Q2 2025 LeMaitre Vascular Inc Earnings Call
Welcome to the lit. Vascular, Q2, 2025 fiscal 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 lamut. Vascular. Please go ahead, sir.
Dorian LeBlanc: Thank you, Operator. Good afternoon, and thank you for joining us on our Q2 2025 conference call. With me on today's call is our CEO, George LeMayte, and our President, Dave Roberts. Before we begin, I'll read our safe harbor statement. Today, we'll be making some forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995, the accuracy of which is subject to risks and uncertainties. Wherever possible, we will try to identify those 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, August 5, 2025, and should not be relied upon as representing our estimates or views on any subsequent date.
Thank you, operator.
Good afternoon and thank you for joining us on our Q2 2025 conference call with me. On today's call is our CEO George lead and our president Dave Roberts. Before we begin I'll read our Safe Harbor statement
Today, we'll be making some forward-looking statements within the meeting of the US private Securities, litigation Reform, Act of 1995, the accuracy of, which is subject to risks and uncertainties.
Dorian LeBlanc: 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 disclosures 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 the call is contained in the associated press release and is available in the investor relations section of our website, www.lemaite.com. I'll now turn the call over to George LeMayte.
Wherever possible, we will try to identify those 4 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, August 5th, 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 10K and subsequent SEC filings, including disclosures 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 the call is contained in the Associated Press release and is available in the investor relations section of our website. Www.le
George LeMaitre: Thanks, Dorian. Q2 is strong across the board, with sales up 15%, a 70% gross margin, and EPS up 16%. As a result, we're increasing full-year guidance for sales, gross margin, op income, and EPS. Q2 sales were led by catheters up 27% and graphs up 19%, while ValuTomes and Shunts were both up 13%. By geography, AMIA grew 23%, Americas 12%, and APAC 12%. Our international autograph launch exceeded expectations in Q2, with sales of 420,000, up from 185,000 in Q1. International autograph sales should surpass 2 million in full-year 2025. Autograph is currently approved in the US, EU, UK, Australia, New Zealand, South Africa, Israel, Thailand, and Malaysia, and 2026 approvals are likely in Canada, Korea, and Singapore. Autograph was the company's largest US product in 2024, with $37 million in US sales.
I'll now turn the call over to George Le
70% gross margin and EPS up 16%.
As a result we're increasing fully your guidance for sales. Gross margin op, income and eps.
Q2 sales were led by catheters up 27% and graphs up 19% while valve homes and chunks were both up 13%.
By geography Amia grew 23% America's 12% in APAC 12%.
Our International autograph, launches in Q2 with sales of 420,000 up from 185,000 in q1.
International autograph. Sales should surpass 2 million in full year 2025.
Autograph is currently approved in the US EU. UK Australia, New Zealand, South Africa, Israel, Thailand, and Malaysia.
George LeMaitre: As for restore flow, we continue to anticipate at least one European approval in 2025, either Ireland or Germany. Unfortunately, there is no EU-wide approval for allografts, but one approval in Europe should expedite others. To support the impending European launches, we are opening a restore flow distribution facility in Dublin this year. Restore flow is currently approved in just three countries: the US, the UK, and Canada. In China, our Zenissure vascular patch remains on track for final submission in Q4. Approval might come in 2026. This follows the Q4 2024 Chinese Zenissure cardiac patch approval. We ended Q2 with 164 sales reps and 33 sales managers, and our international GoDirect efforts continue. We recently posted our first Portuguese and Czech direct-to-hospital sales. 2025 is shaping up to be another year of healthy sales and profit growth. I'll now turn the call over to Dorian.
And 2026 approvals are likely in Canada, Korea and Singapore. Part of graph is the company's largest US product in 2024 with 37 million in US sales.
As for a store flow, we continue to anticipate at least 1 European approval in 2025.
Either Ireland or Germany.
Unfortunately, there is no EU wide approval for Allegra's.
But 1 approval in Europe, should expedite others.
To support the impending. European launches, we are opening a restore flow distribution facility in Dublin, this year,
Restore flow is currently approved in just 3 countries.
The US, the UK, and Canada.
In China are our Zen assure. Vascular patch remains on track for final submission in Q4
approval might come in 2026, this follows the Q4 2024, Chinese Xena shirt, cardiac patch approval
We ended Q2 with 164 sales, reps and 333 sales managers and our International go direct efforts continue.
We recently posted our first Portuguese and check direct to hospital sales.
2025 is shaping up to be to be another year of healthy sales and profit growth.
I'll now turn the call over to Dorian.
Dorian LeBlanc: Thanks, George. LeMayte's strong organic revenue growth continued in the second quarter. Our 15% organic growth, consisting of 8% price growth and 7% unit growth, was highlighted by the strong unit growth of autograph, Zenissure, restore flow, and catheters. Our biologics continued their strong growth, and as George discussed, our current regulatory progress provides future international growth opportunities across the biologics portfolio. Cardiac restore flow was the largest product contributor to unit sales growth, as our sales team continued to expand on our success at Open Cardiac. In Q2, we initiated a packaging-related recall on a portion of our catheters. After a temporary supply disruption, customers placed stocking orders late in the quarter, which boosted overall catheter sales. We don't expect this to be repeated in Q3. Year-over-year reported revenue growth of 15% benefited from the weaker US dollar, as foreign exchange added 1 million to reported sales.
Thanks George lemate, strong organic Revenue, growth continued in the second quarter, our 15% organic growth, consisting of 8% price growth and 7% unit. Growth was highlighted by the strong unit. Growth of articraft xenos, shore restore flow and catheters
Our biologics continued their strong growth.
And as George discussed, our current regulatory progress provides future, International growth opportunities across the biological portfolio.
Cardiac restore flow was the largest product contributor to unit sales growth as our sales. Team continued to expand on our success at open cardiac
In Q2, we initiated a packaging related recall on a portion of our catheters.
After a temporary Supply disruption, customers Place stocking orders late in the quarter, which boosted overall catheter sales. We don't expect this to be repeated in Q3.
Dorian LeBlanc: This was offset by the Azeo discontinuation, which decreased reported revenues 1.1 million. In Q2 2025, we posted a 70% gross margin. The 110 basis point increase year-over-year was driven primarily by higher average selling prices, the continued benefit of manufacturing efficiencies, and positive product mix. Operating expenses in Q2 2025 were 28.8 million, an increase of 20% versus Q2 2024. The increase was driven largely by higher compensation expenses, including the addition of 23 sales professionals, and the expansion of our European direct sales model, including the Portuguese and Czech GoDirect efforts. Q2 2025 operating income was 16.1 million, up 12%, resulting in an operating margin of 25%. Net income increased 17% year-over-year to 13.8 million. We benefited from 1.7 million of net interest income in Q2 as yield on our invested cash exceeded interest expense on our convertible debt. Fully diluted EPS was 60 cents, up 16%.
Year-over-year, reported Revenue growth of 15% benefited from the weaker US dollar as foreign exchange added 1 million to reported sales.
this was offset by the azio discontinuation, which decreased reported revenues, 1.1 million,
In Q2 2025, we posted a 70%, gross margin.
The 110 basis point increase year-over-year was driven primarily by higher average selling prices, the continued benefit of manufacturing efficiencies and positive product mix.
Operating expenses in Q2 2025, or 28.8 million an increase of 20% versus Q2 2024.
The increase was driven largely by higher compensation expenses.
Including the addition of 23 sales professionals.
And the expansion of our European direct sales model, including the Portuguese and check go direct efforts.
Q2 2025 operating income was 16.1 million up. 12%! Resulting in an operating margin of 25%.
Net income increased 17% year-over-year to 13.8 million.
We benefited from 1.7 million of net interest income in Q2 as yielding, our invested cash. Exceeded interest expense on our convertible debt.
Dorian LeBlanc: We ended Q2 2025 with 319.5 million in cash and securities, an increase of 17 million in the quarter. Cash from operations generated a record 20.3 million in Q2, and we paid 4.5 million in dividends to shareholders. As the landscape around international trade continues to evolve, LeMayte remains confident in our global business model. So far, the only tariff-driven price adjustment we've made is a 25% average increase in China. During the quarter, we also increased inventory at our international warehouses, anticipating potential tariff increases. Our US-only manufacturing, niche product portfolio, and direct sales model give us confidence tariffs will not materially impact our financials in the second half of the year. We have raised our full-year revenue guidance to 251 million and 15% organic growth due to the impact of our growing sales organization and our success across global markets.
Fully diluted EPS with 60 cents up 16%.
We ended Q2 2025 with 319.5 million in cash and securities an increase of 17 million in the quarter.
Cash from operations generated a record. 20.3 million in Q2 and we paid 4.5 million in dividends to shareholders.
As the landscape around International Trade, continues to evolve.
The mate remains confident in our Global business model.
during the quarter, we also increased inventory at our International warehouses anticipating potential, tariff increases
Our us only manufacturing Niche product portfolio and direct sales model. Give us confidence, tariffs will not materially impact our financials in the second half of the year.
Dorian LeBlanc: We anticipate a full-year gross margin of 69.7% and operating income of 60.9 million, up 17%. We expect operating expenses to be lower in the second half of 2025 versus the first half of 2025, resulting in a 24% operating margin for the year. We also have increased our guidance on fully diluted earnings per share to $2.30, up 19%. With that, I'll turn it back over to the operator for questions.
We have raised our full year Revenue guidance to 251 million in 15%. Organic growth due to the impact of our growing sales organization, and our success of cross Global markets
We anticipate a full year gross margin of 69.7% and operating income of 60.9 million up to 17%.
We expect operating expenses to be lower in the second half of 2025 versus the first half of 2025 resulting in a 24% offering margin for the year.
We also have increased our guidance on fully glutened earnings per share to $2.30 up, 19%.
With that, I'll turn it back over to the operator for questions.
Operator: Thank you. At this time, we'll conduct the question and answer session. As a reminder, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from Michael Sarconi of Jeffries. Your line is now open.
Thank you.
at this time, we'll
Ask a question, you will need to press star 1, 1 1 on your telephone, and wait for your name to be announced.
To withdraw your question. Please press star 1 1, again please, stand by while we compile the Q&A roster.
Michael Petusky: Hey, good afternoon, and thanks for taking the questions. just the first one for me. you talked about some of the stocking orders at the end of, 2Q. I guess, could you just give us an update and and maybe help quantify what the impact was, in the quarter? You did have some pretty strong, unit volume growth of of 7%. Just wanted to get a sense for, you know, how much that was impacted by the, the stocking.
Our first question comes from Michael Cerrone of Jeffrey's. Your line is now open.
George LeMaitre: Right. So we, it's, you can't always tell, but we're, hi, Mike. This is George. How are you doing? Nice to talk to you.
Hey, good afternoon, and thanks for taking the questions. Um, just first 1 for me. Um, you talked about some of the stocking order that at the end of, uh, 2q I guess, could you just give us an update and and maybe help quantify what the impact was. Um, in the quarter, you did have some pretty strong uh unit volume growth of of 7% just wanted to get a sense for you know, how much that was impacted by the uh the stocking?
Michael Petusky: Good.
George LeMaitre: we're thinking it's around $800,000 in the quarter, and that's around that catheter recall, which, which, Dorian, detailed for you.
Right. So we it it's uh you can't always tell but we're hi Mike, this is George. How you doing? Nice to talk to you. Um, we're thinking it's around $800,000 in the quarter and that's around that catheter recall which which um, Dorian uh, detailed for you.
Michael Petusky: Got it. very helpful. And then, you know, figure out I'll ask another strong quarter of of price taking at at 8%. maybe you can talk about, how you're thinking about the sustainability of of that level of price taking going forward.
George LeMaitre: Right. So, so maybe during this year, we don't have to think about it too, too much. We're starting to establish a pattern in Q1 and Q2. and so maybe, maybe it's set up for the year. as to next year, I don't know. We did, I remember last fall, we started getting questions very early about when will you do your price hike and how much will it be? And of course, I, I don't want to go, I know you're not asking me to go into 2025, but we, we will certainly do a price hike on January 1st around the world. And, you know, I would say the cadence that we've set is probably what happens, but we just don't know. And, and we can't commit to anything just yet.
Got it, uh, very helpful and then, you know, figure I'll ask another strong quarter of of price taking at at 8%. Um, maybe you can talk about uh how you're thinking about the sustainability of of that level of price tag and going forward.
Michael Petusky: Understood. Thanks, George.
Right. So, so maybe during this year we don't have to think about it too, too much. We're starting to establish a pattern in q1 and Q2. Um, and so maybe, maybe it's set up for the year. Um, as to next year, I don't know. We did I remember last fall, we started getting questions, very early about, when will you do your price hike? And how much will it be? And of course, I I don't want to go, I know you're not asking me to go into 2025 but we we will certainly do a price hike on January 1st, around the world. And you know I would say the Cadence that we've set is probably what happens but we just don't know and and we can't commit to anything just yet.
George LeMaitre: Thanks a lot.
I understood. Thanks George.
Thanks a lot.
Operator: Our next question comes from Michael Petuski of Barrington Research. Your line is now open.
Michael Petusky: Hey, good evening, guys. so I guess I wanted to ask, or try to drill down a little bit more on the unit volume growth. Obviously, it sounds like the catheter stocking contributed to that. But you guys also called out, autograph, which I, I guess I get because of the, the CE mark and the MDR there, but also Zenissure and, and, and I think possibly one or one or two other product categories. Could you just sort of drill down on, on what may have been going, going on there? Because it's seven, honestly, 7% is a, it's a big number relative, to recent history and obviously a great number. Thanks.
Our next question comes from Michael petuski of barington research. Your line is now open.
George LeMaitre: And, and, and Mike, we agree. Hi, this is George. Nice, nice to talk to you again. And yes, we agree, it's a bigger number. You know, if you, if you extract out the catheter thing that we just talked about, it's really 5%. And quite honestly, that's sort of the last three years. 2023 was 5%. 2024 was 4%. And so far, I, I, sorry, and I don't know what the H1 number was. I'm only going after Q. This stripped out of the catheter thing is 5%. With the catheter stripped out, it's 5%. But let's go further here because you, because you touched on a couple of other good topics here. It's not just all about the catheters. autograph, as you know, is in the middle of this really nice European launch, and the units were up 10%. Zenissure just had another great quarter.
Hey, uh, good evening guys. Um, so I guess I wanted to ask uh, or try to drill down a little bit more on the human volume growth. Obviously, it sounds like the catheter stocking contributed to that. But you guys also called out um, artograph which I, I guess I get because of the uh uh, the CE Mark and the MDR there. Uh but also Xena Shore and and and I think possibly 1 or 1 or 2 other product categories. Could you just sort of drill down on on? What may have been going going on there? Because it was 7, honest 7% is a, it's a big number relative uh to recent history and obviously great number.
George LeMaitre: It was up 9% in Europe, and RFA Cardiac was up 61%. So we keep making strides on a small base, albeit, but with the RFA Cardiac, that seems to be really working, particularly in the United States.
Michael Petusky: Okay. Terrific. and, you know, I want to make sure, Dave gets in on some action. anything, anything interesting to talk about, just in terms of assets that are out there, conversations you're having, any areas of interest, that that may be new. Thanks.
Another great quarter, it was up 9% in Europe and RFA cardiac was up 61% so we keep making strides on a small base albeit, but with the RFA cardiac that seems to be really working particularly in the United States.
Dave Roberts: Hi, Mike. Thanks for the question. I would say nothing like too new and groundbreaking. you know, we, we do continue to hunt in open vascular, and cardiac surgery. We, we now get about 13% of our revenue in cardiac surgery. you know, we have issued a few term sheets in the last few years. So we have been active, but, nothing really new to report on this call. I think our revenue sweet spot is, 15 million kind of minimum, and then, you know, on up from there to, I don't know, 100, 150 million of revenue. I think probably preferentially, we like the drop-ins, but occasionally, there's a larger target we might look at.
Okay, to to terrific. Uh, and, uh, you know, I want to make sure Dave gets in on some action. Uh, anything. Uh, anything interesting to talk about just in terms of assets that are out there conversations, you're having any areas of interest that, that may be new. Thanks,
Hi, Mike, thanks for the question. Um, I would say nothing like too new and groundbreaking uh, you know, we we do continue to hunt in open vascular. Um, and cardiac surgery we we now get about 13% of our Revenue in cardiac surgery. Um, you know, we have issued a few term sheets in the last few years so we have been active um but uh nothing really new to report on this call. Um, I think our Revenue sweet spot is
George LeMaitre: You know, Mike, this is George again. Maybe, maybe a little bit more detail. You asked about the unit growth. Maybe I can go back and give you the last four quarters because I was not able to pull that Q1 from memory. But here they are starting in Q3 of last year. This is unit growth, not price, just unit growth. 6, 6, 4, 7 being this quarter. So 6, 6, 4, 7. I think if you put all those together, you're getting a 5% type company. Unit growth, not pricing.
Uh 15 million kind of minimum and then you know, on up from there to I don't know, 100 150 million of Revenue. I think probably preferentially we like to drop in but occasionally there's a larger Target. We might look at
You know Mike this is George again, maybe maybe a little bit more detail. You asked about the unit growth, maybe I can go back and give you the last 4 quarters because I was not able to pull that q1 from memory but here they are starting in Q3 of last year. This is unit. Growth not priced just unit growth.
6.
6.
Michael Petusky: Okay. I appreciate that. I, I was not remembering unit growth quite that strong, but thank you. I appreciate it.
47 being this quarter so 6647. I think if you put all those together, you're getting a 5% type company unit. Growth not pricing.
George LeMaitre: No problem.
Okay, I appreciate that. I I was not remembering it uh unit growth quite that strong but thank you, I appreciate it.
No problem.
Michael Petusky: And Operator, maybe we need to line up the next question here.
Operator: Yes. So our next question comes from Brett Fishman of McKee or Key Blanc. Your line is now open.
Brett Fishbin: Hey, guys. Thanks very much for taking the questions. I just wanted to follow up again on autograph. Seemed to see a nice sequential increase there in the revenue. And I just wanted to make sure that, you know, we heard the comments for the full year correctly. I wanted to verify 2 million was the full year number. And then if that's right, it seems to imply maybe around 700K on average per quarter in the back half, which is about double what you previously expected. So maybe just talk more about what's driving the upside versus your preliminary expectations from last quarter.
And operator. Maybe we need to line up the next question here. Yes. So our next question comes from Brett. Fishman of mcke or key Blanc. Your line is now open.
Um, hey guys, thanks very much for taking the questions. Um, just wanted to follow up again on autographed, um, seemed to see a nice sequential increase there in the revenue and just wanted to make sure that, you know, we heard the comments for the full year correctly. Um, wanted to verify 2 million, was the full year number. And then if that's right seems to imply maybe around 700k on average per quarter in the back half, which is about double what you previously expected. So, maybe just talk more about what's driving the upside?
George LeMaitre: Hi, Brett. It's George again. Thanks for the question. It's a great question. Yes, you did hear right. It's 2 million for the year, and we've logged 480,000. Is that right? It was at 200 in the first quarter and then 400 in the second quarter. So that makes your math approximately correct. I think we're not going to guide on exactly when this stuff happens in which quarter, but obviously it can only happen in two quarters. So yeah, I mean, I think we came on, remember, we only got the approval, I think, at the right before the earnings call the last time or right at, yeah, right before the earnings call. I think we were typing it in that day or something like that. So we didn't really have much experience in Europe with the device before that.
Versus your preliminary expectations from last quarter.
George LeMaitre: And so, you know, you're seeing us piling up two months of nice results in Europe and also in South Africa in particular as well. So it's going quite well. And so we're just pushing the guidance up on that particular product because we know you want to see that called out.
Brett Fishbin: All right. Really helpful. And then just one follow-up from me. Just some of my math seems to suggest a pretty significant operating margin ramp in 4Q as compared to 3Q. Just wanted to kind of gut-check that cadence. And maybe if you could just call out any, you know, moving pieces between 3Q and 4Q, that would, you know, support a much higher exit rate coming out of 2025. Thank you.
Hi Brett. It's George again, thanks for the question. It's a great question. Yes, you did hear, right? It's 2 million for the year and we've logged 480,000, is that right? It was a 200 in the first quarter then 400 in the second quarter so that that makes your math approximately correct. I think we. We're not going to guide on exactly when this stuff happens in which quarter but obviously can I only have it in 2 quarters? So yeah, I mean, I think we came on. Remember, we only got the approval, I think, uh, at the right before the earnings call the last time, or right, at ya, right before the earnings call? I think we were typing it in that day or something like that. So we didn't really have much experience in Europe with the device before that. And so you know you're seeing us piling up 2 months of nice results in Europe and also in South Africa in particular as well. So it's going quite well. Um, and so we're just pushing the guidance up on that particular product because we know you want to see that called out.
And then just 1 follow up from me. Um,
George LeMaitre: Yeah, Brett. Thanks. It's Dorian. I think there is some seasonality here. Q3 tends to be one of our lower quarters with the European summer impacting revenue. So you're going to see, and if you maybe probably do the math to imply the fourth quarter, you'll see a revenue difference stepping up from Q3 to Q4. And in addition, you know, I think we mentioned in the script that overall operating expenses lower in the second half of the year than the first half. Again, there's the seasonality element there around variable compensation as well. But we also did set the table in the first half of the year with some of the investments we made around the increase of the sales force, the GoDirects in Europe, some of the office builds.
just some of my math seems to suggest a pretty significant operating margin ramp in 4 q as compared to 3 Q. Um just wanted to kind of got check that Cadence um and maybe if you could just call out any you know, moving pieces between 3 q and 4 q that would you know, support a much higher exit rate coming out of 2025. Thank you.
Yeah, Brett thanks, it's Dorian. Uh, I think there is some seasonality here. Q3 tends to be, uh, 1 of our lower quarters with the the European summer, um, in impacting Revenue. So you, you're going to see in if you maybe probably do the math, uh, to imply the fourth quarter, you'll see a revenue difference. Stepping up from
George LeMaitre: So some of that will fall off in the second half of the year, things like recruiting fees and the product launch costs for autograph. So we'll have the benefit of that. We do have a benefit coming through as well around the regulatory expense for the MDRs. That's largely behind us. So in the third and fourth quarter, we'll see some of that coming off.
Lower in the second half of the year than the first half. Again, there's the seasonality element there around variable compensation as well. Um, but we also did set the table uh, in the first half of the year, with some of the Investments, we made around the increase of the sales force that go directs in Europe some of the office builds. So some of that will fall off in the second half of the Year things like recruiting fees and uh, the product launch costs for our graph. So we'll have the benefit of that.
Brett Fishbin: Thank you, Dorian. That helps.
We do have a, a benefit coming through as well around the, uh, regulatory expense for the mdrs that's largely behind us. Uh, so in the third and fourth quarter, uh, we'll see some of that, uh, coming off.
George LeMaitre: Yeah, that was great. Thank you.
That helps.
Thank you.
Operator: Thank you. Our next question comes from Rick Wise of Stifle. Your line is now open.
Annie (for Rick Wise): Hi, this is Annie on for Rick. Thanks for taking our questions. So for the first one, I was just curious about your sales force expansion plans. On the last call, I believe you were targeting 170 sales reps by year-end, and it looks like you ended 2Q with 164 reps. So are you still feeling good about that 170 number? And separately, can you talk to us about where you plan to focus these new reps from a product or geographic standpoint?
Thank you. Our next question comes from Rick Wise of stifle. Your line is now open.
Hi. This is Annie on for Rick, thanks for taking our questions. Uh, so for the first 1, I was just curious about your sales force, expansion plans. Um, on the last call, I believe you were targeting 170 sales reps by year end. And it looks like you ended too cute with 164 reps. So are you still still feeling good about that? 170 number and separately? Can you talk to us?
George LeMaitre: Okay. Annie, thanks a lot for the questions. George. Yeah, so we got to 164. I would say, you know, if we said 165 to 170, I think that was what we were after last time. You may remember 170. I feel like we're sort of more in the 165 range right now, but I don't think that's a material difference. I think we've gotten up to a place and we feel really good about it. You can see the results in Q2. So, I think 165 is where we're going to wind up at the end of the year, although these things turn on a dime. Three people quit, you hire five people, it goes up and down. in terms of where and what product lines, same same business as usual. We have set at this 164, we have 77 reps in the US, excuse me, US and Canada.
about where you plan to focus these new reps uh from a product or Geographic uh,
Standpoint.
George LeMaitre: We have 57 in Europe and 30 in Asia Pac, and they all carry the entire bag. There's no specialized sales forces here.
Annie (for Rick Wise): Got it. Thanks for the color there. And then also, I'm wondering how we should think about, international sales growth heading into the back half of the year. it seemed particularly strong this quarter, up 21%. So curious if we should expect similar growth into the back half or if there are any specific market dynamics that we need to be sensitive to.
Okay, Annie. Thanks a lot for the questions. George. Yeah. So we got to 164. I would say, you know, if we said 165 to 170, I think that was what we were after last time you, you may remember 170. Um, I feel like we're sort of more than 165 range right now, but I don't think that's a material difference. I think we've gotten up to a place and we feel really good about it. You can see the results in Q2. So, um, I think 165 is where we're going to wind up at the end of the year, although these things turn on a dime. 3 people quit, you hire 5 people. It goes up and down. Um, in terms of where and what product lines, um, same same business, as usual, we have set at this 164, we have 77 reps in the US, excuse me, US and Canada. We have 57 in Europe and 30 in Asia pack and they all carry the entire bag. There's no Specialized Sales forces here.
thanks for the color there, and then
Also, I'm wondering how we should think about uh, International sales growth heading into the back half of the year. Uh,
George LeMaitre: I mean, we we try not to split up the guidance between what's going to happen in North America and Europe, but I think you can tell things are going great in Europe for us. And the big opening here, the very big opening that we've got is this autographed in Europe right now thing. we also have coming along, as I mentioned in my script, RFA in Europe. And that will come along. It will come along later. Maybe that's, you know, material revenues in 26, late 26, I don't know, early 26, something like that. but right now, you do have that dynamic, which is in Europe. You don't have that type of mega launch going on in the US. That being said, we've had a nice turnaround in the US proper over the last couple of quarters.
It seemed particularly strong this quarter up 21%. So curious, if we should expect similar growth into the back half, or if there are any specific market dynamics, that we need to be sensitive to
George LeMaitre: And this this quarter with with America's being a 12% number, I think reported, in organic was, can anyone help me with what was the organic America's number? 15% organic, sorry, 15% organic America's number. you're starting to see the US, not just Canada now, but the US sort of pull the cart, if you will, in North America. So you've had a couple of nice quarters in the US. So not to be forgotten about is the US, but of course, as you can see, 23% reported growth in Europe. Things are going fantastic over there for a number of reasons.
I mean, we we try not to split up the guidance between, what's going to happen in North America and Europe. But I think you can tell things are going great in Europe for us. And the big opening here, the very big opening that we've got is this article in Europe right now thing. Um, we also have coming along as I mentioned, in my script, uh, RFA in Europe and that will come along, we'll, it will come along later. Maybe that's a, you know, material revenues in 26, 20 laight, 26 something. I don't know, early 26th something like that. Um, but but right now, you do have that Dynamic, which is in Europe. You don't have that type of Mega launch going on in the US, that being said, we've had a nice turnaround in the US, proper over the last couple of quarters and this, this quarter with, with America's being a 12% number. I think reported, um, an organic was, can anyone help me with what was the organic America's number?
Annie (for Rick Wise): Got it. Thanks so much.
15% or sorry, 15% organic America's number. Um, you're starting to see the US, not just Canada now but the US sort of pull the cart, if you will in North America. It's about a couple nice quarters in the US. So not to be forgotten about as the us, but of course, as you can see, 23% reported growth in Europe. Things are going fantastic over there for a number of reasons.
Mhm.
Got it. Thanks so much.
Operator: Thank you. Our next call comes from Suraj Kella with Oppenheimer and Company. Your line is now open.
Suraj Kalia: Hey, George. Can you hear me all right?
Thank you. Our next call comes from siraj Kayla with Oppenheimer and Company. Your line is now open.
George LeMaitre: Perfectly, Suraj. Hello.
Hey, George. Can you hear me? All right.
Suraj Kalia: Hi there. So, George, a couple of questions, and I'll pose them right up front. George, you know, there is generally, a certain level of uncertainty in the trade and tariff environment. I appreciate your commentary about, you know, China being one of those, pockets where you'll have managed, you know, these issues. But as you look at the current environment, George, how do you all strategically prioritize, you know, different products for price increases versus volume impacts? I guess I'm trying to understand what is the sensitivity of different buckets of products. How, how do you, how are you all navigating? I got to increase the price for autograph. I got to reduce the price for a store flow, or whatever, in the current environment. Obviously, nominal growth is important. I get that.
Perfectly siraj. Hello.
Hi there. So George a couple of questions and I'll pose them right up front. Um George you know that is generally.
Yeah. Uh, Pockets where you'll have managed? Uh uh uh, you know these issues.
but as you look at the current environment, George
how do you all strategically, prioritize? You know, different products?
Suraj Kalia: But just as your long-term strategically, as you think about it, I'd love to get any color there if possible.
George LeMaitre: Yeah. And of course, Suraj, thanks for the question. Of course, this is a huge topic at the end of every year as we're going over the cusp into the new year. I mean, I would say it's just a lot of it is driven by logic. If you have 80% market share in a smallish market, you can move prices. And if you have 12% market share in a large market, you can't move prices. So I think, I think the foundation of this company is we try to stay in niches, where we can have some kind of impact in that niches. And that means you're going back to the Jack Welch strategy over and over again. chairman of GM, excuse me, GE, you know, if you're number one or number two in the market, things are going to go well for you.
For price increases versus volume impacts. I guess I'm trying to understand what is the sensitivity of different buckets of products. How, how do you? How are you navigating? I got to increase the price for autograph, I got to reduce the price for a store Flow by or whatever uh in the current environment. Obviously nominal growth is important, I get that but just as you long-term strategically, as you think about it I'd love to get any color there if possible.
Yeah. And of course, Raj, thanks for the question. Of course this is a huge Topic at the end of every year as we're going over the cusp into the new year. I mean, I would say it's just a lot of it is driven by Logic. If you have 80% market share in a smallish Market, you can move prices and if you have 12% market share in a large Market, you can't move prices. So I think, I think the foundation of this company is we try to stay in niches.
George LeMaitre: If you're number four in a market, you're going to be struggling, and you're going to be taking prices from someone else. So I would say maybe it's not much more complex than the Jack Welch, number one or number two in the market strategy. Internationally, maybe we have a little twist on this too, Suraj, which is if you go to places, for instance, we went to Thailand, you saw that. We went to Portugal recently. If you go to some of these slightly off the beaten track markets, you find that the other big competitors in Vascular don't necessarily follow you because they feel funny going to their board of directors and saying, "Hey, we're going direct in Korea next week." And they're like, "What?
Uh, where we can have some kind of impact in that niches, and that means in going back to the Jack Welch strategy over and over again. Um, chairman of GM, excuse me, g e. Uh, you know, if you're number 1 or number 2 in the market, things are going to go. Well for you, if your number 4 in the market, you're going to be struggling and you're going to be taking prices from someone else. So I would say maybe it's not much more complex than the Jack Welch. Uh, number 1 or number 2 in the market, strategy internationally, maybe we have a little twist on this to Suraj, which is if you go to places, for instance, we went to Thailand. You saw that we went to Portugal recently. If you go to some of these slightly off the Beaten Track markets,
George LeMaitre: What are you, why are you doing that?" And as a result, I think we're finding ourselves in these off the beaten track markets where we can take advantage of pricing because the other competitors don't follow us to those markets. So two ways to look at it. I hope that starts to answer your question, Suraj.
Suraj Kalia: Fair enough. And George, how would you characterize the churn in your sales force in the current environment? Gentlemen, thank you for taking my questions.
You find that the other big competitors and LeMaitre Vascular don't necessarily follow you because they feel funny going to their board of directors and saying, "Hey, we're going direct in Korea next week." And they're like, "What? What do you mean you're doing that?" As a result, I think we're finding ourselves in these off-the-beaten-track markets where we can take advantage of pricing because the other competitors don't follow us to those markets. So, there are two ways to look at it, and I hope that starts to answer your question, Saj.
George LeMaitre: Thanks, Suraj. And you're asking a question inside there. What's the turnover rate probably? And it's 12% right now. I think it's normal and fine. And I've been here for 33 years. We've had a sales force for like 25 of them. And it feels like it bounces around between in a really tight hiring environment, you might get it down to 10. And in a complex environment, it might be up to 15 or 20. So it seems normal to me right now.
Fair enough. And George. Uh, how would you characterize the churn in your sales, force in the current environment? Gentlemen, thank you for taking my questions.
Suraj Kalia: Thank you.
Thanks, Raj, and, and you're asking a question inside their, what's the turnover rate? Probably, and it's 12% right now. Um, I think it's normal and fine and I've been here for 33 years. We've had a sales force for like 25 of them. And it feels like it bounces around between in a really tight hiring environment, you might get it down to 10 and in a complex environment it might be up to 15 or 20. So it seems normal to me right now.
Operator: Thank you. Our next question comes from Nathan Trebek of Wells Fargo. Your line is now open.
Thank you.
Michael Petusky: Thanks. Good evening. Hey, can you by any chance break out how much of the 2 million of autograph sales that you expect this year will be in Europe specifically? And what is the implied share that you're capturing? I think you outsized the market at 8 million before. And where could your market share realistically go in Europe?
Thank you. Our next question comes from Nathan Trebek of Wells, Fargo, your line is now open.
Thanks. Good evening. Um.
George LeMaitre: Right. And you said 2 million in sales, right? I just want to confirm that, right?
Hey, can you by any chance, uh, break out how much of the 2 million of autographs sales? Do you expect? Uh, this year will be in Europe specifically, and what is being applied to share that? You're capturing? I I think you as size the market at 8 million before and where where could your market share? Realistically go in Europe.
Michael Petusky: Yeah, you said 2 million OUS.
Right. And and you, you said 2 million in sales, right? I just want to confirm that, right?
George LeMaitre: Okay. And again, if we have a, most of this is European right now. It is, we are quoting international, but most of it's European for the time being, except for that South Africa plug. But yeah, we've been quoting $8 million there and $8 million dollars rest of the world, right? Not US and not Europe. So we're saying it's a $16 million market for now. And again, this is to be discovered as time goes by. but obviously, 2 divided by 16 is what we think is going to happen right now. but yeah, Dave, Dave's got something to add as well.
Yeah, you said $2 million US.
Okay. And and again, if we have a it most of this is European right now. It is, we are quoting International but most of its Europeans for the time being except for that, South Africa plug. But yeah, we've been quoting 8 million dollars there and 8 million dollars. Oh, oh, rest of the world, right. Not us. And not Europe. So we're saying it's a 16 million dollar market for now. And again, this is
Dave Roberts: Hey, Nathan. it's a good question. In a way, we're kind of building a market OUS because, you know, when you think of dialysis access, which is where autograph is used primarily outside the United States, the only biologic company is LeMayte with Omniflow in Europe. And that's only maybe 15 or 20% used in dialysis access. So, so really, in terms of thinking about market share, we're really creating the market OUS. And I think that's what makes it so exciting. So, yeah, I think, you know, if we continue to see success, could we view the market as larger than 8 plus 8? Possibly. but we're really pleased by the initial success. It's very early days, but the initial success with autographed OUS.
To be discovered as time goes by. Um, but obviously 2 divided by 16 is what we think is going to happen right now. Um, but yeah, Dave, Dave's got some dads as well. Hey, Jason. Um, it's a good question in a way, we're kind of building a market owe us because
Michael Petusky: That's very helpful. Thanks. and then in terms of, you know, assuming you launch restore flow in Germany or Ireland, any way you could kind of quantify the market opportunity in these countries and how we should think about the ramp once you get that approval?
pleased by the initial success is very early days, but the initial success with autographed owe us,
Dave Roberts: Yeah. So Dave, again, here, Nathan. You know, the allograft market in cardiac and vascular is very well understood in the US. It's a $100 to $150 million market, roughly. We think for various reasons, pricing, et cetera, the European market's a little bit smaller, but not materially smaller. And so for us, you know, could we think of an $80 or $100 million market in Europe at maturity? I would say, yeah, that's possible. But it'll take a while to get there. Because as George pointed out already in his prepared remarks, once we get approval either in Ireland or Germany, that doesn't automatically grant us approval in the rest of Europe. We have to go sort of door to door, country by country, seeking those approvals. And then, and then that'll take a little time.
That's very helpful. Thanks. Um, and and then in terms of, you know, assuming you launched restored flow in Germany or Ireland, any way you could kind of quantify the market opportunity in these countries and and how we should think about the ramp, once you get that approval.
Dave Roberts: But then secondly, and this is a pretty important point, you know, allografts, unlike the rest of our business, are a supply-constrained product. You know, in general, if we could get our hands on more allografts, we could sell more. And so I will give kudos to our team in the Chicago area who does the processing. We have been able to start an inventory build in Chicago for Europe. But you know, I personally think that will be somewhat of a rate limiter over time, and we've got to figure out a way to satisfy all the demand in Europe over time. But in the near term, we're very excited about Ireland or Germany.
Yeah. Um, so as Dave again here, Nathan, um, you know, the the allegorical Market in cardiac and Vascular is very well understood in the US. It's 100 to 150 million dollar market roughly. Um, we think for various reasons, pricing Etc, um, the European markets, a little bit smaller but not materially smaller. Um, and so for us, you know, could we think of a 80 or 100 million dollar market um, in Europe at maturity? I would say, yeah that's possible. Um, but it'll take a while to get there. Um, because as George pointed out already, in his prepared remarks, once we get approval um either in Ireland or Germany, that doesn't automatically grant us approval in the rest of Europe. We have to go sort of door to door country by country seeking those approvals and then and then set and that'll take a little time. But then secondly,
Dave Roberts: And then, you know, as we turn on Canada and the UK, we met with a lot of success, and we don't really have a reason to believe that we won't in the markets where we first gain approval. So kind of one step at a time, but we're optimistic. And you know, I mean, for us, a $100 million-ish market in Europe is fairly big to a lot of companies that's just a niche market.
And this is, um, a pretty important point, you know, alegrarse unlike the rest of our business are a supply constrained, um, product. Um, you know, in general, if we could get our hands on more alegras, we could sell more. And so, um, I will give kudos to our team and the Chicago area who does the processing. We have been able to start an inventory build, um, in Chicago for Europe, but I, you know, I, I personally think that will be somewhat of a rate limiter over time. And we've got to figure out a way to satisfy all the demand in Europe over time, but in the near term, we're very excited about Ireland or Germany. Um, and then, you know, as we turn on Canada and the UK, we met, uh, with a lot of success, and we don't really have a reason to believe that we won't in the markets, where we first gain approval. So, kind of 1 step at a time, but we're optimistic. And, you know, I mean, for us, uh, 100 million
Michael Petusky: Thank you.
Ish Market in Europe is fairly big up to a lot of companies that it's just a niche market.
Operator: Thank you. Our next question comes from Daniel Stotter of Citizens JMP. Your line is now open.
Thank you.
Thank you.
Michael Petusky: Yeah, great. Thank you for the questions. This first one on free cash flow is really strong this quarter. I think you called out a record in cash from operations. Just in terms of free cash flow for the rest of 2025, how should we think about this in the back half of the year? With that in mind, you know, how should we think about CapEx, working capital, specifically inventory as we consider some of the regulatory approvals and geographical expansions that are coming the rest of the year? Thanks.
Our next question comes from Daniel sodder of citizens. JMT, your line is now open.
Yeah, great. Thank you for the questions.
Uh, just first 1 on free cash flow.
George LeMaitre: Yeah, Dorian Dan, thanks for the question. Yeah, as you mentioned, 20.3 million in cash from operations, a record for us. I think it's probably best to add the quarters together and think about them as the first half of the year where we're at, you know, 29.4 million. And we do have some benefits from working capital, and that can be a little, it can have some variability to it. But if you kind of look at our cash from operations and compare it to our operating income, you know, we're pretty much in sync. You know, we're not a phony baloney earnings company. You know, earnings create cash here, and that's what you're seeing. Although there's some lumpiness from period to period, I think over the long haul, you can expect those to track with each other.
Uh, is really strong this quarter. I think you called out a record in cash from operations, just in terms of free cash flow for the rest of 2025. How should we think about this in the back half of the year uh with that in mind? You know, how should we think about capex working capital? Specifically inventories, we consider some of the regulatory approvals in D geographical expansions that are that are coming the rest of the year. Thanks.
Yeah. Uh, Dorian and Dan, thanks for the question. Um as as you mentioned, 20.3 million in cash from operations, a record for us. I I think it's probably best to to, you know, add the the quarters together and think about them as the first half of the Year where we're at, you know, 20 29.4 million.
And we, we do have some benefits from working capital, uh, and that can be a little, um, it can have some variability to it.
George LeMaitre: On CapEx, you know, we've had 1.3-ish million of CapEx the last two quarters. Don't expect that to change materially. We have some build-out going on here and just some maintenance CapEx, but nothing material that's going to change to the back half of the year.
But if, if you kind of look at our cash from operations and compare it to our operating income, you know, we're pretty much in sync, you know, we're not a phony baloney earnings company, you know, earnings earnings, create cashier. Uh, and and that's what you're seeing. Although there's some lumpiness from period to period, I think over the Long Haul, uh, you can expect those to track with each other on capex. You know, we've had 1.3 ish million of capex, for the last 2 quarters.
Don't expect that to change materially. We have some um, buildout going on here and just some maintenance capex. Uh, but nothing material. That's going to change to the back half of the year.
Dave Roberts: Great. Thanks for that. And then just one follow-up on R&D. I know it's a small number, but that's set down a bit. So just wanted to ask how we should think about that in the back half of the year as we consider the different contributors to overall OpEx for the rest of '25. Thanks.
George LeMaitre: Right. And this is George. And Dorian mentioned this before, but there is what we're terming a peace dividend around here in terms of we just got done with the MDRs, and so it's light around here. Certainly, there's going to be other stuff that's popping up that's going to be a 6% spend on R&D is quite low for us. I think we feel more comfortable. All the charts on the wall say sort of 8s and 9s and 10s for us. So it probably needs to go up at some point, but for now, that's where we're at. And obviously, we're not just going to go out and spend it to spend it. It's helping us a little bit on the op margin side right now.
Great. Thanks for that. And then just 1, follow-up on, uh, R&D. I know it's a small number but that sets down a bit. So just wanted to ask how we should think about, then the back half of the year as we consider the different contributors to overall Opex for for the rest of 25. Thanks.
Here in terms of we just got done with the mdrs. And so it's light around here certainly, there's going to be other stuff that's popping up. That's going to be a 6%. Spend on R&D is quite low for us. I think we feel more comfortable. All the charts on the wall, say, sort of 8, to 9 and 10 for us. So it probably needs to go up at some point. But for now, that's where we're at. And obviously, we're not just going to go out and spend it to spend it. It's, it's helping us a little bit on the op margin on the op margin side right now.
Michael Petusky: Great. Thank you for the questions.
George LeMaitre: Thanks, Dan.
Alright, thank you for the questions.
Operator: Thank you. Our next question comes from Ralph Osborne of Cantor Fitzgerald. Your line is now open.
Thanks, Dan.
Brett Fishbin: Hey, guys. Congrats on the strong quarter, and thanks for taking our questions. Starting off with restore flow, what has feedback been with the cardiac call point, and what can you do to help facilitate adoption within this group?
Thank you. Our next question comes from Ross Osborne of Cantor Fitzgerald. Your line is now open
Hey guys, congrats on the strong quarter and thanks for taking our questions.
George LeMaitre: Do you mind repeating that question one more time?
Starting off with restore flow. What is feedback? Then with a cardiac call point, and what can you do to help facilitate adoption within this group?
Brett Fishbin: Yeah, it's just regarding the cardiac call point, you know, how has feedback trended, and what can you do to help facilitate adoption within this group?
Do you mind repeating that question one more time?
Dave Roberts: So I would say that the feedback has been fantastic. I mean, obviously, Ralph, it's Dave. Obviously, you heard that 61% unit growth figure in cardiac allografts, which, you know, that's a pretty large number for us. We're really happy to be seeing that growth. I will say what's different with cardiac allografts this quarter is we're starting to see some traction in the United States. So, you know, for us, the story of cardiac allografts has been adoption in the UK and Canada, with the US lagging behind. But, you know, with the increasing adoption and popularity of the ROS procedure, and frankly, just a greater focus of our US reps on allografts and a little bit on cardiac, we're seeing a nice uptake with that. And we do find that our vascular reps, because they're very familiar with allografts, are able to support the cardiac cases.
Yeah, it's just regarding the cardiac call point. You know, how is feedback turned in and what can you do? To help facilitate adoption within this group?
Um, so I would say that the feedback has been fantastic. I mean, obviously Ross is Dave obviously um you heard that 61% unit growth figure um in uh in in cardiac allografts. Um which you know that's it's a pretty large number for us. We're um really happy to
Be to be, um, seen that growth? I I will say what's different with, uh, cardiac allografts. Uh, this quarter is, we're starting to see some traction, um, in the United States. So, you know, for us the story of cardiac alegras has been, um, adoption in the UK and Canada with the US lagging behind. But, you know, with the increasing um, adoption and popularity of the Ross procedure. Um, and frankly, just a greater focus of um, our us reps, um, on elagse and a little bit on cardiac, um, we're seeing a nice uptake with that and we do find that our vascular reps um, because they're very familiar with elagse. Um, are able to support the cardiac cases.
Brett Fishbin: Okay, great. And then when thinking about the restore flow initial launch in either Ireland or Germany, you know, outside of the supply headwinds, are there any other large hurdles that you guys are going to have to overcome that may be unique to those geographies relative to the US?
Great.
The restore flow, um, initial launch in either Ireland or Germany.
George LeMaitre: This is George. On the positive side, you have sales forces that are really excited to see this product in Germany and Ireland because they've heard so much from their British colleagues as well as the American. So on the plus side of that, there is one detail about Germany, which the German regulators want to see paperwork from every single recovery center where we get these cadaveric pieces. And so there's another sort of layer of rate limiting there by the German authorities. We do, so they want to see all the paperwork that normally the British, the Irish, the Canadians have decided we don't need to see that paperwork, but the Germans do. And of course, Germany is going to be a lot bigger than Ireland. So you got that. But we'll work through it.
You know, outside of the supply headwinds, are there any other large hurdles you guys are going to have to overcome that may be unique to those geographies relative to the U.S.?
Um, this is George. On the positive side, you have sales forces that are really excited to see this product in Germany and Ireland because they've heard so much from their British, uh, colleagues, as well as the American and the plus side of that. There is 1 detail about Germany, which they the German regulators.
George LeMaitre: You know, that's what we do here, and we have folks that do that for us all the time. So we'll work through it, but that's another, you know, potential small stumbling block. But almost certainly, we'll get through that.
Brett Fishbin: Got it. Congrats again on the quarter.
I want to see paperwork from every single um Recovery Center where we get these cada Eric uh pieces. And so there's there's another sort of layer of rate limiting their by the German authorities. We do. So they they want to see all the paperwork that normally the British, the Irish Canadians have decided, we don't need to see that paperwork, but the Germans do and of course Germany's going to be a lot bigger than than Ireland. So you got that, but we'll work through it. You know, that's what we do here and we have we have folks that do that for us all the time, so we'll work through it. But that's another, you know, potential small, stumbling block. But I almost certainly will get through that.
George LeMaitre: Thanks a lot, Ralph.
Got it. Congrats again on the corner.
Operator: Thank you. Our next question comes from Frank Tacanen of Lake Street Capital Markets. Your line is now open.
Thanks a lot.
Michael Petusky: I'm checking the questions. I was going to swing back to restore flow cardiac. I'm just curious if that has anything to do with, I think there was a competitive dynamic where one of your competitors had a little bit more supply-constrained operating status in recent quarters. Does that have anything to do with the unit growth you saw? And if that is the case, do you see that impacting unit growth going forward if their supply improves?
Thank you. Our next question comes from Frank to Canaan of Lake Street. Capital markets. Your line is now open.
George LeMaitre: Frank, it's George again. Thanks for the good question. It's a great question, actually. To be quite honest, we really didn't know about that while it was going on. You're obviously referring to Artivion. There's only three players in this market, and Artivion is one of them. We didn't know about that when it was really live and happening, and we found out about it in retrospect. If the phenomenon had been limited to, hey, in Q1, we sold a lot of stuff, I might say.Yeah,
All right, thanks for taking the questions. I was going to swing back to restore flow cardiac. I'm just curious. If that has anything to do with, I think there was a, a competitive dynamic or 1 of your competitors, had a, a little bit more Supply, constrained. Um, operating, um, status in recent quarters is that have anything to do with the, the unit growth you saw. And if that is the case, do you see that impacting unit growth going forward? If their supply, uh, improves
Operator: it probably had something to do with that. But I think you can see our numbers for the last several quarters. RFA keeps going very, very well, particularly cardiac. So I don't really think it's that. Although it's illogical to say when a competitor leaves a market, something doesn't happen. So we didn't know about it while it was going on. But our results have been durable for the last several quarters. So I don't think it's that. But you bring up a good point. Remember, they're not participating to much extent in Canada, and they're not participating at all in the UK, which is where lots of this growth comes from. So at least on those two markets. And then you've heard Dave here call out that the big surprise for us now is in the US recently. That might tie to it a little bit.
So I don't really think it's that, although it's illogical to say, when a competitor leaves a market, something doesn't happen. Uh, so we did we didn't know about it while it was going on. Um, but you know, our results have been durable for the last several quarters, so I don't think it's that, but you bring up a good point.
Operator: But the big surprise recently is in Q2. The American market seems to have opened up for us. But we think that's for a different reason, which is our sales manager ran the Canadian business, and he did a great job running the Canadian business. And now he's taking his game plan and putting it on the US business. So we think that's the reason for the great work in the US.
Dorian LeBlanc: Helpful. Thank you. And then maybe just on the sales force, obviously you had a big bolus of hiring in Q1. My assumption is a lot of those folks were probably ramping up throughout Q2. And maybe the fruit to bear with them is still coming. Or did they have a material impact on kind of the strong Q2 results as well?
No, but they're not participating to to much extent in Canada and they're not participating at all. In the UK, which is a lot to this growth comes from. So at least on those 2 markets and then you've heard Dave here call out that the big surprise for us now is in the US recently. Oh, that might that might tie to it a little bit. But the big surprise recently is in Q2, the American Market seems to have opened up for us. But we think that's for a different reason which is our our sales manager, ran the Canadian business and he did a great job running the Canadian business and now he's taking his game plan and putting it on the US business. So we think that's the reason for the, for the great work in the US.
Operator: Right. I never know how to answer this question because all of our charts say they impact immediately, and it's really counterintuitive. It makes a lot more sense that it takes someone three or six or nine months to figure out how to do their job well. But our charts all say you hire people, and it starts happening. So I'm going to give you both answers and say, you know I've been doing this for a long time. I still can't figure it out.
Helpful, thank you. And then maybe just on the on the sales force. Obviously, you had a big bowl of some hiring and in q1. My assumption is a lot of those were folks were probably ramping up um, throughout Q2 and and maybe the the the fruit to bear with them is, is still coming, or did they have a material impact on, kind of the, the strong Q2 results as well.
Right. I always, I never know how to answer this question, because all of our charts, say they impact immediately and it's really counterintuitive, it makes a lot more sense that it takes someone 3 or 6 or 9 months, to figure out how to do their job. Well, but our charts all say you hire people and it starts happening. So,
Dorian LeBlanc: Fair enough. Appreciate the color. Thanks.
I'm going to give you both answers and say, I I, you know, I've been doing this for a long time. I still can't figure it out.
Fair enough. I appreciate the color. Thanks.
George LeMaitre: Thank you. Our next call comes from Jason Witties of Ross. Your line is now open.
Yep.
Thank you.
Michael Petusky: Hi. Thanks for the questions. Maybe just a couple of follow-ups here. One, you mentioned the R&D was light this quarter. But I think is the implication that it remains light for the rest of the year? And related to that, in terms of sort of new product introductions and regulatory approvals, I know we're waiting on the UK and Germany. Is there anything else that we should have on our radar to be aware of?
Our next call comes from Jason whitties of Ross. Your line is now open.
Hi, thanks for the questions. Maybe just a couple follow-ups here 1. Um, you mentioned the R&D with life this quarter but I think the is implication that it remains light for the rest of the year.
Operator: Sure. And Jason, how are you doing? Maybe answer the back of the question. You're saying we're waiting on Ireland and Germany. I think that's what you meant to say.
Um and related to that, in terms of sort of new products uh introductions of regulatory approvals. I know we're waiting on the UK and Germany, is there anything else that we should be have on our radar? Uh, to be aware of
Michael Petusky: Yeah, my apologies. That's correct.
Operator: No problem. And in my script, I would say we're also waiting on Chinese Zenosure peripheral. That's a biggie. And that we're making the final filing in Q4 here. And then we hope in '26 to get an approval for that. So I'd say those are a couple of the biggies. And then also somewhere in the script there, I think, is we're waiting on Artigraft in Singapore, Korea, and Canada. Canada being the very big one there, and Korea is sort of big, and then Singapore is not that big for us. So I think you do have a nice regulatory pipeline in front of you. And we can all see the nice results of Artigraft in Europe and South Africa. You can hear that too. But way back at the beginning of your question, you were asking for, hey, is the R&D maybe my answer wasn't that clear.
Sure, and Jason, how are you doing? Uh, maybe I answered the back of the question. You're saying we're waiting on Ireland and Germany; I think that's what you meant to say. Yeah, my father also, that's correct, no problem. And my script, I would say, we're all still waiting on Chinese Xenos, uh, peripheral. That's a biggie, and we're making the final filing in Q4 here, and then we hope in '26 to get an approval for that. So I say those are a couple of the biggies, and then also in somewhere in the script there, I think.
Operator: I would say, gosh, as the year goes on, I'd hate to give guidance on inside of where the expenses are. I think implicitly you're seeing an op expense guidance, and it's going down a little bit in H2, as Dorian has detailed, versus H1. But where it comes, whether it's in GNA, whether it's in sales and marketing or R&D, I don't think we should probably guide on that or detail that, if that's OK.
Michael Petusky: OK, that's fair. I appreciate it. I will jump back in queue. Thanks, George.
It is, we're waiting on artograph in Singapore, Korea and Canada Canada. Being the, the very big 1 there in Korea, sort of big and then, Singapore, not that big for us. So I think you've got to you do have a nice regulatory pipeline in front of you, um, and we can all see the the the nice results of artograph in Europe and South Africa. You you can hear that too. But way back at the beginning of your question, you were asking for. Hey is the is the R&D. Maybe my answer wasn't that clear? I would say, gosh, as the year goes on. I, I'd hate to give guidance on inside of where the expenses are. I think, implicitly you're seeing an OP expense guidance and it's going down a little bit in H2. As Dorian is detailed versus H1, but where it comes, whether it's in GNA, whether it's in SG, in sales and marketing or R&D. I don't think we, we should probably guide on that or detail that if that's okay.
Operator: Thanks a lot, Jason. Good to hear your voice.
Okay, that's fair. I appreciate it. I will jump back into, uh, thanks, George. Thanks a lot. Jason, good to hear your voice.
George LeMaitre: Ladies and gentlemen, that concludes today's conference. I would like to thank you for your participation. You may now disconnect. Have a great day.
Ladies and gentlemen, that concludes today's conference. I would like to thank you for your participation.
You may now disconnect have a great day.