LeMaitre sold more grafts and kept more of each dollar.
In the three months ended June 30, revenue rose 9.6% to $70.4 million, while operating income climbed 26.4% to $20.4 million. Operating margin widened from 25.1% to 29.0%, and diluted earnings per share rose 23.3% to $0.74 even as the diluted share count grew 7.2%.
That is the clean surface reading. The less tidy detail is what happened underneath the profit line: capital spending rose 87.0%, free-cash-flow margin fell 2.5 percentage points, and cash declined 2.0% to $26.6 million. LeMaitre generated more accounting profit, but more of the period’s revenue went toward investment, and less of revenue remained as free cash flow.
Management identified the main sales contributors directly:
"The increase was driven primarily by increased sales of grafts of $5.4 million, valvulotomes of $0.6 million, and shunts of $0.5 million, offset by decreased sales of patches of $1.1 million, due to the termination of our distribution agreement with Elutia in 2025, and catheters of $0.6 million."
10-Q 2026-08-05; revenue
Grafts did most of the heavy lifting. The smaller product lines were mixed, with patch sales lower after the Elutia distribution agreement ended.
The margin expansion had a similarly specific explanation:
"The increase in gross margin was driven primarily by sales price increases, favorable product mix, including decreased sales of comparatively lower margin porcine patches due to the decision to end our distribution agreement with 22 Elutia, and lower shipping costs."
10-Q 2026-08-05; revenue, margin
Gross margin rose from 70.0% to 72.1%, while gross profit increased 12.9% to $50.8 million. Price increases helped, but so did selling fewer comparatively low-margin patches and paying less for shipping. That makes the margin gain a combination of pricing and mix, not just a result of selling more devices.
Research and development also rose 36.9% to $4.8 million. Accounts receivable fell 2.3%, so the balance-sheet change was not a receivables build. The filing does not disclose what specifically drove the higher capital spending or the lower free-cash-flow margin.
The current figures extend a broader company pattern without making the investment question disappear. LeMaitre’s 2025 annual results showed a 71.5% gross margin and a 27.2% operating margin. The latest three-month period pushed both higher, while the cash balance moved slightly lower.
The Elutia link is a recurring piece of the company’s reporting, not a new counterparty appearing from nowhere. LeMaitre has disclosed the connection in five filings, and this report again ties the end of the distribution agreement to lower patch sales. The next disclosure that would sharpen the picture is the capital-spending line and free-cash-flow margin in LeMaitre’s next three-month report, alongside the reported 19.0% margin from this period.
LeMaitre’s latest 10-Q reports free-cash-flow margin of 19.0%, the figure to compare with the next three-month report.