LeMaitre’s third quarter results drew a negative market reaction as revenue trailed Wall Street expectations, despite solid year-over-year growth. Management cited strong performances from the Grafts and Shunts product lines as key contributors, with organic sales growth driven primarily by price increases rather than unit volume. CEO George LeMaitre pointed out that a recall earlier in the year led some customers to pull forward purchases, limiting Q3 and likely Q4 growth. International expansion, particularly in Europe and South Africa, provided additional momentum, though challenges persisted in the Asia-Pacific region.
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LeMaitre (LMAT) Q3 CY2025 Highlights:
- Revenue: $61.05 million vs analyst estimates of $62.3 million (11.4% year-on-year growth, 2% miss)
- EPS (GAAP): $0.75 vs analyst estimates of $0.57 (31.5% beat)
- Adjusted EBITDA: $20.03 million vs analyst estimates of $17.71 million (32.8% margin, 13.1% beat)
- Revenue Guidance for Q4 CY2025 is $62.8 million at the midpoint, below analyst estimates of $64.69 million
- EPS (GAAP) guidance for the full year is $2.51 at the midpoint, beating analyst estimates by 9.9%
- Operating Margin: 33.3%, up from 24% in the same quarter last year
- Organic Revenue rose 12% year on year vs analyst estimates of 14.8% growth (281.7 basis point miss)
- Market Capitalization: $2.04 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From LeMaitre’s Q3 Earnings Call
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Michael Sarcone (Jefferies) asked why organic growth expectations were lowered for Q4. CEO George LeMaitre cited lingering effects of the catheter recall, persistent APAC softness, and foreign exchange headwinds.
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Shaymus Contorno (Oppenheimer) inquired about the rationale behind the 8% U.S. price increase. CEO George LeMaitre explained the blended rate reflects more pricing power in niche categories, while commodity segments face greater competition and limited flexibility.
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Rick Wise (Stifel) probed which geographies and product lines are expected to drive growth in 2026. CEO George LeMaitre identified biologics—especially Artegraft and XenoSure—and emphasized upcoming approvals in Europe and Canada.
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Nathan Treybeck (Wells Fargo) questioned the scope of price floors and future R&D spending. CEO George LeMaitre clarified 55% of North American revenue is covered by price floors, with R&D as a percent of sales expected to rise from current lows as regulatory projects ramp up.
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Brett Fishbein (KeyBanc Capital Markets) asked about sales rep headcount targets and international expansion. CEO George LeMaitre noted plans to grow beyond 165 reps, particularly in underpenetrated markets like China, where future headcount could expand significantly.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the pace and breadth of biologics adoption, particularly as European and Canadian regulatory approvals come through; (2) the ability to sustain pricing discipline and protect margins amid ongoing cost pressures; and (3) progress toward expanding the sales force in both mature and emerging markets, with a close eye on improvements in the Asia-Pacific region. The resolution of any remaining operational impacts from the catheter recall will also be closely monitored.
LeMaitre currently trades at $90, up from $85.79 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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