UTMD earnings analysis
What we found in UTMD's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
UTMD's Q2 2026 results were weak, with revenue down 14.3% to $8.529 million, operating margin down to 31.1% from 32.1%, and diluted EPS down 10.1% to $0.844. First-half gross margin improved to 58.2% and the company remains highly liquid with $87.528 million of cash and investments and no debt, but operating cash flow fell to $4.492 million from $7.337 million. Management now expects 2026 revenue to decline 10%-13% versus 2025, reflecting slower-than-expected replacement sales, while litigation expense could reach $1.6 million.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and EPS Declined Year Over Year
- Q2 2026 revenue was $8.529 million, down $1.424 million or 14.3% year over year. Operating income declined 17.1% to $2.649 million, while diluted EPS fell 10.1% to $0.844 from $0.939.
- First-Half Gross Margin Improved
- The 1H 2026 gross margin improved to 58.2% from 56.6% despite revenue declining 12.3% to $17.252 million. Management attributed the improvement to a more favorable product mix excluding $1.658 million of low-margin China distributor sales.
- Positive Cash Generation Despite Decline
- UTMD generated $4.492 million of operating cash flow in 1H 2026 versus $7.337 million in 1H 2025. After $264,000 of capital expenditures, estimated free cash flow was $4.228 million, with capex equal to approximately 5.9% of operating cash flow.
- Strong, Debt-Free Balance Sheet
- Cash and investments increased to $87.528 million from $85.756 million at December 31, 2025, despite $1.976 million of dividends, $206,000 of share repurchases and $264,000 of capital expenditures. The company reported no debt and a 48.6 current ratio.
- Some Product Areas Offset Customer Losses
- Non-PendoTECH domestic OEM sales increased $166,000 in Q2 and $222,000 in 1H 2026, while domestic Filshie sales rose 10.7% to $2.376 million in 1H 2026. Excluding the former China distributor, 1H OUS sales were down only $32,000 or 0.4%.
- Tariff Headwind May Ease
- Management expects no additional Filshie device tariffs in 2H 2026 and reported that tariffs on those devices were $156,000 in 1H 2026, reducing the 1H gross margin by 0.9 percentage points.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 2026 Revenue Outlook Lowered
- Management reduced its 2026 outlook from revenues expected to be about the same as 2025 to a projected 10%-13% decline, after new biopharma customer sales reached only $211,000 in 1H 2026. The two former customers contributed $1.923 million of 1H 2025 sales but zero in 1H 2026.
- Filshie Litigation Costs Increased
- Management's prior expectation that 2026 litigation expense would be below 2025 is no longer valid. Litigation expense was $1.355 million in 2025, and management's current estimate is that 2026 expense will be less than $1.6 million; 1H 2026 litigation costs were $341,000 higher year over year.
- Inventory and Receivables Efficiency Weakened
- Inventory increased $1.068 million from year-end and average inventory turns declined to 1.7 from 2.0 in the last quarter of 2025, both below management targets. Trade receivable age also rose to 38 days from 35 days at December 31, 2025, increasing working-capital risk amid lower sales.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.844
- Gross margin
- 55.8%
- Operating margin
- 31.1%
- Segment
- Obstetrics: $1.066 million in Q2 2026 versus $1.025 million in Q2 2025, up 4.0%; $1.972 million in 1H 2026 versus $2.050 million, down 3.8%.
- Segment
- Gynecology/Electrosurgery/Urology: $4.280 million in Q2 2026 versus $4.807 million, down 11.0%; $9.508 million in 1H 2026 versus $9.703 million, down 2.0%.
- Segment
- Neonatal: $1.919 million in Q2 2026 versus $2.102 million, down 8.7%; $3.488 million in 1H 2026 versus $4.084 million, down 14.6%.
- Segment
- Blood Pressure Monitoring and Accessories: $1.264 million in Q2 2026 versus $2.019 million, down 37.4%; $2.284 million in 1H 2026 versus $3.826 million, down 40.3%.
- Segment
- Domestic sales: $5.166 million in Q2 2026 versus $5.865 million, down 11.9%; $10.727 million in 1H 2026 versus $11.448 million, down 6.3%.
- Segment
- OUS sales: $3.363 million in Q2 2026 versus $4.088 million, down 17.7%; $6.525 million in 1H 2026 versus $8.215 million, down 20.6%.
What they said about what is next.
Management said the original 2026 plan for consolidated revenues to be about the same as 2025 is now unlikely. The current 2026 sales projection is a decline of 10%-13% versus 2025, with substantial uncertainty. No numeric EPS guidance was provided.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 12, 2026
- UTMD reported Q1 2026 results showing a revenue decline of 10.2% year-over-year to $8.722 million, with an EPS of $0.818, down 11.0% from the previous year. The company faced reduced sales from key customers, especially…
- 10-K · March 27, 2026
- UTMD presents a stable, cash-generative medical-device business with a broad product portfolio concentrated in labor & delivery, neonatal care and women’s health. Revenue edged down from about $40.0M in 2024 to $39.0M…
- 10-Q · November 14, 2025
- Utah Medical Products reported 3Q 2025 sales of $9,812 (vs $10,005 in 3Q 2024) and diluted EPS of $0.82 (vs $1.02). Gross margin compressed to 57.1% from 58.0% and operating margin fell to 26.6% from 33.4%, driven by…
- 10-Q · August 12, 2025
- In Q2 2025, Utah Medical Products (UTMD) reported revenues of $9.953 million, down 4.3% from $10.4 million in Q2 2024, while diluted EPS declined 4.0% to $0.94. Gross margins decreased to 56.2% from 60.1%, influenced by…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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