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VERICEL Q2 2025 RESULTS JULY 31, 2025
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Safe Harbor 2Vericel Q2 2025 Financial Results – July 31, 2025 Vericel cautions you that all statements other than statements of historical fact included in this presentation that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. Although we believe that we have a reasonable basis for the forward-looking statements contained herein, they are based on current expectations about future events affecting us and are subject to risks, assumptions, uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Our actual results may differ materially from those expressed or implied by the forward-looking statements in this presentation. These statements are often, but are not always, made through the use of words or phrases such as “anticipates,” “intends,” “estimates,” “plans,” “expects,” “continues,” “believe,” “guidance,” “outlook,” “target,” “future,” “potential,” “goals” and similar words or phrases, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may,” or similar expressions. Among the factors that could cause actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to, uncertainties associated with our expectations regarding future revenue, growth in revenue, market penetration for MACI®, MACI Arthro , Epicel®, and NexoBrid®, growth in profit, gross margins and operating margins, the ability to continue to scale our manufacturing operations to meet the demand for our cell therapy products, including the timely qualification of a new manufacturing facility in Burlington, Massachusetts, the ability to sustain profitability, contributions to adjusted EBITDA, the expected target surgeon audience, potential fluctuations in sales and volumes and our results of operations over the course of the year, timing and conduct of clinical trial and product development activities, timing and likelihood of the FDA’s potential approval of the use of MACI to treat cartilage defects in the ankle, the estimate of the commercial growth potential of our products and product candidates, competitive developments, changes in third-party coverage and reimbursement, including recent and future healthcare reform measures and private payor initiatives, surgeon adoption of MACI Arthro, physician and burn center adoption of NexoBrid, labor strikes, supply chain disruptions or other events or factors that might affect our ability to manufacture MACI or Epicel or affect MediWound’s ability to manufacture and supply sufficient quantities of NexoBrid to meet customer demand, including but not limited to the ongoing and evolving conflicts in the Middle East region involving Israel, negative impacts on the global economy and capital markets resulting from the conflict in Ukraine and the ongoing and evolving Middle East conflicts, including those associated with potential further involvement by the U.S., changes in trade policies and regulations, including the potential for increases or changes in duties, current and potentially new tariffs or quotas, lingering effects of adverse developments affecting financial institutions, companies in the financial services industry or the financial services industry generally, possible changes in governmental monetary and fiscal policies, including, but not limited to, Federal Reserve policies in connection with continued inflationary pressures, the impact from future regulatory, judicial and legislative changes to our industry or to the broader business landscape, including those included in the One Big Beautiful Bill Act, global geopolitical tensions and potential future impacts on our business or the economy generally stemming from a public health emergency. These and other significant factors are discussed in greater detail in Vericel’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (SEC) on February 27, 2025, Vericel’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, filed with the SEC on July 31, 2025, and in other filings with the SEC. These forward-looking statements reflect our views as of the date hereof and Vericel does not assume and specifically disclaims any obligation to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date of this press release except as required by law.
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Q2 2025 Financial Highlights Vericel Q2 2025 Financial Results – July 31, 2025 3 $63.2M Total Q2 Revenue MACI Epicel NexoBrid $1.2 $8.6 $53.5 Total revenue of $63.2M MACI revenue growth of 21% to $53.5M Burn Care revenue of $9.8M Gross margin of 74%, up over 400 bps vs. Q2 2024 Adjusted EBITDA increased 112% to $13.4M Operating Cash Flow of $8.2M $164M of Cash and Investments Key Business Updates Record second quarter total revenue and MACI revenue Second highest number of MACI biopsies in a quarter since launch, with second highest biopsies in any month in April Approximately 600 MACI Arthro surgeons trained to date MACI implants for the treatment of small femoral condyle defects increased more than 40% in the second quarter vs. prior year MACI sales force expansion accelerated into the 2H 2025 based on MACI Arthro launch indicators and expected MACI implant growth Highest number of Epicel biopsies in a quarter since 2023, representing 38% growth, and record biopsy month in June NexoBrid second quarter revenue increased 52% vs. prior year Record monthly NexoBrid hospital unit orders in June Received FDA IND clearance for MACI Ankle clinical study and remain on track to initiate the study in 2H 2025 Strong start to Q3 in July with accelerating MACI biopsy and implant growth, highest monthly Epicel graft volume of the year, and highest NexoBrid monthly hospital orders since launch
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~600 Trained Surgeons Since Launch, With Highest Training Activity to Date in Q2 150+ ~250 ~400 ~600 Dec 2024 Feb 2025 Apr 2025 July 2025 Year-to-Date Biopsy and Implant Growth Significantly Higher for MACI Arthro Trained Surgeons MACI Arthro Launch Progress Vericel Q2 2025 Financial Results – July 31, 2025 4 MACI Arthro surgeon training to date ahead of plan and expected to remain strong in 2025 MACI Arthro trained surgeons continue to demonstrate expanded MACI utilization ✓ Biopsy growth rate accelerated for surgeons trained on MACI Arthro in Q2 ✓ MACI implants to treat small condyle defects increased more than 40% in Q2 versus prior year ✓ MACI implants for trochlea defects account for nearly 20% of MACI Arthro implants to date ✓ Generated over 100 MACI biopsies from new arthroscopic-only surgeon segment to date
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Q2 2025 Revenue Details 5 $28.6 $36.3 $44.1 $53.5 $8.2 $9.6 $7.8 $8.6 $0.2 $0.8 $1.2 $37.0 $45.9 $52.7 $63.2 $0 $10 $20 $30 $40 $50 $60 $70 $80 Q2 2022 Q2 2023 Q2 2024 Q2 2025 Total Revenue ($M) NexoBrid Epicel MACI MACI growth of 21% vs. prior year Vericel Q2 2025 Financial Results – July 31, 2025 * *NexoBrid revenue related to the U.S. Biomedical Advanced Research and Development Authority procurement for emergency response preparedness
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Q2 2025 Operating Cash Flow of $8.2 million $164 million in cash and investments as of July 31, 2025, and no debt Q2 2025 Financial Results 6 Three Months Ended June 30, Vericel Q2 2025 Financial Results – July 31, 2025 Six Months Ended June 30, Unaudited, amounts in millions except per share amounts 2025 2024 2025 2024 Net Revenue $63.2 $52.7 $115.8 $103.9 Gross Profit 46.6 36.6 82.9 72.0 Gross Margin 74% 70% 72% 69% Research and Development 6.7 7.4 14.0 13.8 Selling, General and Administrative 41.9 35.3 83.7 69.7 Total Operating Expenses 48.6 42.6 97.7 83.5 Operating Income (Loss) (2.0) (6.0) (14.8) (11.5) Net Income (Loss) (0.6) (4.7) (11.8) (8.5) Net Income (Loss) Per Share (Diluted) ($0.01) ($0.10) ($0.24) ($0.18) Weighted average shares outstanding (Diluted) 50.4 48.7 50.1 48.4 Adjusted EBITDA 13.4 6.3 16.6 13.5 Adjusted EBITDA Margin 21% 12% 14% 13% Stock-based compensation included 10.1 9.5 21.6 19.4 in Operating and Net Income (Loss)
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Reconciliation of Reported Net Income (Loss) to Adjusted EBITDA (Non- GAAP Measure) – Unaudited 7 (unaudited, amounts in thousands) Three Months Ended June 30, Vericel Q2 2025 Financial Results – July 31, 2025 Adjusted EBITDA (In Thousands) 2025 2024 2025 2024 Net Loss (GAAP) $ (553) $ (4,682) $ (11,799) $ (8,544) Stock-based compensation expense 10,140 9,520 21,645 19,354 Depreciation and amortization 2,826 1,323 5,512 2,701 Net interest income (1,500) (1,357) (3,004) (2,966) Pre-occupancy lease expense and tech transfer 2,446 1,509 4,247 2,986 Adjusted EBITDA (Non-GAAP) $ 13,359 $ 6,313 $ 16,601 $ 13,531 Six Months Ended June 30,