Merit Medical Reports First Quarter 2026 Results and Updates Full-Year Guidance

Financial Highlights†

Reported revenue of $381.9 million, up 7%

Constant currency revenue* and constant currency revenue, organic* up 5% and up 3%, respectively Constant currency revenue, organic* increased 4%, excluding revenue from divested product line

GAAP operating margin of 11.6%, compared to 11.5% in prior year period

Non-GAAP operating margin* of 19.7%, compared to 19.3% in prior year period

GAAP EPS $0.68, up 39%

Non-GAAP EPS* $0.94, up 9%

Free cash flow* generation of $24.7 million, up 26%

Business Developments

On February 17, 2026, Merit sold certain assets related to the DualCap® product line to Health Line International Corporation for a purchase price of $28 million, of which $25.5 million was paid in cash at closing

On April 1, 2026, Merit acquired View Point Medical, Inc., manufacturer of the OneMark® Detection Imaging System and OneMark Tissue Markers, for $140 million, of which $90 million was paid in cash at closing

Beginning in the first quarter of 2026, Merit reorganized the presentation of revenue into two product categories – Foundational and Therapeutic - to better reflect the clinical uses of our diverse portfolio of products**

† Comparisons above are calculated for the current quarter compared with the first 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.

** Merit presented historical revenue information under the new product categories in a Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on April 13, 2026.

SOUTH JORDAN, Utah, April 30, 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-month period ended March 31, 2026.

“Merit delivered first quarter financial results that exceeded the high-end of our expectations,” said Martha G. Aronson, Merit’s President and CEO. “We delivered 3.7% organic, constant currency revenue growth, excluding the impact of a strategic divestiture. We also delivered solid improvement in our non-GAAP operating margin despite incremental year-over-year headwinds from tariffs, and growth in our non-GAAP earnings per share and free cash flow, which increased 9% and 26%, respectively, year-over-year.”

Ms. Aronson continued: “We are pleased with the solid start to 2026 and remain confident in the team’s ability to drive stable constant currency growth, improving profitability, and solid free cash flow in 2026, the final year of our Continued Growth Initiatives Program. Importantly, we continue to identify opportunities to enhance our long-term organic growth and profitability profile as evidenced by the strategic divestiture of a non-core product line in February and our acquisition of the OneMark System from View Point Medical on April 1, 2026. This acquisition expands Merit’s portfolio of therapeutic oncology products with a differentiated oncology offering, serving a large and growing market opportunity, and is expected to contribute margin-accretive growth going forward.”

Merit’s revenue by product category for the three-month periods ended March 31, 2026 and 2025 was as follows (unaudited; in thousands, except for percentages):

GAAP gross margin was 48.4%, compared to 48.4% for the first quarter of 2025. Non-GAAP gross margin* was 53.2%, compared to 53.4% for the first quarter of 2025.

GAAP operating margin was 11.6%, compared to 11.5% for the first quarter of 2025. Non-GAAP operating margin* was 19.7%, compared to 19.3% for the first quarter of 2025.

GAAP net income was $41.0 million, or $0.68 per share, compared to $30.1 million, or $0.49 per share, for the first quarter of 2025. Non-GAAP net income* was $56.7 million, or $0.94 per share, compared to $52.9 million, or $0.86 per share, for the first quarter of 2025.

As of March 31, 2026, Merit had cash and cash equivalents of $488.1 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 March 31, 2026.

Fiscal Year 2026 Financial Guidance

Based upon the information currently available to Merit’s management, for the twelve-months 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*

*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 $0.04 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) “Updated Guidance” reflects the impacts of Merit’s acquisition of View Point Medical, Inc. announced on April 1, 2026. Specifically, from the acquisition effective date of April 1, 2026 through December 31, 2026, the acquisition is projected to contribute revenue in the range of $2 million to $4 million and to dilute Merit’s “Prior Guidance” for non-GAAP earnings per share by approximately $0.05, inclusive of approximately $2.0 million of lower interest income on cash balances used for the total purchase consideration and excluding approximately $5.3 million of non-cash and non-recurring transaction-related expenses, and to be dilutive to Merit’s full-year 2026 GAAP net income and GAAP earnings per share.

(3) “Prior Guidance” reflects Merit’s full-year 2026 financial guidance, previously introduced on February 24, 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 April 30, 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.

As previously announced, Merit will hold its investor conference call today, Thursday, April 30, 2026, at 4:30 p.m., Eastern Time, to discuss its results for the first 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.

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

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 segments, 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 $(7.9) million to reported revenue for the three-month period ended March 31, 2026 was calculated using the applicable average foreign exchange rates for the three-month period ended March 31, 2025.

Constant Currency Revenue, Organic

Merit’s constant currency revenue, organic, is defined, with respect to prior fiscal year periods, as GAAP revenue. 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. For the three-month period ended March 31, 2026, Merit’s constant currency revenue, organic, excludes revenues attributable to products acquired in connection with (i) the assets acquired from Pentax of America, Inc. related to the C2 CryoBalloon™ device in November 2025 (the “C2 Acquisition”) and (ii) Merit’s merger transaction with Biolife Delaware, L.L.C. (“Biolife”) in May 2025 (the “Biolife Merger”).

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. 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 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 debt issuance costs, 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 is defined as non-GAAP net income divided by the diluted shares outstanding for the corresponding period.

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-month periods ended March 31, 2026 and 2025. The non-GAAP income adjustments referenced in the following tables do not reflect non-performance-based stock compensation expense of $3.2 million and $4.3 million for the three-month periods ended March 31, 2026 and 2025, respectively.

Reconciliation of GAAP Net Income to Non-GAAP Net Income

(Unaudited, in thousands except per share amounts)

___________________________

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)

___________________________

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)   Represents incremental expenses incurred to comply with the E.U. Medical Device Regulation.

(c)   Represents costs to comply with Merit’s corporate integrity agreement with the U.S. Department of Justice.

(d)   Includes equity method investment loss (income) 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)

___________________________

(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 sold certain assets relating to the DualCap® product line to Health Line International Corporation for a purchase price of $28 million, of which $25.5 million was paid at closing.

Reconciliation of Reported Gross Margin to Non-GAAP Gross Margin (Non-GAAP)

(Unaudited, as a percentage of reported revenue)

___________________________

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)

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

___________________________

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 February 24, 2026.

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 more than 800 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