Executive Summary

Q4 2024 came in weaker on revenue and EPS with resilience in margins: revenue $9,157k (-25.8% y/y) and diluted EPS $0.857 (-27.4% y/y), down sequentially from Q3 revenue $10,005k and EPS $1.025, while gross margin held at 58.1% (Q4’23: 57.6%) and operating margin at 32.0% (unchanged y/y) .
Declines were driven by steep OEM demand drop from PendoTECH, zero China blood pressure monitoring kit shipments in Q4, and softer Filshie sales; OUS sales fell 38.9% y/y in Q4, domestic -14.9% y/y .
2025 outlook: management expects total revenues to be down again low-to-mid single digits vs 2024; PendoTECH revenues may be about $2.0M lower; China BPM orders slightly higher; OUS distributors to rebound with approvals; OUS Filshie to improve; domestic non‑Filshie to grow low single digits .
Capital allocation remains supportive: $6.7M buybacks in Q4 (105k shares) and $20.0M in 2024 (302k shares); quarterly dividend raised to $0.305/share starting Jan 2025; cash & investments at 12/31/24 were $82.976M with no debt .
Potential stock catalysts: conservative 2025 revenue outlook and litigation expense risk vs. strong margin discipline, large cash, and buybacks .

What Went Well and What Went Wrong

What Went Well

Margins held despite volume pressure: Q4 gross margin 58.1% (Q4’23: 57.6%), operating margin 32.0% (flat y/y), and adjusted EBITDA margin 48.1% (Q4’23: 49.6%) as management reduced manufacturing personnel and closed the second production shift in Utah .
Strong balance sheet and liquidity: cash & investments $82.976M at year‑end, no debt; current ratio 25.6 .
Shareholder returns: $6.7M repurchased in Q4 and $19.968M in 2024 (8% of shares), plus a dividend increase to $0.305/share starting Jan 2025 .

Selected management language:

“UTMD was nevertheless able to maintain its GP margin in 2024 by reducing manufacturing personnel, including closing down the second production shift in Utah.”
“UTMD’s Operating Income margin was essentially the same in both years...”

What Went Wrong

Top-line contraction intensified: Q4 revenue down 25.8% y/y; annual 2024 revenue down 18.6% driven mainly by PendoTECH OEM (-$5.9M y/y), OUS distributors (-$2.1M y/y), and Filshie (-$1.5M y/y) .
OUS weakness: Q4 OUS revenue fell 38.9% y/y; there were no Q4 shipments of pressure monitoring kits to China, driving $1,587k lower Ireland revenue; US-to-OUS distributor exports were also constrained by delayed regulatory renewals .
Elevated legal costs: 2024 litigation expense rose to $2,139k (5.2% of sales); while Q4 litigation expense fell vs prior year, management warned trials could spike costs .

Financial Results

Headline P&L

Metric (USD)	Q4 2023	Q3 2024	Q4 2024
Revenue ($ Thousands)	$12,333	$10,005	$9,157
Gross Profit ($ Thousands)	$7,098	$5,802	$5,323
Operating Income ($ Thousands)	$3,944	$3,343	$2,930
Net Income ($ Thousands)	$4,287	$3,564	$2,902
Diluted EPS ($)	$1.180	$1.025	$0.857

YoY change (Q4’24 vs Q4’23): Revenue -25.8%; Gross Profit -25.0%; Operating Income -25.7%; Income Before Tax -28.0%; Net Income -32.3%; Diluted EPS -27.4% .

Margins

Margin	Q4 2023	Q3 2024	Q4 2024
Gross Profit Margin %	57.6%	58.0%	58.1%
Operating Income Margin %	32.0%	33.4%	32.0%
Net Income Margin %	34.8%	35.6%	31.7%
Adjusted EBITDA Margin %	49.6%	49.6%	48.1%

Adjusted EBITDA ($): Q4 2023 $6,115k; Q3 2024 $4,958k; Q4 2024 $4,405k .

Geographic Mix (Q4)

Sales (USD)	Q4 2023	Q3 2024	Q4 2024
Domestic (U.S.) Sales ($ Thousands)	$6,736	$5,687	$5,735
OUS Sales ($ Thousands)	$5,597	$4,318	$3,422
Domestic YoY %	—	—	-14.9%
OUS YoY %	—	—	-38.9%

Notes: No China BPM kit shipments in Q4 2024; OUS distributor sales from Ireland to China down $1,587k y/y in Q4; U.S.-to-OUS distributor exports down in part due to regulatory renewal delays .

KPIs and Capital Allocation

KPI	Q4 2023	Q3 2024	Q4 2024
Adjusted EBITDA ($ Thousands)	$6,115	$4,958	$4,405
Diluted Shares (000s)	3,632	3,478	3,388
Dividend per Share ($)	0.295	0.300	0.300; Raised to $0.305 from Jan’25
Share Repurchases (# / $)	—	58,377 / $3,866k	105,369 / $6,709k
Cash & Investments ($ Thousands)	$92,868 (12/31/23)	$88,452 (9/30/24)	$82,976 (12/31/24)

Non-GAAP: Adjusted EBITDA excludes depreciation, amortization, stock comp, interest, and FX remeasurement; reconciliation provided in filings .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue	FY 2025	—	“Likely to be lower again, low-to-mid single digits vs 2024”	New
PendoTECH OEM Revenue	FY 2025	—	“May be about $2.0M lower vs 2024 ($2.7M in 2024)”	New
China BPM Distributor	FY 2025	—	Fixed annual order “slightly higher than 2024”	New
OUS Distributors (ex-Filshie)	FY 2025	—	“Should bounce back” with regulatory approvals	New
OUS Filshie	FY 2025	—	“Projecting … to be higher”	New
Domestic non‑Filshie Direct Sales	FY 2025	—	Expected higher by low single‑digit %	New
Adjusted EBITDA	FY 2024	$19–$20M (as of Q3)	Actual: $19,852k	Achieved
Dividend	Q1 2025	$0.300/quarter	$0.305/quarter starting Jan 2025	Raised
Litigation Expense	FY 2025	—	Fewer active cases may reduce discovery/motions; trials could significantly increase costs	Risk Noted

Earnings Call Themes & Trends

Note: No Q4 2024 earnings call transcript was found in our document repository; themes reflect press releases.

Topic	Previous Mentions (Q2 & Q3 2024)	Current Period (Q4 2024)	Trend
PendoTECH OEM	Expected ~$6M y/y decline in 2024; significant q/q step-down in 2H	2024 sales $2.7M; 2025 may be ~$2.0M lower	Continuing headwind into 2025
China BPM Distributor	4Q 2024 shipments scheduled ~$1.2M lower; 2Q y/y lower due to prior-year extra shipment	No Q4 shipments; Ireland revenue -$1,587k y/y; 2025 fixed order slightly higher	Q4 trough; modest 2025 rebound
Filshie Clip System	Assumed flat at start of year; turned lower in 1H/3Q	WW Filshie -12% in 2024; OUS Filshie expected higher in 2025	Stabilization expected
Margins & Cost Actions	Maintained GP margin via labor/productivity/cost cuts; CSI IIA amortization ended, aiding OI margin	GP margin resilient; operating margin flat y/y; closed second manufacturing shift	Discipline sustained
Litigation & Legal	Higher litigation expense diluted OI margins	2024 litigation $2,139k; Q4 down vs prior year; trials could spike costs	Risk persists
FX Impact	Minimal net effects; GBP/EUR favorable in 3Q	Negligible in Q4; mix shift mattered more	Neutral

Management Commentary

On cost actions and margins: “UTMD was nevertheless able to maintain its GP margin in 2024 by reducing manufacturing personnel, including closing down the second production shift in Utah.”
On operating margin drivers: “UTMD’s Operating Income margin was essentially the same in both years... [due to] the final 2023 $3,684 G&A expense from amortization of the $21 million identifiable intangible asset… which was zero in 2024, offset [by] slightly lower GP margin and higher litigation expenses.”
On 2025 revenue outlook: “UTMD expects total WW consolidated revenues are likely to be lower again, in the low to mid-single percentage digits relative to 2024.”
On capital allocation: “The Company retains the strong desire and financial ability for repurchasing its shares at a price it believes is attractive for remaining stockholders.”

Q&A Highlights

No Q4 2024 earnings call transcript was found; no Q&A highlights available from primary sources.

Estimates Context

Consensus (S&P Global Capital IQ) for Q4 2024 EPS and Revenue was unavailable at time of retrieval due to API limits/coverage. Actuals: revenue $9,157k and EPS $0.857 .
Implication: In the absence of published consensus, investor focus should anchor on sequential trends (Q3→Q4) and the 2025 revenue outlook rather than a beat/miss framework.

Note: Consensus values were not available from S&P Global at the time of analysis.

Key Takeaways for Investors

Revenue still searching for a bottom; 2025 guide points to another low‑to‑mid single‑digit decline, with PendoTECH and China BPM dynamics the primary swing factors .
Margin resilience is the differentiator: operating margin held 32% and adjusted EBITDA margin ~48% in Q4 despite volume pressure—evidence of structural cost discipline and mix management .
Capital returns are supportive near‑term: sizable buybacks (~8% of shares in 2024) and a dividend increase should underpin per‑share metrics and downside protection .
Legal overhang remains: while Q4 litigation expense eased vs prior year, trial risk could drive episodic spikes in 2025; monitor case trajectory and management updates .
Watch for OUS recovery signals: regulatory approvals and restored distributor ordering (especially China BPM and OUS Filshie) are critical to stabilizing top line in 2H 2025 .
Liquidity and fortress balance sheet (no debt, $82.976M cash & investments) offer flexibility for continued buybacks or opportunistic investments during the transition .
Trading stance: near‑term centered on delivery vs the cautious 2025 revenue outlook and any updates on OEM orders/regulatory timing; medium‑term thesis hinges on Filshie/OUS normalization and sustaining high-30s+ NI margins .

Citations: All quantitative and qualitative data above sourced from UTMD’s Q4 2024 8‑K/press release and prior quarter 8‑Ks: -, -, -.

UTAH MEDICAL PRODUCTS INC (UTMD)·Q4 2024 Earnings Summary