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- **Record Performance**: Q3 revenue up 13% YoY, non-GAAP EPS of $1.08 beats estimates, 53.6% gross margin (highest in company history). 
- **Strategic Wins**: WRAPSODY CIE adoption exceeds expectations, C2 CryoBalloon acquisition expands endoscopy portfolio. 
- **China Challenges**: Sales down 1% YoY, but VBP impact better than feared; core business volume strong. 
- **Tariff Resilience**: Overcame 90 basis point headwind, with $7.6 million annualized tariff impact. 
- **Free Cash Flow**: $140 million year-to-date, targeting $175 million for 2025 to fund growth and M&A.

**【CEO Summary Section】**
- **Revenue Growth**: Total revenue of $384.2 million, up 13% year-over-year (12.5% on constant currency basis), driven by 7.8% organic growth. Non-GAAP EPS of $1.08 exceeded expectations, with free cash flow of $53 million (38% YoY increase). 
- **Gross Margin Record**: Achieved 53.6% gross margin, a 267 basis point YoY improvement, supported by product mix, pricing, and cost control. 
- **New Product Momentum**: Launched WRAPSODY CIE with strong early adoption in hospitals, and announced C2 CryoBalloon acquisition for gastroenterology. 
- **Strategic Acquisitions**: Completed $22 million acquisition of Pentax's C2 CryoBalloon to expand endoscopy portfolio. 
- **China Market**: Sales decreased 1% YoY, but VBP impact was better than expected, with 2% growth excluding tariffs. 

**【CFO Financial Commentary】**
- **Revenue Breakdown**: Cardiovascular segment grew 29% (excluding acquired products), Endoscopy segment grew 4%. U.S. sales increased 12% (7.6% organic), international sales up 8% (excluding China). 
- **Profitability**: Non-GAAP operating margin of 19.7% (51 basis points YoY improvement), net income of $54.9 million ($0.92 EPS). 
- **Free Cash Flow**: Generated $52.5 million in Q3, with $140 million year-to-date, targeting $175 million for 2025. 
- **Tariff Impact**: Q3 gross margin headwind of 90 basis points from tariffs, with $7.6 million annualized impact. 

**【Q&A Highlights】**
- **WRAPSODY CIE**: Early adoption in hospitals exceeds expectations, with 200+ trained physicians. TPT reimbursement application submitted, expecting Jan 2026 effective date. 
- **Gross Margin Durability**: 53.6% gross margin driven by mix, pricing, and cost control; long-term headroom exists through CGI initiatives. 
- **China Strategy**: Focus on core business growth, with VBP better than expected, but OEM softness due to macro environment. 
- **M&A Cadence**: Small, strategic tuck-ins (e.g., C2 CryoBalloon) to expand endoscopy portfolio, with $140 million+ free cash flow for 2025. 
- **2026 Outlook**: CGI goals remain focus, with no major shifts in capital allocation strategy.

Merit Medical Systems, Inc. (MMSI) Q3 2025 Earnings Call Transcript

Revenue

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Financing Services Revenue

Other Revenue

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Cost of Financing Services

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Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

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Loss on Bad Debts

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Preferred Stock Dividends

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MMSI

MMSI fundamentals

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