Merit Medical Systems (MMSI) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $393.9 million, 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 $1.516 billion, 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 was 21%, up 138 basis points, and free cash flow for 2025 was $215.7 million, up 16% year-over-year.

• 2026 guidance targets 6%-8% GAAP revenue growth, non-GAAP EPS of $4.01-$4.15 (up 5%-8%), and at least $200 million free cash flow.

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

Financial highlights

• Q4 gross margin reached a record 54.5% (non-GAAP), up 103 basis points year-over-year; GAAP gross margin was 49.6%.

• Q4 operating income rose 19% to $82.7 million; Q4 GAAP operating margin was 13.8%, non-GAAP 21%.

• Full year 2025 non-GAAP operating profit grew 19%, non-GAAP net income up 13%, and EPS up 11% year-over-year.

• Cash and equivalents at year-end were $446.4 million, with total debt of $747.5 million and net leverage ratio of 1.6x.

• Free cash flow for FY 2025 was $215.7 million; operating cash flow was $297.4 million.

Outlook and guidance

• 2026 revenue guidance is $1.610–$1.630 billion (6%-8% growth), with constant currency growth of 5%-7%.

• Non-GAAP EPS guidance for 2026 is $4.01–$4.15, up 5%-8% year-over-year, factoring in $15 million tariff impact.

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

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

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