Artivion, Inc. Canaccord Genuity's 46th Annual Growth Conference

Thanks, Bill. Good morning, everyone. Quick overview on Artivion. We are an aorta-focused medical device company. We did a little over $400 million in 2025, have guidance closer to $500 million for 2026, and roughly $90 million of EBITDA. We basically do two things. We have aortic valve replacements. We have allografts, and we have mechanical valves. Then we have a series of products to treat dissections and aneurysms of the aorta. Then we also have a product that's an adjunct to the procedure, a surgical sealant called BioGlue. That's basically what we do. On aortic valves, we're focused on younger patients, which we define as patients under the age of 65. As far as financial objectives, what our goal is in any given year is we're trying to produce double-digit revenue growth and to grow EBITDA twice as fast as revenue.

Kind of the formula for that is you see the left-hand side of the pie chart is the more legacy parts of the business, preservation services, and surgical sealants. Those are low- to mid-single-digit growth businesses. They're very highly differentiated products, but just in very mature markets. They don't grow very fast, but the growth is very durable, and they're very profitable. On the right-hand side, we have our higher growth, higher margin segments, mechanical heart valves, which the brand is On-X, and then our portfolio of stent grafts, which is really where all of our future growth is going to be driven and where all of our pipeline is focused. We have a really good opportunity to expand EBITDA margins, and we have three ways to do that.

First, we have this excellent pipeline of products that we're bringing to the U.S. market, and each of those products have significantly higher gross margins than our current corporate average, so we have an opportunity to expand gross margin through mix. We have a global sales force that's fully built out. Our reps don't need to cover each case, which is a little bit unusual for a med tech company. Frequently, reps are in the surgery. We do not have that, and so that gives us an opportunity to leverage the sales force. Then, like most companies our size, we have a global G&A infrastructure that's built out that we can leverage. Those things together allow us to take what is double-digit growth and grow EBITDA significantly faster. Highlights of why would you invest in this company.

We have really category-defining, highly differentiated products that are very defendable. They are all PMA, FDA-approval products, which is a very high barrier to entry from additional competitors. We have significant leverage opportunity. We are very focused on a concentrated call point with a focused sales organization. We have this core business that, although slower growth, is very profitable. Then we have this high margin, high growth opportunity with this excellent pipeline. You add that all together, and you can get this sustainable revenue growth with a meaningful leverage opportunity. Lastly, just a couple of highlights on things that happened this quarter. We reported earnings last Thursday. We did 9% growth, which is a little below our target. We are expecting that to improve going forward.

We did have some really good progress in the stent grafts business, which grew a little bit faster than we did in Q1, despite a much more difficult comparable. Then we had high teens growth in our On-X line, which is fantastic. Then on the non-financial side, we had some pretty big milestones that occurred in the quarter. First, one of our high-growth devices, AMDS, we have been marketing under a humanitarian device exemption, and we got full PMA approval of that right at the end of Q2. Also, we completed an acquisition of the company Endospan. Their product is NEXUS, which got PMA approval in early Q2. We also had some amazing data presented related to our SynerGraft pulmonary valve, which is in our preservation services business. We continue to enroll in our next-generation product, Arcevo.

The trial is called ARTIZEN, and we are at 30 patients enrolled there. We reiterated guidance for the year. Overall, a really good Q2, a lot of good progress, both financially and non-financially, and have more confidence in our full-year guidance. That is a high-level overview.

Yeah. So, for those of you that were not following, we did have a pretty challenging Q1. We had some negative surprises, and we did lower our guidance on our Q1 call. Then we had honestly, a really solid Q2. We made some real progress. I mentioned some non-financial progress, but financially it was really good. Stent grafts, we had a slightly better growth rate despite a much more difficult comp. Then On-X was high teens, which was ahead of expectations, again, despite a difficult comp. So we made some really good progress. We felt good about the guidance. We did not feel good about lowering it, but we felt good about the guidance that we gave on the Q1 call. Qualitatively, obviously, we feel better about that guidance now than we did then.

I think just given the challenges we saw in Q1, we felt like some caution was appropriate. Let us get further in the year before we think about changing this guidance.