Vericel's smaller business is lifting its bigger sales target

Vericel raised its full-year revenue forecast to $344 million to $346 million on November 5, up from $330 million to $340 million in July. The bigger lift came from its burn-care business, built around Epicel and NexoBrid.

That is a meaningful shift in a company still dominated by MACI, its treatment for knee cartilage injuries. Burn care generated $42 million of Vericel's $231.3 million of sales in the first nine months of 2026.

Where the extra $10 million comes from

The midpoint of the annual sales forecast rose by $10 million. Burn care accounts for $6 million of that increase: its new target is $54 million, against the previous range of $46 million to $50 million.

MACI supplies the other $4 million at the midpoint. Its annual target rose to $290 million to $292 million, from $284 million to $290 million. Both businesses are growing, but the smaller one contributes more to this forecast increase.

Government purchases and commercial growth

Burn-care sales reached $18 million in the September quarter, up 52% from a year earlier. That included $3 million of NexoBrid procurement revenue under Vericel's agreement with the U.S. Biomedical Advanced Research and Development Authority, known as BARDA.

Commercial NexoBrid revenue also grew, rising 54% to $2.3 million. Epicel sales increased 23% to $12.7 million. MACI revenue rose 21% to $67.4 million, extending the growth in the larger franchise.

Across the group, revenue increased 26% to $85.4 million. Operating expenses rose much more slowly, helping operating profit climb to $12.2 million from $3.5 million. Net income reached $14.2 million, compared with $5.1 million a year earlier.

Profit rose faster than cash

Operating cash flow moved the other way in the quarter, falling to $17.7 million from $22.1 million. Quarterly free cash flow, which subtracts capital spending, fell to $15.7 million from $19.5 million.

The nine-month comparison was stronger. Free cash flow rose to $45.1 million from $11.9 million, helped by lower construction spending at the Burlington manufacturing facility.

A busy final quarter ahead

Vericel also raised its full-year adjusted EBITDA margin target to 28% from 27%. This measure adds back depreciation and amortization and expenses including stock-based compensation, while removing net interest income. The gross-margin target stayed at about 75%.

With $231.3 million of sales booked through September, the new revenue target leaves roughly $113 million to $115 million for the final quarter. MACI implant volumes have historically peaked toward year-end, and management said the fourth quarter had started strongly, particularly for MACI.

The Vericel company profile tracks the product mix, cash generation, manufacturing transition and updated annual targets.