Core Insights - Merit Medical Systems, Inc. reported revenue of $384.2 million for Q3 2025, a 13.0% increase compared to Q3 2024, with constant currency revenue up 12.5% and organic constant currency revenue up 7.8% [4][6][12] - The company exceeded financial expectations for both top and bottom lines, prompting an increase in revenue and non-GAAP earnings per share guidance for 2025 [5][11] - The GAAP operating margin improved to 11.1% from 11.0% year-over-year, while non-GAAP operating margin rose to 19.7% from 19.2% [6][8] Financial Performance - Q3 2025 GAAP net income was $27.8 million, or $0.46 per share, down from $28.4 million, or $0.48 per share in Q3 2024; non-GAAP net income was $54.9 million, or $0.92 per share, up from $51.2 million, or $0.86 per share [9][22] - Free cash flow for the first nine months of 2025 was $141.6 million, reflecting a 17.6% year-over-year increase [6][35] - The company’s GAAP gross margin for Q3 2025 was 48.5%, compared to 46.4% in Q3 2024, while non-GAAP gross margin improved to 53.6% from 50.9% [8][9] Revenue Breakdown - For Q3 2025, revenue from the Cardiovascular segment was $366.4 million, up 13.5% year-over-year, with notable growth in Cardiac Intervention (29.3% increase) and Peripheral Intervention (8.8% increase) [5][7] - The Endoscopy segment reported revenue of $17.7 million, a 4.4% increase compared to the previous year [7][12] - For the nine months ended September 30, 2025, total revenue was $1.122 billion, a 12.0% increase from $1.001 billion in the same period of 2024 [7][22] Guidance and Outlook - The updated revenue guidance for 2025 is projected between $1.502 billion and $1.515 billion, reflecting an 11% to 12% year-over-year increase, up from the previous guidance of $1.495 billion to $1.507 billion [11][12] - Non-GAAP earnings per share guidance for 2025 has been raised to between $3.66 and $3.79, representing a 6% to 10% increase [11][12] - The company anticipates stable constant currency growth and improving profitability through its Continued Growth Initiatives Program [5][11] Balance Sheet Highlights - As of September 30, 2025, Merit had cash and cash equivalents of $392.5 million and total debt obligations of $747.5 million, with available borrowing capacity of approximately $697 million [10][19] - Total assets increased to $2.631 billion from $2.419 billion as of December 31, 2024 [19][20] Segment Performance - The Cardiovascular segment's revenue for the nine months ended September 30, 2025, was $1.069 billion, a 10.9% increase year-over-year, while the Endoscopy segment saw a significant 41.5% increase in revenue to $52.8 million [7][12] - The company reorganized its sales teams and product categories, including spine devices under the OEM category, which affected revenue comparisons [7][12]