Revenue clearly beat the quarter’s expectation. Revenue reached $125.8 million versus published consensus of roughly $120.0 million, a nearly 5% beat. Constant-currency growth was 9%, led by On-X at 18% and aortic stent grafts at 12%; surgical sealants remained essentially flat. (Financial Highlights; Product Revenue)
| Metric | Q2 2026 | Q2 2025 | Market expectation / comparison |
|---|---|---|---|
| Total revenue | $125.8M | $113.0M | ~$120.0M consensus |
| Constant-currency revenue growth | 9% | — | — |
| Adjusted EBITDA | $26.4M | $24.8M | — |
| Adjusted diluted EPS | $0.13 | $0.24 | Around breakeven consensus |
| GAAP diluted EPS | $(0.28) | $0.03 | — |
| Free cash flow | $(12.0)M | $11.7M | — |
The underlying growth was solid, but earnings quality weakened. Adjusted EBITDA rose only 7% despite the revenue beat, while adjusted diluted EPS fell to $0.13 from $0.24. GAAP profitability swung to a $13.5 million net loss, largely reflecting higher business-development, integration, and severance costs tied to Endospan and greater amortization. (Adjusted EBITDA reconciliation; Adjusted Net Income reconciliation; Income Statement)
The bigger surprise is the guidance cut hidden behind “reaffirmation.” Revenue guidance stayed at $480 million to $496 million, but adjusted EBITDA guidance is now $92 million to $99 million, down from the $100 million to $107 million range issued after the first quarter. The company attributes roughly $8 million of 2026 expense to Endospan, so the acquisition is adding strategic reach but worsening near-term earnings expectations. (Full-Year 2026 Guidance; Q1 2026 Prior Guidance)
The balance sheet now carries materially more acquisition and execution risk. Endospan required $116.7 million of cash, funded alongside $148.9 million of new long-term debt; long-term debt rose to $363.4 million from $215.1 million at year-end. Operating cash flow was approximately breakeven for the first six months, while free cash flow was negative $18.9 million after capital spending. (Cash Flow Statement; Balance Sheet; Free Cash Flow reconciliation)
Net read: a revenue beat offset by a lower profit outlook. The quarter shows strong demand in the higher-growth stent-graft and On-X franchises and produced adjusted EPS above a roughly breakeven expectation, but the EBITDA guidance reduction, negative free cash flow, and increased leverage keep the filing from being a clean positive. The market gets better growth execution than expected, but a weaker near-term earnings and cash-conversion picture.
Read the original 8-K on SEC EDGAR ↗