Financial Data and Key Metrics Changes - The company reported total revenue of $382.5 million, up 13% year over year on a GAAP basis and up 12.5% year over year on a constant currency basis [7][9] - Non-GAAP operating margin increased nearly 109 basis points year over year to 21.2%, representing the highest performance in the company's history as a public company [9] - Non-GAAP EPS grew by 10%, exceeding expectations, and free cash flow increased by 20% year over year to $70 million [9][34] Business Line Data and Key Metrics Changes - Cardiovascular segment sales grew by 10% and endoscopy segment sales increased by 81% [26] - Cardiac intervention product sales rose by 23%, with organic growth of approximately 10% [27] - Peripheral intervention products and custom procedure solutions saw sales increases of 6% and 4%, respectively [28] Market Data and Key Metrics Changes - U.S. sales increased by 17% on a constant currency basis, while international sales grew by 7% year over year [30] - Sales in China decreased by 6%, attributed to the broader macro environment [31][75] - The company expects low double-digit growth in EMEA and mid-teens growth in the Rest of the World region, with approximately 2% growth in the APAC region [37] Company Strategy and Development Direction - The company announced the acquisition of BioLife Delaware LLC for $120 million, aimed at enhancing its product offerings in hemostatic solutions [10][11] - A comprehensive marketing plan for the Rhapsody CIE was launched, focusing on raising awareness and expanding physician relationships [14] - The pricing strategy for Rhapsody CIE is based on a premium price relative to competitors, supported by clinical evidence demonstrating its efficacy [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong execution and revenue growth despite a dynamic global macro environment [10] - The company acknowledged a two-quarter delay in securing add-on reimbursement for the outpatient setting but maintained long-term growth expectations for Rhapsody CIE [24][39] - Management emphasized the importance of their reimbursement strategy and ongoing engagement with CMS to secure necessary approvals [23][49] Other Important Information - The company updated its 2025 financial guidance, expecting GAAP net revenue growth of 10% to 11% and non-GAAP diluted EPS in the range of $3.52 to $3.72 [36][40] - The anticipated impact of tariffs on the cost of goods is expected to be significantly lower than previously forecasted [41][42] Q&A Session Summary Question: Clarification on Rhapsody reimbursement process - Management clarified that they applied for a new technology APC assignment but did not receive it, and they plan to submit for TPT by September 1 [49][50] Question: Confidence in securing TPT - Management expressed high confidence in meeting TPT guidelines and emphasized the strength of their product and data [62] Question: Sales performance in cardiac intervention - Management attributed the growth to internal product development and the strategic acquisition of Cook Medical, expecting continued strong performance [94][96]

Second Quarter 2025 Results Merit Medical Investor Call July 30, 2025 Fred Lampropoulos Chairman, CEO and President Raul Parra CFO 1 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This presentation 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: The forward-looking statements contained in this release are based on Me ...

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited H1 2025 financials show asset growth, increased sales, and positive operating cash flow, with significant cash used for acquisitions [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, reflects growth in total assets, liabilities, and stockholders' equity, primarily due to acquisitions Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$2,586,045** | **$2,418,603** | | Total Current Assets | $923,072 | $923,774 | | Goodwill | $504,555 | $463,511 | | **Total Liabilities** | **$1,097,997** | **$1,039,244** | | Long-term debt | $731,795 | $729,551 | | **Total Stockholders' Equity** | **$1,488,048** | **$1,379,359** | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Net sales increased for both Q2 and H1 2025, while net income and diluted EPS experienced slight declines Six Months Ended June 30, (in thousands, except per share data) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net sales | $737,813 | $661,511 | | Gross profit | $356,507 | $312,815 | | Income from operations | $87,913 | $81,868 | | Net income | $62,728 | $63,966 | | Diluted EPS | $1.03 | $1.09 | Three Months Ended June 30, (in thousands, except per share data) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net sales | $382,462 | $338,003 | | Gross profit | $184,487 | $161,100 | | Income from operations | $46,880 | $45,946 | | Net income | $32,581 | $35,726 | | Diluted EPS | $0.54 | $0.61 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased, but significant cash was used in investing activities, primarily for acquisitions, resulting in a net decrease in cash Cash Flow Summary for Six Months Ended June 30, (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $123,879 | $104,722 | | Net cash used in investing activities | $(172,986) | $(38,538) | | Net cash from (used in) financing activities | $11,302 | $(14,866) | | **Net (decrease) increase in cash** | **$(34,852)** | **$49,568** | | Cash at end of period | $343,915 | $638,712 | - Cash paid for acquisitions, net of cash acquired, was **$122.6 million** in the first six months of 2025, compared to only **$4.9 million** in the same period of 2024[19](index=19&type=chunk) [Condensed Notes to Consolidated Financial Statements](index=12&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, segment revenue growth driven by acquisitions, increased goodwill, a higher tax rate, and significant debt with available borrowing capacity - On May 20, 2025, Merit acquired Biolife for an upfront payment of **$120 million** plus **$6.3 million** in adjustments. The acquisition added **$92.7 million** in developed technology and **$38.3 million** in goodwill[30](index=30&type=chunk) Revenue by Segment - Six Months Ended June 30, (in thousands) | Segment | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Cardiovascular | $702,738 | $641,189 | +9.6% | | Endoscopy | $35,075 | $20,322 | +72.6% | | **Total** | **$737,813** | **$661,511** | **+11.5%** | - The company is cooperating with an SEC inquiry that began in January 2022 regarding its subsidiary's business activities in China. The outcome and potential loss cannot be reasonably estimated at this time[69](index=69&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses sales growth driven by segment and market demand, improved gross margin, increased operating expenses, a slight net income decline, and strong liquidity [Results of Operations](index=44&type=section&id=Results%20of%20Operations) H1 2025 sales growth was driven by acquisitions and segment performance, with improved gross margin, but increased operating expenses led to a net income decline Sales Growth by Segment - Six Months Ended June 30, 2025 vs 2024 | Segment | % Change | | :--- | :--- | | Cardiovascular | +9.6% | | Endoscopy | +72.6% | | **Total** | **+11.5%** | - The **17.2%** growth in Cardiac Intervention sales for H1 2025 was primarily driven by **$19.4 million** in sales from products acquired from Cook in November 2024[117](index=117&type=chunk) - The **72.6%** growth in Endoscopy sales for H1 2025 was favorably affected by **$14.7 million** in sales of the EsophyX® Z+ device acquired from EGS in July 2024[116](index=116&type=chunk) - SG&A expenses for H1 2025 increased by **16.7%** primarily due to higher labor-related costs from headcount additions, including those from the EGS, Cook, and Biolife acquisitions[124](index=124&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company maintains strong liquidity with substantial cash and available credit, despite significant cash usage for acquisitions and capital expenditures - The company holds **$343.9 million** in cash, cash equivalents, and restricted cash as of June 30, 2025, with **$69.7 million** held by foreign subsidiaries[134](index=134&type=chunk) - Capital expenditures are expected to be approximately **$90 million to $100 million** in 2025, partly for the construction of a new distribution facility in South Jordan, Utah[135](index=135&type=chunk) - As of June 30, 2025, the company had no outstanding borrowings under its revolving credit facility and had additional available borrowings of approximately **$697 million**[49](index=49&type=chunk)[138](index=138&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes were reported in market risk disclosures concerning currency exchange rates and interest rates - No material changes to market risk disclosures regarding currency exchange and interest rates were reported for the first six months of 2025[148](index=148&type=chunk) [Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls are effective, with ongoing integration of Biolife's internal controls not expected to cause material changes - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[149](index=149&type=chunk) - The company is in the process of integrating the internal controls of Biolife, acquired on May 20, 2025[151](index=151&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) An ongoing SEC inquiry regarding a China subsidiary is noted, with no other material legal proceedings expected - The company is involved in an ongoing SEC inquiry related to its subsidiary in China, as detailed in Note 10 of the financial statements[154](index=154&type=chunk)[69](index=69&type=chunk) [Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) Updated risk factors include adverse impacts from changing trade policies and tariffs, alongside challenges associated with leadership succession - The company identifies significant risks from changes in U.S. trade policies, including increased tariffs on raw materials and finished products imported from Mexico, Ireland, and China, which could increase manufacturing costs[157](index=157&type=chunk) - A new President and CEO, Martha Aronson, has been appointed effective October 3, 2025. The company acknowledges that this leadership transition is inherently difficult and could negatively impact relationships with stakeholders or cause operational disruptions[162](index=162&type=chunk) [Other Information](index=60&type=section&id=Item%205.%20Other%20information) No directors or officers reported adopting or terminating Rule 10b5-1 trading arrangements in Q2 2025 - No directors or officers adopted or terminated a Rule 10b5-1 trading plan in the second quarter of 2025[165](index=165&type=chunk) [Exhibits](index=61&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the Biolife merger agreement and CEO/CFO certifications - Key exhibits filed include the merger agreement for the Biolife acquisition and CEO/CFO certifications under Sarbanes-Oxley Sections 302 and 906[167](index=167&type=chunk)

Core Insights - Merit Medical Systems, Inc. reported revenue of $382.5 million for Q2 2025, reflecting a 13.2% increase compared to Q2 2024, with constant currency revenue up 12.5% and organic constant currency revenue up 6.7% [4][6][9] - The company has raised its 2025 revenue and non-GAAP earnings per share guidance due to stronger-than-expected financial performance in the first half of the year [5][11] - Non-GAAP EPS for Q2 2025 was $1.01, a 9.8% increase year-over-year, while GAAP EPS decreased by 11.6% to $0.54 [6][9] Financial Performance - For the first six months of 2025, Merit generated free cash flow of $89.1 million, an increase of 8.1% year-over-year [6] - The GAAP operating margin for Q2 2025 was 12.3%, down from 13.6% in the prior year, while the non-GAAP operating margin improved to 21.2% from 20.1% [6][8] - The company’s GAAP net income for Q2 2025 was $32.6 million, compared to $35.7 million in Q2 2024, while non-GAAP net income rose to $61.0 million from $53.8 million [9] Segment Performance - Revenue from the Cardiovascular segment for Q2 2025 was $258.1 million, with a 10.4% increase in constant currency terms [7] - The Endoscopy segment saw significant growth, with revenue reaching $18.4 million, an 80.8% increase in constant currency [7] Guidance and Outlook - The updated guidance for 2025 anticipates net sales between $1.495 billion and $1.507 billion, representing a year-over-year growth of 10% to 11% [11] - Non-GAAP EPS guidance for 2025 is projected to be between $3.52 and $3.72, reflecting a 2% to 8% increase [11] Balance Sheet Highlights - As of June 30, 2025, Merit had cash and cash equivalents of $341.8 million and total debt obligations of $747.5 million, with available borrowing capacity of approximately $697 million [10]

[Executive Leadership Transition](index=1&type=section&id=Executive%20Leadership%20Transition) Merit Medical announces Martha Aronson as the new President and CEO, with current CEO Fred Lampropoulos transitioning to Chairman of the Board [Appointment of New President and CEO](index=1&type=section&id=Appointment%20of%20New%20President%20and%20CEO) Merit Medical has appointed Martha Aronson as the new President and Chief Executive Officer, effective October 3, 2025, while current President and CEO Fred P. Lampropoulos will transition to Chairman of the Board - Martha Aronson has been named the new President and Chief Executive Officer, with the appointment becoming effective on October 3, 2025[1](index=1&type=chunk) - Fred P. Lampropoulos will step down as President and CEO but will continue to serve as the Chairman of the Board of Directors[1](index=1&type=chunk) [Background of Martha Aronson](index=1&type=section&id=Background%20of%20Martha%20Aronson) Martha Aronson brings extensive global healthcare experience, having held senior leadership positions at Ecolab, Hill-Rom Holdings, and Medtronic, along with a strong background in board governance - Ms. Aronson has significant executive experience, including roles as Executive Vice President at Ecolab, Senior Vice President at Hill-Rom Holdings, and nearly 20 years in various leadership roles at Medtronic[2](index=2&type=chunk) - She has extensive board experience, having served as a director for companies such as CONMED Corporation (where she was formerly Chair), Methode Electronics, Inc., and Cardiovascular Systems, Inc[2](index=2&type=chunk) - She holds a Bachelor of Arts in Economics from Wellesley College and a Master of Business Administration from Harvard Business School[3](index=3&type=chunk) [Statements on the Leadership Transition](index=1&type=section&id=Statements%20on%20the%20Leadership%20Transition) The transition is presented positively by all parties, with expressions of confidence in the new leadership and appreciation for the outgoing CEO's contributions - Outgoing CEO Fred Lampropoulos stated that Martha Aronson is "uniquely qualified to lead Merit into the future and drive its continued success"[2](index=2&type=chunk) - Incoming CEO Martha Aronson expressed her excitement to "look forward to building upon his remarkable legacy and leading the company into a future of continued excellence and innovation"[4](index=4&type=chunk) - Lead Independent Director Dr. F. Ann Millner, on behalf of the Board, thanked Fred Lampropoulos for his **38 years of leadership** and dedication, highlighting his commitment to medical innovation and employee well-being[4](index=4&type=chunk) [Preliminary Second Quarter 2025 Financial Results](index=2&type=section&id=Preliminary%20Second%20Quarter%202025%20Financial%20Results) Merit Medical announced preliminary unaudited revenue for Q2 2025 and scheduled an investor conference call for full results [Q2 2025 Preliminary Revenue](index=2&type=section&id=Q2%202025%20Preliminary%20Revenue) Merit Medical announced preliminary unaudited revenue for the second quarter ending June 30, 2025, to be in the range of $380 to $384 million Q2 2025 Preliminary Unaudited Revenue Results | Metric | Value Range | YoY Growth (Reported) | YoY Growth (Constant Currency) | | :--- | :--- | :--- | :--- | | Preliminary Revenue | $380 - $384 million | 12% - 14% | 11% - 13% | [Upcoming Investor Conference Call](index=2&type=section&id=Upcoming%20Investor%20Conference%20Call) The company plans to release its full financial results for Q2 2025 after the market closes on Wednesday, July 30, 2025, followed by an investor conference call - Full financial results for the quarter ended June 30, 2025, are scheduled for release after the stock market closes on Wednesday, July 30, 2025[6](index=6&type=chunk) - An investor conference call will be held on the same day, July 30, 2025, at 5:00 p.m. Eastern Time[6](index=6&type=chunk) [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) The company explains the use of constant currency revenue as a non-GAAP measure and provides its reconciliation to GAAP revenue [Explanation of Constant Currency Revenue](index=2&type=section&id=Explanation%20of%20Constant%20Currency%20Revenue) The company uses constant currency revenue as a non-GAAP measure to provide investors with insight into underlying business trends by removing foreign currency fluctuations - Constant currency revenue is a non-GAAP measure used to provide investors with useful information regarding underlying business trends by isolating the impact of foreign exchange rate fluctuations[7](index=7&type=chunk) - Management uses this measure internally to evaluate financial performance, compare results to prior periods, and allocate financial resources[8](index=8&type=chunk) - The measure is calculated by converting current-period revenue from foreign subsidiaries using the exchange rates from the comparable prior-year period and adjusting for hedging effects[10](index=10&type=chunk) [Reconciliation of Non-GAAP to GAAP Revenue](index=3&type=section&id=Reconciliation%20of%20Non-GAAP%20to%20GAAP%20Revenue) The company provides a reconciliation table detailing the adjustment from preliminary unaudited GAAP revenue to preliminary constant currency revenue for Q2 2025 Reconciliation of Preliminary Unaudited Revenue to Constant Currency Revenue (Q2 2025) | Description | % Change (YoY) | Q2 2025 (in thousands) | Q2 2024 (in thousands) | | :--- | :--- | :--- | :--- | | Preliminary Unaudited Revenue Range | 12.4 – 13.6% | $380,000 - $384,000 | $338,003 | | Add: Impact of foreign exchange | | ($2,300) | — | | **Preliminary Constant Currency Revenue (Non-GAAP)** | **11.7 – 12.9%** | **$377,700 - $381,700** | **$338,003** | [Company and Legal Information](index=4&type=section&id=Company%20and%20Legal%20Information) This section provides an overview of Merit Medical Systems, Inc. and includes cautionary statements regarding forward-looking information [About Merit Medical Systems, Inc.](index=4&type=section&id=About%20Merit%20Medical%20Systems,%20Inc.) Founded in 1987, Merit Medical develops, manufactures, and distributes proprietary disposable medical devices globally, employing approximately 7,300 people - Founded in 1987, Merit Medical is engaged in the development, manufacture, and distribution of proprietary disposable medical devices[13](index=13&type=chunk) - The company's products are used in interventional, diagnostic, and therapeutic procedures, particularly in cardiology, radiology, and oncology[13](index=13&type=chunk) - Merit employs approximately **7,300 people worldwide** and has a global sales and clinical support team of over **800 individuals**[13](index=13&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This section outlines the risks and uncertainties that could cause actual results to differ from forward-looking statements, including preliminary financial data - The release contains forward-looking statements, including preliminary unaudited revenue, which are subject to numerous risks and uncertainties detailed in the company's SEC filings[14](index=14&type=chunk) - Key risks include consequences of the executive succession, supply chain disruptions, global economic conditions, regulatory changes, and integration of acquisitions[14](index=14&type=chunk) - The preliminary financial information is subject to change upon completion of financial closing procedures and has not been audited or reviewed by an independent accounting firm[17](index=17&type=chunk)

Leadership Transition - Merit Medical Systems, Inc. has appointed Martha Aronson as the new President and CEO, effective October 3, 2025, while Fred P. Lampropoulos will continue as Chairman of the Board until that date [1][2] - Lampropoulos expressed confidence in Aronson's ability to lead the company, highlighting her qualifications and experience in global healthcare [2] - Aronson has a strong background, having held leadership roles at Ecolab, Hill-Rom, and Medtronic, and has served on various boards [2][3] Financial Performance - Merit announced preliminary unaudited revenue for Q2 2025 in the range of approximately $380 to $384 million, representing a projected increase of about 12% to 14% compared to Q2 2024 [5] - The preliminary constant currency revenue for the same period increased by approximately 11% to 13% year-over-year [5] - The impact of foreign exchange on preliminary revenue was a decrease of $2.3 million [12] Company Overview - Founded in 1987, Merit Medical specializes in developing, manufacturing, and distributing proprietary disposable medical devices for various medical procedures [13] - The company serves hospitals globally with a workforce of approximately 7,300 employees [13]

Company Overview - Merit Medical Systems, Inc. is a leading global manufacturer and marketer of healthcare technology, founded in 1987 [3] - The company specializes 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 [3] - Merit employs approximately 7,300 people worldwide and has a sales force and clinical support team totaling more than 800 individuals [3] Financial Results Announcement - Merit Medical Systems will release its financial results for the quarter ended June 30, 2025, after the close of the stock market on Wednesday, July 30, 2025 [1] - An investor conference call is scheduled for the same day at 5:00 p.m. Eastern [1] Accessing the Conference Call - Interested parties can pre-register for the conference call using a provided link, and registrants will receive confirmation with dial-in details [2] - A live webcast and slide deck will also be accessible through a specified link [2]

Investors with an interest in Medical - Dental Supplies stocks have likely encountered both Dentsply International (XRAY) and Merit Medical (MMSI) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while ...

Core Viewpoint - Investors in the Medical - Dental Supplies sector should consider Dentsply International (XRAY) as a potentially undervalued stock compared to Merit Medical (MMSI) [1] Group 1: Company Rankings and Valuation Metrics - Dentsply International has a Zacks Rank of 2 (Buy), while Merit Medical has a Zacks Rank of 4 (Sell), indicating a more favorable earnings estimate revision trend for XRAY [3] - XRAY has a forward P/E ratio of 8.25, significantly lower than MMSI's forward P/E of 27.73, suggesting XRAY may be undervalued [5] - The PEG ratio for XRAY is 1.12, while MMSI's PEG ratio is 2.70, further indicating XRAY's better valuation relative to expected earnings growth [5] Group 2: Additional Valuation Metrics - XRAY's P/B ratio is 1.55, compared to MMSI's P/B of 3.85, highlighting XRAY's more favorable market value relative to its book value [6] - These metrics contribute to XRAY's Value grade of A and MMSI's Value grade of D, reinforcing the view that XRAY is the better investment option for value investors [6]

Core Viewpoint - The analysis compares Align Technology (ALGN) and Merit Medical (MMSI) to determine which stock is more attractive to value investors, highlighting ALGN's stronger earnings outlook and better valuation metrics [1][3]. Valuation Metrics - ALGN has a forward P/E ratio of 16.57, while MMSI has a forward P/E of 28.45, indicating that ALGN is potentially undervalued compared to MMSI [5]. - The PEG ratio for ALGN is 1.48, suggesting a favorable earnings growth outlook, whereas MMSI's PEG ratio is 2.77, indicating a less attractive growth relative to its price [5]. - ALGN's P/B ratio stands at 3.30, compared to MMSI's P/B of 3.95, further supporting ALGN's valuation advantage [6]. Earnings Outlook - ALGN is noted for its improving earnings outlook, which enhances its attractiveness in the Zacks Rank model, suggesting it is a superior value option compared to MMSI [7].