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1. Company Snapshot

1.a. Company Description

Vericel Corporation, a commercial-stage biopharmaceutical company, engages in the research, development, manufacture, and distribution of cellular therapies for sports medicine and severe burn care markets in the United States.The company markets autologous cell therapy products comprising MACI, an autologous cellularized scaffold product for the repair of symptomatic, and single or multiple full-thickness cartilage defects of the knee; and Epicel, a permanent skin replacement humanitarian use device for the treatment of adult and pediatric patients with deep-dermal or full-thickness burns.Its preapproval stage product is NexoBrid, a registration-stage biological orphan product for eschar removal in adults with deep partial-thickness and/or full-thickness thermal burns.


The company was formerly known as Aastrom Biosciences, Inc.Vericel Corporation was incorporated in 1989 and is headquartered in Cambridge, Massachusetts.

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1.b. Last Insights on VCEL

Vericel Corporation's recent performance was driven by strong Q3 2025 earnings, with the company reporting record total revenue of $67.5 million and MACI revenue growth of 25% to $55.7 million. The company's net income was $5.1 million, and adjusted EBITDA margin was 25%. Additionally, Vericel's operating cash flow reached a record $22.1 million. Analysts expect a potential upside of 39.4% in the stock, citing a positive trend in earnings estimate revisions. Institutional investors, such as Yousif Capital Management LLC, have also increased their holdings in the company.

1.c. Company Highlights

2. Vericel's Q3 2025 Earnings: A Strong Performance

Vericel Corporation reported a robust third quarter 2025, with record total revenue reaching $67.5 million, driven by a 25% growth in MACI revenue to $55.7 million and a 21% sequential increase in burn care revenue to $11.8 million. The company achieved GAAP net income of $5.1 million and adjusted EBITDA of $17 million, representing a 25% margin. Operating cash flow was a record $22.1 million, with free cash flow of nearly $20 million. Earnings per share (EPS) came in at $0.1, beating estimates of -$0.02. The company's financial performance was highlighted by Joseph Mara, who stated that the company achieved net income of $5 million in Q3 and a 25% adjusted EBITDA margin, generating $20 million in free cash flow.

Publication Date: Nov -08

📋 Highlights
  • Q3 Revenue Growth:: Record total revenue of $67.5M, with MACI revenue up 25% to $55.7M and burn care revenue rising 21% to $11.8M.
  • Financial Performance:: GAAP net income of $5.1M and adjusted EBITDA of $17M (25% margin), alongside record operating cash flow of $22.1M and free cash flow of $20M.
  • MACI Arthro Expansion:: Over 800 surgeons trained in MACI Arthro by October, driving higher conversion rates and growth in smaller defect treatments (2–4 cm²).
  • Future Pipeline:: Phase III MACI Ankle trial to launch in Q4 2025, with UK marketing application planned for mid-2026 and potential launch by 2027.
  • 2026 Guidance:: Maintained full-year revenue of $272–276M, with MACI revenue projected to grow at low 20% CAGR and EBITDA margin targeting high 30% by 2029.

MACI's Strong Growth Drivers

MACI's strong performance was driven by underlying business fundamentals, including the expansion of the MACI surgeon base and growth in biopsies. The launch of MACI Arthro has contributed to MACI's overall biopsy and implant growth, with over 800 MACI Arthro trained surgeons through October. Early data indicates a higher conversion rate for MACI Arthro implanting surgeons, suggesting a less invasive procedure with improved patient outcomes. The company is seeing a strong trend of patient demand for MACI Arthro, driving surgeon adoption rates.

Guidance and Outlook

The company maintained its full-year revenue guidance of $272-276 million, with MACI revenue expected to grow at a low 20% rate. For 2026, the company expects to capitalize on the full year of MACI Arthro trained surgeons and continue to expand the number of trained surgeons. Analysts estimate next year's revenue growth at 20.8%. The company is well-positioned for a strong close to the year and expects to deliver sustained high revenue growth and profitability in 2026 and beyond.

Valuation Metrics

Vericel's current valuation metrics indicate a high growth expectation. The company's P/E Ratio is 150.29, P/B Ratio is 6.11, and P/S Ratio is 7.59. The EV/EBITDA ratio is 102.97, suggesting that the market is pricing in significant future growth. The company's ROE is 4.3%, and ROIC is 1.67%. The Net Debt / EBITDA ratio is -0.13, indicating a healthy debt position.

3. NewsRoom

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Vericel Corporation (NASDAQ:VCEL) Receives $58.75 Consensus PT from Analysts

Dec -02

Source: defenseworld.net

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Vericel to Present at the Stephens Annual Investment Conference on Thursday, November 20, 2025

Nov -14

Source: globenewswire.com

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Wall Street Analysts Believe Vericel (VCEL) Could Rally 39.42%: Here's is How to Trade

Nov -10

Source: zacks.com

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Vericel Corporation (VCEL) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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Brown Capital Discloses $31 Million Sale of Vericel Stock as Small-Cap Biotech Reports Earnings

Nov -06

Source: fool.com

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Vericel Corporation (VCEL) Q3 Earnings and Revenues Top Estimates

Nov -06

Source: zacks.com

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Vericel Reports Third Quarter 2025 Financial Results

Nov -06

Source: globenewswire.com

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Yousif Capital Management LLC Raises Stock Holdings in Vericel Corporation $VCEL

Oct -23

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.02%)

6. Segments

MACI

Expected Growth: 8.5%

MACI's 8.5% growth is driven by increasing adoption in cartilage repair procedures, expanding orthopedic surgeon network, and rising demand for minimally invasive treatments. Additionally, Vericel's strategic partnerships, investments in sales and marketing, and growing awareness of cartilage defects among patients and physicians contribute to the segment's growth.

Epicel

Expected Growth: 11.7%

Epicel's 11.7% growth driven by increasing adoption in burn care centers, expansion into new markets, and rising demand for autologous skin substitute treatments. Strong sales force execution, strategic partnerships, and favorable reimbursement environment also contribute to growth.

NexoBrid

Expected Growth: 9.33%

NexoBrid's 9.33% growth is driven by increasing adoption in burn care, strong sales force execution, and expanding hospital penetration. Additionally, growing awareness of the benefits of debridement in wound care, and the product's unique enzymatic mechanism of action, contribute to its rising demand.

7. Detailed Products

MACI

MACI (Autologous Cultured Chondrocytes on Porcine Collagen Membrane) is a surgical implant used to repair damaged or diseased cartilage in the knee.

Epicel

Epicel (Cultured Epithelial Autografts) is a permanent skin substitute used to treat severe burns, wounds, and skin defects.

8. Vericel Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Vericel Corporation's products are highly specialized and there are limited substitutes available in the market, reducing the threat of substitutes.

Bargaining Power Of Customers

Vericel Corporation's customers are primarily hospitals and clinics, which have limited bargaining power due to the specialized nature of the company's products.

Bargaining Power Of Suppliers

Vericel Corporation relies on a limited number of suppliers for raw materials, which gives them some bargaining power, but the company's specialized products reduce the suppliers' negotiating power.

Threat Of New Entrants

The biotechnology industry has high barriers to entry, including significant research and development costs, regulatory hurdles, and the need for specialized expertise, making it difficult for new entrants to compete with Vericel Corporation.

Intensity Of Rivalry

The biotechnology industry is highly competitive, with several established players competing for market share, which increases the intensity of rivalry for Vericel Corporation.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 28.04%
Debt Cost 3.95%
Equity Weight 71.96%
Equity Cost 12.63%
WACC 10.19%
Leverage 38.97%

11. Quality Control: Vericel Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Revance Therapeutics

A-Score: 4.2/10

Value: 9.0

Growth: 6.1

Quality: 6.2

Yield: 0.0

Momentum: 1.0

Volatility: 2.7

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TRACON Pharmaceuticals

A-Score: 3.7/10

Value: 9.6

Growth: 6.9

Quality: 5.2

Yield: 0.0

Momentum: 0.5

Volatility: 0.3

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Arvinas

A-Score: 3.5/10

Value: 8.4

Growth: 4.4

Quality: 5.4

Yield: 0.0

Momentum: 0.5

Volatility: 2.0

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Vericel

A-Score: 3.4/10

Value: 1.0

Growth: 7.9

Quality: 6.1

Yield: 0.0

Momentum: 2.0

Volatility: 3.7

1-Year Total Return ->

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C4 Therapeutics

A-Score: 2.8/10

Value: 7.8

Growth: 2.4

Quality: 4.7

Yield: 0.0

Momentum: 1.0

Volatility: 0.7

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Matinas BioPharma

A-Score: 2.8/10

Value: 7.8

Growth: 4.2

Quality: 3.2

Yield: 0.0

Momentum: 1.0

Volatility: 0.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

36.23$

Current Price

36.23$

Potential

-0.00%

Expected Cash-Flows