Merit Medical Systems Reports Strong Q4 2025 Earnings with Record Free Cash Flow
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 25 2026
0mins
Should l Buy MMSI?
Source: seekingalpha
- Significant Revenue Growth: Merit Medical Systems reported total revenue of $393.9 million in Q4 2025, reflecting an 11% year-over-year increase, with U.S. sales up 12% and international sales up 6%, demonstrating strong performance across major markets and reinforcing its competitive position.
- Record Free Cash Flow: The company achieved a record free cash flow of $74 million in Q4, contributing to nearly $216 million for the full year 2025, indicating ongoing improvements in cash management and profitability that will support future investments and shareholder returns.
- Margin Expansion: The non-GAAP operating margin increased to 21% in Q4, up 138 basis points year-over-year, with a gross margin of 54.5%, marking the highest quarterly gross margin in the company's history, reflecting successful cost control and product mix optimization.
- Cautious 2026 Outlook: The company projects total GAAP net revenue growth of 6% to 8% for 2026, factoring in a 140 basis point headwind to revenue growth from the divestiture of the DualCap product line, as management remains vigilant about external challenges while maintaining confidence in growth prospects.
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Analyst Views on MMSI
Wall Street analysts forecast MMSI stock price to rise
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 68.130
Low
90.00
Averages
104.63
High
122.00
Current: 68.130
Low
90.00
Averages
104.63
High
122.00
About MMSI
Merit Medical Systems, Inc. is engaged in the development, manufacture, and distribution of medical devices used in interventional, diagnostic, and therapeutic procedures in cardiology, radiology, oncology, critical care, and endoscopy. Its cardiovascular segment consists of four product categories: peripheral intervention, cardiac intervention, custom procedural solutions, and original equipment manufacturer. Its endoscopy segment consists of gastroenterology and pulmonology devices which assist in the palliative treatment of expanding esophageal, tracheobronchial and biliary strictures caused by malignant tumors. Its product portfolio of medical devices and accessories is used in lead management procedures for patients who need a pacemaker, or an implantable cardioverter-defibrillator lead removed or replaced. Its products are used in clinical areas, such as radiology, electrophysiology and more. It also manufactures hemostatic devices under the brand names StatSeal and WoundSeal.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Medtronic Enters Exclusive Agreement with Merit for BVNA System
- Exclusive Distribution Agreement: Medtronic has signed an exclusive agreement with Merit Medical Systems to launch the FDA-approved ViaVerte system, which is the first BVNA system with a physician-controlled steerable mechanism aimed at treating chronic vertebrogenic lower back pain, significantly enhancing treatment options for patients.
- Product Innovation: The unique design of the ViaVerte system allows physicians to precisely target the basivertebral nerve, thereby improving treatment outcomes and further solidifying Medtronic's leadership in the pain intervention space while providing more effective solutions for chronic pain patients.
- Strengthened Strategic Partnership: This agreement not only expands Medtronic's pain intervention product portfolio but also deepens the ongoing collaboration with Merit, which currently supplies Medtronic with Kyphon Xpander Inflation Syringes and Kyphon KyphoFlex unipedicular steerable balloon catheters used in balloon kyphoplasty procedures.
- Market Impact: By introducing the ViaVerte system, Medtronic enhances its competitiveness in the chronic pain treatment market, which is expected to attract more patients to its innovative treatment options, thereby driving continued growth in the medical technology sector.
See More
Medtronic Enters Exclusive Agreement with Merit Medical
- Innovative Treatment Solution: Medtronic has entered into an exclusive distribution agreement with Merit Medical to offer the FDA-cleared ViaVerte™ basivertebral nerve ablation system, which is the first BVNA system with a physician-controlled steerable mechanism, significantly enhancing treatment options for chronic lower back pain patients.
- Market Demand Response: According to the American Chronic Pain Association, approximately one in three Americans suffer from chronic pain, and the introduction of the ViaVerte™ system will provide these patients with a minimally invasive, same-day outpatient treatment option, addressing the growing market demand.
- Deepening Strategic Partnership: This agreement not only continues the collaboration between Medtronic and Merit but also enhances Medtronic's leadership in the pain intervention field by incorporating Merit's proprietary technology, thereby diversifying its product portfolio.
- Long-term Vision: Paolo Di Vincenzo, president of Medtronic's Neuromodulation division, stated that the addition of this new product will further expand their world-leading position in pain interventions, aiming to provide more effective treatment options for patients and physicians.
See More
Medtronic Enters Exclusive Agreement with Merit Medical
- Innovative Treatment Solution: Medtronic has entered into a distribution agreement with Merit Medical to offer the FDA-cleared ViaVerte™ basivertebral nerve ablation system, which is the first BVNA system with a physician-controlled steerable mechanism, significantly enhancing treatment options for chronic lower back pain patients.
- Market Demand Response: According to the American Chronic Pain Association, approximately one in three Americans suffer from chronic pain, and the introduction of the ViaVerte™ system will provide these patients with a minimally invasive, same-day outpatient treatment option, addressing the growing market demand.
- Deepening Strategic Partnership: This agreement not only continues the collaboration between Medtronic and Merit but also integrates Merit's proprietary technology into Medtronic's pain intervention product portfolio, further solidifying its leadership position in the healthcare technology sector.
- Business Expansion Potential: Medtronic's pain therapy portfolio includes spinal cord stimulation and vertebral augmentation, and the addition of ViaVerte™ will directly meet the demand for new therapies, driving the company's continued growth in the chronic pain treatment market.
See More
Medtronic and Merit Medical Systems Partner to Launch FDA-Cleared ViaVerte™ System for Chronic Lower Back Pain Treatment
Agreement Announcement: Medtronic has entered into an agreement to offer a new treatment for chronic vertebrogenic lower back pain.
FDA Clearance: The treatment involves the use of the FDA-cleared VERTEX™ system, which is designed for ablation of nerve tissue.
See More
U.S. Healthcare Stocks Plunge Amid Geopolitical Tensions
- Oversold Healthcare Stocks: The ongoing geopolitical tensions have led to significant selling pressure in healthcare stocks, with Merit Medical Systems (MMSI) and Option Care Health (OPCH) showing RSIs of 29.03 and 28.79 respectively, indicating strong sell sentiment in the market.
- Potential for Short-term Rebound: While the current oversold conditions typically signal heavy selling, these healthcare stocks could be well-positioned for a quick bounce-back if geopolitical news improves, particularly for companies like Crinetics Pharmaceuticals (CRNX) and Prestige Consumer Healthcare (PBH).
- Increased Market Volatility: As the conflict enters its 16th day, overall market volatility has intensified, pushing several key sectors into technically oversold territory, with 15-day performance showing widespread declines, including Bio-Techne Corporation (TECH) down 13.81% and iRhythm Holdings (IRTC) down 15.51%.
- Investor Focus: Amid the turmoil in the Middle East, investor attention on healthcare stocks has risen, especially for companies like Eli Lilly and Novo Nordisk, with the market eagerly anticipating their future performance amidst the current challenges.
See More
Merit Medical Systems Reports Strong Q4 2025 Earnings with Record Free Cash Flow
- Significant Revenue Growth: Merit Medical Systems reported total revenue of $393.9 million in Q4 2025, reflecting an 11% year-over-year increase, with U.S. sales up 12% and international sales up 6%, demonstrating strong performance across major markets and reinforcing its competitive position.
- Record Free Cash Flow: The company achieved a record free cash flow of $74 million in Q4, contributing to nearly $216 million for the full year 2025, indicating ongoing improvements in cash management and profitability that will support future investments and shareholder returns.
- Margin Expansion: The non-GAAP operating margin increased to 21% in Q4, up 138 basis points year-over-year, with a gross margin of 54.5%, marking the highest quarterly gross margin in the company's history, reflecting successful cost control and product mix optimization.
- Cautious 2026 Outlook: The company projects total GAAP net revenue growth of 6% to 8% for 2026, factoring in a 140 basis point headwind to revenue growth from the divestiture of the DualCap product line, as management remains vigilant about external challenges while maintaining confidence in growth prospects.
See More
Medtronic Enters Exclusive Agreement with Merit for BVNA System
- Exclusive Distribution Agreement: Medtronic has signed an exclusive agreement with Merit Medical Systems to launch the FDA-approved ViaVerte system, which is the first BVNA system with a physician-controlled steerable mechanism aimed at treating chronic vertebrogenic lower back pain, significantly enhancing treatment options for patients.
- Product Innovation: The unique design of the ViaVerte system allows physicians to precisely target the basivertebral nerve, thereby improving treatment outcomes and further solidifying Medtronic's leadership in the pain intervention space while providing more effective solutions for chronic pain patients.
- Strengthened Strategic Partnership: This agreement not only expands Medtronic's pain intervention product portfolio but also deepens the ongoing collaboration with Merit, which currently supplies Medtronic with Kyphon Xpander Inflation Syringes and Kyphon KyphoFlex unipedicular steerable balloon catheters used in balloon kyphoplasty procedures.
- Market Impact: By introducing the ViaVerte system, Medtronic enhances its competitiveness in the chronic pain treatment market, which is expected to attract more patients to its innovative treatment options, thereby driving continued growth in the medical technology sector.
See More
Medtronic Enters Exclusive Agreement with Merit Medical
- Innovative Treatment Solution: Medtronic has entered into an exclusive distribution agreement with Merit Medical to offer the FDA-cleared ViaVerte™ basivertebral nerve ablation system, which is the first BVNA system with a physician-controlled steerable mechanism, significantly enhancing treatment options for chronic lower back pain patients.
- Market Demand Response: According to the American Chronic Pain Association, approximately one in three Americans suffer from chronic pain, and the introduction of the ViaVerte™ system will provide these patients with a minimally invasive, same-day outpatient treatment option, addressing the growing market demand.
- Deepening Strategic Partnership: This agreement not only continues the collaboration between Medtronic and Merit but also enhances Medtronic's leadership in the pain intervention field by incorporating Merit's proprietary technology, thereby diversifying its product portfolio.
- Long-term Vision: Paolo Di Vincenzo, president of Medtronic's Neuromodulation division, stated that the addition of this new product will further expand their world-leading position in pain interventions, aiming to provide more effective treatment options for patients and physicians.
See More
Medtronic Enters Exclusive Agreement with Merit Medical
- Innovative Treatment Solution: Medtronic has entered into a distribution agreement with Merit Medical to offer the FDA-cleared ViaVerte™ basivertebral nerve ablation system, which is the first BVNA system with a physician-controlled steerable mechanism, significantly enhancing treatment options for chronic lower back pain patients.
- Market Demand Response: According to the American Chronic Pain Association, approximately one in three Americans suffer from chronic pain, and the introduction of the ViaVerte™ system will provide these patients with a minimally invasive, same-day outpatient treatment option, addressing the growing market demand.
- Deepening Strategic Partnership: This agreement not only continues the collaboration between Medtronic and Merit but also integrates Merit's proprietary technology into Medtronic's pain intervention product portfolio, further solidifying its leadership position in the healthcare technology sector.
- Business Expansion Potential: Medtronic's pain therapy portfolio includes spinal cord stimulation and vertebral augmentation, and the addition of ViaVerte™ will directly meet the demand for new therapies, driving the company's continued growth in the chronic pain treatment market.
See More
Medtronic and Merit Medical Systems Partner to Launch FDA-Cleared ViaVerte™ System for Chronic Lower Back Pain Treatment
Agreement Announcement: Medtronic has entered into an agreement to offer a new treatment for chronic vertebrogenic lower back pain.
FDA Clearance: The treatment involves the use of the FDA-cleared VERTEX™ system, which is designed for ablation of nerve tissue.
See More
U.S. Healthcare Stocks Plunge Amid Geopolitical Tensions
- Oversold Healthcare Stocks: The ongoing geopolitical tensions have led to significant selling pressure in healthcare stocks, with Merit Medical Systems (MMSI) and Option Care Health (OPCH) showing RSIs of 29.03 and 28.79 respectively, indicating strong sell sentiment in the market.
- Potential for Short-term Rebound: While the current oversold conditions typically signal heavy selling, these healthcare stocks could be well-positioned for a quick bounce-back if geopolitical news improves, particularly for companies like Crinetics Pharmaceuticals (CRNX) and Prestige Consumer Healthcare (PBH).
- Increased Market Volatility: As the conflict enters its 16th day, overall market volatility has intensified, pushing several key sectors into technically oversold territory, with 15-day performance showing widespread declines, including Bio-Techne Corporation (TECH) down 13.81% and iRhythm Holdings (IRTC) down 15.51%.
- Investor Focus: Amid the turmoil in the Middle East, investor attention on healthcare stocks has risen, especially for companies like Eli Lilly and Novo Nordisk, with the market eagerly anticipating their future performance amidst the current challenges.
See More
Merit Medical Systems Reports Strong Q4 2025 Earnings with Record Free Cash Flow
- Significant Revenue Growth: Merit Medical Systems reported total revenue of $393.9 million in Q4 2025, reflecting an 11% year-over-year increase, with U.S. sales up 12% and international sales up 6%, demonstrating strong performance across major markets and reinforcing its competitive position.
- Record Free Cash Flow: The company achieved a record free cash flow of $74 million in Q4, contributing to nearly $216 million for the full year 2025, indicating ongoing improvements in cash management and profitability that will support future investments and shareholder returns.
- Margin Expansion: The non-GAAP operating margin increased to 21% in Q4, up 138 basis points year-over-year, with a gross margin of 54.5%, marking the highest quarterly gross margin in the company's history, reflecting successful cost control and product mix optimization.
- Cautious 2026 Outlook: The company projects total GAAP net revenue growth of 6% to 8% for 2026, factoring in a 140 basis point headwind to revenue growth from the divestiture of the DualCap product line, as management remains vigilant about external challenges while maintaining confidence in growth prospects.
See More
