Investment Thesis
Artivion demonstrates solid revenue growth of 13.6% YoY and maintains a healthy balance sheet with strong liquidity (3.53x current ratio), but profitability concerns are evident with deteriorating net margins (2.2%) and anemic free cash flow (0.2% FCF margin). The dramatic EPS growth masks underlying weakness in operational efficiency and cash generation, suggesting the company is struggling to convert top-line growth into sustainable bottom-line profitability.
AORT Strengths
- Strong revenue growth of 13.6% YoY indicating solid market demand in surgical instruments sector
- Excellent liquidity position with 3.53x current ratio and 2.62x quick ratio providing operational flexibility
- Conservative debt levels with 0.48x debt-to-equity ratio and moderate leverage profile
AORT Risks
- Severe cash conversion problem with free cash flow of only $839K (0.2% margin) despite $39.9M operating cash flow, indicating capital intensity issues
- Low net profitability of 2.2% and declining operational efficiency with net income growth of only 0.1% YoY despite 13.6% revenue growth
- Dangerously low interest coverage of 1.4x with $215.1M long-term debt creates vulnerability to rising rates or earnings deterioration
Key Metrics to Watch
- Free cash flow conversion and capital expenditure trends as the 1:1 ratio of CapEx to OCF is unsustainable
- Gross margin sustainability at 64.4% to confirm pricing power and cost management in competitive medical device market
- Operating leverage improvement to narrow the gap between gross profit growth and net income growth
AORT Financial Metrics
AORT Profitability Ratios
AORT Balance Sheet & Liquidity
AORT 5-Year Financial Trend
5-Year Trend Summary: ARTIVION, INC.'s revenue has grown significantly by 48% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.75 indicates the company is currently unprofitable.
AORT Growth Metrics (YoY)
AORT Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $95.8M | -$2.3M | $-0.05 |
| Q2 2025 | $98.0M | $840.0K | $0.02 |
| Q1 2025 | $97.4M | -$505.0K | $-0.01 |
| Q3 2024 | $87.9M | -$2.3M | $-0.05 |
| Q2 2024 | $89.3M | -$2.1M | $-0.05 |
| Q1 2024 | $83.2M | $7.5M | $0.18 |
| Q3 2023 | $76.8M | -$9.8M | $-0.24 |
| Q2 2023 | $80.3M | -$3.4M | $-0.08 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AORT Capital Allocation
AORT SEC Filings
Access official SEC EDGAR filings for ARTIVION, INC. (CIK: 0000784199)