Merit Medical Systems (MMSI) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $382.5 million, up 13.2% year-over-year, exceeding forecasts and driven by strong U.S. demand and successful acquisitions.

• Non-GAAP net income for Q2 2025 was $61.0 million, up 13.3% year-over-year; GAAP net income was $32.6 million, with non-GAAP EPS at $1.01 and GAAP EPS at $0.54.

• Free cash flow for the first half of 2025 was $89.1 million, up 8.1% year-over-year; cash and equivalents at June 30, 2025, were $341.8 million.

• Strategic acquisition of Biolife Delaware LLC for $120 million expands the hemostatic product portfolio; integration and direct sales transition underway.

• Announced CEO succession: Martha Aronson to become President and CEO effective October 3, 2025.

Financial highlights

• Q2 2025 GAAP net income was $32.6 million; non-GAAP net income was $61.0 million; non-GAAP EPS was $1.01, up 9.8% year-over-year.

• GAAP gross margin improved to 48.2% from 47.7% year-over-year; non-GAAP gross margin increased to 53.2% from 51.5%.

• GAAP operating margin for Q2 2025 was 12.3%, down from 13.6% in Q2 2024; non-GAAP operating margin rose to 21.2% from 20.1%.

• Operating cash flow for the first six months was $123.9 million; capital expenditures totaled $34.8 million.

• Cash and cash equivalents at June 30, 2025, were $341.8 million; total debt: $747.5 million.

Outlook and guidance

• 2025 revenue guidance raised to $1.495–$1.507 billion, representing 10–11% year-over-year growth; non-GAAP EPS guidance increased to $3.52–$3.72.

• Cardiovascular segment expected to grow 9–10%; Endoscopy segment projected to grow 32–34%.

• Constant currency revenue growth forecasted at 9.7%–10.6%; organic growth 5.6%–6.7%.

• WRAPSODY CIE U.S. revenue guidance revised to $2–$4 million due to reimbursement delays.

• Free cash flow for 2025 expected to be at least $150 million.