Welcome to the LeMate Vascular Q4 2025 Financial Results Conference Call. As a reminder, today's call is being recorded. At this time, I would like to turn the call over to Mr. Dorian LeBlanc, Chief Financial Officer of LeMate Vascular. Please go ahead, sir.

Good afternoon and thank you for joining us on our Q4 2025 conference call. With me on today's call is our CEO, George Lemaitre, and our president, Dave Roberts. Before we begin, I'll read our safe harbor statement. Today, we'll be making some forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, the accuracy of which is subject to risks and uncertainties. Wherever possible, we will try to identify those forward-looking statements by using words such as believe, expect, anticipate, pursue, forecast, and similar expressions. Our forward-looking statements are based on our estimates and assumptions as of today, February 25, 2026, and should not be relied upon as representing our estimates or views on any subsequent date. Please refer to the cautionary statement regarding forward-looking information and the risk factors in our most recent 10K and subsequent SEC filings, including disclosure of the factors that could cause results to differ materially from those expressed or implied. During this call, we may discuss non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures discussed in this call is contained in the Associated Press release and will be available in the Investor Relations section of our website, www.lemate.com. I'll now turn the call over to George Lemate.

Thanks, Dorian. Q4 featured 16% sales growth, a 71.7% gross margin, and 47% off-income growth. Q4 sales were led by Graf's, up 27%, Valvetom's up 20%, and Shunt's up 18%. EMEA grew 29%, APAC 20%, and the Americas 10%. Artigraph grew 29% worldwide in Q4 as our OUS launch continues. We now have approvals to sell autographed in 52 countries. International sales were $1.9 million in Q4 and $4 million in full year 2025. We expect to sell approximately $10 million of autographed internationally in 2026, contributing $6 million of sales growth for the year. In Q4, RFA vascular grew 19% and RFA cardiac grew 90%. As a reminder, we currently distribute RFA tissues in just three countries, the U.S., Canada, and the U.K. German distribution should begin in Q2, and we now expect to receive Irish approval in Q3. We also plan to file for approval in Austria, Holland, Belgium, Spain, and Switzerland this year. On a related note, we will be consolidating our Chicago RFA facility into Burlington in 2026 as we seek to simplify operations and reduce costs. We ended 2025 with 160 sales reps, up 5% year-over-year, and we plan to end 2026 with 170 to 180. We also expect to go direct in Poland in Q4. We've begun hiring a Polish general manager. This project will include an office, warehouse, customer service team, and several sales reps. We currently sell approximately $650,000 a year to our Polish distributor, and this will be the 32nd country where LeMate sells direct to hospitals. As mentioned on our November call, the 2026 U.S. price list reflects a blended 8% increase across the portfolio. On January 1, the price increase was installed and early results indicate hospital acceptance. Our U.S. customer service team tells us that this year's transition has been smoother than in years past. Our European customer service team also reports positive customer acceptance to a similar January 1st price increase. 2025 was another year of operating leverage at LeMate. Sales were up 14% and off-income was up 30%. And our 2026 guidance indicates another nice year on the horizon. 12% sales growth and 21% adjusted off-income growth. We recently hung our five-year goals on the conference room wall. We call them the 2030 planks. Our playbook remains simpler. Produce quality devices, build our vascular sales force, go direct in new countries, acquire niche products, and focus on profitability, cash flow, and dividends. I will now turn the call over to Dorian.

Thanks, George. Q4 organic revenue growth was 15%, with 9% price growth and 6% unit growth. Organic growth was broad-based both by geography and by product category. In Q4, our gross margin increased 240 basis points year-over-year to 71.7%. This increase was a result of higher ASPs and manufacturing efficiencies. Operating expenses in Q4 were $27.4 million, a 6% year-over-year increase. increase. Our margin expansion and moderated expense growth in Q4 led to operating income increasing 47% year-over-year to $18.8 million, an operating margin of 29%. Q4 fully diluted earnings per share, or $0.68, a 39% increase year-over-year. Our Q4 EPS includes a one-time loss on a mark-to-market adjustment in our investment portfolio of $0.5 million for an investment that has subsequently been sold. Overall, 2025 was a year of 14% organic revenue growth with 9% price growth and 5% unit growth, adjusted gross margin of 70.4%, 180 basis point improvement over 2024, adjusted operating margin of 26%, and adjusted EPS growth of 23%. Our adjusted numbers exclude the one-time benefit from the employee retention tax credit we see in Q3 2025. We ended 2025 with $359 million in cash and securities. Our free cash flow, cash from operations less capital expenditures, in 2025 was $74.5 million. In January 2026, we experienced a cyber incident that affected certain of our systems and data. We securely restored our critical systems and experienced minimal to no disruption in sales to our customers or in the manufacturing release of product. We do not believe the incident has had a material impact to our financial position or results, and we believe we have adequate insurance coverage. The estimated impact is reflected in our 2026 guidance. However, our review of the incident remains ongoing, and we are subject to various risks described in our SEC filings, including in our upcoming Form 10-K. On February 19th, our Board of Directors approved a new $100 million share repurchase program and a Q1 2026 dividend of 25 cents per share, an increase of 25% year over year. This is our 15th consecutive year increasing our dividend. Our increasing dividend underscores our continued focus on profitable growth, and that commitment is reflected in our 2026 guidance. We anticipate full year 2026 revenue of $280 million, organic sales growth of 12%, a gross margin of 72.1%, and operating income of $77.8 million, up 21% adjusted from a very strong 2025. We are guiding EPS of $2.91 per share, up 22% adjusted. The manufacturing transfer of our Chicago restore flow processing to Burlington and the opening of our new 34,000 square foot warehouse will drive an increase of capex to approximately 11 million dollars for the year. Our guidance implies a constant euro-US dollar exchange rate of 1.18 for the year and an anticipated yield on our invested cash of 4%. The LeMate franchise delivered in 2025 with a focus on niche markets, our direct-to-hospital sales model, our growing commercial organization, in our disciplined expense and capital management. Thanks to our focused and dedicated global teams, we believe we are poised for another successful year in 2026. Finally, we would like to welcome Kyle Bowser to the call. Kyle has picked up the coverage of LeMate at Roth. Thank you, Kyle, and we look forward to the continued coverage. With that, I'll turn the call over for questions.

To ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. Please stand by while we compile the Q&A roster. Our first question comes from Kyle Balser with Roth Capital Partners. Your line is open.

Hi, good afternoon, and thank you for the welcome. It's a pleasure to be following the company. Maybe I'll just start off on guidance. Really nice finish to the year. Continued operating leverage in 2026. looks to have some nice continued operating leverage in the business. Can you maybe rank the factors that will be key to achieving the operating growth that's north of what the sales growth rate is? Just kind of explain the leverage in the business.

Sure. This is George, Kyle. How are you doing? And welcome to the call and welcome to covering the company. um yeah i the maybe looking backwards is a little bit of a look at the leverage but we're we've been pretty good at keeping headcount at a fairly you know stable level um we've been good at um growing our sales pricing our asps to the customers you're seeing that again here in at the beginning of 2026 and our gross margin we're getting a little more efficient also manufacturing our products so So, you know, old-fashioned operating leverage was what we showed last year to get to that. Was it 14% sales growth and 30% profit growth? And we expect more of the same next year.

Gotcha. Appreciate that. And, Jordan, your prepared remarks, you talked about the 8% blended increase for this year in prices, and it sounds like this year's transition was smoother than in the past. I guess any additional color around maybe why it was more difficult in the past

and more over kind of the outlook for future price increases. Is 8% still kind of what you're looking for going forward?

Of course. It's always on everyone's minds with us, so let's talk about prices a little bit. So we got – this year we decided to send the price lists out in November, on November 1st instead of December 1st, and I feel like that gave everyone a little bit more time, the sales reps, the customer service reps, and the hospital purchasers time to prepare for the transition in January. So we had a really nice transition, a really smooth transition, but it may also be worth pulling out. Everyone's like, well, is this business as usual? And I think why I'm calling it out in my script is I just want to communicate to folks, it feels like business as usual, maybe a little smoother than normal for bureaucratic reasons, but feels like business as usual. And the U.S., what I'll call rack rate price list increases. Kyle, you're new to this group, but we've read them out sort of in January previously, or sorry, at the first call in February previously, so I'll do it again here. But in 22, we had a 6.1% price hike for the U.S. hospitals 5.6% the next year 5.8% the next year 8.1 the next year and finally this year 8.3 so it's been getting a little a little bit higher but I would call this business as usual in the US and we're getting word back my European colleagues that it's business as usual as well over there okay appreciate it

just quick lastly I think reps 160 you expect to end the year at 170 to 180 do anticipate what does the cadence look like there it's going to steady evenly distributed across the year that's more back-end weighted security thank you

right Kyle of course you bumped into this one so I had been giving this quarterly and I think this is the first time we're going to try not to give this quarterly and just give it annually it's really hard to keep track of individual sales reps and when they're going to quit when they're going to get hired and things like that so I think we're not going to try to give you quarterly check-ins exactly. We may check in with it, but we won't tell you what we're trying to get to. I think you can think broadly that we're trying to tell you we're going to grow our sales force, and you already know a couple of them are going to be in Poland as well. So that includes the Polish move that we're talking about in my script. But I hope that suffices something like 170 to 180 at the end of the year. No, that makes sense. I appreciate that.

But, well, thanks again, and congrats on a really strong finish to the year. Thanks a lot, Kyle, and welcome.

Thank you. As a reminder, to ask a question, please press star 11 on your telephone. Again, that is star 11 to ask a question. Our next question comes from Rick Wise with Stiefel. Your line is open.

Good afternoon, George. Great to see the excellent quarter. A couple things. You highlighted in your starting remarks sort of who we are and what we do, the M&A, we acquire niche products, et cetera, et cetera. I hate to always hit the M&A question, but gosh, what a great job you're doing with the cash generation. I've seen it's $9 million. Surely all things equal. That number is going to be higher in 12 months, depending on how you manage the share buyback. But how do we think about the setup for M&A in 26? How important is it to you now? What are you thinking about?

You know, maybe I give you a quick intro, and then Dave will handle most of it. Obviously, Dave's here. I would say one of the, in a good way, one of the things we've been trying to prove over the last five years is that this company was a great operating company by itself and didn't have to rely on M&A, and I think the proof's in the pudding. We've had all these years of the organic growth rate of 17, 13, 14, and now who knows what happens this year. So we have had a bit of a chip on our shoulder about trying to prove to you guys that we could do it organically, but, of course, we went out and raised all this money. We're really in the game for M&A. Maybe Dave can expand a little bit more on how he sees the field right now.

Yeah, hi, Rick. Thanks for the question. Obviously, the center, the fairway for us, is still that open vascular area where, you know, we get 80% of our revenue. There are about 22 targets there, I think, as we've talked about. And frankly, we're in discussions with, you know, all of them, you know, some more actively than others. But it's not that broad of a universe. So, as you also know, we've started looking for acquisition targets in the cardiac surgery field. and that's 12% of our revenue. The sweet spot for us is revenues of anywhere from, I don't know, $15 to $150 million. And I think some of the larger ones might be, there are a few large ones in ovivascular, but some of the larger ones are in cardiac surgery. Do I feel more pressure to do an acquisition? I don't know. I feel like it's always the same. I always feel a lot of pressure to do a good acquisition, but in terms of the timing, I would say it's nice to have cash because the cash creates optionality, allows us to look larger, but as I've often said, it's more important to do a right acquisition that might not be as large than to just use all the cash. That's not what we're here to do. We'd love to find a great large acquisition, but we're looking for the right acquisition.

Sure. Thank you, Dave. And one more from me. Just maybe you could unpack the stellar, really, autographed performance in the quarter, and you highlighted a couple of points, but just help us understand sort of two things. One, maybe, is the TAM, is the opportunity perhaps bigger than the $8 million in Europe, For example, you talked about in the past, and I mean, you're already at a 2 million quarterly run rate in the fourth quarter, I think, if I'm remembering saying it right. But how sustainable is this? Any updated thoughts on the TAM?

Thank you. So, Rick, we knew we were going to have to get to this, and I would say I just take the blame for that one. We put that TAM out there. I guess we didn't exactly understand what we had in our hands, and it's a lot better than what we thought. so for fun again this is not too scientific but maybe we're going to call the TAM 30 million dollars now instead of eight and that's new for this phone call so thanks for calling us out on that you're right on that the TAM you can also add up right now we're already forget about TAM but the actual market that we're selling right now remember with that Omni flow ovine graft that sheep graft it's it's a piece of it and then we also have this new thing the autograph in Europe which you now know is 4 million and the other one is 6 million I'll give you that on this phone call we're looking backwards it's always sort of okay not going forward so there's 10 right there and maybe we call the TAM 30 right now it's going great it's I think it's ahead of expectations the doctors are more excited about it in some ways the the Omni flow which is the ovine sheep product sort of it smooths out the path for the doctors to be ready for the for the bovine version which is more robust and i would say more healthy uh less prone to issues post post implantation issues and things like that so um all good stuff over there the market's ready for it and we have a fantastic sales force of about i think 55 reps over there maybe right now 55 or 60 i should know the number uh 55 reps over there rick so yeah we're ready to go we keep going direct in all these new places it feels great it's a great launch at the right time for that company. And you could see what happened last year. The organic growth in Europe is 17%. Is that quarter or is that year? Is that year? Okay. Yeah. So 17% organic growth driven a lot by that product line. Hope I gave you what you wanted, Rick. Dave, you want to add something

about the different products maybe? I might add, Rick, that, you know, Artigraft in the U.S. is used primarily for dialysis access procedures. And in Europe, the algorithm for dialysis treatment is official first and then frankly they go right to a catheter which is you know difficult for patients due to the infection risk they skip over the middle step that we have in the US which is to implant access graft and that's where our graft is really shine so in Europe Omni flow the graft that George is referring to is used predominantly as a leg bypass graft, and we're seeing in early days, ArteGraft, the hospital to doctors are ordering the longer ones for use in the leg. I think that, I think we'll be developing the market for AV access graft, dialysis access graft in the arm, but we believe it's there strictly because we see the success in the US and the patient's benefit. So I think we're delighted by the uptake of autographed in Europe and outside the United States now. And I think we have a long-term growth potential there by expanding the use of it more into dialysis access.

Thanks, gentlemen. I appreciate all the call.

Thanks a lot, Rick. Thank you. Our next question comes from Michael Petoskey with Barrington Research. Your line is open.

Hey.

Good evening, guys.

So, George, I guess I'm curious about Europe and the strength there, and obviously Artograph gets some of the credit, but I'm just curious, do you feel like, you know, the way you guys approached MDR and sort of really got after it when some other competitors didn't or just decided to sort of throw in the towel on some products? I mean, is that part of what's driving that, too? And if that's the case, I'm just wondering how, you know, any anecdotes about picking up share and that sort of thing.

Sure. Okay. So it's a little bit of that. We've been pretty aggressive with MDR. In fact, just to sit on that point for a second, we got our final necessary MDR approval for our PTFE lifespan product. We couldn't be more excited about that. I think we have 22 approvals, and our regulatory gang has just done a knockdown job getting those things early for us. As to whether it's taking share because other people have fallen down on the job, other companies have not gotten their approvals, I think early on we were getting word that that was the case. I don't have additional stories. You heard a lot about our shunt where we were sort of left as the only man standing for a while. I think one or two of them are coming back on the market. But I would say we're thrilled where we are MDR-wise. I don't have new stories about material players dropping out of the market vis-a-vis MDRs. I will tell you, every time a company gets acquired in and around our space, I think the Edwards embolectomy catheters were acquired by BD a year and a half ago, somehow the larger companies that they get traded into, they don't treat these as well and they leave opportunities for us so maybe we have some opportunities around catheters because a very large competitor now owns the Edwards catheters but of course Edwards was large to start with so no new great war stories there just maybe we'll go direct where we go direct in Portugal last year we went direct in Czechia you're hearing us talk about Poland you know we're really covering the map over there and at some point we're going to be one of the largest vascular distribution channels in Europe. So maybe that always plays into our help over in Europe. Okay, great.

Let me ask one more question, my almost obligatory question on China. I know it's a tiny market for you, but I also know you're trying there, and I'm just wondering any updates in China.

Sure. And, you know, I think for the last three or four calls, Mike, and I appreciate you staying on the topic, it's been good news over there, and I've got another good one for you. which is I think we were up 24% in revenue in Q4. It's happening there for us as just a regular company. We're a $2 million company over there. It's small versus our guidance this year for revenues is $2.80. So you and I are now talking about a $2 million entity inside of a $2.80. So it's small, but it's growing like you'd expect it to grow in China. We're over the tariff thing. The way we got over that was we just raised prices. That's helped us a lot over there. We're profitable over there now for the first time ever. I think Q4 was a profitable quarter, and that's saying a lot. That's having come a long way from losing a million dollars a year over there on regulatory filings. The one sort of, I don't know what you say, negative over there is that we went over there to get Xenosure Cardiac approved, and we got it approved after a long, arduous clinical trial. And then, quite honestly, it's been a big nothing burger over there. So it's not happening because of that. It's happening because of everything else. We also separately have now finalized our application for Xenosure Vascular in China. We shall see what that leads to. I don't want to make a big deal out of it here, but as an organic operating business, forget about Xenosure and all the clinical trials on that. It's going great over there. We're thrilled. We've got a new manager. He started about a year and a half ago or so. He's doing a fantastic job.

Okay, great. I've got to ask this because I sort of almost can't believe the number. The 20% valvetomes, I mean, I think that product came out when I was roughly in college. I may be exaggerated, but it's pretty close, I think. How do you put up a plus 20 on a product that's around three decades or more? Thanks. Right. I mean, it's just a lot of focus and we have

the perfect channel. The whole channel was built around valvulatomes. For how long we've been at this, you're talking about that. I've been here 33 years, and we've been building brick by brick, a channel that's supposed to sell valvulatomes, and then other stuff that Dave would buy. So it's a perfectly built channel for that. But you don't want to get too far over your skis on it. Yeah, we had a great quarter, but units are roughly flat. We're not here in a market that's growing fast. So I don't want to oversell everything here. But yeah, it keeps working for us. I don't know what the unit number was in Q4. We had a 20% organic, no, 20% reported sales number in Q4. 17% organic. 17% organic. And I can't right now break that down for your units, Mike. I will say, in general, it's a flattish unit market, and we're doing it by spreading our wings around the world and finding new opportunities.

Mike, it's Dave. I would just add that the procedure in which a valvulatone is used is peripheral vein bypass and you know I agree with George we don't want to get over our skis overexcited but a couple years ago there was this this huge study done here in the United States this best CLI study from the NIH and it showed that peripheral bypass was a more robust procedure it held together longer with less complications, et cetera, than endovascular. Now, the big endovascular companies, they have the marketing firepower to grow their businesses, no question. But if you're wondering why, you know, the valvular tones are resilient and the units are staying flat and not going away in the face of a lot of endovascular competition and alternatives, I would say it's because it's a procedure that works. And so, yeah, good for us to have a good product offering in a procedure

that works for patients long term. Okay, great. And actually, you just brought to mind, I just want to ask before I get off, did you give the split between unit growth overall, not just for Valley but overall for the company in the quarter yeah this is Dorian like we

did it we was 9% price 5% units all right thank you so much that's the year

that's the year about 205 and a quarter of nine and six nine six okay great thank you thanks Mike thanks a lot those are good questions thank you our next

question comes from Jacob Laniak with Oppenheimer your line is open and good

evening guys just to start with what impact do you envision the crest to trial and carotid revascularization to have on your carotid artery stenting

business and has that been or how has that been factored it factored into the

died in. Hi Jacob, it's Dave. Thanks for the question. You know, it's funny, we just had a record quarter for our carotid shunt business, and so what, you know, how do you square that with the fact that CREST 2 came out? And I'll get to the takeaways in a second, but to give you a sense of the, you know, the scale, 15% of worldwide sales are used on carotid procedures. Those are shunts and patches. We get a little over 50% of our revenue OUS, but 80% of our shunt units are sold OUS. And so, you know, these CREST2 results, that's another NIH trial. I don't know what I don't know how long it will take to impact our US business our US business has been impacted by DCAR that alternative shunting excuse me stenting procedure for a while so so you know I feel I think we're really well positioned because we're so diversified geographically and then I'd also just, you know, CREST2 is a level one NIH study, but I would emphasize that, you know, if you peel back the onion, the exclusion criteria for stenting, they were able to exclude patients with long lesions, calcified lesions, tortuous arteries, etc., etc., whereas the carotid and our gregomy cohort did not have lesion-based exclusions. And so, you know, it was a little bit of an apples and orange comparison. And it turns out if you just had three of the patients in the stent, of the 600 patients in the stenting cohort have incidents after their procedure, there would have been no statistical benefit to stenting. And so it was really, you know, pretty close to a jump ball. And then when you factor in the exclusions, um you know i i think we have to see where this goes long term but in the meantime i think we're um pretty well positioned our carotid um shunt business is is kind of transitioning into an ous business and i think it's it's i think it's resilient for um a long time to come got it yeah i appreciate all the color on that um and then i guess back to the price versus units' growth, would you be able to break out for this last quarter the price versus volume

contributions within the various categories? Jacob, we've tried to stay away from that just for simplicity. So, no, we'd prefer not to, if you don't mind, George. Yeah, no problem. Thanks for the question. Thanks a lot, Jacob. Appreciate it.

Thank you. Our next question comes from Michael Sarkon with Jefferies. Your line is open. Hey, good afternoon, and thanks for taking the question. I just wanted to start on the gross margin side. Do you think you can walk through, you know, the puts and takes as we make our way through 2026? It would be helpful to get some color there.

Yeah, Mike, thanks. It's Dorian. And I think you saw a really nice step up throughout 2025. We had an 80 to 90 basis point step up each quarter. And when you adjust out the benefit of that tax credit, which on a reported basis gave us an extra 110 basis points. So we're up 180 basis points from 2024 to 2025 adjusted, and we're guiding to be up 170 basis points from 2025 to 2026. So we're seeing a nice continuation of that gross margin story. And obviously, we get the benefit from the pricing increases coming through. We've done a nice job of getting underperforming products out of the bag. We got rid of the ZO midway through the year, so that helped with that cadence of improvement in the gross margin in the second half of the year. But we've got some good manufacturing efficiencies that have come through, and all that offsets the normal inflationary pressures in cost of sales, but also some of that mix of the OUS business growing faster than the U.S. business. And we all know that the U.S. business has hired ASPs in general. Back half of the year, we'll have a little bit of pressure from the manufacturing transfer for the restore flow business and a little bit of pressure from opening the new 34,000 square foot warehouse we have here near the Burlington headquarters. But overall, It's just been a great gross gross margin story for us up 180 and guiding for another up 170

That's great. Thanks for the color during I guess a second one for Dean I apologize if it's been asked up top in between calls just any update on the M&A environment and with the pipeline looks like there

Yeah, hi Mike I answered the question a little bit earlier for Rick, but um, yeah the summary is the pipeline is in good shape. We're pretty busy these days, still hunting in open vascular surgery where there are 22 targets and cardiac surgery as well. But yeah, you know, the revenue sweet spot, as I mentioned, $15 to $150 million. Yeah, we're out hunting, and as soon as we have anything to report, we'll report back. Thanks so much, and sorry for the repeat

question. Thanks a lot, Mike. Thanks, Mike. Thank you. As a reminder to ask a question, please press star 11 on your telephone. Again, that is star 11 to ask a question. Our next question comes from Brett Fishman with KeyBank Capital Markets. Your line is open.

Hey, guys. Thank you very much for taking the questions. Just wanted to start with a follow-up on the OUS autograph launch. Again, we saw a really significant upside to your original expectations in 2025, the year coming in at $4 million rather than $2 million. I wanted to just double-click on where you saw the outperformance, just curious on what countries are performing the best. And then just thinking about the $10 million guidance for 2026, just curious on your approach to that, just thinking about the sequential progression the past two quarters, where it seems to be heading, if you view that as maybe a conservative approach to the year-over-year

ramp. Thank you. Okay, great. So the first part of the question is what countries, and it does feel like it's most of a Central Europe type thing right now, and I would call out what we call Dock, Germany, Austria, Switzerland, and then also I would say Holland has been, or Netherlands, if you will, has been really good. So maybe that's the strength so far, and it's just getting going in our very strong markets of Italy and Spain, we were trying to figure out should we allow them to have consignment, and we weren't going to do it, and then all of a sudden we changed, we decided to do it, so we're starting to ramp up specifically in Italy and Spain, and then in the UK, we really haven't gotten going as strongly as these other places, so I think you've gotten Central Europe really off to a fantastic start, and now you have Southern Europe, which we define as sort of France, Italy, Spain, and then Northern Europe, which is the uk the nordics to give if you will so i think you have a long long way to go here and we're not going to get involved in what inning we're in because we always get ourselves in trouble doing that but feels like you got a long way to go as for quarterly cadence we thought a lot about it and we decided to skip the hoo-ha of all that and just give you one yearly number we really don't feel comfortable guiding on one product line they're so small versus you know europe autograph what is it 10 this year versus 280 for the whole guidance it's still we don't want to get too zoned in on that topic so we're going to give you 10 and try not to break down for the quarters but still a nice answer you're going to pick up six million dollars in growth from that product line in Europe alone oh sorry and then also to isolate it's mostly a European and South African thing and it's not as much in other places that so far you have Canada to give you have Australia to give you just got the approvals but it's really a European and South Africa thing right now. All right. That was super helpful. And then I'll ask

one other question. I think it was more of a topic on the last earnings call, but just wanted to, you know, ask about the overall health of the APAC market. You commented on China already, but it looks like a bit of a bounce back quarter here. And just curious if you're still seeing any signs of softness in certain countries or back to business as usual in 26. Okay. Well, okay.

Yeah, it was a fantastic quarter. I think it was 20% up organically and reported. So it was a real solid 20%. It seemed like in Q4, everything sort of came back, maybe with the exception of Japan came back a little bit, but not as much as we would have wanted it to. So I would say I still feel a little softness in Japan, but, you know, we're going into the year with all kinds of optimism because China's now, in terms of the size of APAC, China's getting there. Korea also had a very specific incident around direct embolectomy catheters in Seoul. It's a long story. I'm not going to get into it. And that thing has gone, that's over now, and we're direct everywhere in Korea now. So you should get some nice action out of Korea as well as China, and that should bring you along here this year. But felt much better in Q4. We'll see what the next 12 months brings in Asia.

All right, great. Thank you, George.

Thank you. Our next question comes from Danny Stoddard with Citizens JMP. Your line is open.

Yeah, great. Thanks for the questions. First one, I wanted to ask on the restore flow cardiac call point. It sounded like it accelerated, I believe I heard 90%, and that's after a strong 2Q and 3Q. So I was curious what you saw in 4Q that is driving this performance, and then just more broadly, are there any recent trends in the area that are playing out thus far in 2026 that we should keep in mind here?

Okay. Maybe this thing called the Ross procedures sort of starting to dominate conversation inside of our company and the sales manager in the US is a fellow who lives in Toronto and he's been the guy who's generally been building the Canadian business around allografts he's now in charge of North America he's been in charge for a year and a half and I would say he's been pushing the cardiac side of allografts a lot harder in the US proper not just Canada anymore but in all of North America, what we call North America. We've really don't have much of a presence in Mexico, so it's mostly Canada and the U.S. So I would say it's a bit of that. We did a big training course down at Mount Sinai in New York in October around the cardiac device, and that sort of brought a lot of interest to that device. So, you know, we're in a spot where we don't have a lot of cardiac sales, so when you resell some stuff, it looks like a lot, but still, it's out of nothing five years ago. We had zero in sales five years ago, and now it is something. It's been a satisfying run, and I would say it's about the focus on cardiac. The vascular business itself is pretty good, too. It's a lot bigger, but it grew 19% in Q4. The vascular business is also doing well, but maybe the excitement is around cardiac. That's a great caller. Just one follow-up

for me. Staying with RestoreFlow, just with the manufacturing transfer of RestoreFlow from Chicago to Burlington, I may have missed this, but should we see this as benefit to gross margin in 2026? Is it already in that guidance, or is this more of a 2027 event? How should we

be thinking about that? Yeah, it's probably a slight headwind to margin in 2026 as we ramp up in one location and wind down in another. We do think that, you know, we're bringing it here as we have with other manufacturing transfers to have it centralized, to have better control over it, whether or not it improves gross margins long term. I mean, I think that's our hope, but, you know, we'll get it transferred first and think about 2027 when it comes, but all the costs are fully baked into our 2026 guns. Great. I appreciate it. Thank you.

Thanks, Dan. Thank you. Our next question comes from Jim Sidoti with Sidoti & Co. Your line is open.

Good afternoon. Thanks for taking the questions. A couple of modeling questions. In 2026 guidance, can you tell me what you're similar for tax rate and share count?

Yeah, tax rate I can give you. We had a Q425 tax rate of 23.2, and that was the same for the full year, 23.2 for 2023. So that's probably a pretty good number to plug in for your 2026 models. Share count, you know, it doesn't change a whole lot, just the option activity. We'll hit publish on the 10K in the morning, and I think you can pick up the numbers from there, or we can get them to you offline if you did them earlier.

Okay. It looks like it was down in the fourth quarter. I mean, is that a good number for 2026?

If you're looking at it being down off of Q3, remember in Q3 we had this nuance where because of the excess income from the tax credit, we actually flipped from the convertible being excluded to being included. So we had to take the dilutive impact of that. So it was a little bit wonky on the one time. So the Q4 number is the right number to look after.

okay all right and then um you talked about restore flow in ireland is that approved already

no it's not jim you're right to call that out we we had expected approval by the end of q2 at the last call and we're now calling for approval in q3 the filing was a little bit delayed it will go in in march and it was supposed to we thought it was going to go in earlier

Okay. All right. And then you've also talked about the headwind to consolidate Chicago into Burlington. Is that significant, or is that a million, less than a million, more than a million?

Can you give us some sense on that? I think we'll see. It's fully baked into the guidance, and you can see we've got a pretty consistent gross margin guide here, 72.1 for the quarter, 72.1 for the year. So obviously not having a material impact. Okay. All right. And then the last one. Can you give me the operating cash flow of the quarter? Cash from operations was 23.1. CapEx was 1.8. Free cash flow, 21.3. Great. Thank you. You bet, Jim. Thank you.

Thanks a lot, Jim. Thank you. Ladies and gentlemen, that concludes today's conference. I would like to thank you for your participation, and you may now disconnect. Have a great day.