Merit Medical Systems drew 9 news stories in the 24 hours to 30 October, against a usual 0.3 a day. The filings show profit is growing far faster than sales.
Source: SEC EDGAR XBRL company facts. Latest period shown: FY26 Q3.
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| Period | Revenue growth, TTM YoY | Operating margin (TTM) | FCF margin (TTM) |
|---|---|---|---|
| FY24 Q4 | 7.9% | 11.5% | 13.5% |
| FY25 Q1 | 8.2% | 11.6% | 12.8% |
| FY25 Q2 | 10.1% | 11.3% | 13.2% |
| FY25 Q3 | 11.4% | 11.3% | 13.8% |
| FY25 Q4 | 11.8% | 12.2% | 14.0% |
| FY26 Q1 | 11.1% | 12.2% | 14.1% |
| FY26 Q2 | 10.2% | 12.8% | 12.7% |
| FY26 Q3 | 9.1% | 13.5% | 12.4% |
Profit is outgrowing sales
Net income rose 35.2% over the twelve months to Q3 2026 while revenue grew 9.1%, so more of each extra dollar of revenue reached the bottom line. The operating margin widened 2.2 percentage points over the same stretch, landing at 13.5%. Reports covering the Q3 results said earnings and revenues beat estimates; the filings show the margin expansion behind that beat.
The 13.5% operating margin sits above every past reading in the company's own record, which has ranged from −2.5% to 12.8%. Reports noted the stock rallied on margin progress; the filings confirm that this is a new high rather than a recovery of a prior level.
Reported profit and cash are moving at different speeds. Net income rose 35.2% over the year, but free cash flow fell 1.6%, to $200.5 million. Operating cash flow grew 2.3%, to $273.7 million, while capital spending of $73.2 million, or 4.5% of revenue, absorbed more of it. The free-cash-flow margin landed at 12.4% of revenue, down 1.3 percentage points from a year earlier.
Growth has slowed
Today's operating margin of 13.5% is the highest the company has ever recorded. Its free-cash-flow margin of 12.4% sits above 71% of past quarterly readings, which have ranged from −7.6% to 14.1%. Revenue growth of 9.1% is higher than 50% of past readings (−3.1% to 21.3%), yet down 1.1 percentage points from the rate a quarter earlier.
What Merit Medical Systems' share price implies against our model
In our model, growth 5 percentage points lower would lower the value by 25.8%, and growth 5 percentage points higher would raise it by 33.6%. A free-cash-flow margin 1 percentage point lower would lower the value by 7.5%. The model is more sensitive to where revenue growth lands than to the cash margin.
What the filings cannot tell you at Merit Medical Systems
Our figures run to Q3 2026, from the company's own filings; they cannot confirm, explain or rule out anything in the reports.