Welcome to LeMaitre Vascular First Quarter 2025 Financial Results Conference Call. As a reminder, today's call is being recorded. At this time, I would like to turn the call over to Mr. Dorian LeBlanc, Chief Financial Officer of LeMaitre Vascular. Please go ahead, sir. Thank you, Operator. Good afternoon, and thank you for joining us on our Q1 2025 conference call. With me on today's call is our CEO, George LeMaitre, and our President, Dave Roberts. Before we begin, I'll read our Safe Harbor Statement. Today, we will make some forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, the accuracy of which is subject to risks and uncertainties. Wherever possible, we will try to identify these forward-looking statements by using words such as believe, expect, anticipate, pursue, forecast, and similar expressions. Our forward-looking statements are based on our estimates and assumptions as of today, May 1st, 2025, and should not be relied upon as representing our estimates or views on any subsequent date. Please refer to the cautionary statement regarding forward-looking information and the risk factors in our most recent 10-K and subsequent SEC filings, including disclosure of the factors that could cause results to differ materially from those expressed or implied. During this call, we will discuss non-GAAP financial measures such as organic sales growth. A reconciliation of GAAP to non-GAAP measures discussed in this call is contained in the associated press release and is available in the investor relations section of our website, www.lemaitre.com. I'll now turn the call over to George LeMaitre. Thanks, Dorian. Q1 sales were stronger than our February 27 guidance. 13% organic and 12% reported growth was led by grafts, up 17%, and carotid shunts, up 14%. We posted sales records in all five of our categories: grafts, carotid shunts, catheters, valvulotomes, and patches. By geography, EMEA was up 18%, the Americas 11%, and APAC 3%. I'll focus my remarks on three topics. First, the growth of our sales force. Second, our new international sales offices. Finally, our MDR CE marks. We currently have 164 reps on payroll, and we're now targeting 170 at year-end. We also employ 34 sales managers versus 31 at our last earnings call. The sales force is our number one asset, so we continue to invest in reps, managers, and sales offices. Our new Alpine Regional Sales Manager started on April 1 and will oversee seven sales reps in Switzerland, Austria, and Czechia. Shipping from our new Zurich office will reduce customs complexity for Swiss hospitals, and our direct offices almost always improve sales performance. Switzerland is LeMaitre's sixth-largest European market. We expect to sign a transition agreement with our Czech distributor shortly and should log our first direct sale in August. We are currently recruiting two Czech reps. As for Portugal, we hired our Lisbon rep on January 1st, signed our distributor transition agreement on March 19, and on May 1 became direct in Portugal. Also in Europe, we've just received our MDR CE mark for Artegraft, and the European launch will begin presently. Artegraft, a biologic graft used primarily in AV access and peripheral bypass, was the company's largest U.S. product in 2024, with $37 million in U.S. sales. At previous earnings calls, we've estimated Artegraft's current market size to be about $8 million in Europe and $8 million rest of world. We currently have Artegraft approvals in New Zealand, South Africa, Thailand, Israel, and Malaysia. We sold $180,000 of Artegraft internationally in Q1. We also expect to receive approvals in Australia, Canada, Singapore, and Korea by H1 2026. This is an exciting worldwide launch with plenty of long-run upside. Our New Jersey Artegraft production facility is currently running a single shift and is capable of meeting this new demand. Separately, we continue to anticipate at least one RestoreFlow Allograft approval in 2025 from Ireland or Germany. As a reminder, Allografts require approval on a country-by-country basis. Approvals from either Ireland or Germany would then expedite our individual European country approvals. Anticipating the Irish approval, we'll be opening a pan-European RestoreFlow distribution facility in Dublin in H2. RestoreFlow is currently approved in the U.S., the U.K., and Canada. Since the 2016 acquisition, RestoreFlow's sales CAGR has been 23%. In summary, Q1 sales momentum, our continued office and sales force build-out, and our regulatory progress allow us to increase our 2025 reported sales guidance to $245 million from $239 million previously. Our organic sales guidance has advanced to 13% from 10% previously. $303 million of cash also provides strategic optionality. With that, I'll turn the call over to Dorian. Thanks, George. The LeMaitre portfolio of niche devices continues to deliver in Q1. As George referenced, we experienced record quarterly sales in grafts, carotid shunts, catheters, valvulotomes, and patches. Organic sales growth of 13% over Q1 2024 was driven by average selling price increases of 9% and unit increases of 4%. In Q1 2025, we posted a 69.2% gross margin. The 60 basis point increase year- over- year was driven primarily by higher ASPs and lower inventory scrap, offset by product mix. Average selling price increases improved the gross margin by approximately 270 basis points in Q1. Reduced scrap contributed an additional 85 basis points. The shift in product mix, particularly towards grafts, negatively impacted the gross margin by 220 basis points. Operating expenses in Q1 2025 were $28.8 million, an increase of 16% versus Q1 2024. The increase was driven largely by higher compensation expenses, including the addition of 21 more sales professionals and higher non-compensation sales-related expenses. Q1 2025 operating income increased 6% year- over- year to $12.6 million and an operating margin of 21%. Fully diluted EPS was $0.48, up 10%. We ended Q1 2025 with $302.5 million in cash and securities, an increase of $2.8 million in the quarter. Cash from operations generated $9 million in the quarter. We paid $4.5 million in dividends to shareholders and made the final deferred payment of $1.4 million related to our 2019 CardioCel acquisition. As we turn to guidance, there are two additional topics that we have incorporated into our full-year forecasts. First, we have amicably wound down our porcine patch distribution agreement with Elutia effective April 30 in order to focus on sales of our own biologics. In 2024, our hospital sales of Elutia patches totaled approximately $5 million. This product exit will likely improve our organic growth rate and gross margin. Second, we'd like to address tariffs. In summary, we believe the company is comparatively well-positioned as it relates to this issue. LeMaitre manufactures 100% of its products in the U.S., and therefore we have limited concerns related to U.S. import tariffs. Approximately 25% of our cost of goods sold is for raw materials and components, of which approximately $2 million is paid to foreign suppliers, largely to Australia. Simply stated, we are not big importers. As for the impact of potential retaliatory tariffs, approximately 40% of our sales are international. Since we generally compete in low rivalry markets, we anticipate low substitution risk, and we believe we can raise prices to offset most potential tariffs. China accounted for less than 1% of our total annual revenue. The Chinese import tariffs currently in place will increase our Chinese cost of goods by almost $825,000 per year. We are implementing price increases on May 15 in China, which should offset half of these costs. We remain committed to a long-term view of our business prospects in China. We generally believe that cooler minds will eventually prevail, and most tariffs will recede in the long run, particularly on lifesaving medical devices. Overall, we feel well-positioned with our U.S.-only manufacturing footprint, our U.S.-focused supply chain, and our competitive positioning in foreign markets with our niche products and direct sales model. Therefore, we feel comfortable increasing our 2025 sales guidance despite trade tensions. LeMaitre continues to deliver broad-based revenue growth with our differentiated products, direct-to-hospital model, and growing commercial organization. We have raised our full-year revenue guidance to $245 million, reflecting a continued robust sales performance and a benefit from the weaker U.S. dollar, offset by the discontinuation of our Elutia distribution agreement and a weaker outlook for our small China business. We have further updated our annual guidance for a gross margin of 69.6%, operating income of $57.7 million, and a midpoint guide on diluted earnings per share of $2.16. For more details, please see today's press release. With that, I'll turn it back over to the Operator for questions. Thank you. As a reminder to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. One moment while we compile our Q&A roster. Our first question is going to come from the line of Suraj Kalia with Oppenheimer & Company. Your line is open. Please go ahead. Hi guys. Congrats on a strong quarter. This is Seamus on for Suraj today. Hi, Seamus. Just to start, you guys had a strong Q1. You guys beat by a little over $2 million, but you raised the guidance by seven. Obviously, there's some moving pieces here. You guys have Artegraft clearance now, the Elutia agreement cessation. I guess, what's giving you the confidence here early, especially with kind of the current things swirling around in the air in terms of tariffs and globally, that's giving you the confidence to increase guidance so early in the year? Thanks for the great question, Seamus. This is George. Yeah, of course, you're pointing out, so what gives us this confidence? There's a bunch of factors here, but maybe the first one that you pointed out was that we beat Q1 by a lot, so you got that going. That's already in the bag. The price hikes also are working better than anticipated. It was a big topic at the last call, but we came out and said we think the U.S. price list was going to increase prices by 8%, and in Q1, we got an 11% in the U.S., so we got a little bit better than we expected with those pricing floors. Interestingly enough, getting out of the Elutia business will help organic growth in the year because it was reducing over time. It never really worked that well inside of our bag of goods, and getting rid of that oddly increases organic growth. You can see also we're sort of "guiding" more sales reps than on the last call. We were guiding 165 for the end of this year on February 27, and now come May 1, we're guiding 170. We are putting on more reps, and we think that'll lead to additional sales growth. Obviously, you pointed out also the Artegraft international. It's starting to work internationally, and on Tuesday, we got the approval, the big one we've been waiting for, which is the CE mark for Artegraft. In general, Europe's going so well these days for a variety of reasons. Both price and units, and all these offices we keep putting in seem to help out with growth. I would say that's a big long laundry list for your question, but that's sort of why we feel comfortable going from 10 to 13 organic. Got it. Appreciate all that helpful color. Just kind of one more, and we'll hop back in Q. Can you give us any update on M&A, what you're seeing? George, I can't help but at least clarify this. You noted that you guys have $303 million of cash, and it provides strategic optionality. I feel like there's something there that you're maybe hinting at kind of behind the scenes. If you can give us what you may mean by that. Thank you. Okay. Really quickly, I'll say I'm not hinting at anything. I just feel like if you have $300 million in the bank, you can do stuff with it. There is nothing underneath that. I will pass it over to Dave, who usually handles the M&A questions, Seamus. Hey, Seamus. Great to hear from you. Yeah, the pipeline's in really good shape. Obviously, we're still hunting in the center of the fairway for us, which is open vascular surgery. There are 22 or 23 targets over $5 million of revenue. We're also actively hunting in an adjacent space, cardiac surgery, where there are crossover devices, and some cardiac surgeons do vascular surgery. I'd say, of course, like I said in previous calls, we're hunting for larger deals. Our last deal was almost five years ago, Artegraft, and we're obviously delighted with how that's gone. We're hunting for larger deals, and hence we did the bond offering in December. The sweet spot probably is revenues of $150 million or something like that worth of revenue. Thank you. Thank you. One moment as we move on to our next question. As a reminder, if you would like to ask a question, please press star one one on your telephone. Our next question comes from the line of Michael Petusky with Barrington Research. Your line is open. Please go ahead. Hey. Good evening. George, I'm curious, any view on XenoSure and China and just all the strain in this relationship? Do you have any concerns that this hangs it up, or is there any intelligence that you might have on that sort of relative to that issue? Right. That's a great question, Mike. Thanks a lot. I feel like the whole project just took a, I don't know, a five-yard sack, if you will, not just XenoSure, but the whole China-LeMaitre. As you can remember, two years ago, we were in here saying how bad China was, and then in the last year, it sort of really turned around for us. We had a fantastic Q1, if you remember. Yeah, it's frustrating, but we've been there 10 years. We call it the long march, ha ha ha. We plan to continue being there. It will hurt us a little bit, but I bet you in the long run, some of this stuff simmers down. I think it'll be okay. Mike, it's Dave. Yeah, obviously, we were delighted to get that XenoSure cardiac approval back in December. For us, despite all the tariff and trade tension and all that, our team is actively seeking provincial listing approvals in the 31 provinces there. We expect to get most of those in Q4. Of course, the material sales would not appear probably until next year sometime. Yeah, let's just see what happens between the countries. In the meanwhile, we're preparing to move ahead with that product line. Okay. All right. Great. Dorian, curious if you have this handy. Do you have cash flow from Ops and CapEx this quarter by any chance? Sure, Mike. Cash flow from Ops was $9 million, and within that, depreciation and amortization was $2.552 million. Share-based comp was $2.046 million. Capital expenditures for the quarter was $1.383 million. Cash flow from Ops was roughly $9.0? $9.0 million. Correct. Awesome. Thank you so much. J.J. always was good with having that handy. I really appreciate you doing the same. I'll get back in the Q at this point. Thank you, guys. Appreciate it. Thanks a lot, Mike. Our next question is going to come from the line of Rick Wise with Stifel. Your line is open. Please go ahead. Thank you. Good afternoon, everybody. Hi, George. Just to start off on your pricing commentary, I mean, clearly, as you said, price was stronger, better than expected. Maybe I'm misremembering. Please correct me, obviously, if I'm wrong. I feel like that the last call, we were thinking about more of a 6% blended price increase for the year. Given the first quarter performance and whatever the guidance was before, how do you want us to think about price or price and volume as we break it down and think about the full 2025 year? Okay. I know I'm going to come to an unsatisfactory answer to this question, but I'm going to get there in a second. Just to go at, I think the difference between your 6% number and my 8% number that I just mentioned was I'm talking U.S. only, and we were trying to use that as a proxy, as a simple proxy. You might have blended worldwide as 6%. You might remember that from the last call. Regardless of where we remember it, the raw fact is in Q1, it was a 9% price increase and a 4% unit increase. We always have an eye towards having better unit growth, but it's a nice number anyway. Nine and four was what we got in Q1. I sort of talk it through now to just go back to the U.S. Our list price increase was 8.1% blended in the U.S., and we think we got an 11. I think we got an 11. We got a little bit more price discipline than we expected, I guess, is what I would say. As for the back of your question about price and volume for the year, it's almost impossible for us to get what the organic growth is. It's so hard. We don't really try to break it between price and units. Perhaps you could assume status quo as the year goes by. I don't have any reason to think it's not status quo, and that's nine and four is the 13 for Q1, but I don't know about the next three quarters. Gotcha. That's helpful. I was hoping you'd expand on the excellent news about the Artegraft CE mark approval. How do we think about the contribution from Artegraft in Europe? What kind of incremental volumes should that offer? What's baked into your guidance? Just maybe some additional color there would be helpful. Sure. That makes a lot of sense. It's why we gave you that international number, which is without Europe so far. In the first sort of real quarter of selling internationally, we got $180,000. We've pumped into our model a number, which it's so preliminary, but we wrote it in. It's EUR 350,000 for the back three quarters of this year. Honestly, Rick, I think I'd love for you guys to give us a quarter or two to get our sea legs on this product, and then I think we'll be a lot better at guiding prospective on that. Of course, as you remember, I'm going to not want to guide on individual devices at some point, but I realize we all need more information around this. What does it mean? Another way to look at it is we keep saying there's an $8 million market in Europe and an $8 million market rest of world. Another way to look at it, which we keep trying to juxtapose with that number, is we sold $37 million of it in the U.S. If you take a really high-level look at it, I don't know, maybe in 10 years, you're selling half of that or a fourth of that. I don't know. They have different practice patterns over there. It's a long run. I hope I'm answering part of your question. Do you want to poke away at any of that, Rick? Any other further comments on my answer? No, no. No, that's a great perspective. I will sneak in another small question about gross margin if I could. Thank you, Dorian, for the gross margin breakdown. Help us think about the graft drag. Obviously, price was a positive scrap good. It contributed. Is this mixed drag? Is there anything that's going to change as the year unfolds? Maybe just give us some color about how gross margins we should think about it as the year unfolds, as the quarters unfold for the year as well. Thank you. Yeah. The Artegraft product in particular is the component of mix that you can think of as being below the corporate average margin. Obviously, we've continued to see great growth in that product line. George mentioned that we've got a 23% compound annual growth rate since the acquisition there. It is a little bit different product, the human tissue. The great growth there, and we will hopefully see that as well in 2026 with the approvals that we see coming in Europe, the investments that we're making. That was the big contributor from a graft perspective on the mix. Gotcha. Thank you. Thank you. One moment as we move on to our next question. Our next question comes from the line of Michael Saccone with Jefferies. Your line is open. Please go ahead. Good afternoon, and thanks for taking our questions. Just to follow up on Rick's question, just to make sure I'm clear. Just on the one Q, gross margin and operating margin coming in below guidance, is it fair to read that as Artegraft kind of performed better than expected, and that's what drove the below guide margins? Yeah. I think just graft overall as a category, performing as high as they did, is what drove that mix component. Mike, I would add, it's Dave Roberts. Within that, as Dorian mentioned, Artegraft has been an important growth driver for us over many quarters, and it did outperform in Q1 by about $1 million. That, I'd say, was the primary driver of the gross margin miss from a product standpoint. Got it. That's helpful. Just on gross and operating margin for the full year, it looks like the guide came down modestly for gross margin, but you're taking up your operating margin guidance at the midpoint. Can you just kind of elaborate on the moving pieces there? Yeah. I mean, there's a lot to that, right? We have such a nice sales growth guidance, and yet the operating margin moves down from 25%- 24% for the full year. That's what you're getting at, right, Mike? What's the component of that? As you already alluded to, we're pulling down our gross margin guidance ever so slightly for the year because we got a 69.2% in Q1. We're a little nervous about what does that mean. I think we're now, what are we at? 69.6% is the guide. Yeah. Okay. 69.6% for the yearly guide. That's involved in it too. I would go back and think about this 24% op margin. It's a crazy high op margin, and it gets affected. It's pretty rare to see a company with that op margin. Anything you do upsets that op margin. Maybe one thing that you can see us doing here on this call is we've increased our quote guidance, I don't know what you call it, from 165 sales reps at year-end to 170. I think our sort of bullishness that we're seeing with sales and with the success of this commercial build-out, I think we're saying, "Hey, let's add five more to this." I think maybe you're seeing some of that in the op margin. Finally, of course, a Swiss office doesn't come cheap. We continue to learn. Clearly, the most expensive place to operate on the planet besides Tokyo. You got a little bit of Swiss office in there too in some of these sales reps. Got it. Thank you very much. Thank you. One moment for our next question. Our next question comes from the line of Frank Takkinen with Lake Street. Your line is open. Please go ahead. All right. Thanks for taking the questions. Congrats on all the progress. I wanted to also start with one on the sales force. Can you just remind us kind of ramp up time and then when we can see that convert to kind of operating leverage? I know the guidance implies that operating income is starting to grow a little quicker through the back half of the year, but typically we've seen that really outpace the top line. When can we see some of those reps start to contribute and then drive that impressive operating leverage profile you guys have shown? Thanks for the question, Frank. Just to put some numbers on where you're talking about H2, it looks like we are implying in the guidance that the operating income growth gets back to 14% for H2. I think it's a piece of what you're alluding to. As to how quick the reps get up and running, we've been answering this question for I have been answering for 20 years. I don't have a great answer. I will say that we've done a lot of what I'll call regression analysis and sales force analysis. God knows we have a lot of data around here now, having run the sales force for so long. I used to say to people, "Oh, it takes a year for people to ramp up." I don't feel that way anymore. I think it's quicker than that. I think that it's extremely hard to distinguish between a rep that's been here two quarters, and this is shocking, and one that's been here for five years. The performance to quota is indistinguishable for those two cadres of employees. That's an odd answer. It's a surprising answer, but those are the numbers that keep showing up. We've been looking at this for two and three years now. It's not going away. That's what we see. I think it's maybe, unfortunately, I know there are sales reps on this phone call, and I hate to do this, but maybe it's a little bit of the warm body hypothesis. When you put a rep in Cleveland, they're going to sell, whether they're six years into this or two months into this thing, they're going to sell stuff. I hope that helps. It's odd data, I will admit. No, that's helpful. Thank you. Maybe one for Dave just on the M&A front with kind of med tech valuations and all publicly traded valuations coming in for that matter. Does this change your thought process at all? Maybe you can get a more novel, bigger market device rather than smaller niche products that you've traditionally gone after at a more attractive valuation? I mean, I would say it doesn't change our strategy so much, Frank. I mean, the types of targets that we're hunting, it all starts with the markets they're in and making sure those are markets we're in and there's synergy and all that. Of course, when valuations come down, it makes targets more affordable. We're lucky to have $300 million-plus of cash in the bank. From that standpoint, maybe we can get more with our money. In terms of does it change the types of things we're looking at, I would say no, it doesn't really. Okay. That's helpful. I'll hop back in Q. Thank you. Thanks, Frank. Thank you. One moment for our next question. Our next question is going to come from the line of James Sidoti with Sidoti & Company. Your line is open. Please go ahead. Hi, good afternoon. Thanks for taking the question. I'm going to ask the operating margin question a different way. For the quarter that just ended, the margin was about 21%. You're guiding for 24% for the full year. What changes in the back half of the year that gets that up? I mean, one of the big topics here is easier comps. Oh, excuse me. I apologize. I'm off on a different answer here. What changes? I mean, the sales ramp helps you a lot, right? And the gross margin ramp, the implied gross margin ramp. I think the H2 implied gross margin is now 69.9 for the last two quarters. I think you get a lot in those second two quarters, the last two quarters of the year. Yeah. Dorian can add to that. The dropping out of the Elutia distribution agreement where we only were earning distribution margins, not the full manufacturing margins that we earn on our own biologics, that does have a nice pickup on the gross margin percentage for us in the back half of the year. That is one of the lifts for us, Jim. Okay. All right. That makes sense. The other question I had is, in the past, when you said you're going to add 10 sales folks in a year, usually it's maybe one or two at the beginning of the year, and it builds up during the year. This year, you seem to add a lot right in the first quarter. Is that due to the transition from distributors to direct? I mean, are those folks that have already been selling your product? Jim, not really. We put in place a big quote surge last July, and it really is just that surge kind of coming to fruition. It is always longer than you think. I would have guessed it would have happened. You remember I was "missing my sales rep guidance in Q4," and I think the bolus of reps came in Q1, not in Q4, and I kind of missed it by three months. This is just that old surge finally coming to fruition. All right. All right. The last one for me, you have that share buyback program open. Have you started buying shares back? I don't know how we're supposed to answer that. You know, Dorian? We have not bought any shares back as of today. Okay. All right. Thank you. Thank you. One moment for our next question. Our next question comes from the line of Brett Fishbin with KeyBanc Capital Markets. Your line is open. Please go ahead. Hey, guys. Good evening. Thanks for taking the questions. Just a couple more clarification ones. On the tariffs, very helpful in terms of laying out some of the key considerations. I am really just trying to clarify what has been incorporated into the guidance. I know you were talking about $825,000 of extra cogs related to the small China component, and then maybe something more modest around the raw materials and components. I am just curious if that is actually factored in specifically into some of the margin assumptions. Yes, it has been factored in. That $825,000 was an annualized number for China that we gave you. If you noted, we're increasing prices in China here in two weeks to recoup about 50% of that, where we have the ability to do that on the differentiated products. That's the real significant impact for us on the back half of the year. We do have the ability to reprice products if we see retaliatory tariffs. The timing of that may not be perfect, but we've incorporated our best estimates into the guidance for how we view the rest of the year on this issue. All right. Helpful. Second question is just on the Elutia, sorry, the pronunciation, distribution announcement that you're stepping away. I was just curious how you're looking at that as an organic growth tailwind. Is it more just extra time? You're not focusing on that product as much? Yeah. Just trying to kind of figure out how exiting $5 million of revenue becomes a tailwind. Thank you very much. Sure. I think this is simple, which is the product is declining year over year in our hands. The sooner we get it out of our hands, the less it's going to negatively impact our organic growth rate. Yeah. Brett, when we talk about organic and we're not selling in the future because we terminated the relationship or agreed to with Elutia, for the organic math, we pulled the sales a year ago out of the denominator. That helps us. You're also bringing up a good point. I think this was part of the issue with the product and LeMaitre is that it was the third patch inside of the LeMaitre bag. The LeMaitre reps will be able to focus more on the other products. That could contribute to organic growth as well. All right. Thank you very much. Thanks, Brett. Thank you. One moment for our next question. Our next question comes from the line of Ross Osborn with Cantor Fitzgerald. Your line is open. Please go ahead. Hey, guys. Congrats on the strong quarter. Almost halfway through the year at this point, so I'll try and squeeze in some questions on 2026, but we'll stay away from numbers at this point. Starting with Artegraft, congrats on CE mark. Following that approval, what steps do you guys need to take from an operational or generating incremental clinical data standpoint this year in order to set yourselves up for a strong 2026 ramp? Thanks a lot, Ross. This is George. And you're specifically referring to the Artegraft project? Yep. Okay. Great. Nothing. We do not owe anything to anyone. We are ready to go. This is just a marketing launch. We will probably do some kind of, just in terms of running clinical looks at it at some point, but we do not have anything planned right now. We are just going at it. It is a nice launch. The device comes to us or came to us in 2020 with lots and lots of clinical data and lots of articles, so there is no real need to go do more of that. In fact, that is probably why the thing went so quickly in the regulatory pipeline and did not require a clinical trial. Ross, I would add, it's Dave. Great to hear it from you. We actually are shipping. I mean, we're just making our initial shipment from the U.S. to Europe next week because obviously we couldn't ship until we had the MDR CE mark, and now we've got it. Step one is to place inventory over there. We've already begun training with our U.S. sales reps who are expert and facile with Artegraft. They've started the training of our European team. George is right. There's already an enormous amount of clinical data about this product. There's no generation of clinical data need to launch this product line. Okay. Perfect. Turning to RestoreFlow, would you walk through any different market dynamics that may exist between the U.S. versus Germany and Ireland, whether that be price or certain training such as the return of the Ross procedure here as we see in Mount Sinai? How many reps do you think you'll need in those markets to support adoption? Okay. I'll go to the back of the question. It is a lot simpler, which is I think we have the reps already in place. You do not need to hire additional reps. It is the beauty of this thing. It goes down our sales channel. With that out of the way, I would say we have seen a big difference between the U.S. and the U.K. Sorry, I know you are talking about Ireland and Germany, but we are going to learn about that soon. I feel like they are very different markets. In the U.K., it is very much a cardiac approach. Canada is also more cardiac for us, and the U.S. has been more peripheral vascular. They are going to be different. They are all going to be different markets. I think we're going to, as we get closer and closer to these launches, we'll be tailoring whether we're going to bring more peripheral over there or more cardiac over there. Inside of this call, we also mentioned there's a nugget in there, which is we're opening up a distribution site in Ireland, in Dublin, in the back half of the year. That should help us, once we get approvals in other countries, have sort of a pan-European approach to that one product, not the other products which are generally shipped out of Frankfurt. Ross, I'd piggyback on George's comments. By the way, I'd also say thank you to you and Matt and Cantor for that nice deep dive piece on RestoreFlow Allografts. You guys did a really thoughtful job with that. At a high level, George is right. We've seen a lot of success in the U.K. Part of the reason for that is, unlike the U.S., there aren't companies who are providing allografts and providing them to hospitals. It's a fairly disorganized system in the U.K. We think that's true across Europe more generally. Regardless of the door through which we enter the European market, whether it's Ireland, which opens a lot of countries' doors for us inside the EU, or Germany, which opens fewer but still opens some, the markets that we see ourselves entering are equally fragmented from a supply standpoint. We do see a lot of opportunity there. Frankly, I believe, as you and I discussed in Chicago a month and a half ago, the biggest challenge for LeMaitre will be providing enough grafts and tissues into Europe to meet the demand. Sounds great. Thank you for taking our questions. Congrats again on the progress. Thanks, Ross. Thank you. One moment for our next question. Our next question comes from the line of Danny Stauder with Citizens JMP. Your line is open. Please go ahead. Yeah. Great. Thanks for the questions. Just first one on the sales and marketing spend. It was up a little bit or quite a bit in the first quarter. I'm assuming that was due to the large step up in the reps. I was just curious if there were any expenses that were more one-time in nature there, such as signing bonuses or anything like that. How should we think about this sales and marketing expense going forward in 2025? Thank you. Sure. All right. right. Danny, thanks for the questions. This is George. First of all, there is a big guide, discreet one, which is there's about a $1 million sales meeting almost always that happens in Q1. It is not a year-over-year difference for you. In terms of looking forward into the year, there's about $1 million worth of sales meetings, those kick-off meetings that you do not need to have for the next three quarters. That is one thing. You alluded to it, but I think maybe it is worth going through here. At the end of Q1 of 2024, we had 137 reps. Today, as I sit here, we have 164 reps. It is an increase of 27. This is a big change. I think you can feel that in the Q1 op expenses, particularly around sales and marketing. You're right to point that out, but those are the numbers that would support what you're pointing out. Great. Thank you for that. Just one follow-up looking at free cash flow. In terms of 2025, you talked about this a little bit, but how should we think about CapEx and working capital, specifically inventory, as we consider some of these regulatory approvals and geographical expansions? Thank you. Yep. Thanks for the question. I think on CapEx, you can consider this quarter to be a fairly standard quarter for us, maybe a little more around some of the offices that are coming online and continue the build-outs for the end of the year, but not a big sequential change. Overall, on free cash flow, continue to deliver cash to the bottom line. Danny, I'd also point out here, we've had this really, I call it lavish policy around here called no back orders at any time. We're that guy. We always want to have the devices. It's led us to have a pretty big inventory closet, roughly $65 million worth of inventory mostly in Burlington, Massachusetts, but also around the world in our 13 or 15 offices. We're now finally going after that in terms of we're going to try to be a little bit tighter at titrating back orders and the giant inventory balance. You may see some cash free up from that this year, and it could add to some of this free cash flow. Yeah. In Q1, remember that it's usually a light cash flow quarter for us because you have annual bonuses being paid in Q1. Just maybe the last point on inventory is in Q1, we were building inventory, particularly in Artegraft and in RestoreFlow in anticipation of this European launch for Artegraft and because we do believe that long-term supply is one of our constraints on growing the RestoreFlow business. Other than those two product categories, we are seeing the inventory with progress there and should be able to free up cash flow in the subsequent quarters. Great. Thank you very much for the questions. Thanks, Danny. Thank you. One moment for our next question. We have a follow-up question from the line of Michael Petusky with Barrington Research. Your line is open. Please go ahead. Hey. Thanks so much. Just a couple of quick ones. I may have missed this. George, did you say how many of the, I think, 23 MDR CE marks that you're looking to get, where you stand on that? Is it like 17 at this point, 18? I missed it if you said it. I apologize. You're good. It is 17 out of 23. Okay. Great. Just one for Dave as well. Dave, in any of the conversations, say, over the last month or so with assets that you're interested in, have you seen anybody where they're essentially saying, "Hey, we're not doing anything until some of this tariff stuff is resolved," or, "We're more anxious to do something because of the screwed-up nature of trading relationships"? Have you heard any feedback either way? I'm just curious. Thanks. Yeah. My short answer is no. I think there's a general sentiment that things are still changing a lot. I feel like sellers aren't at one extreme or another saying, "We're frozen. We're not doing anything," or, "Let's hurry up and dump this asset." I feel like everybody's fairly circumspect about it. So far, discussions are generally proceeding, but we've all got an eye on it, no question. Okay. All right. Great. Thanks, guys. Thank you. Ladies and gentlemen, this concludes today's conference call. I would like to thank you all for your participation. You may now disconnect and have a great day. Thanks a lot.