ARTIVION, INC.

Previous wording

We reported quarterly revenues of $113.0 million for the three months ended June 30, 2025, a 15% increase from the three months ended June 30, 2024. The increase in revenues for the three months ended June 30, 2025 was due to an increase in revenues from all products and preservation services. Constant currency revenues, as defined below, increased 14% for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024.

Current wording

We reported quarterly revenues of $113.4 million for the three months ended September 30, 2025, an 18% increase from the three months ended September 30, 2024. The increase in revenues for the three months ended September 30, 2025 was due to an increase in revenues from aortic stent grafts, On-X products, surgical sealants, and preservation services, partially offset by a decrease in revenues from other products. Constant currency revenues, as defined below, increased 16% for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024.

Previous wording

See the “Results of Operations” section below for additional analysis of the three and six months ended June 30, 2025.

Current wording

See the “Results of Operations” section below for additional analysis of the three and nine months ended September 30, 2025.

Previous wording

Revenues increased 15% and 8% for the three and six months ended June 30, 2025, respectively, as compared to the three and six months ended June 30, 2024. The increase in revenues for the three months ended June 30, 2025 was due to an increase in revenues from all products and preservation services. The increase in revenues for the six months ended June 30, 2025 was due to an increase in revenues from all products, partially offset by a decrease in revenues from preservation services.

Current wording

Revenues increased 18% and 12% for the three and nine months ended September 30, 2025, respectively, as compared to the three and nine months ended September 30, 2024. The increase in revenues for the three months ended September 30, 2025 was due to an increase in revenues from aortic stent grafts, On-X products, preservation services, and surgical sealants, partially offset by a decrease in revenues from other products. The increase in revenues for the nine months ended September 30, 2025 was due to an increase in revenues from all products, partially offset by a decrease in revenues from preservation services.

Previous wording

A detailed discussion of the changes in product revenues and preservation services revenues for the three and six months ended June 30, 2025 is presented below.

Current wording

A detailed discussion of the changes in product revenues and preservation services revenues for the three and nine months ended September 30, 2025 is presented below.

Previous wording

Revenues from products increased 19% and 15% for the three and six months ended June 30, 2025, respectively, as compared to the three and six months ended June 30, 2024. The increase for the three and six months ended June 30, 2025 was due to an increase in revenues from all products. A discussion of the changes in product revenues for aortic stent grafts, On-X products, surgical sealants, and other product revenues is presented below.

Current wording

Revenues from products increased 23% and 18% for the three and nine months ended September 30, 2025, respectively, as compared to the three and nine months ended September 30, 2024. The increase for the three months ended September 30, 2025 was due to an increase in revenues from aortic stent grafts, On-X products, and surgical sealants, partially offset by a decrease in revenues from other products. The increase for the nine months ended September 30, 2025 was due to an increase in revenues from all products. A discussion of the changes in product revenues for aortic stent grafts, On-X products, surgical sealants, and other product revenues is presented below.

Previous wording

Sales of certain products through our direct sales force and distributors across Europe and various other countries are denominated in a variety of currencies including Euros, Brazilian Reals, Polish Zlotys, British Pounds, Canadian Dollars, and Swiss Francs with a concentration denominated in Euros. Each currency is subject to exchange rate fluctuations. For the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, the US Dollar weakened in comparison to major currencies, resulting in revenue increases when these foreign currency denominated transactions were translated into US Dollars. For thesix months ended June 30, 2025, as compared to thesix months ended June 30, 2024, the US Dollar strengthenedin comparison to major currencies, resulting in revenue decreases when these foreign currency denominated transactions were translated into US Dollars. Future changes in these exchange rates could have a material, adverse effect on our revenues denominated in these currencies. Additionally, our sales to many distributors around the world are denominated in US Dollars, and although these sales are not directly impacted by currency exchange rates, we believe that some of our distributors may delay or reduce purchases of products in US Dollars depending on the relative price of these goods in their local currencies.

Current wording

Sales of certain products through our direct sales force and distributors across Europe and various other countries are denominated in a variety of currencies including Euros, Brazilian Reals, Polish Zlotys, British Pounds, Canadian Dollars, and Swiss Francs with a concentration denominated in Euros. Each currency is subject to exchange rate fluctuations. For thethree and nine months ended September 30, 2025, as compared to thethree and nine months ended September 30, 2024, the US Dollar weakened in comparison to major currencies, resulting in revenue increases when these foreign currency denominated transactions were translated into US Dollars. Future changes in these exchange rates could have a material, adverse effect on our revenues denominated in these currencies. Additionally, our sales to many distributors around the world are denominated in US Dollars, and although these sales are not directly impacted by currency exchange rates, we believe that some of our distributors may delay or reduce purchases of products in US Dollars depending on the relative price of these goods in their local currencies.

Previous wording

Constant currency revenues from the sales of aortic stent grafts increased 22% and 20% for the three and six months ended June 30, 2025, respectively, as compared to the three and six months ended June 30, 2024. Revenues for the three and six months ended June 30, 2025 increased in all geographies, with the most significant increases in North America and Europe, the Middle East, and Africa (collectively, “EMEA”). The revenue increase in EMEA for the three and six months ended June 30, 2025 was primarily due to an increase in volume of higher priced products within the aortic stent graft product line in direct (to hospitals) markets. The revenue increase in North America for the three and six months ended June 30, 2025 was primarily due to sales of AMDS as a result of humanitarian device exemption (“HDE”) granted by the FDA in December 2024 for use of the AMDS™ Hybrid Prosthesis in acute DeBakey Type I dissections in the presence of malperfusion. The HDE allows for, subject to certain restrictions, commercial distribution of AMDS in the United States (“US”) prior to the approval of a Premarket Approval Application, which we currently anticipate receiving in 2026 allowing for full commercial distribution of AMDS in the US.

Current wording

Constant currency revenues from the sales of aortic stent grafts increased 31% and 24% for the three and nine months ended September 30, 2025, respectively, as compared to the three and nine months ended September 30, 2024. Revenues for the three and nine months ended September 30, 2025 increased in all geographies, with the most significant increases in North America and Europe, the Middle East, and Africa (collectively, “EMEA”). The revenue increase in EMEA for the three and nine months ended September 30, 2025 was primarily due to an increase in volume of higher priced products within the aortic stent graft product line in direct (to hospitals) markets. The revenue increase in North America for the three and nine months ended September 30, 2025 was primarily due to sales of AMDS as a result of humanitarian device exemption (“HDE”) granted by the FDA in December 2024 for use of the AMDS™ Hybrid Prosthesis in acute DeBakey Type I dissections in the presence of malperfusion. The HDE allows for, subject to certain restrictions, commercial distribution of AMDS in the United States (“US”) prior to the approval of a Premarket Approval Application, which we currently anticipate receiving in 2026 allowing for full commercial distribution of AMDS in the US.

Previous wording

Revenues from the sales of On-X products increased 24% for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. This increase was primarily due to an increase in the volume of units sold as well as an increase in average sales price.

Current wording

Revenues from the sales of On-X products increased 25% for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024. This increase was primarily due to an increase in the volume of units sold as well as an increase in average sales price.

Previous wording

Revenues from the sales of On-X products increased 17% for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. This increase was primarily due to an increase in the volume of units sold as well as an increase in average sales price, partially offset by the effect of foreign exchange rates.

Current wording

Revenues from the sales of On-X products increased 20% for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024. This increase was primarily due to an increase in the volume of units sold as well as an increase in average sales price.

Previous wording

Constant currency revenues from the sales of On-X products increased 24% and 18% for the three and six months ended June 30, 2025, respectively, as compared to the three and six months ended June 30, 2024. Revenues for the three months ended June 30, 2025 increased in all geographies, with the most significant increase in North America. The increase in revenues in North America for thethree months ended June 30, 2025 was impacted by gains in the market share. Revenues for thesix months ended June 30, 2025 increased primarily in North America and EMEA, partially offset by a decrease in Asia Pacific (“APAC”). The increase in revenues in North America for the six months ended June 30, 2025 was impacted by gains in the market share. The increase in revenues from EMEA for the six months ended June 30, 2025 was primarily due to an increase in unit sales in indirect markets. The decrease in revenues in APAC for the six months ended June 30, 2025 was primarily due to a decrease in unit sales as a result of customer buying patterns.

Current wording

Constant currency revenues from the sales of On-X products increased 23% and 20% for the three and nine months ended September 30, 2025, respectively, as compared to the three and nine months ended September 30, 2024. Revenues for the three and nine months ended September 30, 2025 increased in all geographies, with the most significant increases in North America and EMEA. The increase in revenues in North America and EMEA for thethree and nine months ended September 30, 2025 was impacted by gains in the market share. The increase in revenues from EMEA for thethree and nine months ended September 30, 2025 was primarily due to an increase in unit sales in both indirect and direct markets.

Previous wording

Domestic revenues from the sales of On-X products accounted for 61% and 63% of total On-X revenues for the three and six months ended June 30, 2025, as compared to 59% and 61% for the three and six months ended June 30, 2024.

Current wording

Domestic revenues from the sales of On-X products accounted for 60% and 62% of total On-X revenues for the three and nine months ended September 30, 2025, respectively, as compared to 59% and 60% for the three and nine months ended September 30, 2024, respectively.

Previous wording

Revenues from the sales of surgical sealants increased 5% for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. This increase was primarily due to an increase in the volume of milliliters sold and, to a lesser extent, an increase in average sales prices, partially offset by the effect of foreign exchange rates.

Current wording

Revenues from the sales of surgical sealants increased 2% for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024. This increase was primarily due to an increase in the average sales prices, partially offset by a decrease in the volume of milliliters sold.

Previous wording

Revenues from the sales of surgical sealants increased 4% for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. This increase was primarily due to an increase in the volume of milliliters sold and, to a lesser extent, an increase in average sales prices.

Current wording

Revenues from the sales of surgical sealants increased 4% for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024. This increase was primarily due to an increase in the volume of milliliters sold and, to a lesser extent, an increase in average sales prices.

Previous wording

Constant currency revenues from the sales of surgical sealants increased 4% and 6% for the three and six months ended June 30, 2025, respectively, as compared to the three and six months ended June 30, 2024. The increase in revenues for the three months ended June 30, 2025 was primarily due to revenue increases in North America and APAC. The increase in revenues in North America for the three months ended June 30, 2025 was primarily due to an increase in unit sales. The increase in revenues in APAC for the three months ended June 30, 2025 was primarily due to an increase in unit sales. The increase in revenues for the six months ended June 30, 2025 was due to revenue increases in all geographies, with the most significant increase in Latin America (“LATAM”). The increase in revenues in LATAM for the six months ended June 30, 2025 was primarily due to an increase in unit sales in indirect markets.

Current wording

Constant currency revenues from the sales of surgical sealants increased 1% and 4% for the three and nine months ended September 30, 2025, respectively, as compared to the three and nine months ended September 30, 2024. The increase in revenues for the three months ended September 30, 2025 was primarily due to revenue increases in Latin America (“LATAM”), Asia Pacific (“APAC”), and North America, with the most significant increase in LATAM. The increase in revenues in LATAM for the three months ended September 30, 2025 was primarily due to an increase in the volume of units sold in both indirect and direct markets. The increase in revenues in LATAM, APAC, and North America for the three months ended September 30, 2025 were partially offset by a revenue decrease in EMEA, which was primarily due to a decrease in unit sales in direct markets. The increase in revenues for the nine months ended September 30, 2025 was due to revenue increases in LATAM, North America, and APAC, with the most significant increase in LATAM. The increase in revenues in LATAM for the nine months ended September 30, 2025 was primarily due to an increase in unit sales in indirect markets. The increase in revenues in LATAM, APAC, and North America for the nine months ended September 30, 2025 were partially offset by a revenue decrease in EMEA, which was primarily due to a decrease in unit sales in direct markets.

Previous wording

Domestic revenues from the sales of surgical sealants accounted for 48% of total surgical sealant revenues for both the three and six months ended June 30, 2025, as compared to 47% and 49% of total surgical sealant revenues for the three and six months ended June 30, 2024.

Current wording

Domestic revenues from the sales of surgical sealants accounted for 44% and 47% of total surgical sealant revenues for both the three and nine months ended September 30, 2025 and 2024, respectively.

Previous wording

Other revenues increased 50% and 26% for the three and six months ended June 30, 2025, as compared to the three and six months ended June 30, 2024. The increase in other revenues for the three and six months ended June 30, 2025 was due to an increase in PerClot and PhotoFix product revenues.

Current wording

Other revenues increased 11% for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024. The increase was due to an increase in PerClot and PhotoFix product revenues.

Previous wording

Revenues from tissue processing increased 3% for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. The increase was primarily due to an increase in the volume of higher priced tissues shipped primarily due to the release of a backlog of tissues that resulted from the 2024 cybersecurity incident. The tissue backlog started to release during the second quarter of 2025 and is expected to improve throughout the remainder of 2025.

Current wording

Revenues from tissue processing increased 5% for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024. The increase was primarily due to an increase in the volume of higher priced tissues shipped primarily due to the release of a backlog of tissues that resulted from the 2024 cybersecurity incident. The tissue backlog released during the second and third quarters of 2025 and tissue shipments have now returned to normal levels.

Previous wording

Revenues from tissue processing decreased 11% for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. The decrease was primarily due to a backlog of tissues to be released for shipments as a result of the 2024 cybersecurity incident which started to release during the second quarter.

Current wording

Revenues from tissue processing decreased 6% for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024. The decrease was primarily due to a backlog of tissues to be released for shipments as a result of the 2024 cybersecurity incident as discussed above.

Previous wording

Cost of products increased 15% and 11% for the three and six months ended June 30, 2025, respectively, as compared to the three and six months ended June 30, 2024. Cost of products for the three and six months ended June 30, 2025 and 2024 included costs related to aortic stent grafts, On-X products, surgical sealants, and other products.

Current wording

Cost of products increased 14% and 12% for the three and nine months ended September 30, 2025, respectively, as compared to the three and nine months ended September 30, 2024. Cost of products for the three and nine months ended September 30, 2025 and 2024 included costs related to aortic stent grafts, On-X products, surgical sealants, and other products.

Previous wording

Cost of preservation services increased 14% and 4% for the three and six months ended June 30, 2025, respectively, as compared to the three and six months ended June 30, 2024. Cost of preservation services included costs for cardiac and vascular tissue preservation services.

Current wording

Cost of preservation services increased 8% and 5% for the three and nine months ended September 30, 2025, respectively, as compared to the three and nine months ended September 30, 2024. Cost of preservation services included costs for cardiac and vascular tissue preservation services.

Previous wording

The increase in cost of preservation services for the three months ended June 30, 2025 was primarily due to an increase in cost of certain tissues shipped, as compared to the three months ended June 30, 2024.

Current wording

The increase in cost of preservation services for the three months ended September 30, 2025 was primarily due to an increase in cost of tissues shipped and volume of certain tissues shipped, as compared to the three months ended September 30, 2024.

Previous wording

The increase in cost of preservation services for the six months ended June 30, 2025 was primarily due to an increase in the cost of tissues shipped, partially offset by a decrease in the volume of tissues shipped, as compared to the six months ended June 30, 2024.

Current wording

The increase in cost of preservation services for the nine months ended September 30, 2025 was primarily due to an increase in the cost of tissues shipped, partially offset by a decrease in the volume of tissues shipped, as compared to the nine months ended September 30, 2024.

Previous wording

The increase in gross margin for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, was primarily due to an increase in the volume of all products and tissues shipped as well as the increase in the average sales price of products and certain tissues shipped and favorable mix of certain products shipped for the three months ended June 30, 2025. The increase was partially offset by unfavorable cost of certain products and tissues shipped, as compared to the three months ended June 30, 2024. Gross margin as a percentage of total revenues was flat for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. Gross margin as a percentage of total revenues was positively impacted by favorable product mix as well as favorable pricing of certain products shipped, including aortic stent grafts, offset by unfavorable costs of certain products and tissues shipped during the three months ended June 30, 2025.

Current wording

The increase in gross margin for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, was primarily due to an increase in the volume of all products shipped as well as the increase in the average sales price of certain products and tissues shipped and favorable mix of certain products shipped for the three months ended September 30, 2025. The increase was partially offset by unfavorable cost of certain products and tissues shipped, as compared to the three months ended September 30, 2024. Gross margin as a percentage of total revenues increased for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024. Gross margin as a percentage of total revenues was positively impacted by a favorable geography and product mix as well as favorable pricing of certain products shipped, including On-X products and certain aortic stent grafts, partially offset by unfavorable costs of certain products and tissues shipped during the three months ended September 30, 2025.

Previous wording

The increase in gross margin for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, was primarily due to an increase in the volume of all products and tissues shipped as well as the increase in the average sales price of certain products and tissues shipped and favorable mix of certain products shipped for the six months ended June 30, 2025. The increase was partially offset by unfavorable cost of certain products and tissues shipped as well as an unfavorable mix of tissues shipped as compared to the six months ended June 30, 2024. Gross margin as a percentage of total revenues decreased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. Gross margin as a percentage of total revenues was negatively impacted by an unfavorable mix and costs of tissues shipped, partially offset by a favorable mix of certain products shipped, including aortic stent grafts, as well as favorable pricing of certain products during the six months ended June 30, 2025.

Current wording

The increase in gross margin for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, was primarily due to an increase in the volume of all products shipped as well as the increase in the average sales price of certain products and tissues shipped and favorable mix of certain products shipped for the nine months ended September 30, 2025. The increase was partially offset by unfavorable cost of certain products and tissues shipped as well as an unfavorable mix of tissues shipped, as compared to the nine months ended September 30, 2024. Gross margin as a percentage of total revenues increased for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024. Gross margin as a percentage of total revenues was positively impacted by a favorable geography and product mix as well as favorable pricing of certain products shipped, partially offset by an unfavorable mix of tissues shipped and an unfavorable cost of certain products and tissues shipped during the nine months ended September 30, 2025.

Previous wording

General, administrative, and marketing expenses increased 17% for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, which includes the impact of the Ascyrus contingent consideration fair value adjustment loss of $2.6 million and $1.8 million for the three months ended June 30, 2025 and 2024, respectively. The remaining general, administrative, and marketing expenses for the three months ended June 30, 2025 increased $7.5 million as a result of investments in sales and marketing, including expenses associated with the AMDS launch in the US, as well as investments in information technology, including $1.2 million of expenses associated with the 2024 cybersecurity incident, and increased non-cash stock compensation expenses.

Current wording

General, administrative, and marketing expenses increased 15% for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, which includes the impact of the Ascyrus contingent consideration fair value adjustment loss of $2.6 million and $3.5 million for the three months ended September 30, 2025 and 2024, respectively. The remaining general, administrative, and marketing expenses for the three months ended September 30, 2025 increased $8.2 million as a result of investments in sales and marketing, including expenses associated with the AMDS launch in the US, as well as investments in information technology, including $0.7 million of expenses associated with the 2024 cybersecurity incident, and increased non-cash stock compensation expenses.

Previous wording

General, administrative, and marketing expenses increased 40% for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, which includes the impact of the Ascyrus contingent consideration fair value adjustment gain of $0.2 million and $15.7 million for the six months ended June 30, 2025 and 2024, respectively. The remaining general, administrative, and marketing expenses for the six months ended June 30, 2025 increased $16.9 million as a result of investments in information technology, including $5.7 million of expenses associated with the 2024 cybersecurity incident, as well as investments in sales and marketing, including expenses associated with the AMDS launch in the US, and increased non-cash stock compensation expenses.

Current wording

General, administrative, and marketing expenses increased 30% for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, which includes the impact of the Ascyrus contingent consideration fair value adjustment loss of $2.4 million and gain of $12.2 million for the nine months ended September 30, 2025 and 2024, respectively. The remaining general, administrative, and marketing expenses for the nine months ended September 30, 2025 increased $25.1 million as a result of investments in information technology, including $6.4 million of expenses associated with the 2024 cybersecurity incident, as well as investments in sales and marketing, including expenses associated with the AMDS launch in the US, and increased non-cash stock compensation expenses.

Previous wording

Research and development expenses decreased 6% and 5% for the three and six months ended June 30, 2025, as compared to the three and six months ended June 30, 2024, respectively. Research and development spending for the three and six months ended June 30, 2025 was primarily focused on clinical work to gain regulatory approvals for certain aortic stent grafts.

Current wording

Research and development expenses increased 22% and 4% for the three and nine months ended September 30, 2025, as compared to the three and nine months ended September 30, 2024, respectively. Research and development spending for the three and nine months ended September 30, 2025 was primarily focused on clinical work to gain regulatory approvals for certain aortic stent grafts.

Previous wording

Interest expense was $7.3 million and $14.9 million for the three and six months ended June 30, 2025, respectively, as compared to $8.3 million and $16.1 million for the three and six months ended June 30, 2024, respectively. Interest expense for the three and six months ended June 30, 2025 decreased due to lower variable interest rates on our credit facilities.

Current wording

Interest expense was $6.1 million and $21.1 million for the three and nine months ended September 30, 2025, respectively, as compared to $8.4 million and $24.5 million for the three and nine months ended September 30, 2024, respectively. Interest expense for the three and nine months ended September 30, 2025 decreased primarily due to lower variable interest rates on our credit facilities and reduced interest expense as a result of the settlement of the Convertible Senior Notes. See Part I, Item 1, Note 8 of the “Notes to Condensed Consolidated Financial Statements” for further discussion of the settlement of the Convertible Senior Notes.

Previous wording

During the three and six months ended June 30, 2025 we recorded a loss on inducement of convertible debt of $2.7 million in connection with the settlement of our Convertible Senior Notes. See Part I, Item 1, Note 7 of the “Notes to Condensed Consolidated Financial Statements” for further discussion of our Convertible Senior Notes.

Current wording

During the nine months ended September 30, 2025 we recorded a loss on inducement of convertible debt of $2.7 million in connection with the settlement of our Convertible Senior Notes. See Part I, Item 1, Note 8 of the “Notes to Condensed Consolidated Financial Statements” for further discussion of our Convertible Senior Notes.

Previous wording

During the six months ended June 30, 2024 we recorded a loss on extinguishment of debt of $3.7 million in connection with the extinguishment of our previously existing credit facilities. See Part I, Item 1, Note 7 of the “Notes to Condensed Consolidated Financial Statements” for further discussion of our new credit facilities.

Current wording

During the nine months ended September 30, 2024 we recorded a loss on extinguishment of debt of $3.7 million in connection with the extinguishment of our previously existing credit facilities. See Part I, Item 1, Note 8 of the “Notes to Condensed Consolidated Financial Statements” for further discussion of our credit facilities.

Previous wording

Other (income) expense, net was $5.0 million and $8.0 million of income for the three and six months ended June 30, 2025, respectively, as compared to $1.0 million and $2.4 million of expense for the three and six months ended June 30, 2024, respectively. Other (income) expense, net for the three months ended June 30, 2025 primarily included a net $4.5 million gain from realized and unrealized effects of foreign currency gains and losses and a $0.5 million gain associated with fair value adjustments to loans issued pursuant to our Endospan agreements. Other (income) expense, net for the six months ended June 30, 2025 primarily included a net $7.4 million gain from realized and unrealized effects of foreign currency gains and losses and a $0.8 million gain associated with fair value adjustments to loans issued pursuant to our Endospan agreements. Other expense, net for the three and six months ended June 30, 2024 primarily included net losses of $0.9 million and $2.4 million, respectively, from realized and unrealized effects of foreign currency gains and losses.

Current wording

Other (income) expense, net was $0.4 million and $8.4 million of income for the three and nine months ended September 30, 2025, respectively, as compared to $2.4 million of income and less than $0.1 million of expense for the three and nine months ended September 30, 2024, respectively. Other (income) expense, net for the three months ended September 30, 2025 primarily included a $0.5 million gain associated with fair value adjustments to loans issued pursuant to our Endospan agreements, partially offset by a net $0.1 million loss from realized and unrealized effects of foreign currency gains and losses. Other (income) expense, net for the nine months ended September 30, 2025 primarily included a net $7.3 million gain from realized and unrealized effects of foreign currency gains and losses and a $1.2 million gain associated with fair value adjustments to loans issued pursuant to our Endospan agreements. Other (income) expense, net for the three and nine months ended September 30, 2024 primarily included net gains of $2.4 million and less than $0.1 million, respectively, from realized and unrealized effects of foreign currency gains and losses.

Previous wording

Our effective income tax rate was an expense of 61% and 29% for the three and six months ended June 30, 2025, respectively, as compared to a benefit of 13% and an expense of 48% for the three and six months ended June 30, 2024, respectively. Our income tax rate was primarily impacted by state income taxes, non-deductible executive compensation, and changes in our valuation allowance against our net deferred tax assets, partially offset by excess tax deductions on stock-based compensation and foreign provision to return adjustments.

Current wording

Our effective income tax rate was an expense of 8% and 11% for the three and nine months ended September 30, 2025, respectively, as compared to an expense of 81% and 66% for the three and nine months ended September 30, 2024, respectively. Our income tax rate was primarily impacted by state income taxes, non-deductible executive compensation, and changes in our valuation allowance against our net deferred tax assets, partially offset by excess tax deductions on stock based compensation and foreign provision to return adjustments.

Previous wording

Our primary uses of liquidity include the payment of operating expenses, capital expenditures, servicing of debt and the funding of acquisitions or other collaborative arrangements. Our primary sources of funding are operating cash flows and borrowings under our debt facilities. As of June 30, 2025 we had approximately $220.5 million of total principal indebtedness outstanding.

Current wording

Our primary uses of liquidity include the payment of operating expenses, capital expenditures, servicing of debt and the funding of acquisitions or other collaborative arrangements. Our primary sources of funding are operating cash flows and borrowings under our debt facilities. As of September 30, 2025 we had approximately $220.0 million of total principal indebtedness outstanding.

Previous wording

Our liquidity as of June 30, 2025 consisted of cash and cash equivalents of $53.5 million, unused commitments of $30.0 million under a revolving credit facility and unused commitments of $100.0 million on delayed draw term loan facility (see “Credit Facilities” below). As of June 30, 2025 approximately 47% of our cash and cash equivalents were held in foreign jurisdictions. Our practice is to maintain sufficient liquidity through cash from operations and our revolving credit facility to mitigate the impacts of any adverse financial market conditions on our operations. We believe that cash generated from operations, together with amounts available under our Term Loan Facilities, as defined below, will be sufficient to meet working capital requirements and anticipated capital expenditures, and other strategic uses of cash, if any, and debt payments, if any, over the next twelve months.

Current wording

Our liquidity as of September 30, 2025 consisted of cash and cash equivalents of $73.4 million, unused commitments of $30.0 million under a revolving credit facility, and unused commitments of $150.0 million on the new delayed draw term loan facility (see “Credit Facilities” below). As of September 30, 2025 approximately 31% of our cash and cash equivalents were held in foreign jurisdictions. Our practice is to maintain sufficient liquidity through cash from operations and our revolving credit facility to mitigate the impacts of any adverse financial market conditions on our operations. We believe that cash generated from operations, together with amounts available under our Term Loan Facilities, as defined below, will be sufficient to meet working capital requirements and anticipated capital expenditures, and other strategic uses of cash, if any, and debt payments, if any, over the next twelve months.

Previous wording

On January 18, 2024 we entered into a credit and guaranty agreement with Ares Management Credit funds (the “Ares Credit Agreement”) for $350.0 million of senior secured, interest-only, credit facilities, consisting of a $190.0 million secured term loan facility (the “Term Loan Facility”), a $100.0 million secured delayed draw term loan facility(the “Delayed Draw Term Loan Facility” and, together with the Term Loan Facility, the “Term Loan Facilities”) and a $60.0 million “senior-priority” secured revolving credit facility with a priority claim ahead of the other secured facilities (the “Revolving Credit Facility” and, together with the Term Loan Facilities, the “Credit Facilities”). Upon closing, we borrowed $190.0 million under the Term Loan Facility and $30.0 million under the Revolving Credit Facility. The proceeds of the initial borrowings were used along with cash on hand to pay off our previously existing credit agreement and pay related fees and expenses. The $100.0 million of undrawn availability under the Delayed Draw Term Loan Facility was established solely to make funds available in the event of a repurchase or repayment of the Convertible Senior Notes on or prior to a scheduled maturity date of July 1, 2025 (see below). The Delayed Draw Term Loan Facility was terminated on July 2, 2025 as we entered into separate, privately negotiated exchange agreements with the Holders ofthe Convertible Senior Notes as discussed below.

Current wording

On January 18, 2024 we entered into a credit and guaranty agreement with Ares Management Credit funds (the “Ares Credit Agreement”) for $350.0 million of senior secured, interest-only, credit facilities, consisting of a $190.0 million secured term loan facility (the “Term Loan Facility”), a $100.0 million secured delayed draw term loan facility(the “Delayed Draw Term Loan Facility” and, together with the Term Loan Facility, the “Term Loan Facilities”) and a $60.0 million “senior-priority” secured revolving credit facility with a priority claim ahead of the other secured facilities (the “Revolving Credit Facility” and, together with the Term Loan Facilities, the “Credit Facilities”). Upon closing, we borrowed $190.0 million under the Term Loan Facility and $30.0 million under the Revolving Credit Facility. The proceeds of the initial borrowings were used along with cash on hand to pay off our previously existing credit agreement and pay related fees and expenses. The Delayed Draw Term Loan Facility remained undrawn and was terminated on July 2, 2025 as we entered into separate, privately negotiated exchange agreements with the Holders ofthe Convertible Senior Notes as discussed below.

Previous wording

The final scheduled maturity date of the Credit Facilities is January 18, 2030. There are no scheduled repayments of principal required to be made prior to the final maturity date. We have the right to prepay loans under the Ares Credit Agreement in whole or in part at any time, subject to certain premium payment requirements. Amounts repaid in respect of loans under the Term Loan Facilities may not be reborrowed. The Credit Facilities currently bear interest at the Adjusted Term Secured Overnight Financing Rate (“Adjusted Term SOFR”) plus applicable margins. As of June 30, 2025 the aggregate interest rate was 10.55% and 8.30% per annum for the Term Loan Facilities and Revolving Credit Facility, respectively. See Part I, Item 1, Note 7 of the “Notes to Consolidated Financial Statements” for further discussion of our new Ares Credit Agreement.

Current wording

The final scheduled maturity date of the Credit Facilities is January 18, 2031. There are no scheduled repayments of principal required to be made prior to the final maturity date. We have the right to prepay loans under the Credit Agreement in whole or in part at any time, subject to certain premium payment requirements. Amounts repaid in respect of loans under the Term Loan Facilities may not be reborrowed. The Credit Facilities currently bear interest at the Secured Overnight Financing Rate (“SOFR”) plus applicable margins. As of September 30, 2025 the aggregate interest rate was 9.04% and 7.79% per annum for the Term Loan Facility and Revolving Credit Facility, respectively. See Part I, Item 1, Note 8 of the “Notes to Consolidated Financial Statements” for further discussion of our new Ares Credit Agreement.

Previous wording

In May 2025 we entered into separate, privately negotiated exchange agreements (“Exchange Agreements”) with the Holders ofthe Convertible Senior Notes. The transactions contemplated by the Exchange Agreements closed on May 28, 2025. Under the terms of the Exchange Agreements, the Holders exchanged an aggregate principal amount of approximately $99.5 million of the Convertible Senior Notes held by the Holders in exchange for an aggregate of 4,334,347 shares of our common stock. In addition, pursuant to the Exchange Agreements, we made a cash payment of approximately $1.7 million to the Holders in respect of accrued and unpaid interest on the exchanged Convertible Senior Notes.

Current wording

On June 18, 2020 we issued $100.0 million aggregate principal amount of 4.25% Convertible Senior Notes with a maturity date of July 1, 2025 (the “Convertible Senior Notes”). In May 2025 we entered into separate, privately negotiated exchange agreements (“Exchange Agreements”) with the Holders ofthe Convertible Senior Notes. The transactions contemplated by the Exchange Agreements closed on May 28, 2025. Under the terms of the Exchange Agreements, the Holders exchanged an aggregate principal amount of approximately $99.5 million of the Convertible Senior Notes held by the Holders in exchange for an aggregate of 4,334,347 shares of our common stock. In addition, pursuant to the Exchange Agreements, we made a cash payment of approximately $1.7 million to the Holders in respect of accrued and unpaid interest on the exchanged Convertible Senior Notes. The remaining$0.5 million in aggregate principal amount of the Convertible Senior Notes were settled on July 1, 2025 resulting in the issuance of 19,605 shares of our common stock.

Previous wording

Net cash used in operating activities increased $2.6 million during the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to an increase in working capital related to receivables and inventory, an increase in professional fees related to the 2024 cybersecurity incident, and a change in the timing of interest payments on our credit facilities executed in January 2024. We expect to continue to incur professional fees in the remainder of 2025 in connection with enhanced ongoing cybersecurity services.

Current wording

Net cash provided by operating activities increased $8.2 million during the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, primarily due to an increase in cash collected from customers due to an increase in revenues, which was partially offset by an increase in professional fees related to the 2024 cybersecurity incident, an increase in inventories and deferred preservation costs to support the increase in revenues, and a change in timing of interest payments on our credit facilities executed in January 2024. We expect to continue to incur professional fees in the remainder of 2025 in connection with enhanced ongoing cybersecurity services.

Previous wording

Net cash used in investing activities was $6.9 million and $6.1 million for the six months ended June 30, 2025 and 2024, respectively. During the six months ended June 30, 2025 cash flows used in investing activities included $6.9 million of cash used for capital expenditures.

Current wording

Net cash used in investing activities was $11.5 million and $16.8 million for the nine months ended September 30, 2025 and 2024, respectively. During the nine months ended September 30, 2025 cash flows used in investing activities included $11.5 million of cash used for capital expenditures.

Previous wording

Net cash provided by financing activities was $6.5 million and $0.6 million for the six months ended June 30, 2025 and 2024, respectively. The current year cash provided by financing activities was primarily due to $4.5 million of proceeds from the exercise of stock options and issuances of common stock and $3.1 million of proceeds from financing insurance premiums, partially offset by $0.6 million for principal payments on short-term notes payable.

Current wording

Net cash provided by financing activities was $8.9 million and $2.0 million for the nine months ended September 30, 2025 and 2024, respectively. The current year cash provided by financing activities was primarily due to $9.6 million of proceeds from the exercise of stock options and issuances of common stock and $3.1 million of proceeds from financing insurance premiums, partially offset by $1.8 million for payment of debt issuance cost and $1.4 million for principal payments on short-term notes payable.