Did Utah Medical Products beat earnings in Q4 2025?

UTMD does not have analyst coverage for earnings estimates. Q4 2025 revenue was $9.04M (-1.2% YoY) and EPS was $0.80 (-6.4% YoY), reflecting customer losses but stable gross margins.

What happened to UTMD's revenue in 2025?

Full-year 2025 revenue declined 5.8% to $38.5M, primarily due to a 96% drop in PendoTECH OEM sales ($2.3M lost), China distributor cancellation, and lower Filshie device sales outside the U.S.

Is UTMD financially healthy?

Yes. Despite lower sales, UTMD grew its cash position to $85.8M (+$2.8M YoY), has no debt, repurchased 4.5% of shares ($8.4M), and paid $4.0M in dividends. Current ratio is 37.6x.

UTAH MEDICAL PRODUCTS (UTMD)·Q4 2025 Earnings Summary

Utah Medical Products Q4 2025: Revenue Drops as Key Customers Exit, But Cash Piles Up

January 29, 2026 · by Fintool AI Agent

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Utah Medical Products reported Q4 2025 results that tell a story of a company navigating customer losses while protecting its exceptional cash generation. Revenue declined 1.2% year-over-year to $9.04 million, and diluted EPS fell 6.4% to $0.80 — but gross margins actually ticked up, and the company ended the year with $85.8 million in cash despite returning $12.4 million to shareholders through buybacks and dividends.

For full-year 2025, the picture is starker: revenue dropped 5.8% to $38.5 million, and net income fell 18.7% to $11.3 million. The culprit? A near-total collapse in two customer relationships that accounted for essentially all the decline.

Did UTMD Beat Earnings?

No analyst coverage exists for this ~$200M market cap medical device company, so there's no consensus to beat. However, compared to management's own beginning-of-year projections, the company acknowledged it "did not achieve its beginning of year financial projections" due to "unexpected circumstances."

Here's how Q4 2025 stacked up against Q4 2024:

Metric	Q4 2025	Q4 2024	Change
Revenue	$9.04M	$9.16M	-1.2%
Gross Profit	$5.26M	$5.32M	-1.1%
Operating Income	$2.44M	$2.93M	-16.7%
Net Income	$2.57M	$2.90M	-11.6%
Diluted EPS	$0.80	$0.86	-6.4%

The smaller EPS decline (-6.4%) versus net income decline (-11.6%) is due to aggressive share repurchases — UTMD bought back 4.5% of its shares during 2025.

What Drove the Revenue Decline?

Three categories explain nearly the entire $2.4M full-year revenue decline:

Revenue Category	2025	2024	Decline	% of Total Decline
PendoTECH OEM	$0.4M	$2.7M	-$2.3M	96%
OUS Distributors (ex-Filshie)	$8.6M	$9.1M	-$0.5M	20%
WW Filshie Devices	$10.1M	$10.8M	-$0.7M	31%

The PendoTECH collapse: This biopharma OEM customer accounted for 85% of the expected sales decline. Sales to PendoTECH went from $2.7M in 2024 to just $0.4M in 2025.

The China surprise: UTMD's China distributor placed a "non-changeable/noncancellable" order at the start of 2025 — then surprisingly cancelled it in Q3. This resulted in $431K lower revenue than committed, plus a $395K bad debt write-off for cancellation fees the distributor never paid.

Filshie device divergence: Domestic U.S. Filshie sales were actually +11% ($4.5M vs $4.0M), but OUS direct and distributor sales collapsed -16% and -23% respectively.

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How Are Margins Holding Up?

Despite the revenue pressure, UTMD's margin story shows resilience:

Margin	Q4 2025	Q4 2024	FY 2025	FY 2024
Gross Profit Margin	58.2%	58.1%	57.1%	59.0%
Operating Margin	27.0%	32.0%	29.6%	33.2%
Net Income Margin	28.4%	31.7%	29.3%	33.9%

The Q4 gross margin actually improved slightly year-over-year, partly because the low-margin China distributor business was absent from both periods. Full-year gross margin compression was "squeezed by supplier costs for raw materials continuing to increase and further employee cost-of-living adjustments, thanks to the residual inflationary effects of excessive government largesse during and after the COVID pandemic."

Operating margin took a bigger hit due to unusual G&A expenses: the $395K China cancellation write-off, a $195K embezzlement loss from UTMD's Australian subsidiary manager (who "pled guilty, but hasn't repaid"), and FX impacts from a stronger EUR/GBP.

What Changed From Last Quarter?

Q4 vs Q3 2025 sequential comparison:

Metric	Q4 2025	Q3 2025	Change
Revenue	$9.04M	$9.81M	-7.8%
Net Income	$2.57M	$2.63M	-2.4%
EPS	$0.80	$0.82	-2.4%
Gross Margin	58.2%	57.1%	+110 bps

The sequential revenue drop reflects continued pressure from the lost China business and OUS Filshie weakness. However, gross margin improved 110 basis points quarter-over-quarter, and the tax rate was favorable (17.4% vs ~20% for the year).

What Did Management Guide?

Management provided qualitative rather than quantitative guidance for 2026:

Headwinds baked in:

OEM sales to PendoTech: Expected to be ZERO (vs $0.4M in 2025)
Blood pressure monitoring kits to China: Expected to be ZERO (vs $2.1M combined in 2025)
Total known revenue loss: ~$2.5M already built into base case

How they plan to offset:

New product sales (including to other biopharma customers)
Modest organic growth in existing business
Continued domestic Filshie device growth
Improvement in OUS Filshie device sales

Management caveat: "with substantial uncertainty"

What About the Balance Sheet?

This is where UTMD shines. Despite a challenging year, the company's financial position strengthened:

Metric	Dec 31, 2025	Dec 31, 2024	Change
Cash & Investments	$85.8M	$83.0M	+$2.8M
Total Current Assets	$97.7M	$96.3M	+$1.4M
Stockholders' Equity	$119.3M	$117.4M	+$1.8M
Total Debt	$0	$0	—
Current Ratio	37.6x	—	—

UTMD generated enough operating cash flow to:

Pay $8.4M in share buybacks (148,935 shares at ~$56.10 avg)
Pay $4.0M in dividends ($1.22/share for the year)
Still grow cash by $2.8M

The dividend was just increased to $0.31/quarter starting January 2026 (vs $0.305 in Q4 2025).

How Did the Stock React?

The stock was essentially flat on the announcement day:

Price Point	Value
Prior Close (Jan 28)	$60.84
Jan 29 Close	$60.80
Change	-0.07%
52-Week Range	$51.26 - $64.46
YTD Performance	+8.6%

The muted reaction suggests the market had already priced in the revenue headwinds. UTMD stock is up nearly 9% year-to-date after falling 9% in 2025. Management noted that 2025 "marks the first time over the last 27 years that UTMD's stock price declined three years in a row."

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What Should Investors Watch?

Near-term catalysts:

2025 10-K filing (expected by March 27, 2026)
New product launches (validation testing underway, per increased Q4 R&D)
OUS Filshie device sales stabilization

Key risks:

Litigation: 14 of 19 Filshie clip product liability lawsuits dismissed, 4 awaiting court decisions. "Any cases that must go to trial could drive up litigation expenses significantly."
Customer concentration: The PendoTECH and China exits show vulnerability to single-customer exposure
FX headwinds: Stronger GBP/EUR hurt operating expenses; management assumes flat FX for 2026 projections

The bull case: This is a cash-generating machine (45%+ adjusted EBITDA margins) trading at less than 2.5x cash with no debt, buying back stock, raising dividends, and still growing its cash pile despite customer losses.

The bear case: Revenue has now declined four consecutive years (from $52.3M in 2022 to $38.5M in 2025), with another $2.5M headwind baked into 2026. At some point, shrinking top-line catches up even to the best capital allocators.

Key Takeaways

Revenue declined but was manageable: -1.2% Q4, -5.8% full year, driven by known customer losses (PendoTECH, China)
Margins held steady: Q4 gross margin ticked up; operating margin pressured by one-time items
Cash generation remains strong: $85.8M in cash (+$2.8M) despite $12.4M returned to shareholders
2026 headwinds quantified: ~$2.5M in lost revenue already expected (PendoTECH + China = zero)
Shareholder returns continue: Dividend raised to $0.31/quarter, aggressive buybacks ongoing

For more details, see the full 8-K filing or explore UTMD's research page.

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