Key Takeaways MMSI's WRAPSODY shows early adoption with NTAP inpatient coverage and potential outpatient TPT in 2026.New launches and acquisitions expand high-margin mix, supporting organic growth, pricing power and margins.MMSI targets sustained margin expansion and strong free cash flow to fund R&D and acquisitions through 2026.Merit Medical Systems, Inc. (MMSI) is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism, led by a solid performance in 2025 and ...

Company Overview - Merit Medical has appointed Martha Aronson as the new CEO, succeeding founder Fred Lampropoulos, effective October 3, 2025 [2] - Martha Aronson has extensive experience in the medical technology industry, having previously worked at Medtronic, Hill-Rom, and Ecolab Healthcare [2] Leadership - Martha Aronson expressed excitement about her new role and is joined by Raul Parra, the CFO, who has been with the company for 16 years and served as CFO for the last 7.5 years [1][2] Business Strategy - The presentation will cover a brief company history, an overview of the business, key products, and the go-to-market strategy [3]

Summary of Merit Medical Systems FY Conference Call Company Overview - **Company Name**: Merit Medical Systems (NasdaqGS: MMSI) - **CEO**: Martha Aronson, appointed on October 3, 2025, succeeding founder Fred Lampropoulos [1][2] - **Market Cap**: Over $5 billion with revenues of $1.5 billion as of 2025 [3][4] - **Employee Count**: Over 7,500 employees globally [3] - **Global Footprint**: Vertically integrated manufacturing in Salt Lake City, Tijuana, Galway, and Singapore [3] Financial Performance - **Revenue Growth**: Total revenue increased at a 10% compounded annual growth rate (CAGR) over the last three years [4] - **Revenue Segmentation**: Approximately 40% of revenue from international customers and 60% from U.S. customers [4] - **Product Segmentation**: Revenue reported in two segments: cardiovascular and endoscopy [4] - **Foundational Products**: Comprise about two-thirds of revenue with a 6% CAGR over the last three years [5] - **Therapeutic Products**: Comprise about one-third of revenue with a 19% CAGR over the last three years [5] Strategic Initiatives - **Mergers and Acquisitions**: Over $1 billion invested in M&A since 2016, crucial for growth [3] - **Continued Growth Initiatives (CGI)**: Targeting a 5%-7% CAGR in revenue, 20%-22% non-GAAP operating margin, and over $400 million in cumulative free cash flow from FY23 to FY26 [15][14] - **Recent Performance**: Preliminary revenue for 2025 projected at $1.5 billion, up 11% [15] Product Development and Innovation - **Cardiac Therapies**: One of the fastest-growing segments with mid-teens growth; includes lead extraction technology from Cook Medical [8] - **Endoscopy Portfolio**: Focus on GERD treatment and tumor localization for breast cancer with the Scout system [9][10] - **Renal Therapies**: Includes dialysis products and the WRAPSODY endoprosthesis for dialysis patients [10][11] Market Position and Competitive Strategy - **Customer Focus**: Emphasis on being a customer-focused organization, leveraging both organic and inorganic growth strategies [29] - **Acquisition Strategy**: Active in pursuing small tuck-in acquisitions to fill strategic gaps, with a disciplined financial approach [36][37] - **Global Market Strategy**: Direct sales combined with distributor partnerships in international markets [12] Challenges and Considerations - **Tariffs Impact**: Anticipated impact of $13-$15 million from tariffs in 2026 [23] - **OEM Business**: Experienced softness due to a slowdown in the coatings business in China [21] - **Reimbursement Issues**: WRAPSODY faced challenges with reimbursement approvals, but the company is pivoting its pricing strategy [30] Leadership Transition - **Board Changes**: Fred Lampropoulos resigned as chairman; F. Ann Millner appointed as new chairman [22] - **Leadership Confidence**: The transition is seen as smooth, with confidence in the internal team's readiness to continue the company's momentum [22] Future Outlook - **Focus on Growth**: Continued emphasis on scaling the business globally while reinforcing existing infrastructure [28] - **Long-term Planning**: Strategy development for 2027-2030 to be informed by current growth platforms [18] - **Investment in R&D**: Plans to prioritize R&D efforts based on customer needs and market opportunities [18][46] This summary encapsulates the key points from the conference call, highlighting Merit Medical's financial performance, strategic initiatives, product development, market positioning, challenges, and future outlook.

Revenue Performance - Merit Medical reported preliminary unaudited revenue for Q4 2025 in the range of approximately $389 million to $395 million, representing an increase of approximately 10% to 11% year-over-year[9]. - Preliminary unaudited constant currency revenue for Q4 2025 increased by approximately 8% to 10% year-over-year[9]. - The impact of foreign exchange on preliminary revenue was approximately $(4.4) million for the three-month period ended December 31, 2025[13]. - Merit Medical's preliminary unaudited revenue information should not be regarded as a reliable prediction of actual future results[23]. Financial Guidance and Reporting - The company plans to announce its financial results for the year ended December 31, 2025, and issue fiscal year 2026 guidance on February 24, 2026[7]. - Merit Medical's management emphasizes the importance of non-GAAP financial measures, such as constant currency revenue, for evaluating business trends and performance[10]. Strategic Initiatives - Merit Medical's Continued Growth Initiatives aim to achieve related financial targets for the three-year period ending December 31, 2026[5]. - Merit Medical is focused on integrating the C2 CryoBalloon device and related assets acquired from Pentax of America, Inc. in November 2025[19]. Leadership and Workforce - The company has undergone a leadership transition, with F. Ann Millner appointed as Chair of the Board effective January 5, 2026[1]. - Merit Medical employs approximately 7,500 people worldwide and serves customers globally with a sales force and clinical support team of over 800 individuals[17].

Core Viewpoint - Merit Medical Systems, Inc. has appointed Dr. F. Ann Millner as Chair of the Board following the resignation of Fred P. Lampropoulos, marking a significant leadership transition within the company [1][3][4]. Leadership Changes - Dr. Millner has been a director since 2015 and served as Lead Independent Director since July 2021, bringing extensive experience from her previous roles, including serving in the Utah State Senate and as President of Weber State University [2]. - Fred P. Lampropoulos resigned as a director and Chair of the Board on January 4, 2026, after concluding his role as Executive Chair on January 3, 2026, and his tenure as President and CEO on October 3, 2025 [3][4]. Company Performance - Preliminary unaudited revenue for the fourth quarter of 2025 is estimated to be between $389 million and $395 million, reflecting a year-over-year increase of approximately 10% to 11% [10]. - The constant currency revenue for the same period is projected to increase by approximately 8% to 10% year-over-year, indicating strong operational performance despite currency fluctuations [10][14]. Future Outlook - The company is focused on achieving its Continued Growth Initiatives and related financial targets for the three-year period ending December 31, 2026, emphasizing its commitment to delivering value to customers, employees, and shareholders [5]. - Merit plans to announce its financial results for the quarter and year ended December 31, 2025, and provide fiscal year 2026 guidance on February 24, 2026 [7].

Core Insights - Merit Medical Systems, Inc. (MMSI) is positioned for growth due to a strong product portfolio and solid performance in 2025, despite facing macroeconomic headwinds and forex volatility [2] - The company has experienced a 9% decline in shares this year, while the industry has grown by 12.5% and the S&P 500 has increased by 18.3% [2] Company Performance - Merit Medical has a market capitalization of $5.2 billion and projects a 9.6% growth rate over the next five years, with an average earnings surprise of 14.09% over the past four quarters [3] - The third quarter saw a 7.8% organic constant-currency growth, driven by strong performance in the Cardiovascular segment, particularly in Peripheral and Cardiac Intervention franchises [5][9] Positive Drivers - The demand for embolics like Embosphere and QuadraSphere remains robust, with balanced growth across the U.S., EMEA, and APAC regions, reducing dependence on any single market [6] - The gross margin reached a record 53.6%, with a 267-basis-point year-over-year expansion attributed to favorable product mix, pricing discipline, and improved distribution costs [10] - The company generated $52.5 million in quarterly free cash flow, up 38% year over year, while continuing to invest in R&D and acquisitions [10] Growth Catalysts - WRAPSODY CIE is gaining traction post NTAP reimbursement, with early adoption tracking ahead of expectations, which could significantly expand the addressable market [11][12] - The potential approval of Transitional Pass-Through (TPT) reimbursement for outpatient procedures could further accelerate WRAPSODY CIE's revenue growth [12] Key Challenges - Tariff-related costs could impact earnings significantly, with estimates ranging from $7.6 million to $16 million in 2025, depending on global trade policy developments [13] - Sales in China declined by 1% year over year, reflecting broader macroeconomic weakness, while OEM demand remains volatile, affecting revenue predictability [15][16] - Integration challenges from ongoing acquisitions could pose risks to near-term performance, particularly in the Endoscopy segment [17][18] Estimate Trends - The Zacks Consensus Estimate for earnings per share (EPS) for 2025 has increased by 4 cents to $3.73, with fourth-quarter 2025 revenue estimates at $387.5 million, indicating a 9.1% rise from the previous year [19]

Core Insights - Merit Medical Systems, Inc. will participate in the 44th Annual J.P. Morgan Healthcare Conference from January 12-15, 2026, in San Francisco, California [1] - The company will provide an overview and update on January 13th at 4:30 pm Pacific Time / 7:30 pm Eastern Time [2] - Presentation materials will be available on the investor relations website, along with a live audio webcast and a replay for approximately 90 days [3] Company Overview - Merit Medical, founded in 1987, develops, manufactures, and distributes proprietary medical devices for interventional, diagnostic, and therapeutic procedures, focusing on cardiology, radiology, oncology, critical care, and endoscopy [4] - The company has a global presence with a sales force and clinical support team of over 800 individuals and employs approximately 7,400 people worldwide [4]

Core Insights - The Cooper Companies (COO) is currently more attractive to value investors compared to Merit Medical (MMSI) based on earnings outlook and valuation metrics [3][7] Valuation Metrics - COO has a forward P/E ratio of 17.56, while MMSI has a forward P/E of 22.36 [5] - COO's PEG ratio is 2.26, compared to MMSI's PEG ratio of 2.32, indicating a more favorable earnings growth outlook for COO [5] - COO has a P/B ratio of 1.89, whereas MMSI's P/B ratio is 3.23, suggesting that COO is undervalued relative to its book value [6] Investment Grades - COO has a Zacks Rank of 2 (Buy) and a Value grade of B, while MMSI has a Zacks Rank of 3 (Hold) and a Value grade of C, indicating stronger overall performance for COO [3][6]

Summary of Merit Medical Systems FY Conference Call Company Overview - **Company**: Merit Medical Systems (NasdaqGS: MMSI) - **Industry**: Medical Device Industry - **Key Executives**: CEO Martha Aronson, CFO Raul Parra Core Points and Arguments 1. **Leadership Transition**: Martha Aronson has recently joined Merit Medical, bringing nearly 30 years of experience in the medical device industry, including roles at Medtronic, Hillrom, and Ecolab [2][5][6] 2. **Growth Strategy**: Merit Medical aims to continue its growth through both organic investments and acquisitions, with ongoing initiatives planned through the end of 2026 [5][10] 3. **Executive Leadership Team**: A new executive leadership team has been formed to focus on strategic planning for growth beyond 2026 [6][10] 4. **Financial Guidance**: Merit Medical is confident in achieving its Continuous Growth Initiatives (CGI) goals, which include a revenue CAGR of 5%-7% and operating margins of 20%-22% [15][18] 5. **Wrapsody Product Launch**: The recent launch of Wrapsody is progressing well, with adjustments made to pricing strategies to enhance market penetration [25][27][29] 6. **Market Dynamics**: The company is navigating challenges in the China market, with volume growth remaining strong despite a decrease in sales percentage due to volume-based purchasing [56][57] 7. **OEM Business Performance**: The OEM segment is expected to grow in the mid to high single digits, with current performance aligning with expectations [63] 8. **M&A Strategy**: The M&A strategy will evolve to be more intentional, focusing on strategic fits that enhance the offerings for existing physician groups [64][66] Additional Important Insights 1. **Founder Involvement**: Fred Lampropoulos, the founder, will transition to a non-executive chairman role but will remain available for consultation and to leverage his network [12][13] 2. **Wrapsody's Impact on Renal Portfolio**: The Wrapsody product is expected to positively influence the renal therapy portfolio, enhancing sales force engagement with physicians [50][51] 3. **Clinical Data and Pipeline**: Future developments related to Wrapsody will depend on new clinical data and trials, with the company committed to maintaining confidentiality until solid information is available [36][38] 4. **Market Sentiment**: There is a perception that the market may not fully appreciate Merit Medical's consistent performance and growth potential, particularly in light of recent tariff impacts [15][16] 5. **Competitive Landscape**: The company is aware of competitive pressures and is adjusting its strategies accordingly, particularly in pricing and product offerings [29][30] This summary encapsulates the key points discussed during the conference call, highlighting Merit Medical's strategic direction, market challenges, and growth initiatives.

Core Viewpoint - Investors in the Medical - Dental Supplies sector should consider Conmed (CNMD) and Merit Medical (MMSI) as potential value opportunities, with CNMD appearing to be the superior option based on valuation metrics [1]. Valuation Metrics - Both CNMD and MMSI currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions for both companies [3]. - CNMD has a forward P/E ratio of 9.52, while MMSI has a forward P/E of 23.65, suggesting that CNMD is more attractively priced [5]. - The PEG ratio for CNMD is 1.41, compared to MMSI's PEG ratio of 2.46, indicating that CNMD offers better value relative to its expected earnings growth [5]. - CNMD's P/B ratio is 1.31, while MMSI's P/B ratio is 3.38, further supporting the conclusion that CNMD is undervalued compared to MMSI [6]. - Based on these valuation metrics, CNMD holds a Value grade of A, whereas MMSI has a Value grade of C, reinforcing the view that CNMD is the superior value option [6].