Merit Medical Systems’ first quarter results surpassed Wall Street’s expectations, fueled by contributions from recently acquired products and ongoing strength in both foundational and therapeutic product lines. Management highlighted the successful U.S. launch of the Resilience esophageal stent and early momentum from the C2 Cryo Balloon device, while also noting headwinds from the divestiture of the DualCap product line and softness in the OEM business, especially in Asia-Pacific. CEO Martha Aronson emphasized that effective cost controls and operational discipline offset tariff-related margin pressures, allowing the company to maintain stable operating margins despite external challenges.
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Merit Medical Systems (MMSI) Q1 CY2026 Highlights:
- Revenue: $381.9 million vs analyst estimates of $377.5 million (7.5% year-on-year growth, 1.2% beat)
- Adjusted EPS: $0.94 vs analyst estimates of $0.83 (12.8% beat)
- Adjusted EBITDA: $89.42 million vs analyst estimates of $81.41 million (23.4% margin, 9.8% beat)
- The company slightly lifted its revenue guidance for the full year to $1.62 billion at the midpoint from $1.62 billion
- Management reiterated its full-year Adjusted EPS guidance of $4.08 at the midpoint
- Operating Margin: 11.6%, in line with the same quarter last year
- Organic Revenue rose 2.7% year on year (miss)
- Market Capitalization: $3.68 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Merit Medical Systems’s Q1 Earnings Call
- Michael John Petusky (Barrington Research): Asked about updates on Rhapsody’s go-to-market progress and tariff reimbursement processes. CEO Martha Aronson stated Rhapsody is on track with guidance and confirmed reimbursement filings have begun, but final outcomes depend on pending legal challenges.
- Jason M. Bednar (Piper Sandler): Inquired about the growth trajectory for Viewpoint Medical’s OneMark and potential synergies with SCOUT. Aronson emphasized market expansion potential and strong physician interest, while CFO Raul Parra highlighted the 20% growth outlook and margin profile.
- Sam Elber (BTIG): Sought clarification on Cardiac business supply chain issues and Middle East geopolitical impacts. Parra explained the supply chain issue resulted in a product recall, but financial effects are immaterial, and Middle East disruptions caused manageable revenue delays.
- David Kenneth Rescott (R.W. Baird): Asked about APAC performance assumptions and operating margin controls. Parra cited stable APAC growth and strict expense management as key to margin outperformance, with continued discipline expected throughout the year.
- Aidan Lahey (Bank of America): Questioned whether the OneMark acquisition would cannibalize SCOUT sales. Aronson described the move as market-expanding, with both products targeting different physician preferences and patient risk profiles.
Catalysts in Upcoming Quarters
Looking forward, the StockStory team will be watching (1) the rate of adoption and revenue contribution from the expanded oncology portfolio, especially OneMark’s integration, (2) ongoing performance of the OEM business as inventory normalization and APAC demand trends unfold, and (3) the company’s ability to offset tariff headwinds and maintain margin discipline. Future updates on reimbursement for tariffs and progress with new product launches in endoscopy will also be important signposts.
Merit Medical Systems currently trades at $61.68, down from $68.18 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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