Breaking Down LeMaitre Vascular, Inc. (LMAT) Financial Health: Key Insights for Investors

You're looking at LeMaitre Vascular, Inc. (LMAT) and trying to figure out if this medical device growth story has the financial bones to keep running, especially with market volatility making every dollar of revenue count. Honestly, the numbers from the Q3 2025 report, released just this November, paint a pretty clear picture of operational strength: the company posted diluted earnings per share (EPS) of $0.75, a massive 54% jump year-over-year, which defintely exceeded expectations. The core business is firing, driven by Grafts and Shunts, and the full-year sales guidance is now projected around the $248 million midpoint, suggesting a sustained 13% organic growth rate. Plus, they're sitting on a cash reserve of $343.1 million as of September 30, 2025, which gives them serious flexibility for acquisitions or weathering any near-term economic choppiness. That cash pile is a real safety net. So, the question isn't just about growth, but how they'll deploy that capital to hit the average analyst price target of $98.75, which implies a solid double-digit upside.

Revenue Analysis

You need a clear picture of where LeMaitre Vascular, Inc. (LMAT) is making its money, and the takeaway is simple: the company is a growth story driven by pricing power and specialized products, not just volume. For the full fiscal year 2025, LeMaitre Vascular, Inc. projects total sales between $247 million and $249 million, with the midpoint at $248 million. This is a healthy, double-digit organic growth rate, but you have to look under the hood to see the real drivers.

Product and Segment Contributions

LeMaitre Vascular, Inc.'s revenue is almost entirely product-based, focusing on devices for peripheral vascular disease. The near-term growth is heavily skewed toward their core implantable products. In the third quarter of 2025, the key drivers were Grafts, which saw a sales increase of 23%, and Shunts, which grew by 18%. That's where the high-margin action is.

The company's pricing strategy is a critical component of their revenue stream, honestly. For Q3 2025, the overall sales growth was composed of a significant +10% increase from price and only a +2% increase from unit volume. This means they are successfully raising prices on their niche, specialized products, which is a strong sign of pricing power (the ability to raise prices without losing customers). Exploring LeMaitre Vascular, Inc. (LMAT) Investor Profile: Who's Buying and Why?

• Grafts: +23% Q3 2025 sales growth.
• Shunts: +18% Q3 2025 sales growth.
• Artegraft: A standout product, with sales growth accelerating to 33% in Q3 2025.

Geographic Revenue Breakdown and Growth

Regionally, the growth story is strongest outside of the Americas, but there are some caveats. The EMEA (Europe, Middle East, and Africa) region is leading the charge, posting a sales increase of 18% in Q3 2025. The Americas region, which is their largest market, still delivered a solid 10% sales increase in the same quarter.

Here's the quick math on regional performance for Q3 2025 sales growth:

What this estimate hides is the challenge in the APAC region, which only grew at 4% in Q3 2025. Management has cited issues like market dynamics and management turnover in places like Japan and Korea, which makes the APAC region defintely a watch item for near-term performance.

Near-Term Revenue Risks and Trends

While the overall revenue trajectory is positive-the trailing twelve months (TTM) revenue ending September 30, 2025, was $240.87 million, representing a 13.07% year-over-year growth-there are a couple of risks you should be aware of. First, a catheter recall earlier in 2025 caused some customers to pull their purchases forward, which is expected to slightly limit growth in the final quarter of the year. Second, the strengthening of the U.S. dollar is creating a foreign exchange (FX) headwind, which negatively impacted the Q4 guidance by approximately $600,000. You have to factor in those currency shifts when assessing international sales. The international launch of Artegraft, however, is a clear opportunity, with Q3 sales of $1.4 million and a projected Q4 run-rate of around $2 million.

Profitability Metrics

You need to know if LeMaitre Vascular, Inc. (LMAT) is simply growing revenue or actually getting more profitable, and the answer for 2025 is a clear yes: the company is demonstrating impressive operating leverage (the rate at which revenue growth drops to the bottom line), pushing its margins well above the industry average. The key takeaway is that LMAT is guiding for a full-year 2025 Adjusted Operating Margin of 26%, which is a significant jump from prior years and comfortably beats the general MedTech industry's typical margin of around 22%.

Gross Margin and Operational Efficiency

The foundation of LMAT's financial health is its high gross profit margin, which reflects the premium nature of its vascular devices and strong cost management. For the full 2025 fiscal year, the company is guiding for an Adjusted Gross Margin of 70.3%. This is a very high figure in the medical device space, where a 75% gross margin is often the target for a high-value disposable product.

Here's the quick math on their operational efficiency: this gross margin is an improvement over the prior year, driven by two simple, powerful factors: higher average selling prices (pricing power is defintely a plus here) and better manufacturing efficiencies. Their product mix, especially the strong performance of their Grafts and Shunts, is also helping to keep the cost of goods sold (COGS) in check.

• Full-Year 2025 Adjusted Gross Margin: 70.3%
• Q3 2025 Adjusted Gross Margin: 70.8% (up 300 basis points year-over-year)
• Key drivers: Higher pricing and manufacturing efficiencies.

Operating and Net Profit Margins

The real story for 2025 is the operating margin, which shows how well management is converting that high gross profit into operating income (Earnings Before Interest and Taxes, or EBIT). LMAT's focus on profitable growth is evident in the trend, as the Adjusted Operating Margin has increased sequentially across the first three quarters of 2025, from 21% in Q1 to 28% in Q3. This is operating leverage in action.

For the full year, the guidance points to an Adjusted Operating Margin of 26% on projected sales of $248 million, translating to an Adjusted Operating Income of $63.7 million. This performance is stellar when you compare it to the broader MedTech industry, where profit margins are typically closer to 22%. The company is managing its operating expenses well; Q3 saw expense growth moderating to a 9% increase versus the prior year, a slowdown from the 20% increase seen in Q2. Lower expense growth against rising sales is the textbook definition of operating leverage.

Looking at the bottom line, the adjusted net profit margin for Q3 2025 was approximately 23.3% ($14.2 million in adjusted net income on $61.0 million in sales), which is a powerful indicator of cash generation. You can dive deeper into who is taking notice of this performance by Exploring LeMaitre Vascular, Inc. (LMAT) Investor Profile: Who's Buying and Why?

Debt vs. Equity Structure

When I look at LeMaitre Vascular, Inc. (LMAT)'s balance sheet, the first thing that jumps out is a measured, strategic approach to financing growth. They are defintely not a company that piles on leverage. The core takeaway for you is that LeMaitre Vascular, Inc. maintains a low debt-to-equity profile, which gives them significant financial flexibility for future acquisitions or stock buybacks.

As of the third quarter of 2025 (September 30, 2025), LeMaitre Vascular, Inc.'s capital structure is heavily weighted toward equity. We can see this immediately in the Debt-to-Equity (D/E) ratio, which sits at approximately 0.49, or 49.0%. Here's the quick math: their total interest-bearing debt of roughly $185.6 million is well-supported by total stockholders' equity of approximately $378.9 million.

This 49.0% D/E ratio is a very healthy number, especially when you compare it to the industry. For the Surgical and Medical Instruments and Apparatus sector, the average D/E ratio was around 0.70 in 2024. LeMaitre Vascular, Inc. is operating with significantly less leverage than its peers, which is a hallmark of a financially conservative management team in the medical device space.

The company's debt is primarily long-term, driven by a key financing move late last year. The breakdown looks like this:

• Long-Term Debt: The most significant component is the $168.4 million in Convertible Senior Notes, net, as of Q3 2025.
• Short-Term Debt: Short-term lease liabilities account for a smaller amount, at about $2.8 million.

The big story in their financing strategy is the $150 million issuance of 2.50% Convertible Senior Notes due 2030 that was priced in December 2024. This is smart financing. Convertible notes are a hybrid instrument that allows the company to raise capital at a lower interest rate-just 2.50%-than traditional debt, but with the potential for equity dilution if the stock price rises above the conversion price. It's a low-cost, growth-oriented debt. This is how they balance debt and equity funding.

In fact, LeMaitre Vascular, Inc. is using its balance sheet strength to return capital to shareholders, not just fund operations. In February 2025, the Board authorized a stock repurchase program of up to $75.0 million. They are using low-cost debt to fund growth and buy back shares, effectively managing both sides of the capital structure. You can read more about their core business approach here: Mission Statement, Vision, & Core Values of LeMaitre Vascular, Inc. (LMAT).

Liquidity and Solvency

If you're looking at LeMaitre Vascular, Inc. (LMAT), the first thing you notice about its balance sheet is its exceptional liquidity. Honestly, this company is sitting on a fortress of cash and near-cash assets. As of the end of the third quarter of 2025 (September 30, 2025), LeMaitre Vascular's short-term financial health is defintely not a concern.

The core of this strength lies in the company's current and quick ratios, which measure its ability to cover short-term debts with short-term assets. These numbers are phenomenal, especially in the medical device sector.

Current and Quick Ratios: A Liquidity Fortress

The Current Ratio (Current Assets divided by Current Liabilities) for LeMaitre Vascular stood at a staggering 13.58x in Q3 2025. Here's the quick math: with total current assets of $452.0 million and total current liabilities of just $33.3 million, the company could pay off its immediate obligations over thirteen times.

More telling is the Quick Ratio (Acid-Test Ratio), which excludes inventory-a less liquid asset. This ratio was an equally robust 11.28x. This means that even without selling a single piece of inventory (which stood at $70.8 million), LeMaitre Vascular has more than eleven times the cash, marketable securities, and receivables needed to cover all its current bills.

• Current Ratio: 13.58x (Q3 2025)
• Quick Ratio: 11.28x (Q3 2025)
• Liquidity is a non-issue.

Analysis of Working Capital Trends

This liquidity translates directly into a massive working capital position (Current Assets minus Current Liabilities). For Q3 2025, LeMaitre Vascular's working capital was approximately $418.7 million. This trend of high working capital has been consistent, driven largely by management's disciplined capital allocation and strong cash generation. This capital provides significant strategic flexibility, which is a key part of the investment debate for the stock.

High working capital is a deliberate strategy here. It allows the company to fund its international expansion, like the Artegraft launch, and to pursue accretive acquisitions without relying on debt, plus it provides a buffer against any unforeseen market or regulatory issues. This is how you build a resilient business model. If you want to understand the strategic direction this capital supports, you can review the Mission Statement, Vision, & Core Values of LeMaitre Vascular, Inc. (LMAT).

Cash Flow Statements Overview

The company's cash flow statement for Q3 2025 confirms this financial strength, showing excellent cash generation from its core business.

Operating Cash Flow (CFO) was a very healthy $28.8 million in Q3 2025, which is the engine of the business. The Investing Cash Flow shows a modest outflow for capital expenditures (CapEx) of only $2.3 million, which means the company is not overspending on property or equipment to drive growth. The Financing Cash Flow activities include a regular quarterly dividend of $0.20/share and a previously authorized stock repurchase program of up to $75.0 million, both of which are easily supported by the consistent CFO.

Potential Liquidity Strengths and Concerns

The primary strength is the sheer volume of liquid assets. Ending Q3 2025 with $343.1 million in cash and short-term securities provides immense flexibility for M&A activity or weathering any economic downturn. The high liquidity is a clear signal of financial stability.

The only potential concern isn't a liquidity risk, but an opportunity cost risk. Holding such a large cash balance-over $343 million-could be viewed as inefficient capital allocation if management doesn't deploy it for high-return investments, like strategic acquisitions or accelerated share buybacks. Still, given the recent FDA warning letter related to the Artegraft facility's quality management system, that cash cushion is a valuable safety net against any unexpected costs or delays.

Valuation Analysis

You need to know if you're buying a growth story at a fair price or just chasing momentum. The short answer for LeMaitre Vascular, Inc. (LMAT) is that it looks priced for growth-its valuation multiples are high, but the analyst consensus suggests there's still room to run. This is a classic growth-vs-value tension.

The stock has traded in a volatile range, and honestly, the near-term trend is a bit defintely choppy. Over the last 12 months leading up to November 2025, the stock price decreased by about 11.70%, which is a pullback from its highs. Still, the current price is around the $87.00 mark, which is well above its long-term average, showing that the market still believes in the underlying business.

Is LeMaitre Vascular, Inc. (LMAT) Overvalued or Undervalued?

When we look at the core valuation metrics, LeMaitre Vascular, Inc. (LMAT) is trading at a premium compared to the broader market and many of its peers in the medical device space. This isn't necessarily a bad thing, but it means the market has high expectations for the company's future earnings and growth. You're paying for quality and expansion, especially with the success of their Artegraft international launch.

Here's the quick math on the key ratios based on the latest 2025 fiscal year data:

• Price-to-Earnings (P/E) Ratio: The trailing P/E stands at about 37.28x. For a medical device company, this is a rich multiple, well above the S&P 500 average.
• Price-to-Book (P/B) Ratio: At approximately 5.12x, the P/B ratio is also elevated. This indicates investors are placing a significant value on the company's intangible assets, like its intellectual property and brand, over its net tangible assets.
• Enterprise Value-to-EBITDA (EV/EBITDA): This metric, which is often better for comparing companies with different debt levels, is around 24.61x. That's a strong signal of a growth stock, suggesting a high price relative to its core operating cash flow.

The company does pay a dividend, which is a nice bonus given its growth profile. The annual dividend is currently set at $0.80 per share, giving a modest dividend yield of about 0.9%. The payout ratio is conservative at around 32%, meaning they are retaining most of their earnings to reinvest in the business, which is what you want to see from a growth-focused company.

What this estimate hides is the potential for acquisitive growth, which LeMaitre Vascular, Inc. (LMAT) has historically pursued. The high multiples are justified only if they can execute on their growth strategy, which you can read more about here: Mission Statement, Vision, & Core Values of LeMaitre Vascular, Inc. (LMAT).

Analyst Consensus and Price Target

Despite the high valuation multiples, the professional analyst community is still bullish. The consensus rating from the 6 analysts covering LeMaitre Vascular, Inc. (LMAT) is a clear Buy. The average price target is set at a compelling $101.83. This suggests an expected upside from the current price, indicating that analysts believe the company's projected earnings growth will eventually bring the lofty P/E multiple back down to a more palatable level. The market expects strong execution.

Risk Factors

You need to know that while LeMaitre Vascular, Inc. (LMAT) is guiding for a strong 2025, with full-year sales projected at a midpoint of $248 million, the company faces a few immediate, tangible risks that could temper growth in the near term.

The biggest near-term headache is operational and regulatory. The company received an FDA warning letter concerning its New Jersey Artograph facility's quality management system. This isn't just paperwork; it raises legitimate questions about quality control and the potential for a supply disruption, which could quickly undercut the strong Q3 2025 adjusted gross margin of 70.8%. Plus, a catheter recall earlier in the year led to customers pulling forward purchases, which is expected to limit organic growth in Q4 2025. Honestly, that kind of inventory shift makes forecasting defintely tricky.

The company also faces significant geographic and financial headwinds, mostly outside of its control:

• Foreign Exchange Impact: The strengthening US dollar is a clear headwind, negatively impacting the Q4 2025 guidance by approximately $600,000.
• Asia-Pacific (APAC) Turmoil: Sales in the APAC region have been challenged by management changes in Korea and Japan, which is a drag on international expansion efforts.
• Supply Chain and Competition: There are ongoing supply chain constraints, especially for niche biologics, and competitive pressures are heating up in Europe.

To be fair, management is not sitting still; they are mapping clear, actionable mitigation strategies. They are investing in the sales force and new international offices, which is a smart move to diversify revenue streams and reduce reliance on any single region.

Here's the quick math on their pricing power, which is a key defense mechanism. They plan to implement an 8% price increase for their 2026 US hospital price list. This aggressive pricing in niche segments is their primary tool to offset rising costs and competitive pressure, and it's a core part of their strategy to maintain that high gross margin.

What this estimate hides is the execution risk on the regulatory front. Resolving the FDA's concerns is paramount, as is the successful integration of their pricing discipline across all product lines. You can read more about the company's long-term vision in their Mission Statement, Vision, & Core Values of LeMaitre Vascular, Inc. (LMAT).

The following table summarizes the operational and market risks LeMaitre Vascular, Inc. (LMAT) disclosed in or around the Q3 2025 reporting period:

Growth Opportunities

You're looking for a clear map of where LeMaitre Vascular, Inc. (LMAT) goes from here, and the answer is rooted in two things: niche product dominance and international expansion. This company isn't chasing massive, volatile markets; it's digging deeper into its specialized vascular surgery segments, and it's working.

For the full 2025 fiscal year, management has updated its sales guidance to a range of $247.0 million-$249.0 million, which translates to solid, double-digit organic growth. That's a defintely healthy trajectory in the medical device space.

Here's the quick math on their future prospects, which are better than consensus on the bottom line:

The core of this growth is their product portfolio. For example, in Q2 2025, their Catheters segment saw a massive 27% sales increase, and Grafts were up 19%. That's product innovation and pricing power working in tandem.

The biggest growth driver right now is the strategic push behind their biologics portfolio, which is their competitive moat. Biologics-like their Artegraft bovine graft-represented 52% of worldwide sales in 2024, and the international launch of Artegraft is ahead of schedule. They expect Artegraft's sales outside the US (OUS) to surpass $2.0 million for the full year 2025. This focus on differentiated, high-margin products is key to their superior gross margin, and it's how they keep the earnings momentum going.

What this estimate hides is the power of their distribution model. LeMaitre Vascular, Inc. maintains a global, direct sales force of 152 representatives, which is a significant competitive advantage (moat) in the vascular surgery market. This direct engagement helps them maintain strong relationships with vascular surgeons, which is their core customer. Also, they have a war chest for future acquisitions, a strategy they've used 24 times since founding to build their niche portfolio. With cash and securities ending Q2 2025 at a strong $319.5 million, they have the dry powder to continue this bolt-on acquisition strategy. They're also returning capital to shareholders, with an authorized share repurchase program of up to $75.0 million extending through February 2026.

Their strategic initiatives boil down to a simple, effective plan:

• Expand the international footprint, especially in EMEA, which saw an 18% sales increase in Q3 2025.
• Invest in the direct sales force and new international offices.
• Pursue regulatory approvals for key biologic products in new markets.

You can see how their focus on purpose-driven growth aligns with their core values by reviewing their Mission Statement, Vision, & Core Values of LeMaitre Vascular, Inc. (LMAT).