Earnings release
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1 Exhibit 99.1 Contacts: PR/Media Inquiries:Sarah ComstockMerit Medical Investor Inquiries:Mike Piccinino, CFA, IRCICR Healthcare+1-801-432-2864 +1-443-213-0509sarah.comstock@merit.com mike.piccinino@icrhealthcare.com FOR IMMEDIATE RELEASE MERIT MEDICAL REPORTS THIRD QUARTER 2026 RESULTS: DELIVERS 9% ORGANIC CONSTANT CURRENCY REVENUEGROWTH AND RAISES FULL-YEAR 2026 GUIDANCE Financial Highlights† ● Reported revenue of $416.2 million, up 8.4% ● Constant currency revenue* and constant currency revenue, organic* up 8% and up 9%, respectively ● GAAP operating margin of 14.1%, compared to 11.1% in prior year period ● Non-GAAP operating margin* of 21.3%, compared to 19.7% in prior year period ● GAAP EPS $0.70, up 51% ● Non-GAAP EPS* $1.12, up 22% ● Cash flow from operations of $175.2 million year-to-date ● Free cash flow* generation of $129.5 million year-to-date † Comparisons above are calculated for the current quarter compared with the third quarter of 2025, unless otherwise specified. Amounts stated in thisrelease are rounded, while percentages are calculated from the underlying amounts. * Constant currency revenue; constant currency revenue, organic; non-GAAP gross profit and margin; non-GAAP operating income and margin; non-GAAP net income; non-GAAP EPS; and free cash flow figures (used here and below) are non-GAAP financial measures. A reconciliation of thesefinancial measures to their most directly comparable GAAP financial measures is included under the heading “Non-GAAP Financial Measures” below. SOUTH JORDAN, Utah, October 29, 2026 -- Merit Medical Systems, Inc. (NASDAQ: MMSI), a leading global manufacturer and marketer ofhealthcare technology, today announced financial results for the three and nine-month periods ended September 30, 2026. “Merit delivered third quarter financial results that exceeded the high end of our expectations, driven primarily by 9% organic, constant currencyrevenue growth, excluding the impact of a strategic divestiture,” said Martha G. Aronson, Merit’s President and CEO. “We experienced strong revenuegrowth trends in the U.S. and better-than-expected demand for Merit’s products across both our Foundational and our Therapeutic platforms. We alsodelivered strong growth in both our non-GAAP operating profit and our non-GAAP earnings per share, which increased 17% and 22%, respectively,year-over-year.” Ms. Aronson
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2 continued: “We have raised our 2026 revenue and non-GAAP earnings per share guidance to reflect the stronger-than-expected results over the first ninemonths of 2026 and remain confident in our team’s ability to execute, with attractive constant currency growth, improving profitability, and solid cashflow generation this year. Our team remains focused on delivering our Continued Growth Initiative financial targets for the three-year period endingDecember 31, 2026, and, in parallel, we are finalizing our longer-term strategic plan focused on identifying opportunities to better position the companyfor sustainable growth, enhanced profitability and value creation for our shareholders.” Merit’s revenue by product category for the three and nine-month periods ended September 30, 2026 and 2025 was as follows (unaudited; in thousands,except for percentages): Three Months EndedReported Constant Currency* September 30, Impact of foreign September 30, 2026 2025 % Change exchange 2026 % ChangeFoundationalAccess $ 157,922 $ 151,508 4% $ (1,018) $ 156,904 4% OEM 46,278 41,499 12% 47 46,325 12% Procedural Solutions 27,162 32,287 (16)% 184 27,346 (15)% Vascular Intervention 42,367 35,391 20% (166) 42,201 19% Other 2,006 221 808% 547 2,553 1,055% Total Foundational 275,735 260,906 6% (406) 275,329 6% TherapeuticCardiac Therapies 27,547 25,530 8% (53) 27,494 8% Endoscopy 23,428 17,631 33% 36 23,464 33% OEM 13,089 9,953 32% (16) 13,073 31% Oncology 27,085 23,263 16% (24) 27,061 16% Renal Therapies 13,550 13,808 (2)% (123) 13,427 (3)% Vascular Intervention 35,810 33,066 8% (496) 35,314 7% Total Therapeutic 140,509 123,251 14% (676) 139,833 13% Total $ 416,244 $ 384,157 8% $ (1,082) $ 415,162 8% Nine Months EndedReported Constant Currency * September 30, Impact of foreign September 30, 2026 2025 % Change exchange 2026 % ChangeFoundationalAccess $ 470,832 $ 438,028 7% $ (8,538) $ 462,294 6% OEM 134,156 128,140 5% (217) 133,939 5% Procedural Solutions 81,599 92,597 (12)% 166 81,765 (12)% Vascular Intervention 123,057 103,195 19% (1,638) 121,419 18% Other 2,531 1,710 48% 3,296 5,827 241% Total Foundational 812,175 763,670 6% (6,931) 805,244 5% TherapeuticCardiac Therapies 83,461 69,019 21% (1,747) 81,714 18% Endoscopy 68,767 52,582 31% 56 68,823 31% OEM 33,365 30,830 8% (66) 33,299 8% Oncology 76,367 69,257 10% (550) 75,817 9% Renal Therapies 37,775 40,014 (6)% (515) 37,260 (7)% Vascular Intervention 105,054 96,598 9% (2,252) 102,802 6% Total Therapeutic 404,789 358,300 13% (5,074) 399,715 12% Total $ 1,216,964 $ 1,121,970 8% $ (12,005) $ 1,204,959 7%
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3 Financial Summary: GAAP gross margin was 48.2%, compared to 48.5% for the third quarter of 2025. Non-GAAP gross margin* was 52.8%, compared to 53.6% for thethird quarter of 2025. GAAP operating margin was 14.1%, compared to 11.1% for the third quarter of 2025. Non-GAAP operating margin* was 21.3%, compared to 19.7%for the third quarter of 2025. GAAP net income was $42.3 million, or $0.70 per share, compared to $27.8 million, or $0.46 per share, for the third quarter of 2025. Non-GAAP netincome* was $67.4 million, or $1.12 per share, compared to $54.9 million, or $0.92 per share, for the third quarter of 2025. As of September 30, 2026, Merit had cash and cash equivalents of $503.6 million and total debt obligations of $747.5 million, compared to cash andcash equivalents of $446.4 million and total debt obligations of $747.5 million as of December 31, 2025. Merit had available borrowing capacity ofapproximately $697 million as of September 30, 2026. Fiscal Year 2026 Financial Guidance Based upon the information currently available to Merit’s management, for the twelve-month period ending December 31, 2026, absent the potentialimpact of trade policies and related actions implemented by the U.S. and other countries subsequent to today’s date, material acquisitions, non-recurringtransactions or other factors beyond Merit’s current expectations, Merit anticipates the following financial results: Revenue and Earnings Guidance* Updated Guidance Prior Guidance(2) Year Ending % Change Year Ending % ChangeFinancial Measure December 31, 2026 Y/Y December 31, 2026 Y/YTotal Revenue $1.635 - $1.642 billion8% - 8% $1.631 - $1.643 billion8% - 8% Non-GAAP Earnings Per Share(1) $4.33 - $4.37 13% - 14% $4.25 - $4.35 11% - 14% *Percentage figures approximated; dollar figures may not foot due to rounding. (1) Merit’s non-GAAP earnings per share reflect the dilutive impact of its 3.00% Convertible Senior Notes due 2029 (the “Convertible Notes”) calculated using the if-converted method of approximately $0.01 per sharefor the year ending December 31, 2026. Any offsetting impacts of the capped call associated with the Convertible Notes are not considered. (2) “Prior Guidance” reflects Merit’s full-year 2026 financial guidance, previously introduced on July 30, 2026. Merit does not provide guidance for GAAP reported financial measures (other than revenue) or a reconciliation of forward-looking non-GAAP financialmeasures to the most directly comparable GAAP reported financial measures (other than revenue) because Merit is unable to predict with reasonablecertainty the financial impact of various items which could impact Merit’s future financial results, such as expenses attributable to acquisitions or otherextraordinary transactions, non-cash expenses related to amortization or write-off of previously acquired tangible and intangible assets, certain employeetermination benefits, performance-based stock compensation expenses, expenses resulting from non-ordinary course litigation or administrativeproceedings and resulting settlements, governmental proceedings, and changes in governmental or industry regulations. These items are uncertain,depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For the same reasons, Merit is unable toaddress the significance of the unavailable information, which could be material to future results. Specifically, Merit is not, without unreasonable effort,able to reasonably predict the amount and impact of these items and Merit believes inclusion of the most comparable GAAP financial measure, and areconciliation of these forward-looking non-GAAP measures to their GAAP counterparts could be confusing to investors or cause undue reliance. Merit’s financial guidance for the year ending December 31, 2026 is subject to risks and uncertainties identified in this release and Merit’s filings withthe SEC. This guidance is based on information and estimates available to Merit as of October 29, 2026. Should known or unknown risks oruncertainties materialize or should underlying assumptions prove inaccurate, actual results will likely vary, and could vary materially, from past resultsand those anticipated, estimated or projected.
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4 CONFERENCE CALL As previously announced, Merit will hold its investor conference call today, Thursday, October 29, 2026, at 4:30 p.m., Eastern Time, to discuss itsresults for the third quarter and provide an operational update. To access the conference call, please pre-register using the following link. Registrantswill receive confirmation with dial-in details. A live webcast and slide deck will also be available at merit.com.
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5 CONSOLIDATED BALANCE SHEETS(in thousands) September 30, December 31, 2026 2025ASSETS (Unaudited) Current Assets Cash and cash equivalents $ 503,551 $ 446,404Trade receivables, net 221,866 203,710Other receivables 37,875 17,773Inventories 391,022 333,705Prepaid expenses and other current assets 35,188 31,493Prepaid income taxes 5,030 4,941Income tax refund receivables 4,283 2,128Total current assets 1,198,815 1,040,154 Property and equipment, net 437,347 428,401Intangible assets, net 591,204 537,654Goodwill 537,135 506,837Deferred income tax assets 7,273 7,049Right-of-use operating lease assets 84,379 87,600Other assets 68,753 78,227 Total Assets $ 2,924,906 $ 2,685,922 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Trade payables $ 66,286 $ 60,551Accrued expenses 174,024 159,486Short-term operating lease liabilities 10,382 10,876Income taxes payable 14,391 8,851Total current liabilities 265,083 239,764 Long-term debt 737,404 734,038Deferred income tax liabilities 37,216 19,665Liabilities related to unrecognized tax benefits 2,248 2,248Deferred compensation payable 19,373 17,542Deferred credits 1,321 1,398Long-term operating lease liabilities 74,273 76,658Other long-term obligations 43,437 10,306Total liabilities 1,180,355 1,101,619 Stockholders' Equity Common stock 808,930 763,909Retained earnings 946,139 824,030Accumulated other comprehensive loss (10,518) (3,636)Total stockholders' equity 1,744,551 1,584,303 Total Liabilities and Stockholders' Equity $ 2,924,906 $ 2,685,922 fp
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6 CONSOLIDATED STATEMENTS OF INCOME(Unaudited, in thousands except per share amounts) Three Months Ended Nine Months EndedSeptember 30, September 30, 2026 2025 2026 2025 Net sales $ 416,244 $ 384,157 $ 1,216,964 $ 1,121,970Cost of sales 215,613 197,746 616,370 579,052Gross profit 200,631 186,411 600,594 542,918 Operating expenses: Selling, general and administrative 119,511 119,801 366,950 340,384Research and development 22,393 23,966 70,391 70,811Contingent consideration (benefit) expense (36) 32 (70) 1,198Total operating expenses 141,868 143,799 437,271 412,393 Income from operations 58,763 42,612 163,323 130,525 Other income (expense): Interest income 4,128 3,615 11,780 11,166Interest expense (7,333) (6,754) (25,977) (20,097)Other income (expense) — net 227 (933) 11,519 (1,717)Total other expense — net (2,978) (4,072) (2,678) (10,648) Income before income taxes 55,785 38,540 160,645 119,877 Income tax expense 13,474 10,785 38,536 29,394 Net income $ 42,311 $ 27,755 $ 122,109 $ 90,483 Earnings per common share Basic $ 0.71 $ 0.47 $ 2.05 $ 1.53Diluted $ 0.70 $ 0.46 $ 2.03 $ 1.49 Weighted average shares outstanding Basic 59,806 59,245 59,666 59,095Diluted 60,379 59,919 60,134 60,604
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7 CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited, in thousands) Nine Months EndedSeptember 30, 2026 2025CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 122,109 $ 90,483Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 93,383 91,629Gain on disposition of a business (12,557) (249)Amortization of right-of-use operating lease assets 8,771 8,693Fair value adjustments related to contingent consideration liabilities (70) 1,198Stock-based compensation expense 35,497 33,563Other adjustments 6,950 5,123Changes in operating assets and liabilities, net of acquisitions and divestitures (78,853) (31,579)Total adjustments 53,121 108,378Net cash, cash equivalents, and restricted cash provided by operating activities 175,230 198,861 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures for property and equipment (45,686) (57,252)Proceeds from asset and business dispositions 25,555 298Cash paid for notes receivable and other investments (9,242) (14,936)Cash paid in acquisitions, net of cash acquired (93,049) (122,834)Other investing, net (2,293) (2,327)Net cash, cash equivalents, and restricted cash used in investing activities (124,715) (197,051) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock 16,272 22,179Contingent payments related to acquisitions (3,030) (2,645)Payment of taxes related to an exchange of common stock (6,973) (8,597)Net cash, cash equivalents, and restricted cash provided by financing activities 6,269 10,937Effect of exchange rates on cash 454 3,047Net increase in cash, cash equivalents and restricted cash 57,238 15,794 CASH, CASH EQUIVALENTS AND RESTRICTED CASH: Beginning of period 448,549 378,767End of period $ 505,787 $ 394,561 RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO THECONSOLIDATED BALANCE SHEETS:Cash and cash equivalents 503,551 392,457Restricted cash reported in prepaid expenses and other current assets 2,236 2,104 Total cash, cash equivalents and restricted cash $ 505,787 $ 394,561
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8 Non-GAAP Financial Measures Although Merit’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America(“GAAP”), Merit’s management believes that the non-GAAP financial measures referenced in this release may provide investors with usefulinformation regarding the underlying business trends and performance of Merit’s ongoing operations and can be useful for period-over-periodcomparisons of such operations. Non-GAAP financial measures used in this release include: ● constant currency revenue; ● constant currency revenue, organic; ● non-GAAP gross profit and margin; ● non-GAAP operating income and margin; ● non-GAAP net income; ● non-GAAP earnings per share; and ● free cash flow. Merit’s management team uses these non-GAAP financial measures to evaluate Merit’s profitability and efficiency, to compare operating and financialresults to prior periods, to evaluate changes in the results of its operating segment, and to measure and allocate financial resources internally. However,Merit’s management does not consider such non-GAAP measures in isolation or as an alternative to measures determined in accordance with GAAP. Readers should consider non-GAAP measures used in this release in addition to, not as a substitute for, financial reporting measures prepared inaccordance with GAAP. These non-GAAP financial measures generally exclude some, but not all, items that may affect Merit’s net income. In addition,they are subject to inherent limitations as they reflect the exercise of judgment by management about which items are excluded. Merit believes it isuseful to exclude such items in the calculation of non-GAAP gross profit and margin, non-GAAP operating income and margin, non-GAAP net income,and non-GAAP earnings per share (in each case, as further illustrated in the reconciliation tables below) because such amounts in any specific periodmay not directly correlate to the underlying performance of Merit’s business operations and can vary significantly between periods as a result of factorssuch as acquisition or other extraordinary transactions, non-cash expenses related to amortization or write-off of previously acquired tangible andintangible assets, certain employee termination benefits, expenses resulting from non-ordinary course litigation or administrative proceedings andresulting settlements, governmental proceedings or changes in tax or industry regulations, gains or losses on disposal of certain assets,equity method investment loss (income) from equity investees, and debt issuance costs. Merit may incur similar types of expenses in the future, and thenon-GAAP financial information included in this release should not be viewed as a statement or indication that these types of expenses will not recur.Additionally, the non-GAAP financial measures used in this release may not be comparable with similarly titled measures of other companies. Meriturges readers to review the reconciliations of its non-GAAP financial measures to their most directly comparable GAAP financial measures includedherein, and not to rely on any single financial measure to evaluate Merit’s business or results of operations. Constant Currency Revenue Merit’s constant currency revenue is prepared by converting the current-period reported revenue of subsidiaries whose functional currency is a currencyother than the U.S. dollar at the applicable foreign exchange rates in effect during the comparable prior-year period and adjusting for the effects ofhedging transactions on reported revenue, which are recorded in the U.S. dollar. The constant currency revenue adjustment of $(1.1) million and $(12.0)million to reported revenue for the three and nine-month periods ended September 30, 2026 was calculated using the applicable average foreignexchange rates for the three and nine-month periods ended September 30, 2025.
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9 Constant Currency Revenue, Organic Merit’s constant currency revenue, organic, is defined, with respect to prior fiscal year periods, as GAAP revenue less revenue from certain divestitures.For the three and nine-month periods ended September 30, 2025, Merit’s constant currency revenue, organic, excludes revenues attributable to theDualCap® product line which Merit sold to Health Line International Corporation (“Health Line”) on February 17, 2026 (the “DualCap Divestiture”). With respect to current fiscal year periods, constant currency revenue, organic, is defined as constant currency revenue (as defined above), less revenuefrom certain acquisitions and divestitures. For the three-month period ended September 30, 2026, Merit’s constant currency revenue, organic, excludesrevenues attributable to products acquired in connection with (i) Merit’s acquisition of View Point Medical, Inc. (“View Point”) in April 2026 (the “ViewPoint Merger”) and (ii) the assets acquired from Pentax of America, Inc. related to the C2 CryoBalloon™ device in November 2025 (the “C2Acquisition”). For the nine-month period ended September 30, 2026, Merit’s constant currency revenue, organic, excludes revenues attributable toproducts acquired in connection with (i) the View Point Merger, (ii) the C2 Acquisition and (iii) Merit’s acquisition of Biolife Delaware, L.L.C.(“Biolife”) in May 2025 (the “Biolife Merger”) and excludes revenues attributable to the DualCap Divestiture. Non-GAAP Gross Profit and Margin Non-GAAP gross profit is calculated by reducing GAAP cost of sales by amounts recorded for amortization of intangible assets and inventory mark-uprelated to acquisitions. Non-GAAP gross margin is calculated by dividing non-GAAP gross profit by reported net sales. Non-GAAP Operating Income and Margin Non-GAAP operating income is calculated by adjusting GAAP operating income for certain items which are deemed by Merit’s management to beoutside of core operations and vary in amount and frequency among periods, such as expenses related to acquisitions or other extraordinary transactions,non-cash expenses related to amortization or write-off of previously acquired tangible and intangible assets, certain employee termination benefits,performance-based stock compensation expenses, expenses resulting from non-ordinary course litigation or administrative proceedings and resultingsettlements, governmental proceedings, and changes in governmental or industry regulations, as well as other items referenced in the tables below. Non-GAAP operating margin is calculated by dividing non-GAAP operating income by reported net sales. Non-GAAP Net Income Non-GAAP net income is calculated by adjusting GAAP net income for the items set forth in the definition of non-GAAP operating income above, aswell as for expenses related to Merit’s long-term debt, gains or losses on disposal of certain assets, equity method investment loss (income)from equity investees, and other items set forth in the tables below. Non-GAAP EPS Non-GAAP EPS is defined as non-GAAP net income divided by the diluted shares outstanding for the corresponding period. Free Cash Flow Free cash flow is defined as cash flow from operations calculated in accordance with GAAP, less capital expenditures for property and equipmentcalculated in accordance with GAAP, as set forth in the consolidated statement of cash flows. Other Non-GAAP Financial Measure Reconciliations The following tables set forth supplemental financial data and corresponding reconciliations of non-GAAP financial measures to Merit’s correspondingfinancial measures prepared in accordance with GAAP, in each case, for the three and nine-month periods ended September 30, 2026 and 2025. Thenon-GAAP income adjustments referenced in the following tables do not reflect non-performance-based stock compensation expense of $6.4 millionand $4.6 million for the three-month periods ended September 30, 2026 and 2025, respectively, and $15.9 million and $13.9 million for the nine-monthperiods ended September 30, 2026 and 2025, respectively.
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10 Reconciliation of GAAP Net Income to Non-GAAP Net Income(Unaudited, in thousands except per share amounts) Three Months EndedSeptember 30, 2026 Pre-Tax Tax Impact After-Tax Per Share ImpactGAAP net income $ 55,785 $ (13,474) $ 42,311 $ 0.70 Non-GAAP adjustments: Cost of Sales Amortization of intangibles 18,996 (4,484) 14,512 0.24Operating Expenses Contingent consideration benefit (36) (14) (50) (0.00)Amortization of intangibles 2,540 (600) 1,940 0.03Performance-based share-based compensation (a) 7,173 (665) 6,508 0.11Corporate restructuring (b) 301 (71) 230 0.00Acquisition-related 280 (11) 269 0.00Medical Device Regulation expenses (c) 519 (123) 396 0.01Other (Income) ExpenseLong-term debt costs (e) 1,414 (334) 1,080 0.02Other non-operating loss (f) 254 (60) 194 0.00 Non-GAAP net income $ 87,226 $ (19,836) $ 67,390 $ 1.12 Diluted shares 60,379 Three Months EndedSeptember 30, 2025Pre-Tax Tax Impact After-Tax Per Share ImpactGAAP net income $ 38,540 $ (10,785) $ 27,755 $ 0.46 Non-GAAP adjustments: Cost of Sales Amortization of intangibles 19,212 (4,539) 14,673 0.24Inventory mark-up related to acquisitions 183 (43) 140 0.00Operating Expenses Contingent consideration expense 32 (5) 27 0.00Amortization of intangibles 2,560 (604) 1,956 0.03Performance-based share-based compensation (a) 9,028 (1,413) 7,615 0.13Corporate restructuring (b) 286 (67) 219 0.00Acquisition-related (68) 16 (52) (0.00)Medical Device Regulation expenses (c) 1,655 (391) 1,264 0.02Other (d) 74 (17) 57 0.00Other (Income) Expense Long-term debt costs (e) 1,414 (334) 1,080 0.02Other non-operating loss (f) 260 (61) 199 0.00 Non-GAAP net income $ 73,176 $ (18,243) $ 54,933 $ 0.92 Diluted shares 59,919 Note: Certain per-share impacts may not sum to totals due to rounding.
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11 Reconciliation of GAAP Net Income to Non-GAAP Net Income(Unaudited, in thousands except per share amounts) Nine Months EndedSeptember 30, 2026 Pre-Tax Tax Impact After-Tax Per Share ImpactGAAP net income $ 160,645 $ (38,536) $ 122,109 $ 2.03 Non-GAAP adjustments: Cost of Sales Amortization of intangibles 55,941 (13,206) 42,735 0.71Operating Expenses Contingent consideration benefit (70) (9) (79) (0.00)Amortization of intangibles 7,490 (1,768) 5,722 0.10Performance-based share-based compensation (a) 19,602 (1,727) 17,875 0.30Corporate restructuring (b) 2,460 (581) 1,879 0.03Acquisition-related 7,091 (916) 6,175 0.10Medical Device Regulation expenses (c) 2,589 (611) 1,978 0.03Other (Income) Expense Long-term debt costs (e) 9,305 (2,197) 7,108 0.12Gain on disposal of business unit (12,502) 1,520 (10,982) (0.18)Other non-operating loss (f) 1,079 (267) 812 0.01 Non-GAAP net income $ 253,630 $ (58,298) $ 195,332 $ 3.25 Diluted shares 60,134 Nine Months EndedSeptember 30, 2025 Pre-Tax Tax Impact After-Tax Per Share ImpactGAAP net income $ 119,877 $ (29,394) $ 90,483 $ 1.49 Non-GAAP adjustments: Cost of Sales Amortization of intangibles 55,798 (13,184) 42,614 0.70Inventory mark-up related to acquisitions 250 (59) 191 0.00Operating Expenses Contingent consideration expense 1,198 29 1,227 0.02Amortization of intangibles 7,497 (1,771) 5,726 0.09Performance-based share-based compensation (a) 19,681 (2,344) 17,337 0.29Corporate restructuring (b) 2,873 (678) 2,195 0.04Acquisition-related 2,088 (2) 2,086 0.03Medical Device Regulation expenses (c) 4,883 (1,153) 3,730 0.06Other (d) 103 (24) 79 0.00Other (Income) Expense Long-term debt costs (e) 4,242 (1,002) 3,240 0.05Other non-operating loss (f) 11 (61) (50) (0.00) Non-GAAP net income $ 218,501 $ (49,643) $ 168,858 $ 2.79 Diluted shares 60,604 Note: Certain per-share impacts may not sum to totals due to rounding.
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12 Reconciliation of Reported Operating Income to Non-GAAP Operating Income(Unaudited, in thousands except percentages) Three Months Ended Three Months Ended Nine Months Ended Nine Months EndedSeptember 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025 Amounts % Sales Amounts % Sales Amounts % Sales Amounts % SalesNet Sales as Reported $ 416,244 $ 384,157 $ 1,216,964 $ 1,121,970 GAAP Operating Income 58,763 14.1 % 42,612 11.1 % 163,323 13.4 % 130,525 11.6 %Cost of SalesAmortization of intangibles 18,996 4.6 % 19,212 5.0 % 55,941 4.6 % 55,798 5.0 %Inventory mark-up related to acquisitions — — 183 0.0 % — — 250 0.0 %Operating ExpensesContingent consideration (benefit) expense (36) (0.0) % 32 0.0 % (70) (0.0) % 1,198 0.1 %Amortization of intangibles 2,540 0.6 % 2,560 0.7 % 7,490 0.6 % 7,497 0.7 %Performance-based share-based compensation (a) 7,173 1.7 % 9,028 2.4 % 19,602 1.6 % 19,681 1.8 %Corporate restructuring (b) 301 0.1 % 286 0.1 % 2,460 0.2 % 2,873 0.3 %Acquisition-related 280 0.1 % (68) (0.0) % 7,091 0.6 % 2,088 0.2 %Medical Device Regulation expenses (c) 519 0.1 % 1,655 0.4 % 2,589 0.2 % 4,883 0.4 %Other (d) — — 74 0.0 % — — 103 0.0 % Non-GAAP Operating Income $ 88,536 21.3 % $ 75,574 19.7 % $ 258,426 21.2 % $ 224,896 20.0 % Note: Certain percentages may not sum to totals due to rounding. (a)Represents performance-based share-based compensation expense, including stock-settled and cash-settled awards. (b)Includes employee termination benefits associated with activities related to corporate restructuring initiatives and costs to terminate certain distribution contractsfrom the Biolife Merger. (c)Represents incremental expenses incurred to comply with the E.U. Medical Device Regulation. (d)Represents costs to comply with Merit’s corporate integrity agreement with the U.S. Department of Justice. (e)Represents costs associated with the Convertible Notes including the amortization of debt issuance costs and, for the nine-months ended September 30, 2026, a one-time charge for additional interest incurred pursuant to Merit's obligation to remove restrictive legends. (f) Includes equity method investment loss from equity investees.
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13 Reconciliation of Reported Revenue to Constant Currency Revenue (Non-GAAP), and Constant Currency Revenue, Organic (Non-GAAP)(Unaudited, in thousands except percentages) Three Months Ended Nine Months EndedSeptember 30, September 30, % Change 2026 2025 % Change 2026 2025Reported Revenue 8.4% $ 416,244 $ 384,157 8.5% $ 1,216,964 $ 1,121,970 Add: Impact of foreign exchange (1,082) — (12,005) — Constant Currency Revenue (a) 8.1% $ 415,162 $ 384,157 7.4% $ 1,204,959 $ 1,121,970 Less: Revenue from certain acquisitions (2,634) — (16,338) —Less: Revenue from divestitures (b) — (5,228) (1,644) (15,440) Constant Currency Revenue, Organic (a) 8.9% $ 412,528 $ 378,929 7.3% $ 1,186,977 $ 1,106,530 (a) A non-GAAP financial measure. For a definition of this and other non-GAAP financial measures, see the section of this release entitled “Non-GAAP FinancialMeasures.” (b) On February 17, 2026, Merit consummated the DualCap Divestiture for consideration of $28 million, of which $25.5 million was paid to Merit at closing.
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14 Reconciliation of Reported Gross Margin to Non-GAAP Gross Margin (Non-GAAP)(Unaudited, as a percentage of reported revenue) Three Months Ended Nine Months EndedSeptember 30, September 30, 2026 2025 2026 2025 Reported Gross Margin 48.2% 48.5% 49.4% 48.4% Add back impact of: Amortization of intangibles 4.6% 5.0% 4.6% 5.0%Inventory mark-up related to acquisitions —% 0.0% —% 0.0% Non-GAAP Gross Margin 52.8% 53.6% 53.9% 53.4% Note: Certain percentages may not sum to totals due to rounding.
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15 Reconciliation of Reported Cash Flow from Operations to Free Cash Flow (Non-GAAP)(Unaudited, in thousands) Nine Months EndedSeptember 30, 2026 2025Reported Cash Flow from Operations $ 175,230 $ 198,861 Less: Capital Expenditures (45,686) (57,252) Free Cash Flow $ 129,544 $ 141,609
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16 Reconciliation of 2026 Net Sales Guidance - % Change from Prior Year (Constant Currency) Updated Guidance Prior Guidance(1) Low High Low High2026 Net Sales Guidance - % Change from Prior Year (GAAP) 7.9% 8.4% 7.6% 8.4%Estimated impact of foreign currency exchange rate fluctuations (0.8%) (0.8%) (0.8%) (0.8%)2026 Net Sales Guidance - % Change from Prior Year (Constant Currency) 7.0% 7.5% 6.8% 7.6% Note: Certain percentages may not sum to totals due to rounding. (1) “Prior Guidance” reflects Merit’s full-year 2026 financial guidance, previously introduced on July 30, 2026.
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17 ABOUT MERIT Founded in 1987, Merit is engaged in the development, manufacture, and distribution of proprietary medical devices used in interventional, diagnostic,and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care, and endoscopy. Merit serves customers worldwide with adomestic and international sales force and clinical support team totaling approximately 900 individuals. Merit employs approximately 7,500 peopleworldwide. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of theSecurities Exchange Act of 1934, as amended. Forward-looking statements include, among others: ● statements preceded or followed by, or that include the words, “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “intends,” “seeks,”“believes,” “estimates,” “projects,” “forecasts,” “potential,” “target,” “continue,” “upcoming,” “optimistic” or other forms of these words orsimilar words or expressions, or the negative thereof or other comparable terminology; ● statements that address Merit’s future operating performance or events or developments that Merit’s management expects or anticipates willoccur, including, without limitation, any statements regarding Merit’s projected revenues, earnings or other future financial measures, Merit’splans and objectives for future operations, Merit’s proposed new products or services, the integration, development or commercialization of thebusiness or any assets acquired from other parties, future economic conditions or performance, the implementation of, and results which maybe achieved through, Merit’s Continued Growth Initiatives Program or other business optimization initiatives, and any statements ofassumptions underlying any of the foregoing; and ● statements regarding Merit’s past performance, efforts, or results about which inferences or assumptions may be made, including statementspreceded or followed by the words "preliminary," "initial," "potential," "possible," "diligence," "industry-leading," "compliant," "indications" or"early feedback" or other forms of these words or similar words or expressions, or the negative thereof or other comparable terminology. The forward-looking statements contained in this release are based on Merit management’s current expectations and assumptions regarding future eventsor outcomes. If underlying expectations or assumptions prove inaccurate, or risks or uncertainties materialize, actual results will likely differ, and maydiffer materially, from Merit’s expectations reflected in any forward-looking statements. Financial estimates are subject to change and are not intendedto be relied upon as predictions of future operating results. Investors are cautioned not to unduly rely on any such forward-looking statements. The following are some of the important risks and uncertainties that could cause Merit’s actual results to differ from management’s expectations in anyforward-looking statements: risks and uncertainties arising from the conflict among the United States, Israel and Iran and related geopolitical instability;risks and uncertainties associated with Merit’s acquisition of Solo Pace, Inc. (“Solo Pace”) and SOLO PACE CONTROL and FUSION systems andrelated technology in October 2026; risks and uncertainties associated with Merit’s integration of the Solo Pace business, assets and operations into itsoperations and its ability to achieve anticipated financial results, product development and other anticipated benefits of the acquisition; uncertainties asto whether Merit will achieve revenue or other financial performance consistent with its forecasts projected for the Solo Pace acquisition; risks anduncertainties regarding trade policies or related actions implemented by the United States or other countries, including existing, proposed, prospective orinvalidated tariffs, duties or other measures; risks and uncertainties associated with Merit’s integration of businesses or assets acquired from thirdparties, including the View Point Merger in April 2026, the C2 Acquisition in November 2025 and the Biolife Merger in May 2025, and Merit’s abilityto achieve the anticipated operating and financial results, product development and other anticipated benefits of such acquisitions; effects of Merit’s3.00% Convertible Senior Notes due 2029 on Merit’s net income and earnings per share performance; disruptions in Merit’s supply chain,manufacturing or sterilization processes; U.S. and global political, economic, competitive, reimbursement and regulatory conditions; risks anduncertainties associated with Merit’s executive succession and leadership transition; modification or limitation of, or policies and procedures associatedwith, governmental or private insurance reimbursement policies; reduced availability of, and price increases associated with, components and other rawmaterials; increases in transportation expenses; risks relating to Merit’s potential inability to successfully manage growth through acquisitions generally,including the inability to effectively integrate acquired operations or products or commercialize technology developed internally or acquired throughcompleted, proposed or future transactions; prospective financial obligations or other uncertainties associated with Merit’s divestiture of its DualCap®anti-microbial cap product line in February 2026; fluctuations in interest or foreign currency exchange rates and inflation; cybersecurity events;government
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18 scrutiny and regulation of the medical device industry; difficulties relating to development, testing and regulatory approval, clearance and maintenanceof Merit’s products; the safety, efficacy and patient and physician adoption of Merit’s products; the ability to fully enroll and the outcomes of ongoingand future clinical trials and market studies relating to Merit’s products; litigation and other legal proceedings affecting Merit; risks and possible effectsof any failure to comply with U.S. and foreign laws and regulations; restrictions on Merit’s liquidity or business operations resulting from its debtagreements; infringement of Merit’s technology or the assertion that Merit’s technology infringes the rights of other parties; product recalls and productliability claims; potential for significant adverse changes in governing regulations;, changes in tax laws and regulations in the United States or otherjurisdictions or exposure to additional tax liabilities which may adversely affect Merit’s effective tax rate; termination of relationships with Merit’ssuppliers, or failure of such suppliers to perform; development of new products and technology that could render Merit’s existing or future productsobsolete; market acceptance of new products; failure to comply with applicable environmental laws; changes in key personnel; labor shortages andincreases in labor costs; price and product competition; extreme weather events; and geopolitical events. For a further discussion of the risks anduncertainties and other factors that may affect Merit’s business, operations and financial condition, see Part I, Item 1A. “Risk Factors” in Merit’s AnnualReport on Form 10-K for the year ended December 31, 2025 filed with the SEC, which Merit updated in Part II, Item 1A. “Risk Factors” in Merit’sQuarterly Reports on Form 10-Q for each of the quarters ended March 31, 2026, June 30, 2026 and September 30, 2026. All subsequent forward-looking statements attributable to Merit or persons acting on its behalf are expressly qualified in their entirety by thesecautionary statements. Actual results will likely differ, and may differ materially, from anticipated results. Financial estimates are subject to change andare not intended to be relied upon as predictions of future operating results. Those estimates and all other forward-looking statements included in thisrelease are made only as of the date of this release, and except as otherwise required by applicable law, Merit assumes no obligation to update ordisclose revisions to estimates and all other forward-looking statements. TRADEMARKS Unless noted otherwise, trademarks and registered trademarks used in this release are the property of Merit Medical Systems, Inc., its subsidiaries, or itslicensors. # # #