Medical device company Artivion (NYSE:AORT) beat Wall Street’s revenue expectations in Q3 CY2025, with sales up 18.4% year on year to $113.4 million. The company’s full-year revenue guidance of $442 million at the midpoint came in 0.9% above analysts’ estimates. Its non-GAAP profit of $0.16 per share was in line with analysts’ consensus estimates.
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Artivion (AORT) Q3 CY2025 Highlights:
- Revenue: $113.4 million vs analyst estimates of $110.5 million (18.4% year-on-year growth, 2.6% beat)
- Adjusted EPS: $0.16 vs analyst estimates of $0.15 (in line)
- Adjusted EBITDA: $24.57 million vs analyst estimates of $22.25 million (21.7% margin, 10.4% beat)
- The company slightly lifted its revenue guidance for the full year to $442 million at the midpoint from $439 million
- EBITDA guidance for the full year is $89.5 million at the midpoint, in line with analyst expectations
- Operating Margin: 11.1%, up from 4.6% in the same quarter last year
- Free Cash Flow Margin: 15.6%, up from 8.2% in the same quarter last year
- Market Capitalization: $2.19 billion
"Our third quarter performance was exceptionally strong as we made progress across each of our strategic initiatives while delivering 16% constant currency revenue growth. Revenue growth was driven by year-over-year growth in stent grafts of 38%, On-X of 25%, preservation services of 5%, BioGlue of 2%, all compared to the third quarter of 2024. On a constant currency basis, year-over-year stent grafts, On-X, preservation services, and BioGlue grew 31%, 23%, 5%, and 1%, respectively." said Pat Mackin, Chairman, President, and Chief Executive Officer.
Company Overview
Formerly known as CryoLife until its 2022 rebranding, Artivion (NYSE:AORT) develops and manufactures medical devices and preserves human tissues used in cardiac and vascular surgical procedures for patients with aortic disease.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Thankfully, Artivion’s 10.6% annualized revenue growth over the last five years was decent. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Artivion’s annualized revenue growth of 11.5% over the last two years aligns with its five-year trend, suggesting its demand was stable. 
This quarter, Artivion reported year-on-year revenue growth of 18.4%, and its $113.4 million of revenue exceeded Wall Street’s estimates by 2.6%.
Looking ahead, sell-side analysts expect revenue to grow 12.4% over the next 12 months, similar to its two-year rate. This projection is admirable and suggests the market is forecasting success for its products and services.
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Operating Margin
Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.
Artivion’s operating margin might fluctuated slightly over the last 12 months but has generally stayed the same, averaging 4.8% over the last five years. This profitability was paltry for a healthcare business and caused by its suboptimal cost structure.
Analyzing the trend in its profitability, Artivion’s operating margin of 6.1% for the trailing 12 months may be around the same as five years ago, but it has increased by 4.1 percentage points over the last two years.
This quarter, Artivion generated an operating margin profit margin of 11.1%, up 6.5 percentage points year on year. This increase was a welcome development and shows it was more efficient.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.
Artivion’s EPS grew at an astounding 23.8% compounded annual growth rate over the last five years, higher than its 10.6% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
In Q3, Artivion reported adjusted EPS of $0.16, up from $0.12 in the same quarter last year. This print beat analysts’ estimates by 5.3%. Over the next 12 months, Wall Street expects Artivion’s full-year EPS of $0.46 to grow 60.3%.
Key Takeaways from Artivion’s Q3 Results
We enjoyed seeing Artivion beat analysts’ revenue expectations this quarter. We were also glad its full-year revenue guidance slightly exceeded Wall Street’s estimates. Overall, this print had some key positives. The stock remained flat at $47.50 immediately following the results.
Should you buy the stock or not? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.