LMAT

Let’s dig into the relative performance of LeMaitre (NASDAQ:LMAT) and its peers as we unravel the now-completed Q2 surgical equipment & consumables - specialty earnings season. The surgical equipment and consumables industry provides tools, devices, and disposable products essential for surgeries and medical procedures. These companies therefore benefit from relatively consistent demand, driven by the ongoing need for medical interventions, recurring revenue from consumables, and long-term contracts with hospitals and healthcare providers. However, the high costs of R&D and regulatory compliance, coupled with intense competition and pricing pressures from cost-conscious customers, can constrain profitability. Over the next few years, tailwinds include aging populations, which tend to need surgical interventions at higher rates. The increasing integration of AI and robotics into surgical procedures could also create opportunities for differentiation and innovation. However, the industry faces headwinds including potential supply chain vulnerabilities, evolving regulatory requirements, and more widespread efforts to make healthcare less costly. The 4 surgical equipment & consumables - specialty stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was 1.6% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8% since the latest earnings results. Founded in 1983 and named after a pioneering vascular surgeon, LeMaitre Vascular (NASDAQGM:LMAT) develops and manufactures specialized medical devices used by vascular surgeons to treat peripheral vascular disease and other circulatory conditions. LeMaitre reported revenues of $70.38 million, up 9.6% year on year. This print fell short of analysts’ expectations by 1.7%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EPS estimates. Chairman/CEO George LeMaitre said, “Our focus on the Artegraft international launch paid off in Q2. The product is now approved in 56 countries, accounting for 21% of sales. So our largest product is now our fastest-growing product. To underpin the Artegraft launch and pave the way for RFA, we continue to build our sales force, go direct in new countries and we’re now undertaking six international warehouse expansions. $376m of cash provides strategic optionality.” LeMaitre delivered the weakest performance against analyst estimates, weakest guidance update, and weakest full-year guidance update among its peers. The market seems disappointed with the results as the stock is down 21.8% since reporting and currently trades at $82.68. Read our full report on LeMaitre here, it’s free. With a portfolio spanning from vascular access catheters to minimally invasive surgical tools, Teleflex (NYSE:TFX) designs, manufactures, and supplies single-use medical devices used in critical care and surgical procedures across hospitals worldwide. Teleflex reported revenues of $570.3 million, up 28.9% year on year, outperforming analysts’ expectations by 2%. The business had an exceptional quarter with a beat of analysts’ EPS and full-year EPS guidance estimates. Teleflex pulled off the fastest revenue growth of the whole group. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $137.00. Is now the time to buy Teleflex? Access our full analysis of the earnings results here, it’s free. Founded in 1989 as a pioneer in regenerative medicine technology, Integra LifeSciences (NASDAQ:IART) develops and manufactures medical technologies for neurosurgery, wound care, and surgical reconstruction, including regenerative tissue products and surgical instruments. Integra LifeSciences reported revenues of $418.8 million, flat year on year, in line with analysts’ expectations. Still, it was a satisfactory quarter as it posted a beat of analysts’ EPS estimates. Integra LifeSciences delivered the slowest revenue growth in the group. As expected, the stock is down 9.8% since the results and currently trades at $17.82. Read our full analysis of Integra LifeSciences’s results here. Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ:ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties. Intuitive Surgical reported revenues of $2.89 billion, up 18.5% year on year. This print surpassed analysts’ expectations by 2.6%. It was a very strong quarter as it also logged a beat of analysts’ EPS estimates. Intuitive Surgical achieved the biggest analyst estimate beat of the whole group. The stock is flat since reporting and currently trades at $400.75. Read our full, actionable report on Intuitive Surgical here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

LeMaitre’s second quarter was marked by strong organic revenue gains, led by robust growth in its Artegraft line and continued expansion across Europe and Asia. However, the quarter fell short of Wall Street’s revenue and profit expectations, which contributed to a negative market reaction. Management attributed the underperformance to a combination of adverse currency impacts, ongoing Middle East export delays, and supply constraints in cardiac allografts. CEO George LeMaitre highlighted that, despite these headwinds, the company saw record sales in key segments and continued to invest in international expansion. Is now the time to buy LMAT? Find out in our full research report (it’s free). Revenue: $70.38 million vs analyst estimates of $71.61 million (9.6% year-on-year growth, 1.7% miss) EPS (GAAP): $0.70 vs analyst expectations of $0.81 (13.8% miss) Adjusted EBITDA: $24.37 million vs analyst estimates of $24.2 million (34.6% margin, 0.7% beat) The company dropped its revenue guidance for the full year to $276.3 million at the midpoint from $280 million, a 1.3% decrease EPS (GAAP) guidance for the full year is $2.89 at the midpoint, missing analyst estimates by 3.7% Operating Margin: 29%, up from 25.1% in the same quarter last year Organic Revenue rose 10% year on year (miss) Market Capitalization: $1.86 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Michael Sarcone (Jefferies) asked about the timeline and resource allocation for the Quick Stick clinical trial. CEO George LeMaitre replied the company is still evaluating next steps, noting, “We’re not really a clinical trial company historically, but we have aspirations to get a little bit more R&D focused.” Brett Fishbin (KeyBanc) questioned softness in the Americas, particularly with catheter sales. CEO LeMaitre explained the decline was due to last year’s recall-driven overstocking and described the impact as “transient.” Anna Ponsi (Stifel) inquired about Artegraft’s tender process in Europe and its impact on the outlook. CEO LeMaitre said recent quarters have seen expansion beyond Central Europe, with strong performance in Southern European and U.K. tender markets. Daniel Stauder (Citizens) probed the dynamics behind lower operating income guidance despite stable margins. CFO Dorian LeBlanc attributed it to FX headwinds, Middle East export delays, and slower cardiac allograft growth—all flowing through to the bottom line. James Sidoti (Sidoti & Co.) asked about strategies to address allograft supply shortages. CEO LeMaitre pointed to relocating tissue processing and potentially expanding recovery group partnerships as key steps. Looking forward, key upcoming catalysts include (1) the success of Artegraft expansion in new and existing international markets, (2) progress on resolving cardiac allograft supply constraints via operational changes and partnerships, and (3) the impact of warehouse relocalization on margin improvement and customer satisfaction. Updates on regulatory approvals and new product development timelines will also be important for tracking execution. LeMaitre currently trades at $81.25, down from $105.78 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 5:00 p.m. ET Chief Financial Officer - Dorian LeBlanc Chief Executive Officer - George LeMaitre President - Dave Roberts Operator: Welcome to LeMaitre Vascular Quarter 2 2026 Financial Results Conference Call. As a reminder, today's call is being recorded. At this time, I would like to turn the call over to Mr. Dorian LeBlanc, Chief Financial Officer of LeMaitre Vascular. Please go ahead, sir. Dorian LeBlanc: Good afternoon, and thank you for joining us for our Q2 2026 conference call. With me on today's call is our CEO, George LeMaitre; and our President, Dave Roberts. Before we begin, I'll read our safe harbor statement. Today, we will make some forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, the accuracy of which is subject to risks and uncertainties. Wherever possible, we will try to identify those forward-looking statements by using words such as believe, expect, anticipate, pursue, forecast, might and similar expressions. Our forward-looking statements are based on our estimates and assumptions as of today, August 4, 2026, and should not be relied upon as representing our estimates or views on any subsequent date. Please refer to the cautionary statement regarding forward-looking information and the risk factors in our most recent 10-K and subsequent SEC filings, including disclosure of the factors that could cause results to differ materially from those expressed or implied. During this call, we will discuss non-GAAP financial measures such as organic sales growth. A reconciliation of GAAP to non-GAAP measures discussed in this call is contained in the associated press release and is available in the Investor Relations section of our website, www.lemaitre.com. I'll now turn the call over to George LeMaitre. George LeMaitre: Thanks, Dorian. Artegraft grew 34% in Q2, accounting for 21% of sales. Grafts, up 23%, shunts up 18% and patches up 4%, each posted records as did EMEA, up 18%, APAC, up 18% and the Americas up 5%. Sales grew 10% organically in Q2, 7% from price and 3% from units. Catheters were down 11% in Q2 due to recall-driven overstocking in the year earlier quarter. Excluding catheters, Q2 2026 organic growth was 12%, 7% from price and 5% from units. Notably, we underperformed our Q2 2026 sales guidance by $1.1 million for 3 reasons, each with roughly the same impact in the quarter. The strengthening of the dollar after we gave guidance on May 5, the impact of the Middle East war continues to delay export revenues and cardiac allografts sales have been hampered by supply. Our guidance reflects these 3 items continuing to hamper sales in H2. Turning to the positive. Artegraft has become our fastest and largest product, and we're investing in the product in several ways. Number one, more international approvals; number two, longer sizes for leg bypasses, particularly for Europe; and finally, number three, building out our sales force and our commercial infrastructure. International Artegraft sales advanced sequentially from $2.1 million in Q1 to $2.8 million in Q2, and we now expect sales of $11 million in 2026 versus $4 million in 2025. Artegraft approvals were received in Vietnam, Morocco and Turkey in Q2, and we're now approved in 56 countries. We also expect 3 large approvals in 2027, Korea, Brazil and India. In July, we met face-to-face with Japan's PMDA and the initial response was positive. We might receive approval for the AV indication by 2029/2030 without a clinical trial. Canada approved Artegraft last year and the launch is set to occur this September. We're also working to make longer Artegraft available. Because European surgeons use Artegraft for leg bypasses, our longest Artegraft, which is 50 centimeters, is now in high demand, but the Artegraft packaging tube is just 53 centimeters long. So we plan to make approval filings for longer tubes in the U.S. and Europe in Q4 2026. For sales of these longer bovine grafts could start in H2 2027. Here's an update on the Quick Stick project. We made a pre-submission filing to the FDA for this indication. Unfortunately, we now believe that a clinical trial is likely. If we like to follow this path, the time line would be measured in years, not quarters. As a follow-up to the 2025 warning letter, the FDA reaudited our New Jersey facility in June 2026. At this audit, we believe that we adequately addressed 3/4 of their 2025 observations. On June 25, the FDA provided us an additional set of quality systems observations. As per standard practice, we responded on July 16. The observations from these audits have not disrupted our ability to produce, ship or invoice. As for RFA, allograft revenues grew 17% in Q2. We now distribute these cadaver tissues in 4 countries: the U.S., Canada, the U.K. and Germany. German surgeons have recently performed 3 implants. Our German sales force reports high levels of interest from German surgeons due to the quality and availability of our tissues. In Ireland, we have just responded to our first set of questions from the Irish Tissue Authority, and we await an inspection of our Dublin facility. Current expectations are for an Irish approval in H1 2027. Long-term, the Dublin facility is expected to be used for Irish as well as pan-European RFA distribution. And here's the time line for when we expect to begin distributing tissues in several other countries. H1 2027, Austria, Holland and Spain. H2 2027, Australia and Switzerland. As always, we continue to hire sales reps and build out our commercial infrastructure. We ended Q2 with 163 sales reps, and we still plan to end the year with 170 to 180 reps. Nine reps have signed and are set to start in Q3 and 13 requisitions are currently open. In July, we signed a Polish go-direct term sheet and expect to sell direct to hospital from a Warsaw warehouse this December. In addition to Dublin and Warsaw, we have 5 other warehouse projects underway. Our primary warehouse has tripled and moved to Billerica, Massachusetts. Madrid has doubled and now ships all products. Paris is doubling in Q3 and will ship all products. Toronto is moving and tripling in Q3. And finally, Hereford, U.K. is moving to the London area in Q4. In total, about 7 new or larger warehouses opening in 2026/2027. We believe these infrastructure projects will help make a tighter connection between LeMaitre and its worldwide hospital customers. Higher ASPs, geographic expansion and disciplined spending produced 10% sales growth and 23% EPS growth in Q2 2026. Our 29% op margin in Q2 as well as our 17% ROE underscores the strength and profitability of our business. Full year guidance implies 11% organic sales growth and 21% EPS growth. I'll now turn the call over to Dorian. Dorian LeBlanc: Thanks, George. LeMaitre's Q2 organic revenue growth of 10%, consisting of 7% price growth and 3% unit growth was impacted by the Q2 2025 stocking orders following our package-relating catheter recall. As George noted, excluding catheters, organic growth across the remaining portfolio was 12%, consisting of 7% price and 5% unit growth. The 5% unit growth was highlighted by the strong unit growth of Artegraft and Cardiac RestoreFlow. In Q2 2026, gross margin was 72.1%. The 210 basis point increase year-over-year was driven primarily by higher ASPs, reduced shipping costs and positive product mix, supported in particular by growing high-margin Artegraft sales. We remain on track to transfer tissue processing from our Fox River Grove facility in Illinois to our Burlington, Massachusetts headquarters before the end of the year, and we have already yielded tissue in Burlington. In addition, we began shipping our core devices in June from our new 34,000 square foot high bay warehouse in Billerica to U.S. domestic customers in our international subsidiaries and distributors. Operating expenses in Q2 2026 were $30.4 million, an increase of 5% versus Q2 2025, resulting from continued hiring restraint as full-time employees increased marginally from 658 at June 30, 2025, to 660 at June 30, 2026. We do anticipate continued 2026 investment in expanding our global sales force, including the new sales reps joining in Q3. Q2 operating income was a record $20.4 million, up 26% and resulting in an operating margin for the quarter of 29%. Net income increased 24% year-over-year to $17.1 million and fully diluted EPS was $0.74, up 23%. Our fully diluted EPS calculation for Q2 2026 triggered the if-converted accounting for our convertible debt, increasing the fully diluted share count to 24.5 million for the basis of this calculation. We ended Q2 2026 with $376 million in cash and securities, an increase of $9 million in the quarter. Cash from operations generated $16 million in Q2. We incurred $2.3 million in capital expenditures and paid $5.7 million in dividends to shareholders. We have updated our full year revenue guidance to $276.3 million and 11% reported revenue growth. Expected reported revenue has declined as we updated our FX assumptions for the strengthening U.S. dollar since our February and May guidance. In addition, we have reduced full year organic revenue growth from 12% to 11% to reflect our Q2 results and the revenue impact related to our export business and slowing growth for RFA, largely due to anticipated supply constraints. We anticipate full year gross margin of 72.4%, a 200 basis point improvement from adjusted 2025, full year operating income of $76.8 million, resulting in a 28% operating margin for 2026 and an op inc increase of 19% from adjusted 2025. We have also updated our guidance of fully diluted earnings per share to $2.89, up 21% from adjusted 2025. Our guidance implies a fourth consecutive year of strong double-digit revenue growth and 20% plus EPS growth. We'll now take questions. Operator: [Operator Instructions] Our first question comes from the line of Michael Sarcone with Jefferies. Michael Sarcone: I guess, George, just to start, you gave us the update on the Quick Stick claim, and we've got this time line measured in years now. And I guess, can you give us a little more color on how you're thinking about allocating resources to that effort? And just any updated thoughts on what you're going to do there? George LeMaitre: Sure. We definitely see that as a nice piece of the market, Mike. And by the way, thanks for your question. I appreciate it. I think the news is fresh enough here that we just need to sit back and decide what to do next here. We're not really a clinical trial company historically, but we do have these aspirations to get a little bit more R&D focused. So I think it will take us a little time to figure that out. But we do acknowledge it's an important piece of the market, particularly in the U.S. Michael Sarcone: Got it. And then just on the RFA supply constraints, I guess, how are you thinking about next steps here? And maybe any time lines for when you could see some relief on those constraints? George LeMaitre: Sure. As you can imagine, we're running around like crazy trying to solve this. I think when you're dealing in cadaver tissues, there are always threats of supply around you. So there's a set of 4 or 5 to-dos that we're not going to bore you with today that we're in the middle of trying to do. If you want to think of this positively, when we first took over this company in 2016 for the first 5 years, we had tremendous difficulty having enough supply of the peripheral vascular tissues, the veins and the femoral artery and such. And we've definitely solved that. We feel really good about that. And now this is sort of the next frontier. And then I always say this to the sales force, which is 95% of your products are good to go here. We have ample supply, and they always talk about the one that doesn't. So we want to get rid of it because it's tiring to sit there and listen to it from the sales force as much as we want the sales to come out. Dorian LeBlanc: Mike, this is Dorian. And maybe just to add on that. Cardiac allografts were up 39% quarter-on-quarter. So we're talking about a business that's performing very, very well, just maybe the growth rate is slowing a bit from where we anticipated. And one of the big things, of course, that we're doing on supply is to move that processing here to Burlington, Massachusetts, where we're all closer to it. So I think those are 2 important things to kind of wrap up the question. Operator: Our next question comes from Brett Fishbin with KeyBanc. Brett Fishbin: Just had a quick one first on 2Q. The geographical performance versus our model at least looked pretty good in Europe and in Asia. And Americas was a little bit softer than expected. I was hoping you could just touch on kind of what you're seeing in the Americas region, just given some of the mixed reads on procedural growth this quarter domestically or if that was mostly driven by the catheter issue. George LeMaitre: I would say we should start with the catheter issue, which is if you -- first of all, if you X-out the Aziyo issue, and we've all forgotten about that, but we used to distribute Aziyo way back when that was in Q2 of '25. You get it to a 6% organic number for the Americas. And then if you strip out the catheter topic, again, you can go strip out stuff, right? But if you strip that out, that's a real thing. You get it to 8% organic in the Americas. And it's probably feeling more normal to us that's our business. Your second part of your question, Brett, was about the procedure volume. And I think we tend not to lean on that in these phone calls about procedure volume. And one specific reason we might not lean on it is we -- the stuff we're reading a lot of the newspapers about the Affordable Care Act and all that, it's a little bit more -- it's not really our customer. Our customers are 70-year-old men and women, and they're not Medicaid patients and things like that. So we don't want to lean too hard on that. I think the internal issues, but again, if you X-out those 2 issues, you can get yourself to 8% organic growth for the quarter. Brett Fishbin: Right. Great. And then just one follow-up for me. I think you talked a lot more today in the press release and prepared remarks about some of these warehouse expansions and the magnitude and number of them. Maybe if you could just elaborate a little bit more at a high level on this like overall initiative, and if there's any long-term read into either margin expansion upside or working capital? George LeMaitre: Right. Okay. Thanks for giving me the platform to talk about this. This is sort of one of my really serious initiatives inside the company called relocalization. And historically, we tried to address Europe just from Frankfurt because we're all excited about the EU and the Schengen zone and the euro as common currency. And I would say myself and our team, we've sort of debunked that over 20 years. In the last 5 years, we've gotten much more serious about a Spanish hospital wants to talk to a Spanish customer service rep located in Madrid with the product sitting right next to him or her and get it shipped directly for so many reasons. That's the hypothesis of relocalization. And you can kind of see we've gone a bit hog wild with it, right? We're going to have -- when Warsaw opens up, we're going to have 7 offices in Europe, I believe, and maybe 15 years ago, it was just in Frankfurt. So we've really gone down this path. There's the outside reasoning or the larger rationale for it. What we're also finding, which we didn't expect to find is shipping a package from Frankfurt cost $55 to the Madrid hospital and shipping a package from Madrid to the Madrid hospital costs $5. And so there's this huge shipping savings to go with Artegraft being so much bigger in Europe, just to press forward on the point here. There's an explosion of gross margin going on over in Europe. And I've never seen this in my career, but it's 6 points, 5 points, 9 points year-over-year, full points, not bps. And it's been really satisfying to see even though we spent the money on these places, the gross margin is exploding over there for a number of reasons. And I would say the focus of the success of the company in Q2 clearly was Europe, whether it be from a sales perspective or on a growth and profitability perspective. And I think the profitability of that segment was up like 70% or something like that. It's really going nicely over there, and it's sort of intertwined with that relocalization project. Operator: Our next call comes from Rick Wise with Stifel. Anna Ponsi: This is Annie on for Rick. My first one is on Artegraft in Europe. When we spoke with you last, we kind of heard that Artegraft was seeing early success in these European countries with shorter sales cycles, while the more tender-based countries were likely to come in further down the road. So I guess, can you update us on where those tender processes like stand today and whether the updated back half outlook is going to depend on those wins converting before the year-end? George LeMaitre: Okay. And I think when we gave the Q1 call, we were a little bit like, "Well, is it going to be $10 million or what?" We were all talking about it. And we're happy to say Q2 seemed like a little bit better than we all expected over in Europe for Artegraft. So we're thrilled about that. As to your specific question on the tender, on the tender countries, I don't have a real angle on that. I will say that when it first started, let's call it, Q3 and Q4 of 2025, it felt very much like a Central Europe, I'm going to say, Holland, Belgium, Germany, Austria thing. And in the last 3 or 4 quarters, it definitely has spread out. It's become a big topic in France, Italy and Spain and a big topic in the U.K. The tender-driven markets of sort of the Nordics. When you talk about tenders over there and in the Southern European markets, you feel like the Nordics, maybe a little slower and the tender-driven markets of the South part of Europe are doing really well right now, very well. It's helping the business post records every month and every quarter. Anna Ponsi: Great. And maybe just a follow-up on the RFA supply constraints, maybe just generally about the longer-term opportunity outside the U.S. I'm curious if you have any plans to build out tissue processing OUS and what that might entail in terms of the timing, investment and regulatory work there? David Roberts: Annie, it's Dave. It's a great question. It is something we think about on a long-term basis. But I think we still have a long way to go in the U.S. to rationalize and improve our supply of cardiac tissue, especially here. So I think we're focused on that in the near-term. As Dorian mentioned, we're moving the processing from the Chicago area to Burlington. So all the management will be concentrated here, and we are taking a few steps to improve the supply here. Certainly, as we see sales start growing OUS, that topic about supplying outside the United States becomes more relevant. But I don't think it's a near-term project for the company at this point. Operator: Our next question comes from the line of Danny Stauder with Citizens. Daniel Stauder: Just my first one, I want to focus on the guidance. So if we're looking at the guide below the top line, gross margin was in line with the quarter. You raised it a bit for the full year and then full year operating income guide was lowered by a bit more than this quarter's performance versus the quarterly guide. So I guess really my question is just, could you help us with some of those dynamics, maybe it's simple as it's a function of lower sales base or some product mix, but just how should we think about these metrics moving in opposite directions in the back half and how we should think about them in our model? Dorian LeBlanc: Danny, it's Dorian. I think you're right on the decrease in operating income guidance is just directly dropping through from the revenue decline. And really, that's a function of the 3 factors that George walked through in the prepared remarks, which is about 1/3 of the miss for Q2 and 1/3 of the change in guidance is purely related to FX. In our prepared remarks in Q2, I think we gave the euro rate that we were forecasting at $1.17 . Of course, we exited the back half of June at $1.14, which hurt us in the quarter. It's come up a little bit to $1.15. So that's about 1/3 of the miss for Q2 and about 1/3 of the change in guidance for Q3 and Q4. And then we do continue to just have this hangover on our export business from not being able to ship to the Middle East. We had $400,000 of orders ready to go here that just can't go out because of the conflict. We think, again that, that's probably something that's going to recur and our export business overall is going to be down for the year if this doesn't resolve. And then the last 1/3 is really around the -- while we did post a 39% growth rate on Cardiac allografts, that curve -- that growth curve coming down a little bit from our expectation really related to the supply. So those 3 factors kind of explain the Q2, and they are really the drivers of the change in guidance and the flow-through to the bottom line is the impact on op income. George LeMaitre: And Danny, maybe I could pick up the second half of your question, which I think you have in there, which is the bottom line and op expenses. And I think as you compare H2 2026 to H2 2025, we were sort of in belt tightening mode for those Q3 and Q4 of '25. So you're going to see, even though we haven't raised op expenses implicitly too much in this model here, it's going to look like a lot when we start coming around the Q3 and Q4, particularly the sales reps being hired. So that's something you're going to be noticing. The lack of op leverage is going to be driven a little bit by that. It was a tight-fisted company in Q3 and Q4 of last year, a little bit less so this year. We're seeing these projects we definitely want to get involved in. And so we're not sort of slowing down a little bit. Maybe that helps you on the bottom part of the guidance. Daniel Stauder: No, that's great color. I appreciate that. Just one more focusing on the model. So Dorian, I'll ask some of these of you again. But just as I think about EPS guide, are there any other dynamics beyond gross margin and OpEx you already highlighted? I think last quarter, you talked a little bit about tax and it being below your historical rate and some of that being due to the FDIIs. We saw it step up a little bit here in the quarter. So how should we think about that in the back half? And just anything else beyond or below the operating income line that we should think about as we model out here? Dorian LeBlanc: Yes, sure. If you get below op inc, Danny, the put and the take is a little bit better yield on our invested cash. Yield curves come up a little bit. So we're getting a little bit better earnings on that cash balance here in July versus where we were forecasting from May. On the effective tax rate, still getting that benefit from the FDII, but the tax rate is really impacted by the discrete items, particularly around stock-based comp and the timing of option exercises. So fewer of that in Q2. Overall, for the blend of the year, our ETR for our guidance hasn't really changed too much, but you're always going to see some variability. And I think we did caution in the call last quarter not to read into the 20.3 as the long-term rate on the ETR. But yes, probably a little higher than we anticipated in Q2, settling out more normalized throughout the year. Operator: Our next question comes from the line of Jim Sidoti with Sidoti & Co. James Sidoti: So George, you've dealt with shortages for allografts before. What did you do then, and are you going to do something similar now? George LeMaitre: Well, and I would broaden that to, we pride ourselves. Thanks for the question, Jim. Great question. We pride ourselves on being a no backorder company. You've heard that from me a billion times over the years. And we got to that with peripheral vascular, largely through huffing and puffing and sweating and figuring how to do stuff better. I think the big move here is going to be bringing the factory to Burlington, where it's near, Trent, who's the Head of Ops, and Andrew, who's the Head of Regulatory, who's the guy in charge of approving all the stuff going out the door. So I think that's the major move. We have AI in the background here with new program called Donor IQ, and we have put some constraints on because we were nervous about purchasing too much and only using a piece of this, and we've removed those constraints. So there's a number of moves we can pull. I think it will get better. And again, I think Dorian, in his initial response here is pointing out, okay, but we still did grow business 39% in the first -- in the second quarter. So there's still -- the cardiac business, there's still cause for -- well, it's going fast and they're missing that last piece of business by the lack of supply, but it's still a nice business. But yes, we got to get down to work on that and fix that. It's on us. James Sidoti: So it sounds like you have a sufficient number of organ procurement people that you're dealing with to get the product, you just have to get better at processing it? George LeMaitre: I would say it's both. I do think we also consider from time to time bringing on more recovery groups. So there's a limited number of those in the whole country, and we're already dealing with about half of them, but we do consider bringing more of them on from time to time. So that might be an avenue as well. James Sidoti: Okay. And then just a quick one for Dave. Just an update on the pipeline out there with growing acquisitions and what are you seeing? David Roberts: Yes. Jim, thanks for the question. It's a pretty active pipeline right now. Obviously, I don't usually disclose how many deals or the size of deals, but we are busy. In fact, we're adding a fourth member to the biz dev team this coming Monday. So it is pretty busy. The target zone is what we've focused on in the past, the roughly 2 dozen businesses in open vascular that are big enough for us to focus on, or expanding the cardiac surgery where we had about 13% of our Q2 revenue. And the sweet spot, I'd say, is anywhere from $15 million to $150 million of revenue. So pretty active pipeline, building the team and stay tuned. Operator: [Operator Instructions] Our next question comes from the line of Keith Hinton with Freedom Capital Markets. Keith Hinton: So apologies if this has already been addressed. I'm jumping around a little bit. But just in terms of catheters in the quarter, was that just simply a tough year-over-year comp? Or is there any sort of durable change going on there in terms of competitive dynamics? George LeMaitre: Sure, Keith. Thanks for the question. It's George. Yes, it's a big topic here in that in Q2 of 2025, we had a very big recall of a simple product line problem with our packaging on catheters. So we pulled in a lot of product and oddly, which doesn't always happen, the customer then went and did a bunch of hoarding. All of the customers around the world went and did a bunch of hoarding and bought a lot of devices. Therefore, we had a huge catheter sales in Q2 last year. And now coming around the bend here in Q2 of this year, catheter sales were down 11%. So if you strip the catheters out of the company's performance, instead of us showing up here today on this call with a 10% organic growth rate, you'd have a 12% organic growth rate. So it does make a big difference. We called that out in the press release, and we've called it out in this phone call as well. It's an important topic. And we do believe that it's transient and that you won't have that brutal comp again as you go into H2. Keith Hinton: Okay. Great. And again, apologies if I missed this, but did you guys talk at all about the plans for Artegraft Quick Stick in terms of potential trial there, trial design, time line, anything like that? George LeMaitre: We did. And Keith, unfortunately, the news that we got from our FDA meeting, and we did address this in the prepared remarks. Unfortunately, the FDA seems to be leaning. It's not for sure, but they seem to be leaning towards you got to go back and do a clinical trial for that. And so that puts us back at, gosh, should we go forward with this, it's a big investment, it's a X-year time line. So we're still in the thinking it through phase of that project. Operator: Our next question comes from Michael Petusky with Barrington Research. George LeMaitre: Mike, it's George in Burlington. I think you're up if you're still hanging on to the call. Operator, he's usually pretty good about being here. So let's assume something happens here. You can either go on to next questions or wrap up the call whatever you see is the right next move. Operator: Right. So it looks like we have no further questions. And give me one moment. Ladies and gentlemen, that does conclude today's conference. I'd like to thank you for your participation, and you may now disconnect. Have a great day. Before you buy stock in LeMaitre Vascular, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and LeMaitre Vascular wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends LeMaitre Vascular. The Motley Fool has a disclosure policy. LeMaitre Vascular (LMAT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. LeMaitre Vascular (LMAT) has attracted fresh attention after reporting second quarter 2026 results that included higher sales and net income, alongside new earnings guidance and an affirmed quarterly dividend. For the second quarter ended June 30, 2026, LeMaitre Vascular reported sales of US$70.38 million compared with US$64.23 million a year earlier. Net income was US$17.05 million compared with US$13.78 million in the prior year period. Basic earnings per share from continuing operations came in at US$0.75 compared with US$0.61 a year ago. Diluted earnings per share from continuing operations were US$0.74 compared with US$0.60. Over the first six months of 2026, the company reported sales of US$136.93 million compared with US$124.10 million in the same period of 2025. Net income for the six month period was US$32.73 million compared with US$24.79 million a year earlier. Basic earnings per share from continuing operations over the six months were US$1.43 compared with US$1.10 a year ago. Diluted earnings per share from continuing operations were US$1.42 compared with US$1.08. See our latest analysis for LeMaitre Vascular. The recent earnings release and guidance arrived after a period of pressure on LeMaitre Vascular's stock, with the share price down 20.0% over 30 days and 24.5% over 90 days, despite a 3 year total shareholder return of 49.9%. The short term pullback, including a 19.6% 7 day share price decline, contrasts with a 5 year total shareholder return of 54.6%. This may indicate that investors are reassessing growth expectations and risks around the new outlook and dividend policy. If this earnings reaction has you reassessing your watchlist, it could be a useful moment to broaden your search with 42 healthcare AI stocks The question now is whether LeMaitre Vascular's recent share price slide reflects something fundamental in the business or mostly a sharp swing in sentiment. The answer starts with what the current valuation implies. Analysts following LeMaitre Vascular see a fair value of $118.75 per share compared with the latest close at $81.45, which they view as a sizeable valuation gap in their models. Read the complete narrative. Read the complete narrative. To understand why this narrative is used to support a premium valuation for LeMaitre Vascular, analysts focus on compounding revenue, firm margins, and a richer future earnings multiple. The key question is which specific growth and profitability paths have been included in their assumptions, and how these elements connect to that fair value estimate. Result: Fair Value of $118.75 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the LeMaitre Vascular narrative still faces real tests, including reliance on price increases and a concentrated product lineup that could amplify competitive or regulatory shocks. Find out about the key risks to this LeMaitre Vascular narrative. While the analyst fair value narrative points to LeMaitre Vascular as 31.4% undervalued at $118.75 per share, Simply Wall St’s DCF model tells a different story. On that framework, LMAT at $81.45 sits above an estimated future cash flow value of $69.27, which points to an overvalued result instead. The gap between a bullish earnings based fair value and a more cautious cash flow estimate raises a key question: Which set of assumptions around growth, margins, and required return do you trust more for your own work on LMAT? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out LeMaitre Vascular for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. The mix of optimism and concern around LeMaitre Vascular is clear. This is a good time to review the numbers yourself and pressure test the story. To balance that view, make sure you understand both the potential upsides and the key watchpoints by checking the 3 key rewards and 1 important warning sign If LeMaitre Vascular has sharpened your focus, do not stop here. Broaden your watchlist now so you are not relying on a single story. Target steadier growth potential by reviewing stocks screened for strong cash flows and balance sheets through the solid balance sheet and fundamentals stocks screener (49 results). Hunt for mispriced quality by scanning companies flagged as potential bargains using the 49 high quality undervalued stocks. Spot future standouts early by checking the screener containing 19 high quality undiscovered gems before other investors pay closer attention. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LMAT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in LeMaitre Vascular, Inc.? Here are five stocks we like better. Strong quarterly performance: LeMaitre Vascular delivered 10% organic revenue growth, record operating income of $20.4 million and a 24% increase in net income to $17.1 million. Artegraft sales surged 34% and reached 21% of total revenue, supporting a 72.1% gross margin. Headwinds reduced expectations: Foreign-exchange pressure, Middle East export disruptions and cardiac allograft supply constraints caused the company to miss second-quarter sales guidance by $1.1 million and are expected to persist through the second half of 2026. 2026 outlook lowered modestly: Management now forecasts $276.3 million in revenue and 11% organic growth, down from its prior 12% organic-growth target, while projecting $2.89 in diluted EPS. The company continues investing in Artegraft’s international expansion, salesforce growth and distribution infrastructure. LeMaitre Vascular (NASDAQ:LMAT) reported second-quarter 2026 results marked by 10% organic revenue growth, record operating income and continued expansion of its Artegraft product line, while foreign exchange, Middle East export delays and cardiac allograft supply constraints weighed on sales relative to management’s expectations. Chief Executive Officer George LeMaitre said the company fell $1.1 million short of its second-quarter sales guidance. He attributed the gap in roughly equal parts to the strengthening U.S. dollar after guidance was issued in May, export disruptions tied to the Middle East war, and limited supply of cardiac allografts. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Management said those factors are expected to continue affecting sales during the second half of 2026. Organic sales increased 10% in the quarter, including 7% growth from pricing and 3% from unit volume. Excluding catheters, organic growth was 12%, consisting of 7% price growth and 5% unit growth. Catheter sales declined 11% from the prior-year period, reflecting elevated customer stocking orders during the year-earlier quarter following a package-related catheter recall. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? Artegraft sales rose 34% and represented 21% of total sales, according to George LeMaitre. Graft sales grew 23%, shunt sales increased 18%, and patch sales rose 4%, with each category posting records. Regional sales also reached records, with EMEA and Asia-Pacific each up 18% and the Americas up 5%. Chief Financial Officer Dorian LeBlanc said gross margin rose 210 basis points year over year to 72.1%, driven by higher average selling prices, lower shipping costs and favorable product mix, particularly from growing sales of higher-margin Artegraft products. Operating income reached a record $20.4 million, up 26% year over year. Operating margin was 29%. Net income increased 24% to $17.1 million. Fully diluted earnings per share rose 23% to $0.74. Cash and securities totaled $376 million at quarter-end, up $9 million during the quarter. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Operating expenses increased 5% to $34.4 million. LeBlanc said the company maintained hiring restraint during the quarter, with full-time headcount rising only modestly to 660 from 658 a year earlier, though LeMaitre expects to continue investing in its global sales organization. Management identified Artegraft as its fastest-growing and largest product line. International Artegraft sales increased sequentially to $2.8 million in the second quarter from $2.1 million in the first quarter. The company now expects $11 million in Artegraft sales during 2026, compared with $4 million in 2025. The product received approvals in Vietnam, Morocco and Turkey during the quarter, bringing the total number of approved countries to 56. LeMaitre expects to seek or receive major approvals in Korea, Brazil and India in 2027. The company also said it received an initially positive response from Japan’s PMDA after a July meeting and believes it could obtain approval for the arteriovenous indication by 2029 or 2030 without a clinical trial. Canada approved Artegraft last year, and the company plans a September launch there. LeMaitre also plans to file for approval in the U.S. and Europe during the fourth quarter for longer Artegraft packaging tubes, intended to support use in leg bypass procedures. Sales of longer bovine grafts could begin in the second half of 2027, management said. The company ended the second quarter with 163 sales representatives and continues to target 170 to 180 representatives by year-end. Nine representatives have signed to begin in the third quarter, while 13 sales positions remain open. LeMaitre is also expanding its distribution infrastructure. Its primary warehouse has moved and tripled in size in Billerica, Massachusetts, while projects are underway in Madrid, Paris, Toronto, the London area, Dublin and Warsaw. The company expects to begin selling directly to Polish hospitals from a Warsaw warehouse in December. George LeMaitre described the effort as “relocalization,” aimed at placing customer service, inventory and shipping closer to hospital customers. He said localized shipping has reduced costs in some European markets and supported improved regional gross margins. Revenue from RFA allografts increased 17% during the quarter, while cardiac allograft sales grew 39% quarter over quarter, according to management. However, the company reduced its full-year organic growth outlook in part because of anticipated supply constraints for cardiac allografts. President Dave Roberts said LeMaitre remains focused on improving U.S. cardiac tissue supply before pursuing tissue processing expansion outside the country. The company is transferring tissue processing from Fox River Grove, Illinois, to Burlington, Massachusetts, and has already yielded tissue at the Burlington facility. LeMaitre currently distributes cadaver tissues in the U.S., Canada, the United Kingdom and Germany. It expects potential approvals in Ireland during the first half of 2027, followed by Austria, the Netherlands and Spain in the same period, and Australia and Switzerland in the second half of 2027. Separately, the company said an FDA pre-submission for its QuickStitch project indicated that a clinical trial is likely to be required. George LeMaitre said the company is evaluating whether to pursue that path, noting that a clinical trial timeline would be measured in years rather than quarters. The FDA also re-audited LeMaitre’s New Jersey facility in June following a 2025 warning letter. Management said it believes it adequately addressed three-fourths of the prior observations, received additional quality-system observations on June 25 and responded on July 16. The observations have not disrupted production, shipping or invoicing, the company said. LeMaitre updated its full-year guidance to revenue of $276.3 million, representing 11% reported revenue growth and 11% organic revenue growth. The company had previously projected 12% organic growth. Management expects full-year gross margin of 72.4%, operating income of $76.8 million and an operating margin of 28%. Fully diluted earnings per share is projected at $2.89, up 21% from adjusted 2025 results. LeBlanc said the lower revenue and operating-income outlook reflects updated foreign-exchange assumptions, continuing Middle East export restrictions and slower-than-expected cardiac allograft growth due to supply limitations. He added that stronger returns on invested cash are expected to provide some benefit below the operating-income line. LeMaitre Vascular, Inc is a specialty medical device company focused on the development, manufacture and marketing of products for the treatment of peripheral vascular disease. Headquartered in Burlington, Massachusetts, the company's offerings include a broad portfolio of vascular surgical instruments, grafts, patches, catheters and embolic protection devices. LeMaitre's product lines address key areas such as arterial reconstruction, endovascular repair and vascular access, serving the needs of cardiovascular surgeons and interventional specialists. Founded in 1983 by George D. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "LeMaitre Vascular Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Revenue: Q2 2026 sales grew 10% organically, with 7% from price and 3% from units. Gross Margin: Q2 2026 gross margin was 72.1%, a 210 basis point increase year-over-year. Operating Income: Recorded at $20.4 million, up 26%, resulting in a 29% operating margin. Net Income: Increased 24% year-over-year to $17.1 million. Earnings Per Share (EPS): Fully diluted EPS was $0.74, up 23%. Cash Flow: Cash from operations generated $16 million in Q2. Cash Position: Ended Q2 2026 with $376 million in cash and securities. Capital Expenditures: Incurred $2.3 million in Q2. Dividends: Paid $5.7 million to shareholders in Q2. Product Line Performance: Artograft grew 34%, accounting for 21% of sales; Graphs up 23%, Shunts up 18%, Patches up 4%, Catheters down 11%. Regional Performance: EMEA up 18%, APAC up 18%, Americas up 5%. Full-Year Guidance: Revenue guidance updated to $276.3 million (11% reported growth), gross margin of 72.4%, operating income of $76.8 million (28% margin), and EPS of $2.89 (up 21%). Warning! GuruFocus has detected 5 Warning Signs with MTCH. Is LMAT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. LeMaitre Vascular Inc (NASDAQ:LMAT) reported strong Q2 2026 results with 10% organic sales growth and 23% EPS growth, driven by higher ASPs and disciplined spending. Artegraft continues to be a major growth driver, with sales up 34% in Q2, accounting for 21% of total sales, and international expansion progressing well with approvals in 56 countries. The company is investing in infrastructure, including seven new or expanded warehouses, which is expected to improve customer connections and reduce shipping costs, contributing to margin expansion. Gross margin improved by 210 basis points year-over-year to 72.1%, supported by higher ASPs, reduced shipping costs, and a favorable product mix from high-margin Artegraft sales. The company maintains a strong balance sheet with $376 million in cash and securities, and continues to generate solid cash flow from operations. LeMaitre Vascular Inc (NASDAQ:LMAT) missed its Q2 2026 sales guidance by $1.1 million due to a stronger US dollar, Middle East war-related export delays, and cardiac allograft supply constraints. Catheter sales declined 11% in Q2 due to recall-driven overstocking in the prior year, negatively impacting overall growth. The QuickStick project faces a potential clinical trial requirement, which could delay the timeline by years and require significant investment. Cardiac allograft supply constraints are hampering growth, with the company expecting slower growth in H2 2026 due to anticipated supply issues. The company reduced its full-year organic revenue growth guidance from 12% to 11% and lowered operating income guidance due to FX headwinds, export disruptions, and RFA supply constraints. Q: Can you provide more color on how you're thinking about allocating resources to the QuickStick project, given the FDA now indicates a clinical trial is likely, making the timeline years rather than quarters?A: George LeMaitre (CEO): We see QuickStick as a nice piece of the market, particularly in the U.S. However, the news is fresh, and we need to sit back and decide what to do next. We are not historically a clinical trial company, but we do have aspirations to become more R&D focused. It will take time to figure out the path forward, but we acknowledge it's an important opportunity. Q: How are you thinking about next steps and timelines for relief on the RFA (cardiac allograft) supply constraints?A: George LeMaitre (CEO) and Dorian LeBlanc (CFO): We are actively working on a set of four or five initiatives to solve this. A major move is transferring tissue processing from Fox River Grove, Illinois to our Burlington, Massachusetts headquarters, which is already yielding tissue. We are also considering bringing on more recovery groups. Despite the constraints, cardiac allografts were up 39% quarter-on-quarter, so the business is performing well, but the growth rate is slowing from our initial expectations. Q: The Americas region was softer than expected. Was this mostly driven by the catheter issue, and how should we think about underlying procedural growth?A: George LeMaitre (CEO): The catheter issue is the primary driver. In Q2 2025, we had a recall that led to customer hoarding, creating a tough comparison. If you exclude catheters, the Americas posted 8% organic growth, which feels more normal for our business. We don't lean heavily on macro procedure volume data because our customers are typically 70-year-old patients, not Medicaid populations, so we focus on our internal execution. Q: Can you elaborate on the warehouse expansion initiative and its long-term impact on margins and working capital?A: George LeMaitre (CEO): This is a major initiative called "Relocalization." We are moving from a centralized European distribution model (Frankfurt) to local warehouses (e.g., Madrid, Paris, Warsaw) to be closer to customers. This has led to significant shipping cost savingsfor example, shipping to a Madrid hospital from Frankfurt costs $55, but from Madrid it costs $5. This is driving a substantial gross margin expansion in Europe, with margins up 5-9 full points year-over-year. The profitability of our European segment is up roughly 70%, making it the clear highlight of Q2. Q: Can you update us on the Artograft tender processes in Europe and whether the back-half outlook depends on those wins converting?A: George LeMaitre (CEO): Q2 Artograft sales in Europe exceeded our expectations. Initially, success was concentrated in Central Europe (Holland, Belgium, Germany, Austria), but it has now spread to France, Italy, Spain, and the UK. While the tender-driven Nordic markets may be slower, the Southern European tender markets are performing very well, helping the business post record sales every month and quarter. Q: Regarding the guidance, gross margin was raised, but operating income guidance was lowered. Can you help us understand these dynamics?A: Dorian LeBlanc (CFO): The decrease in operating income guidance is a direct flow-through from the revenue decline, driven by three factors, each accounting for about a third of the change: 1) FX headwinds from the strengthening U.S. dollar, 2) the ongoing Middle East conflict delaying export revenues, and 3) slowing RFA growth due to supply constraints. Additionally, in H2 2026, you will see less operating leverage compared to H2 2025 because we were in belt-tightening mode last year, whereas this year we are investing in sales reps and infrastructure. Q: Beyond gross margin and OpEx, are there other dynamics below the operating income line we should consider for the EPS model?A: Dorian LeBlanc (CFO): Below Op Inc, we are seeing slightly better yields on our invested cash due to rising yield curves. On the effective tax rate, we still benefit from FDII, but the rate is impacted by discrete items like stock-based compensation timing. We cautioned last quarter not to read into 20.3% as the long-term rate; Q2 was a bit higher, but it should settle to a more normalized rate for the full year. Q: You've dealt with allograft shortages before. What did you do then, and will you do something similar now?A: George LeMaitre (CEO): We pride ourselves on being a no-backorder company. The major move now is bringing the processing to Burlington, where it's near our head of ops and regulatory. We've also implemented a new program called "Donor IQ" and removed constraints on purchasing. We may also bring on more recovery groups, as we already work with about half of the available ones in the country. While it's a challenge, the cardiac business still grew 39% in Q2, so it remains a strong business that we need to fix. Q: Can you provide an update on the M&A pipeline?A: David Roberts (President): The pipeline is very active. We are adding a fourth member to the BizDev team. Our target zone remains the roughly two dozen businesses in open vascular, with expansion into cardiac surgery (which was 13% of Q2 revenue). The sweet spot for acquisitions is companies with $15 million to $150 million in revenue. Q: Was the catheter decline simply a tough year-over-year comp, or is there a durable change in competitive dynamics?A: George LeMaitre (CEO): It's purely a comp issue. In Q2 2025, we had a recall on catheter packaging, which led to customers hoarding products. This created a massive spike in sales last year, making this year's 11% decline a transient effect. Excluding catheters, our organic growth was 12% instead of 10%. We believe this difficult comparison will not repeat in the coming quarters. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Organic growth of 10% was driven by a 7% increase in pricing and 3% unit growth, though results were tempered by a difficult year-over-year comparison in catheters following 2025 recall-driven hoarding. Artegraft has emerged as the company's largest and fastest-growing product line, with international sales expected to reach $11 million in 2026, up from $4 million in 2025. A strategic 'relocalization' initiative in Europe is driving significant gross margin expansion by replacing centralized distribution with local warehouses and customer service in key markets like Madrid and Warsaw. The 210 basis point gross margin improvement to 72.1% resulted from higher average selling prices, reduced shipping costs via local distribution, and a favorable mix of high-margin Artegraft sales. Management attributed a $1.1 million sales guidance miss to three roughly equal factors: a strengthening U.S. dollar, export delays due to the Middle East conflict, and supply constraints in cardiac allografts. Operational efficiency remains a focus, with record operating margins of 29% achieved through disciplined hiring and the consolidation of tissue processing to the Burlington headquarters. Full-year organic revenue growth guidance was revised from 12% to 11%, reflecting anticipated persistence of FX headwinds, Middle East export disruptions, and allograft supply constraints. The company plans to expand its sales force to 170-180 reps by year-end 2026 to support geographic expansion and the launch of Artegraft in Canada this September. Regulatory filings for longer Artegraft tubes (50cm+) are planned for Q4 2026 in the U.S. and Europe, with commercial sales expected to begin in the second half of 2027. Management expects three major international Artegraft approvals in 2027 for Korea, Brazil, and India, with a potential Japan approval for the AV indication by 2029/2030. The 'Quick Stick' project timeline has shifted from quarters to years as management evaluates whether to pursue a likely required clinical trial for the indication. A June 2026 FDA re-audit of the New Jersey facility resulted in new quality systems observations; however, management stated these have not disrupted production or shipping. Cardiac allograft growth is being hampered by supply shortages, prompting a shift in processing to Burlington to improve oversight and the removal of previous purchasing constraints. The company is managing a transition of its primary warehouse to a 34,000 square foot facility in Billerica, Massachusetts, to support domestic and international subsidiary shipping. Convertible debt accounting was triggered in Q2 2026 due to EPS levels, increasing the fully diluted share count to 24.5 million. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management acknowledged that the FDA likely requires a clinical trial, which is outside their historical R&D model. They are currently in a 'thinking it through' phase to decide if the market opportunity justifies a multi-year investment. The 'relocalization' strategy has reduced per-package shipping costs from approximately $55 (from Frankfurt) to $5 (locally within Spain). This shift, combined with Artegraft's success, has led to year-over-year gross margin increases of 5 to 9 full percentage points in certain European territories. Management is moving processing to Burlington to be closer to senior operations and regulatory leadership. They are utilizing a new 'Donor IQ' AI program and considering adding more recovery groups to the approximately 50% of U.S. groups they already partner with. The pipeline is currently active, leading to the addition of a fourth member to the business development team. Targets remain focused on open vascular and cardiac surgery businesses with revenues ranging from $15 million to $150 million.

BURLINGTON, Mass., Aug. 04, 2026 (GLOBE NEWSWIRE) -- LeMaitre Vascular, Inc. (Nasdaq: LMAT), a provider of vascular devices, implants, and services, today reported Q2 2026 results, announced a quarterly dividend of $0.25/share, and provided guidance. Q2 2026: Sales $70.4mm, +10% (+10% organic) vs. Q2 2025 Gross margin 72.1% (+210 bps) Op. income $20.4mm (+26%) Op. margin 29% EPS $0.74 (+23%) Cash up $9.0mm sequentially to $376.2mm Artegraft sales increased 34% in the quarter. Grafts (+23%), carotid shunts (+18%), and patches (+4%) each posted records, as did EMEA (+18%), APAC (+18%) and the Americas (+5%). Catheters were down 11% in the quarter due to recall-driven overstocking in Q2 2025. Q2 organic growth was 12% excluding catheters. Gross margin of 72.1% was up 210 bps due to higher prices, mix shift, and operational efficiencies. Operating income of $20.4mm (+26%) also benefited from headcount restraint: 660 at 6/30/2026 vs. 658 at 6/30/2025. Chairman/CEO George LeMaitre said, “Our focus on the Artegraft international launch paid off in Q2. The product is now approved in 56 countries, accounting for 21% of sales. So our largest product is now our fastest-growing product. To underpin the Artegraft launch and pave the way for RFA, we continue to build our sales force, go direct in new countries and we’re now undertaking six international warehouse expansions. $376m of cash provides strategic optionality.” Business Outlook * Q3 2025 results included a non-recurring benefit from the Employee Retention Tax Credit. Non-GAAP adjusted figures exclude this benefit. A reconciliation of GAAP to non-GAAP projected results is included. Quarterly Dividend On July 28, 2026, the Company's Board of Directors approved a quarterly dividend of $0.25/share of common stock. The dividend will be paid on September 3, 2026, to stockholders of record on August 20, 2026. Share Repurchase Program On February 19, 2026, the Company's Board of Directors authorized the repurchase of up to $100.0mm of the Company’s common stock. The repurchase program may be suspended or discontinued at any time and will conclude on February 18, 2027, unless extended by the Board. Conference Call Reminder Management will conduct a conference call at 5:00pm ET today. The conference call will be broadcast live over the Internet. Individuals interested in listening to the webcast can log on to the Company's website at www.lemaitre.com/investor. Access to the live call is available by registering online here. All registrants will receive dial-in information and a PIN allowing them to access the live call. The audio webcast can also be accessed live or via replay through a webcast at www.lemaitre.com/investor. For individuals unable to join the live conference call, a replay will be available on the Company's website. A reconciliation of GAAP to non-GAAP results is included in the tables attached to this release. About LeMaitre LeMaitre is a provider of devices, implants, and services for the treatment of peripheral vascular disease, a condition that affects more than 200 million people worldwide. The Company develops, manufactures, and markets disposable and implantable vascular devices to address the needs of its core customer, the vascular surgeon. LeMaitre is a registered trademark of LeMaitre Vascular, Inc. This press release may include other trademarks and trade names of the Company. For more information about the Company, please visit www.lemaitre.com. Use of Non-GAAP Financial Measures LeMaitre management believes that in order to better understand the Company's short- and long-term financial trends, investors may wish to consider certain non-GAAP financial measures as a supplement to financial performance measures prepared in accordance with GAAP. Non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and do not have standardized meanings. These non-GAAP measures result from facts and circumstances that may vary in frequency and/or impact on continuing operations. Non-GAAP measures should be considered in addition to, and not as a substitute for, GAAP financial performance measures. In addition to the description provided below, reconciliation of GAAP to non-GAAP results is provided in the financial statement tables included in this press release. In this press release, the Company has reported non-GAAP sales growth percentages after adjusting for the impact of foreign currency exchange, business development transactions, and/or other events. The Company refers to the calculation of non-GAAP sales growth percentages as "organic" or “adjusted.” The Company analyzes non-GAAP sales on a constant currency basis, net of acquisitions and other non-recurring events. Because changes in foreign currency exchange rates have a non-operating impact on net sales, and acquisitions, divestitures, product discontinuations, factory closures, and other strategic transactions are episodic in nature and are highly variable to the reported sales results, the Company believes that evaluating growth in sales on a constant currency basis net of such transactions provides an additional and meaningful assessment of sales to management. Additionally, the Company has provided percentages for operating income and EPS guidance adjusted to exclude the effects of the employee retention tax credit received in 2025. Management believes that viewing projected growth in operating income and EPS excluding those effects provides an alternative and meaningful view of the Company’s projected profitability. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures set forth in the tables captioned “Reconciliation of GAAP to Non-GAAP Financial Measures” below. Forward-Looking Statements The Company's current financial results, as discussed in this release, are preliminary and unaudited, and subject to adjustment. This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Statements in this press release regarding the Company's business that are not historical facts may be "forward-looking statements" that involve risks and uncertainties. Forward-looking statements are based on management's current, preliminary expectations and are subject to risks and uncertainties that could cause actual results to differ from the results expected, including, but not limited to, our ability to maintain historic levels of profit growth; our ability to increase the selling prices of our products; the status of our regulatory approvals, compliance with regulatory requirements, and the potential for adverse regulatory findings or enforcement actions arising from inspections, audits, or other regulatory reviews, affecting our ability to market and sell our products domestically and internationally; competition from other medical device companies and alternative medical technologies; our ability to source, acquire, and integrate acquisitions; our dependence on sole- or limited-source suppliers; our ability to engage sales call points other than vascular surgeons; disruptions to our information technology systems or breaches of our information security systems; our implementation of our new enterprise resource planning system; our ability to procure, process, and preserve human tissue and comply with relevant regulatory requirements; the impact of a disruption in our manufacturing facilities; our ability to navigate the risks inherent in operating internationally; our ability to transition to direct sales models in certain international territories; the occurrence of litigation relating to product liability, employment matters, intellectual property, contract disputes, and other matters; the occurrence of product defects or recalls; our ability to service and repurchase our debt; the dilutive effect of a conversion of our debt; our ability to navigate executive officer transitions and retain key personnel; our ability to protect our intellectual property; volatility in the price of our common stock; and other risks and uncertainties included under the heading "Risk Factors" in our most recent Annual Report on Form 10-K, as updated by our subsequent filings with the SEC, which are all available on the Company's investor relations website at http://www.lemaitre.com and on the SEC's website at http://www.sec.gov. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to update publicly any forward-looking statements to reflect new information, events, or circumstances after the date they were made, or to reflect the occurrence of unanticipated events. CONTACT: Gregory MankerDirector of Business Development and Investor [email protected]

LeMaitre Vascular (LMAT) came out with quarterly earnings of $0.74 per share, missing the Zacks Consensus Estimate of $0.81 per share. This compares to earnings of $0.6 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -8.64%. A quarter ago, it was expected that this medical device maker would post earnings of $0.66 per share when it actually produced earnings of $0.68, delivering a surprise of +3.03%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. LeMaitre, which belongs to the Zacks Medical - Products industry, posted revenues of $70.38 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.91%. This compares to year-ago revenues of $64.23 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. LeMaitre shares have added about 27.8% since the beginning of the year versus the S&P 500's gain of 11%. While LeMaitre has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for LeMaitre was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.72 on $68.5 million in revenues for the coming quarter and $3.00 on $279.81 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, VAREX IMAGING (VREX), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This company is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of +22.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. VAREX IMAGING's revenues are expected to be $216.57 million, up 6.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report LeMaitre Vascular, Inc. (LMAT) : Free Stock Analysis Report VAREX IMAGING (VREX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research