Merit Medical Reports Third Quarter 2025 Results and Updates Full-Year Guidance

Highlights†

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		$	339,845		$	1,121,970		$	1,001,356
Cost of sales		197,746			182,310			579,052			531,006
Gross profit		186,411			157,535			542,918			470,350

Operating expenses:
Selling, general and administrative		119,801			99,644			340,384			288,657
Research and development		23,966			20,527			70,811			62,272
Contingent consideration expense		32			103			1,198			292
Total operating expenses		143,799			120,274			412,393			351,221

Income from operations		42,612			37,261			130,525			119,129

Other income (expense):
Interest income		3,615			6,652			11,166			21,489
Interest expense		(6,754	)		(7,501	)		(20,097	)		(23,226	)
Other income (expense) — net		(933	)		245			(1,717	)		(544	)
Total other expense — net		(4,072	)		(604	)		(10,648	)		(2,281	)

Income before income taxes		38,540			36,657			119,877			116,848

Income tax expense		10,785			8,213			29,394			24,438

Net income	$	27,755		$	28,444		$	90,483		$	92,410

Earnings per common share
Basic	$	0.47		$	0.49		$	1.53		$	1.59
Diluted	$	0.46		$	0.48		$	1.49		$	1.57

Weighted average shares outstanding
Basic		59,245			58,231			59,095			58,110
Diluted		59,919			59,537			60,604			58,948

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)

	Nine Months Ended
	September 30,
	2025			2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	90,483		$	92,410
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		91,629			74,093
Gain on disposition of a business		(249	)		—
Write-off of certain intangible assets and other long-term assets		152			401
Amortization of right-of-use operating lease assets		8,693			9,043
Fair value adjustments related to contingent consideration liabilities		1,198			292
Stock-based compensation expense		33,563			18,958
Other adjustments		4,711			4,569
Changes in operating assets and liabilities, net of acquisitions		(31,319	)		(47,711	)
Total adjustments		108,378			59,645
Net cash, cash equivalents, and restricted cash provided by operating activities		198,861			152,055

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures for property and equipment		(57,252	)		(31,668	)
Cash paid for notes receivable and other investments		(14,936	)		(10,223	)
Cash paid in acquisitions, net of cash acquired		(122,834	)		(110,182	)
Other investing, net		(2,029	)		(2,133	)
Net cash, cash equivalents, and restricted cash used in investing activities		(197,051	)		(154,206	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock		22,179			15,424
Proceeds from (payments on) long-term debt		—			(76,063	)
Contingent payments related to acquisitions		(2,645	)		(209	)
Payment of taxes related to an exchange of common stock		(8,597	)		(1,592	)
Net cash, cash equivalents, and restricted cash provided by (used in) financing activities		10,937			(62,440	)
Effect of exchange rates on cash		3,047			724
Net increase (decrease) in cash, cash equivalents and restricted cash		15,794			(63,867	)

CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period		378,767			589,144
End of period	$	394,561		$	525,277

RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEETS:
Cash and cash equivalents		392,457			523,128
Restricted cash reported in prepaid expenses and other current assets		2,104			2,149
Total cash, cash equivalents and restricted cash	$	394,561		$	525,277

Non-GAAP Financial Measures

Although Merit’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), Merit’s management believes that the non-GAAP financial measures referenced in this release may provide investors with useful information regarding the underlying business trends and performance of Merit’s ongoing operations and can be useful for period-over-period comparisons of such operations. Non-GAAP financial measures used in this release include:

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 earnings per share; and
free cash flow.

Merit’s management team uses these non-GAAP financial measures to evaluate Merit’s profitability and efficiency, to compare operating and financial results to prior periods, to evaluate changes in the results of its operating segments, and to measure and allocate financial resources internally. However, Merit’s management does not consider such non-GAAP measures in isolation or as an alternative to measures determined in accordance with GAAP.

Readers should consider non-GAAP measures used in this release in addition to, not as a substitute for, financial reporting measures prepared in accordance with GAAP. These non-GAAP financial measures generally exclude some, but not all, items that may affect Merit’s net income. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which items are excluded. Merit believes it is useful to exclude such items in the calculation of non-GAAP gross profit and margin, non-GAAP operating income and margin, non-GAAP net income, and non-GAAP earnings per share (in each case, as further illustrated in the reconciliation tables below) because such amounts in any specific period may not directly correlate to the underlying performance of Merit’s business operations and can vary significantly between periods as a result of factors such as acquisition or other extraordinary transactions, non-cash expenses related to amortization or write-off of previously acquired tangible and intangible assets, certain employee termination benefits, expenses resulting from non-ordinary course litigation or administrative proceedings and resulting settlements, governmental proceedings or changes in tax or industry regulations, gains or losses on disposal of certain assets, equity method investment loss (income) from equity investees, and debt issuance costs. Merit may incur similar types of expenses in the future, and the non-GAAP financial information included in this release should not be viewed as a statement or indication that these types of expenses will not recur. Additionally, the non-GAAP financial measures used in this release may not be comparable with similarly titled measures of other companies. Merit urges readers to review the reconciliations of its non-GAAP financial measures to their most directly comparable GAAP financial measures included herein, and not to rely on any single financial measure to evaluate Merit’s business or results of operations.

Constant Currency Revenue

Merit’s constant currency revenue is prepared by converting the current-period reported revenue of subsidiaries whose functional currency is a currency other than the U.S. dollar at the applicable foreign exchange rates in effect during the comparable prior-year period and adjusting for the effects of hedging transactions on reported revenue, which are recorded in the U.S. dollar. The constant currency revenue adjustments of ($1.9) million and $ (0.8) million to reported revenue for the three and nine-month periods ended September 30, 2025, respectively, were calculated using the applicable average foreign exchange rates for the three and nine-month periods ended September 30, 2024.

Constant Currency Revenue, Organic

Merit’s constant currency revenue, organic, is defined, with respect to prior fiscal year periods, as GAAP revenue. With respect to current fiscal year periods, constant currency revenue, organic, is defined as constant currency revenue (as defined above), less revenue from certain acquisitions. For the three-month period ended September 30, 2025, Merit’s constant currency revenue, organic, excludes revenues attributable to products acquired in connection with (i) Merit’s merger transaction with Biolife Delaware, L.L.C. (“Biolife”) in May 2025 (the “Biolife Merger”) and (ii) the assets acquired from Cook Medical Holdings LLC in November 2024 (the “Cook Transaction”). For the nine-month period ended September 30, 2025, Merit’s constant currency revenue, organic, excludes revenues attributable to products acquired in connection with (i) the Biolife Merger, (ii) the Cook Transaction and (iii) the assets acquired from EndoGastric Solutions, Inc. in July 2024.

Non-GAAP Gross Profit and Margin

Non-GAAP gross profit is calculated by reducing GAAP cost of sales by amounts recorded for amortization of intangible assets and inventory mark-up related to acquisitions. Non-GAAP gross margin is calculated by dividing non-GAAP gross profit by reported net sales.

Non-GAAP Operating Income and Margin

Non-GAAP operating income is calculated by adjusting GAAP operating income for certain items which are deemed by Merit’s management to be outside of core operations and vary in amount and frequency among periods, such as expenses related 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, as well as other items referenced in the tables below. Non-GAAP operating margin is calculated by dividing non-GAAP operating income by reported net sales.

Non-GAAP Net Income

Non-GAAP net income is calculated by adjusting GAAP net income for the items set forth in the definition of non-GAAP operating income above, as well as for expenses related to debt issuance costs, gains or losses on disposal of certain assets, equity method investment loss (income) from equity investees, and other items set forth in the tables below.

Non-GAAP EPS

Non-GAAP EPS is defined as non-GAAP net income divided by the diluted shares outstanding for the corresponding period.

Free Cash Flow

Free cash flow is defined as cash flow from operations calculated in accordance with GAAP, less capital expenditures for property and equipment calculated in accordance with GAAP, as set forth in the consolidated statement of cash flows.

Other Non-GAAP Financial Measure Reconciliations

The following tables set forth supplemental financial data and corresponding reconciliations of non-GAAP financial measures to Merit’s corresponding financial measures prepared in accordance with GAAP, in each case, for the three and nine-month periods ended September 30, 2025 and 2024. The non-GAAP income adjustments referenced in the following tables do not reflect non-performance-based stock compensation expense of $4.6 million and $3.1 million for the three-month periods ended September 30, 2025 and 2024, respectively and $13.9 million and $9.6 million for the nine-month periods ended September 30, 2025 and 2024, respectively.

Reconciliation of GAAP Net Income to Non-GAAP Net Income
(Unaudited, in thousands except per share amounts)

	Three Months Ended
	September 30, 2025
	Pre-Tax			Tax Impact			After-Tax			Per Share Impact
GAAP net income	$	38,540		$	(10,785	)	$	27,755		$	0.46

Non-GAAP adjustments:
Cost of Sales
Amortization of intangibles		19,212			(4,539	)		14,673			0.24
Inventory mark-up related to acquisitions		183			(43	)		140			0.00
Operating Expenses
Contingent consideration expense		32			(5	)		27			0.00
Amortization of intangibles		2,560			(604	)		1,956			0.03
Performance-based share-based compensation (a)		9,028			(1,413	)		7,615			0.13
Corporate restructuring (b)		286			(67	)		219			0.00
Acquisition-related		(68	)		16			(52	)		(0.00	)
Medical Device Regulation expenses (c)		1,655			(391	)		1,264			0.02
Other (d)		74			(17	)		57			0.00
Other (Income) Expense
Amortization of long-term debt issuance costs		1,414			(334	)		1,080			0.02
Other non-operating loss (e)		260			(61	)		199			0.00

Non-GAAP net income	$	73,176		$	(18,243	)	$	54,933		$	0.92

Diluted shares											59,919

	Three Months Ended
	September 30, 2024
	Pre-Tax		Tax Impact			After-Tax		Per Share Impact
GAAP net income	$	36,657	$	(8,213	)	$	28,444	$	0.48

Non-GAAP adjustments:
Cost of Sales
Amortization of intangibles		14,896		(3,522	)		11,374		0.19
Inventory mark-up related to acquisitions		559		(132	)		427		0.01
Operating Expenses
Contingent consideration expense		103		(6	)		97		0.00
Amortization of intangibles		2,038		(482	)		1,556		0.03
Performance-based share-based compensation (a)		3,736		(609	)		3,127		0.05
Corporate restructuring (b)		2,084		(492	)		1,592		0.03
Acquisition-related		2,351		(555	)		1,796		0.03
Medical Device Regulation expenses (c)		1,983		(468	)		1,515		0.03
Other (d)		125		(30	)		95		0.00
Other (Income) Expense
Amortization of long-term debt issuance costs		1,477		(349	)		1,128		0.02

Non-GAAP net income	$	66,009	$	(14,858	)	$	51,151	$	0.86

Diluted shares									59,537

___________________

Note: Certain per-share impacts may not sum to totals due to rounding.

Reconciliation of GAAP Net Income to Non-GAAP Net Income
(Unaudited, in thousands except per share amounts)

	Nine Months Ended
	September 30, 2025
	Pre-Tax		Tax Impact			After-Tax			Per Share Impact
GAAP net income	$	119,877	$	(29,394	)	$	90,483		$	1.49

Non-GAAP adjustments:
Cost of Sales
Amortization of intangibles		55,798		(13,184	)		42,614			0.70
Inventory mark-up related to acquisitions		250		(59	)		191			0.00
Operating Expenses
Contingent consideration expense		1,198		29			1,227			0.02
Amortization of intangibles		7,497		(1,771	)		5,726			0.09
Performance-based share-based compensation (a)		19,681		(2,344	)		17,337			0.29
Corporate restructuring (b)		2,873		(678	)		2,195			0.04
Acquisition-related		2,088		(2	)		2,086			0.03
Medical Device Regulation expenses (c)		4,883		(1,153	)		3,730			0.06
Other (d)		103		(24	)		79			0.00
Other (Income) Expense
Amortization of long-term debt issuance costs		4,242		(1,002	)		3,240			0.05
Other non-operating loss (gain) (e)		11		(61	)		(50	)		(0.00	)

Non-GAAP net income	$	218,501	$	(49,643	)	$	168,858		$	2.79

Diluted shares										60,604

	Nine Months Ended
	September 30, 2024
	Pre-Tax		Tax Impact			After-Tax		Per Share Impact
GAAP net income	$	116,848	$	(24,438	)	$	92,410	$	1.57

Non-GAAP adjustments:
Cost of Sales
Amortization of intangibles		40,827		(9,654	)		31,173		0.53
Inventory mark-up related to acquisitions		559		(132	)		427		0.01
Operating Expenses
Contingent consideration expense		292		(31	)		261		0.00
Amortization of intangibles		5,546		(1,312	)		4,234		0.07
Performance-based share-based compensation (a)		9,396		(1,466	)		7,930		0.13
Corporate restructuring (b)		2,030		(479	)		1,551		0.03
Acquisition-related		3,610		(852	)		2,758		0.05
Medical Device Regulation expenses (c)		6,120		(1,445	)		4,675		0.08
Other (d)		302		(72	)		230		0.00
Other (Income) Expense
Amortization of long-term debt issuance costs		4,431		(1,046	)		3,385		0.06

Non-GAAP net income	$	189,961	$	(40,927	)	$	149,034	$	2.53

Diluted shares									58,948

___________________

Note: Certain per-share impacts may not sum to totals due to rounding.

Reconciliation of Reported Operating Income to Non-GAAP Operating Income
(Unaudited, in thousands except percentages)

	Three Months Ended						Three Months Ended				Nine Months Ended				Nine Months Ended
	September 30, 2025						September 30, 2024				September 30, 2025				September 30, 2024
	Amounts			% Sales			Amounts		% Sales		Amounts		% Sales		Amounts		% Sales
Net Sales as Reported	$	384,157					$	339,845			$	1,121,970			$	1,001,356

GAAP Operating Income		42,612		11.1		%		37,261	11.0	%		130,525	11.6	%		119,129	11.9	%
Cost of Sales
Amortization of intangibles		19,212		5.0		%		14,896	4.4	%		55,798	5.0	%		40,827	4.1	%
Inventory mark-up related to acquisitions		183		0.0		%		559	0.2	%		250	0.0	%		559	0.1	%
Operating Expenses
Contingent consideration expense		32		0.0		%		103	0.0	%		1,198	0.1	%		292	0.0	%
Amortization of intangibles		2,560		0.7		%		2,038	0.6	%		7,497	0.7	%		5,546	0.6	%
Performance-based share-based compensation (a)		9,028		2.4		%		3,736	1.1	%		19,681	1.8	%		9,396	0.9	%
Corporate restructuring (b)		286		0.1		%		2,084	0.6	%		2,873	0.3	%		2,030	0.2	%
Acquisition-related		(68	)	(0.0	)	%		2,351	0.7	%		2,088	0.2	%		3,610	0.4	%
Medical Device Regulation expenses (c)		1,655		0.4		%		1,983	0.6	%		4,883	0.4	%		6,120	0.6	%
Other (d)		74		0.0		%		125	0.0	%		103	0.0	%		302	0.0	%

Non-GAAP Operating Income	$	75,574		19.7		%	$	65,136	19.2	%	$	224,896	20.0	%	$	187,811	18.8	%

___________________

Note: Certain percentages may not sum to totals due to rounding.

(a)	Represents performance-based share-based compensation expense, including stock-settled and cash-settled awards.
(b)	Includes employee termination benefits associated with activities related to corporate restructuring initiatives and costs to terminate certain distribution contracts from our Biolife Merger.
(c)	Represents incremental expenses incurred to comply with the E.U. Medical Device Regulation.
(d)	Represents costs to comply with Merit’s corporate integrity agreement with the U.S. Department of Justice (the “DOJ”).
(e)	Includes gains and losses associated with the disposal of business units and equity method investment loss (income) from equity investees.

Reconciliation of Reported Revenue to Constant Currency Revenue (Non-GAAP), and Constant Currency Revenue, Organic (Non-GAAP)(Unaudited, in thousands except percentages)

			Three Months Ended							Nine Months Ended
			September30,							September30,
	% Change		2025			2024		% Change		2025			2024
Reported Revenue	13.0	%	$	384,157		$	339,845	12.0	%	$	1,121,970		$	1,001,356

Add: Impact of foreign exchange				(1,926	)		—				(778	)		—

Constant Currency Revenue (a)	12.5	%	$	382,231		$	339,845	12.0	%	$	1,121,192		$	1,001,356

Less: Revenue from certain acquisitions				(16,031	)		—				(51,445	)		—

Constant Currency Revenue, Organic (a)	7.8	%	$	366,200		$	339,845	6.8	%	$	1,069,747		$	1,001,356

___________________

(a)	A non-GAAP financial measure. For a definition of this and other non-GAAP financial measures, see the section of this release entitled “Non-GAAP Financial Measures.”

Reconciliation of Reported Gross Margin to Non-GAAP Gross Margin (Non-GAAP)
(Unaudited, as a percentage of reported revenue)

	Three Months Ended				Nine Months Ended
	September30,				September30,
	2025		2024		2025		2024
Reported Gross Margin	48.5	%	46.4	%	48.4	%	47.0	%

Add back impact of:
Amortization of intangibles	5.0	%	4.4	%	5.0	%	4.1	%
Inventory mark-up related to acquisitions	0.0	%	0.2	%	0.0	%	0.1	%

Non-GAAP Gross Margin	53.6	%	50.9	%	53.4	%	51.1	%

___________________

Note: Certain percentages may not sum to totals due to rounding.

ABOUT MERIT

Founded in 1987, Merit is engaged in the development, manufacture, and distribution of proprietary medical devices used in interventional, diagnostic, and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care, and endoscopy. Merit serves customers worldwide with a domestic and international sales force and clinical support team totaling more than 800 individuals. Merit employs approximately 7,400 people worldwide.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among others:

statements preceded or followed by, or that include the words, “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “intends,” “seeks,” “believes,” “estimates,” “projects,” “forecasts,” “potential,” “target,” “continue,” “upcoming,” “optimistic” or other forms of these words or similar words or expressions, or the negative thereof or other comparable terminology;
statements that address Merit’s future operating performance or events or developments that Merit’s management expects or anticipates will occur, including, without limitation, any statements regarding Merit’s projected revenues, earnings or other financial measures, Merit’s plans and objectives for future operations, Merit’s proposed new products or services, the integration, development or commercialization of the business or any assets acquired from other parties, future economic conditions or performance, the implementation of, and results which may be achieved through, Merit’s Continued Growth Initiatives Program or other business optimization initiatives, and any statements of assumptions underlying any of the foregoing; and
statements regarding Merit’s past performance, efforts, or results about which inferences or assumptions may be made, including statements proceeded or followed by the words "preliminary," "initial," "potential," "possible," "diligence," "industry-leading," "compliant," "indications," or "early feedback" or other forms of these words or similar words or expressions, or the negative thereof or other comparable terminology.

The forward-looking statements contained in this release are based on Merit management’s current expectations and assumptions regarding future events or outcomes. If underlying expectations or assumptions prove inaccurate, or risks or uncertainties materialize, actual results will likely differ, and could differ materially, from Merit’s expectations reflected in any forward-looking statements. Financial estimates are subject to change and are not intended to be relied upon as predictions of future operating results. Investors are cautioned not to unduly rely on any such forward-looking statements.

The following are some of the important risks and uncertainties that could cause Merit’s actual results to differ from management’s expectations in any forward-looking statements: risks and uncertainties associated with consequences of Merit’s executive succession planning activities and leadership transition; risks and uncertainties regarding trade policies or related actions implemented by the U.S. or other countries, including existing, proposed or prospective tariffs, duties or other measures; risks and uncertainties associated with Merit’s proposed acquisition of the C2 CryoBalloon device and related assets from Pentax of America, Inc., the possibility that Merit may not complete the proposed acquisition and, if the acquisition is completed, Merit’s integration of the acquired products and Merit’s ability to achieve projected financial results, product development and other projected benefits of the proposed acquisition; risks and uncertainties associated with Merit’s integration of the Biolife business and operations and its ability to achieve financial results, product development and other anticipated benefits of such acquisition; risks and uncertainties associated with Merit’s integration of products acquired in the Cook Transaction and Merit’s ability to achieve anticipated financial results, product development and other anticipated benefits of such acquisition; effects of the Convertible Notes on Merit’s net income and earnings per share performance; disruptions in Merit’s supply chain, manufacturing or sterilization processes; U.S. and global political, economic, competitive, reimbursement and regulatory conditions, including the ongoing “shutdown” of the United States government; modification or limitation of, or policies and procedures associated with, governmental or private insurance reimbursement policies; reduced availability of, and price increases associated with, components and other raw materials; increases in transportation expenses; risks relating to Merit’s potential inability to successfully manage growth through acquisitions generally, including the inability to effectively integrate acquired operations or products or commercialize technology developed internally or acquired through completed, proposed or future transactions; fluctuations in interest or foreign currency exchange rates and inflation; cybersecurity events; government scrutiny and regulation of the medical device industry; difficulties relating to development, testing and regulatory approval, clearance and maintenance of Merit’s products; the safety, efficacy and patient and physician adoption of Merit’s products; the ability to fully enroll and the outcomes of ongoing and future clinical trials and market studies relating to Merit’s products; litigation and other judicial proceedings affecting Merit; consequences associated with a Corporate Integrity Agreement executed between Merit and the U.S. Department of Justice; failure to comply with U.S. and foreign laws and regulations; restrictions on Merit’s liquidity or business operations resulting from its debt agreements; infringement of Merit’s technology or the assertion that Merit’s technology infringes the rights of other parties; product recalls and product liability claims; potential for significant adverse changes in governing regulations; changes in tax laws and regulations in the United States or other jurisdictions or exposure to additional tax liabilities which may adversely affect Merit’s effective tax rate; termination of relationships with Merit’s suppliers, or failure of such suppliers to perform; development of new products and technology that could render Merit’s existing or future products obsolete; market acceptance of new products; failure to comply with applicable environmental laws; changes in key personnel; labor shortages and increases in labor costs; price and product competition; extreme weather events; and geopolitical events. For a further discussion of the risks and uncertainties which may affect Merit’s business, operations and financial condition, see Part I, Item 1A. “Risk Factors” in Merit’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC, which Merit updated in Part II, Item 1A. “Risk Factors” in Merit’s Quarterly Reports on Form 10-Q for each of the quarters ended March 31, 2025, June 30, 2025 and September 30, 2025, which Merit filed with the SEC.

All subsequent forward-looking statements attributable to Merit or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Actual results will likely differ, and may differ materially, from anticipated results. Financial estimates are subject to change and are not intended to be relied upon as predictions of future operating results. Those estimates and all other forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by applicable law, Merit assumes no obligation to update or disclose revisions to estimates and all other forward-looking statements.

TRADEMARKS

Unless noted otherwise, trademarks and registered trademarks used in this release are the property of Merit Medical Systems, Inc., its subsidiaries, or its licensors.

Contacts:
PR/Media Inquiries: Sarah Comstock Merit Medical	Investor Inquiries: Mike Piccinino, CFA, IRC ICR Healthcare
+1-801-432-2864	+1-443-213-0509
sarah.comstock@merit.com	mike.piccinino@icrhealthcare.com

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.