Merit Medical Reports Third Quarter 2026 Results: Delivers 9% Organic Constant Currency Revenue Growth and Raises Full-Year 2026 Guidance

The revised revenue outlook raises the lower bound but trims the upper bound, while both ends of adjusted earnings guidance increase.

Rhea-AI Summary

Merit Medical Systems (NASDAQ: MMSI) reported third-quarter 2026 revenue of $416.2 million, with higher earnings and an updated full-year outlook. Revenue increased 8.4% year over year; organic growth excluding currency effects was 9%. GAAP diluted earnings rose to $0.70 per share from $0.46, while GAAP operating margin increased to 14.1% from 11.1%. GAAP gross margin declined to 48.2% from 48.5%.

Merit expects 2026 revenue of $1.635–$1.642 billion, versus $1.631–$1.643 billion previously, and raised non-GAAP earnings guidance to $4.33–$4.37 per share from $4.25–$4.35. Nine-month operating cash flow was $175.2 million, with free cash flow of $129.5 million. Cash reached $503.6 million at September 30, versus $446.4 million at year-end; total debt obligations remained $747.5 million. Procedural Solutions and Renal Therapies revenue declined despite growth across the other product categories.

24 points · 1 major

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0 major · 7 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Merit raised expected 2026 non-GAAP EPS to $4.33–$4.37 from $4.25–$4.35, representing 13%–14% annual growth.
• Moderate pointThird-quarter revenue rose 8.4% year over year to $416.2 million.
• Moderate pointThird-quarter GAAP net income reached $42.3 million, versus $27.8 million; diluted EPS increased to $0.70 from $0.46.
• Moderate pointThird-quarter GAAP operating margin increased to 14.1% from 11.1% a year earlier.
• Moderate pointThird-quarter non-GAAP net income reached $67.4 million, versus $54.9 million; EPS increased to $1.12 from $0.92.
• Moderate pointThird-quarter non-GAAP operating margin increased to 21.3% from 19.7% a year earlier.
• Moderate pointNine-month operating cash flow totaled $175.2 million; free cash flow was $129.5 million.

17 minor points

• Minor pointThird-quarter organic revenue excluding currency effects grew 9% year over year, excluding a divestiture.
• Minor point. Forward-looking: it has not happened yet and may not happen.Merit revised expected 2026 revenue to $1.635–$1.642 billion from $1.631–$1.643 billion, raising the floor but lowering the ceiling.
• Minor pointCash increased to $503.6 million at September 30, 2026, from $446.4 million at December 31, 2025.
• Minor pointAvailable borrowing capacity was approximately $697 million at September 30, 2026.
• Minor pointFoundational Access third-quarter revenue rose 4% year over year to $157.922 million.
• Minor pointFoundational OEM third-quarter revenue rose 12% year over year to $46.278 million.
• Minor pointFoundational Vascular Intervention third-quarter revenue rose 20% year over year to $42.367 million.
• Minor pointFoundational Other third-quarter revenue rose 808% year over year to $2.006 million.
• Minor pointTherapeutic Cardiac Therapies third-quarter revenue rose 8% year over year to $27.547 million.
• Minor pointTherapeutic Endoscopy third-quarter revenue rose 33% year over year to $23.428 million.
• Minor pointTherapeutic OEM third-quarter revenue rose 32% year over year to $13.089 million.
• Minor pointTherapeutic Oncology third-quarter revenue rose 16% year over year to $27.085 million.
• Minor pointTherapeutic Vascular Intervention third-quarter revenue rose 8% year over year to $35.810 million.
• Minor pointNine-month revenue increased to $1,216.964 million from $1,121.970 million a year earlier.
• Minor pointNine-month GAAP net income increased to $122.109 million from $90.483 million; diluted EPS rose to $2.03 from $1.49.
• Minor pointThird-quarter selling, general and administrative expenses declined to $119.511 million from $119.801 million a year earlier.
• Minor pointThird-quarter research and development expenses declined to $22.393 million from $23.966 million a year earlier.

Negative

• Minor pointThird-quarter GAAP gross margin declined to 48.2% from 48.5% a year earlier.
• Minor pointThird-quarter non-GAAP gross margin declined to 52.8% from 53.6% a year earlier.
• Minor pointFoundational Procedural Solutions third-quarter revenue fell 16% year over year to $27.162 million; nine-month revenue fell 12%.
• Minor pointTherapeutic Renal Therapies third-quarter revenue fell 2% year over year to $13.550 million; nine-month revenue fell 6%.
• Minor pointThird-quarter interest expense increased to $7.333 million from $6.754 million a year earlier.

2 minor points

• Minor pointNine-month selling, general and administrative expenses increased to $366.950 million from $340.384 million a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.Convertible notes carry approximately $0.01 per share of expected dilution in 2026 non-GAAP EPS guidance.

Key Figures

Q3 revenue: $416.2 million, up 8.4% Organic constant-currency revenue growth: 9% GAAP EPS: $0.70, up 51% +3 more

Q3 revenue

$416.2 million, up 8.4%

Third quarter 2026

Organic constant-currency revenue growth

9%

Q3 2026, excluding the impact of a strategic divestiture

GAAP EPS

$0.70, up 51%

Q3 2026 year over year

Non-GAAP EPS

$1.12, up 22%

Q3 2026 year over year

FY2026 revenue guidance

$1.635–$1.642 billion

Updated guidance; prior guidance was $1.631–$1.643 billion

FY2026 non-GAAP EPS guidance

$4.33–$4.37

Updated guidance; prior guidance was $4.25–$4.35

Previous Earnings Reports

2 past events · Latest: Jul 30

Same Type 2 events

1. Jul 30

   Q2 earnings

   24h Move

   +2.0%

   Raised FY2026 revenue and non-GAAP EPS ranges, establishing the guidance baseline now increased.

2. Oct 30

   Q3 earnings

   24h Move

   +5.4%

   Reported Q3 revenue and earnings and raised full-year guidance, providing the comparable quarter baseline.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap financial measures, convertible senior notes, if-converted method

3 terms

non-gaap financial measures financial

"are non-GAAP financial measures."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

convertible senior notes financial

"3.00% Convertible Senior Notes due 2029"

Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.

if-converted method financial

"calculated using the if-converted method"

An accounting rule used when calculating diluted earnings per share that imagines what would happen if all convertible securities—like convertible bonds, preferred shares, or options—had already been turned into common stock. It adjusts the company’s reported profit per share downward to show how earnings would be shared if ownership were spread across a larger number of shares, similar to checking how a pie’s slice size changes if more people join the table. This matters to investors because it reveals a more conservative view of each share’s claim on profits and potential future ownership dilution.

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Financial Highlights†

• Reported revenue of $416.2 million, up 8.4%
• Constant currency revenue* and constant currency revenue, organic* up 8% and up 9%, respectively
• GAAP operating margin of 14.1%, compared to 11.1% in prior year period
• Non-GAAP operating margin* of 21.3%, compared to 19.7% in prior year period
• GAAP EPS $0.70, up 51%
• Non-GAAP EPS* $1.12, up 22%
• Cash flow from operations of $175.2 million year-to-date
• Free cash flow* generation of $129.5 million year-to-date

† Comparisons above are calculated for the current quarter compared with the third quarter of 2025, unless otherwise specified. Amounts stated in this release are rounded, while percentages are calculated from the underlying amounts.

* Constant currency revenue; constant currency revenue, organic; non-GAAP gross profit and margin; non-GAAP operating income and margin; non-GAAP net income; non-GAAP EPS; and free cash flow figures (used here and below) are non-GAAP financial measures. A reconciliation of these financial measures to their most directly comparable GAAP financial measures is included under the heading “Non-GAAP Financial Measures” below.

SOUTH JORDAN, Utah, Oct. 29, 2026 (GLOBE NEWSWIRE) -- Merit Medical Systems, Inc. (NASDAQ: MMSI), a leading global manufacturer and marketer of healthcare technology, today announced financial results for the three and nine-month periods ended September 30, 2026.

“Merit delivered third quarter financial results that exceeded the high end of our expectations, driven primarily by 9% organic, constant currency revenue growth, excluding the impact of a strategic divestiture,” said Martha G. Aronson, Merit’s President and CEO. “We experienced strong revenue growth trends in the U.S. and better-than-expected demand for Merit’s products across both our Foundational and our Therapeutic platforms. We also delivered strong growth in both our non-GAAP operating profit and our non-GAAP earnings per share, which increased 17% and 22%, respectively, year-over-year.” Ms. Aronson continued: “We have raised our 2026 revenue and non-GAAP earnings per share guidance to reflect the stronger-than-expected results over the first nine months of 2026 and remain confident in our team’s ability to execute, with attractive constant currency growth, improving profitability, and solid cash flow generation this year. Our team remains focused on delivering our Continued Growth Initiative financial targets for the three-year period ending December 31, 2026, and, in parallel, we are finalizing our longer-term strategic plan focused on identifying opportunities to better position the company for sustainable growth, enhanced profitability and value creation for our shareholders.”

Merit’s revenue by product category for the three and nine-month periods ended September 30, 2026 and 2025 was as follows (unaudited; in thousands, except for percentages):

		Three Months Ended
		Reported														Constant Currency*
		September 30,										Impact of foreign				September 30,
		2026			2025			% Change				exchange				2026			% Change
Foundational
Access		$	157,922		$	151,508		4		%		$	(1,018	)		$	156,904		4		%
OEM			46,278			41,499		12		%			47				46,325		12		%
Procedural Solutions			27,162			32,287		(16	)	%			184				27,346		(15	)	%
Vascular Intervention			42,367			35,391		20		%			(166	)			42,201		19		%
Other			2,006			221		808		%			547				2,553		1,055		%
Total Foundational			275,735			260,906		6		%			(406	)			275,329		6		%
Therapeutic
Cardiac Therapies			27,547			25,530		8		%			(53	)			27,494		8		%
Endoscopy			23,428			17,631		33		%			36				23,464		33		%
OEM			13,089			9,953		32		%			(16	)			13,073		31		%
Oncology			27,085			23,263		16		%			(24	)			27,061		16		%
Renal Therapies			13,550			13,808		(2	)	%			(123	)			13,427		(3	)	%
Vascular Intervention			35,810			33,066		8		%			(496	)			35,314		7		%
Total Therapeutic			140,509			123,251		14		%			(676	)			139,833		13		%
Total		$	416,244		$	384,157		8		%		$	(1,082	)		$	415,162		8		%

		Nine Months Ended
		Reported														Constant Currency *
		September 30,										Impact of foreign				September 30,
		2026			2025			% Change				exchange				2026			% Change
Foundational
Access		$	470,832		$	438,028		7		%		$	(8,538	)		$	462,294		6		%
OEM			134,156			128,140		5		%			(217	)			133,939		5		%
Procedural Solutions			81,599			92,597		(12	)	%			166				81,765		(12	)	%
Vascular Intervention			123,057			103,195		19		%			(1,638	)			121,419		18		%
Other			2,531			1,710		48		%			3,296				5,827		241		%
Total Foundational			812,175			763,670		6		%			(6,931	)			805,244		5		%
Therapeutic
Cardiac Therapies			83,461			69,019		21		%			(1,747	)			81,714		18		%
Endoscopy			68,767			52,582		31		%			56				68,823		31		%
OEM			33,365			30,830		8		%			(66	)			33,299		8		%
Oncology			76,367			69,257		10		%			(550	)			75,817		9		%
Renal Therapies			37,775			40,014		(6	)	%			(515	)			37,260		(7	)	%
Vascular Intervention			105,054			96,598		9		%			(2,252	)			102,802		6		%
Total Therapeutic			404,789			358,300		13		%			(5,074	)			399,715		12		%
Total		$	1,216,964		$	1,121,970		8		%		$	(12,005	)		$	1,204,959		7		%

Financial Summary:

GAAP gross margin was 48.2%, compared to 48.5% for the third quarter of 2025. Non-GAAP gross margin* was 52.8%, compared to 53.6% for the third quarter of 2025.

GAAP operating margin was 14.1%, compared to 11.1% for the third quarter of 2025. Non-GAAP operating margin* was 21.3%, compared to 19.7% for the third quarter of 2025.

GAAP net income was $42.3 million, or $0.70 per share, compared to $27.8 million, or $0.46 per share, for the third quarter of 2025. Non-GAAP net income* was $67.4 million, or $1.12 per share, compared to $54.9 million, or $0.92 per share, for the third quarter of 2025.

As of September 30, 2026, Merit had cash and cash equivalents of $503.6 million and total debt obligations of $747.5 million, compared to cash and cash equivalents of $446.4 million and total debt obligations of $747.5 million as of December 31, 2025. Merit had available borrowing capacity of approximately $697 million as of September 30, 2026.

Fiscal Year 2026 Financial Guidance

Based upon the information currently available to Merit’s management, for the twelve-month period ending December 31, 2026, absent the potential impact of trade policies and related actions implemented by the U.S. and other countries subsequent to today’s date, material acquisitions, non-recurring transactions or other factors beyond Merit’s current expectations, Merit anticipates the following financial results:

Revenue and Earnings Guidance*

		Updated Guidance		Prior Guidance(2)
		Year Ending	% Change	Year Ending	% Change
Financial Measure		December 31, 2026	Y/Y	December 31, 2026	Y/Y
Total Revenue		$1.635 - $1.642 billion	8% - 8%	$1.631 - $1.643 billion	8% - 8%
Non-GAAP Earnings Per Share(1)		$4.33 - $4.37	13% - 14%	$4.25 - $4.35	11% - 14%

*Percentage figures approximated; dollar figures may not foot due to rounding.

(1) Merit’s non-GAAP earnings per share reflect the dilutive impact of its 3.00% Convertible Senior Notes due 2029 (the “Convertible Notes”) calculated using the if-converted method of approximately $0.01 per share for the year ending December 31, 2026. Any offsetting impacts of the capped call associated with the Convertible Notes are not considered.

(2) “Prior Guidance” reflects Merit’s full-year 2026 financial guidance, previously introduced on July 30, 2026.

Merit does not provide guidance for GAAP reported financial measures (other than revenue) or a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP reported financial measures (other than revenue) because Merit is unable to predict with reasonable certainty the financial impact of various items which could impact Merit’s future financial results, such as expenses attributable to acquisitions or other extraordinary transactions, non-cash expenses related to amortization or write-off of previously acquired tangible and intangible assets, certain employee termination benefits, performance-based stock compensation expenses, expenses resulting from non-ordinary course litigation or administrative proceedings and resulting settlements, governmental proceedings, and changes in governmental or industry regulations. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For the same reasons, Merit is unable to address the significance of the unavailable information, which could be material to future results. Specifically, Merit is not, without unreasonable effort, able to reasonably predict the amount and impact of these items and Merit believes inclusion of the most comparable GAAP financial measure, and a reconciliation of these forward-looking non-GAAP measures to their GAAP counterparts could be confusing to investors or cause undue reliance.

Merit’s financial guidance for the year ending December 31, 2026 is subject to risks and uncertainties identified in this release and Merit’s filings with the SEC. This guidance is based on information and estimates available to Merit as of October 29, 2026. Should known or unknown risks or uncertainties materialize or should underlying assumptions prove inaccurate, actual results will likely vary, and could vary materially, from past results and those anticipated, estimated or projected.

CONFERENCE CALL

As previously announced, Merit will hold its investor conference call today, Thursday, October 29, 2026, at 4:30 p.m., Eastern Time, to discuss its results for the third quarter and provide an operational update. To access the conference call, please pre-register using the following link. Registrants will receive confirmation with dial-in details. A live webcast and slide deck will also be available at merit.com.

CONSOLIDATED BALANCE SHEETS (in thousands)
		September 30,				December 31,
		2026				2025
ASSETS		(Unaudited)
Current Assets
Cash and cash equivalents		$	503,551			$	446,404
Trade receivables, net			221,866				203,710
Other receivables			37,875				17,773
Inventories			391,022				333,705
Prepaid expenses and other current assets			35,188				31,493
Prepaid income taxes			5,030				4,941
Income tax refund receivables			4,283				2,128
Total current assets			1,198,815				1,040,154
Property and equipment, net			437,347				428,401
Intangible assets, net			591,204				537,654
Goodwill			537,135				506,837
Deferred income tax assets			7,273				7,049
Right-of-use operating lease assets			84,379				87,600
Other assets			68,753				78,227
Total Assets		$	2,924,906			$	2,685,922
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Trade payables		$	66,286			$	60,551
Accrued expenses			174,024				159,486
Short-term operating lease liabilities			10,382				10,876
Income taxes payable			14,391				8,851
Total current liabilities			265,083				239,764
Long-term debt			737,404				734,038
Deferred income tax liabilities			37,216				19,665
Liabilities related to unrecognized tax benefits			2,248				2,248
Deferred compensation payable			19,373				17,542
Deferred credits			1,321				1,398
Long-term operating lease liabilities			74,273				76,658
Other long-term obligations			43,437				10,306
Total liabilities			1,180,355				1,101,619
Stockholders' Equity
Common stock			808,930				763,909
Retained earnings			946,139				824,030
Accumulated other comprehensive loss			(10,518	)			(3,636	)
Total stockholders' equity			1,744,551				1,584,303
Total Liabilities and Stockholders' Equity		$	2,924,906			$	2,685,922

CONSOLIDATED STATEMENTS OF INCOME (Unaudited, in thousands except per share amounts)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2026				2025				2026				2025
Net sales		$	416,244			$	384,157			$	1,216,964			$	1,121,970
Cost of sales			215,613				197,746				616,370				579,052
Gross profit			200,631				186,411				600,594				542,918
Operating expenses:
Selling, general and administrative			119,511				119,801				366,950				340,384
Research and development			22,393				23,966				70,391				70,811
Contingent consideration (benefit) expense			(36	)			32				(70	)			1,198
Total operating expenses			141,868				143,799				437,271				412,393
Income from operations			58,763				42,612				163,323				130,525
Other income (expense):
Interest income			4,128				3,615				11,780				11,166
Interest expense			(7,333	)			(6,754	)			(25,977	)			(20,097	)
Other income (expense) — net			227				(933	)			11,519				(1,717	)
Total other expense — net			(2,978	)			(4,072	)			(2,678	)			(10,648	)
Income before income taxes			55,785				38,540				160,645				119,877
Income tax expense			13,474				10,785				38,536				29,394
Net income		$	42,311			$	27,755			$	122,109			$	90,483
Earnings per common share
Basic		$	0.71			$	0.47			$	2.05			$	1.53
Diluted		$	0.70			$	0.46			$	2.03			$	1.49
Weighted average shares outstanding
Basic			59,806				59,245				59,666				59,095
Diluted			60,379				59,919				60,134				60,604

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in thousands)
		Nine Months Ended
		September 30,
		2026				2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$	122,109			$	90,483
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			93,383				91,629
Gain on disposition of a business			(12,557	)			(249	)
Amortization of right-of-use operating lease assets			8,771				8,693
Fair value adjustments related to contingent consideration liabilities			(70	)			1,198
Stock-based compensation expense			35,497				33,563
Other adjustments			6,950				5,123
Changes in operating assets and liabilities, net of acquisitions and divestitures			(78,853	)			(31,579	)
Total adjustments			53,121				108,378
Net cash, cash equivalents, and restricted cash provided by operating activities			175,230				198,861
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures for property and equipment			(45,686	)			(57,252	)
Proceeds from asset and business dispositions			25,555				298
Cash paid for notes receivable and other investments			(9,242	)			(14,936	)
Cash paid in acquisitions, net of cash acquired			(93,049	)			(122,834	)
Other investing, net			(2,293	)			(2,327	)
Net cash, cash equivalents, and restricted cash used in investing activities			(124,715	)			(197,051	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock			16,272				22,179
Contingent payments related to acquisitions			(3,030	)			(2,645	)
Payment of taxes related to an exchange of common stock			(6,973	)			(8,597	)
Net cash, cash equivalents, and restricted cash provided by financing activities			6,269				10,937
Effect of exchange rates on cash			454				3,047
Net increase in cash, cash equivalents and restricted cash			57,238				15,794
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period			448,549				378,767
End of period		$	505,787			$	394,561
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEETS:
Cash and cash equivalents			503,551				392,457
Restricted cash reported in prepaid expenses and other current assets			2,236				2,104
Total cash, cash equivalents and restricted cash		$	505,787			$	394,561

Non-GAAP Financial Measures

Although Merit’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), Merit’s management believes that the non-GAAP financial measures referenced in this release may provide investors with useful information regarding the underlying business trends and performance of Merit’s ongoing operations and can be useful for period-over-period comparisons of such operations. Non-GAAP financial measures used in this release include:

• constant currency revenue;
• constant currency revenue, organic;
• non-GAAP gross profit and margin;
• non-GAAP operating income and margin;
• non-GAAP net income;
• non-GAAP earnings per share; and
• free cash flow.
  

Merit’s management team uses these non-GAAP financial measures to evaluate Merit’s profitability and efficiency, to compare operating and financial results to prior periods, to evaluate changes in the results of its operating segment, and to measure and allocate financial resources internally. However, Merit’s management does not consider such non-GAAP measures in isolation or as an alternative to measures determined in accordance with GAAP.

Readers should consider non-GAAP measures used in this release in addition to, not as a substitute for, financial reporting measures prepared in accordance with GAAP. These non-GAAP financial measures generally exclude some, but not all, items that may affect Merit’s net income. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which items are excluded. Merit believes it is useful to exclude such items in the calculation of non-GAAP gross profit and margin, non-GAAP operating income and margin, non-GAAP net income, and non-GAAP earnings per share (in each case, as further illustrated in the reconciliation tables below) because such amounts in any specific period may not directly correlate to the underlying performance of Merit’s business operations and can vary significantly between periods as a result of factors such as acquisition or other extraordinary transactions, non-cash expenses related to amortization or write-off of previously acquired tangible and intangible assets, certain employee termination benefits, expenses resulting from non-ordinary course litigation or administrative proceedings and resulting settlements, governmental proceedings or changes in tax or industry regulations, gains or losses on disposal of certain assets, equity method investment loss (income) from equity investees, and debt issuance costs. Merit may incur similar types of expenses in the future, and the non-GAAP financial information included in this release should not be viewed as a statement or indication that these types of expenses will not recur. Additionally, the non-GAAP financial measures used in this release may not be comparable with similarly titled measures of other companies. Merit urges readers to review the reconciliations of its non-GAAP financial measures to their most directly comparable GAAP financial measures included herein, and not to rely on any single financial measure to evaluate Merit’s business or results of operations.

Constant Currency Revenue

Merit’s constant currency revenue is prepared by converting the current-period reported revenue of subsidiaries whose functional currency is a currency other than the U.S. dollar at the applicable foreign exchange rates in effect during the comparable prior-year period and adjusting for the effects of hedging transactions on reported revenue, which are recorded in the U.S. dollar. The constant currency revenue adjustment of $(1.1) million and $(12.0) million to reported revenue for the three and nine-month periods ended September 30, 2026 was calculated using the applicable average foreign exchange rates for the three and nine-month periods ended September 30, 2025.

Constant Currency Revenue, Organic

Merit’s constant currency revenue, organic, is defined, with respect to prior fiscal year periods, as GAAP revenue less revenue from certain divestitures. For the three and nine-month periods ended September 30, 2025, Merit’s constant currency revenue, organic, excludes revenues attributable to the DualCap® product line which Merit sold to Health Line International Corporation (“Health Line”) on February 17, 2026 (the “DualCap Divestiture”).

With respect to current fiscal year periods, constant currency revenue, organic, is defined as constant currency revenue (as defined above), less revenue from certain acquisitions and divestitures. For the three-month period ended September 30, 2026, Merit’s constant currency revenue, organic, excludes revenues attributable to products acquired in connection with (i) Merit’s acquisition of View Point Medical, Inc. (“View Point”) in April 2026 (the “View Point Merger”) and (ii) the assets acquired from Pentax of America, Inc. related to the C2 CryoBalloon™ device in November 2025 (the “C2 Acquisition”). For the nine-month period ended September 30, 2026, Merit’s constant currency revenue, organic, excludes revenues attributable to products acquired in connection with (i) the View Point Merger, (ii) the C2 Acquisition and (iii) Merit’s acquisition of Biolife Delaware, L.L.C. (“Biolife”) in May 2025 (the “Biolife Merger”) and excludes revenues attributable to the DualCap Divestiture.

Non-GAAP Gross Profit and Margin

Non-GAAP gross profit is calculated by reducing GAAP cost of sales by amounts recorded for amortization of intangible assets and inventory mark-up related to acquisitions. Non-GAAP gross margin is calculated by dividing non-GAAP gross profit by reported net sales.

Non-GAAP Operating Income and Margin

Non-GAAP operating income is calculated by adjusting GAAP operating income for certain items which are deemed by Merit’s management to be outside of core operations and vary in amount and frequency among periods, such as expenses related to acquisitions or other extraordinary transactions, non-cash expenses related to amortization or write-off of previously acquired tangible and intangible assets, certain employee termination benefits, performance-based stock compensation expenses, expenses resulting from non-ordinary course litigation or administrative proceedings and resulting settlements, governmental proceedings, and changes in governmental or industry regulations, as well as other items referenced in the tables below. Non-GAAP operating margin is calculated by dividing non-GAAP operating income by reported net sales.

Non-GAAP Net Income

Non-GAAP net income is calculated by adjusting GAAP net income for the items set forth in the definition of non-GAAP operating income above, as well as for expenses related to Merit’s long-term debt, gains or losses on disposal of certain assets, equity method investment loss (income) from equity investees, and other items set forth in the tables below.

Non-GAAP EPS

Non-GAAP EPS is defined as non-GAAP net income divided by the diluted shares outstanding for the corresponding period.

Free Cash Flow

Free cash flow is defined as cash flow from operations calculated in accordance with GAAP, less capital expenditures for property and equipment calculated in accordance with GAAP, as set forth in the consolidated statement of cash flows.

Other Non-GAAP Financial Measure Reconciliations

The following tables set forth supplemental financial data and corresponding reconciliations of non-GAAP financial measures to Merit’s corresponding financial measures prepared in accordance with GAAP, in each case, for the three and nine-month periods ended September 30, 2026 and 2025. The non-GAAP income adjustments referenced in the following tables do not reflect non-performance-based stock compensation expense of $6.4 million and $4.6 million for the three-month periods ended September 30, 2026 and 2025, respectively, and $15.9 million and $13.9 million for the nine-month periods ended September 30, 2026 and 2025, respectively.

Reconciliation of GAAP Net Income to Non-GAAP Net Income
(Unaudited, in thousands except per share amounts)

		Three Months Ended
		September 30, 2026
		Pre-Tax				Tax Impact				After-Tax				Per Share Impact
GAAP net income		$	55,785			$	(13,474	)		$	42,311			$	0.70
Non-GAAP adjustments:
Cost of Sales
Amortization of intangibles			18,996				(4,484	)			14,512				0.24
Operating Expenses
Contingent consideration benefit			(36	)			(14	)			(50	)			(0.00	)
Amortization of intangibles			2,540				(600	)			1,940				0.03
Performance-based share-based compensation (a)			7,173				(665	)			6,508				0.11
Corporate restructuring (b)			301				(71	)			230				0.00
Acquisition-related			280				(11	)			269				0.00
Medical Device Regulation expenses (c)			519				(123	)			396				0.01
Other (Income) Expense
Long-term debt costs (e)			1,414				(334	)			1,080				0.02
Other non-operating loss (f)			254				(60	)			194				0.00
Non-GAAP net income		$	87,226			$	(19,836	)		$	67,390			$	1.12
Diluted shares															60,379

		Three Months Ended
		September 30, 2025
		Pre-Tax				Tax Impact				After-Tax				Per Share Impact
GAAP net income		$	38,540			$	(10,785	)		$	27,755			$	0.46
Non-GAAP adjustments:
Cost of Sales
Amortization of intangibles			19,212				(4,539	)			14,673				0.24
Inventory mark-up related to acquisitions			183				(43	)			140				0.00
Operating Expenses
Contingent consideration expense			32				(5	)			27				0.00
Amortization of intangibles			2,560				(604	)			1,956				0.03
Performance-based share-based compensation (a)			9,028				(1,413	)			7,615				0.13
Corporate restructuring (b)			286				(67	)			219				0.00
Acquisition-related			(68	)			16				(52	)			(0.00	)
Medical Device Regulation expenses (c)			1,655				(391	)			1,264				0.02
Other (d)			74				(17	)			57				0.00
Other (Income) Expense
Long-term debt costs (e)			1,414				(334	)			1,080				0.02
Other non-operating loss (f)			260				(61	)			199				0.00
Non-GAAP net income		$	73,176			$	(18,243	)		$	54,933			$	0.92
Diluted shares															59,919

_____________________
Note: Certain per-share impacts may not sum to totals due to rounding.

Reconciliation of GAAP Net Income to Non-GAAP Net Income
(Unaudited, in thousands except per share amounts)

		Nine Months Ended
		September 30, 2026
		Pre-Tax				Tax Impact				After-Tax				Per Share Impact
GAAP net income		$	160,645			$	(38,536	)		$	122,109			$	2.03
Non-GAAP adjustments:
Cost of Sales
Amortization of intangibles			55,941				(13,206	)			42,735				0.71
Operating Expenses
Contingent consideration benefit			(70	)			(9	)			(79	)			(0.00	)
Amortization of intangibles			7,490				(1,768	)			5,722				0.10
Performance-based share-based compensation (a)			19,602				(1,727	)			17,875				0.30
Corporate restructuring (b)			2,460				(581	)			1,879				0.03
Acquisition-related			7,091				(916	)			6,175				0.10
Medical Device Regulation expenses (c)			2,589				(611	)			1,978				0.03
Other (Income) Expense
Long-term debt costs (e)			9,305				(2,197	)			7,108				0.12
Gain on disposal of business unit			(12,502	)			1,520				(10,982	)			(0.18	)
Other non-operating loss (f)			1,079				(267	)			812				0.01
Non-GAAP net income		$	253,630			$	(58,298	)		$	195,332			$	3.25
Diluted shares															60,134

		Nine Months Ended
		September 30, 2025
		Pre-Tax			Tax Impact				After-Tax				Per Share Impact
GAAP net income		$	119,877		$	(29,394	)		$	90,483			$	1.49
Non-GAAP adjustments:
Cost of Sales
Amortization of intangibles			55,798			(13,184	)			42,614				0.70
Inventory mark-up related to acquisitions			250			(59	)			191				0.00
Operating Expenses
Contingent consideration expense			1,198			29				1,227				0.02
Amortization of intangibles			7,497			(1,771	)			5,726				0.09
Performance-based share-based compensation (a)			19,681			(2,344	)			17,337				0.29
Corporate restructuring (b)			2,873			(678	)			2,195				0.04
Acquisition-related			2,088			(2	)			2,086				0.03
Medical Device Regulation expenses (c)			4,883			(1,153	)			3,730				0.06
Other (d)			103			(24	)			79				0.00
Other (Income) Expense
Long-term debt costs (e)			4,242			(1,002	)			3,240				0.05
Other non-operating loss (f)			11			(61	)			(50	)			(0.00	)
Non-GAAP net income		$	218,501		$	(49,643	)		$	168,858			$	2.79
Diluted shares														60,604

_____________________
Note: Certain per-share impacts may not sum to totals due to rounding.

Reconciliation of Reported Operating Income to Non-GAAP Operating Income
(Unaudited, in thousands except percentages)

		Three Months Ended								Three Months Ended								Nine Months Ended								Nine Months Ended
		September 30, 2026								September 30, 2025								September 30, 2026								September 30, 2025
		Amounts				% Sales				Amounts				% Sales				Amounts				% Sales				Amounts			% Sales
Net Sales as Reported		$	416,244							$	384,157							$	1,216,964							$	1,121,970
GAAP Operating Income			58,763			14.1		%			42,612			11.1		%			163,323			13.4		%			130,525		11.6	%
Cost of Sales
Amortization of intangibles			18,996			4.6		%			19,212			5.0		%			55,941			4.6		%			55,798		5.0	%
Inventory mark-up related to acquisitions			—			—					183			0.0		%			—			—					250		0.0	%
Operating Expenses
Contingent consideration (benefit) expense			(36	)		(0.0	)	%			32			0.0		%			(70	)		(0.0	)	%			1,198		0.1	%
Amortization of intangibles			2,540			0.6		%			2,560			0.7		%			7,490			0.6		%			7,497		0.7	%
Performance-based share-based compensation (a)			7,173			1.7		%			9,028			2.4		%			19,602			1.6		%			19,681		1.8	%
Corporate restructuring (b)			301			0.1		%			286			0.1		%			2,460			0.2		%			2,873		0.3	%
Acquisition-related			280			0.1		%			(68	)		(0.0	)	%			7,091			0.6		%			2,088		0.2	%
Medical Device Regulation expenses (c)			519			0.1		%			1,655			0.4		%			2,589			0.2		%			4,883		0.4	%
Other (d)			—			—					74			0.0		%			—			—					103		0.0	%
Non-GAAP Operating Income		$	88,536			21.3		%		$	75,574			19.7		%		$	258,426			21.2		%		$	224,896		20.0	%

_____________________
Note: Certain percentages may not sum to totals due to rounding.
(a)	Represents performance-based share-based compensation expense, including stock-settled and cash-settled awards.
(b)	Includes employee termination benefits associated with activities related to corporate restructuring initiatives and costs to terminate certain distribution contracts from the Biolife Merger.
(c)	Represents incremental expenses incurred to comply with the E.U. Medical Device Regulation.
(d)	Represents costs to comply with Merit’s corporate integrity agreement with the U.S. Department of Justice.
(e)	Represents costs associated with the Convertible Notes including the amortization of debt issuance costs and, for the nine-months ended September 30, 2026, a one-time charge for additional interest incurred pursuant to Merit's obligation to remove restrictive legends.
(f)	Includes equity method investment loss from equity investees.

Reconciliation of Reported Revenue to Constant Currency Revenue (Non-GAAP), and Constant Currency Revenue, Organic (Non-GAAP)
(Unaudited, in thousands except percentages)

				Three Months Ended										Nine Months Ended
				September 30,										September 30,
		% Change		2026				2025				% Change		2026				2025
Reported Revenue		8.4	%	$	416,244			$	384,157			8.5	%	$	1,216,964			$	1,121,970
Add: Impact of foreign exchange					(1,082	)			—						(12,005	)			—
Constant Currency Revenue (a)		8.1	%	$	415,162			$	384,157			7.4	%	$	1,204,959			$	1,121,970
Less: Revenue from certain acquisitions					(2,634	)			—						(16,338	)			—
Less: Revenue from divestitures (b)					—				(5,228	)					(1,644	)			(15,440	)
Constant Currency Revenue, Organic (a)		8.9	%	$	412,528			$	378,929			7.3	%	$	1,186,977			$	1,106,530

_____________________
(a)	A non-GAAP financial measure. For a definition of this and other non-GAAP financial measures, see the section of this release entitled “Non-GAAP Financial Measures.”
(b)	On February 17, 2026, Merit consummated the DualCap Divestiture for consideration of $28 million, of which $25.5 million was paid to Merit at closing.

Reconciliation of Reported Gross Margin to Non-GAAP Gross Margin (Non-GAAP)
(Unaudited, as a percentage of reported revenue)

		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2026			2025			2026			2025
Reported Gross Margin		48.2	%		48.5	%		49.4	%		48.4	%
Add back impact of:
Amortization of intangibles		4.6	%		5.0	%		4.6	%		5.0	%
Inventory mark-up related to acquisitions		—	%		0.0	%		—	%		0.0	%
Non-GAAP Gross Margin		52.8	%		53.6	%		53.9	%		53.4	%

_____________________
Note: Certain percentages may not sum to totals due to rounding.

Reconciliation of Reported Cash Flow from Operations to Free Cash Flow (Non-GAAP)
(Unaudited, in thousands)

		Nine Months Ended
		September 30,
		2026				2025
Reported Cash Flow from Operations		$	175,230			$	198,861
Less: Capital Expenditures			(45,686	)			(57,252	)
Free Cash Flow		$	129,544			$	141,609

Reconciliation of 2026 Net Sales Guidance - % Change from Prior Year (Constant Currency)

		Updated Guidance				Prior Guidance(1)
		Low		High		Low		High
2026 Net Sales Guidance - % Change from Prior Year (GAAP)		7.9%		8.4%		7.6%		8.4%
Estimated impact of foreign currency exchange rate fluctuations		(0.8%)		(0.8%)		(0.8%)		(0.8%)
2026 Net Sales Guidance - % Change from Prior Year (Constant Currency)		7.0%		7.5%		6.8%		7.6%

_____________________
Note: Certain percentages may not sum to totals due to rounding.

(1) “Prior Guidance” reflects Merit’s full-year 2026 financial guidance, previously introduced on July 30, 2026.

ABOUT MERIT

Founded in 1987, Merit is engaged in the development, manufacture, and distribution of proprietary medical devices used in interventional, diagnostic, and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care, and endoscopy. Merit serves customers worldwide with a domestic and international sales force and clinical support team totaling approximately 900 individuals. Merit employs approximately 7,500 people worldwide.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among others:

• statements preceded or followed by, or that include the words, “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “intends,” “seeks,” “believes,” “estimates,” “projects,” “forecasts,” “potential,” “target,” “continue,” “upcoming,” “optimistic” or other forms of these words or similar words or expressions, or the negative thereof or other comparable terminology;
• statements that address Merit’s future operating performance or events or developments that Merit’s management expects or anticipates will occur, including, without limitation, any statements regarding Merit’s projected revenues, earnings or other future financial measures, Merit’s plans and objectives for future operations, Merit’s proposed new products or services, the integration, development or commercialization of the business or any assets acquired from other parties, future economic conditions or performance, the implementation of, and results which may be achieved through, Merit’s Continued Growth Initiatives Program or other business optimization initiatives, and any statements of assumptions underlying any of the foregoing; and
• statements regarding Merit’s past performance, efforts, or results about which inferences or assumptions may be made, including statements preceded or followed by the words "preliminary," "initial," "potential," "possible," "diligence," "industry-leading," "compliant," "indications" or "early feedback" or other forms of these words or similar words or expressions, or the negative thereof or other comparable terminology.
  

The forward-looking statements contained in this release are based on Merit management’s current expectations and assumptions regarding future events or outcomes. If underlying expectations or assumptions prove inaccurate, or risks or uncertainties materialize, actual results will likely differ, and may differ materially, from Merit’s expectations reflected in any forward-looking statements. Financial estimates are subject to change and are not intended to be relied upon as predictions of future operating results. Investors are cautioned not to unduly rely on any such forward-looking statements.

The following are some of the important risks and uncertainties that could cause Merit’s actual results to differ from management’s expectations in any forward-looking statements: risks and uncertainties arising from the conflict among the United States, Israel and Iran and related geopolitical instability; risks and uncertainties associated with Merit’s acquisition of Solo Pace, Inc. (“Solo Pace”) and SOLO PACE CONTROL and FUSION systems and related technology in October 2026; risks and uncertainties associated with Merit’s integration of the Solo Pace business, assets and operations into its operations and its ability to achieve anticipated financial results, product development and other anticipated benefits of the acquisition; uncertainties as to whether Merit will achieve revenue or other financial performance consistent with its forecasts projected for the Solo Pace acquisition; risks and uncertainties regarding trade policies or related actions implemented by the United States or other countries, including existing, proposed, prospective or invalidated tariffs, duties or other measures; risks and uncertainties associated with Merit’s integration of businesses or assets acquired from third parties, including the View Point Merger in April 2026, the C2 Acquisition in November 2025 and the Biolife Merger in May 2025, and Merit’s ability to achieve the anticipated operating and financial results, product development and other anticipated benefits of such acquisitions; effects of Merit’s 3.00% Convertible Senior Notes due 2029 on Merit’s net income and earnings per share performance; disruptions in Merit’s supply chain, manufacturing or sterilization processes; U.S. and global political, economic, competitive, reimbursement and regulatory conditions; risks and uncertainties associated with Merit’s executive succession and leadership transition; modification or limitation of, or policies and procedures associated with, governmental or private insurance reimbursement policies; reduced availability of, and price increases associated with, components and other raw materials; increases in transportation expenses; risks relating to Merit’s potential inability to successfully manage growth through acquisitions generally, including the inability to effectively integrate acquired operations or products or commercialize technology developed internally or acquired through completed, proposed or future transactions; prospective financial obligations or other uncertainties associated with Merit’s divestiture of its DualCap® anti-microbial cap product line in February 2026; fluctuations in interest or foreign currency exchange rates and inflation; cybersecurity events; government scrutiny and regulation of the medical device industry; difficulties relating to development, testing and regulatory approval, clearance and maintenance of Merit’s products; the safety, efficacy and patient and physician adoption of Merit’s products; the ability to fully enroll and the outcomes of ongoing and future clinical trials and market studies relating to Merit’s products; litigation and other legal proceedings affecting Merit; risks and possible effects of any failure to comply with U.S. and foreign laws and regulations; restrictions on Merit’s liquidity or business operations resulting from its debt agreements; infringement of Merit’s technology or the assertion that Merit’s technology infringes the rights of other parties; product recalls and product liability claims; potential for significant adverse changes in governing regulations;, changes in tax laws and regulations in the United States or other jurisdictions or exposure to additional tax liabilities which may adversely affect Merit’s effective tax rate; termination of relationships with Merit’s suppliers, or failure of such suppliers to perform; development of new products and technology that could render Merit’s existing or future products obsolete; market acceptance of new products; failure to comply with applicable environmental laws; changes in key personnel; labor shortages and increases in labor costs; price and product competition; extreme weather events; and geopolitical events. For a further discussion of the risks and uncertainties and other factors that may affect Merit’s business, operations and financial condition, see Part I, Item 1A. “Risk Factors” in Merit’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC, which Merit updated in Part II, Item 1A. “Risk Factors” in Merit’s Quarterly Reports on Form 10-Q for each of the quarters ended March 31, 2026, June 30, 2026 and September 30, 2026.

All subsequent forward-looking statements attributable to Merit or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Actual results will likely differ, and may differ materially, from anticipated results. Financial estimates are subject to change and are not intended to be relied upon as predictions of future operating results. Those estimates and all other forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by applicable law, Merit assumes no obligation to update or disclose revisions to estimates and all other forward-looking statements.

TRADEMARKS

Unless noted otherwise, trademarks and registered trademarks used in this release are the property of Merit Medical Systems, Inc., its subsidiaries, or its licensors.

Contacts:
PR/Media Inquiries: Sarah Comstock Merit Medical	Investor Inquiries: Mike Piccinino, CFA, IRC ICR Healthcare
+1-801-432-2864	+1-443-213-0509
sarah.comstock@merit.com	mike.piccinino@icrhealthcare.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Merit Medical's third-quarter 2026 revenue and earnings?

Merit Medical reported $416.2 million in revenue and GAAP diluted earnings of $0.70 per share. Revenue increased 8.4% year over year, while diluted earnings rose from $0.46 per share. Non-GAAP earnings were $1.12 per share, compared with $0.92 a year earlier.

What is Merit Medical's updated full-year 2026 guidance?

Merit expects $1.635–$1.642 billion in revenue and $4.33–$4.37 in non-GAAP earnings per share for 2026. The previous ranges were $1.631–$1.643 billion and $4.25–$4.35, respectively. The updated outlook represents approximately 8% revenue growth and 13%–14% non-GAAP earnings-per-share growth year over year.

How do Merit Medical's convertible notes affect its 2026 earnings guidance?

The 2026 non-GAAP earnings guidance includes approximately $0.01 per share of dilution from Merit's 3.00% Convertible Senior Notes due 2029. The calculation assumes conversion into shares and does not include any offsetting effects from the associated capped-call transaction.