Merit Medical Systems — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported revenue for the three months ended September 30, 2026, was $416.2 million, an 8.4% increase year-over-year.
• Constant currency revenue increased 8% year-over-year, while constant currency organic revenue increased 9% year-over-year.
• GAAP operating margin was 14.1% compared to 11.1% in the prior year period.
• Non-GAAP operating margin was 21.3% compared to 19.7% in the prior year period.
• GAAP net income was $42.3 million ($0.70 per share), up 51% from $27.8 million ($0.46 per share) in the prior year.
• Non-GAAP net income was $67.4 million ($1.12 per share), up 22% from $54.9 million ($0.92 per share) in the prior year.
• Cash flow from operations was $175.2 million year-to-date.
• Free cash flow generation was $129.5 million year-to-date.
• As of September 30, 2026, cash and cash equivalents were $503.6 million, compared to $446.4 million as of December 31, 2025.
• Total debt obligations remained at $747.5 million as of September 30, 2026, and December 31, 2025.
• Available borrowing capacity was approximately $697 million as of September 30, 2026.

Guidance and Future Outlook:

• Raised full-year 2026 revenue guidance to $1.635 billion – $1.642 billion (8% – 8% year-over-year growth), compared to prior guidance of $1.631 billion – $1.643 billion.
• Raised full-year 2026 non-GAAP earnings per share guidance to $4.33 – $4.37 (13% – 14% year-over-year growth), compared to prior guidance of $4.25 – $4.35.
• Guidance assumes no material acquisitions, non-recurring transactions, or impacts from trade policies and related actions implemented subsequent to the release date.
• Management remains focused on delivering Continued Growth Initiative financial targets for the three-year period ending December 31, 2026.
• Management is finalizing a longer-term strategic plan focused on sustainable growth, enhanced profitability, and value creation.

Business Segments and Product Lines:

• Foundational Segment: Reported revenue of $275.7 million for the quarter, up 6% year-over-year.
  • Access revenue was $157.9 million (up 4%).
  • OEM revenue was $46.3 million (up 12%).
  • Procedural Solutions revenue was $27.2 million (down 16%).
  • Vascular Intervention revenue was $42.4 million (up 20%).
• Therapeutic Segment: Reported revenue of $140.5 million for the quarter, up 14% year-over-year.
  • Cardiac Therapies revenue was $27.5 million (up 8%).
  • Endoscopy revenue was $23.4 million (up 33%).
  • OEM revenue was $13.1 million (up 32%).
  • Oncology revenue was $27.1 million (up 16%).
  • Renal Therapies revenue was $13.6 million (down 2%).
  • Vascular Intervention revenue was $35.8 million (up 8%).
• Nine-month 2026 total revenue was $1.217 billion, up 8% year-over-year.
• Nine-month 2026 Foundational revenue was $812.2 million (up 6%).
• Nine-month 2026 Therapeutic revenue was $404.8 million (up 13%).

Market and Competitive Landscape:

• Management reported strong revenue growth trends in the U.S. market.
• Demand for Merit's products was better-than-expected across both Foundational and Therapeutic platforms.
• The company serves customers worldwide with a sales force and clinical support team totaling approximately 900 individuals.

Risks and Challenges:

• Risks include geopolitical instability related to conflicts among the United States, Israel, and Iran.
• Integration risks associated with the acquisition of Solo Pace, Inc. (October 2026) and other recent acquisitions (View Point, C2, Biolife).
• Potential impacts from trade policies, tariffs, and duties implemented by the U.S. or other countries.
• Risks related to supply chain, manufacturing, or sterilization process disruptions.
• Regulatory risks, including compliance with U.S. and foreign laws, Medical Device Regulation (EU), and potential product recalls or liability claims.
• Risks associated with the 3.00% Convertible Senior Notes due 2029, including dilutive impact on earnings per share.
• Risks regarding executive succession and leadership transition.

Management Commentary and Tone:

• Martha G. Aronson, President and CEO, stated results exceeded the high end of expectations, driven by 9% organic constant currency revenue growth.
• Management expressed confidence in the team's ability to execute, citing attractive constant currency growth, improving profitability, and solid cash flow generation.
• The tone was positive, highlighting strong growth in non-GAAP operating profit (up 17%) and non-GAAP EPS (up 22%).

Other Key Points:

• Acquisitions: Revenue from acquisitions View Point Medical, Inc. (April 2026) and assets from Pentax of America, Inc. (C2 CryoBalloon™, November 2025) were excluded from organic revenue calculations. The Biolife Merger (May 2025) was also excluded from nine-month organic revenue.
• Divestitures: The DualCap® product line was sold to Health Line International Corporation on February 17, 2026, for consideration of $28 million ($25.5 million paid at closing); revenue from this divestiture was excluded from organic revenue.
• Non-GAAP Adjustments: Non-GAAP measures exclude amortization of intangibles, inventory mark-ups related to acquisitions, performance-based share-based compensation, corporate restructuring costs, acquisition-related expenses, medical device regulation expenses (EU MDR), and long-term debt costs.
• Conference Call: An investor conference call was held on October 29, 2026, at 4:30 p.m. Eastern Time.