Merit Medical Systems, Inc.

Second-quarter total revenue was $418.8 million, up 10% year over year on a GAAP basis and up 9% year over year constant currency. Organic constant-currency growth was 9%, and management said it exceeded the high end of expectations by about 210 basis points. Non-GAAP gross margin was 55.8%, up 262 basis points year over year; excluding $6.9 million of tariff refunds, gross margin was 54.2%, up 98 basis points year over year. Non-GAAP operating margin was 22.6%, up 142 basis points year over year; excluding tariff refunds, operating margin was 20.9% versus 21.2% last year. Non-GAAP EPS increased 18% year over year; reported EPS was $1.19 versus $1.01 last year, and excluding the tariff refund benefit EPS was $1.10. Net income was $71.3 million versus $61 million a year ago. For 2026, Merit now expects total GAAP net revenue growth of 7.6% to 8.4% and constant-currency growth of 6.9% to 7.6%, with organic constant-currency growth of 6.9% to 7.5%. Full-year non-GAAP diluted EPS is now expected to be $4.25 to $4.35, up from $4.01 to $4.15 previously. For Q3, management expects revenue of $408 million to $413 million, non-GAAP operating margin of about 19.6% to 21.5%, and non-GAAP EPS of $0.98 to $1.08.

Martha Aronson framed the quarter as evidence that Merit is executing well across the business and staying on track for its 3-year CGI targets. She emphasized that Q2 organic growth was the strongest in three years and that the company is seeing solid responses to recent oncology launches, including SCOUT MD and View Point Medical’s OneMark. Her tone was upbeat but measured, repeatedly tying the outperformance to broad execution, integration progress, and continued strategic planning for the next multi-year cycle.

Raul Parra focused on broad-based revenue strength, margin expansion, and disciplined capital allocation. He highlighted 55.8% gross margin, 22.6% operating margin, and nearly $52 million of free cash flow in Q2, while noting that tariff refunds helped results and that, excluding those refunds, margins still beat expectations. On the balance sheet, he cited $448.7 million of cash and cash equivalents, $747.5 million of total debt obligations, $697 million of borrowing capacity, and a 1.6x adjusted net leverage ratio; he also said year-to-date cash was essentially flat due to $76.6 million of free cash flow, $25.5 million from the DualCap divestiture, and $90 million used for View Point Medical. He also explained that Q3 guidance is wider because of tariff uncertainty, and said most expected tariff refunds have already been received, with about $1.5 million still pending from a freight forwarder.

Analysts focused on whether procedure volumes were slowing due to ACA subsidy changes, the sustainability of 9% organic growth, the reasons for a wider Q3 EPS/margin range, OEM trends, and the outlook for WRAPSODY, China, and the endoscopy platform. Management said field checks had not shown any slowdown in procedures, and described Q2 growth as broad-based rather than purely a catch-up quarter. On OEM, they said the business is inherently lumpy but should still run in the mid- to high-single-digit range annually, with some improvement in China and customer wins helping the second-half outlook. On Q3 and margins, management repeatedly pointed to seasonality and tariff volatility as the main reasons for conservative near-term guidance, while on WRAPSODY they reaffirmed the $7 million revenue target and said clinician feedback remains strong.