Utah Medical Products (UTMD) Q2 2026 earnings summary

Executive summary

• 2Q 2026 revenues declined 14.3% year-over-year to $8.53M; 1H 2026 revenues down 12.3% to $17.25M.

• Revenue declines driven by loss of two major customers, with new product sales not offsetting the shortfall.

• Gross profit margin for 2Q 2026 was 55.8%, slightly down from 56.2% in 2Q 2025; 1H 2026 margin improved to 58.2% from 56.6%.

• Operating income and net income both declined, with litigation expenses higher than prior year.

• Balance sheet remains strong with no debt and $87.5M in cash and investments.

Financial highlights

• 2Q 2026 net sales: $8.53M (down 14.3%); 1H 2026 net sales: $17.25M (down 12.3%).

• 2Q 2026 net income: $2.69M (down 11.9%); 1H 2026 net income: $5.29M (down 13.1%).

• Diluted EPS: $0.844 in 2Q 2026 (down 10.1%); $1.661 in 1H 2026 (down 10.6%).

• Adjusted EBITDA for 1H 2026: $7.57M (43.9% of sales), down from $9.32M in 1H 2025.

• Gross profit for 1H 2026: $10.04M (down 9.8%).

Outlook and guidance

• Full-year 2026 revenues now projected to decline 10–13% versus 2025, as new product sales ramp slower than expected.

• Management expects lower litigation expenses in 2H 2026, but full-year litigation costs will exceed 2025.