Vericel Corporation

Ladies and gentlemen, thank you for standing by. Welcome to VeriCell's second quarter 2026 conference call. At this time, all participants are in a listen-only mode. I would also like to remind you that this call is being recorded for replay. I will now turn the conference call over to Eric Burns, VeriCell's Vice President of Finance, Business Intelligence, and Investor Relations.

Thank you, Operator, and good morning, everyone. Joining me on today's call are VeriCell's President and Chief Executive Officer, Nick Colangelo, and our Chief Financial Officer, Joe Amara. Before we begin, I would like to remind you that the discussions during this conference call will include forward-looking statements. Factors that could cause actual results to differ materially from expectations are discussed more fully in the company's most recent filings with the SEC. Also, the discussions today will include certain non-GAAP financial measures, reconciliations to the most directly comparable GAAP financial measures can be found in today's press release as an exhibit to Verasol's current report on Form 8-K filed today with the SEC. A short presentation with highlights from today's call is also available in the investor relations section of our website. I will now turn the call over to Nick.

Thank you, Eric, and good morning, everyone. The company delivered excellent financial and commercial results across the business in the second quarter and achieved a number of key business objectives that positioned the company to continue to generate strong revenue, profit, and cash flow growth in 2026 and beyond. The company generated record second quarter total revenue of more than $77 million, which increased 22% over last year, and exceeded our guidance for the quarter, driven by substantial growth for both Macy and the BurnCare business. This strong revenue performance drove another quarter of significant profit and cash flow growth as the company generated gap net income for the quarter and over $14 million of free cash flow, ending the quarter with over $227 million in cash and investments. These results continued a very strong performance to date in 2026, as the company generated total revenue growth of 26%, adjusted EBITDA growth of 47%, and nearly $30 million of free cash flow in the first half of the year. Based on these results and the significant momentum across the business, we're raising our full year revenue guidance to $330 to $340 million, which represents total revenue growth of more than 20% at the midpoint of our guidance range. Macy had another great quarter as double digit volume growth drove record second quarter revenue of more than $65 million which exceeded our guidance for the quarter and represented 23% growth versus the prior year. Macy's trailing four quarter revenue growth of 23% is significantly higher than its 19% growth in the prior four quarters as we continue to execute on our strategic initiatives to deliver sustained high revenue growth for Macy. To that end, we're leveraging our larger Macy sales force to drive growth in new Macy users and deeper penetration within our current Macy surgeon practices. We continue to leverage Macy Arthro to expand overall Macy utilization, and our medical team has made significant progress in generating clinical data demonstrating the potential for improved patient outcomes with the less invasive Macy-Arthro procedure. Our commercial excellence initiatives, together with strong execution from our Macy sales team, led to double digit biopsy and implant growth, record second quarter biopsies, implants, and biopsy and implanting surgeons, as well as the second highest number of biopsies and biopsy surgeons in any quarter since launch. BurnCare's second quarter revenue increased 22% to $12 million, which was above our guidance range for the quarter and represented one of the highest burn care revenue quarters to date. EpiCell had another strong quarter and Nexabrid had its highest quarter of revenue, ordering centers, and total hospital unit sales to date, continuing the trend of strong overall burn care results over the past four quarters. In terms of our longer-term growth initiatives, we remain on track to relaunch Macy outside the United States and submitted a Macy marketing authorization application in the UK in the second quarter, which if approved, would enable the company to potentially launch Macy in the UK in 2027. We also continue to activate sites in the Macy ankle mascot study and began enrolling patients in the study in the second quarter. Finally, as part of the company's capital allocation strategy to maximize long-term shareholder value, this morning we announced that our board of directors has authorized a $200 million share repurchase program. Our financial outperformance, robust cash generation, and strong balance sheet position the company to continue to invest in our near and long-term growth initiatives across all areas of our business and to opportunistically return capital to shareholders. Our significant ongoing investments, together with the launch of the company's first share repurchase program, reflect our confidence in the sustained growth trajectory for the company in the years ahead. I'll now turn the call over to Joe to discuss our second quarter results and our updated 2026 guidance in more detail.