LeMaitre Vascular (LMAT -2.38%), a medical device company focused on vascular surgeons, reported its latest quarterly earnings after the bell on August 5, 2025. The company delivered GAAP results ahead of expectations, posting GAAP earnings per share of $0.60, above the anticipated $0.57 (GAAP). Revenue (GAAP) reached $64.2 million for Q2 2025, beating GAAP revenue forecasts of $62.48 million and rising significantly from the prior-year total of $55.8 million (GAAP, Q2 2024). Gross margin (GAAP) improved and growth from top products, with management raising guidance for the year. Overall, the period showed continued strength in core product lines, international markets, and direct sales effectiveness.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $0.60 | $0.57 | $0.52 | 15.4% |
| Revenue (GAAP) | $64.2 million | $62.48 million | $55.8 million | 15.1% |
| Gross Margin | 70.0% | 68.9% | 1.1 pp | |
| Operating Income | $16.1 million | $14.4 million | 11.8% | |
| EBITDA | $19.0 million | $16.8 million | 13.1% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
About LeMaitre Vascular
LeMaitre Vascular specializes in medical devices for peripheral vascular disease, a condition that restricts blood flow in arteries and veins outside the heart and brain. Its products cater primarily to vascular surgeons, with a focus on treating diseases in limbs and other peripheral areas. The company operates in a market valued at over $5 billion globally and estimates its direct addressable opportunity at nearly $1 billion, based on its assessment of the annual worldwide market for its products.
Recently, the company has concentrated on bolstering its direct sales force, expanding its presence in niche product segments, and launching new devices internationally. Success depends on maintaining strong distribution channels, delivering regulatory approvals, and operating efficiently in its manufacturing base. Regulatory compliance and ongoing acquisitions also play crucial roles in the company's strategy and its ability to scale in the competitive vascular device market.
Quarter in Review: Key Developments and Results
The company’s reported GAAP earnings per share were $0.60, ahead of the $0.57 GAAP consensus. GAAP revenue reached $64.2 million. Both figures exceeded analyst estimates. Both figures marked substantial gains from the same quarter a year ago. Revenue growth was driven largely by higher sales of catheters (+27%) and grafts (+19%). Catheter sales grew 27%, while grafts increased 19%. These two product families—used in open vascular surgeries to repair or redirect blood vessels—were primary contributors to the revenue increase.
Geographically, Europe, the Middle East, and Africa (EMEA) delivered particularly notable results, with EMEA sales rising 23% year over year, totaling $18.8 million and representing 29% of company-wide revenue (GAAP). Sales in the Americas were up 12%, reaching $41.3 million in GAAP net sales for the Americas and composing 64 % of total sales. The Asia Pacific region grew 12%, with revenue of $4.1 million (GAAP), accounting for the remaining 7 %. The strong performance in EMEA ties back to direct sales expansion, new offices, and faster-than-anticipated international launches, such as the roll-out of Artegraft biologic grafts.
On pricing and demand, both selling prices and units sold contributed to the strong growth, with price increases accounting for 8% of sales growth and units 7% of overall organic sales growth (non-GAAP). Gross margin rose 1.1 percentage points to 70.0% compared to Q2 2024, was attributed to higher average selling prices and improved manufacturing efficiencies, partially offset by increased sales of grafts, which have lower margins than some other products. EBITDA, which measures earnings before interest, taxes, depreciation, and amortization, rose 14% to $19.0 million (non-GAAP).
The company approved a quarterly dividend of $0.20 per share, reflecting a 25% increase from the $0.16 paid in the prior-year period. It also holds a $75 million share buyback authorization, but had made no repurchases as of the most recent earnings release.
Business Focus, Product Portfolio, and Strategic Moves
The direct sales force remains a cornerstone of the business, representing approximately 95% of sales in FY2024, contributing to the strong EMEA performance. Management noted that new sales representatives are reaching productivity similar to experienced employees much faster than in previous years.
LeMaitre Vascular’s product strategy emphasizes niche segments with low market rivalry. Grafts—medical devices used to create new blood vessel paths—and biologics, such as the Artegraft allograft, have grown through both organic commercial gains and international launches. Artegraft shipments began reaching Europe immediately after obtaining the necessary CE mark, which is a regulatory certification required for devices sold in the European Union. The company also continues to invest in obtaining further CE marks and expanding the availability of RestoreFlow allografts, another biologic graft, with approvals in Ireland or Germany anticipated in calendar 2025.
From a regulatory and operational standpoint, the company continues to invest in compliance—securing 17 out of 23 necessary CE marks to keep pace with evolving European requirements. Its manufacturing base is entirely US-based, and China remains a small contributor at less than 1% of revenue in FY2024. Management has flagged continuing efforts to optimize inventory levels, targeting improved free cash flow going forward.
On the capital allocation side, the company’s balance sheet shows nearly $320 million in cash and short-term investments as of June 30, 2025. Despite no major acquisitions since the purchase of Artegraft in 2020, management reiterated its intentions to pursue larger deals, targeting acquisition targets with revenue between $15 and $150 million. Share repurchase authorization is in place, though no shares had been bought back at the time of the release.
Looking Ahead: Guidance and Priorities
For Q3 2025, management forecasts GAAP revenue in the range of $61.2–$63.2 million, which would represent 13% organic growth from the same period in 2024. The company expects gross margin (GAAP) to hold at 69.7% for Q3 2025 and the full year, with operating income between $14.4 million and $15.8 million, and earnings per share projected at $0.54–$0.59. The full-year guidance was also raised.
This updated outlook incorporates the removal of lower-margin product revenue, additional China tariffs in 2025 are offset by price increases on about half of these costs, and continued direct sales and product growth. The company expects the combination of price increases and unit growth to remain key drivers of sales growth, as evidenced by organic sales growth in Q1 2025 being driven by a 9% increase in average selling price and a 4% increase in units, and in Q2 2025 by price accounting for 8% and units for 7%, especially as more direct offices come online. Gross margin guidance for the full year now stands at 69.7%, with operating margin anticipated at 24% for Q2 and the full year. Management flagged that continued investment in sales infrastructure, as well as operating costs for new international offices, will weigh slightly on operating margin in the near term.
LMAT pays a regular dividend and increased its quarterly payout by 25% to $0.20 per share, up from $0.16 per share in Q2 2024.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
