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…
Earnings analysis · 10-Q
UTMD earnings analysis
Filed August 12, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.844
What stood out
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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.
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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.
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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.
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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.
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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%.
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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.
What to watch
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.