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VERICELQ2 2026 RESULTSJULY 30, 2026
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Safe Harbor 2Vericel Q2 2026 Financial Results – July 30, 2026 Forward-Looking StatementsVericel cautions you that all statements other than statements of historical fact included inthis presentation that address activities, events or developments that we expect, believe oranticipate will or may occur in the future are forward-looking statements. Although webelieve that we have a reasonable basis for the forward-looking statements containedherein, they are based on current expectations about future events affecting us and aresubject to risks, assumptions, uncertainties and factors relating to our operations andbusiness environment, all of which are difficult to predict and many of which are beyondour control. Our actual results may differ materially from those expressed or implied by theforward-looking statements in this presentation. These statements are often, but are notalways, 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 verbssuch as “will,” “would,” “should,” “could,” “may,” or similar expressions.Among the factors that could cause actual results to differ materially from those set forth inthe forward-looking statements include, but are not limited to, uncertainties associatedwith our expectations regarding future revenue, growth in revenue, market penetration forMACI®, MACI Arthro®, Epicel®, and NexoBrid® in the U.S. and in applicable markets outsidethe U.S., growth in profit, gross margins and operating margins, the ability to continue toscale our manufacturing operations to meet the demand for our cell therapy products, theability to sustain profitability, the expected target surgeon audience, potential fluctuationsin sales and volumes and our results of operations over the course of the year, timing andconduct 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, thetiming and likelihood of obtaining marketing approval for MACI in the United Kingdom, theestimate of the commercial growth potential of our products and product candidates,competitive developments, changes in third-party coverage and reimbursement, includingrecent and future healthcare and drug pricing reform measures and private payorinitiatives, surgeon adoption of MACI Arthro, physician and burn center adoption ofNexoBrid, labor strikes, supply chain disruptions or other events or factors that might affectour ability to manufacture MACI or Epicel or affect MediWound’s ability to manufactureand supply sufficient quantities of NexoBrid to meet customer demand, including but notlimited to conflicts in the Middle East region involving Israel or those related to disruptionsof land or sea transportation routes or distribution or shipping channels, uncertaintiesassociated with the potential benefits of the Company’s agreement with BARDA for theprocurement and development of NexoBrid and the availability of funding from BARDAunder that agreement, negative impacts on the global economy and capital marketsresulting from the conflicts in Ukraine and Iran, as well as other hostilities in the MiddleEast, changes in trade policies and regulations, including the potential for increases orchanges in duties, current and potentially new tariffs or quotas, lingering effects of adversedevelopments affecting financial institutions, companies in the financial services industry orthe financial services industry generally, changes in governmental monetary and fiscalpolicies, including, but not limited to, Federal Reserve policies in connection with continuedinflationary pressures, the impact from future regulatory, judicial and legislative changesaffecting our industry or the broader market, including those included in the One BigBeautiful Bill Act, and a U.S. government shutdown. These and other significant factors are discussed in greater detail in Vericel’s Annual Reporton Form 10-K for the year ended December 31, 2025, filed with the Securities and ExchangeCommission (SEC) on February 26, 2026, Vericel’s Quarterly Report on Form 10-Q for thequarter ended June 30, 2026, filed with the SEC on July 30, 2026, and in other filings withthe SEC. These forward-looking statements reflect our views as of the date hereof andVericel does not assume and specifically disclaims any obligation to update any of theseforward-looking statements to reflect a change in its views or events or circumstances thatoccur after the date of this press release except as required by law.GAAP v. Non-GAAP MeasuresVericel’s reported earnings are prepared in accordance with generally accepted accountingprinciples in the United States, or GAAP, and represent earnings as reported to the SEC.Vericel has provided in this presentation certain financial information that has not beenprepared in accordance with GAAP. Vericel’s management believes that the non-GAAPadjusted EBITDA, which includes adjustments for specific items that are generally notindicative of our core operations, and free cash flow described in this presentation, provideadditional information that is useful to investors in understanding Vericel’s underlyingperformance, business and performance trends, and helps facilitate period-to-periodcomparisons and comparisons of its financial measures with other companies in Vericel’sindustry. However, the non-GAAP financial measures that Vericel uses may differ frommeasures that other companies may use. Non-GAAP financial measures are not required tobe uniformly applied, are not audited and should not be considered in isolation or assubstitutes for results prepared in accordance with GAAP.
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3 $77.5MTotal Revenue+22%MACIBurn Care$12.0$65.53 MACI Momentum Continues:Record second quarter MACI revenue with 23% growth as sales force expansion, MACI Arthro rollout and commercial excellence initiatives drive strong executionBurn Care Growth of 22%:Burn Care revenue of ~$12M, with strong Epicel revenue and record NexoBrid quarterly revenueIncreasing Profitability:GAAP net income positive in a second quarter for the first time; adjusted EBITDA of ~$15MInflecting Cash Generation:Free cash flow of ~$14M in the quarter; ~$227M in cash and investments, an increase of more than $60 million versus the prior yearCapital Allocation Strategy: Board authorized $200M Share Repurchase Program Record Q2 Total Revenue: Record second quarter revenue of $77.5M driven by strong performance for MACI and Burn Care Longer-Term Value Drivers:MACI manufacturing transitioning to new facility; MACI OUS expansion progressing toward potential UK launch; NexoBrid BARDA award strengthens Burn Care Q2 2026 Financial ResultsQ2 Key Business Highlights+23%+22%$13.4$14.9Q2 2025 Q2 2026Adj. EBITDA ($M)$0.1$14.3Q2 2025 Q2 2026Free Cash Flow ($M)Vericel Q2 2026 Financial Results – July 30, 2026$46.6$56.4Q2 2025 Q2 2026Gross Profit ($M)-$0.6$2.2Q2 2025 Q2 2026Net Income ($M)
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MACI Continues to Deliver T op-Tier Revenue Growth 419%21%15%21%25%23%22%23%Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 20262026 MACI Growth DriversContinuation of recent growth driver trends including surgeon growth, biopsies per surgeon, conversion rate and priceMACI Arthro supporting higher growth in small condyle defects (largest segment of TAM)30% increase in sales force to start 2026 will increase penetration into customer baseStrong market access with over 95% of prior authorization submissions approved in 2025Rolling Four-Quarter Growth Rate of 23%Rolling Four-Quarter Growth Rate of 19%Vericel Q2 2026 Financial Results – July 30, 2026
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5 T op-Tier Revenue Growth across the Portfolio Translating into Strong Financial Results Over the Last Four Quarters23% 23% 23%MACI Burn Care VCELRolling Four-QuarterRevenue Growth~$24M of Net Income~40% adjusted EBITDA growth~$62M of Free Cash Flow generationRolling Four-Quarter Profitability & Cash Generation Vericel Q2 2026 Financial Results – July 30, 2026
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2026 Financial GuidanceRaising Full-Year Revenue Guidance Vericel Q2 2026 Financial Results – July 30, 20266 2024 2025 2026Guidance$MillionsTotal Revenue$276M$237M 23%26%27%2024 2025 2026Guidance% of RevenueAdjusted EBITDA Margin 73%74%75%2024 2025 2026Guidance% of RevenueGross MarginMaintaining Gross Margin Guidance of ~75%Maintaining Adjusted EBITDA Margin Guidance of ~27%Raising Full-Year Revenue Guidance Range to $330-$340M$330M-$340M
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Cash and Balance Sheet Highlights Vericel Q2 2026 Financial Results – July 30, 2026 7-$7.5$29.4H1 2025 H1 2026+$36.9MBalance Sheet SummaryAs of June 30, 2026Free Cash Flow ($M)~$227MTotal cash and investments$0Debt$200MShare repurchase program authorized by Board of Directors
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2025202620252026Unaudited ($M except per share amounts) $115.8$145.9$63.2$77.5Net Revenue82.9105.746.656.4Gross Profit72%72%74%73%Gross Margin14.015.66.77.5Research and Development83.797.741.948.5Selling, General and Administrative97.7113.348.656.0Total Operating Expenses(14.8)(7.6)(2.0)0.4Operating Income (Loss)(11.8)(4.1)(0.6)2.2Net Income (Loss)($0.24)($0.08)($0.01)$0.04Net Income (Loss) Per Share (Diluted)50.150.950.452.3Weighted Average Shares (Diluted)16.624.413.414.9Adjusted EBITDA14%17%21%19%Adjusted EBITDA Margin Q2 2026 Financial Results 8 Income Statement Summary Vericel Q2 2026 Financial Results – July 30, 2026 Three months ending June 30,Six months ending June 30,
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Reconciliation of Non-GAAP Measures 9 2025202620252026Reconciliation of Adjusted EBITDA ($M)($11.8)($4.1)($0.6)$2.2Net Income (Loss) (GAAP)21.620.410.19.1Stock-based compensation expense5.56.92.83.6Depreciation and amortization(3.0)(3.5)(1.5)(1.8)Net interest income4.34.72.51.8Pre-occupancy lease expense and tech transfer16.624.413.414.9Adjusted EBITDA (Non-GAAP)Vericel Q2 2026 Financial Results – July 30, 20262025202620252026Reconciliation of Free Cash Flow ($M)$14.8$32.68.216.2Net cash provided by operating activities(22.4)(3.2)(8.1)(1.9)Capital expenditures(7.5)29.40.114.3Free cash flow (Non-GAAP)(24.2)(7.0)(9.0)(2.8)Net cash used in investing activities4.8(0.3)1.62.7Net cash provided by (used in) financing activities Three months ending June 30, Six months ending June 30,Three months ending June 30, Six months ending June 30,