Merit Medical 2025 Q2 Earnings Record High Net Income Despite EPS Decline

Merit Medical (MMSI) reported its fiscal 2025 Q2 earnings on Jul 30th, 2025.

Merit Medical Systems reported mixed results for Q2 2025, with revenue surpassing expectations but EPS falling short. Despite a 9.8% decline in EPS to $0.55, the company achieved a record high net income for fiscal Q2. Guidance was raised, reflecting stronger-than-expected performance and profitability expectations for the remainder of the year. CEO Fred P. Lampropoulos expressed optimism for achieving improved margins driven by favorable trade policies, underlining confidence in Merit Medical's leadership and execution capabilities.

Revenue

The total revenue for Merit Medical rose by 13.2% to $382.46 million in Q2 2025, compared to $338 million in Q2 2024. Cardiovascular products generated the bulk of revenue, amounting to $364.02 million, while the Endoscopy segment contributed $18.44 million, culminating in a total revenue of $382.46 million for the quarter.

Earnings/Net Income

Merit Medical's EPS declined by 9.8% to $0.55 in 2025 Q2 from $0.61 in 2024 Q2. Additionally, net income decreased by 8.8% to $32.58 million in 2025 Q2 from $35.73 million in 2024 Q2. Despite the decline, Merit Medical achieved a record high fiscal Q2 net income, marking the highest in over 20 years. The decline suggests challenges in maintaining EPS growth.

Price Action

The stock price of Merit Medical edged up 0.19% during the latest trading day, despite declining 2.47% over the past week and tumbling 11.27% month-to-date. The volatility reflects investor uncertainty following the mixed earnings report.

Post-Earnings Price Action Review

The strategy of purchasing Merit Medical shares after a revenue increase quarter-over-quarter, followed by holding for 30 days, yielded moderate returns but fell short of the benchmark. The approach achieved a return of 85.81%, underperforming the benchmark return of 87.61%, resulting in an excess return of -1.80%. This strategy's compound annual growth rate (CAGR) was 13.28%, with a maximum drawdown of 0.00% and a Sharpe ratio of 0.45, indicating a low-risk approach with steady growth. Despite the stable growth, the strategy's returns highlighted the necessity for cautious optimism amid fluctuating market conditions.

CEO Commentary

“We delivered better-than-expected financial performance in the second quarter, with our top-and-bottom line results exceeding the high-end of our forecast,” said Fred P. Lampropoulos, Chairman and Chief Executive Officer. He highlighted a robust first half, indicating constant currency organic growth of over 6% and a 12% increase in non-GAAP EPS. Lampropoulos expressed confidence in the company's ability to achieve stronger non-GAAP gross and operating margins for 2025, driven by favorable trade policies and effective execution by the team, reflecting an optimistic leadership outlook.

Guidance

“We have increased our 2025 revenue and non-GAAP earnings per share guidance to reflect our stronger-than-expected first half financial results and our updated profitability expectations for the balance of the year,” the CEO noted. The updated guidance suggests continued confidence in achieving stable constant currency growth, improving profitability, and solid cash flow generation throughout 2025.

Additional News

Merit Medical Systems announced the acquisition of Biolife, a manufacturer of hemostatic devices, aligning with its strategy to expand its product offerings in complementary medical device categories. The company also appointed Martha Aronson as the new President and CEO, effective October 3, 2025, signaling a strategic leadership transition aimed at bolstering its operational capabilities and market presence. This executive change follows the company's focus on enhancing its market positioning and capitalizing on emerging opportunities within the healthcare sector. These developments reflect Merit Medical's commitment to growth and strategic evolution in the competitive medical technology landscape.