Reported revenue of $381.9 million, up 7%
Constant currency revenue* and constant currency revenue, organic* up 5% and up 3%, respectively
Constant currency revenue, organic* increased 4%, excluding revenue from divested product line
GAAP operating margin of 11.6%, compared to 11.5% in prior year period
Non-GAAP operating margin* of 19.7%, compared to 19.3% in prior year period
GAAP EPS $0.68, up 39%
Non-GAAP EPS* $0.94, up 9%
Free cash flow* generation of $24.7 million, up 26%
Business Developments
On February 17, 2026, Merit sold certain assets related to the DualCap® product line to Health Line International Corporation for a purchase price of $28 million, of which $25.5 million was paid in cash at closing
On April 1, 2026, Merit acquired View Point Medical, Inc., manufacturer of the OneMark® Detection Imaging System and OneMark Tissue Markers, for $140 million, of which $90 million was paid in cash at closing
Beginning in the first quarter of 2026, Merit reorganized the presentation of revenue into two product categories, Foundational and Therapeutic - to better reflect the clinical uses of our diverse portfolio of products**
† Comparisons above are calculated for the current quarter compared with the first quarter of 2025, 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.
** Merit presented historical revenue information under the new product categories in a Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission (the "SEC") on April 13, 2026.
SOUTH JORDAN, Utah, April 30, 2026 (GLOBE NEWSWIRE) -- Merit Medical Systems, Inc. (NASDAQ:MMSI), a leading global manufacturer and marketer of healthcare technology, today announced financial results for the three-month period ended March 31, 2026.
"Merit delivered first quarter financial results that exceeded the high-end of our expectations," said Martha G. Aronson, Merit's President and CEO. "We delivered 3.7% organic, constant currency revenue growth, excluding the impact of a strategic divestiture. We also delivered solid improvement in our non-GAAP operating margin despite incremental year-over-year headwinds from tariffs, and growth in our non-GAAP earnings per share and free cash flow, which increased 9% and 26%, respectively, year-over-year."
Ms. Aronson continued: "We are pleased with the solid start to 2026 and remain confident in the team's ability to drive stable constant currency growth, improving profitability, and solid free cash flow in 2026, the final year of our Continued Growth Initiatives Program. Importantly, we continue to identify opportunities to enhance our long-term organic growth and profitability profile as evidenced by the strategic divestiture of a non-core product line in February and our acquisition of the OneMark System from View Point Medical on April 1, 2026. This acquisition expands Merit's portfolio of therapeutic oncology products with a differentiated oncology offering, serving a large and growing market opportunity, and is expected to contribute margin-accretive growth going forward."
Merit's revenue by product category for the three-month periods ended March 31, 2026 and 2025 was as follows (unaudited; in thousands, except for percentages):
Three Months Ended
Reported
Constant Currency*
March 31,
Impact of foreign
March 31,
2026
2025
% Change
exchange
2026
% Change
Foundational
$
255,479
$
240,382
6
%
$
(4,989
)
$
250,490
4
%
Therapeutic
126,398
114,969
10
%
(2,947
)
123,451
7
%
Total
$
381,877
$
355,351
7
%
$
(7,936
)
$
373,941
5
%
Financial Summary:
GAAP gross margin was 48.4%, compared to 48.4% for the first quarter of 2025. Non-GAAP gross margin* was 53.2%, compared to 53.4% for the first quarter of 2025.
GAAP operating margin was 11.6%, compared to 11.5% for the first quarter of 2025. Non-GAAP operating margin* was 19.7%, compared to 19.3% for the first quarter of 2025.
GAAP net income was $41.0 million, or $0.68 per share, compared to $30.1 million, or $0.49 per share, for the first quarter of 2025. Non-GAAP net income* was $56.7 million, or $0.94 per share, compared to $52.9 million, or $0.86 per share, for the first quarter of 2025.
As of March 31, 2026, Merit had cash and cash equivalents of $488.1 million and total debt obligations of $747.5 million, compared to cash and cash equivalents of $446.4 million and total debt obligations of $747.5 million as of December 31, 2025. Merit had available borrowing capacity of approximately $697 million as of March 31, 2026.
Fiscal Year 2026 Financial Guidance
Based upon the information currently available to Merit's management, for the twelve-months ending December 31, 2026, 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(2)
Prior Guidance(3)
Year Ending
% Change
Year Ending
% Change
Financial Measure
December 31, 2026
Y/Y
December 31, 2026
Y/Y
Total Revenue
$1.612 - $1.634 billion
6% - 8%
$1.610 - $1.630 billion
6% - 8%
Non-GAAP Earnings Per Share(1)
$4.01 - $4.15
5% - 8%
$4.01 - $4.15
5% - 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, 2026. Any offsetting impacts of the capped call associated with the Convertible Notes are not considered.
(2) "Updated Guidance" reflects the impacts of Merit's acquisition of View Point Medical, Inc. announced on April 1, 2026. Specifically, from the acquisition effective date of April 1, 2026 through December 31, 2026, the acquisition is projected to contribute revenue in the range of $2 million to $4 million and to dilute Merit's "Prior Guidance" for non-GAAP earnings per share by approximately $0.05, inclusive of approximately $2.0 million of lower interest income on cash balances used for the total purchase consideration and excluding approximately $5.3 million of non-cash and non-recurring transaction-related expenses, and to be dilutive to Merit's full-year 2026 GAAP net income and GAAP earnings per share.
(3) "Prior Guidance" reflects Merit's full-year 2026 financial guidance, previously introduced on February 24, 2026.
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 reasonably predict the amount and impact of these items and Merit believes inclusion of the most comparable GAAP financial measure, and 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, 2026 is subject to risks and uncertainties identified in this release and Merit's filings with the SEC. This guidance is based on information and estimates available to Merit as of April 30, 2026. 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
As previously announced, Merit will hold its investor conference call today, Thursday, April 30, 2026, at 4:30 p.m., Eastern Time, to discuss its results for the first quarter and provide an operational update. 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)
March 31,
December 31,
2026
2025
ASSETS
(Unaudited)
Current Assets
Cash and cash equivalents
$
488,080
$
446,404
Trade receivables, net
206,446
203,710
Other receivables
18,717
17,773
Inventories
352,386
333,705
Prepaid expenses and other assets
29,274
31,493
Prepaid income taxes
5,033
4,941
Income tax refund receivables
1,838
2,128
Total current assets
1,101,774
1,040,154
Property and equipment, net
433,957
428,401
Intangible assets, net
511,995
537,654
Goodwill
503,432
506,837
Deferred income tax assets
7,085
7,049
Operating lease right-of-use assets
86,376
87,600
Other assets
74,665
78,227
Total Assets
$
2,719,284
$
2,685,922
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Trade payables
$
67,853
$
60,551
Accrued expenses
122,515
159,486
Current operating lease liabilities
11,228
10,876
Income taxes payable
15,278
8,851
Total current liabilities
216,874
239,764
Long-term debt
735,160
734,038
Deferred income tax liabilities
19,664
19,665
Liabilities related to unrecognized tax benefits
2,248
2,248
Deferred compensation payable
17,373
17,542
Deferred credits
1,373
1,398
Long-term operating lease liabilities
75,175
76,658
Other long-term obligations
24,689
10,306
Total liabilities
1,092,556
1,101,619
Stockholders' Equity
Common stock
769,271
763,909
Retained earnings
865,025
824,030
Accumulated other comprehensive loss
(7,568
)
(3,636
)
Total stockholders' equity
1,626,728
1,584,303
Total Liabilities and Stockholders' Equity
$
2,719,284
$
2,685,922
CONSOLIDATED STATEMENTS OF INCOME(Unaudited, in thousands except per share amounts)
Three Months Ended
March 31,
2026
2025
Net sales
$
381,877
$
355,351
Cost of sales
197,080
183,331
Gross profit
184,797
172,020
Operating expenses:
Selling, general and administrative
118,210
107,486
Research and development
22,609
22,478
Contingent consideration (benefit) expense
(179
)
1,023
Total operating expenses
140,640
130,987
Income from operations
44,157
41,033
Other income (expense):
Interest income
3,900
3,790
