Vericel Corporation reported fourth‑quarter 2025 results that included $92.9 million in revenue, a 23% year‑over‑year increase driven by a 23% rise in MACI revenue to $84.1 million and a 23% rise in Burn Care revenue to $8.8 million. The company’s flagship product, MACI, accounted for 90% of total revenue and continued to dominate the sports‑medicine market, while the Burn Care segment—comprising Epicel and NexoBrid—contributed $8.8 million in the quarter, up from $6.5 million in Q4 2024.
The quarter’s gross profit reached $73.1 million, giving a record 79% gross margin that improved from 78% in Q4 2024. Operating expenses increased to $50.7 million, largely due to headcount expansion and start‑up costs at the new Burlington manufacturing facility. Net income for the quarter was $23.2 million, or $0.45 per diluted share, beating the consensus Non‑GAAP EPS estimate of $0.40 by $0.05 and the FactSet estimate of $0.39 by $0.06. The earnings beat was driven by strong MACI sales, higher pricing power, and disciplined cost control in the Burn Care segment.
Vericel’s full‑year 2025 revenue totaled $276.3 million, up 16% from $240.8 million in 2024, and net income rose 59% to $16.5 million. Full‑year gross margin improved to 74% from 73% in 2024, and adjusted EBITDA margin climbed to 26% from 23%. The company reaffirmed its 2026 revenue guidance of $316 million to $326 million, a range that sits slightly below analyst consensus of approximately $331.8 million, reflecting management’s view that investment in the new facility and ongoing product development will temporarily compress margins.
Management highlighted the launch of MACI Arthro and the expansion of the Burn Care sales force as key revenue drivers. CEO Nick Colangelo said the company “delivered outstanding financial and business results in the fourth quarter, as we generated strong revenue and profit growth and completed a number of key business initiatives.” CFO Joe Morrow noted that the record Q4 revenue and margin expansion “driven by a higher mix of high‑margin MACI sales and disciplined cost control” positioned the company for continued growth in 2026.
Investors reacted with a muted market response, as the guidance for 2026 was slightly below analyst expectations. The primary driver of the tepid reaction was the projected decline in gross margin to roughly 75% in 2026, attributed to the absorption of costs from the new manufacturing facility. Despite the EPS beat and record margins, the forward‑looking guidance tempered enthusiasm, indicating that management is prioritizing investment in growth over short‑term margin expansion.
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