Artivion’s second quarter was marked by significant product momentum, as robust sales of On-X mechanical heart valves and stent grafts drove revenue growth well above Wall Street expectations. Management attributed the quarter’s outperformance to accelerating adoption of the On-X valve—particularly in the U.S.—and the successful initial launch of the AMDS stent graft following FDA approval. CEO Pat Mackin noted, “Our Q2 performance was enabled by continued growth across our product portfolio with exceptional strength in U.S. On-X sales.” Management also highlighted the benefits of cross-selling between new and existing products, and early progress reducing the tissue processing backlog created by last year’s cybersecurity event.
Is now the time to buy AORT? Find out in our full research report (it’s free).
Artivion (AORT) Q2 CY2025 Highlights:
- Revenue: $113 million vs analyst estimates of $108.2 million (15.3% year-on-year growth, 4.4% beat)
- Adjusted EPS: $0.24 vs analyst estimates of $0.13 (92% beat)
- Adjusted EBITDA: $24.76 million vs analyst estimates of $21.1 million (21.9% margin, 17.4% beat)
- The company lifted its revenue guidance for the full year to $439 million at the midpoint from $429 million, a 2.3% increase
- EBITDA guidance for the full year is $88.5 million at the midpoint, above analyst estimates of $86.63 million
- Operating Margin: 7.4%, in line with the same quarter last year
- Sales Volumes rose 19.4% year on year (10.9% in the same quarter last year)
- Market Capitalization: $2.06 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Artivion’s Q2 Earnings Call
-
Bill Plovanic (Canaccord Genuity) asked about AMDS onboarding metrics and cross-selling benefits. CEO Pat Mackin explained that “there’s about 1,000 accounts that do acute Type A in the U.S.” and that cross-selling from AMDS training was “more profound than I thought it would be.”
-
John McAuley (Stifel) sought detail on the moving pieces behind updated guidance. CFO Lance Berry cited stronger-than-expected Q2 growth, currency tailwinds, and increased confidence in second-half revenue from AMDS and tissue backlog normalization.
-
John McAuley (Stifel) followed up on AMDS physician adoption, asking about ramp dynamics. Mackin described the device as “super simple” to use, which has led to rapid integration into clinical practice and minimal training hurdles.
-
Lake Street Capital (Nelson for Frank Takkinen) inquired about salesforce needs for the AMDS ramp and Arcevo trial timelines. Mackin indicated no immediate plans for salesforce expansion, with most focus on top cardiac centers, and expects the Arcevo trial to enroll its first patient by year-end.
-
Destiny Hance (Ladenburg Thalmann) asked about pricing trends. Berry noted that Artivion’s devices are “life-saving and not super high volume,” allowing for modest inflationary price increases rather than material pricing pressure.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be watching (1) the pace of AMDS hospital onboarding and cross-selling effects with On-X valves, (2) progress toward clearing the tissue processing backlog and achieving consistent mid-single-digit growth in that segment, and (3) execution of pivotal clinical trials for Arcevo and progress on NEXUS regulatory milestones. The ability to maintain margin expansion and effective capital deployment will also be key indicators.
Artivion currently trades at $42.86, up from $32.70 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
The Best Stocks for High-Quality Investors
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
