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]

Core Insights - Dentsply International (XRAY) is currently viewed as a better value investment compared to Merit Medical (MMSI) based on various financial metrics and analyst outlooks [1][3][7] Valuation Metrics - XRAY has a forward P/E ratio of 8.73, significantly lower than MMSI's forward P/E of 28.03, indicating XRAY may be undervalued [5] - The PEG ratio for XRAY is 1.18, while MMSI's PEG ratio is 2.73, suggesting XRAY has a more favorable earnings growth outlook relative to its price [5] - XRAY's P/B ratio stands at 1.64, compared to MMSI's P/B of 3.89, further indicating XRAY's superior valuation [6] Analyst Ratings - XRAY holds a Zacks Rank of 2 (Buy), while MMSI has a Zacks Rank of 3 (Hold), reflecting a more positive earnings estimate revision for XRAY [3][7] - Based on the combination of earnings outlook and valuation metrics, XRAY is positioned as the superior value option in the medical-dental supplies sector [7]

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].

Core Viewpoint - Merit Medical Systems, Inc. (MMSI) has announced the acquisition of Biolife Delaware, L.L.C., which will enhance its hemostasis product portfolio and improve patient care [1][2][5]. Company Overview - The acquisition positions MMSI to provide more standardized and simplified post-procedure care solutions [1]. - Biolife's products, StatSeal and WoundSeal, are expected to address a $350 million global market opportunity [6]. Financial Guidance - MMSI has revised its full-year 2025 financial guidance to reflect the impact of the acquisition, projecting net revenues between $1.480 billion and $1.501 billion, an increase of 9.1-10.7% compared to 2024 [10]. - The Cardiovascular segment's net revenues are now expected to be between $1.407 billion and $1.426 billion, representing an increase of 8-10% over 2024 [11]. - Adjusted EPS for 2025 is projected to be in the range of $3.28-$3.41, reflecting a decrease of 5-1% compared to 2024 [12]. Market Performance - Following the acquisition announcement, MMSI's shares gained nearly 0.7% [3]. - The company has a market capitalization of $5.81 billion and a return on equity of 15.5%, outperforming the industry average of 14.3% [4]. Industry Prospects - The global hemostasis and tissue sealing agents market is projected to grow at a CAGR of 9% from 2025 to 2030, driven by increased surgery volumes and demand for critical care [13]. - The acquisition is expected to significantly boost MMSI's business in this growing market [14].

Core Insights - The article discusses Merit Medical's strategic acquisitions, particularly the recent $120 million acquisition of Biolife Delaware, aimed at enhancing its product offerings in post-operative care and creating a comprehensive solution from pre-operative diagnosis to post-operative management [2][4][6]. Group 1: Strategic Intent - Merit Medical's acquisition of Biolife is part of a broader strategy to build a complete product loop in the medical device sector, focusing on puncture site hemostasis and cost control [2]. - The company has completed three significant acquisitions in the past year, transitioning from a device-centric model to a solution-oriented approach that enhances treatment efficiency [2][6]. Group 2: Growth Projections - Merit Medical anticipates a revenue of $1.356 billion in 2024, reflecting a 7.9% year-over-year growth, with free cash flow expected to reach $186 million, an increase of over 67% [4]. - The company projects net sales for 2025 to be between $1.480 billion and $1.501 billion, indicating a growth rate of 9% to 11% [7]. Group 3: Product Integration and Market Impact - The integration of Biolife's hemostatic products and other recent acquisitions is expected to enhance Merit Medical's market penetration, particularly in high-growth regions like Asia-Pacific and Europe [2][8]. - The growth is driven by a shift from reliance on single-device revenue to a diversified growth structure based on systemic treatment solutions [8]. Group 4: Company Overview - Merit Medical Systems, founded in 1987 and headquartered in South Jordan, Utah, focuses on interventional treatment, post-operative care, and diagnostic devices, with a market capitalization of approximately $5.77 billion [14]. - The company has a global workforce of over 7,400 employees and reported revenues of $1.39 billion in the last 12 months, with a diverse product range covering various medical fields [14].

Core Viewpoint - Merit Medical Systems, Inc. has acquired Biolife Delaware, L.L.C. for approximately $120 million, enhancing its hemostatic solutions portfolio and positioning the company for growth in a $350 million global market opportunity [1][2][4]. Financial Summary - The acquisition is expected to contribute revenue of $10 to $11 million from May 20, 2025, to December 31, 2025, and is projected to generate approximately $18 million in annualized revenue starting in fiscal year 2026 [6][7]. - The acquired assets generated approximately $15 million in revenue for the twelve-month period ending December 31, 2024 [6]. - The acquisition is anticipated to be slightly dilutive to Merit's non-GAAP profitability in 2025 but accretive to non-GAAP gross margin and operating margin in 2025 and to non-GAAP net income and earnings per share in 2026 [8]. Updated Financial Guidance - Merit has updated its full-year 2025 financial guidance to reflect the impact of the Biolife acquisition, projecting net sales between $1.480 billion and $1.501 billion, representing a year-over-year growth of 9% to 11% [10]. - The cardiovascular segment is expected to generate net sales of $1.407 billion to $1.426 billion, while the endoscopy segment is projected to achieve net sales of $73 million to $75 million [10]. - Non-GAAP earnings per share are projected to be between $3.28 and $3.41, reflecting a slight decrease compared to prior guidance [10]. Product and Market Impact - Biolife's StatSeal and WoundSeal products are designed to improve hemostasis and are expected to complement Merit's existing product offerings across various clinical applications [3][4]. - The acquisition is aligned with Merit's strategy to provide comprehensive solutions to healthcare providers and enhance patient care [4][6].