Revenue growth remains stable, yet operating margins struggle to scale beyond the 14% ceiling observed in 2025Q1 due to persistent SG&A absorption.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 1.54B | 1.51B | 1.36B | 1.26B | 1.15B | 1.07B | 963.88M | 994.85M | 882.75M | 727.85M | 603.84M | 542.15M | 509.69M | 449.05M | 394.29M | 359.45M | 296.75M | 257.46M | 227.14M | 207.77M | 190.67M | 166.59M | 151.4M | 135.95M | 116.23M | 104.04M | 91.45M | 78M | 68.4M | 60.6M | 50.5M |
| Revenue Growth % | 11.17% | 11.66% | 7.89% | 9.24% | 7.09% | 11.5% | -3.11% | 12.7% | 21.28% | 20.54% | 11.38% | 6.37% | 13.5% | 13.89% | 9.69% | 21.13% | 15.26% | 13.35% | 9.33% | 8.96% | 14.46% | 10.03% | 11.36% | 16.97% | 11.72% | 13.77% | 17.24% | 14.04% | 12.87% | 20% | 18.54% |
| Cost of Goods Sold | 791.29M | 777.79M | 713.18M | 673.49M | 631.88M | 589.42M | 562.7M | 562.49M | 487.98M | 401.6M | 338.81M | 306.37M | 284.47M | 254.68M | 212.3M | 193.98M | 168.26M | 148.66M | 133.87M | 127.98M | 117.6M | 97.49M | 83.91M | 75.23M | 67.71M | 65.94M | 56.5M | 44.3M | 39.6M | 35.1M | 26.9M |
| COGS % of Revenue | - | 51.35% | 52.57% | 53.56% | 54.9% | 54.84% | 58.38% | 56.54% | 55.28% | 55.18% | 56.11% | 56.51% | 55.81% | 56.72% | 53.84% | 53.97% | 56.7% | 57.74% | 58.94% | 61.6% | 61.67% | 58.52% | 55.42% | 55.33% | 58.26% | 63.38% | 61.79% | 56.79% | 57.89% | 57.92% | 53.27% |
| Gross Profit | 750.98M | 736.94M | 643.33M | 583.87M | 519.1M | 485.33M | 401.18M | 432.37M | 394.77M | 326.25M | 265.02M | 235.78M | 225.22M | 194.37M | 181.99M | 165.47M | 128.5M | 108.8M | 93.27M | 79.79M | 73.08M | 69.09M | 67.49M | 60.72M | 48.52M | 38.1M | 34.94M | 33.7M | 28.8M | 25.5M | 23.6M |
| Gross Margin % | 48.69% | 48.65% | 47.43% | 46.44% | 45.1% | 45.16% | 41.62% | 43.46% | 44.72% | 44.82% | 43.89% | 43.49% | 44.19% | 43.28% | 46.16% | 46.03% | 43.3% | 42.26% | 41.06% | 38.4% | 38.33% | 41.48% | 44.58% | 44.67% | 41.74% | 36.62% | 38.21% | 43.21% | 42.11% | 42.08% | 46.73% |
| Gross Profit Growth % | - | 14.55% | 10.18% | 12.48% | 6.96% | 20.98% | -7.21% | 9.52% | 21% | 23.1% | 12.4% | 4.69% | 15.87% | 6.8% | 9.99% | 28.77% | 18.1% | 16.65% | 16.89% | 9.19% | 5.77% | 2.37% | 11.14% | 25.16% | 27.34% | 9.03% | 3.69% | 17.01% | 12.94% | 8.05% | 22.28% |
| Operating Expenses | 563.42M | 552.57M | 487.64M | 458.73M | 431.54M | 424.42M | 402.74M | 416.93M | 335.55M | 280.54M | 229.63M | 197.16M | 184.53M | 162.53M | 149.9M | 126.44M | 102.95M | 75.95M | 62.29M | 56.82M | 54.07M | 45.57M | 40.15M | 35.09M | 31.74M | 28.16M | 31.48M | 27.6M | 23.5M | 22.8M | 19.2M |
| OpEx % of Revenue | - | 36.48% | 35.95% | 36.48% | 37.49% | 39.49% | 41.78% | 41.91% | 38.01% | 38.54% | 38.03% | 36.37% | 36.2% | 36.19% | 38.02% | 35.18% | 34.69% | 29.5% | 27.42% | 27.35% | 28.36% | 27.36% | 26.52% | 25.81% | 27.31% | 27.07% | 34.43% | 35.38% | 34.36% | 37.62% | 38.02% |
| Selling, General & Admin | 465.94M | 455.21M | 376.73M | 373.68M | 342.52M | 335.69M | 297.72M | 327.27M | 276.02M | 229.13M | 184.4M | 156.35M | 147.89M | 128.64M | 122.11M | 104.5M | 87.61M | 64.79M | 53.13M | 48.13M | 45.49M | 38.58M | 35.07M | 30.47M | 27.73M | 24.04M | 23.3M | 20.4M | 17.5M | 15.7M | 14.3M |
| SG&A % of Revenue | - | 30.05% | 27.77% | 29.72% | 29.76% | 31.23% | 30.89% | 32.9% | 31.27% | 31.48% | 30.54% | 28.84% | 29.02% | 28.65% | 30.97% | 29.07% | 29.52% | 25.16% | 23.39% | 23.17% | 23.86% | 23.16% | 23.16% | 22.41% | 23.86% | 23.11% | 25.48% | 26.15% | 25.58% | 25.91% | 28.32% |
| Research & Development | 97.48M | 97.35M | 83.81M | 82.73M | 75.51M | 71.25M | 57.54M | 65.61M | 59.53M | 51.4M | 45.23M | 40.81M | 36.63M | 33.89M | 27.8M | 21.94M | 15.34M | 11.17M | 9.16M | 8.69M | 8.58M | 6.99M | 5.08M | 4.63M | 4.01M | 4.12M | 3.86M | 3.6M | 3.2M | 4.4M | 2.5M |
| R&D % of Revenue | - | 6.43% | 6.18% | 6.58% | 6.56% | 6.63% | 5.97% | 6.6% | 6.74% | 7.06% | 7.49% | 7.53% | 7.19% | 7.55% | 7.05% | 6.1% | 5.17% | 4.34% | 4.03% | 4.18% | 4.5% | 4.2% | 3.35% | 3.4% | 3.45% | 3.96% | 4.23% | 4.62% | 4.68% | 7.26% | 4.95% |
| Other Operating Expenses | 0 | 0 | 27.09M | 3.52M | 13.5M | 17.48M | 47.48M | 24.04M | 63K | -872K | -773K | -386K | 18K | -216K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.32M | 3.6M | 2.8M | 2.7M | 2.4M |
| Operating Income | 187.74M | 184.38M | 155.69M | 123.94M | 87.56M | 60.92M | -1.56M | 15.43M | 58.62M | 33.07M | 34.88M | 37.54M | 40.17M | 27.84M | 29.64M | 33.19M | 17.2M | 32.85M | 30.98M | 22.97M | 19.01M | 23.52M | 27.34M | 25.63M | 16.78M | 9.94M | 3.46M | 6.1M | 5.3M | 2.7M | 4.4M |
| Operating Margin % | 12.17% | 12.17% | 11.48% | 9.86% | 7.61% | 5.67% | -0.16% | 1.55% | 6.64% | 4.54% | 5.78% | 6.92% | 7.88% | 6.2% | 7.52% | 9.23% | 5.8% | 12.76% | 13.64% | 11.06% | 9.97% | 14.12% | 18.06% | 18.85% | 14.43% | 9.55% | 3.78% | 7.82% | 7.75% | 4.46% | 8.71% |
| Operating Income Growth % | - | 18.42% | 25.62% | 41.55% | 43.74% | 3999.87% | -110.12% | -73.67% | 77.26% | -5.18% | -7.1% | -6.53% | 44.25% | -6.06% | -10.69% | 92.92% | -47.62% | 6.01% | 34.89% | 20.83% | -19.18% | -13.97% | 6.67% | 52.78% | 68.77% | 187.31% | -43.29% | 15.09% | 96.3% | -38.64% | 76% |
| EBITDA | 290.11M | 319.03M | 270.43M | 225.24M | 179.76M | 156.7M | 105.25M | 119.79M | 128.16M | 86.65M | 78.63M | 74.97M | 76.09M | 60.39M | 52.17M | 52.38M | 32.06M | 45.12M | 41.22M | 32.28M | 27.11M | 29.16M | 31.83M | 29.86M | 21.16M | 14.5M | 7.78M | 9.7M | 8.1M | 5.4M | 6.8M |
| EBITDA Margin % | 18.81% | 21.06% | 19.94% | 17.91% | 15.62% | 14.58% | 10.92% | 12.04% | 14.52% | 11.91% | 13.02% | 13.83% | 14.93% | 13.45% | 13.23% | 14.57% | 10.8% | 17.52% | 18.15% | 15.54% | 14.22% | 17.51% | 21.03% | 21.96% | 18.2% | 13.94% | 8.51% | 12.44% | 11.84% | 8.91% | 13.47% |
| EBITDA Growth % | -0.24% | 17.97% | 20.06% | 25.3% | 14.72% | 48.88% | -12.13% | -6.53% | 47.91% | 10.2% | 4.89% | -1.48% | 26.01% | 15.74% | -0.4% | 63.39% | -28.94% | 9.45% | 27.71% | 19.07% | -7.04% | -8.38% | 6.61% | 41.13% | 45.87% | 86.45% | -19.8% | 19.75% | 50% | -20.59% | 61.9% |
| D&A (Non-Cash Add-back) | 102.37M | 134.65M | 114.73M | 101.29M | 92.2M | 95.78M | 106.82M | 104.36M | 69.55M | 53.58M | 43.76M | 37.42M | 35.93M | 32.54M | 22.53M | 19.19M | 14.86M | 12.27M | 10.24M | 9.31M | 8.1M | 5.64M | 4.49M | 4.23M | 4.38M | 4.56M | 4.32M | 3.6M | 2.8M | 2.7M | 2.4M |
| EBIT | 143.58M | 184.38M | 159.24M | 127.6M | 88.97M | 59.18M | -3.24M | 14.9M | 59.88M | 43.62M | 34.18M | 37.43M | 40.4M | 27.88M | 28.22M | 33.66M | 17.38M | 33.12M | 31.86M | 22.97M | 19.01M | 23.52M | 27.34M | 26.14M | 16.77M | 9.94M | 3.46M | 6.1M | 5.3M | 2.7M | 4.4M |
| Net Interest Income | -8.61M | -11.39M | -4.99M | -13.05M | -5.9M | -4.49M | -9.39M | -12.7M | -9.16M | -7.36M | -8.72M | -5.96M | -8.61M | -7.79M | -378K | -660K | -562K | 150K | 764K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 15.18M | 15.07M | 26.23M | 2.46M | 439K | 769K | 604K | 0 | 1.2M | 381K | 81K | 272K | 217K | 255K | 226K | 129K | 34K | 178K | 781K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 13.37M | 26.46M | 31.22M | 15.51M | 6.34M | 5.26M | 9.99M | 12.7M | 10.36M | 7.74M | 8.8M | 6.23M | 8.83M | 8.04M | 604K | 789K | 596K | 28K | 17K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -1.22M | -13.44M | -5.7M | -11.86M | -4.93M | -7M | -11.67M | -13.24M | -9.1M | 2.81M | -9.49M | -6.34M | -8.59M | -8.01M | -2.02M | -315K | -416K | 247K | 861K | 429K | 174K | 379K | 666K | 885K | -13K | -151.23K | -2.69M | -1.4M | -1.1M | -1M | -900K |
| Pretax Income | 186.53M | 170.94M | 149.99M | 112.09M | 82.63M | 53.92M | -13.23M | 2.19M | 49.52M | 35.88M | 25.39M | 31.2M | 31.57M | 19.84M | 27.62M | 32.88M | 16.79M | 33.09M | 31.84M | 23.4M | 19.18M | 23.9M | 28.01M | 27.02M | 16.76M | 9.79M | 773.85K | 4.7M | 4.2M | 1.7M | 3.5M |
| Pretax Margin % | 12.09% | 11.29% | 11.06% | 8.91% | 7.18% | 5.02% | -1.37% | 0.22% | 5.61% | 4.93% | 4.2% | 5.75% | 6.19% | 4.42% | 7% | 9.15% | 5.66% | 12.85% | 14.02% | 11.26% | 10.06% | 14.35% | 18.5% | 19.88% | 14.42% | 9.41% | 0.85% | 6.03% | 6.14% | 2.81% | 6.93% |
| Income Tax | 47.19M | 42.45M | 29.64M | 17.68M | 8.11M | 5.46M | -3.39M | -3.26M | 7.5M | 8.36M | 5.26M | 7.4M | 8.6M | 3.27M | 7.91M | 9.83M | 4.33M | 10.56M | 11.12M | 7.81M | 6.88M | 8.12M | 10.07M | 9.73M | 5.45M | 3.05M | -52.71K | 1.5M | 1.7M | 900K | 1.3M |
| Effective Tax Rate % | 25.3% | 24.83% | 19.76% | 15.77% | 9.82% | 10.13% | 25.61% | -148.56% | 15.15% | 23.29% | 20.74% | 23.71% | 27.23% | 16.48% | 28.63% | 29.9% | 25.78% | 31.92% | 34.91% | 33.38% | 35.88% | 33.98% | 35.97% | 36% | 32.53% | 31.18% | -6.81% | 31.91% | 40.48% | 52.94% | 37.14% |
| Net Income | 139.34M | 128.49M | 120.36M | 94.41M | 74.52M | 48.45M | -9.84M | 5.45M | 42.02M | 27.52M | 20.12M | 23.8M | 22.97M | 16.57M | 19.71M | 23.04M | 12.46M | 22.53M | 20.73M | 15.59M | 12.3M | 15.78M | 17.93M | 17.3M | 11.31M | 6.74M | 826.56K | 3.2M | 2.5M | 800K | 2.2M |
| Net Margin % | 9.03% | 8.48% | 8.87% | 7.51% | 6.47% | 4.51% | -1.02% | 0.55% | 4.76% | 3.78% | 3.33% | 4.39% | 4.51% | 3.69% | 5% | 6.41% | 4.2% | 8.75% | 9.13% | 7.5% | 6.45% | 9.47% | 11.84% | 12.72% | 9.73% | 6.47% | 0.9% | 4.1% | 3.65% | 1.32% | 4.36% |
| Net Income Growth % | 13.96% | 6.76% | 27.48% | 26.7% | 53.79% | 592.27% | -280.57% | -87.03% | 52.66% | 36.79% | -15.47% | 3.6% | 38.65% | -15.93% | -14.47% | 84.94% | -44.7% | 8.7% | 32.97% | 26.72% | -22.04% | -12.01% | 3.68% | 52.92% | 67.9% | 714.94% | -74.17% | 28% | 212.5% | -63.64% | 83.33% |
| Net Income (Continuing) | 139.34M | 128.49M | 120.36M | 94.41M | 74.52M | 48.45M | -9.84M | 5.45M | 42.02M | 27.52M | 20.12M | 23.8M | 22.97M | 16.57M | 19.71M | 23.04M | 12.46M | 22.53M | 20.73M | 15.59M | 12.3M | 15.78M | 17.93M | 17.3M | 11.31M | 6.74M | 826.56K | 3.2M | 2.5M | 800K | 2.2M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 500K | 400K | 400K |
| EPS (Diluted) | 2.32 | 2.13 | 2.03 | 1.62 | 1.29 | 0.84 | -0.18 | 0.10 | 0.78 | 0.55 | 0.45 | 0.53 | 0.53 | 0.39 | 0.46 | 0.58 | 0.34 | 0.63 | 0.58 | 0.44 | 0.35 | 0.46 | 0.52 | 0.51 | 0.34 | 0.23 | 0.03 | 0.12 | 0.10 | 0.03 | 0.09 |
| EPS Growth % | 13.24% | 4.93% | 25.31% | 25.58% | 53.57% | 566.67% | -285.76% | -87.58% | 41.82% | 22.22% | -15.09% | 0% | 35.9% | -15.22% | -20.69% | 70.59% | -46.03% | 8.62% | 31.82% | 25.71% | -23.91% | -11.54% | 1.96% | 50% | 47.83% | 698.61% | -76% | 26.32% | 199.68% | -64.5% | 72.39% |
| EPS (Basic) | - | 2.17 | 2.07 | 1.64 | 1.31 | 0.86 | -0.18 | 0.10 | 0.80 | 0.56 | 0.45 | 0.54 | 0.53 | 0.39 | 0.47 | 0.59 | 0.35 | 0.64 | 0.60 | 0.46 | 0.36 | 0.47 | 0.54 | 0.53 | 0.37 | 0.24 | 0.03 | 0.12 | 0.10 | 0.03 | 0.09 |
| Diluted Shares Outstanding | 60.01M | 60.46M | 59.37M | 58.36M | 57.67M | 57.36M | 55.43M | 56.23M | 53.93M | 50.1M | 44.86M | 44.51M | 43.41M | 42.88M | 42.61M | 39.73M | 35.98M | 35.76M | 35.69M | 35.26M | 35.31M | 34.81M | 34.61M | 33.79M | 32.8M | 29.84M | 27.29M | 26.27M | 26M | 25.25M | 24.59M |
| Basic Shares Outstanding | 59.51M | 59.16M | 58.22M | 57.59M | 56.81M | 56.15M | 55.43M | 55.08M | 52.27M | 48.8M | 44.41M | 44.04M | 43.14M | 42.61M | 42.18M | 39.09M | 35.29M | 35.01M | 34.71M | 34.28M | 34.17M | 33.56M | 32.88M | 31.56M | 30.11M | 28.17M | 26.84M | 26.18M | 25.76M | 25.25M | 24.48M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Operational margin scaling challenges
According to recent quarterly filings, Merit Medical has maintained a steady revenue growth trajectory, with year-over-year figures consistently hovering between 5.6% and 13.1% over the last ten quarters, suggesting that the company's procedural accessory model provides a durable, non-elective demand base despite broader macroeconomic fluctuations.
The company's ability to sustain mid-to-high single-digit growth indicates that its 'breadth-of-bag' strategy effectively captures procedural volume in cath labs. However, the variability in quarterly growth rates suggests that revenue may be sensitive to the timing of large distributor orders and the successful integration of tuck-in acquisitions.
Based on reported financial statements, Merit Medical's gross margins have largely remained range-bound between 46% and 49%, reflecting a product mix heavily weighted toward high-volume, lower-cost disposables rather than the premium-priced therapeutic implants that typically command margins exceeding 60% in the broader medical device sector.
This margin profile suggests that the company faces structural limitations in pricing power, likely due to the commoditized nature of many of its accessory components. Investors should monitor whether the 'Foundations for Growth' initiative can drive meaningful expansion through manufacturing automation or if the current margin ceiling is a permanent feature of their business model.
As indicated by the provided income statement data, operating income has struggled to scale proportionally with gross profit, with operating margins fluctuating between 10% and 14% over the last ten quarters, implying that SG&A expenses continue to absorb a significant portion of incremental gross profit gains.
The lack of consistent operating leverage suggests that the company's frequent acquisition strategy may be creating ongoing integration costs that offset efficiency gains. Without a clear trend of SG&A as a percentage of revenue declining, the company may continue to face difficulty in expanding its bottom-line profitability.
Analysis of recent SEC filings reveals that stock-based compensation has trended upward, reaching $13.6M in 2025Q3, which warrants further investigation into how these non-cash expenses influence the quality of reported net income and the underlying economic reality of the company's earnings per share growth.
The divergence between net income growth and EPS performance in certain periods suggests that investors should be cautious of relying solely on GAAP figures. The persistent use of equity-based incentives may be masking the true cost of talent retention and acquisition integration, potentially overstating the company's operational efficiency.
Based on the reported figures, short-term margin volatility remains a primary concern, as evidenced by the dip to 41.8% gross margin in 2023Q4, which highlights the company's vulnerability to input cost spikes and the potential for GPO pricing pressure to erode profitability in the future.
While the company's defensive product profile is a strength, the reliance on high-volume disposables leaves it exposed to hospital cost-containment efforts. If hospital procurement departments successfully consolidate vendors further, Merit Medical may find it difficult to maintain its current margin levels without sacrificing market share.
Quick answers to the most common questions about buying MMSI stock.
For fiscal year 2025, Merit Medical Systems, Inc. (MMSI) reported total revenue of $1.51B. This represents a 2899.5% increase compared to $50.5M in 1996.
Merit Medical Systems, Inc. (MMSI) is profitable, generating $128.5M in net income for the fiscal year ending 2025 with a net profit margin of 8.5%.
Merit Medical Systems, Inc. (MMSI) reported an operating income of $184.4M, resulting in an operating profit margin of 12.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Merit Medical Systems, Inc. (MMSI) generated $736.9M in gross profit for the year, representing a gross profit margin of 48.7%. This demonstrates the company's core pricing power and production efficiency.