Utah Medical Products (UTMD) investor relations material

Executive summary

• Net sales for Q1 2026 were $8.7M, down 10.2% year-over-year, mainly due to the loss of major customers in China and OEM, partially offset by higher domestic Filshie device sales.

• Net income declined 14.4% to $2.6M, with EPS down 11% to $0.82, reflecting lower sales and higher operating expenses, but partially offset by a lower tax rate and fewer outstanding shares.

• Gross profit margin improved to 60.6% from 57.0% due to a favorable product mix and the absence of low-margin China distributor sales.

• Operating income margin decreased to 29.4% from 32.5% as operating expenses rose, particularly in G&A and litigation.

• Cash and investments increased to $87.4M, with no debt and strong liquidity.

Financial highlights

• Revenue: $8.7M (down 10.2% year-over-year).

• Net income: $2.6M (down 14.4% year-over-year).

• EPS (diluted): $0.82 (down 11% year-over-year).

• Gross profit: $5.3M (down 4.6% year-over-year); gross margin improved to 60.6%.

• Operating income: $2.6M (down 18.7% year-over-year).

• Adjusted EBITDA: $4.0M (down from $4.7M year-over-year).

• Cash from operations: $3.1M (down from $4.5M year-over-year).

Outlook and guidance

• Management expects 2026 results to align with projections, focusing on new product introductions, regaining OUS business, and resolving litigation.

• Litigation and healthcare costs expected to normalize for the remainder of 2026, with lower litigation expenses than 2025.

• Objectives include leveraging cash for dividends, share repurchases, and potential acquisitions.