UTMD Reports Financial Performance for Second Calendar Quarter and First Half 2025
Rhea-AI Summary
Utah Medical Products (NASDAQ:UTMD) reported Q2 2025 financial results with consolidated revenues of $9.95 million, down 4.3% from Q2 2024. First half 2025 revenues decreased 9.6% to $19.66 million. The decline was primarily attributed to reduced sales to PendoTECH, representing 71% of Q2 decline and 86% of 1H decline.
Key metrics include Q2 2025 gross profit margin of 56.2% (vs 60.1% in Q2 2024), operating income margin of 32.1% (vs 33.1%), and net income margin of 30.6% (vs 33.2%). The company maintained a strong balance sheet with $82.2 million in cash and investments as of June 30, 2025, with no debt.
During 1H 2025, UTMD paid $2.0 million in dividends and repurchased $6.7 million of common stock while investing $0.2 million in capital expenditures.
Positive
- Strong balance sheet with $82.2 million in cash and investments and zero debt
- Direct domestic sales of non-Filshie devices increased 10% in Q2 2025
- U.S. Filshie Clip System sales grew 8% in Q2 2025
- Active capital return with $2.0 million in dividends and $6.7 million in share repurchases during 1H 2025
- Lower U.S. litigation costs: $355 reduction in Q2 2025 vs Q2 2024
Negative
- Revenue declined 4.3% in Q2 2025 and 9.6% in 1H 2025
- Gross profit margin contracted to 56.2% in Q2 2025 from 60.1% in Q2 2024
- International sales underperformed expectations with 15.5% decline in 1H 2025
- Operating income decreased 7.1% in Q2 2025
- Unfavorable product mix and higher raw material costs in Ireland operations
News Market Reaction
On the day this news was published, UTMD declined 0.21%, reflecting a mild negative market reaction. This price movement removed approximately $400K from the company's valuation, bringing the market cap to $190M at that time.
Data tracked by StockTitan Argus on the day of publication.
SALT LAKE CITY, UT / ACCESS Newswire / July 24, 2025 / Utah Medical Products, Inc. [Nasdaq:UTMD] reports second calendar quarter (2Q) and first half (1H) 2025 financial results which are consistent with overall beginning-of-year projections.
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 2025 revenues were
UTMD's profit margins compared to those of the prior year's same periods follow:
2Q 2025 | 2Q 2024 | 1H 2025 | 1H 2024 | |||||||||||||
(Apr - Jun) | (Apr - Jun) | (Jan - Jun) | (Jan - Jun) | |||||||||||||
Gross Profit Margin (GP/ sales): | 56.20 | % | 60.10 | % | 56.60 | % | 59.90 | % | ||||||||
Operating Income Margin (OI/ sales): | 32.10 | % | 33.10 | % | 32.30 | % | 33.70 | % | ||||||||
Income B4 Tax Margin (EBT/ sales): | 38.50 | % | 40.50 | % | 39.10 | % | 41.40 | % | ||||||||
Net Income Margin (NI/ sales): | 30.60 | % | 33.20 | % | 31.00 | % | 34.10 | % | ||||||||
The 2Q percentage decline in consolidated revenues was less than for 1H primarily because the period-to-period decline in UTMD sales to its previously major biopharmaceutical OEM customer PendoTECH decreased from
UTMD's Gross Profit (GP) margin contracted more than expected in 2Q 2025 primarily as a result of lower sales than expected and an unfavorable product mix for UTMD's Ireland operations. Sales of devices from Utah operations maintained GP margins consistent with the prior 1Q 2025, as well as for year 2024. Operating Income (OI) declined less than the GP decline due to
UTMD's June 30, 2025 Balance Sheet continued strong, with no debt. Ending Cash and Investments were
Revenues (sales) -2Q 2025
Total consolidated 2Q 2025 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, sales of biopharma pressure monitoring devices and accessories to UTMD's previously largest OEM customer, PendoTECH, were
Despite the lower 2Q 2025 sales to PendoTECH, which were all domestic, aggregated 2Q 2025 domestic sales 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. The domestic sales increase was because 2Q 2025 sales of the Filshie Clip System in the U.S. were
On the other hand, 2Q 2025 international sales to customers outside the U.S. (OUS), were lower than expected. Total OUS sales in 2Q 2025 were
The remaining
The portion of OUS sales invoiced in foreign currencies in USD terms were
2Q 2025 | 2Q 2024 | Change | ||||||||||
GBP | 1.3368 | 1.2615 | +6.0 | % | ||||||||
EUR | 1.1569 | 1.0752 | +7.6 | % | ||||||||
AUD | 0.6394 | 0.6594 | (3.0 | %) | ||||||||
CAD | 0.7227 | 0.7308 | (1.1 | %) | ||||||||
The
Sales -1H 2025
Total consolidated 1H 2025 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, sales of biopharma pressure monitoring devices and accessories to UTMD's previously largest OEM customer, PendoTECH, were
Aggregated 1H 2025 domestic sales at
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. The non-PendoTECH domestic sales increase was because 1H 2025 sales of the Filshie Clip System in the U.S. were
On the other hand, 1H 2025 international sales to customers outside the U.S. (OUS), were lower than expected. Total OUS sales in 1H 2025 were
The remaining
The portion of OUS sales invoiced in foreign currencies in USD terms were
1H2025 | 1H2024 | Change | ||||||||||
GBP | 1.2977 | 1.2646 | +2.6 | % | ||||||||
EUR | 1.1155 | 1.0787 | +3.4 | |||||||||
AUD | 0.6329 | 0.6586 | (3.9 | %) | ||||||||
CAD | 0.7094 | 0.7362 | (3.6 | %) | ||||||||
The
Gross Profit (GP)
GP results from subtracting the cost of goods sold (CGS), comprised of costs of production, 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 and engineering personnel.
UTMD's 2Q 2025 GP was
The lower margins were primarily due to Ireland operations, as a result of an unfavorable product mix, lower sales which absorbed less fixed manufacturing overhead costs, higher raw material costs and an increase in intercompany finished goods inventory manufactured in Ireland which required reserved gross profit. With absorption of MOH helped by higher direct sales, gross margins in the U.S. were consistent with past periods in 2024, and in 1Q 2025.
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.
OI in 2Q 2025 of
OI in 1H 2025 was
The following table summarizes OE in 2Q and 1H 2025 compared to the same periods in 2024 by OE category:
OE Category | 2Q 2025 | % of sales | 2Q 2024 | % of sales | 1H 2025 | % of sales | 1H 2024 | % of sales | |||||||||||||||||
S&M: | $ | 524 | 5.3 | $ | 546 | 5.3 | $ | 1,024 | 5.2 | $ | 958 | 4.4 | |||||||||||||
G&A: | 1,740 | 17.5 | 2,014 | 19.4 | 3,470 | 17.6 | 4,219 | 19.4 | |||||||||||||||||
R&D: | 135 | 1.3 | 255 | 2.4 | 290 | 1.5 | 520 | 2.4 | |||||||||||||||||
Total OE: | 2,399 | 24.1 | 2,815 | 27.1 | 4,784 | 24.3 | 5,697 | 26.2 | |||||||||||||||||
Because of lower S&M expenses in 2Q 2025 along with lower sales, S&M expenses as a percentage of sales remained the same. In 1H 2025, higher expenses with lower sales increased S&M expenses as a percentage of sales to
S&M OE were
G&A expenses dominate UTMD's OE, largely because of non-cash expenses from the amortization of Identifiable Intangible Assets (IIA) associated with the Filshie Clip System and the expenses of current litigation in the U.S. A segmentation of USD-denominated G&A expenses follows:
G&A Exp Category | 2Q 2025 | % of sales | 2Q 2024 | % of sales | 1H 2025 | % of sales | 1H 2024 | % of sales | |||||||||||||||||
IIA Amort- UK: | $ | 531 | 5.3 | $ | 501 | 4.8 | $ | 1,032 | 5.2 | $ | 1,005 | 4.6 | |||||||||||||
Other- UK: | 189 | 173 | 379 | 360 | |||||||||||||||||||||
U.S. Litigation | 280 | 2.8 | 635 | 6.1 | 587 | 3 | 1,378 | 6.3 | |||||||||||||||||
Other- US: | 603 | 6.1 | 557 | 5.4 | 1,197 | 6.1 | 1,158 | 5.3 | |||||||||||||||||
IRE: | 88 | 92 | 172 | 186 | |||||||||||||||||||||
AUS: | 16 | 24 | 34 | 66 | |||||||||||||||||||||
CAN: | 33 | 32 | 69 | 66 | |||||||||||||||||||||
Total G&A: | 1,740 | 17.5 | 2,014 | 19.4 | 3,470 | 17.6 | 4,219 | 19.4 | |||||||||||||||||
Total consolidated G&A expenses in 2Q 2025 were
The differences in period-to-period R&D expenses were primarily due to the completion of independent validation of material composition of biopharma sensors. Since all R&D in 2025 was carried out in the U.S., there was no FX rate impact.
The impact of differing FX rates in 2025 and 2024 on OE expressed in USD was minor. The AUD and CAD were slightly weaker, but the EUR and GBP stronger which helped increase foreign currency OE when converted to USD by a net
OE Category | 2Q 2025 const FX | 2Q 2024 | 1H 2025 const FX | 1H 2024 | ||||||||||||
S&M: | $ | 520 | $ | 546 | $ | 1,022 | $ | 958 | ||||||||
G&A: | 1,694 | 2,014 | 3,432 | 4,219 | ||||||||||||
R&D: | 135 | 255 | 290 | 520 | ||||||||||||
Total OE: | 2,349 | 2,815 | 4,744 | 5,697 | ||||||||||||
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 2025 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, 2025; 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 is an additional excise tax included in NOE: a stock repurchase excise tax included in the so-called "Inflation Reduction Act of 2022". After the U.S. Treasury and IRS announced regulations governing the stock repurchase excise tax in 2Q 2024, UTMD began reporting the NOE in its 2Q 2024 income statement for the
Net NOI is NOI minus NOE. Net NOI in 2Q 2025 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 2025 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 2025 | 2Q 2024 | 1H 2025 | 1H 2024 | |||||||||||||
EBT | $ | 3,835 | $ | 4,211 | $ | 7,694 | $ | 9,010 | ||||||||
Depreciation Expense | 206 | 172 | 405 | 327 | ||||||||||||
Femcare IIA Amortization Expense | 531 | 501 | 1,032 | 1,005 | ||||||||||||
Other Non-Cash Amortization Expense | 8 | 8 | 17 | 18 | ||||||||||||
Stock Option Compensation Expense | 86 | 52 | 168 | 130 | ||||||||||||
Interest Expense | - | - | - | - | ||||||||||||
Remeasured Foreign Currency Balances | 5 | -2 | 7 | -1 | ||||||||||||
UTMD non-US GAAP EBITDA: | $ | 4,671 | $ | 4,942 | $ | 9,323 | $ | 10,489 | ||||||||
Net Income (NI)
NI in 2Q 2025 of
NI in 1H 2025 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 2025 were
Diluted shares were 3,245,979 in 2Q 2025 compared to 3,531,572 in 2Q 2024. Diluted shares were 3,277,936 in 1H 2025 compared to 3,579,435 in 1H 2024. The lower diluted shares in both periods of 2025 were the result of shares repurchased during 1H 2025. Because the average exercise price of employee options was higher than the ending market price of the stock in both 2Q 2025 and 2Q 2024, the number of shares added as a dilution factor in both 2Q 2025 and 2Q 2024 were zero. The same was true for both 1H 2025 and 1H 2024. 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 2025 were 3,215,901 compared to 3,335,156 at the end of calendar year 2024. The difference was due to 119,255 shares repurchased in 1H 2025. Shares repurchased in 2Q 2025 were 64,988 at an average price of
The total number of outstanding unexercised employee and outside director options at June 30, 2025 was 97,685 at an average exercise price of
UTMD paid
UTMD's closing share price at the end of 2Q 2025 was
Balance Sheet.
At June 30, 2025 compared to the end of 2024, UTMD's cash and investments balance declined only
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 2025 compared to the end of calendar year 2024 and the end of 2Q 2024 were
6/30/2025 | 12/31/2024 | Change | 6/30/2024 | Change | ||||||||||||||||
GBP | 1.37213 | 1.25209 | 9.60 | % | 1.26371 | 8.60 | % | |||||||||||||
EUR | 1.17706 | 1.03505 | 13.70 | % | 1.07109 | 9.90 | % | |||||||||||||
AUD | 0.65722 | 0.61834 | 6.30 | % | 0.66742 | -1.50 | % | |||||||||||||
CAD | 0.73422 | 0.69428 | 5.80 | % | 0.73068 | 0.50 | % | |||||||||||||
Financial ratios as of June 30, 2025 which may be of interest to stockholders follow:
1) Current Ratio = 41.9
2) Days in Trade Receivables (based on 2Q 2025 sales activity) = 33
3) Average Inventory Turns (based on 2Q 2025 CGS) = 2.1
4) 2025 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 2025 | 2Q 2024 | Percent Change | ||||||||||
Net Sales | $ | 9,953 | $ | 10,400 | -4.30 | % | ||||||
Gross Profit | 5,595 | 6,253 | -10.50 | % | ||||||||
Operating Income | 3,196 | 3,438 | -7.10 | % | ||||||||
Income Before Tax | 3,835 | 4,211 | -8.90 | % | ||||||||
Net Income | 3,048 | 3,453 | -11.70 | % | ||||||||
Earnings Per Share | $ | 0.94 | $ | 0.98 | -4.00 | % | ||||||
Shares Outstanding (diluted) | 3,246 | 3,532 | ||||||||||
INCOME STATEMENT, First Half (six months ended June 30)
(in thousands except earnings per share):
1H 2025 | 1H 2024 | Percent Change | ||||||||||
Net Sales | $ | 19,663 | $ | 21,740 | -9.60 | % | ||||||
Gross Profit | 11,133 | 13,018 | -14.50 | % | ||||||||
Operating Income | 6,349 | 7,321 | -13.30 | % | ||||||||
Income Before Tax | 7,694 | 9,010 | -14.60 | % | ||||||||
Net Income | 6,089 | 7,409 | -17.80 | % | ||||||||
Earnings Per Share | $ | 1.86 | $ | 2.07 | -10.30 | % | ||||||
Shares Outstanding (diluted) | 3,278 | 3,579 | ||||||||||
BALANCE SHEET
(unaudited) | (unaudited) | (audited) | (unaudited) | |||||||||||||
(in thousands) | 30-Jun-25 | 31-Mar-25 | 31-Dec-24 | 30-Jun-24 | ||||||||||||
Assets | ||||||||||||||||
Cash & Investments | $ | 82,179 | $ | 83,325 | $ | 82,976 | $ | 89,219 | ||||||||
Accounts & Other Receivables, Net | 3,632 | 3,944 | 4,095 | 3,668 | ||||||||||||
Inventories | 8,233 | 8,647 | 8,812 | 9,058 | ||||||||||||
Other Current Assets | 331 | 483 | 448 | 377 | ||||||||||||
Total Current Assets | 94,375 | 96,399 | 96,331 | 102,322 | ||||||||||||
Property & Equipment, Net | 10,257 | 9,945 | 9,762 | 10,194 | ||||||||||||
Intangible Assets, Net | 16,170 | 16,175 | 16,445 | 17,516 | ||||||||||||
Total Assets | $ | 120,802 | $ | 122,519 | $ | 122,538 | $ | 130,032 | ||||||||
Liabilities & Stockholders' Equity | ||||||||||||||||
Accounts Payable | 737 | 914 | 696 | 834 | ||||||||||||
REPAT Tax Payable | - | 698 | 698 | 558 | ||||||||||||
Other Accrued Liabilities | 1,517 | 2,712 | 2,363 | 2,547 | ||||||||||||
Total Current Liabilities | $ | 2,254 | $ | 4,324 | $ | 3,757 | $ | 3,939 | ||||||||
Deferred Tax Liability - Intangible Assets | 389 | 493 | 604 | 860 | ||||||||||||
Long Term Lease Liability | 256 | 269 | 282 | 275 | ||||||||||||
Long Term REPAT Tax Payable | - | - | - | 698 | ||||||||||||
Deferred Revenue and Income Taxes | 370 | 386 | 468 | 208 | ||||||||||||
Stockholders' Equity | 117,533 | 117,047 | 117,427 | 124,052 | ||||||||||||
Total Liabilities & Stockholders' Equity | $ | 120,802 | $ | 122,519 | $ | 122,538 | $ | 130,032 | ||||||||
Contact:
Brian Koopman
(801) 566-1200
SOURCE: Utah Medical Products, Inc.
View the original press release on ACCESS Newswire
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