Segment and Geographic Information
We have two reportable segments organized according to our products and services: Medical Devices and Preservation Services. The Medical Devices segment includes external revenues from product sales of aortic stent grafts, On-X, surgical sealants, and other product revenues. Aortic stent grafts include aortic arch stent grafts, abdominal stent grafts, and synthetic vascular grafts. Aortic arch stent grafts include our E-vita® Open NEO, E-vita Open Plus, Arcevo LSA, AMDSTM, NEXUS ONETM, NEXUS DUOTM, NEXUS TRETM, E-vita Thoracic 3G. Abdominal stent grafts include our E-xtra Design Engineering, E-nsideTM, ArtivexTM, E-tegraTM, E-ventusTM BX, TuvaTM BX, and E-liacTM products. Surgical sealants include BioGlue® Surgical Adhesive products. The Preservation Services segment includes external services revenues from the preservation of cardiac and vascular tissues. There are no intersegment revenues.
Our Chief Operating Decision Maker (“CODM”) is the Company’s Chairman, President, and CEO. The CODM reviews financial information to assess segment performance and determine how to allocate resources across segments.
The primary measure of segment performance, as assessed by our CODM, is segment gross margin or net external revenues less cost of products and preservation services. The CODM regularly reviews these costs, recognizing them as significant segment expenses. We do not segregate assets by segment; therefore, asset information is excluded from the segment disclosures below.
The following table summarizes revenues, cost of products and preservation services, and gross margins for our reportable segments (in thousands):
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Revenues: | | | | | |
| Medical devices | $ | 345,825 | | | $ | 290,230 | | | $ | 261,185 | |
| Preservation services | 95,505 | | | 98,307 | | | 92,819 | |
| Total revenues | 441,330 | | | 388,537 | | | 354,004 | |
| | | | | |
| Cost of products and preservation services: | | | | | |
| Medical devices | 112,781 | | | 99,385 | | | 84,595 | |
| Preservation services | 44,322 | | | 40,371 | | | 40,233 | |
| Total cost of products and preservation services | 157,103 | | | 139,756 | | | 124,828 | |
| | | | | |
| Gross margin: | | | | | |
| Medical devices | 233,044 | | | 190,845 | | | 176,590 | |
| Preservation services | 51,183 | | | 57,936 | | | 52,586 | |
| Total gross margin | $ | 284,227 | | | $ | 248,781 | | | $ | 229,176 | |
Net revenues by product were as follows (in thousands): `
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Products: | | | | | |
| Aortic stent grafts | $ | 159,371 | | | $ | 123,081 | | | $ | 107,469 | |
| On-X | 101,740 | | | 83,982 | | | 74,528 | |
| Surgical sealants | 76,602 | | | 73,898 | | | 68,016 | |
| Other | 8,112 | | | 9,269 | | | 11,172 | |
| Total products | 345,825 | | | 290,230 | | | 261,185 | |
| | | | | |
| Preservation services: | 95,505 | | | 98,307 | | | 92,819 | |
| Total revenues | $ | 441,330 | | | $ | 388,537 | | | $ | 354,004 | |
Net revenues by geographic location attributed to countries based on the location of the customer were as follows (in thousands):
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| US | $ | 214,075 | | | $ | 189,994 | | | $ | 179,485 | |
| International | 227,255 | | | 198,543 | | | 174,519 | |
| Total revenues | $ | 441,330 | | | $ | 388,537 | | | $ | 354,004 | |
Revenues attributed to customers in Germany accounted for 9%, 9%, and 8% of total revenues for the years ended December 31, 2025, 2024, and 2023, respectively.
As of December 31, 2025 and 2024, $43.5 million and $18.4 million of our long-lived assets were held in the US, respectively, where the corporate headquarters and a portion of our manufacturing facilities are located. Our long-lived international assets were $21.5 million and $18.0 million as of December 31, 2025 and 2024, respectively, of which 96% were located in Hechingen, Germany. As of December 31, 2025 and 2024, $254.1 million and $241.0 million, respectively, of our goodwill was allocated entirely to our Medical Devices segment.