LeMaitre Vascular NASDAQ: LMAT reported first-quarter 2026 results highlighted by double-digit revenue growth, expanding profitability, and continued momentum in its Artegraft franchise, which management said is now the company’s largest product.
Quarter performance driven by grafts, international growth, and pricing
CEO George LeMaitre said the quarter “featured 11% sales growth, a 72.7% gross margin, and 42% EPS growth.” He noted record sales across multiple categories, led by grafts up 20%, valvulotomes up 15%, and carotid shunts up 11%.
Geographically, LeMaitre said all three regions posted record sales. EMEA increased 20%, APAC grew 18%, and the Americas rose 7%.
CFO Dorian LeBlanc said organic sales growth was 10% versus Q1 2025, driven by average selling price (ASP) increases of 8% and unit growth of 2%. Unit growth was pressured by a “lower than average quarter” in the company’s distribution business, which he described as “lumpy.” Excluding distribution, LeBlanc said direct sales grew 12.8% organically, comprised of 8.4% price and 4.4% units.
Artegraft strategy: international approvals, longer lengths, and “Quick Stick” pathway
Management repeatedly returned to Artegraft, with George LeMaitre outlining three investment priorities: additional international approvals, longer graft sizes for leg bypass procedures, and pursuing “Quick Stick” claims for AV access on U.S. labeling.
Worldwide Artegraft sales increased 36% in the quarter, and international Artegraft sales were $2.1 million. George LeMaitre said the company expects 2026 international Artegraft sales of $10 million, up from $4 million in 2025. Addressing the quarterly cadence, he said Q1 is typically the company’s lightest quarter and added that a day-adjusted view of Q1 international Artegraft sales “winds up being an $8.6 million” annual run rate. He pointed to Canada as a near-term driver, saying Health Canada has approved Artegraft and a launch is planned for the second half of 2026 as packaging validations are completed.
Looking further out, George LeMaitre said additional Artegraft approvals are expected in 2027 for Korea, Brazil, Vietnam, and India. When asked about timing, he suggested “one of them in H1 and three of them in H2.”
On longer sizes for Europe, George LeMaitre said demand has increased for the company’s 50 cm Artegraft, but current packaging limits length because the packaging tube is 53 cm long. The company plans to file for a longer tube in the U.S. and Europe in the second half of 2026, with first sales of longer Artegrafts potentially beginning in the second half of 2027.
During Q&A, management said longer Artegrafts could command premium pricing. George LeMaitre said the company has already seen that the 50 cm product carries “significantly premium pricing” versus other Artegraft lengths, and he expects additional longer lengths could also price at a premium. He also noted that in Europe, the company has set pricing “above the American pricing,” which he called “kind of rare,” and said it “seems to be working.”
On Quick Stick AV access claims, George LeMaitre said LeMaitre has made a pre-submission filing to the FDA to collaborate on the pathway for a PMA filing or clinical trial design. He said Artegraft’s current U.S. labeling restricts cannulation to 10 days after implantation, but peer-reviewed literature indicates it can be cannulated in one to three days. President Dave Roberts said the indication would primarily help the U.S. market, noting that Europe currently uses Artegraft largely for peripheral bypass rather than dialysis access. He said U.S. Artegraft sales were “around $40 million” last year and described the regulatory path as potentially “two years, but it could be five or six years.”
When asked whether longer Artegraft approvals would expand the company’s international biologic graft market estimate, George LeMaitre said LeMaitre’s current “TAM” for biologic grafts outside the U.S. remains $30 million and that, “in the short run,” it would not change that figure.
RestoreFlow allograft and tissue distribution expansion
George LeMaitre said RestoreFlow allograft (RFA) sales rose 25% in Q1, “led by strong U.S. results.” He said LeMaitre currently distributes tissues in the U.S., Canada, and the U.K., and expects German implants to begin in Q2. He also said the company now expects to receive Irish approval in the second half of the year.
LeMaitre said its Irish warehouse opened in April and will begin shipping core medical devices in June while awaiting an audit from the Irish Tissue Authority. George LeMaitre said the audit should enable tissue distribution from the Dublin warehouse to Irish hospitals in the second half of 2026, and long term the facility is intended for Pan-European distribution.
In addition, George LeMaitre said the company filed for Australian approval in April and plans to file in Austria, Holland, Belgium, Spain, and Switzerland in 2026. He acknowledged the European RFA rollout has been “a little bit slow to start with,” citing the time needed to build inventory of “German approved” items and delays tied to setting up the Irish office and inspection timing.
On the ongoing RFA facility transfer, George LeMaitre said processing is ramping in Burlington and the company should complete the project by year-end.
Margins, cost improvements, cash flow, and guidance
LeMaitre reported Q1 gross margin of 72.7%, up 350 basis points year over year. LeBlanc attributed the improvement primarily to higher ASPs and manufacturing efficiencies, as well as mix benefits from lower distribution sales and strong high-margin Artegraft growth. He said Q2 gross margin guidance of 72.1% reflects the impact of the new Billerica warehouse and the RFA manufacturing transfer to Burlington.
Operating expenses were $30.6 million, up 6% versus Q1 2025. LeBlanc said that despite sales force expansion, total company headcount decreased 3% year over year to 641 as of March 31, 2026. Operating income rose 41% to $17.8 million, with operating margin expanding to 27% from 21% a year ago. Fully diluted EPS was $0.68, up 42%.
LeBlanc said the effective tax rate benefited from a higher share of income qualifying for the foreign-derived intangible income (FDII) deduction, given growth in international Artegraft sales and geographic mix, and said he believes the effective tax rate will remain lower than historical rates.
Cash from operations totaled $15.1 million in Q1, compared with $9 million a year earlier. Capital expenditures were $2.8 million, and the company paid $5.7 million in dividends. LeMaitre ended the quarter with $367 million in cash and securities, up $8 million sequentially.
The company affirmed full-year revenue guidance of $280 million, which it described as 12% organic growth, and raised guidance for gross margin to 72.3%, operating income to $79.8 million, and diluted EPS to $3.00. LeBlanc said Q2 guidance calls for revenue of $71.5 million and an operating margin of 30%, noting Q2 has historically been one of LeMaitre’s strongest quarters.
Sales force expansion, direct-country strategy, and M&A outlook
George LeMaitre said the company ended Q1 with 158 sales representatives, up 3% year over year, and plans to finish 2026 with 170 to 180 reps. The company had 16 open requisitions, mostly in the U.S. LeMaitre also ended Q1 with 35 regional sales managers and country managers, up 13% year over year.
He said LeMaitre expects to go direct in Poland in Q4, adding an office, warehouse, general manager, customer service, and several reps, making Poland the company’s 32nd direct country.
On M&A, Roberts said LeMaitre remains active and has issued “two or three term sheets so far this year,” focusing primarily on open vascular targets and select opportunities in cardiac surgery. He said the revenue “sweet spot” is roughly $15 million to $150 million, though the company will look outside that range. Roberts said the company has “cash and dry powder,” but is looking for “the right fit at the right price,” adding that there are fewer targets remaining in open vascular and that the company has sharpened its focus in cardiac surgery.
George LeMaitre added that stronger confidence in organic growth has reduced pressure to pursue acquisitions, implicitly raising the bar for deals.
Management also addressed pricing sustainability in response to analyst questions. George LeMaitre said the company has implemented pricing floors on about 55% of products in the U.S. and about 40% in Europe, and suggested there is “a little room to go” in Europe. He noted European tender cycles, particularly in Southern Europe, can mean price changes take longer to fully implement.
Separately, when asked about patches, George LeMaitre said it was “not such a great quarter for patches.” He reported XenoSure patch sales were up 5% and the overall patch category grew 2.3% organically in Q1.
George LeMaitre also said the company was unable to ship $175,000 of exports to the Middle East at the end of the quarter but said broader impacts have been limited so far. He added that April sales growth was 13%, comprised of 7% price and 6% units, which he characterized as evidence that Q1 export softness was temporary.
About LeMaitre Vascular NASDAQ: LMAT
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.
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