Merit Medical Systems delivered a positive third quarter, with results that exceeded Wall Street’s expectations and a strong market response. Management cited robust demand across the cardiovascular segment, meaningful progress in new product commercialization, and operational execution as the main drivers. President and CEO Martha Aronson highlighted the successful U.S. launch of the Prelude Wave hydrophilic sheath introducer and the ongoing market adoption of WRAPSODY CIE, emphasizing that “the better-than-expected constant currency revenue results were driven by 7.8% constant currency organic growth.”
Is now the time to buy MMSI? Find out in our full research report (it’s free for active Edge members).
Merit Medical Systems (MMSI) Q3 CY2025 Highlights:
- Revenue: $384.2 million vs analyst estimates of $372.1 million (13% year-on-year growth, 3.2% beat)
- Adjusted EPS: $0.92 vs analyst estimates of $0.83 (11.4% beat)
- Adjusted EBITDA: $92.24 million vs analyst estimates of $76.69 million (24% margin, 20.3% beat)
- The company slightly lifted its revenue guidance for the full year to $1.51 billion at the midpoint from $1.50 billion
- Management raised its full-year Adjusted EPS guidance to $3.73 at the midpoint, a 2.9% increase
- Operating Margin: 11.1%, in line with the same quarter last year
- Organic Revenue rose 7.8% year on year vs analyst estimates of 4.8% growth (299.3 basis point beat)
- Market Capitalization: $5.16 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 Q3 Earnings Call
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Jason Bednar (Piper Sandler) asked about WRAPSODY CIE's adoption and the path to expanded reimbursement. CEO Martha Aronson emphasized strong initial uptake and confidence in meeting cost criteria for new outpatient payment approval.
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Jason Bednar (Piper Sandler) questioned gross margin durability and potential for further expansion. CFO Raul Parra cited improvements in mix and pricing, with future margin gains expected primarily from continued gross margin focus.
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Lilia-Celine Lozada (JP Morgan) inquired about the outlook for 2026 and the role of M&A. Aronson stressed focus on current growth initiatives and indicated continued interest in both organic and inorganic opportunities.
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Jayson Bedford (Raymond James & Associates) asked if cardiac intervention growth was market-driven or a result of share gains. Parra explained that specialized sales teams and integration of new products fueled category outperformance.
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David Rescott (Baird) probed on China’s softer growth and WRAPSODY reimbursement milestones. Parra described OEM softness as macro-driven, while Aronson reiterated confidence in meeting requirements for expanded WRAPSODY coverage.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the progress of WRAPSODY CIE’s reimbursement expansion and its impact on portfolio adoption, (2) successful integration and commercialization of the C2 CryoBalloon and other recent acquisitions, and (3) the ability to sustain gross margin improvements despite ongoing tariff and cost headwinds. Developments in international markets and execution on product launches will also be key indicators.
Merit Medical Systems currently trades at $87.11, up from $83.03 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).
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