LeMaitre Vascular reported Q3 2025 revenue of $61.05 million, a 2 % shortfall versus the $62.3 million consensus estimate and a 11 % year‑over‑year increase from $54.8 million in Q3 2024. The revenue miss was largely driven by a recall that prompted customers to pull forward purchases, which offset the strong growth from the Artegraft international launch.
Adjusted earnings per share rose to $0.62, beating the $0.57 consensus by $0.05 (8.8 %). GAAP EPS of $0.75 also surpassed expectations. The beat was driven by robust pricing power in the Grafts (+23 %) and Shunts (+18 %) segments, higher average selling prices, and manufacturing efficiencies that offset the recall‑related headwinds.
Gross margin expanded to 70.8 % from 67.8 % in Q3 2024, a 300‑basis‑point improvement. The increase reflects a higher mix of high‑margin Artegraft products and effective cost control, reinforcing the company’s pricing strategy.
Operating margin reached 33.3 % GAAP, up from 24 % a year earlier, underscoring the company’s ability to translate revenue growth into profitability gains.
Management guidance for Q4 projected revenue at a midpoint of $62.8 million, below the $64.69 million consensus estimate, while full‑year EPS guidance was raised to $2.51 from the prior $2.30. The guidance signals confidence in sustained profitability but a cautious outlook on top‑line growth due to the recall and broader market conditions.
CEO George LeMaitre emphasized that 2025 is shaping up to be another year of healthy sales and profit growth, noting that Artegraft’s international launch is ahead of plan and that the company is investing in its sales force, new international offices, and regulatory approvals. CFO Dorian LeBlanc highlighted 12 % organic growth, a 1.3 million dollar impact from the Aziyo distribution exit, and a $1 million foreign‑exchange benefit that helped offset revenue pressure.
Investors reacted cautiously to the results, focusing on the revenue miss and the lower Q4 guidance despite the earnings beat. The company’s strong margin expansion and international expansion remain positive tailwinds, while the recall and slower demand in legacy products present headwinds.
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