Merit Medical Raises 2026 Earnings Outlook and Buys Solo Pace

Merit Medical Systems raised its 2026 earnings forecast on Thursday after third-quarter revenue rose 8.4% to $416.2 million and profit climbed, results the medical device maker said exceeded the high end of its own expectations, according to its earnings release filed with an 8-K after the market close.

The company now expects full-year non-GAAP earnings of $4.33 to $4.37 a share, up from a prior range of $4.25 to $4.35 issued July 30. It set revenue guidance at $1.635 billion to $1.642 billion, compared with $1.631 billion to $1.643 billion previously, which lifts the low end and trims the top.

Profit jumps

GAAP net income rose to $42.3 million, or 70 cents a share, from $27.8 million, or 46 cents, a 51% gain in per-share earnings. Non-GAAP earnings increased 22% to $1.12 a share from 92 cents.

GAAP operating margin widened to 14.1% from 11.1%, and non-GAAP operating margin improved to 21.3% from 19.7%. GAAP gross margin slipped to 48.2% from 48.5%.

Revenue grew 8% on a constant currency basis and 9% on an organic constant currency basis, which excludes the impact of a strategic divestiture.

"We experienced strong revenue growth trends in the U.S. and better-than-expected demand for Merit's products across both our Foundational and our Therapeutic platforms," President and CEO Martha G. Aronson said in the release.

Therapeutic products lead

Revenue from the Therapeutic segment rose 14% to $140.5 million. Endoscopy sales jumped 33% to $23.4 million, therapeutic OEM sales rose 32% to $13.1 million and oncology sales climbed 16% to $27.1 million. Renal therapies slipped 2% to $13.6 million.

Foundational revenue increased 6% to $275.7 million. Vascular intervention sales in that segment rose 20% to $42.4 million and OEM sales grew 12% to $46.3 million, while procedural solutions revenue fell 16% to $27.2 million.

Solo Pace acquisition

In a separate release furnished with the same filing, Merit said it acquired Solo Pace, a Minneapolis maker of temporary pacing systems used in transcatheter aortic valve replacement procedures. Merit, which had previously invested in Solo Pace and served as its exclusive distributor, bought the remaining equity on Oct. 13 for purchase consideration of approximately $45 million.

The deal expands Merit's Cardiac Therapies platform with the SOLO PACE CONTROL and SOLO PACE FUSION systems, the company said.

Cash and debt

Merit ended the quarter with $503.6 million in cash and cash equivalents, up from $446.4 million at the end of 2025, and total debt obligations of $747.5 million, unchanged from year-end. It had about $697 million of available borrowing capacity.

Cash flow from operations totaled $175.2 million for the first nine months, and free cash flow was $129.5 million.

Aronson said the company is focused on delivering its Continued Growth Initiative targets for the three-year period ending Dec. 31, 2026, and is finalizing a longer-term strategic plan. Merit scheduled a conference call for 4:30 p.m. ET Thursday.

Sources

1. Merit Medical Systems Form 8-K with third-quarter 2026 earnings release and Solo Pace acquisition release (Exhibits 99.1 and 99.3), filed Oct. 29, 2026 (accession 0000856982-26-000051)

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