Vericel Corp

Vericel Corp maintains a conservative capital structure with zero debt, resulting in a debt-to-equity ratio of 0.0. The balance sheet holds $100.1 million in cash and equivalents against total liabilities of $133.3 million, providing a solid liquidity buffer. Operating cash flow stands at $51.9 million, which comfortably covers capital expenditures of $27.2 million, indicating positive free cash flow generation. The company trades at a price-to-book ratio of 6.66 and an EV/EBITDA of 143.34, reflecting a premium valuation relative to its asset base and earnings before interest, taxes, depreciation, and amortization.

Profitability metrics show a gross profit of $205.6 million on revenue of $276.3 million, yielding a gross margin of approximately 74.4%. However, operating income is $11.0 million, and net income is $16.5 million, resulting in a return on equity (ROE) of 6.05% and a return on assets (ROA) of 4.4%. These returns are modest, suggesting that while the core product has high margins, operating expenses significantly compress net profitability. The price-to-earnings ratio of 110.0 indicates that investors are pricing in significant future growth expectations rather than current earnings power.

Revenue concentration and segment details are not explicitly provided in the available data, but the high gross margin suggests a focused product portfolio with strong pricing power. The company’s geographic exposure is not detailed in the current snapshot, limiting the ability to assess regional risk factors. The absence of segment data prevents a granular analysis of revenue drivers, but the overall financial health appears stable with consistent cash flow generation.

Growth trajectory analysis is limited by the absence of historical period data in the current input. Without multi-year revenue or net income trends, it is not possible to quantify the year-over-year growth rate or assess the sustainability of recent performance. The current revenue base of $276.3 million serves as the baseline for future projections, but historical context is required to validate growth assumptions.

Risk assessment indicates low liquidity risk and low dilution risk, with no immediate filing-based flags detected. The company’s debt-free status mitigates credit risk, and the substantial cash position provides operational flexibility. The primary risk appears to be valuation-related, given the high P/E and EV/EBITDA multiples, which leave little room for execution errors or growth deceleration.

Recent IR observations show a mean analyst price target of $57.14, with a median target of $55.00, implying potential upside from the current market price of $46.64. The mean recommendation is 1.75, driven by three strong-buy and four buy ratings, indicating positive sentiment among analysts. The high price target of $70.00 and low of $46.00 suggest a wide range of expectations, but the consensus leans towards growth.

Revenue grew 16.5% year-over-year to $276.3 million in fiscal 2026, demonstrating strong top-line expansion momentum.

Net income surged 59.4% to $16.5 million in fiscal 2026, reflecting significant improvement in overall profitability.

Operating income increased 144.4% to $11.0 million in fiscal 2026, indicating substantial gains in core operational efficiency.

Free cash flow turned positive at $0.9 million in fiscal 2026, marking a critical shift from previous cash burn.

Long-term debt increased to $2.0 million in fiscal 2026, up from $0.7 million in the prior year, raising leverage concerns.

Return on assets of 4.4% suggests that asset utilization efficiency may lag behind revenue growth rates.

Debt-to-equity ratio of 0.376 indicates increasing reliance on debt financing compared to previous periods of minimal debt.

Revenue $68.4M, +30,1% YoY; Operating income +37,0% YoY.

• ▍Revenue $68.4M, +30,1% YoY
• ▍Operating income +37,0% YoY
• ▍Net income +44,0% YoY
• ▍Free cash flow +81,3% YoY
• ▍Net margin -9.2%

Revenue $92.9M, +23,3% YoY; Operating income +21,3% YoY.

• ▍Revenue $92.9M, +23,3% YoY
• ▍Operating income +21,3% YoY
• ▍Net income +17,4% YoY
• ▍Free cash flow +221,1% YoY
• ▍Net margin 25.0%

Revenue $67.5M, +16,6% YoY; Operating income +240,0% YoY.

• ▍Revenue $67.5M, +16,6% YoY
• ▍Operating income +240,0% YoY
• ▍Net income +663,1% YoY
• ▍Free cash flow +128,8% YoY
• ▍Net margin 7.5%

Revenue $63.2M, +20,1% YoY; Operating income +66,4% YoY.

• ▍Revenue $63.2M, +20,1% YoY
• ▍Operating income +66,4% YoY
• ▍Net income +88,2% YoY
• ▍Free cash flow +71,1% YoY
• ▍Net margin -0.9%

Revenue $52.6M; Operating income -$12.8M.

• ▍Revenue $52.6M
• ▍Operating income -$12.8M
• ▍Net margin -21.4%

Revenue $75.4M; Operating income $18.5M.

• ▍Revenue $75.4M
• ▍Operating income $18.5M
• ▍Net margin 26.3%

Revenue $57.9M; Operating income -$2.5M.

• ▍Revenue $57.9M
• ▍Operating income -$2.5M
• ▍Net margin -1.6%

Revenue $52.7M; Operating income -$6.0M.

• ▍Revenue $52.7M
• ▍Operating income -$6.0M
• ▍Net margin -8.9%

Revenue $276.3M, +16,4% YoY; Operating income +144,4% YoY.

• ▍Revenue $276.3M, +16,4% YoY
• ▍Operating income +144,4% YoY
• ▍Net income +59,4% YoY
• ▍Free cash flow +101,9% YoY
• ▍Net margin 6.0%

Revenue $237.2M, +20,1% YoY; Operating income +169,9% YoY.

• ▍Revenue $237.2M, +20,1% YoY
• ▍Operating income +169,9% YoY
• ▍Net income +425,6% YoY
• ▍Free cash flow −84,6% YoY
• ▍Net margin 4.4%

Revenue $197.5M, +20,2% YoY; Operating income +62,1% YoY.

• ▍Revenue $197.5M, +20,2% YoY
• ▍Operating income +62,1% YoY
• ▍Net income +81,0% YoY
• ▍Free cash flow −28,4% YoY
• ▍Net margin -1.6%

Revenue $164.4M, +5,2% YoY; Operating income −117,2% YoY.

• ▍Revenue $164.4M, +5,2% YoY
• ▍Operating income −117,2% YoY
• ▍Net income −123,7% YoY
• ▍Free cash flow −63,9% YoY
• ▍Net margin -10.2%