Conestoga Capital Advisors released its Q3 2025 investor letter, noting continued equity market momentum. The Conestoga Micro-Cap Composite returned 11.7%, lower than the Russell Microcap Growth Index’s 19.9%. Vericel Corporation (NASDAQ:VCEL) was highlighted, with a one-month return of 20.50% and a market cap of $1.839 billion as of October 21, 2025.

In the investor letter, Conestoga Capital Advisors discussed Vericel Corporation’s (NASDAQ:VCEL) performance, noting concerns about demand normalization and the stock’s underperformance. Despite solid MACI growth, a slight revenue miss in Q2 caused caution among investors regarding future potential.

Vericel Corporation (NASDAQ:VCEL) was not among the 30 most popular stocks among hedge funds. In Q2 2025, the company saw a 20% revenue increase, 74% gross margin, and a 112% rise in adjusted EBITDA. While recognizing Vericel’s potential, some believe AI stocks offer greater upside with less downside risk.

Another article covered Vericel Corporation (NASDAQ:VCEL) and listed the best small cap stocks with high upside potential. For more investor letters from hedge funds and leading investors, visit the hedge fund investor letters Q3 2025 page.

Read more at Yahoo Finance: Here’s Why Vericel Corporation (VCEL) Underperformed in Q3