from the Gilmartin Group. Thank you. You may begin.
Good afternoon and thank you for joining the call today. Joining me from our Tivian's management team are Pat Mackin, CEO, and Lance Berry, COO Before we begin, I'd like to make the following statements to comply with the safe harbor requirements of the Private Securities Litigation Reform Act of 1995. Comments made on this call that look forward in time involve risks and uncertainties that are forward-looking statements within the meaning of the Federal Securities, Private Securities Litigation Reform Act of 1995. Includes
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