LeMaitre Vascular, Inc. Q4 FY2025 earnings call

• Q4 sales led by graph, Valvetomes, Schuntz; EMEA, APAC, Americas growth. Artograph OUS launch with approvals in 52 countries. RFA growth. 2026 guidance 12% sales growth, 21% adjusted op-income growth. Hanging 2030 planks: produce quality devices, build vascular sales force, go direct in new countries, acquire niche products, focus on profitability, cash flow, dividends. 2026 US price increase had smooth transition, European similar. Manufacturing transfer of Chicago RFA facility to Burlington in 2026. Plan to go direct in Poland in Q4, hiring Polish general manager.

Q4 featured 16% sales growth, 71.7% gross margin, and 47% op-income growth. Sales were led by graph (up 27%), Valvetomes (up 20%), and Schuntz (up 18%). EMEA grew 29%, APAC 20%, and Americas 10%. Artograph grew 29% worldwide with approvals in 52 countries; international sales were $1.9M in Q4 and $4M in 2025, expecting $10M internationally in 2026 contributing $6M to sales growth. RFA vascular grew 19% and RFA cardiac 90% in Q4. Ended 2025 with $359M in cash and securities, free cash flow $74.5M. Q4 organic revenue growth 15% (9% price, 6% unit), gross margin increased 240 basis points to 71.7%, operating income up 47% to $18.8M, EPS 68 cents. 2025 organic revenue growth 14% (9% price, 5% unit), adjusted gross margin 70.4%, adjusted operating margin 26%, adjusted EPS growth 23%.

Anticipate full year 2026 revenue $280M, 12% sales growth, gross margin 72.1%, operating income $77.8M (up 21% adjusted), EPS $2.91 per share (up 22% adjusted). CapEx to ~$11M for manufacturing transfer and new warehouse. Implies constant Euro - US dollar exchange rate 1.18 and 4% yield on invested cash.

In January 2026, cyber incident affected systems and data, but critical systems restored with minimal disruption to sales and manufacturing, estimated impact reflected in 2026 guidance, review ongoing with risks in SEC filings.

Q: Kyle Balser with Roth Capital Partners asked about factors key to operating growth, price increase color, sales rep cadence.

A: George and Dave discussed operating leverage from stable headcount, higher ASPs, manufacturing efficiencies; price increase smoother due to November price list, sales rep growth to 170 - 180 with Poland move.

Q: Rick Wise with Stifel asked about M&A setup, Artograph TAM.

A: George and Dave talked about M&A focus on open vascular and cardiac surgery, Artograph TAM revised to $30M from $8M, growth in Europe.

Q: Michael Petusky with Barrington Research asked about Europe MDR, China update, Valvetomes growth.

A: George discussed MDR approvals, China revenue growth and profitability, Valvetomes growth from focused channel.

Q: Jacob Laniak with Oppenheimer asked about CREST - 2 trial impact, price vs volume breakdown.

A: Dave talked about CREST - 2 trial impact on carotid shunt business, not breaking down price vs volume.

Q: Michael Sarcone with Jefferies asked about gross margin, M&A pipeline.

A: Dorian talked about gross margin progression, M&A pipeline in open vascular and cardiac surgery.

Q: Brett Fishman with KeyBank Capital Markets asked about OUS autograph launch, APAC market.

A: George talked about OUS autograph strong countries, APAC market trends.

Q: Danny Staudter with Citizens JMP asked about RestoreFlow performance, manufacturing transfer impact.

A: George talked about RestoreFlow performance from Ross procedures focus, manufacturing transfer a slight headwind in 2026.

Q: Jim Sidoti with Sidoti & Co asked about tax rate, share count, RestoreFlow Ireland approval, consolidation impact, operating cash flow.

A: Dorian talked about tax rate 23.2%, share count, RestoreFlow Ireland approval in Q3, consolidation not material, operating cash flow Q4: cash from operations 23.1, CapEx 1.8, free cash flow 21.3