Merit Medical Q4 Earnings & Revenues Beat Estimate, Margins Expand

Merit Medical Systems, Inc. MMSI reported fourth-quarter 2025 adjusted earnings per share (EPS) of $1.04, up 12% from the year-ago quarter’s level. The bottom line surpassed the Zacks Consensus Estimate by 8.3%.

GAAP EPS for the quarter was 63cents, up 37% year over year.

For the full year, adjusted EPS improved 11% to $3.83. GAAP EPS was $2.13, up 5%.

MMSI’s Revenue Details

Revenues amounted to $393.9 million in the reported quarter, up 11% year over year on a reported basis. The metric topped the Zacks Consensus Estimate by 0.8%.

Total revenues at constant exchange rate (CER) increased 10% year over year, whereas CER organic revenues increased 6.8%.

Full-year revenues totaled $1.52 billion, up 12% on a reported basis. Revenues were up 11% at CER and 7% at CER organic.

Merit Medical Systems, Inc. Price, Consensus and EPS Surprise

Merit Medical Systems, Inc. price-consensus-eps-surprise-chart | Merit Medical Systems, Inc. Quote

Merit Medical’s Geographic Results

The U.S. sales amounted to $238.2 million, which increased 11.6% year over year on a reported basis and 12% at CER. Our fourth-quarter projection was $235.1 million for the metric.

International sales amounted to $155.7 million, up 9.9% year over year on a reported basis and 6.2% at CER. This figure compares to our fourth-quarter projection of $148.3 million.

Revenues from the Asia-Pacific region were $62.7 million, up 3.1%year over year on a reported basis and 2.6% at CER. This figure compares to our fourth-quarter projection of $60.6 million.

Revenues from Europe, the Middle East and Africa region totaled $77.4 million, up 18.8% and 12.3% on a reported basis and at CER, respectively. This figure compares to our fourth-quarter projection of $75.9 million.

Revenues from the Rest of World region amounted to $15.6 million, down 0.2% and 4.5% on a reported basis and at CER, respectively. This figure compares to our fourth-quarter projection of $15.4 million.

MMSI’s Segmental Details

Merit Medical operates through two segments — Cardiovascular and Endoscopy.

The Cardiovascular unit reported fourth-quarter revenues of $373.9 million, up 11% on a reported basis and 9% at CER year over year. This figure compares to our segmental projection of $366.6 million for the fourth quarter.

The Cardiovascular segment includes four product categories — Peripheral Intervention (PI), Cardiac Intervention (CI), Custom Procedural Solutions (CPS) and original equipment manufacturer (OEM).

PI product line revenues totaled $154.9 million, up 15% on a reported basis and 13% at CER year over year. This compares to our projection of $151.8 million.

CI revenues of $117.2 million rose 23% on a reported basis and 21% at CER. This compares to our projection of $111.7 million.

CPS revenues increased 5% on a reported basis and 4% at CER to $53.6 million. This compares to our projection of $51 million.

OEM revenues declined 15% on a reported basis as well as at CER to $48.1 million. This compares to our projection of $52.1 million.

Endoscopy devices’ revenues totaled $20.1 million, up 15% year over year on a reported basis as well as at CER. This figure compares to our segmental projection of $20.3 million for the fourth quarter.

Merit Medical’s Margin Analysis

In the quarter under review, Merit Medical’sgross profit increased 12.9% year over year to $195.3 million. The adjusted gross margin expanded 100 basis points (bps) to 54.5%. We had projected a 53.4% gross margin for the fourth quarter.

Selling, general & administrative expenses increased 3.4% year over year to $114.8 million. Research and development expenses rose 5.3% year over year to $26.5 million.

Adjusted operating profit totaled $82.7 million, reflecting an 18.7% increase from the prior-year quarter’s level. The adjusted operating margin in the fourth quarter expanded 140 bps to 21%.

MMSI’s Financial Position

Merit Medical exited fourth-quarter 2025 with cash and cash equivalents of $446.4 million compared with $392.5 million at the end of the third quarter. Total long-term debt at the end of fourth-quarter 2025 was $734 million compared with $732.9 million in the previous quarter.

Cumulative net cash provided by operating activities at the end of fourth-quarter 2025 was $297.4 million compared with $220.8 million a year ago.

Merit Medical’s Guidance

MMSI issued its outlook for2026.

Net revenues for 2026 are projected to be between $1.61billion and $1.63 billion (reflecting an increase of 6-8% year over year on a reported basis). The Zacks Consensus Estimate is pegged at $1.60 billion.

Adjusted EPS for 2026 is projected to be in the range of $4.01-$4.15 (representing an increase of 5-8% year over year). The Zacks Consensus Estimate is pegged at $4.05.

Our Take on MMSI

Merit Medical exited the fourth quarter of 2025 with better-than-expected results. The year-over-year uptick in the top and bottom-lines was impressive. The company saw revenue growth in both its segments and across all the product categories, except OEM, within its Cardiovascular unit.

Robust revenue growth in the United States, EMEA and APAC was impressive. The expansion of both margins bodes well for the stock. The company also generated a strong free cash flow, which may be used for debt reduction or acquisition to drive inorganic growth.

Shares of the company were up 3.6% in after-hours trading on Feb. 24, following the strong earnings performance. The company’s shares have declined 6.5% in the past six months against the industry’s gain of 22.1%. The S&P 500 Index has risen 8.2% in the same period.

In October, Merit Medical signed a definitive asset purchase agreement with Pentax of America, Inc., a subsidiary of PENTAX Medical, Inc., to acquire the C2 CryoBalloon device and related technology.

However, persistent challenges stemming from the dynamic and uncertain global macroeconomic environment remain a cause for concern.

Merit Medical’s Zacks Rank and Other Key Picks

Merit Medical currently has a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the broader medical space are Intuitive Surgical ISRG, Veracyte VCYT and Cardinal Health CAH.

Intuitive Surgical, sporting a Zacks Rank #1 (Strong Buy) at present, reported fourth-quarter 2025 EPS of $2.53, which beat the Zacks Consensus Estimate by 12.4%. Revenues of $2.87 billion surpassed the Zacks Consensus Estimate by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 13% rise. The company beat on earnings in each of the trailing four quarters, the average surprise being 13.2%.

Veracyte, carrying a Zacks Rank #2 at present, reported third-quarter 2025 adjusted earnings per share (EPS) of 51 cents, which surpassed the Zacks Consensus Estimate by 59.4%. Revenues of $131.8 million beat the Zacks Consensus Estimate by 5.5%.

VCYT’s estimated earnings for 2026 implies a decline of 3.3% against the industry’s 16% rise. The company beat on earnings in each of the trailing four quarters, the average surprise being 45.1%.

Cardinal Health, currently carrying a Zacks Rank of 2, reported second-quarter fiscal 2026 adjusted EPS of $2.63, which surpassed the Zacks Consensus Estimate by 10%. Revenues of $65.6 billion beat the Zacks Consensus Estimate by 0.9%.

CAH has an estimated long-term earnings growth rate of 15% compared with the industry’s 9.4% rise. The company beat on earnings in each of the trailing four quarters, the average surprise being 9.3%.

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