LeMaitre Q3: Sales Up 11% but Gross Margin Slips 360 bps; $17M B. Braun Deal Closed
LMAT is trading near its 52-week low of $78.22 (3.0% above the low).
Summary
LeMaitre's Q3 10-Q shows 11% sales growth to $68.0 million but a 360 bps gross margin decline to 71.7% and lower operating income, alongside disclosure of a completed $17.0 million B. Braun vascular graft acquisition.
Key Events · Earnings and Guidance · LMAT
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Q3 Sales Up 11% to $68.0M
Net sales rose to $67.97 million from $61.05 million, driven by higher average selling prices, unit volumes and international Artegraft growth; graft sales added $4.5 million.
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Gross Margin Falls 360 bps
Gross margin dropped to 71.7% from 75.3%, mainly the $2.7 million ERC received in September 2025 and $0.5 million of PhasTIPP obsolescence charges; operating income fell to $17.7 million from $20.3 million.
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$17.0M B. Braun Acquisition Closed
On October 14, 2026 LeMaitre acquired B. Braun's vascular graft and vessel treatment portfolio for about $17.0 million — $14.4 million at closing and $2.6 million payable in twelve months — plus a $2.2 million inventory prepayment.
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Lease Restructuring Expands Burlington Footprint
October 2026 amendments terminate the 2 4th Avenue lease, extend four Burlington leases to December 2035, and grow 52-54 Third Avenue from 9,700 to 46,000 square feet through December 2036 with two five-year extension options.
Analysis · LMAT · Industrial Applications And Services
Sales grew 11% to $68.0 million, yet gross margin fell to 71.7% from 75.3% a year ago, largely because last year's quarter included a $2.7 million Employee Retention Credit that flattered the comparison, plus $0.5 million of PhasTIPP wind-down charges. Operating income still fell to $17.7 million from $20.3 million, so the top-line growth is not dropping through to profit. The filing also discloses that on October 14, 2026 LeMaitre closed the purchase of B. Braun's vascular graft portfolio for about $17.0 million, adding products and manufacturing capability while B. Braun supplies during the transition. With $27.5 million cash and $362.2 million in marketable securities against $172.5 million of 2.50% convertible notes due 2030, liquidity is not a concern.
How filings like this one have moved
In the 30 days to Nov 5, 2026, 33.4% of the 2397 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, LMAT was trading at $80.60 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $2B. The 52-week trading range was $78.22 to $118.01. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.