Merit Medical Systems Reports 9.8% Revenue Growth to $355.4 Million in Q1 2025

Merit Medical Systems, Inc. reported a notable increase in financial performance for the first quarter of 2025, with net sales reaching $355.4 million, a 9.8% rise from $323.5 million in the same period of 2024. The company's gross profit margin improved to 48.4%, up from 46.9% year-over-year. Net income also saw an increase, totaling $30.1 million, or $0.49 per diluted share, compared to $28.2 million, or $0.48 per diluted share, in the prior year. This growth was attributed to strong demand in the U.S. market and favorable international sales trends, particularly in the Rest of World (ROW) and Europe, Middle East, and Africa (EMEA) regions.

In terms of operational metrics, the cardiovascular segment generated $338.7 million in sales, an 8.1% increase from the previous year, driven by higher sales in peripheral intervention and cardiac intervention products. The endoscopy segment experienced a significant 64.2% increase in sales, reaching $16.6 million, largely due to the introduction of the EsophyX® Z+ device acquired from EndoGastric Solutions in July 2024. The company also reported a slight increase in total current assets, which rose to $958.6 million from $923.8 million at the end of 2024, reflecting a strategic focus on inventory management and customer service.

Merit Medical has made significant strategic moves, including the acquisition of Cook Medical's lead management business for $210 million, which contributed $9.2 million in sales during the quarter. Additionally, the company acquired assets from EndoGastric Solutions for $105 million, which added $6.6 million in sales. These acquisitions are part of Merit’s strategy to enhance its product offerings and market presence in both cardiovascular and endoscopy segments. The company has also reorganized its sales teams and product categories to better align with its operational goals.

The company’s financial health remains strong, with cash, cash equivalents, and restricted cash totaling $397.6 million as of March 31, 2025. Merit Medical also reported a net available borrowing capacity of approximately $697 million under its Fourth Amended and Restated Credit Agreement. The company generated $40.6 million in cash from operating activities during the quarter, up from $36.2 million in the prior year, indicating robust operational cash flow. However, the company noted challenges related to increased production costs due to evolving trade policies and tariffs, particularly between the U.S. and China.

Looking ahead, Merit Medical anticipates continued growth driven by strong demand for its products and strategic acquisitions. The company plans to invest approximately $90 to $100 million in capital expenditures for property and equipment in 2025, focusing on enhancing production capabilities and expanding its distribution facilities. Despite potential challenges from trade policies and market conditions, Merit Medical remains optimistic about its growth trajectory and operational performance in the coming quarters.