Merit Medical Systems (MMSI) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $393.9M, up 11% year-over-year, with GAAP EPS of $0.63 (up 37%) and non-GAAP EPS of $1.04 (up 12%), exceeding guidance.

• Full year 2025 revenue was $1.516B, up 12% year-over-year, with GAAP EPS of $2.13 (up 5%) and non-GAAP EPS of $3.83 (up 11%).

• Non-GAAP operating margin for Q4 rose to 21%, and free cash flow hit a record $74M in Q4 and $215.7M for the year.

• Management highlighted strong execution, improved margins, and successful integration of recent acquisitions.

• 2026 guidance targets 6%-8% GAAP revenue growth, 5%-7% constant currency growth, non-GAAP EPS up 5%-8%, and at least $200M free cash flow.

Financial highlights

• Q4 2025 revenue: $393.9M (GAAP), $378.7M (non-GAAP); FY 2025 revenue: $1,515.9M (GAAP), $1,448.4M (non-GAAP).

• Q4 net income was $62.5M (non-GAAP), GAAP net income $38.0M; Q4 GAAP EPS: $0.63, non-GAAP EPS: $1.04.

• Gross margin hit a record 54.5% (non-GAAP) in Q4, up 103 bps year-over-year, with GAAP gross margin at 49.6%.

• Operating cash flow for FY 2025: $297.4M; free cash flow: $215.7M.

• Cash and equivalents: $446.4M; total debt: $747.5M at year-end.

Outlook and guidance

• 2026 GAAP revenue guidance: $1.610–$1.630B (6%-8% growth), constant currency 5%-7%, organic growth 4.5%-6%.

• Non-GAAP EPS guidance: $4.01-$4.15, up 5%-8%, driven by margin expansion and revenue growth, offset by $15M tariff impact.

• Q1 2026 revenue expected at $375M-$380M (6%-7% GAAP growth), organic constant currency growth 2%-3%.

• Free cash flow guidance for 2026 is at least $200M, with $90M planned CapEx.

• Guidance reflects confidence in continued growth, profitability, and free cash flow generation.