Merit Medical(MMSI) - 2025 Q3 - Quarterly Results

Financial Performance - Merit Medical reported revenue of $384.2 million for Q3 2025, a 13.0% increase compared to Q3 2024[4] - Constant currency revenue for Q3 2025 increased by 12.5%, while organic constant currency revenue rose by 7.8% year-over-year[6] - Net sales for Q3 2025 reached $384.2 million, a 12.9% increase from $339.8 million in Q3 2024[20] - Reported revenue for Q3 2025 was $384,157,000, representing a 13.0% increase from $339,845,000 in Q3 2024[45] - Reported revenue for the nine months ended September 30, 2025, was $1,121,970,000, a 12.0% increase from $1,001,356,000 in the same period of 2024[45] - Constant currency revenue for the nine months ended September 30, 2025, was $1,121,192,000, a 12.0% increase compared to the previous year[45] Profitability Metrics - GAAP operating margin improved to 11.1% from 11.0% in the prior year, while non-GAAP operating margin increased to 19.7% from 19.2%[6] - GAAP EPS for Q3 2025 was $0.46, down 3.0%, while non-GAAP EPS rose by 6.7% to $0.92[6] - GAAP gross margin for Q3 2025 was 48.5%, up from 46.4% in Q3 2024, while non-GAAP gross margin increased to 53.6% from 50.9%[8] - Gross profit for Q3 2025 was $186.4 million, up 18.3% from $157.5 million in Q3 2024[20] - Non-GAAP operating income for Q3 2025 was $75,574, accounting for 19.7% of sales, compared to 19.2% in Q3 2024[41] - Non-GAAP net income for Q3 2025 increased to $73,176, with an after-tax income of $54,933, or $0.92 per share, compared to $66,009 in Q3 2024[39] Cash Flow and Debt - Free cash flow generation for the first nine months of 2025 was $141.6 million, reflecting a 17.6% year-over-year increase[6] - Cash provided by operating activities for the nine months ended September 30, 2025, was $198.9 million, compared to $152.1 million in the same period of 2024, an increase of 30.8%[22] - As of September 30, 2025, Merit had cash and cash equivalents of $392.5 million and total debt obligations of $747.5 million[10] - Long-term debt remained stable at $732.9 million as of September 30, 2025, compared to $729.6 million at the end of 2024[18] Segment Performance - For the full year 2025, Merit anticipates net sales between $1.502 billion and $1.515 billion, representing an 11% to 12% year-over-year growth[11] - The cardiovascular segment is expected to generate revenue between $1.430 billion and $1.441 billion, a 10% to 11% increase from the previous year[11] - The endoscopy segment is projected to achieve revenue of $72.0 million to $74.0 million, marking a 32% to 34% growth[11] Assets and Equity - Total assets as of September 30, 2025, were $2.63 billion, up from $2.42 billion at the end of 2024, indicating an increase of 8.8%[18] - The company’s total stockholders' equity increased to $1.53 billion as of September 30, 2025, from $1.38 billion at the end of 2024, reflecting an increase of 10.9%[18] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $70.8 million, an increase of 13.0% from $62.3 million in the same period of 2024[20] Company Operations - The company employs approximately 7,400 people worldwide, supporting its global operations[49] - Merit is in the process of acquiring the C2 CryoBalloon device and related assets from Pentax of America, Inc., which may impact future financial results[51] - The integration of the Biolife business and operations is ongoing, with expectations for achieving financial results and product development benefits[51]