Q4 2025 Merit Medical Systems Inc Earnings Call Transcript
Key Points
- Merit Medical Systems Inc (MMSI) reported a total revenue of $393.9 million for Q4 2025, marking an 11% year-over-year increase on a GAAP basis.
- The company achieved a record non-GAAP operating margin of 21% in Q4 2025, up 138 basis points year over year.
- Merit Medical Systems Inc (MMSI) generated $74 million in free cash flow during Q4 2025, a 13% increase year over year and a quarterly record for the company.
- The cardiovascular segment saw a 9% growth, and the endoscopy segment grew by 15% in Q4 2025, exceeding expectations.
- For the full year 2025, the company delivered constant currency revenue growth of 11% and generated over $215 million in free cash flow, surpassing the high end of their original guidance.
- Sales of OEM products decreased by 15% in Q4 2025, significantly lower than the low single-digit growth expected.
- The company experienced inventory destocking issues with OEM customers in the US, impacting sales performance.
- Merit Medical Systems Inc (MMSI) anticipates a 140 basis point headwind to 2026 revenue growth due to the divestiture of the dual cap product line.
- The company expects a $15 million tariff impact in 2026, which could affect non-GAAP EPS.
- Q1 2026 guidance indicates a lower organic growth rate of 2 to 3% due to continued softness in the OEM segment and supply chain challenges.
Welcome to the Merit Medical System's 4th quarter 2025 earnings conference call. At this time, all participants have been placed in listen-only mode. Please note that this conference call is being recorded and that the recording will be available on the company's website for replay shortly. I would now like to turn the call over to Martha Aaronson, Meritt Medical Systems President and Chief Executive Officer.
Thank you, operator, and welcome everyone. I'm joined on the call today by Raul Paarra, our Chief Financial Officer and treasurer, and Brian Lloyd, our Chief Legal Officer and corporate secretary.
Brian, would you please take us through the safe harbor statements, please?
Thank you, Martha. This presentation contains forward-looking statements that receive safe harbor protection under federal securities laws.
Although we
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