Vericel Reports Third Quarter 2026 Financial Results and Raises Full-Year Financial Guidance
Nine-month net income reached $10.065 million, compared with a $6.725 million loss a year earlier.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Vericel (NASDAQ: VCEL) reported third-quarter 2026 revenue of $85.4 million and raised its full-year revenue and adjusted profit-margin guidance. Revenue increased 26% year over year. Net income rose 179% to $14.2 million, or $0.27 per diluted share, versus $0.10 a year earlier. MACI revenue grew 21% to $67.4 million, while Burn Care revenue rose 52% to $18.0 million.
Adjusted EBITDA, a non-GAAP profit measure, increased 48% to $25.2 million, with a 30% margin versus 25%. Gross margin remained 73%. Vericel raised its 2026 revenue outlook to $344–$346 million from $330–$340 million and its adjusted EBITDA margin outlook to 28% from 27%. Quarterly operating cash flow fell to $17.723 million from $22.082 million. Cash and investments totaled $235.6 million, with no debt. Vericel repurchased $8.8 million of shares and remains on track for a potential MACI launch in the U.K. in 2027.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.2026 revenue guidance raised to $344–$346 million from $330–$340 million.
- Moderate pointThird-quarter revenue increased 26% year over year to $85.4 million.
- Moderate pointThird-quarter net income increased 179% to $14.2 million; diluted EPS rose to $0.27 from $0.10.
- Moderate point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EBITDA margin guidance raised to 28% from 27%.
- Moderate pointThird-quarter adjusted EBITDA increased 48% to $25.2 million; margin rose to 30% from 25%.
- Moderate pointNine-month net income reached $10.065 million versus a $6.725 million loss; diluted EPS was $0.19 versus $(0.13).
- Moderate pointNine-month operating cash flow increased to $50.297 million from $36.896 million a year earlier.
- Moderate pointNine-month free cash flow increased to $45.066 million from $11.921 million a year earlier.
18 minor points
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 MACI revenue guidance raised to $290–$292 million from $284–$290 million.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 Burn Care revenue guidance raised to $54 million from $46–$50 million.
- Minor point. Forward-looking: it has not happened yet and may not happen.Full-year gross margin guidance reaffirmed at approximately 75%.
- Minor pointThird-quarter MACI revenue grew 21% to $67.4 million, its sixth consecutive quarter with growth of at least 20%.
- Minor pointThird-quarter Burn Care revenue rose 52% to $18.0 million, its highest quarterly revenue to date.
- Minor pointThird-quarter Epicel revenue increased 23% year over year to $12.7 million, its highest quarterly revenue since launch.
- Minor pointThird-quarter NexoBrid commercial revenue reached $2.3 million, up 54% year over year and 46% sequentially.
- Minor pointBARDA procurement revenue contributed $3.0 million in the third quarter.
- Minor pointThird-quarter operating income increased to $12.186 million from $3.450 million a year earlier.
- Minor pointNine-month revenue grew 26% year over year to $231.3 million.
- Minor pointNine-month MACI revenue increased 22% year over year to $189.3 million.
- Minor pointNine-month Burn Care revenue increased 50% year over year to $42.0 million.
- Minor pointNine-month adjusted EBITDA grew 48% year over year to $49.6 million.
- Minor pointCash and investments totaled $235.6 million at September 30, 2026, with no debt.
- Minor pointShare repurchases totaled 220,744 shares for $8.8 million; $191.2 million of authorization remained at September 30, 2026.
- Minor pointMACI activity set third-quarter records for biopsies, implants, and biopsy and implanting surgeons.
- Minor pointMACI Arthro cases reached their highest quarterly number since launch.
- Minor point. Forward-looking: it has not happened yet and may not happen.Potential U.K. MACI launch remains on track for 2027, the company said.
Negative
- Minor pointThird-quarter operating cash flow declined to $17.723 million from $22.082 million a year earlier.
- Minor pointThird-quarter free cash flow declined to $15.681 million from $19.452 million a year earlier.
- Minor pointThird-quarter operating expenses increased to $50.424 million from $46.135 million a year earlier.
- Minor pointNine-month operating expenses increased to $163.722 million from $143.842 million a year earlier.
Key Figures
- Q3 total revenue
- $85.4 million (+26%)
- Third quarter 2026
- Q3 net income
- $14.2 million (+179%)
- Third quarter 2026
- Q3 adjusted EBITDA
- $25.2 million (+48%; 30% of revenue)
- Third quarter 2026
- Full-year revenue guidance
- $344–$346 million
- Raised from $330–$340 million previously
- MACI revenue guidance
- $290–$292 million
- Raised from $284–$290 million previously
- Burn Care revenue guidance
- $54 million
- Raised from $46–$50 million previously
- Adjusted EBITDA margin guidance
- 28%
- Raised from 27% previously
- Cash and investments
- $235.6 million; no debt
- Third quarter 2026
Previous Earnings Reports
-
Q1 results accompanied a revenue-guidance increase to $326–$336 million.
-
Q2 results raised 2026 revenue guidance to $330–$340 million.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
gaap financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Total Revenue Growth of
Net Income Increased
Adjusted EBITDA Margin of
Raised Full-Year Revenue Guidance to
Conference Call Today at 8:30am Eastern Time
BURLINGTON, Mass., Nov. 05, 2026 (GLOBE NEWSWIRE) -- Vericel Corporation (NASDAQ:VCEL), a leader in advanced therapies for the sports medicine and severe burn care markets, today reported financial results and business highlights for the third quarter ended September 30, 2026.
Third Quarter 2026 Financial Highlights
- Total net revenue growth of
26% to$85.4 million - MACI® net revenue growth of
21% to$67.4 million - Burn Care net revenue growth of
52% to$18.0 million , with Epicel® revenue of$12.7 million and NexoBrid® revenue of$5.3 million - Gross margin of
73% - Net income increased
179% to$14.2 million , or$0.27 per diluted share - Non-GAAP adjusted EBITDA increased
48% to$25.2 million , or30% of revenue - Operating cash flow of
$17.7 million - Free cash flow of
$15.7 million $235.6 million in cash and investments, and no debt
Year-to-Date 2026 Financial Highlights
- Total net revenue growth of
26% to$231.3 million - MACI net revenue growth of
22% to$189.3 million - Burn Care net revenue growth of
50% to$42.0 million - Adjusted EBITDA growth of
48% to$49.6 million - Operating cash flow of
$50.3 million - Free cash flow of
$45.1 million
Business Highlights and Updates
- Record third quarter total revenue and MACI revenue, and the highest quarterly Burn Care revenue to date
- MACI revenue growth of
20% or more for the sixth consecutive quarter - Highest Epicel quarterly revenue since launch, which increased
23% versus the prior year - Highest NexoBrid quarterly commercial revenue since launch, with
54% growth versus the prior year and46% growth versus the prior quarter - Recognized
$3.0 million of BARDA procurement revenue in the third quarter - Record third quarter MACI biopsies, implants and biopsy and implanting surgeons, with biopsy growth increasing each quarter this year compared to the prior year
- Highest number of MACI Arthro cases in any quarter since launch in the third quarter
- The Company remains on track for a potential MACI launch in the U.K. in 2027
- Repurchased 220,744 shares of common stock for
$8.8 million during the quarter, with$191.2 million of share repurchase authorization remaining as of September 30, 2026
“The Company delivered outstanding financial and business results in the third quarter as we continue to generate top-tier revenue and profit growth as well as significant free cash flow, while also returning capital to shareholders,” said Nick Colangelo, President and CEO of Vericel. “Given our third quarter outperformance and the strong start to the fourth quarter for both commercial businesses, and particularly for MACI, we believe that the Company is very well-positioned for a strong close to 2026 and to sustain this momentum in 2027 and beyond.”
2026 Full-Year Financial Guidance
- Raised total revenue guidance to
$344 t o$346 million , compared to$330 t o$340 million previously - Raised MACI revenue guidance to
$290 t o$292 million , compared to$284 t o$290 million previously - Raised Burn Care revenue guidance to
$54 million , compared to$46 t o$50 million previously - Raised adjusted EBITDA margin guidance to
28% , compared to27% previously - Reaffirmed full-year gross margin of approximately
75%
Third Quarter 2026 Results
Total net revenue for the quarter ended September 30, 2026 increased
Gross profit for the quarter ended September 30, 2026 was
Total operating expenses for the quarter ended September 30, 2026 were
Net income for the quarter ended September 30, 2026 was
Non-GAAP adjusted EBITDA for the quarter ended September 30, 2026 was
Conference Call Information
Today’s conference call will be available live at 8:30 a.m. Eastern Time. The live webcast can be accessed on the Investor Relations section of the Vericel website at http://investors.vcel.com/events-presentations. Presentation slides for the conference call will be available on the webcast and on the Vericel website. A replay of the webcast will be available until November 5, 2027.
To participate by telephone, dial 800-330-6730 or +1-312-471-1351 if connecting from outside the U.S. When connecting, please use passcode:787594.
About Vericel Corporation
Vericel is a leading provider of advanced therapies for the sports medicine and severe burn care markets. The Company combines innovations in biology with medical technologies, resulting in a highly differentiated portfolio of innovative cell therapies and specialty biologics that repair injuries and restore lives. Vericel markets three products in the United States. MACI (autologous cultured chondrocytes on porcine collagen membrane) is an autologous cellularized scaffold product indicated for the repair of symptomatic, single or multiple full-thickness cartilage defects of the knee with or without bone involvement in adults. Epicel (cultured epidermal autografts) is a permanent skin replacement for the treatment of patients with deep dermal or full thickness burns greater than or equal to
Epicel®, MACI® and MACI Arthro® are registered trademarks of Vericel Corporation. NexoBrid® is a registered trademark of MediWound Ltd. and is used under license to Vericel Corporation. © 2026 Vericel Corporation. All rights reserved.
GAAP v. Non-GAAP Measures
Vericel’s reported earnings are prepared in accordance with generally accepted accounting principles in the United States, or GAAP, and represent earnings as reported to the Securities and Exchange Commission (SEC). Vericel has provided in this release certain financial information that has not been prepared in accordance with GAAP. Vericel’s management believes that the non-GAAP adjusted EBITDA, which includes adjustments for specific items that are generally not indicative of our core operations, and free cash flow described in this release, provide additional information that is useful to investors in understanding Vericel’s underlying performance, business and performance trends, and helps facilitate period-to-period comparisons and comparisons of its financial measures with other companies in Vericel’s industry. However, the non-GAAP financial measures that Vericel uses may differ from measures that other companies may use. Non-GAAP financial measures are not required to be uniformly applied, are not audited and should not be considered in isolation or as substitutes for results prepared in accordance with GAAP.
Forward-Looking Statements
Vericel cautions you that all statements other than statements of historical fact included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. Although we believe that we have a reasonable basis for the forward-looking statements contained herein, they are based on current expectations about future events affecting us and are subject to risks, assumptions, uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Our actual results may differ materially from those expressed or implied by the forward-looking statements in this press release. These statements are often, but are not always, made through the use of words or phrases such as “anticipates,” “intends,” “estimates,” “plans,” “expects,” “continues,” “believe,” “guidance,” “outlook,” “target,” “future,” “potential,” “goals” and similar words or phrases, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may,” or similar expressions.
Among the factors that could cause actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to, uncertainties associated with our expectations regarding future revenue, growth in revenue, market penetration for MACI, MACI Arthro, Epicel, and NexoBrid in the U.S. and in applicable markets outside the U.S., growth in profit, gross margins and operating margins, the ability to continue to scale our manufacturing operations to meet the demand for our cell therapy products, the ability to sustain profitability, the expected target surgeon audience, potential fluctuations in sales and volumes and our results of operations over the course of the year, timing and conduct of clinical trial and product development activities, timing and likelihood of the FDA’s potential approval of the use of MACI to treat cartilage defects in the ankle, the timing and likelihood of obtaining marketing approval for MACI in the United Kingdom, the estimate of the commercial growth potential of our products and product candidates, competitive developments, changes in third-party coverage and reimbursement, including recent and future healthcare and drug pricing reform measures and private payor initiatives, surgeon adoption of MACI Arthro, physician and burn center adoption of NexoBrid, labor strikes, supply chain disruptions or other events or factors that might affect our ability to manufacture MACI or Epicel or affect MediWound’s ability to manufacture and supply sufficient quantities of NexoBrid to meet customer demand, including but not limited to conflicts in the Middle East region involving Israel or those related to disruptions of land or sea transportation routes or distribution or shipping channels, uncertainties associated with the potential benefits of the Company’s agreement with BARDA for the procurement and development of NexoBrid and the availability of funding from BARDA under that agreement, negative impacts on the global economy and capital markets resulting from the conflicts in Ukraine and Iran, as well as other hostilities in the Middle East, changes in trade policies and regulations, including the potential for increases or changes in duties, current and potentially new tariffs or quotas, lingering effects of adverse developments affecting financial institutions, companies in the financial services industry or the financial services industry generally, changes in governmental monetary and fiscal policies, including, but not limited to, Federal Reserve policies in connection with continued inflationary pressures, the impact from future regulatory, judicial and legislative changes affecting our industry or the broader market, including those included in the One Big Beautiful Bill Act, and a U.S. government shutdown.
These and other significant factors are discussed in greater detail in Vericel’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026, Vericel’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, filed with the SEC on November 5, 2026, and in other filings with the SEC. These forward-looking statements reflect our views as of the date hereof and Vericel does not assume and specifically disclaims any obligation to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date of this release except as required by law.
Investor Contact:
Eric Burns
ir@vcel.com
+1 (734) 418-4411
| VERICEL CORPORATION | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (in thousands, except per share amounts - unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Product sales, net | $ | 85,371 | $ | 67,503 | $ | 231,253 | $ | 183,341 | ||||||||
| Total revenue | 85,371 | 67,503 | 231,253 | 183,341 | ||||||||||||
| Cost of product sales | 22,761 | 17,918 | 62,975 | 50,870 | ||||||||||||
| Gross profit | 62,610 | 49,585 | 168,278 | 132,471 | ||||||||||||
| Research and development | 6,885 | 6,318 | 22,482 | 20,310 | ||||||||||||
| Selling, general and administrative | 43,539 | 39,817 | 141,240 | 123,532 | ||||||||||||
| Total operating expenses | 50,424 | 46,135 | 163,722 | 143,842 | ||||||||||||
| Income (loss) from operations | 12,186 | 3,450 | 4,556 | (11,371) | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 2,152 | 1,808 | 5,957 | 5,122 | ||||||||||||
| Interest expense | (160) | (158) | (480) | (468) | ||||||||||||
| Other (expense) income | (17) | (26) | 32 | (8) | ||||||||||||
| Total other income | 1,975 | 1,624 | 5,509 | 4,646 | ||||||||||||
| Net income (loss) | $ | 14,161 | $ | 5,074 | $ | 10,065 | $ | (6,725) | ||||||||
| Net income (loss) per common share: | ||||||||||||||||
| Basic | $ | 0.28 | $ | 0.10 | $ | 0.20 | $ | (0.13) | ||||||||
| Diluted | $ | 0.27 | $ | 0.10 | $ | 0.19 | $ | (0.13) | ||||||||
| Weighted-average common shares outstanding: | ||||||||||||||||
| Basic | 51,186 | 50,489 | 51,013 | 50,256 | ||||||||||||
| Diluted | 52,962 | 51,908 | 52,459 | 50,256 | ||||||||||||
| VERICEL CORPORATION | ||||||||||||||||
| RECONCILIATION OF REPORTED NET INCOME (LOSS) (GAAP) | ||||||||||||||||
| TO ADJUSTED EBITDA (NON-GAAP MEASURE) | ||||||||||||||||
| (in thousands - unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net income (loss) | $ | 14,161 | $ | 5,074 | $ | 10,065 | $ | (6,725) | ||||||||
| Stock-based compensation expense | 7,823 | 8,699 | 28,200 | 30,344 | ||||||||||||
| Depreciation and amortization | 3,627 | 2,944 | 10,514 | 8,456 | ||||||||||||
| Net interest income | (1,992) | (1,654) | (5,485) | (4,658) | ||||||||||||
| Pre-occupancy lease expense and tech transfer | 1,604 | 1,933 | 6,349 | 6,180 | ||||||||||||
| Adjusted EBITDA (Non-GAAP) | $ | 25,223 | $ | 16,996 | $ | 49,643 | $ | 33,597 | ||||||||
| VERICEL CORPORATION | ||||||||||||||||
| RECONCILIATION OF FREE CASH FLOW (NON-GAAP MEASURE) | ||||||||||||||||
| (in thousands - unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net cash provided by operating activities | $ | 17,723 | $ | 22,082 | $ | 50,297 | $ | 36,896 | ||||||||
| Capital expenditures | (2,042) | (2,630) | (5,231) | (24,975) | ||||||||||||
| Free cash flow (Non-GAAP) | $ | 15,681 | $ | 19,452 | $ | 45,066 | $ | 11,921 | ||||||||
| Net cash used in investing activities | $ | (2,708) | $ | (3,377) | $ | (9,729) | $ | (27,547) | ||||||||
| Net cash (used in) provided by financing activities | $ | (6,880) | $ | 1,166 | $ | (7,167) | $ | 6,005 | ||||||||
| VERICEL CORPORATION | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (in thousands - unaudited) | ||||||
| September 30, | December 31, | |||||
| 2026 | 2025 | |||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 133,493 | $ | 100,092 | ||
| Short-term investments | 36,775 | 37,407 | ||||
| Accounts receivable (net of allowance for doubtful accounts of | 81,798 | 84,634 | ||||
| Inventory | 17,056 | 17,560 | ||||
| Other current assets | 11,648 | 7,744 | ||||
| Total current assets | 280,770 | 247,437 | ||||
| Property and equipment, net | 105,079 | 108,397 | ||||
| Intangible assets, net | 5,156 | 5,625 | ||||
| Right-of-use assets | 60,590 | 64,774 | ||||
| Long-term investments | 65,336 | 61,395 | ||||
| Other long-term assets | 179 | 341 | ||||
| Total assets | $ | 517,110 | $ | 487,969 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 19,958 | $ | 15,828 | ||
| Accrued expenses | 20,391 | 19,236 | ||||
| Current portion of operating lease liabilities | 14,254 | 13,969 | ||||
| Other current liabilities | 116 | 116 | ||||
| Total current liabilities | 54,719 | 49,149 | ||||
| Operating lease liabilities | 76,319 | 82,284 | ||||
| Other long-term liabilities | 1,900 | 1,896 | ||||
| Total liabilities | 132,938 | 133,329 | ||||
| Total shareholders’ equity | 384,172 | 354,640 | ||||
| Total liabilities and shareholders’ equity | $ | 517,110 | $ | 487,969 | ||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Vericel's third-quarter 2026 revenue and earnings?
Vericel reported $85.4 million in revenue, up 26% year over year, and net income of $14.2 million, up 179%. Diluted earnings per share were $0.27, compared with $0.10 in the third quarter of 2025.
What is Vericel's updated full-year 2026 guidance?
Vericel expects $344–$346 million in revenue and a 28% adjusted EBITDA margin, up from $330–$340 million and 27%, respectively. MACI revenue guidance is $290–$292 million, and Burn Care revenue guidance is $54 million. Full-year gross margin guidance remains approximately 75%.
Why did Vericel's third-quarter 2026 operating expenses increase?
Vericel attributed the increase primarily to higher headcount and related employee expenses, including the MACI sales force expansion, and increased marketing programs. Third-quarter operating expenses were $50.424 million, compared with $46.135 million a year earlier.