Vericel (VCEL) Q1 2026 earnings summary

Executive summary

• Achieved record first quarter revenue of $68.4 million, up 30% year-over-year, driven by strong growth in MACI and Burn Care segments, with MACI revenue at $56.4 million (up 22%) and Burn Care at $12 million (up 91%).

• Net loss narrowed to $6.3 million ($0.12 per diluted share) from $11.2 million ($0.23 per share) year-over-year, reflecting improved gross profit and higher interest income.

• Adjusted EBITDA rose 195% to $9.6 million, with margin expanding to 14% of revenue.

• Free cash flow reached $15.1 million, with $211 million in cash and investments and no debt at quarter end.

• FDA approval for new MACI manufacturing facility increases capacity and supports potential international expansion, with transition underway.

Financial highlights

• Total revenue increased 30% year-over-year to $68.4 million, with MACI revenue up 22% to $56.4 million and Burn Care revenue up 91% to $12 million.

• Gross margin improved to 72% from 69% year-over-year, with gross profit at $49.3 million.

• Adjusted EBITDA margin rose to 14% from 6% year-over-year.

• Free cash flow was $15.1 million, with operating cash flow at $16.4 million.

• Cash and investments totaled $211 million at quarter end, up $50 million year-over-year.

Outlook and guidance

• Full-year 2026 revenue guidance raised by $10 million to $326–$336 million, with MACI guidance at $282–$288 million and Burn Care at $44–$48 million.

• Q2 MACI revenue expected at $62.5–$63.5 million.

• Full-year gross margin guidance reaffirmed at ~75% and adjusted EBITDA margin at ~27%.

• Management expects current cash, investments, and borrowing capacity to support operations for at least 12 months.

• Ongoing clinical trial (MASCOT) for MACI in ankle cartilage defects and plans for UK market entry in 2027.