UTMD Reports Financial Performance for Second Calendar Quarter and First Half 2026
Rhea-AI Summary
Utah Medical Products (Nasdaq: UTMD) reported 2Q 2026 worldwide sales of $8,529, down $1,424 or 14.3% from 2Q 2025, and 1H 2026 sales of $17,252, down $2,411 or 12.3% year over year. The decline was mainly due to zero 2026 sales to its two previously largest customers, compared with $1,066 in 2Q 2025 and $1,923 in 1H 2025. In 1H 2026, sales to new biopharma customers reached $211, slower than planned.
2Q 2026 gross margin was 55.8% versus 56.2% a year earlier, while 1H 2026 gross margin improved to 58.2% from 56.6%. Operating income was $2,649 in 2Q (margin 31.1%) and $5,215 in 1H (margin 30.2%), down 17.1% and 17.9% respectively, affected by higher U.S. litigation costs. Net income margins were 31.5% in 2Q and 30.7% in 1H. UTMD ended June 30, 2026 with $87.5 million in cash and investments, no debt, after paying $2.0 million in dividends, repurchasing $0.2 million of stock and investing $0.3 million in capex. Management now projects a 10–13% decline in 2026 sales versus 2025.
Positive
- 2Q 2026 gross margin 55.8%, 1H 2026 gross margin 58.2% vs 56.6% in 1H 2025
- 2Q 2026 operating margin 31.1% and 1H 2026 operating margin 30.2%
- Net income margin 31.5% in 2Q 2026 and 30.7% in 1H 2026
- Cash and investments $87.5 million at June 30, 2026 with no debt
- Dividends paid $2.0 million and share repurchases $0.2 million in 1H 2026
- Domestic Filshie Clip System sales $2,376 in 1H 2026, up $230 or 10.7% year over year
Negative
- 2Q 2026 sales $8,529, down $1,424 or 14.3% vs 2Q 2025
- 1H 2026 sales $17,252, down $2,411 or 12.3% vs 1H 2025
- Zero 1H 2026 sales to two former largest customers vs $1,923 in 1H 2025
- New biopharma customer sales only $211 in 1H 2026
- 2Q 2026 operating income $2,649 and 1H 2026 operating income $5,215, down 17–18%
- 2026 sales outlook revised to a 10–13% decline vs 2025
News Market Reaction – UTMD
In the Jul 23 session, UTMD declined 7.24%, reflecting a notable negative market reaction. Argus tracked a peak move of +4.5% during that session. Argus tracked a trough of -3.4% from its starting point during tracking. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility. Trading volume was elevated at 2.6x the daily average, suggesting increased selling activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 05 | quarterly dividend | Positive | +0.3% | Quarterly cash dividend increased 1.6%, with payment scheduled for July 3, 2026. |
| Apr 23 | first-quarter earnings | Negative | -2.5% | First-quarter sales, operating income, net income, and EPS declined year over year. |
| Feb 04 | quarterly dividend | Positive | -0.2% | Quarterly cash dividend increased 1.6% compared with the prior-year quarter. |
| Jan 29 | annual earnings | Negative | +1.3% | Annual revenue, net income, and EPS declined while cash increased after capital returns. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
UTMD's recent news reactions diverged from the announcement direction in three of four comparable events.
Key Terms
constant currency financial
gross profit margin financial
operating income margin financial
manufacturing overhead technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
SALT LAKE CITY, UT / ACCESS Newswire / July 23, 2026 / Utah Medical Products, Inc. (Nasdaq:UTMD) reports second calendar quarter (2Q) and first half (1H) 2026 financial results with a continued decline in overall revenues in comparison to the same time periods in 2025.
Currencies in this release are denoted as $ or USD = U.S. Dollars; AUD = Australia Dollars; £ or GBP = UK Pound Sterling; C$ or CAD = Canadian Dollars; and € or EUR = Euros. Currency amounts throughout this report are in thousands, except per share amounts and where noted. Because of the relatively short span of time, results for any given three-month period in comparison with a previous three-month period may not be indicative of comparative results for the year as a whole.
Overview of Results
In brief, consolidated total 2Q 2026 revenues were
UTMD's profit margins compared to those of the prior year's same periods follow:
2Q 2026 | 2Q 2025 | 1H 2026 | 1H 2025 | |||||||||||||
(Apr - Jun) | (Apr - Jun) | (Jan - Jun) | (Jan - Jun) | |||||||||||||
Gross Profit Margin (GP/ sales): | 55.80 | % | 56.20 | % | 58.20 | % | 56.60 | % | ||||||||
Operating Income Margin (OI/ sales): | 31.10 | % | 32.10 | % | 30.20 | % | 32.30 | % | ||||||||
Income B4 Tax Margin (EBT/ sales): | 38.50 | % | 38.50 | % | 37.50 | % | 39.10 | % | ||||||||
Net Income Margin (NI/ sales): | 31.50 | % | 30.60 | % | 30.70 | % | 31.00 | % | ||||||||
Despite a more favorable sales mix relative to 2Q 2025, UTMD's Gross Profit (GP) margin in 2Q 2026 contracted somewhat as a result of lower sales than expected without proportionally lowering consolidated manufacturing overhead costs. Operating Income (OI) declined more than the GP decline due to
UTMD's June 30, 2026 Balance Sheet continued strong, with no debt. Ending Cash and Investments were
Revenues (sales) - 2Q 2026
Total consolidated 2Q 2026 UTMD worldwide (WW) sales in USD terms were
Consistent with the projection in UTMD's SEC 10-K Report at the beginning of the year, 1) sales of biopharma pressure monitoring devices and accessories to UTMD's previously largest OEM customer, PendoTECH, were zero in 2Q 2026, which were
Domestic sales are invoiced in USD and obviously not subject to foreign currency conversion (FX) rate fluctuations. The components of domestic sales include 1) "direct non-Filshie device sales" of UTMD's medical devices to user facilities (and med/surg stocking distributors for hospitals), 2) "OEM sales" of components and other products manufactured by UTMD for other medical device and non-medical device companies, and 3) "domestic Filshie device sales". UTMD separates domestic Filshie device sales from other medical device sales direct to medical facilities because UTMD is simply a distributor for Femcare in the U.S.
In the aggregate, 2Q 2026 domestic sales were
OUS sales in 2Q 2026 were
Remaining OUS sales to distributors, excluding the China distributor, were
The portion of OUS sales invoiced in foreign currencies in USD terms was
2Q 2026 | 2Q 2025 | Change | ||||||||||
GBP | 1.3424 | 1.3368 | +0.4 | % | ||||||||
EUR | 1.1564 | 1.1569 | - | |||||||||
AUD | 0.7112 | 0.6394 | +11.2 | % | ||||||||
CAD | 0.7225 | 0.7227 | - | |||||||||
The
Sales - 1H 2026
Total consolidated 1H 2026 UTMD worldwide (WW) sales in USD terms were
Sales of biopharma pressure monitoring devices and accessories to UTMD's previously largest OEM customer, PendoTECH, were zero in 1H 2026, compared to
Looking forward, the combined year 2026 sales to those two entities are expected to be zero compared to
Domestic sales are invoiced in USD and obviously not subject to foreign currency conversion (FX) rate fluctuations. The components of domestic sales include 1) "direct non-Filshie device sales" of UTMD's medical devices to user facilities (and med/surg stocking distributors for hospitals), 2) "OEM sales" of components and other products manufactured by UTMD for other medical device and non-medical device companies, and 3) "domestic Filshie device sales". UTMD separates domestic Filshie device sales from other medical device sales direct to medical facilities because UTMD is simply a distributor for Femcare in the U.S.
In the aggregate, 1H 2026 domestic sales were
OUS sales in 1H 2026 were
The portion of OUS sales invoiced in foreign currencies in USD terms was
1H 2026 | 1H 2025 | Change | ||||||||||
GBP | 1.3452 | 1.2977 | + 3.7 | % | ||||||||
EUR | 1.1607 | 1.1155 | + 4.1 | % | ||||||||
AUD | 0.7042 | 0.6329 | +11.3 | % | ||||||||
CAD | 0.7262 | 0.7094 | + 2.4 | % | ||||||||
The
Gross Profit (GP)
GP results from subtracting the cost of goods sold (CGS), comprised of costs of production including direct labor, manufacturing engineering, depreciation of equipment, maintenance and repairs, quality assurance including regulatory compliance, and purchasing including freight for receiving materials from suppliers, from revenues. CGS is divided into three categories: direct labor, raw materials and manufacturing overhead (MOH). Direct labor and raw materials are predominantly variable costs, i.e. vary directly with revenues. MOH contains many fixed costs consistent with the Company's infrastructure, for example, supervision, quality assurance and engineering personnel, and depreciation of fixed assets.
In contrast to 1Q 2026, UTMD's 2Q 2026 GPM was lower than in 2025 primarily because both trade and intercompany shipments from UTMD's Ireland facility (UTMD Ltd) were lower while the Company retained the same staffing that it had to support the former China distributor and will be needed again for projected higher production requirements for new products in 2H 2026. UTMD Ltd is also the manufacturer and supplier of the Filshie Clip System to all UTMD subsidiaries worldwide, so lower intercompany Filshie sales to the U.S. in 2Q 2026 also contributed to Ireland's lower 2Q GPM. In contrast, UTMD's consolidated 1H 2026 GPM was higher than in 1H 2025, as expected, due to a more favorable product mix without
More specifically, 2Q 2026 GP was
Operating Income (OI)
OI results from subtracting Operating Expenses (OE) from GP. OE are comprised of Sales and Marketing (S&M) expenses, General and Administrative (G&A) expenses and Product Development (R&D) expenses.
A lower GPM in 2Q 2026 on
OI in 1H 2026 was
The following table summarizes OE in 2Q and 1H 2026 compared to the same periods in 2025 by OE category:
OE Category | 2Q 2026 | % of | 2Q 2025 | % of | 1H 2026 | % of | 1H 2025 | % of | ||||||||||||||||||||||||
S&M:$ | 526 | 6.2 | $ | 524 | 5.3 | $ | 1,045 | 6.1 | $ | 1,024 | 5.2 | |||||||||||||||||||||
G&A: | 1,428 | 16.7 | 1,740 | 17.5 | 3,472 | 20.1 | 3,470 | 17.6 | ||||||||||||||||||||||||
R&D: | 154 | 1.8 | 135 | 1.3 | 308 | 1.8 | 290 | 1.5 | ||||||||||||||||||||||||
Total OE: | 2,108 | 24.7 | 2,399 | 24.1 | 4,825 | 28.0 | 4,784 | 24.3 | ||||||||||||||||||||||||
Consolidated S&M expenses as a percentage of sales were higher due primarily to lower sales. The impact of differences in FX rates on foreign subsidiary S&M expenses added
G&A expenses dominate UTMD's OE, largely because of expenses of current Filshie litigation in the U.S. and the former non-cash expenses from the amortization of Identifiable Intangible Assets (IIA) associated with the acquisition of the Filshie Clip System in 2011 which have now been fully-amortized.
A segmentation of USD-denominated G&A expenses follows:
G&A Exp Category | 2Q 2026 | % of | 2Q 2025 | % of | 1H 2026 | % of | 1H 2025 | % of | ||||||||||||||||||||||||
IIA Amort- UK: | $ | - | $ | 531 | 5.3 | $ | 458 | 2.7 | $ | 1,032 | 5.2 | |||||||||||||||||||||
Other- UK: | 210 | 189 | 403 | 379 | ||||||||||||||||||||||||||||
U.S. Litigation | 497 | 5.8 | 280 | 2.8 | 935 | 5.4 | 587 | 3 | ||||||||||||||||||||||||
Other- US: | 554 | 6.5 | 603 | 6.1 | 1,325 | 7.7 | 1,197 | 6.1 | ||||||||||||||||||||||||
IRE: | 90 | 88 | 190 | 172 | ||||||||||||||||||||||||||||
AUS: | 41 | 16 | 85 | 34 | ||||||||||||||||||||||||||||
CAN: | 36 | 33 | 76 | 69 | ||||||||||||||||||||||||||||
Total G&A: | 1,428 | 16.7 | 1,740 | 17.5 | 3,472 | 20.1 | 3,470 | 17.6 | ||||||||||||||||||||||||
Total consolidated G&A expenses in 2Q 2026 were
Higher 2Q litigation expenses resulted from the conclusion of expert witness fees not previously estimated, which fees should not continue into 2H 2026. 1H litigation expenses resulted from a confluence of summary judgment and other motions, along with expert witness costs, in the remaining four unresolved court cases (out of nineteen total). Unfortunately, although 2H 2026 litigation expenses should be lower than for 1H 2026, UTMD's previous estimate that 2026 litigation expenses for the year as a whole would be less than in 2025 is no longer valid. Litigation expenses in 2025 were
Foreign currency G&A expenses expressed in USD were increased by FX rate differences by
The differences in period-to-period R&D expenses were due to varying project costs and increases in salaries for the same number of people. Since all new product development work in 2026 was carried out in the U.S., there was no FX rate impact.
The impact of differing FX rates in 2026 compared to 2025 on consolidated OE expressed in USD was relatively minor. The AUD was the primary stronger currency. Relative to the same periods in 2025, foreign currency OE in 2Q and 1H 2026 when converted to USD were increased by FX rate differences by a net
OE Category | 2Q 2026 | 2Q 2025 | 1H 2026 | 1H 2025 | ||||||||||||
S&M: | $ | 524 | $ | 524 | $ | 1,034 | $ | 1,024 | ||||||||
G&A: | 1,423 | 1,740 | 3,411 | 3,470 | ||||||||||||
R&D: | 154 | 135 | 308 | 290 | ||||||||||||
Total OE: | 2,101 | 2,399 | 4,753 | 4,784 | ||||||||||||
Income Before Tax (EBT)
EBT results from subtracting net non‑operating expense (NOE) or adding net non-operating income (NOI) from or to, as applicable, OI. Consolidated 2Q 2026 EBT was
NOE/NOI includes the combination of 1) expenses from loan interest and bank fees; 2) expenses or income from losses or gains from remeasuring the value of EUR cash bank balances in the UK, and GBP cash balances in Ireland, in USD terms on June 30, 2026; and 3) income from rent of underutilized property, investment income and royalties received from licensing the Company's technology.
Starting in 2024 for UTMD, there has been an additional excise tax included in UTMD's NOE: a stock repurchase
Net NOI is NOI minus NOE. Net NOI in 2Q 2026 was
EBITDA is a non-US GAAP metric that measures profitability performance without factoring in effects of financing, accounting decisions regarding non-cash expenses, capital expenditures or tax environments. Management believes that this operating performance metric provides meaningful supplemental information to both management and investors and confirms UTMD's ongoing excellent financial operating performance, as well as its ability to sustain high level financial performance during a challenging time.
Excluding the noncash effects of depreciation, amortization of intangible assets and stock option expense, 2Q 2026 consolidated EBT excluding the remeasured bank balance currency gain or loss ("adjusted consolidated EBITDA") was
UTMD's non-US GAAP adjusted consolidated EBITDA is the sum of the elements in the following table, each element of which is a US GAAP number:
2Q 2026 | 2Q 2025 | 1H 2026 | 1H 2025 | ||||||||||
EBT | $ | 3,286 | $ | 3,835 | $ | 6,468 | $ | 7,694 | |||||
Depreciation Expense | 210 | 206 | 421 | 405 | |||||||||
Femcare IIA Amortization Expense | - | 531 | 458 | 1,032 | |||||||||
Other Non-Cash Amortization Expense | 16 | 8 | 20 | 17 | |||||||||
Stock Option Compensation Expense | 73 | 86 | 192 | 168 | |||||||||
Interest Expense | - | - | - | - | |||||||||
Remeasured Foreign Currency Balances | 2 | 5 | 9 | 7 | |||||||||
UTMD non-US GAAP EBITDA: | $ | 3,587 | $ | 4,671 | $ | 7,568 | $ | 9,323 |
Net Income (NI)
NI in 2Q 2026 of
NI in 1H 2026 of
The consolidated income tax provision rate varies as the mix in taxable income among U.S. and foreign subsidiaries with differing income tax rates differs from period to period. The basic corporate income tax rates in each of the sovereignties were the same as in the prior year.
Earnings per share (EPS)
Diluted EPS in 2Q 2026 were
Diluted shares were 3,183,554 in 2Q 2026 compared to 3,245,979 in 2Q 2025. Diluted shares were 3,184,265 in 1H 2026 compared to 3,277,936 in 1H 2025. The lower diluted shares in both periods of 2026 were the result of shares repurchased during 1H 2026. Because the average exercise price of employee options was higher than the ending market price of the stock in both 2Q 2026 and 2Q 2025, the number of shares added as a dilution factor in both 2Q 2026 and 2Q 2025 were zero. The same was true for both 1H 2026 and 1H 2025. The number of shares used for calculating EPS in both years was higher than period-ending outstanding shares because of a time-weighted calculation of average outstanding shares.
Outstanding shares at the end of 2Q 2026 were 3,182,818 compared to 3,186,221 at the end of calendar year 2025. The difference was due to 3,403 shares repurchased in 1H 2026. Shares repurchased in 2Q 2026 were 1,207 at an average price of
The total number of outstanding unexercised employee and outside director options at June 30, 2026 was 119,086 at an average exercise price of
UTMD paid
UTMD's closing share price at the end of 2Q 2026 was
Balance Sheet.
At June 30, 2026 compared to the end of 2025, UTMD's cash and investments balance increased
Foreign currency exchange (FX) rates for Balance Sheet purposes are the applicable rates at the end of each reporting period. The FX rates from the applicable foreign currency to USD for assets and liabilities at the end of 2Q 2026 compared to the end of calendar year 2025 and the end of 2Q 2025 were
6/30/2026 | 12/31/2025 | Change | 6/30/2025 | Change | ||||||||||||||||
GBP | 1.32571 | 1.3445 | -1.40 | % | 1.37213 | -3.40 | % | |||||||||||||
EUR | 1.14165 | 1.17344 | -2.70 | % | 1.17706 | -3.00 | % | |||||||||||||
AUD | 0.69141 | 0.66679 | 3.70 | % | 0.65722 | 5.20 | % | |||||||||||||
CAD | 0.70392 | 0.72914 | -3.50 | % | 0.73422 | -4.10 | % | |||||||||||||
Financial ratios as of June 30, 2026 which may be of interest to stockholders follow:
1) Current Ratio = 48.6
2) Days in Trade Receivables (based on 2Q 2026 sales activity) = 38
3) Average Inventory Turns (based on 2Q 2026 CGS) = 1.7
4) 2026 YTD ROE (before dividends) =
Investors are cautioned that this press release contains forward looking statements and that actual events may differ from those projected. Risk factors that could cause results to differ materially from those projected include global economic conditions, market acceptance of products, regulatory approvals of products, regulatory intervention in current operations, government intervention in healthcare and the economy in general such as tariffs, tax reforms, the Company's ability to efficiently manufacture, market and sell products, cybersecurity and foreign currency exchange rates, among other factors that have been and will be outlined in UTMD's public disclosure filings with the SEC.
Utah Medical Products, Inc., with particular interest in health care for women and their babies, develops, manufactures and markets a broad range of disposable and reusable specialty medical devices recognized by clinicians in over one hundred countries around the world as the standard for obtaining optimal long-term outcomes for their patients. For more information about Utah Medical Products, Inc., visit UTMD's website at www.utahmed.com.
Utah Medical Products, Inc.
INCOME STATEMENT, Second Quarter (three months ended June 30)
(in thousands except earnings per share):
2Q 2026 | 2Q 2025 | Percent Change | ||||||||||
Net Sales | $ | 8,529 | $ | 9,953 | -14.30 | % | ||||||
Gross Profit | 4,758 | 5,595 | -15.00 | % | ||||||||
Operating Income | 2,649 | 3,196 | -17.10 | % | ||||||||
Income Before Tax | 3,286 | 3,835 | -14.30 | % | ||||||||
Net Income | 2,686 | 3,048 | -11.90 | % | ||||||||
Earnings Per Share | $ | 0.84 | $ | 0.94 | -10.10 | % | ||||||
Shares Outstanding (diluted) | 3,184 | 3,246 | ||||||||||
INCOME STATEMENT, First Half (six months ended June 30)
(in thousands except earnings per share):
1H 2026 | 1H 2025 | Percent Change | ||||||||||
Net Sales | $ | 17,252 | $ | 19,663 | -12.30 | % | ||||||
Gross Profit | 10,040 | 11,133 | -9.80 | % | ||||||||
Operating Income | 5,215 | 6,349 | -17.90 | % | ||||||||
Income Before Tax | 6,468 | 7,694 | -15.90 | % | ||||||||
Net Income | 5,290 | 6,089 | -13.10 | % | ||||||||
Earnings Per Share | $ | 1.66 | $ | 1.86 | -10.60 | % | ||||||
Shares Outstanding (diluted) | 3,184 | 3,278 | ||||||||||
BALANCE SHEET
(unaudited) | (unaudited) | (audited) | (unaudited) | |||||||||||||
(in thousands) | 30-Jun-26 | 31-Mar-26 | 31-Dec-25 | 30-Jun-25 | ||||||||||||
Assets | ||||||||||||||||
Cash & Investments | $ | 87,528 | $ | 87,406 | $ | 85,756 | $ | 82,179 | ||||||||
Accounts & Other Receivables, Net | 3,565 | 3,636 | 3,522 | 3,632 | ||||||||||||
Inventories | 9,003 | 8,722 | 7,935 | 8,233 | ||||||||||||
Other Current Assets | 543 | 614 | 529 | 331 | ||||||||||||
Total Current Assets | 100,639 | 100,378 | 97,742 | 94,375 | ||||||||||||
Property & Equipment, Net | 9,631 | 9,721 | 9,908 | 10,257 | ||||||||||||
Intangible Assets, Net | 14,302 | 14,283 | 14,892 | 16,170 | ||||||||||||
Total Assets | $ | 124,572 | $ | 124,382 | $ | 122,542 | $ | 120,802 | ||||||||
Liabilities & Stockholders' Equity | ||||||||||||||||
Accounts Payable | 876 | 1,194 | 911 | 737 | ||||||||||||
Other Accrued Liabilities | 1,194 | 2,311 | 1,687 | 1,517 | ||||||||||||
Total Current Liabilities | $ | 2,070 | $ | 3,505 | $ | 2,598 | $ | 2,254 | ||||||||
Deferred Tax Liability - Intangible Assets | - | - | 114 | 389 | ||||||||||||
Long Term Lease Liability | 194 | 210 | 225 | 256 | ||||||||||||
Deferred Revenue and Income Taxes | 274 | 294 | 337 | 370 | ||||||||||||
Stockholders' Equity | 122,034 | 120,373 | 119,268 | 117,533 | ||||||||||||
Total Liabilities & Stockholders' Equity | $ | 124,572 | $ | 124,382 | $ | 122,542 | $ | 120,802 | ||||||||
Contact:
Brian Koopman
(801) 566-1200
SOURCE: Utah Medical Products, Inc.
View the original press release on ACCESS Newswire