VCEL · Vericel Corporation

Vericel Corporation delivered exceptional first quarter 2026 results, with total net revenue surging 30% year-over-year to $68.4 million, fueled by robust growth across its key franchises. MACI, the company's flagship product for knee cartilage repair, posted 22% revenue growth to $56.4 million, marking the fourth consecutive quarter of 20%+ growth and supported by double-digit increases in biopsies and implants, including record levels in several metrics. Burn Care revenues exploded 91% to $12.0 million, driven primarily by Epicel's 119% surge to $10.9 million, reflecting strong adoption in severe burn treatment. Gross margins improved to 72% from 69%, benefiting from operational efficiencies despite scaling production. Operating expenses rose to $57.3 million, attributed to headcount expansion, particularly in the MACI sales force, and costs tied to the new Burlington facility. This resulted in a narrowed GAAP net loss of $6.3 million ($0.12 per diluted share) versus $11.2 million last year, while non-GAAP adjusted EBITDA more than tripled to $9.6 million (14% margin), highlighting progress toward sustained profitability. Cash generation accelerated markedly, with operating cash flow of $16.4 million and free cash flow of $15.1 million, bolstering a strong balance sheet with ~$211 million in cash and investments and zero debt. Management raised full-year guidance significantly, lifting total revenue outlook by $10 million to $326-$336 million, with MACI at $282-$288 million and Burn Care at $44-$48 million, while reaffirming ~75% gross margins and ~27% adjusted EBITDA margins. Key business milestones included FDA approval for MACI production at the new advanced therapy facility and a BARDA award valued at up to $197 million for NexoBrid procurement and development, positioning Vericel for accelerated growth and cash flow inflection amid expanding market penetration.