Merit Medical Systems (MMSI) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $418.8 million, up 10% year-over-year on a GAAP basis and 9% on a constant currency basis, exceeding guidance; YTD revenue was $800.7 million, up 8.5% year-over-year.

• Net income for Q2 2026 was $38.8 million ($0.65/share), up 19.1% year-over-year; non-GAAP net income was $71.3 million ($1.19/share), up 16.9%.

• Organic growth was 9%, the strongest in three years, driven by broad-based performance across product categories and geographies.

• Recent acquisitions (BioLife, C2 CryoBalloon, View Point Medical) contributed above expectations and integration is progressing well.

• Management raised full-year 2026 revenue and non-GAAP EPS guidance, citing strong first-half performance.

Financial highlights

• GAAP gross margin improved to 51.4% from 48.2% year-over-year; non-GAAP gross margin rose to 55.8% from 53.2%.

• GAAP operating margin was 14.4% in Q2 2026, up from 12.3%; non-GAAP operating margin reached 22.6% from 21.2%.

• U.S. sales grew 12%, international sales grew 7.3%; foundational products up 7%, therapeutic products up 15%.

• Net income was $38.8 million GAAP ($0.65/share), non-GAAP net income $71.3 million ($1.19/share); free cash flow for Q2 was nearly $52 million, $76.6 million year-to-date.

• Cash and cash equivalents at $448.7 million; total debt $747.5 million; available borrowing capacity $697 million.

Outlook and guidance

• FY 2026 revenue guidance raised to $1.631–$1.643 billion, reflecting 8% year-over-year growth; constant currency growth expected at 6.8–8.4%.

• Non-GAAP EPS guidance increased to $4.25–$4.35, up 11–14% year-over-year.

• Q3 2026 revenue expected at $408–$413 million (6–8% growth); non-GAAP EPS $0.98–$1.08.

• Management expects continued growth driven by demand in both domestic and international markets and ongoing integration of acquisitions.

• Capital expenditures for 2026 projected at $80–$100 million, focused on property and equipment investments.