Merit Medical Systems (MMSI) Wells Fargo 21st Annual Healthcare Conference summary

Strategic review and long-range plan

• CEO Martha Aronson described the leadership transition as an evolution, not a revolution; the team maintained execution and delivered ~9% Q2 growth.

• Strategic planning is nearing completion after a global review of each platform’s right to win, product gaps, and products to retain, de-emphasize, or exit.

• Board review will precede a new long-range plan for shareholders, potentially sooner but at the latest on the Q4 call in February; the plan period is expected to extend into 2027.

• All eight platforms are under review; evaluation includes strategic fit, procedure coverage, margins, market share, competition, and ability to win.

• Prior LRPs targeted 5%-7% CAGR; management is still finalizing future metrics, which may retain prior measures and could add others.

Financial outlook and execution

• 2026 guidance is 7%-7.5% organic constant-currency growth and 21%-21.5% operating margin; guidance includes the first-half beat while leaving the back half unchanged.

• CGI remains on track; management cited ~950 bps of operating-margin improvement by completion at the high end of its goals, with further margin opportunity still under review.

• No 2027 growth or margin commitment was made; management said it sees potential to grow operating margins and expects to share a three-year plan after strategy work concludes.

• Q3 is typically seasonally weaker than Q2 and Q4 in revenue and profitability; management cited this seasonality in maintaining its back-half outlook.

• Large tax-strategy investments are on hold pending greater political stability; smaller tax-planning actions remain under consideration.

Markets and platform opportunities

• Management reported robust U.S. and European procedure volumes with no observed softness; embolics are growing rapidly in Europe, with reimbursement varying by country.

• OEM is lumpy quarter to quarter; annual growth is expected in the mid- to high-single digits, and management is optimistic about its position.

• Embosphere demand and interest in GAE and PAE procedures were prominent in Europe; the embolic business is ~$80M, and U.S. adoption remains a development to watch.

• OneMark adds lower-priced ultrasound-based wire-free localization alongside SCOUT radar technology; management sees market expansion, with a potential addressable market 3x-4x SCOUT’s.

• 2027 OneMark sales guidance is $14M-$16M, including capital and consumables; launch is early, sales-force training recently finished, and OUS expansion depends on obtaining CE mark.