Merit Medical Systems (NASDAQ:MMSI) Exceeds Q4 CY2025 Expectations

Merit Medical Systems (NASDAQ:MMSI) Exceeds Q4 CY2025 Expectations

Adam Hejl

Wed, February 25, 2026 at 6:43 AM GMT+9 5 min read

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Medical device company Merit Medical Systems (NASDAQ:MMSI) announced better-than-expected revenue in Q4 CY2025, with sales up 10.9% year on year to $393.9 million. The company’s full-year revenue guidance of $1.62 billion at the midpoint came in 0.9% above analysts’ estimates. Its non-GAAP profit of $0.93 per share was 2.5% below analysts’ consensus estimates.

Is now the time to buy Merit Medical Systems? Find out in our full research report.

Merit Medical Systems (MMSI) Q4 CY2025 Highlights:

**Revenue:** $393.9 million vs analyst estimates of $390 million (10.9% year-on-year growth, 1% beat)

**Adjusted EPS:** $0.93 vs analyst expectations of $0.95 (2.5% miss)

**Adjusted EBITDA:** $95.63 million vs analyst estimates of $86.98 million (24.3% margin, 9.9% beat)

**Adjusted EPS guidance for the upcoming financial year 2026** is $4.08 at the midpoint, beating analyst estimates by 0.9%

**Operating Margin:** 13.8%, up from 10.3% in the same quarter last year

**Free Cash Flow Margin:** 18.8%, similar to the same quarter last year

**Organic Revenue** rose 6.6% year on year (beat)

**Market Capitalization:** $4.84 billion

“Merit delivered better-than-expected revenue and financial results in the fourth quarter,” said Martha G. Aronson, Merit’s President and CEO.

Company Overview

Founded in 1987 and now offering over 1,700 patented products across global markets, Merit Medical Systems (NASDAQ:MMSI) manufactures and markets specialized medical devices used in minimally invasive procedures for cardiology, radiology, oncology, critical care, and endoscopy.

Revenue Growth

A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Luckily, Merit Medical Systems’s sales grew at a decent 9.5% compounded annual growth rate over the last five years. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers.

Merit Medical Systems Quarterly Revenue

Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Merit Medical Systems’s annualized revenue growth of 9.8% over the last two years aligns with its five-year trend, suggesting its demand was stable.

Merit Medical Systems Year-On-Year Revenue Growth

We can dig further into the company’s sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don’t accurately reflect its fundamentals. Over the last two years, Merit Medical Systems’s organic revenue averaged 6.4% year-on-year growth. Because this number is lower than its two-year revenue growth, we can see that some mixture of acquisitions and foreign exchange rates boosted its headline results.

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Merit Medical Systems Organic Revenue Growth

This quarter, Merit Medical Systems reported year-on-year revenue growth of 10.9%, and its $393.9 million of revenue exceeded Wall Street’s estimates by 1%.

Looking ahead, sell-side analysts expect revenue to grow 6% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is above the sector average and indicates the market is baking in some success for its newer products and services.

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Operating Margin

Merit Medical Systems was profitable over the last five years but held back by its large cost base. Its average operating margin of 9.6% was weak for a healthcare business.

On the plus side, Merit Medical Systems’s operating margin rose by 6.5 percentage points over the last five years, as its sales growth gave it operating leverage. Zooming in on its more recent performance, we can see the company’s trajectory is intact as its margin has also increased by 2.3 percentage points on a two-year basis.

Merit Medical Systems Trailing 12-Month Operating Margin (GAAP)

In Q4, Merit Medical Systems generated an operating margin profit margin of 13.8%, up 3.5 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Merit Medical Systems’s EPS grew at an astounding 17.7% compounded annual growth rate over the last five years, higher than its 9.5% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Merit Medical Systems Trailing 12-Month EPS (Non-GAAP)

We can take a deeper look into Merit Medical Systems’s earnings quality to better understand the drivers of its performance. As we mentioned earlier, Merit Medical Systems’s operating margin expanded by 6.5 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

In Q4, Merit Medical Systems reported adjusted EPS of $0.93, in line with the same quarter last year. This print missed analysts’ estimates, but we care more about long-term adjusted EPS growth than short-term movements. Over the next 12 months, Wall Street expects Merit Medical Systems’s full-year EPS of $3.72 to grow 8.5%.

Key Takeaways from Merit Medical Systems’s Q4 Results

It was good to see Merit Medical Systems provide full-year revenue guidance that slightly beat analysts’ expectations. We were also happy its organic revenue narrowly outperformed Wall Street’s estimates. On the other hand, its EPS missed. Overall, this print had some key positives. The stock traded up 2.2% to $83.64 immediately following the results.

Is Merit Medical Systems an attractive investment opportunity at the current price? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.

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