Vericel Corporation (NASDAQ:VCEL) delivered a strong performance in its fourth quarter, reporting earnings per share of $0.45, matching analysts’ expectations, as detailed in FiscalAI’s recent coverage. The biotechnology firm generated revenue of $92.92 million for the quarter, surpassing the consensus estimate of $92.66 million. This marks a notable year-over-year revenue increase of 23.3%, reflecting robust demand for its products.
In comparison to the previous year, where Vericel achieved earnings of $0.38 per share, the latest figures highlight the company’s growth trajectory. The firm’s net margin stood at 5.98%, with a return on equity of 5.36%, indicating effective cost management and profitability during the period.
Key Financial Highlights and Growth Projections
During its earnings conference call, Vericel outlined several key takeaways. The company reported record Q4 revenue of $92.9 million, up 23% year-over-year, with its flagship product, MACI, contributing $84.1 million to this total. The quarter also saw industry-leading margins, including a gross margin of approximately 79% and an adjusted EBITDA margin of 40%. At the end of 2025, Vericel maintained a strong financial position with roughly $200 million in cash and no outstanding debt.
Looking ahead, management provided guidance for 2026, projecting revenue between $316 million and $326 million. This forecast includes anticipated MACI sales of $280 million to $286 million, alongside revenues from Burn Care estimated at $36 million to $40 million. The company expects to see growth exceeding 20% in Q1, with MACI revenues projected at about $54 million to $55 million, suggesting further upside potential if current momentum continues.
Vericel’s commercial strategy includes expanding its MACI sales force by 30% and training approximately 1,000 MACI Arthro-trained surgeons. This initiative is expected to result in increased biopsy, implant, and conversion rates, enabling deeper penetration into existing medical practices.
Market Reaction and Analyst Insights
Despite the positive earnings report, shares of Vericel experienced a decline of 5.3%, trading down $2.00 to $35.68 on Friday. A total of 522,908 shares changed hands, surpassing the average volume of 433,230. The stock has fluctuated between a 52-week low of $29.24 and a high of $52.06, with a market capitalization of $1.80 billion and a price-to-earnings ratio of 115.10.
Wall Street analysts have weighed in on Vericel’s performance. Notably, Zacks Research downgraded the company from a “strong-buy” to a “hold” rating. Conversely, HC Wainwright raised its target price from $60.00 to $64.00, maintaining a “buy” rating. Truist Financial adjusted its price target downward from $50.00 to $45.00 while keeping a “buy” rating in place.
Overall, four analysts currently rate Vericel with a “buy” rating, while three have issued “hold” ratings. The average consensus rating stands at “Moderate Buy” with a target price of $58.50, according to MarketBeat data.
Vericel Corporation, specializing in regenerative medicine, focuses on developing and commercializing cell-based therapies for patients with severe conditions. Its flagship products include MACI®, which is utilized for repairing symptomatic cartilage defects in the knee of adult patients. As the company continues to advance its commercial initiatives and product offerings, its financial trajectory remains a focal point for investors and analysts alike.
