BURLINGTON, Mass., July 30, 2026 (GLOBE NEWSWIRE) -- Vericel Corporation (NASDAQ:VCEL), a leader in advanced therapies for the sports medicine and severe burn care markets, reported financial results and business highlights for the second quarter ended June 30, 2026.

Second-quarter 2026 financial highlights

• Total net revenue increased 22% to $77.5 million
• MACI® net revenue increased 23% to $65.5 million
• Burn Care net revenue increased 22% to $12.0 million
• Gross margin was 73%
• Net income was $2.2 million, or $0.04 per diluted share
• Non-GAAP adjusted EBITDA margin was 19%
• Operating cash flow was $16.2 million
• Free cash flow was $14.3 million
• The company ended the quarter with approximately $227 million in cash and investments and no debt

First-half 2026 financial highlights

• Total net revenue increased 26% to $145.9 million
• MACI net revenue increased 22% to $121.9 million
• Burn Care net revenue increased 49% to $24.0 million
• Adjusted EBITDA increased 47% to $24.4 million
• Operating cash flow was $32.6 million
• Free cash flow was $29.4 million

Business highlights and updates

Vericel said the second quarter set records for total revenue and MACI revenue. MACI revenue increased at least 20% for the fifth consecutive quarter, with a four-quarter trailing revenue growth rate of 23%. MACI, the company's flagship product for knee cartilage repair, has been a key driver of Vericel's growth as adoption of autologous cell-based therapies in orthopedics continues to expand.

The company also reported record quarterly revenue for NexoBrid®, with 36% growth from the prior quarter and 33% growth from the prior year. Epicel® revenue rose 21% in the second quarter. Both products address severe burn care, a specialized market with limited treatment alternatives.

Vericel said MACI biopsy and implant volume grew at a double-digit rate, with record second-quarter MACI biopsies, implants, and biopsy and implanting surgeons. The company also recorded the second-highest number of MACI biopsies and biopsy surgeons in any quarter since launch.

In addition, Vericel submitted a MACI marketing authorization application to the U.K. Medicines and Healthcare products Regulatory Agency (MHRA). If approved, the filing would mark Vericel's first international market expansion for MACI beyond the United States. The company's board of directors also authorized a $200 million share repurchase program, the first in Vericel's history.

"The Company delivered excellent financial and business results in the second quarter as we continue to generate top-tier revenue and profit growth as well as significant free cash flow," said Nick Colangelo, President and CEO of Vericel. "Given the strong performance across both of our commercial franchises in the first half of the year, the Company is well-positioned for sustained high revenue, profit, and cash flow growth in 2026 and beyond. Our financial outperformance and strong balance sheet allow the Company to continue to invest in our long-term growth initiatives and to opportunistically return capital to shareholders through the launch of the Company's first share repurchase program, which reflects our confidence in the sustained growth trajectory for the Company in the years ahead."

Full-year 2026 guidance

Vericel raised its 2026 revenue outlook to:

• Total revenue of $330 million to $340 million, up from $326 million to $336 million
• MACI revenue of $284 million to $290 million, up from $282 million to $288 million
• Burn Care revenue of $46 million to $50 million, up from $44 million to $48 million

The company reaffirmed full-year profitability guidance for gross margin of approximately 75% and adjusted EBITDA margin of approximately 27%. The raised outlook follows two consecutive quarters of accelerating year-over-year revenue growth.

Second-quarter 2026 results

Total net revenue for the quarter ended June 30, 2026, rose 22% to $77.5 million from $63.2 million in the same period of 2025. Quarterly product revenue included $65.5 million from MACI (autologous cultured chondrocytes on porcine collagen membrane), $10.4 million from Epicel (cultured epidermal autografts), and $1.5 million from NexoBrid (anacaulase-bcdb), compared with $53.5 million, $8.6 million, and $1.2 million, respectively, in the second quarter of 2025.

Gross profit was $56.4 million, or 73% of net revenue, compared with $46.6 million, or 74% of net revenue, in the second quarter of 2025.

Operating expenses totaled $56.0 million, up from $48.6 million a year earlier. Vericel said the increase was mainly due to higher headcount and related employee expenses, including the expansion of the MACI sales force, as well as higher marketing spending.

Net income was $2.2 million, or $0.04 per diluted share, compared with a net loss of $0.6 million, or $0.01 per diluted share, in the second quarter of 2025. Non-GAAP adjusted EBITDA was $14.9 million, or 19% of net revenue, compared with $13.4 million, or 21% of net revenue, a year earlier.

Conference call

Vericel said it would host a conference call at 8:30 a.m. Eastern Time on July 30, 2026. The live webcast is available in the Investor Relations section of the company's website at Presentation slides will be available on the webcast and on Vericel's website. A replay will remain available until July 30, 2027.

Telephone access is available by dialing 800-330-6730, or +1-312-471-1351 from outside the U.S., using passcode 567253.

About Vericel Corporation

Vericel is a provider of advanced therapies for the sports medicine and severe burn care markets. The company markets three products in the United States: MACI, Epicel, and NexoBrid under an exclusive North American license.

MACI is an autologous cellularized scaffold product indicated for the repair of symptomatic, single or multiple full-thickness cartilage defects of the knee with or without bone involvement in adults. Epicel is a permanent skin replacement for patients with deep dermal or full-thickness burns greater than or equal to 30% of total body surface area. NexoBrid is a biological orphan product containing proteolytic enzymes and is indicated for eschar removal in adults and pediatric patients with deep partial-thickness and/or full-thickness thermal burns.

Epicel®, MACI® and MACI Arthro® are registered trademarks of Vericel Corporation. NexoBrid® is a registered trademark of MediWound Ltd. and is used under license to Vericel Corporation.

GAAP and non-GAAP measures

Vericel said its reported earnings are prepared in accordance with generally accepted accounting principles in the United States, or GAAP, and are reported to the Securities and Exchange Commission (SEC). The company also provided non-GAAP measures, including adjusted EBITDA and free cash flow, which management said help investors understand underlying performance and compare results over time and against peers. Vericel said these measures are not uniformly applied, are not audited, and should not be viewed as substitutes for GAAP results.

Forward-looking statements

Vericel said statements in the release other than historical facts are forward-looking statements and involve risks and uncertainties that could cause actual results to differ materially. The company cited factors including future revenue and growth expectations, market penetration for MACI, MACI Arthro, Epicel and NexoBrid, profit and margin performance, manufacturing scale-up, profitability, surgeon adoption, clinical and product development timing, potential FDA approval of MACI for ankle cartilage defects, potential U.K. market approval for MACI, reimbursement changes, supply chain disruptions, BARDA funding under its NexoBrid agreement, global economic and geopolitical conditions, trade policy changes, regulatory developments, and a U.S. government shutdown.

Additional detail is available in Vericel's Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026, and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, filed with the SEC on July 30, 2026.

Investor Contact: Eric Burns, [email protected], +1 (734) 418-4411