Merit Medical Systems (MMSI) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $381.9 million, up 7–7.5% year-over-year, with organic constant currency growth of 2.7–3% and 3.7–4% excluding divested lines.

• GAAP EPS rose 39% to $0.68, non-GAAP EPS increased 9–9.3% to $0.94, and free cash flow grew 26% to $24.7 million.

• Strategic acquisitions, notably View Point Medical for up to $140 million, expanded the oncology platform and addressable market.

• Divestiture of DualCapⓇ product line generated $25.5–$28 million in cash and impacted revenue growth.

• New revenue reporting structure introduced, splitting results into foundational and therapeutic product categories.

Financial highlights

• Gross profit increased 7% year-over-year; non-GAAP gross margin was 53.2%, GAAP gross margin 48.4%, with tariffs impacting margins.

• Operating margin was 11.6% (GAAP) and 19.7% (non-GAAP), both up year-over-year.

• Net income was $41.0 million (GAAP) and $56.7 million (non-GAAP), both up year-over-year.

• Free cash flow was $24.7 million, up from $19.5 million in Q1 2025.

• Cash and equivalents at quarter-end were $488.1 million; net leverage ratio at 1.6x adjusted.

Outlook and guidance

• FY2026 revenue guidance updated to $1.612–$1.634 billion (6–8% growth); organic constant currency growth projected at 4.5–6%.

• Non-GAAP EPS guidance for 2026 is $4.01–$4.15, up 5–8%, including $0.05 dilution from View Point Medical acquisition.

• Q2 2026 revenue expected at $400–$410 million (5–7% GAAP growth); non-GAAP EPS of $0.90–$1.00.

• View Point Medical expected to add $2–$4 million in 2026 revenue.

• 2026 guidance assumes $15 million tariff impact, with potential for reduction pending reimbursement outcomes.