Reported revenue of $384.2 million, up 13.0%
Constant currency revenue* and constant currency revenue, organic* up 12.5% and up 7.8%, respectively
GAAP operating margin of 11.1%, compared to 11.0% in prior year period
Non-GAAP operating margin* of 19.7%, compared to 19.2% in prior year period
GAAP EPS $0.46, down 3.0%
Non-GAAP EPS* $0.92, up 6.7%
Free cash flow* generation of $141.6 million over first nine months of 2025, up 17.6% year-over-year
† Comparisons above are calculated for the current quarter compared with the third quarter of 2024, unless otherwise specified. Amounts stated in this release are rounded, while percentages are calculated from the underlying amounts.
* Constant currency revenue; constant currency revenue, organic; non-GAAP gross profit and margin; non-GAAP operating income and margin; non-GAAP net income; non-GAAP EPS; and free cash flow figures (used here and below) are non-GAAP financial measures. A reconciliation of these financial measures to their most directly comparable GAAP financial measures is included under the heading "Non-GAAP Financial Measures" below.
SOUTH JORDAN, Utah, Oct. 30, 2025 (GLOBE NEWSWIRE) -- Merit Medical Systems, Inc. (NASDAQ:MMSI), a leading global manufacturer and marketer of healthcare technology, today announced revenue of $384.2 million for the quarter ended September 30, 2025, an increase of 13.0% compared to the quarter ended September 30, 2024. Constant currency revenue for the third quarter of 2025 increased 12.5% compared to the prior year period and constant currency revenue, organic, for the third quarter of 2025 increased 7.8% compared to the prior year period.
"Merit delivered better-than-expected financial performance in the third quarter, with top and bottom-line results exceeding the high-end of the company's expectations," said Martha G. Aronson, Merit's President and CEO. "We have increased our 2025 revenue and non-GAAP earnings per share guidance to reflect the stronger-than-expected third quarter results and remain confident in our team's ability to deliver strong execution, stable constant currency growth, improving profitability and solid cash flow generation this year."
Ms. Aronson continued: "I am proud to join the Merit Medical team and am committed to working closely with the executive leadership team, Fred and the rest of Merit's Board of Directors to achieve a smooth transition and continued strong execution towards our Continued Growth Initiatives Program and related financial targets for the three-year period ending December 31, 2026."
Merit's revenue by operating segment and product category for the three and nine-month periods ended September 30, 2025 and 2024 was as follows (unaudited; in thousands, except for percentages):
Three Months Ended
Reported
Constant Currency*
September 30,
Impact of foreign
September 30,
2025
2024(1)
% Change
exchange
2025
% Change
Cardiovascular
Peripheral Intervention
$
144,781
$
133,083
8.8
%
$
(602
)
$
144,179
8.3
%
Cardiac Intervention
116,682
90,240
29.3
%
(719
)
115,963
28.5
%
Custom Procedural Solutions
54,136
50,455
7.3
%
(441
)
53,695
6.4
%
OEM
50,826
49,077
3.6
%
(150
)
50,676
3.3
%
Total
366,425
322,855
13.5
%
(1,912
)
364,513
12.9
%
Endoscopy
Endoscopy Devices
17,732
16,990
4.4
%
(14
)
17,718
4.3
%
Total
$
384,157
$
339,845
13.0
%
$
(1,926
)
$
382,231
12.5
%
Nine Months Ended
Reported
Constant Currency *
September 30,
Impact of foreign
September 30,
2025
2024(1)
% Change
exchange
2025
% Change
Cardiovascular
Peripheral Intervention
$
424,907
$
397,535
6.9
%
$
444
$
425,351
7.0
%
Cardiac Intervention
331,674
273,723
21.2
%
(330
)
331,344
21.1
%
Custom Procedural Solutions
155,712
149,110
4.4
%
(666
)
155,046
4.0
%
OEM
156,870
143,676
9.2
%
(221
)
156,649
9.0
%
Total
1,069,163
964,044
10.9
%
(773
)
1,068,390
10.8
%
Endoscopy
Endoscopy Devices
52,807
37,312
41.5
%
(5
)
52,802
41.5
%
Total
$
1,121,970
$
1,001,356
12.0
%
$
(778
)
$
1,121,192
12.0
%
(1)
Commencing January 1, 2025, we reorganized our sales teams and product categories to include revenues from the sale of our spine devices under our OEM product category. Revenue figures for 2024 have been recast to reflect this realignment of our portfolio of spine products, representing approximately $5.7 million and $16.7 million in revenue for the three and nine-month periods ended September 30, 2024, within the OEM product category to provide comparability between the reported periods.
Merit's GAAP gross margin for the third quarter of 2025 was 48.5%, compared to GAAP gross margin of 46.4% for the third quarter of 2024. Merit's non-GAAP gross margin* for the third quarter of 2025 was 53.6%, compared to non-GAAP gross margin* of 50.9% for the third quarter of 2024.
Merit's GAAP net income for the third quarter of 2025 was $27.8 million, or $0.46 per share, compared to GAAP net income of $28.4 million, or $0.48 per share, for the third quarter of 2024. Merit's non-GAAP net income* for the third quarter of 2025 was $54.9 million, or $0.92 per share, compared to non-GAAP net income* of $51.2 million, or $0.86 per share, for the third quarter of 2024.
As of September 30, 2025, Merit had cash and cash equivalents of $392.5 million and total debt obligations of $747.5 million, compared to cash and cash equivalents of $376.7 million and total debt obligations of $747.5 million as of December 31, 2024. Merit had available borrowing capacity of approximately $697 million as of September 30, 2025.
Fiscal Year 2025 Financial Guidance
Based upon the information currently available to Merit's management, for the year ending December 31, 2025, absent the potential impact of trade policies and related actions implemented by the U.S. and other countries subsequent to today's date, material acquisitions, non-recurring transactions or other factors beyond Merit's current expectations, Merit anticipates the following financial results:
Revenue and Earnings Guidance*
Updated Guidance
Prior Guidance(2)
Financial Measure
Year Ending
% Change
Year Ending
% Change
December 31, 2025
Y/Y
December 31, 2025
Y/Y
Net Sales
$1.502 - $1.515 billion
11% - 12%
$1.495 - $1.507 billion
10% - 11%
Cardiovascular Segment
$1.430 - $1.441 billion
10% - 11%
$1.423 - $1.434 billion
9% - 10%
Endoscopy Segment
$72.0 - $74.0 million
32% - 34%
$72.0 - $73.0 million
32% - 34%
Non-GAAP
Earnings Per Share(1)
$3.66 - $3.79
6% - 10%
$3.52 - $3.72
2% - 8%
*Percentage figures approximated; dollar figures may not foot due to rounding
(1)
Merit's non-GAAP earnings per share reflect the dilutive impact of its 3.00% Convertible Senior Notes due 2029 (the "Convertible Notes") calculated using the if-converted method of approximately $0.04 per share for the year ending December 31, 2025. Any offsetting impacts of the capped call associated with the Convertible Notes are not considered.
(2)
"Prior Guidance" reflects Merit's full-year 2025 financial guidance, previously introduced on July 30, 2025.
2025 Net Sales Guidance - % Change from Prior Year (Constant Currency) Reconciliation*
Updated Guidance
Prior Guidance(1)
Low
High
Low
High
2025 Net Sales Guidance - % Change from Prior Year (GAAP)
10.7
%
11.7
%
10.2
%
11.1
%
Estimated impact of foreign currency exchange rate fluctuations
(0.5
%)
(0.5
%)
(0.5
%)
(0.5
%)
2025 Net Sales Guidance - % Change from Prior Year (Constant Currency)
10.3
%
11.2
%
9.7
%
10.6
%
*Percentage figures approximated and may not foot due to rounding
(1)
"Prior Guidance" reflects Merit's full-year 2025 financial guidance, previously introduced on July 30, 2025.
Merit does not provide guidance for GAAP reported financial measures (other than revenue) or a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP reported financial measures (other than revenue) because Merit is unable to predict with reasonable certainty the financial impact of various items which could impact Merit's future financial results, such as expenses attributable to acquisitions or other extraordinary transactions, non-cash expenses related to amortization or write-off of previously acquired tangible and intangible assets, certain employee termination benefits, performance-based stock compensation expenses, expenses resulting from non-ordinary course litigation or administrative proceedings and resulting settlements, governmental proceedings, and changes in governmental or industry regulations. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For the same reasons, Merit is unable to address the significance of the unavailable information, which could be material to future results. Specifically, Merit is not, without unreasonable effort, able to reliably predict the impact of these items and Merit believes inclusion of a reconciliation of these forward-looking non-GAAP measures to their GAAP counterparts could be confusing to investors or cause undue reliance.
Merit's financial guidance for the year ending December 31, 2025 is subject to risks and uncertainties identified in this release and Merit's filings with the U.S. Securities and Exchange Commission (the "SEC"). This guidance is based on information and estimates available to Merit as of October 30, 2025. Should known or unknown risks or uncertainties materialize or should underlying assumptions prove inaccurate, actual results will likely vary, and could vary materially, from past results and those anticipated, estimated or projected.
CONFERENCE CALL
Merit will hold its investor conference call today, Thursday, October 30, 2025, at 5:00 p.m., Eastern Time. To access the conference call, please pre-register using the following link. Registrants will receive confirmation with dial-in details. A live webcast and slide deck will also be available at merit.com.
CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30,
2025
December 31,
(Unaudited)
2024
ASSETS
Current Assets
Cash and cash equivalents
$
392,457
$
376,715
Trade receivables, net
210,292
190,243
Other receivables
19,062
16,588
Inventories
326,550
306,063
Prepaid expenses and other assets
31,369
28,544
Prepaid income taxes
3,651
3,286
Income tax refund receivables
2,152
2,335
Total current assets
985,533
923,774
Property and equipment, net
418,004
386,165
Intangible assets, net
538,400
498,265
Goodwill
507,427
463,511
Deferred income tax assets
16,284
16,044
Operating lease right-of-use assets
88,496
65,508
Other assets
76,854
65,336
Total Assets
$
2,630,998
$
2,418,603
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Trade payables
$
64,746
$
68,502
Accrued expenses
147,377
134,077
Current operating lease liabilities
10,612
10,331
Income taxes payable
7,740
3,492
Total current liabilities
230,475
216,402
Long-term debt
732,916
729,551
Deferred income tax liabilities
26,707
240
Liabilities related to unrecognized tax benefits
2,169
2,118
Deferred compensation payable
17,083
19,197
Deferred credits
1,424
1,502
Long-term operating lease liabilities
77,624
54,783
Other long-term obligations
13,192
15,451
Total liabilities
1,101,590
1,039,244
Stockholders' Equity
Common stock
747,103
703,219
Retained earnings
786,024
695,541
Accumulated other comprehensive loss
(3,719
)
(19,401
)
Total stockholders' equity
1,529,408
1,379,359
Total Liabilities and Stockholders' Equity
$
2,630,998
$
2,418,603
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, in thousands except per share amounts)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
Net sales
$
384,157
$
