Artivion, Inc.

Good day, ladies and gentlemen, and welcome to the Artivian Second Quarter 2025 Earnings Call. Our host for today's call is Lane Morgan, Investor Relations, Gilmartin Group. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. I would now like to turn the call over to your host. Lane, you may begin.

Thanks, Operator. Good afternoon, and thank you for joining the call today. Joining me today from our Artivian management team are Pat Mackin, CEO, and Lance Berry, CFO. Before we begin, I'd like to make the following statements to comply with the safe harbor requirements of the Private Securities and Litigation Reform Act of 1995. Comments made on this call that were forwarded in time involve risks and uncertainties in our forward-looking statements within the meaning of the Private Securities and Litigation Reform Act of 1995. The forward-looking statements include statements made as to the company's forward-management intentions, hopes, beliefs, expectations, or predictions of the future. These forward-looking statements are subject to a number of risks, uncertainties, estimates, and assumptions that may cause actual results to different materials from these forward-looking statements. Additional information concerning certain risks and uncertainties that may impact these forward-looking statements is contained from time to time in the Considini's SEC filings and in the pressure results issued earlier today. You can also find a brief presentation with details highlighted on today's call on the Investor Relations section of the Artivian website. Now I'll turn it over to Artivian CEO Pat Mackin.

Thanks, Layne, and good afternoon, everybody. Please report that our strong business momentum continued through the second quarter as we delivered total constant currency revenue growth of over 14% and adjusted EBITDA growth of 33% year over year. Further, we made continued early progress with our ongoing AMDS launch following FDA humanitarian device exemption approval or HDE approval, and we remain on track with each of our key clinical and pipeline initiatives aimed at expanding our addressable market. During the quarter, we also took steps to strengthen our balance sheet and meaningfully reduced our net leverage by retiring our convertible note due in 2025, which Lance will detail further. Our Q2 performance was enabled by continued growth across our product portfolio with exceptional strength in U.S. ONIX sales. From a product category standpoint, ONIX revenue increased 24% year over year on a constant currency basis as we continue to take market share globally with the only mechanical aortic heart valve that can be maintained at a low INR of 1.5 to 2.0. Based on the proven clinical results of the ONIX aortic valve and the growing body of evidence supporting the use of mechanical valves in younger patients, we maintain our strong conviction that the ONIX is the best aortic valve on the market for patients under the age of 65 and will continue to take market share worldwide. Our U.S. ONIX performance was particularly strong as we benefited from a continued growth in awareness and adoption of our ONIX valves driven by positive new data and cross-selling opportunities from our initial AMDS launch. This cross-selling dynamic in particular has reinforced our conviction in our innovation-driven multi-pronged growth strategy and further strengthened our confidence in both our near and long-term outlooks for growth and profitability. To that end, StentGraph revenues grew 22% on a constant currency basis in the second quarter compared to the same period last year as the U.S. AMDS launch accelerated our growth rate. Our StentGraph portfolio remains a key component of our growth strategy, and we are encouraged by our strong results which are driven by our differentiated portfolio of products focused on the more complex segments of the StentGraph market. Today, the products in our StentGraph portfolio are sold primarily in Europe where we leverage our existing direct sales infrastructure to create significant cross-selling opportunities across our unique aortic product offerings. Our pipeline consists largely of bringing some of these proven products to the U.S. and Japan representing a significant growth opportunity. The first of these products is AMDS. As mentioned, we're pleased with the ongoing U.S. launch of AMDS following our recent H.D. approval in late 24. As a reminder, there are three steps to each center must complete before implanting an AMDS as part of the AMDS launch process. First, each hospital needs to receive a site-wide RRB approval except in the case of an emergency use. Second, we need to have AMDS approved by the Hospital Value Analysis Committee or the VAC. And third, surgeons must be trained on this device. Reception to the launch has remained extremely encouraging with more hospitals progressing through the IRB and VAC approval process. As expected, AMDS revenue grew meaningfully on a sequential basis in Q2, reflecting strong early demand and revenue from initial stocking orders. Meanwhile, feedback from physicians already using the device has been overwhelmingly positive. Overall, we're encouraged by the early commercial traction of AMDS as we begin to tap into what we estimate to be 150 million annual market opportunity with limited competitive alternatives. In addition, BioGlue grew 4% on a constant currency basis compared to the same period last year, and we continue to see growth with the product in all of our major markets. Lastly, tissue processing, which has been the category most heavily impacted by last year's cyber event, increased 3% year over year on a constant currency basis in Q2. As a reminder, a significant portion of our tissue revenues come from our synagogue pulmonary valve for which demand outstrips supply every quarter, and therefore we hold no inventory. Due to extended lead times for tissues that were in process to receive during the period impacted by the cyber security event, there is a backlog of product that has not yet been released. Since last quarter, we've continued to make progress in reducing the backlog and remain on track to clear it by the end of the third quarter. Looking ahead, we are confident that our tissue business can be a -single-digit grower for the full year of 2025 and over the long term. I'll now turn to the pipeline. In July, we received an investigational device exemption approval or ID approval from the FDA to begin our U.S. Pivotal Trial for Arcevo LSA. This is our third generation frozen elephant trunk used to replace the entire aortic arch. The trial will evaluate the safety and effectiveness of Arcevo in the treatment of acute and chronic arch pathologies and will enroll 132 patients in up to 30 sites. We are optimistic that the trial will be successful, which is supported by the positive clinical results from our current generation frozen elephant trunk called Aveda Open NEO. We look forward to providing additional updates on future calls as we prepare to launch the trial by year end. While the HD enabled us to commercially distribute AMDs in the U.S. prior to receipt of the PMA, we continue to focus on securing the PMA for AMDs. Last quarter, we were pleased to have been informed by the FDA that it completed its review of our manufacturing and quality management system modules. To date, we've already filed three of the four modules and we're keeping our, this keeps us on track for an FDA approval in mid-2026. Lastly, on our pipeline, assuming we acquire EndoSpan, Nexus remains on track for approval in the second half of 2026. As I spoke about during the Q1 call, EndoSpan presented its late breaking 30-day data from the Nexus USIDE trial at AETS in early May. This is the first FDA trial for an endovascular treatment of chronic dissections in the aortic arch focused on patients at high risk for open surgery. The data indicated the trial would meet its protocol-defined primary endpoints of a 63% reduction in major adverse events relative to the comparators. In our conversations with physicians at AETS, surgeons were generally impressed with the 30-day result and were extremely positive. Surgeons were particularly pleased with the performance across stroke and renal endpoints, which was quite favorable compared to published data for alternative endovascular treatments. Overall, it was a great quarter. We accelerated our top-line growth rate for both onyx and stents to over 20%. We hit another significant milestone in our pipeline execution with our CYD approval, and we significantly improved our capital structure by eliminating approximately $100 million of convertible debt. We're excited about our progress to date in 2025 and are confident in our ability to deliver sustainable double-digit revenue growth, drive EBITDA margin expansion, and grow adjusted EBITDA twice the rate of constant currency revenue growth. With that, I'll now turn the call over to Lance.

Thanks, Pat, and good afternoon, everyone. Before I begin, I'd like to remind you to please refer to our press release published earlier today for information regarding our non-GAP results, including a reconciliation of these results to our GAP results. Additionally, all percentage changes discussed will be on a -over-year basis, and revenue growth rates will be in constant currency unless otherwise noted. Total revenues were $113 million for the second quarter of 2025, up over 14% compared to Q2 of 2024. Meanwhile, adjusted EBITDA increased approximately 33%, from $18.6 million to $24.8 million in the second quarter of 2025. Adjusted EBITDA margin was .9% in the second quarter of 2025, an approximately 300 basis point improvement over the prior year, driven by improvements in gross margin, leverage in SG&A, and timing of R&D spend. From a product line perspective, ONIX revenues increased 24%, stent grafts grew 22%, bio-glue grew 4%, and tissue processing revenues grew 3% in the second quarter of 2025. On a regional basis, revenues in North America increased 18%, Asia Pacific increased 15%, EMEA increased 10%, and Latin America increased 7%, all compared to the second quarter of 2024. Our as reported expenses included approximately $1.7 million in Q2 associated with the 2024 cybersecurity incident, which are excluded from adjusted EBITDA. While we have sought insurance reimbursement for some of these costs, the process will take some time. We will exclude any insurance proceeds we receive from adjusted EBITDA as well. Gross margins were .7% in Q2 compared to .6% in the second quarter of 2024. Non-GAAP gross margins were .1% in Q2 2025, reflecting a 50 basis point increase from 2024, due primarily to favorable mix from AMDS HDE revenues in the US and exceptional ONIX growth, particularly in the US. General administrative and marketing expenses in the second quarter were $57.7 million compared to $49.3 million in the second quarter of 2024. Non-GAAP general administrative and marketing expenses were $53.4 million or .2% of sales in the second quarter compared to 47.3 million or .2% of sales in the second quarter of 2024, reflecting a 100 basis point improvement while funding our AMDS HDE launch costs. R&D expenses for the second quarter were $7.1 million compared to $7.5 million in the second quarter of 2024, reflecting timing of clinical expenses. Interest expense net of interest income was $7.2 million as compared to $8 million in the prior year. Other income and expense this quarter included foreign currency translation gains of approximately $4.5 million. Free cash flow was $11.7 million in the second quarter of 2025. As Pat mentioned, during the quarter, we took action to significantly de-leverage our balance sheet by retiring our convertible senior notes due 2025. As we announced in May, we successfully completed exchange agreements to convert approximately $99.54 million principal amount for an aggregate of 4.3 million shares of common stock. Approximately $460,000 in aggregate principal amount remained outstanding as of June 30 and was settled with approximately 20,000 shares of common stock at maturity on July 1. Turning to cash and liquidity, we ended the quarter with approximately $53.5 million in cash and $215.6 million in debt net of $4.9 million of unamortized loan origination costs. We do not anticipate the need to raise additional capital to fund our debt obligations, our investments in our channels, or our pipeline in the foreseeable future. At the end of the second quarter, our net leverage ratio was 2.2, down from 4.1 in the prior year. And now for our outlook for the remainder of 2025. Given our momentum in the first half of the year, we are raising the midpoint of our full year 2025 revenue guidance and now expect constant currency growth between 12 and 14% compared to the previous range of 11 to 14%. We expect reported revenues to be in the range of $435 to $443 million compared to our previous range of $423 to $435 million, reflecting greater confidence in our overall growth outlook and an adjustment to our foreign currency assumptions for the second half of the year. This guidance range reflects our current estimate the full year 2025 currency impact will be approximately flat to 2024. Given our strong top line revenue growth and success with general expense management through the first half of the year, we are also raising the midpoint of our full year adjusted EBITDAI guidance. We now expect adjusted EBITDAI to be in the range of $86 to $91 million compared to $84 to $91 million for the full year 2025, representing a 21 to 28% growth over 2024 and approximately 200 basis points of adjusted EBITDAI margin expansion at the midpoint of our ranges. This guidance reflects a second half revenue growth rate of 17% at the midpoint. A 2.5 percentage point higher than Q2, driven primarily by the expected normalization of our remaining preservation services backlog in Q3 and the continued sequential growth of AMDS HDE revenues in the US. With that, I will turn the call back to Pat for his closing comments.

Thanks, Lance. So to conclude, we're very pleased with our second quarter performance, which we believe reflects the strength of our highly differentiated and highly defendable product portfolio. We continue to deliver meaningful top and bottom line growth, advance our robust pipeline, and enhance our balance sheet. We remain confident in our ability to deliver double digit revenue growth at two times the growth of EBITDAI as we expand our presence across markets with limited competition and leverage our existing global infrastructure and cross selling capabilities. More specifically, we expect future growth to be driven by the following key initiatives. First, the AMDS HDE launch. We're in the middle of commercializing AMDS in the US and starting to penetrate the $150 million annual market opportunity. Second, ONIX heart valve data. We are marketing the JAK, which is the Journal of American College of Cardiology clinical data, showing a mortality benefit in patients under 60 years of age compared to bioprosthetic or tissue valves. This is a new $100 million annual market opportunity that we will be pursuing with the only mechanical ERT card valve that can be maintained at an INR of 1.5 to 2.0. Third, the Nexus PMA positive 30 day data from Andispan's Triumph trial. Andispan remains on track for PMA approval the second half of 2026. This data presented in May would, assuming if we exercise our option to acquire Andispan, bring us one step closer to being able to access the annual market opportunity of $150 million. And fourth, the Arcebo LSA IDE approval. We're preparing to launch the USID trial for our third generation frozen elephant trunk for the treatment of acute and chronic sections in the aorta. Finally, I want to thank all of our employees around the globe for the continued dedication to our mission of being a leading partner to CERDN's focus on aortic disease. With that, operator, please open the line for questions.

At this time, we will conduct the question and answer session. If you would like to ask a question, please press star, then the number one on your telephone keypad now, and you will be placed in the queue in the order received. Once again, to ask a question, press star, then the number one on your telephone keypad now. Your first question comes from Bill Plovonic with Conocord Chinoity. Your line is open.

Great. Thanks. Thanks for taking my question. Good evening. Just really want to just focus in on the AMDS. I think last quarter you had made the comment regarding 150 hospitals actively seeking IRB and VAC. Kind of where are you in that process? Have you added more accounts? Because I think there's 600 total. And are there other KPIs that you're looking at? And then just secondly, I think really interestingly, you talked about the cross selling. I wonder if you could expand on that. What products are they picking up? What type of penetration rates are you seeing on those training sessions? Anything to help us kind of give us some color on how that may impact the rest of the business? Thanks.

Bill, this is Lance. Maybe I'll address the metrics question and let Pat talk about how things are going. So, you know, last quarter we did give some non-financial metrics to try and give everyone some feel for how the launch was going early on, particularly given that revenue was pretty minimal. I think we tried to be clear with people to not necessarily expect us to continue to give that every quarter and we didn't give it this quarter. I will say that our pipeline is continuing to build and those metrics had I given them would be larger this quarter than they were last quarter. We'd probably leave it at that. And then I'll let Pat talk about how the launch is going.

Yeah, so, you know, it also just a correction. There's about a thousand accounts that you mentioned 600. I think on previous calls we've commented that about 80% of the, you know, 75% of the volume is in the top 600 centers. But there's about a thousand accounts that do acute type A's in the U.S. As far as your question about cross selling, you know, we're doing trainings every month where we bring, you know, up to 20 surgeons to these centers to learn. It's a one day program to learn how to implant the AMDS. And, you know, we're obviously building relationships with those customers. Some are existing customers, some are customers we haven't, you know, they may buy BioGoo, but may not buy our Onyx valve. And as they get to understand the AMDS technology, and then they understand the Onyx technology and the new data, we've literally had customers leave the AMDS training and start using Onyx when they get back to their hospital. So, you know, we thought there'd be some cross selling benefit. It was a little more profound than I thought it would be kind of as quickly as that.

Great, thanks. And then if I can ask one more, I will. It's just BioGoo in China. There wasn't really any commentary on that. Just wondering if you could give us an update there. And thanks again for taking my questions.

Yeah, so when we talked about the launch of BioGoo, we said it was really a second half 2025. Given the, you know, all the kind of hoops you have to jump through with the provinces and the hospital contracts, etc. So, you know, we should start seeing BioGoo in the second half of this year. So we really haven't talked more about it than what we've previously put out.

Your next question comes from John McCully with Stiefel. Your line is open.

Hi, Pat and Lance. Congrats on the strong 2Q performance. Just wanted to start off on guidance. There's a few moving pieces. Just want to make sure I have this right. There's currencies moving towards flat impact for the year. There was 2Q outperformance, but you're also feeling pretty strongly about 2Q25. Could you just talk through how all those dynamics are impacting the updated guidance?

Yeah, I think, you know, high level simple way to think about it is if you look at the second quarter, you know, we had given people a midpoint expectation of 13% constant currency growth for second quarter. We came in at 14 and a half. So obviously that was above that. That was good underlying strength. Our currency assumption also turned out to be conservative for the second quarter, which I'm sure people have seen that what the Euro and dollar in particular has done. And so that drove some of the outperformance in Q2 on an as reported, you know, top line revenue number. And then at this point, you know, I think we needed to just acknowledge that currencies moved in a pretty positive way and go ahead and build a little bit of that into our guidance for the second half. So that those are at a high level, the moving pieces, but you can see we also moved up our full year expectation for constant currency revenue to 12 to 14%.

That's helpful. And I wanted to follow up on AMD. Yes, I know Bill just asked about it, but we recently done some checks in that space and just wanted to get your sense on physician adoption and utilization. We've heard is that once doctors get this in their hands, they're not really feeling a sense of caution that it's a new device. They're excited about it and they're sort of immediately integrating it into their practices. Can you just talk about what you're seeing from that dynamic or physicians steadily ramping or they adopt you immediately? Any thoughts there would be helpful. Thanks.

Yeah, so I think I think one of the we've kind of reiterated this on previous calls. I think one of the real advantages of a NBS is it's a simple, elegant solution to this problem. It solves a big clinical problem for patients, which is mal perfusion. We were hearing case after case of, you know, patients coming in with, you know, mal perfusion based and blood's not flowing where it's supposed to go with with legs not showing up on MRIs. Or CT scans, you know, no blood flow and then they put an NBS into the patient's got blood flow back to their legs. So it's an amazing device, but it's super simple. We do a one day training. We want to make sure we're very clear about people how to size it, how to implant it. But after that, it's super simple. It's easy. And, you know, I think that's one of the real benefits is that, you know, every aortic surgeon in the US or a surgeon that puts aortic valves and can use this device and be and it can be effective for them. So, you know, unlike some technologies that are super complicated to use, this is not one of them. And I think that's going to be one of the real benefits of the product going forward.

Thanks

for taking the questions. Your next question comes from Frank Tuckinen with Lake Street Capital. Your line is open.

Hey, this is not for Frank and thanks for taking questions and congrats on all the progress here. Obviously, we've talked in the past about NBS and future launches kind of layering onto the existing sales force. Maybe just talk a bit more about that. I think the last I saw was the 55 person commercial team handling the ramps. Correct me if I'm wrong there. But I understand it's still early innings, but any incremental targeted expansion that you're looking at kind of now or is that something you'd maybe take on with PMA approval?

Yes, so, you know, we've talked previously. I mean, we don't really see a huge difference with the PMA approval. I mean, other than not having to get an IRB. But I think the point you bring up is a good one. Right. So I mentioned earlier on the on the first question, there's about a thousand centers that do AMDS implant that can do an AMDS. They do acute type A dissection surgery. You know, we're pretty strong. Our team of 50 plus reps is pretty strong in the top 600 centers. We sell things in all 1000, but it's not the last 400 aren't exactly a top focus for us. So that is something we're evaluating maybe in the second phase of the launch, but we're not going to get into specifics on this call. We talk about that more when it happens down the road.

Okay, makes sense. Thank you. And then on our C, vote, maybe just walk us through kind of the next steps there with ID approval in hand. And I heard you say you expect to start that trial kind of a year end, but maybe just any additional color you can provide there on timelines or anything. So,

thanks. Yeah, so we, we're super excited to get the approval. So we got the approval. Now it's just like any clinical trial in the medical device space. We've got to get contracts with the hospital. We have to get an IRB with the hospital for the trial. You know, we've already got devices, you know, sterile devices coming in. So, you know, it's really just how long it takes us to get through the contracting and the IRBs at the hospitals. And, you know, we expect to enroll our first patient before the end of the year.

Perfect. All right. Thanks again, guys. Congrats.

Your next question comes from Siraj call you with Oppenheimer. Your line is open.

Hey, hey, Lance. This is Jacob on for storage. Thanks for taking the questions and congrats on the quarter. So just wanted to start off with your guide to adjusted. Even Doug groaning about twice as fast as the top line, which suggests a shift and mix. Could you help break down what's driving that leverage? And I guess. More specifically, what's the expected contribution from the MDS launch on gross margin expansion and how creative do you see that being over time?

Yes, I think things are playing out the way we expected at the beginning of the year. We talked about, you know, the EVA margin kind of coming from both SG&A leverage, but also that we thought we could get about a point of gross margin expansion this year, primarily due to mix. And so far that's, you know, we're starting to see that play out. We had about 50 basis points of gross margin expansion this quarter early on in the launch. So we do think that that can drive gross margin expansion going forward, which can be another enabler for EVA margin expansion. You know, this year we are making sure that we invest every dollar we need to in this launch to make sure it gets off to a great start. So it's probably not quite as much drop through. But if you look in the outer years, I mean, this is an extremely high gross margin product that's being sold through the exact same sales force. So we expect it to be a significant contributor to EVA in the future.

Yeah, no, that's very helpful. And then just on ONX, so it's been a consistent gross driver for the past few years. How stable is that business looking ahead? And really, on that note, can you provide any directional color on what's embedded in the guide for ONX and the StentGraph portfolio?

Yeah, I'll take the first part. You know, we've ever since we launched the low INR for the ONIX valve, which was when we acquired the company back in 2016, we've consistently grown that business double digits. I think the CAGR over the last seven or eight years is like 12 or 13 percent. You know, I talked about on the last call that we've got a bunch of things going in our favor. We've got the only indication for low INR. We've got the AMDs launch with the cross selling opportunities I just mentioned earlier. We've got the five year post approval data that shows an 87 percent reduction in major bleeding. And then there was a paper presented at STS in January showing if you get a mechanical valve under the age of 60, you have a mortality benefit versus a tissue valve. So we haven't even started marketing that to cardiologists and the business is growing over 20 percent. So we're seeing a kind of an acceleration of ONIX based on all those factors. And we're not going to break out what we're thinking for in the back half. We have the segments we report against. But it's been obviously very robust.

Yeah, and I think on the guidance thing, you know, we're not going to get into the nitty gritty on what's the change. But, you know, at the beginning of the year, we laid out kind of our standard set of parameters of how we think about the different product lines growing longer term with kind of bioglue and tissue as a mid single digit growth rate businesses and ONIX as a low double digit and stent graphs before taking into account AMDs. And then we've seen that the performance in the U.S. is kind of a mid teens business and then, you know, U.S. AMDs adding incremental growth over that. And then, you know, since then, we moved our midpoint up twice, you know, in both of the first and second quarter call. And I think I would just say, you know, definitely the ONIX performance in the U.S. in the strength we're seeing in that business is definitely a big contributing factor to our ability to raise the midpoint.

Your next question comes from Mike Mattson with Needham. Your line is open.

Hey, guys. How are you doing today? This is Joseph from Mike. Maybe to just start off with ONIX. I mean, you guys called out stocking orders for AMDs. I was curious if there was any kind of one timers that affected ONIX in the quarter. As you said, there was, you know, cross selling. You guys are seeing cross selling opportunities with AMDs and ONIX. So just wondering, yeah, if there's any one timers in that ONIX or, you know, is this all data and, you know, awareness driven?

Yeah. So the fastest growing, the biggest market and the fastest growing market is in the U.S. And we don't, we don't do any bulk deals. We don't do any, you know, kind of individual sales. It's all off consignment and use. So the big chunk of that growth rate is coming off implants.

Okay. Okay. Perfect. And then maybe just a quick one on the artisan trial. Appreciate the color you guys have given so far. I'm just curious, maybe a little bit more on the trial. What does, you know, follow up time look like? Is there any idea on, you know, when data readouts could be? And I guess just given, you know, the complexity of the procedure, does it take a while to train surgeons who opt into this trial? Has training like that already, you know, happened with you with, you know, with ArtiVion?

Yeah. So, so this is, you know, once again, it's a little bit like my comments on AMDS. I mean, one of our monitors at the company is to come up with simple, elegant solutions that improve outcomes. AMDS is kind of a poster of that. The Arcevo device, which is the trial called Artisan, it's the first frozen elephant trunk device that has a branch subclavian feature on it. That's going to make the procedure easier. So it's important to note all the surgeons in this trial already perform frozen elephant trunk operations. They use a competitive device. We think ours will be easier to use faster and provide better outcomes. So we don't think that is a, you know, there'll be some, there'll some be hands on training because they have to get familiar with our delivery system and the new device, but it's, it's really not a huge training lift. So we expect this trial to ramp pretty quickly.

Okay, thanks very much and congrats on the quarter. You guys are very strong.

Your next question comes from Destiny Hance with Leidenberg-Fallman. Your line is open.

Hey, thank you for taking the questions. Just one for us. I'm sorry if I missed it. So Sirius, if you could talk about some pricing trends and if you're seeing any changes in pricing and power there.

Yeah, so Destiny, your question was just an overall question about pricing environment and what we're seeing. Is that correct?

Yes, please.

Yeah, I mean, we've talked about this before. I mean, the nature of our devices is, you know, they're, they're generally life saving and not super high volume from a individual line. I'm in the hospital. And, you know, because of that, we typically have not seen price pressure and have really had an ability to drive, you know, modest inflationary type price increases consistently over time. And, you know, that continues to be the case. Now, I know in previous years, we've had some kind of exceptionally large price increases in individual products. We don't really have any of that going on at the moment. This is really more volume driven with just kind of normal inflationary price benefit.

Great. Thank you. I appreciate it.

Your next question comes from Dan Stouter with Citizens JMP. Your line is open.

Yeah. Hey, great. Thanks for the questions. I just had a few quickly. So following up on the ONIX growth, it's been talked a lot about, but just wanted to try to get a sense of how much of it was due to those cross-selling benefits. It seems like the business is still really strong beyond that, but could you give us any color on how much of the quarter's contribution was from new accounts from that halo effect with AMDS? And, you know, maybe if you have any metrics on higher utilization for ONIX, that would, that would be really helpful. Thank you.

Yeah, so we're not going to get into the nitty gritty on utilization, but I will say definitely there was a meaningful uptick from new accounts. Now, is that due to cross-selling or due to the new data or combination of both? Like that's really hard to tease out, but it's not just increased utilization in our existing customer base. It is definitely also driven by new customers.

Okay, that's great. And then just one follow up on free cash flow. Great improvement during the quarter. I just wanted to get a sense of how we should be thinking about it for the back half of 25. Any cadence we should keep in mind and any more notable cash items that we should be thinking about for the rest of the year.

Thanks. Yeah, I will say, you know, timing of cash can make things fluctuate quarter to quarter. But, you know, what we've said consistently and we still say that we expect to be positive for the full year. We did have a really good quarter this year, this quarter, which we needed to because some of that was catch up from Q1. I would say year to date, we feel like we're in a pretty good spot to deliver on our objective of being free cash flow positive for the full year. Great. Thanks for the questions

and great quarter.

Thanks.

Mr. Mackin, there are no further questions at this time. I would like to turn the floor back over to management for closing remarks.

Well, thanks for attending. Again, we're super excited about the quarter. We appreciate you all joining. We've got a lot of momentum. We're growing double digits. We're going twice as fast on the bottom line. We're generating cash. We've delivered and we've got a lot of growth drivers. We talked about a new clinical trial starting. So, you know, we're super excited and look forward to reporting out again next quarter.

This concludes today's call. Thank you for attending and have a wonderful rest of your day.