LeMaitre Vascular, Inc. — Q3 2026 Earnings Summary

Financial Performance:

• Q3 2026 sales reached $68.0 million, representing an 11% year-over-year increase and 12% organic growth compared to Q3 2025.
• Gross margin was 71.7%, a decrease of 360 basis points year-over-year, but an increase of 90 basis points versus adjusted figures.
• Operating expenses totaled $31.0 million, up 21% year-over-year and 18% versus adjusted figures.
• Operating income was $17.7 million, down 13% year-over-year, but up 5% versus adjusted figures.
• Operating margin stood at 26%.
• Diluted earnings per share (EPS) were $0.65, a 14% decrease year-over-year, but a 5% increase versus adjusted figures.
• Cash and cash equivalents increased sequentially by $13.5 million to $390 million as of September 30, 2026.
• For the nine months ended September 30, 2026, net sales were $204.9 million, net income was $47.8 million, and diluted EPS was $2.07.
• Adjusted EBITDA for Q3 2026 was $20.5 million, a 7% increase year-over-year.

Guidance and Future Outlook:

• Q4 2026 sales guidance is $69.9 million to $71.9 million (midpoint $70.9 million), implying 10% total growth and 11% organic growth.
• Full year 2026 sales guidance is $274.8 million to $276.8 million (midpoint $275.8 million), implying 11% total growth and 11% organic growth.
• Q4 2026 gross margin guidance is 72.1%; full year 2026 gross margin guidance is 72.1%.
• Q4 2026 operating income guidance is $18.8 million to $20.2 million (midpoint $19.5 million), implying 4% growth.
• Full year 2026 operating income guidance is $74.6 million to $76.1 million (midpoint $75.4 million), implying 11% total growth and 17% adjusted growth.
• Q4 2026 operating margin guidance is 27%; full year 2026 operating margin guidance is 27%.
• Q4 2026 EPS guidance is $0.70 to $0.75 (midpoint $0.73), implying 7% growth.
• Full year 2026 EPS guidance is $2.77 to $2.82 (midpoint $2.80), implying 11% total growth and 18% adjusted growth.
• Management expects 2026 to be a year of healthy sales growth (+11%) and EPS growth (+18%).
• Biologics are expected to continue driving sales through the international launch of Artegraft and growth of RestoreFlow Allografts.
• The acquired B. Braun products are expected to record approximately $150,000 in Q4 2026 sales with a break-even operating income impact.

Business Segments and Product Lines:

• Graft sales increased 20% and shunt sales increased 14% during Q3 2026.
• Artegraft sales increased 18%.
• Organic growth of 12% was comprised of 7% price increases and 5% unit growth.
• Geographic sales growth in Q3 2026: EMEA +18%, Americas +9%, APAC +5%.
• Headcount increased 7% to 678 as of September 30, 2026; sales representative count increased 13% to 171.
• In October, the company acquired certain vascular assets from B. Braun for $19.2 million, including polyester and silver-coated grafts, valve cutters, and vein strippers.
• The acquired B. Braun assets recorded $9.4 million in sales in 2025, all outside North America.
• Sales from the acquired assets will transition into LeMaitre's channel over the next 18-24 months as B. Braun's customer contracts conclude or transfer.
• During the transition period, LeMaitre will receive a portion of profits on B. Braun-originated sales.

Market and Competitive Landscape:

• LeMaitre operates in the peripheral vascular disease market, which affects over 200 million people worldwide.
• The company leverages an expanding 31-country sales force to strengthen its core vascular portfolio.
• The press release does not provide specific market share data or detailed competitor analysis.

Risks and Challenges:

• Forward-looking statements involve risks including the ability to maintain historic profit growth levels and increase selling prices.
• Risks include regulatory approvals, compliance, adverse regulatory findings, and potential enforcement actions.
• Challenges include sourcing, acquiring, and integrating acquisitions; dependence on sole- or limited-source suppliers; and competition from other medical device companies.
• Risks also cover IT system disruptions, new enterprise resource planning system implementation, procurement of human tissue, manufacturing facility disruptions, and international operational risks.
• Potential risks include litigation related to product liability, employment, intellectual property, and contract disputes, as well as product defects or recalls.
• Risks include the ability to service debt, dilutive effects of debt conversion, executive transitions, and stock price volatility.

Management Commentary and Tone:

• Chairman/CEO George LeMaitre expressed confidence, stating expectations for another year of healthy sales and EPS growth in 2026.
• Management highlighted that biologics continue to drive sales and that the B. Braun acquisition will strengthen the core portfolio.
• The tone indicates a focus on leveraging the expanding sales force and international product launches.

Other Key Points:

• The Board of Directors approved a quarterly dividend of $0.25 per share on October 27, 2026, payable on December 3, 2026, to stockholders of record on November 19, 2026.
• On February 19, 2026, the Board authorized a share repurchase program of up to $100.0 million, concluding on February 18, 2027, unless extended.
• 2025 results included a Q3 non-recurring benefit from the Employee Retention Tax Credit, which is excluded from non-GAAP adjusted figures.
• The company provided a reconciliation of GAAP to non-GAAP financial measures, including sales growth, gross margin, operating expenses, operating income, and EPS.
• A conference call was conducted on November 4, 2026, at 5:00 pm ET, with a webcast available on the company's investor website.