Core Insights - Utah Medical Products, Inc. (UTMD) shares increased by 2% following the release of its fourth-quarter and full-year 2025 earnings, outperforming the S&P 500 index's 0.2% growth during the same period [1] - Over the past month, UTMD shares rose by 7.6%, significantly exceeding the S&P 500's 1.5% increase [1] Financial Performance - For Q4 2025, UTMD reported earnings per share (EPS) of 80.2 cents, a decrease of 6.3% from 85.7 cents in Q4 2024 [2] - Revenues for the quarter were $9 million, reflecting a 1.2% decline from $9.2 million in the same period a year ago [2] - Gross profit decreased by 1.1% to $5.26 million, down from $5.32 million in Q4 2024 [3] - Operating income fell 16.7% year over year to $2.4 million from $2.9 million, primarily due to increased operating expenses [3] - Net income was $2.6 million, an 11.6% decline from $2.9 million in the prior-year quarter [3] Key Business Metrics - Gross profit margin remained strong at 58.2%, nearly unchanged from 58.1% in the prior-year quarter [4] - Operating income margin declined to 27% from 32%, and net income margin fell to 28.4% from 31.7% [4] - Adjusted consolidated EBITDA for the quarter was $4 million, down 10% from $4.4 million a year ago, with EBITDA as a percentage of sales declining to 43.8% from 48.1% [4] Sales Performance - Domestic U.S. sales in Q4 declined 4.9% to $5.5 million from $5.7 million, with non-Filshie device sales accounting for most of the drop [5] - OEM sales decreased by 31.5% year over year, while Filshie device sales in the U.S. increased by 21.6% [5] - Outside the U.S. sales rose 4.9% to $3.6 million, largely due to favorable foreign exchange rates, but on a constant currency basis, OUS sales were up only 0.5% [5] Management Commentary - Management indicated that the fourth quarter provided a normalized comparison, with no sales to UTMD's China distributor in either Q4 2025 or Q4 2024, allowing margins to stabilize despite cost pressures [6] - Cost-of-living salary increases and raw material inflation continued to impact results, but effective cost containment helped prevent further deterioration [6] Operating Expenses - Operating expenses increased due to higher general and administrative (G&A) costs, including a $0.2 million charge related to an embezzlement case and a $0.4 million write-off tied to cancellation fees [7] - G&A expenses represented 23.2% of sales in Q4, up from 19.3% in the prior-year quarter [7] Factors Influencing Results - Revenue decline was primarily driven by softness in U.S. sales of non-Filshie medical devices and OEM components, with U.S. Filshie sales growth not sufficient to offset declines in other areas [8] - Favorable foreign exchange rates provided a modest benefit to reported international sales, particularly in Europe [8] Legal and Litigation Costs - Legal costs related to product liability litigation increased slightly to $0.4 million from $0.3 million the previous year, with 14 of 19 pending court cases dismissed by the end of January 2026 [9][10] Full-Year Performance - Full-year sales totaled $38.5 million, a 5.8% year-over-year decline from $40.9 million in 2024, with net income falling 18.7% to $11.3 million [11] - EPS dropped 12.1% year over year to $3.48, and gross margin declined to 57.1% from 59% in 2024 [11] Guidance and Future Outlook - Management expects sales to PendoTECH and the China distributor to remain at zero in 2026, aiming to offset losses with new product introductions and organic growth in Filshie sales [12] - There is substantial uncertainty regarding the recovery [12] Share Repurchase and Financial Position - During Q4 2025, UTMD repurchased 17,951 shares at an average cost of $55.35 per share, totaling $1 million [13] - The company ended the year with $85.8 million in cash and investments, up $2.8 million from the end of 2024, and no debt [14]

SALT LAKE CITY, UT / ACCESS Newswire / February 4, 2026 / Utah Medical Products, Inc. (Nasdaq:UTMD) announces that its Board of Directors approved a quarterly cash dividend of thirty-one cents ($.31) per share of common stock payable on April 3, 2026 to stockholders of record at the close of business on March 17, 2026. This is a 1.6% increase over the dividend declared in the same quarter of the prior year. ...

Financial Performance - In 2025, UTMD's total consolidated worldwide sales were $38.5 million, a decrease of $2.4 million (5.8%) compared to $40.9 million in 2024[20] - UTMD's net income for 2025 was down 19% year-over-year, with earnings per share (EPS) declining by 12%[4] - The decline in annual revenues was primarily attributed to a $2.3 million (85%) decrease in OEM sales to PendoTECH and a $471,000 (5%) decrease in OUS distributor sales[20] - Operating Income (OI) decreased by $2,192 (16.1%) to $11,402 in 2025, with OI in 4Q 2025 at $2,442, down from $2,930 in 4Q 2024[27] - Consolidated 2025 Income Before Tax (EBT) was $14,110 (36.6% of sales), down from $16,802 (41.1% of sales) in 2024[35] - Adjusted consolidated EBITDA for 2025 was $17,458, a decrease of $2,394 (12.1%) from $19,852 in 2024, with an EBITDA margin of 45.3% compared to 48.5% in 2024[37][38] - Net Income for 2025 was $11,286, a decrease of 18.7% from $13,874 in 2024, representing 29.3% of sales compared to 33.9% in 2024[40] Sales and Revenue - Domestic U.S. sales in 4Q 2025 were $5.5 million, down 4.9% from $5.7 million in 4Q 2024, while OUS sales increased by 4.9% to $3.6 million[14][16] - OUS USD-denominated sales in 2025 were $15,758, a decrease of $1,700 (9.7%) compared to $17,458 in 2024[21] - Domestic U.S. sales in 2025 were $22,761, down $683 (2.9%) from $23,444 in 2024, with domestic Filshie device sales increasing by $436 (10.8%)[24] - The company experienced a $431,000 revenue loss due to the cancellation of a non-changeable order from its China distributor for blood pressure monitoring kits[6] Profitability Metrics - The gross profit margin for 4Q 2025 was 58.2%, consistent with 4Q 2024, while the operating income margin decreased to 27.0% from 32.0% in 4Q 2024[4] - Gross Profit (GP) for 2025 was $21,142, which is $2,142 (8.9%) lower than in 2024, resulting in a GP margin of 57.1% compared to 59.0% in 2024[26] - Total Operating Expenses (OE) for 2025 were $10,599, representing 27.5% of sales, compared to 25.8% in 2024[28] Shareholder Information - UTMD's stockholders' equity increased by $1.8 million in 2025, despite share repurchases and dividends totaling $12.3 million[12] - The company repurchased 148,935 shares in 2025 at an average cost of $56.10 per share, compared to 301,961 shares repurchased in 2024 at an average cost of $66.13 per share[46] - Outstanding shares at the end of 2025 were 3,186,221, a decline of 4.5% from 3,335,156 at the end of 2024 due to share repurchases[42] - Dividends paid in 2025 totaled $3,983 ($1.22/share), down from $4,260 ($1.20/share) in 2024, despite an increase in dividends per share[45] - The company's stock price at the end of 2025 was $55.96, a decrease of 9.0% from $61.47 at the end of 2024, marking three consecutive years of stock price decline[47] Cash and Investments - UTMD's cash and investments increased to $85.8 million at the end of 2025, up from $83.0 million at the end of 2024, despite $4.0 million in dividends and $8.4 million in share repurchases[12] - Total cash and investments at the end of 2025 were $85.8 million, an increase of $2.8 million from $82.976 million at the end of 2024[48] Future Outlook - Looking ahead to 2026, OEM sales to PendoTech and blood pressure monitoring kits to China are expected to be zero, with plans to offset losses through new product sales and modest growth in organic business[25] Currency Impact - The foreign currency exchange rates positively impacted 4Q 2025 sales, contributing an additional $153,000 due to stronger GBP and EUR[14][17] - The combined weighted-average favorable FX impact on 2025 foreign currency OUS sales was 3.6%, increasing reported USD sales by $397 relative to 2024[23] Other Expenses - Operating expenses remained stable year-over-year, but unusual G&A expenses included a $395,000 write-off related to the China distributor and a $195,000 loss from embezzlement[10] - Net Intangible Assets decreased by $1.6 million to 12.2% of total consolidated assets from 13.4% in 2024[48] - The current ratio as of December 31, 2025, was 37.6, indicating strong liquidity[49]

Financial Performance - In Q3 2025, net sales decreased by 1.9% to $9,812,000 compared to Q3 2024, and year-to-date (9M) sales fell by 7.2% to $29,475,000[27] - Gross profit for Q3 2025 was $5,604,000, down 3.4% from Q3 2024, while gross profit for 9M 2025 decreased by 11.1% to $16,737,000[27] - Operating income in Q3 2025 dropped by 21.9% to $2,611,000, and for 9M 2025, it fell by 16.0% to $8,961,000[27] - Net income for Q3 2025 was $2,631,000, a decline of 26.2% compared to Q3 2024, and for 9M 2025, net income decreased by 20.5% to $8,720,000[27] - Earnings per diluted share (EPS) in Q3 2025 were $0.820, down 19.9% from Q3 2024, and for 9M 2025, EPS decreased by 13.5% to $2.680[27] Sales and Revenue - Sales to the China distributor were $395,000 in Q3 2025, down from $781,000 in Q3 2024, and $2,054,000 in 9M 2025 compared to $2,368,000 in 9M 2024[29] - Total consolidated sales for 9M 2025 were $2,271 (7.2%) lower than in 9M 2024, with U.S. domestic sales down 2.3% and OUS sales down 13.3%[46] - OUS sales in 3Q 2025 were $3,953, an 8.5% decrease from $4,318 in 3Q 2024, with a favorable FX impact of $114[43] - OUS sales in 9M 2025 were $12,167, a 13.3% decrease from $14,036 in 9M 2024, with a net favorable FX impact of $244[48] Operating Expenses - Operating expenses in Q3 2025 increased to $2,073,000, representing 21.1% of revenues, compared to 15.2% in Q3 2024[33] - S&M expenses in 3Q 2025 increased by $79, primarily due to higher health plan expenses and fees from U.S. distributors[56] - U.S. G&A expenses increased by $85 in 3Q 2025 compared to 3Q 2024, and by $124 in 9M 2025 compared to 9M 2024, primarily due to higher health plan costs and non-cash stock option expenses[61] - OUS G&A expenses were $1,254 in 3Q 2025 compared to $857 in 3Q 2024, with a total difference of $397 attributed to a $395 bad debt reserve expense and $25 from FX rate changes[62] Profitability Metrics - The gross profit margin for Q3 2025 was 57.1%, down from 58.0% in Q3 2024, and the operating income margin decreased to 26.6% from 33.4%[32] - Operating Income in 3Q 2025 was $2,611, a 21.9% decline from $3,343 in 3Q 2024, and $8,961 in 9M 2025, a 16.0% decline from $10,664 in 9M 2024[54] - Consolidated EBT in 3Q 2025 was $3,309 (33.7% of sales), down from $4,179 (41.8% of sales) in 3Q 2024; for 9M 2025, EBT was $11,004 (37.3% of sales) compared to $13,188 (41.5% of sales) in 9M 2024[68] - Adjusted consolidated EBITDA for 3Q 2025 was $4,170, a 15.9% decrease from $4,958 in 3Q 2024; for 9M 2025, it was $13,493, down 12.7% from $15,447 in 9M 2024[71] Future Outlook - Management now expects total annual 2025 consolidated sales to be about 7% lower compared to 2024, revised from an initial projection of 5%[49] - Annual sales for 2025 are now expected to be 6-7% lower than in 2024, with EPS projected in the range of $3.40-3.50[100] - Management plans to continue investing in new technology and processes, and may consider acquisitions to enhance revenue growth[90] Shareholder Returns - Dividends paid in 3Q 2025 were $988 ($0.305/share), compared to $1,052 ($0.300/share) in 3Q 2024, representing 38% of 3Q 2025 Net Income[81] - Dividends paid in 9M 2025 totaled $3,006, a decrease from $3,222 in 9M 2024, representing 34% of Net Income[84] Balance Sheet and Cash Flow - The balance sheet as of September 30, 2025, showed a stronger current ratio, lower total liabilities, and higher stockholders' equity despite lower sales and earnings[37] - Net cash provided by operating activities was $11,215 in 9M 2025, down from $11,894 in 9M 2024, primarily due to a $2,252 decrease in Net Income[86] - Total consolidated assets decreased by $564 to $121,975 as of September 30, 2025, despite a $201 increase in consolidated current assets[91] - Working capital increased to $93,521 at September 30, 2025, primarily due to a $1,291 increase in cash[94] - UTMD's total debt ratio was 3% as of September 30, 2025, down from 4% at the end of 2024[96] Stock Performance - The closing share price at the end of 3Q 2025 was $62.97, reflecting a 10.6% increase from the previous quarter[85]

Core Viewpoint - Utah Medical Products, Inc. (UTMD) reported a disappointing third quarter for 2025, with significant declines in earnings and revenue, attributed to unexpected order cancellations and a challenging operating environment [1][2][5]. Financial Performance - Earnings per share (EPS) for Q3 2025 was 82 cents, down 19.9% from $1.025 in the same quarter last year [1]. - Revenue decreased by 1.9% to $9.8 million from $10 million year-over-year [2]. - Net income fell by 26.2% to $2.6 million from $3.6 million [2]. Key Business Metrics - Gross profit declined 3.4% year-over-year to $5.6 million, with gross margin dropping to 57.1% from 58% [3]. - Operating income decreased by 21.9% to $2.6 million, resulting in an operating margin of 26.6%, down from 33.4% [3]. - Adjusted EBITDA fell 15.9% to $4.2 million, with the adjusted EBITDA margin contracting to 42.5% from 49.6% [4]. Management Commentary - Management cited unexpected cancellations or delays from two non-U.S. distributors, leading to a revenue loss of $0.6 million and a $0.4 million bad debt provision [5]. - The cancellation from a China distributor may indicate the end of a long-term business relationship [5]. - Sales from former major OEM customer PendoTECH dropped to $0.01 million from $0.3 million year-over-year, but management believes this decline has nearly bottomed out [6]. Factors Influencing Results - Manufacturing costs increased due to U.S. tariffs, impacting the cost of goods sold by $0.08 million in Q3 [7]. - Gross margins were further affected by under-absorption of fixed overheads due to lower sales volumes [7]. - Litigation expenses were high at $0.38 million, though down from $0.43 million a year earlier [8]. Revenue Breakdown - Domestic U.S. sales rose 3% year-over-year, driven by a 7.7% increase in direct device sales and a 16.5% gain in Filshie product sales [9]. - International sales declined by 8.5%, significantly impacted by a 21.7% drop in constant currency OUS sales [9]. Guidance - Management now expects full-year 2025 revenue to decline approximately 7% year-over-year, revised from an earlier estimate of a 5% drop [11]. - Adjusted EBITDA for the full year is projected to be in the range of $17 to $18 million [11]. Other Developments - During the quarter, UTMD repurchased 11,729 shares for $0.7 million, totaling 130,984 shares worth $7.4 million year-to-date [12]. - Dividends paid during the quarter amounted to $1 million, representing 38% of quarterly net income [12]. - Since the end of 2023, UTMD has spent $34.6 million on share repurchases and dividends, with a minimal decrease of $8.6 million in cash and investments, indicating strong cash generation capacity [12].

Revenue Performance - UTMD's 3Q 2025 revenues decreased by 2% compared to 3Q 2024, with a total revenue loss of $581, attributed to foreign trade uncertainties and order cancellations [4][5][6]. - Total consolidated sales for 9M 2025 were $2,271 million, a decrease of 7.2% compared to 9M 2024 [20]. - U.S. domestic sales in 9M 2025 were $17,308 million, down 2.3% from $17,709 million in 9M 2024 [21]. - OUS sales in 9M 2025 were $12,167 million, representing a 13.3% decline from $14,036 million in 9M 2024 [22]. - Sales to UTMD's China distributor were $395 in 3Q 2025, significantly lower than $781 in 3Q 2024, contributing to a negative sales trend [7][8]. - Domestic U.S. sales increased by 3.0% in 3Q 2025, reaching $5,859, despite a decline in sales to PendoTECH [17]. Profitability Metrics - Gross profit margin for 3Q 2025 was 57.1%, down from 58.0% in 3Q 2024, reflecting higher manufacturing overhead costs and lower sales absorption [9][10]. - Operating income in 3Q 2025 fell by 22% year-over-year, leading to a 26% decline in net income [4][12]. - Earnings per share (EPS) in 3Q 2025 were 20% lower than in 3Q 2024, reflecting a 26% decrease in net income [13]. - Gross profit in 9M 2025 was $2,083 million, an 11.1% decrease compared to 9M 2024 [25]. - Operating income in 9M 2025 was $8,961 million, down 16.0% from $10,664 million in 9M 2024 [26]. - Net Income in 3Q 2025 was $2,631 (26.8% of sales), a 26.2% decrease from $3,563 (35.6% of sales) in 3Q 2024; for 9M 2025, Net Income was $8,720 (29.6% of sales), down 20.5% from $10,972 (34.6% of sales) in 9M 2024 [40]. Expenses and Costs - Total operating expenses for 3Q 2025 were $2,073, representing 21.1% of revenues, up from 15.2% in 3Q 2024 [10]. - Adjusted consolidated EBITDA for 3Q 2025 was $4,170 million, a decrease of 15.9% compared to $4,958 million in 3Q 2024 [36]. - Adjusted consolidated EBITDA for 9M 2025 was $13,493, a decrease of 12.7% from $15,447 in 9M 2024, with a projected range of $17 to $18 million for the entire 2025 calendar year [37]. - Adjusted consolidated EBITDA as a percentage of sales was 42.5% in 3Q 2025, down from 49.6% in 3Q 2024, and 45.8% in 9M 2025 compared to 48.7% in 9M 2024 [38]. Balance Sheet and Cash Flow - The balance sheet showed a stronger position with lower total liabilities and higher stockholders' equity as of September 30, 2025 [14]. - Cash and investments increased to $84,267 at September 30, 2025, despite using $7,361 for share repurchases and paying $3,006 in dividends [47]. - The current ratio improved as current liabilities declined by 20% while current assets remained stable [47]. - Total shares repurchased in 9M 2025 were 130,984 for $7,362, representing 3.9% of shares outstanding at the end of 2024 [45]. Market and Share Performance - The closing share price at the end of 3Q 2025 was $62.97, reflecting a 10.6% increase from $56.92 at the end of 2Q 2025 [46]. - The average exercise price of unexercised employee options was $73.75, higher than the market price, resulting in no dilution for 3Q 2025 [44]. Foreign Currency Impact - Foreign currency sales accounted for 29% of total consolidated sales in 3Q 2025, with a favorable impact from stronger EUR and GBP [9][18]. - The weighted-average favorable impact on 9M 2025 consolidated sales from foreign currency exchange rates was 0.8%, adding $244 million to reported sales [22]. Taxation - The company has consistently paid millions in income taxes annually, with the basic corporate income tax rates unchanged from 2024 [41].

Core Viewpoint - Utah Medical Products, Inc. reported third quarter and first nine months financial results for 2025, indicating that performance was significantly affected by global trade uncertainty [1] Financial Results - The financial results for the third quarter (3Q) and first nine months (9M) of 2025 were notably impacted by global trade uncertainties [1]

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[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section presents the unaudited consolidated condensed financial statements and management's discussion for Utah Medical Products, Inc [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents UTMD's unaudited consolidated condensed financial statements, covering balance sheets, income, cash flow, and equity statements [Consolidated Condensed Balance Sheets](index=4&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) Details UTMD's financial position, presenting assets, liabilities, and stockholders' equity at reporting dates | (in thousands) | June 30, 2025 | December 31, 2024 | | :----------------------------- | :------------ | :---------------- | | **ASSETS** | | | | Total current assets | $94,375 | $96,330 | | Property and equipment, net | $10,257 | $9,763 | | Goodwill | $14,193 | $13,580 | | Other intangible assets, net | $1,977 | $2,865 | | **Total assets** | **$120,802** | **$122,538** | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Total current liabilities | $2,254 | $3,757 | | Total liabilities | $3,269 | $5,111 | | Total stockholders' equity | $117,533 | $117,427 | | **Total liabilities and stockholders' equity** | **$120,802** | **$122,538** | - Total assets decreased by **$1,736 thousand** from December 31, 2024, to June 30, 2025, primarily due to decreases in current assets[8](index=8&type=chunk)[88](index=88&type=chunk) - Total liabilities decreased by **$1,842 thousand**, driven by a **$1,502 thousand** reduction in current liabilities and a **$339 thousand** reduction in long-term liabilities[8](index=8&type=chunk)[92](index=92&type=chunk) [Consolidated Condensed Statements of Income](index=5&type=section&id=Consolidated%20Condensed%20Statements%20of%20Income) Outlines UTMD's financial performance over specific periods, detailing revenues, expenses, and net income | (in thousands, except per share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Sales, net | $9,953 | $10,400 | $19,663 | $21,740 | | Gross profit | $5,595 | $6,253 | $11,133 | $13,018 | | Operating income | $3,196 | $3,438 | $6,349 | $7,321 | | Income before provision for income taxes | $3,836 | $4,211 | $7,694 | $9,010 | | Net income | $3,048 | $3,453 | $6,089 | $7,409 | | Earnings per common share (basic) | $0.94 | $0.98 | $1.86 | $2.07 | | Earnings per common share (diluted) | $0.94 | $0.98 | $1.86 | $2.07 | - Net sales decreased by **4.3%** in Q2 2025 and **9.6%** in 1H 2025 compared to the same periods in 2024[9](index=9&type=chunk)[24](index=24&type=chunk) - Net income decreased by **11.7%** in Q2 2025 and **17.8%** in 1H 2025 year-over-year[9](index=9&type=chunk)[24](index=24&type=chunk) [Consolidated Condensed Statements of Cash Flows](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) Reports UTMD's cash inflows and outflows from operating, investing, and financing activities | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $7,337 | $8,038 | | Net cash used in investing activities | $(235) | $(110) | | Net cash used in financing activities | $(8,726) | $(11,173) | | Net increase in cash and cash equivalents | $(797) | $(3,649) | | Cash at end of period | $82,179 | $89,219 | - Net cash provided by operating activities decreased by **$701 thousand** in 1H 2025 compared to 1H 2024, primarily due to lower net income and increased use of cash to decrease accrued expenses[10](index=10&type=chunk)[81](index=81&type=chunk) - Cash and investments decreased by **$797 thousand** in 1H 2025, after paying **$2.0 million** in dividends and repurchasing **$6.7 million** of common stock[10](index=10&type=chunk)[28](index=28&type=chunk)[87](index=87&type=chunk) [Consolidated Condensed Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Condensed%20Statements%20of%20Stockholders'%20Equity) Details changes in UTMD's stockholders' equity, including common stock, retained earnings, and comprehensive income | (in thousands) | Balance at Dec 31, 2024 | Balance at June 30, 2025 | | :----------------------------------- | :---------------------- | :----------------------- | | Common Stock (Shares) | 3,335 | 3,216 | | Common Stock (Amount) | $33 | $32 | | Accumulated Other Comprehensive Loss | $(11,908) | $(9,362) | | Retained Earnings | $129,302 | $126,862 | | Total Stockholders' Equity | $117,427 | $117,533 | - Total stockholders' equity increased slightly from **$117,427 thousand** at December 31, 2024, to **$117,533 thousand** at June 30, 2025, despite common stock repurchases and dividend payments[12](index=12&type=chunk) - The company repurchased **119,255 shares** of common stock in 1H 2025 for **$6,708 thousand**[12](index=12&type=chunk)[76](index=76&type=chunk) [Notes to Consolidated Condensed Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Condensed%20Financial%20Statements) Provides additional information and disclosures relevant to the consolidated condensed financial statements - The company is evaluating the impact of new FASB ASUs 2023-09 (Income Taxes) and 2024-03 (Income Statement Expenses), effective for fiscal years beginning after December 15, 2024, and December 15, 2026, respectively[14](index=14&type=chunk)[15](index=15&type=chunk) Inventories (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------- | :------------ | :---------------- | | Finished goods | $971 | $1,913 | | Work-in-process | $1,407 | $1,414 | | Raw materials | $5,855 | $5,485 | | Total | $8,233 | $8,812 | - Stock-based compensation expense was **$86 thousand** in Q2 2025 and **$168 thousand** in 1H 2025, compared to **$52 thousand** and **$131 thousand** in the respective prior year periods[16](index=16&type=chunk) - No warranty reserve was made at December 31, 2024, or June 30, 2025, as existing warranty obligations were deemed immaterial[16](index=16&type=chunk) Global Revenues by Product Category (in thousands) | Product Category | 2Q 2025 | 2Q 2024 | 1H 2025 | 1H 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Obstetrics | $1,025 | $1,019 | $2,050 | $2,044 | | Gynecology/Electrosurgery/Urology | $4,807 | $5,452 | $9,703 | $10,912 | | Neonatal | $2,102 | $1,546 | $4,084 | $3,188 | | Blood Pressure Monitoring and Accessories | $2,019 | $2,383 | $3,826 | $5,596 | | Total | $9,953 | $10,400 | $19,663 | $21,740 | - The company operates as a single operating segment, with the CEO reviewing consolidated gross profit margin, operating margin, and net income to assess performance and allocate resources[20](index=20&type=chunk) - After June 30, 2025, through August 11, 2025, UTMD repurchased an additional **10,178 shares** for

Core Insights - Utah Medical Products, Inc. (UTMD) experienced a 3% decline in share price following its earnings report for Q2 2025, contrasting with a 0.6% increase in the S&P 500 index during the same period [1] - The company reported earnings per share (EPS) of 94 cents, a 4% decrease from 98 cents in Q2 2024 [1] Financial Performance - Net sales were $10 million, down 4.3% from $10.4 million in the same quarter last year [2] - Income before tax decreased by 8.9% to $3.8 million, while net income fell 11.7% to $3.1 million compared to $3.5 million in Q2 2024 [2] Sales Trends - Domestic sales increased by 0.6% to $5.9 million, driven by a 10% rise in direct non-Filshie device sales and an 8% increase in Filshie device sales [3] - However, OEM domestic sales plummeted by 38% due to a significant drop in PendoTECH orders [3] - International sales dropped 10.5% to $4.1 million, with direct sales by subsidiaries falling 15.8% [4] Profitability Metrics - Gross profit margin contracted to 56.2% from 60.1% a year earlier, with gross profit declining 10.5% to $5.6 million [5] - Operating income fell 7.1% to $3.2 million, and the operating margin decreased to 32.1% from 33.1% [5] - Net income margin narrowed to 30.6% from 33.2%, influenced by a higher effective tax rate of 20.5% compared to 18% in the previous year [6] Expense Management - Total operating expenses decreased by 14.8% to $2.4 million, with general and administrative expenses dropping 13.6% to $1.7 million [7] - R&D spending saw a significant decline of 47.1% to $0.1 million following the completion of biopharma sensor validation [7] Capital Allocation - The company repurchased 64,988 shares at an average price of $53.67 and paid $1 million in dividends, which accounted for 33% of net income [8] - Cash and investments at the end of the quarter totaled $82.2 million, slightly down from $83 million at the end of 2024 [8] Management Insights - Management attributed revenue decline to the expected drop in PendoTECH sales but highlighted the strength of core direct sales, particularly in the U.S. [9] - Full-year 2025 results are expected to reflect continued weakness in PendoTECH sales, projected to be about $2 million lower than in 2024 [10] - The current trailing twelve-month (TTM) EBITDA stands at $18.6 million, with a target range of $16 million to $18 million for the year [10]