UTMD

SALT LAKE CITY, UT / ACCESS Newswire / October 22, 2026 / Utah Medical Products, Inc. (NASDAQ:UTMD) reports third quarter (3Q) and first nine months (9M) of calendar year 2026 financial results that include changes from the prior year's same period results. Currencies in this release are denoted as $ or USD = U.S. Dollars; AUD = Australia Dollars; £ or GBP = UK Pound Sterling; C$ or CAD = Canadian Dollars; and € or EUR = Euros. Currency amounts throughout this report are in thousands, except per share amounts and where noted. Overview of Results The following is a summary comparison of 3Q and 9M of calendar 2026 with 3Q and 9M 2025 income statement measures: 2026 to 2025 Comparison | | 3Q (July-September) | | | 9M (January-September) | Revenues (Sales): | | | (12 | %) | | | (12 | %) Gross Profit (GP): | | | (14 | %) | | | (11 | %) Operating Income (OI): | | | + 7 | % | | | (11 | %) Income Before Tax (EBT): | | | + 3 | % | | | (10 | %) Net Income (NI): | | | + 6 | % | | | ( 7 | %) Earnings Per Share (EPS): | | | + 7 | % | | | ( 5 | %) In brief, consolidated total 3Q 2026 revenues were $1,191 (12.1%) lower than in 3Q 2025, and 9M 2026 revenues were $3,602 (12.1%) lower than in 9M 2025. The lower sales in comparison with the prior year's periods were substantially a result of a lack of any 2026 sales to UTMD's two previously largest customers, PendoTECH, a supplier of control devices to biopharm manufacturing companies, and UTMD's distributor of disposable blood pressure monitoring (BPM) transducer kits in China. Those two lost customers in 2026 represented a combined $491 in 3Q 2025 sales, and a combined $2,419 in 9M 2025 sales. Partly offsetting the PendoTECH lost sales, UTMD realized $116 in 3Q 2026 sales, and $327 in 9M 2026 sales, to new biopharm customers. However, the 2026 growth in new biopharm sales has been slower than expected. Also, UTMD realized $195 in 3Q 2026 sales to a new China BPM kit distributor for the first time since losing the prior distributor a year ago. This distributor might eventually match the prior distributor's demand. There was also an accelerated decline in worldwide (WW) sales of the Filshie Clip System (Filshie) in 3Q 2026, which were $805 (32.7%) lower than in 3Q 2025. The poor 3Q Filshie sales caused 9M 2026 Filshie sales to be $1,194 (15.7%) lower than in 9M 2025. On the other hand, Femcare Ltd, UTMD's subsidiary in the UK which developed the Filshie Clip System, acquired Orion Medical Supplies Ltd in the UK at the end of August 2026, which added $619 in 3Q 2026 sales. Changes in period-to-period foreign currency exchange rates had less than a one percentage point impact on USD sales: 3Q 2026 sales were $14 lower, and 9M 2026 sales were $170 higher, than would have been the case with the same exchange rates in 2025. Further details about UTMD's period-to-period sales comparisons are provided later in this press release, and will also be explained in UTMD's public 3Q 2026 SEC 10-Q disclosure in November. UTMD's profit margins compared to those of the prior year's same periods follow: | | 3Q 2026 (Jul - Sep) | | | 3Q 2025 (Jul - Sep) | | | 9M 2026 (Jan - Sep) | | | 9M 2025 (Jan - Sep) | Gross Profit Margin (GP/ sales): | | | 56.10 | % | | | 57.10 | % | | | 57.50 | % | | | 56.80 | % Operating Income Margin (OI/ sales): | | | 32.40 | % | | | 26.60 | % | | | 31.00 | % | | | 30.40 | % Income B4 Tax Margin (EBT/ sales): | | | 39.50 | % | | | 33.70 | % | | | 38.10 | % | | | 37.30 | % Net Income Margin (NI/ sales): | | | 32.30 | % | | | 26.80 | % | | | 31.20 | % | | | 29.60 | % UTMD's Gross Profit (GP) margin in 3Q 2026 was $764 lower than in 3Q 2025 as a result of lower sales without proportionally lowering consolidated manufacturing direct labor and overhead costs. The 9M 2026 GPM however, benefitted in contrast to 9M 2025, from not having the $2,058 very low GPM sales to UTMD's China distributor of BPM kits. Despite lower 3Q 2026 GP, Operating Income (OI) in 3Q 2026 improved due mainly to only $228 in combined litigation expense and intangible asset amortization (IIA) expense, which are included in G&A operating expenses, compared to $920 in 3Q 2025. The 15-year amortization of Femcare identifiable assets was completed in 1Q 2026. In 9M 2026, combined litigation and IIA amortization expenses were $925 lower than in 9M 2025. Non-operating income in 3Q 2026 and 9M 2026 was $92 and $183 lower than in the same 2025 periods, respectively, due to lower interest rates on UTMD's cash deposits. A two-percentage point lower estimated average income tax provision rate helped to decrease the 9M period percentage decline in Net Income (NI), and allowed about a 6% increase in 3Q 2026 Net Income relative to 3Q 2025. Please see the financial statements on the last page of this report. UTMD's September 30, 2026 Balance Sheet continued strong, with no debt. Ending Cash and Investments were slightly less at $85.2 million compared to $85.8 million on December 31, 2025, after year-to-date paying $3.0 million in cash dividends to stockholders, repurchasing $0.9 million of UTMD common stock, purchasing Orion Medical Supplies Ltd for $5.0 million including legal fees and duties, and making other plant and equipment capital expenditures of $0.5 million, as funded by continued profitable operations. Revenues (sales) -3Q 2026 Total consolidated 3Q 2026 UTMD worldwide (WW) sales in USD terms were $8,621 compared to $9,812 in 3Q 2025. Consistent with UTMD's SEC 10-K Report at the beginning of the year, 1) sales of biopharma pressure monitoring devices and accessories to UTMD's previously largest OEM customer, PendoTECH, were zero in 3Q 2026, which were $96 in 3Q 2025 domestic OEM sales, and 2) sales of blood pressure monitoring (BPM) kits to UTMD's previously largest distributor outside the U.S. (OUS) located in China were also zero, which were $395 in international sales in 3Q 2025. The combined sales to those two entities, which were zero in 3Q 2026, were $491 in 3Q 2025 and $1,082 in 3Q 2024. Offsetting the $395 lost sales to the prior China distributor were $195 3Q sales to a new China distributor. Domestic sales are invoiced in USD and obviously not subject to foreign currency conversion (FX) rate fluctuations. The components of domestic sales include 1) "direct non-Filshie device sales" of UTMD's medical devices to user facilities (and med/surg stocking distributors for hospitals), 2) "OEM sales" of components and other products manufactured by UTMD for other medical device and non-medical device companies, and 3) "domestic Filshie device sales". UTMD separates domestic Filshie device sales from other medical device sales direct to medical facilities because UTMD is simply a distributor for Femcare in the U.S. In the aggregate, 3Q 2026 domestic sales were 16.1% lower, at just $4,917 compared to $5,859 in 3Q 2025. Total domestic OEM sales at $677 were $41 higher than in 3Q 2025, including new domestic OEM biopharma customer sales which were $66 higher. Domestic sales of the Filshie Clip System at $656 in 3Q 2026 were $534 lower than in 3Q 2025, a weak quarter following stronger sales in first half (1H) 2026 compared to 1H 2025. Domestic direct sales of other devices in 3Q 2026 were $449 lower than in 3Q 2025, about 64% of which were due to lower neonatal device sales. OUS sales in 3Q 2026 were $249 (6.3%) lower at $3,704 compared to $3,953 in 3Q 2025. Net of the lost previous China distributor and the new distributor, BPM kit sales to China were $200 lower. OUS Filshie device sales were $271 lower. Orion Medical contributed $619 in new sales. In 3Q 2026, 50% of OUS sales were direct to medical facilities located in Ireland, the UK, France, Canada, Australia and New Zealand, compared to 37% in 3Q 2025. The difference was due to the $619 addition of Orion Medical sales in the UK, net of OUS direct Filshie device sales which were $230 (21.8%) lower. OUS direct to end-user sales are invoiced in foreign currencies. UTMD's Form SEC 10-Q for 3Q 2026, which will be filed in November, will provide further 3Q revenue segmentation details. The foreign currency exchange (FX) impact, the conversion to USD effect of difference in FX rates in 3Q 2026 compared to 3Q 2025, reduced 3Q 2026 sales by $14 compared to 3Q 2025. OUS sales invoiced in foreign currencies, which included Orion Medical Supplies for the first time, in USD terms, were 32% of total WW consolidated 3Q 2026 sales compared to 29% in 3Q 2025. The average USD FX rates decreased 3Q 2026 total consolidated sales $14 for sales invoiced in foreign currencies. FX rates for income statement purposes are transaction-weighted averages. The average FX rates from the applicable foreign currency to USD during 3Q 2026 and 3Q 2025 for revenue purposes follow: | | 3Q 2026 | | | 3Q 2025 | | | Change | GBP | | | 1.3427 | | | | 1.3485 | | | | (0.4 | %) EUR | | | 1.1514 | | | | 1.1748 | | | | (2.0 | %) AUD | | | 0.7051 | | | | 0.6548 | | | | +7.7 | % CAD | | | 0.7154 | | | | 0.7256 | | | | (1.4 | %) The $14 weighted average unfavorable impact on 3Q 2026 consolidated sales was negligible, about 0.2%. In constant currency terms, foreign currency sales in 3Q 2026 in USD terms were 24.0% lower than in 3Q 2025, excluding Orion. "Constant currency" sales means exchanging foreign currency sales into USD-denominated sales at the same FX rate as was in the previous period of time being compared. Sales -9M 2026 Total consolidated 9M 2026 UTMD worldwide (WW) sales in USD terms were 12.2% lower at $25,873 compared to $29,474 in 9M 2025. Sales of biopharma pressure monitoring devices and accessories to UTMD's previously largest OEM customer, PendoTECH, were zero in 9M 2026, compared to $360 in 9M 2025, all in domestic OEM sales. Offsetting that loss were new WW biopharma customer sales in 9M 2026 that were $253 higher than in 9M 2025. Sales of BPM kits to UTMD's previously largest distributor OUS located in China were also zero in 9M 2026, compared to $2,058 in OUS sales in 9M 2025. (This included $395 in 3Q 2025 revenue which was written off in 3Q 2026 G&A expenses as uncollectible.) Offsetting that China BPM revenue loss was $195 in 3Q sales, the first sales of BPM kits to a new China distributor. The combined 9M 2026 sales to those previous two lost customers netted with new replacement sales were $1,863 lower in 9M 2026 compared to 9M 2025, representing 52% of the $3,602 lower sales in 9M 2026. WW Filshie device sales in 9M 2026 were $1,194 (15.7%) lower than in 9M 2025. WW NICU device sales in 9M 2026 were $1,105 (17.7%) lower than in 9M 2025. Domestic sales are invoiced in USD and obviously not subject to foreign currency conversion (FX) rate fluctuations. The components of domestic sales include 1) "direct non-Filshie device sales" of UTMD's medical devices to user facilities (and med/surg stocking distributors for hospitals), 2) "OEM sales" of components and other products manufactured by UTMD for other medical device and non-medical device companies, and 3) "domestic Filshie device sales". UTMD separates domestic Filshie device sales from other medical device sales direct to medical facilities because UTMD is simply a distributor for Femcare in the U.S. In the aggregate, 9M 2026 domestic sales were $1,664 (9.6%) lower, at $15,644 compared to $17,308 in 9M 2025. Domestic Filshie device sales in 9M 2026 were $305 (9.1%) lower than in 9M 2025, and all other domestic direct device sales $1,357 (11.3%) lower. In product categories, domestic NICU device sales were 18% lower, and all other categories excluding Filshie clip devices were 6-8% lower. Domestic OEM sales were about the same in both periods. OUS sales in 9M 2026 were $1,938 (15.9%) lower at $10,229 compared to $12,167 in 9M 2025. Excluding the $1,863 lower sales to UTMD's former China distributor (minus new sales to another distributor) mentioned above, 9M 2026 OUS sales were $75 (0.6%) lower than in 2025. In 9M 2026, 44% of OUS sales were direct to medical facilities located in Ireland, the UK, France, Canada, Australia and New Zealand, compared to 37% in 9M 2025. The difference was essentially due to September 2026 Orion Medical sales which were 6% of 9M 2026 OUS sales. OUS direct to end-user sales are invoiced in foreign currencies. The portion of OUS sales invoiced in foreign currencies in USD terms was 28% of total WW consolidated 9M 2026 sales compared to 30% in 9M 2025. The average USD FX rates increased 9M 2026 total consolidated sales $170 for sales invoiced in foreign currencies. FX rates for income statement purposes are transaction-weighted averages. The average FX rates from the applicable foreign currency to USD during 9M 2026 and 9M 2025 for revenue purposes follow: | 9M 2026 | | | 9M 2025 | | | Change | | | | | GBP | | | | 1.3444 | | | | 1.3144 | | | | + 2.3 | % | EUR | | | | 1.1577 | | | | 1.1333 | | | | + 2.2 | % | AUD | | | | 0.7046 | | | | 0.6396 | | | | +10.1 | % | CAD | | | | 0.7226 | | | | 0.7144 | | | | + 1.1 | % The $170 weighted average favorable impact on 9M 2026 consolidated sales was 0.7%. In 4Q 2025 and 4Q 2024, the two former customers with zero combined sales in 2026 were just $35 and $338, so UTMD does not expect the same negative comparisons with the past in 4Q 2026. Looking forward, UTMD expects the combined 4Q 2026 replacement sales to be higher than in both former 4Q periods. Although sales to other biopharma OEM customers in 2026 have not developed as soon as projected at the beginning of the year, finding a replacement China distributor for BPM kits and the acquisition of Orion Medical was also not projected. Management's current year 2026 sales projection, with continued uncertainty, is a total year 2026 consolidated sales decline close to 7%, in contrast to the 12% year-to-date actual decline in 9M 2026 compared to 9M 2025. Gross Profit (GP) GP results from subtracting the cost of goods sold (CGS), comprised of costs of production including direct labor, manufacturing engineering, depreciation of equipment, maintenance and repairs, quality assurance including regulatory compliance, and purchasing including freight for receiving materials from suppliers, from revenues. CGS is divided into three categories: direct labor, raw materials and manufacturing overhead (MOH). Direct labor and raw materials are predominantly variable costs, i.e. vary directly with revenues. MOH contains many fixed costs consistent with the Company's infrastructure, for example, supervision, quality assurance and engineering personnel, and depreciation of fixed assets. UTMD's 3Q 2026 Gross Profit margin (GPM) was lower than in 3Q 2025 because WW trade shipments were lower while the Company retained the same previous labor and overhead staffing that it previously had in order to support the anticipated substantial new growth in biopharma control device manufacturing. UTMD Ltd in Ireland is also the manufacturer and supplier of the Filshie Clip System to all UTMD subsidiaries worldwide, so lower intercompany Filshie sales also contributed to the lower consolidated 3Q GPM. In contrast, UTMD's consolidated 9M 2026 GPM was higher than in 9M 2025, as expected, due to a more favorable product mix without $2,058 low GP sales to the former China distributor. More specifically, 3Q 2026 GP was $764 (13.6%) lower than in 3Q 2025 when sales were 12.1% lower. GP in 9M 2026 was $1,857 (11.1%) lower than in 9M 2025 when sales were 12.2% lower. The consolidated 3Q 2026 GPM was 56.1% compared to 57.1% in 3Q 2025. The consolidated 9M 2026 GPM was 57.5% compared to 56.8% in 9M 2025. Operating Income (OI) OI results from subtracting Operating Expenses (OE) from GP. OE are comprised of Sales and Marketing (S&M) expenses, General and Administrative (G&A) expenses and Product Development (R&D) expenses. The lower GPM in 3Q 2026 on 12% lower sales compared to 3Q 2025 was offset by $181 lower litigation expenses and the beneficial impact of Femcare IIA amortization expense in 3Q 2026 that was $511 lower than in 3Q 2025. Consolidated OI of $2,795 was $183 (+7.0%) higher compared to 3Q 2025 OI of $2,612. UTMD's 3Q 2026 OI margin (OI as a percentage of sales) increased to 32.4% of sales from 26.6% of sales in 3Q 2025. OI in 9M 2026 was $8,009 compared to $8,961 in 9M 2025, a $952 (10.6%) decrease, although with a higher OI margin of 31.0% compared to 30.4% in 9M 2025. The lower 9M OI was the result of 11.1% lower GP despite a higher GPM compared to 9M 2025. The following table summarizes OE in 3Q and 9M 2026 compared to the same periods in 2025 by OE category: OE Category | | | 3Q 2026 | | | % of sales | | | | 3Q 2025 | | | % of sales | | | | 9M 2026 | | | % of sales | | | | 9M 2025 | | | % of sales | S&M: | | $ | 529 | | | | 6.1 | | | $ | 516 | | | | 5.3 | | | $ | 1,574 | | | | 6.1 | | | $ | 1,540 | | | | 5.2 | G&A: | | | 1,374 | | | | 16.0 | | | | 2,310 | | | | 23.5 | | | | 4,847 | | | | 18.7 | | | | 5,780 | | | | 19.6 | R&D: | | | 142 | | | | 1.6 | | | | 167 | | | | 1.7 | | | | 450 | | | | 1.8 | | | | 457 | | | | 1.6 | Total OE: | | | 2,045 | | | | 23.7 | | | | 2,993 | | | | 30.5 | | | | 6,871 | | | | 26.6 | | | | 7,777 | | | | 26.4 | Consolidated S&M expenses as a percentage of sales were higher primarily due to lower sales. The impact of differences in FX rates on foreign subsidiary S&M expenses added $2 in 3Q 2026 and $12 in 9M 2026. Excluding the FX rate impact, consolidated S&M expenses were slightly higher due to higher trade show expenses in the U.S. and higher salary expenses OUS. G&A expenses dominate UTMD's OE, largely because of expenses of U.S. Filshie litigation and the non-cash expenses from the amortization of Identifiable Intangible Assets (IIA) associated with the acquisition of the Filshie Clip System in 2011 which were fully-amortized as of 1Q 2026, and initial 3Q 2026 IIA amortization expense for the Orion acquisition. A segmentation of USD-denominated G&A expenses follows: G&A Exp Category | | | 3Q 2026 | | | % of sales | | | | 3Q 2025 | | | % of sales | | | | 9M 2026 | | | % of sales | | | | 9M 2025 | | | % of sales | IIA Amort- UK: | | $ | 25 | | | Orion | | | $ | 536 | | | | 5.5 | | | $ | 483 | | | | 1.9 | | | $ | 1,568 | | | | 5.3 | Other- UK: | | | 411 | | | | | | | 176 | | | | | | | | 814 | | | | | | | | 555 | | | | | U.S. Litigation | | | 203 | | | | 2.4 | | | | 389 | | | | 4 | | | | 1,137 | | | | 4.4 | | | | 977 | | | | 3.3 | Other- US: | | | 557 | | | | 6.5 | | | | 667 | | | | 6.8 | | | | 1,883 | | | | 7.3 | | | | 1,864 | | | | 6.3 | IRE: | | | 91 | | | | | | | | 96 | | | | | | | | 281 | | | | | | | | 268 | | | | | IRE- China B/D | | | - | | | | | | | | 395 | | | | 4 | | | | | | | | | | | | 395 | | | | 1.3 | AUS: | | | 49 | | | | | | | | 20 | | | | | | | | 134 | | | | | | | | 54 | | | | | CAN: | | | 38 | | | | | | | | 31 | | | | | | | | 115 | | | | | | | | 100 | | | | | Total G&A: | | | 1,374 | | | | 16 | | | | 2,310 | | | | 23.5 | | | | 4,847 | | | | 18.7 | | | | 5,780 | | | | 19.6 | Total consolidated G&A expenses in 3Q 2026 were $936 lower than in 3Q 2025 from a number of differences. In 3Q 2025, UTMD wrote off an uncollectible receivable from its terminated China distributor, which was a one-time G&A expense. The $536 UK IIA amortization expense in 3Q 2025 was for Femcare IIA, which was zero in 3Q 2026. The $25 UK IIA amortization expense in 3Q 2026 was the initial amortization for the Orion acquisition which was zero in 3Q 2025. The higher other UK expenses in 3Q 2026 were the result of the Orion acquisition expenses and adding Orion G&A expense for the month of September. U.S. litigation expenses in 3Q 2026 were $186 lower than in 3Q 2025. In 9M 2026, except for U.S. litigation expense, U.S. G&A expenses were about the same as in 9M 2025, but with lower sales, the U.S. G&A percentage of sales increased a full percentage point. The largest difference was $1,085 less IIA amortization expense as the Femcare IIA amortization was completed in 1Q 2026. Foreign currency G&A expenses expressed in USD were decreased by FX rate differences by $4 in 3Q 2026 and increased by $58 in 9M 2026. In 9M 2026, $30 of the $58 higher G&A expense FX impact was due to the final non-cash identifiable intangible asset (IIA) amortization-UK expense in 1Q 2026 which resulted from the 2011 acquisition of Femcare. Regarding litigation expense looking forward, in two of the remaining four courts (out of nineteen), cases will apparently be going to trial in 2027. The other two remain waiting for decisions on summary judgment motions. The differences in period-to-period R&D expenses were due to varying project costs and increases in salaries for the same number of people. Since all new product development work in 2026 was carried out in the U.S., there was no FX rate impact. Stronger OUS currencies for 9M 2026 increased operating expenses (OE) by $70, of which $30 was due to the remaining IIA amortization of Femcare IIA. In contrast, a favorable impact of differing FX rates in 3Q 2026 compared to 3Q 2025 reduced consolidated OE by $2. The AUD was the primary stronger currency. Income Before Tax (EBT) EBT results from subtracting net non‑operating expense (NOE) or adding net non-operating income (NOI) from or to, as applicable, OI. Consolidated 3Q 2026 EBT was $3,401 (39.5% of sales) compared to $3,309 (33.7% of sales) in 3Q 2025. Consolidated 9M 2026 EBT was $9,870 (38.1% of sales) compared to $11,004 (37.3% of sales) in 9M 2025. NOE/NOI includes the combination of 1) expenses from loan interest and bank fees; 2) expenses or income from losses or gains from remeasuring the value of EUR cash bank balances in the UK, and GBP cash balances in Ireland, in USD terms on September 30, 2026; and 3) income from rent of underutilized property, investment income and royalties received from licensing the Company's technology. Starting in 2024 for UTMD, there has been an additional excise tax included in UTMD's NOE: a stock repurchase 1% excise tax enacted in the so-called "Inflation Reduction Act of 2022". The price of shares repurchased in 3Q 2026 and 9M 2026 was $699 and $905 respectively. Shares repurchased in 3Q 2025 and 9M 2025 were $653 and $7,362 respectively. The cumulative excise tax on share repurchases since 2024 has been $292. Net NOI is NOI minus NOE. Net NOI in 3Q 2026 was $606 compared to $698 in 3Q 2025. Net NOI in 9M 2026 was $1,860 compared to $2,043 in 9M 2025. The lower NOI in both periods was essentially due to lower interest rates. Remeasured foreign currency balances generated about $8 less in net NOE in 9M 2026 compared to 9M 2025. EBITDA is a non-US GAAP metric that measures profitability performance without factoring in effects of financing, accounting decisions regarding non-cash expenses, capital expenditures or tax environments. Management believes that this operating performance metric provides meaningful supplemental information to both management and investors and confirms UTMD's ongoing excellent financial operating performance, as well as its ability to sustain high level financial performance during a challenging time. Excluding the noncash effects of depreciation, amortization of intangible assets and stock option expense, 3Q 2026 consolidated EBT excluding the remeasured bank balance currency gain or loss ("adjusted consolidated EBITDA") was $3,735 (43.3% of sales) compared to $4,170 (42.5% of sales) in 3Q 2025. Adjusted consolidated EBITDA was $11,303 (43.7% of sales) in 9M 2026 compared to $13,493 (45.8% of sales) in 9M 2025. The lower EBITDA in 3Q 2026 compared to 3Q 2025 was due to the lack of IIA amortization. The lower 9M 2026 EBITDA compared to 9M 2025 was due to lower EBT, accentuated by lower IIA amortization expense in 9M 2026. Adjusted consolidated trailing twelve months' (TTM) EBITDA was $15,269 as of September 30, 2026. UTMD's non-US GAAP adjusted consolidated EBITDA is the sum of the elements in the following table, each element of which is a US GAAP number: | | | 3Q 2026 | | | | 3Q 2025 | | | | 9M 2026 | | | | 9M 2025 | EBT | | $ | 3,401 | | | $ | 3,309 | | | $ | 9,870 | | | $ | 11,004 | Depreciation Expense | | | 217 | | | | 209 | | | | 638 | | | | 614 | Femcare IIA Amortization ExpenseOrion IIA Amortization Expense | | | -25 | | | | 536- | | | | 45825 | | | | 1,568- | Other Non-Cash Amortization Expense | | | 12 | | | | 8 | | | | 31 | | | | 25 | Stock Option Compensation ExpenseInterest Expense | | | 77- | | | | 95- | | | | 269- | | | | 262- | Remeasured Foreign Currency Balances | | | 3 | | | | 13 | | | | 12 | | | | 20 | UTMD non-US GAAP EBITDA: | | $ | 3,735 | | | $ | 4,170 | | | $ | 11,303 | | | $ | 13,493 | Net Income (NI) NI in 3Q 2026 of $2,787 (32.3% of sales) was 5.9% higher than the NI of $2,631 (26.8% of sales) in 3Q 2025. The $156 higher 3Q 2026 NI was due to $183 higher OI combined with $92 lower net NOI, and a two-percentage point lower estimated average income tax provision rate. The average consolidated income tax provision rate (as a % of the same period EBT) in 3Q 2026 was 18.1% compared to 20.5% in 3Q 2025. NI in 9M 2026 of $8,077 (31.2% of sales) was 7.4% lower than the NI of $8,720 (29.6% of sales) in 9M 2025. The $643 lower 9M 2026 NI was due to $951 lower OI combined with $183 lower net NOI, and a lower estimated average income tax provision rate. The average consolidated income tax provision rate (as a % of the same period EBT) in 9M 2026 was 18.2% compared to 20.8% in 9M 2025. The consolidated income tax provision rate varies as the mix in taxable income among U.S. and foreign subsidiaries with differing income tax rates differs from period to period. The basic corporate income tax rates in each of the sovereignties were the same as in the prior year. Earnings per share (EPS) Diluted EPS in 3Q 2026 were $0.876 compared to diluted EPS of $0.820 in 3Q 2025, a 6.8% increase. Diluted EPS in 9M 2026 were $2.537 compared to diluted EPS of $2.680 in 9M 2025, a 5.3% decrease. The 3Q percentage increase in EPS was higher than the 3Q increase in NI, and the 9M percentage decrease in EPS was lower than the 9M decrease in NI, as a result of fewer diluted shares. Diluted shares were 3,180,343 in 3Q 2026 compared to 3,207,490 in 3Q 2025. Diluted shares were 3,182,943 in 9M 2026 compared to 3,254,196 in 9M 2025. The lower diluted shares in both periods of 2026 were the result of shares repurchased during 9M 2026. Because the average exercise price of employee options was higher than the ending market price of the stock in both 3Q 2026 and 3Q 2025, the number of shares added as a dilution factor in both 3Q 2026 and 3Q 2025 were zero. The same was true for both 9M 2026 and 9M 2025. The number of shares used for calculating EPS in both years was higher than period-ending outstanding shares because of a time-weighted calculation of average outstanding shares. Outstanding shares at the end of 3Q 2026 were 3,175,006 compared to 3,186,221 at the end of calendar year 2025. The difference was due to 13,403 shares repurchased in 9M 2026, and 2,188 employee option exercises. Shares repurchased in 3Q 2026 were 10,000 at an average price of $69.88. Shares repurchased in 9M 2026 were 13,403 at an average price of $67.51. The total cost of repurchasing shares in 9M 2026 was $905 plus a 1% excise tax. Outstanding shares were 3,204,172 at the end of 3Q 2025. Outstanding shares at the end of calendar 2024 were 3,335,156. The total cost of repurchasing 464,299 shares in the eleven calendar quarters since the end of 2023 at an average cost of $62.95/ share was $29,228 plus a 1% federal excise tax. The Company retains the strong desire and financial ability for repurchasing its shares at a price it believes is attractive for remaining stockholders. The total number of outstanding unexercised employee and outside director options at September 30, 2026 was 106,285 at an average exercise price of $70.17, including shares awarded but not yet vested. This compares to 97,511 unexercised option shares at the end of 3Q 2025 at an average exercise price of $73.75/ share, including shares awarded but not vested. No employee options have been awarded in 2026. Non-qualified option awards totaling 13,800 shares were made to 40 employees in October 2025 at an exercise price of $58.10. UTMD paid $987 ($0.310/share) in dividends to stockholders in 3Q 2026 compared to $988 ($0.305/ share) paid in 3Q 2025. The dividends paid to stockholders during 3Q 2026 were 35% of NI. UTMD paid $2,963 ($0.310/share) in dividends to stockholders in 9M 2026 compared to $3,006 ($0.305/ share) paid in 9M 2025. The dividends paid to stockholders during 9M 2026 were 37% of NI. UTMD's closing share price at the end of 3Q 2026 was $74.05 up 7.3% from the closing price of $68.98 at the end of 2Q 2026, and up 32.3% from the closing price of $55.96 at the end of 2025. The closing share price one year ago at the end of 3Q 2025 was $62.97. Balance Sheet. At September 30, 2026 compared to the end of 2025, UTMD's cash and investments balance decreased only $554 to $85,202 despite use of $905 cash for share repurchases, $2,963 cash for dividends to stockholders, $500 cash for capital equipment purchases and $5,011 cash for the acquisition of Orion Medical Supplies including legal costs and stamp duties. At September 30, 2026, net Intangible Assets increased to 13.9% of total consolidated assets from 12.2% on December 31, 2025 as a result of the Orion acquisition. UTMD's strong 21.2 current ratio at September 30, 2026 was lower than the 37.6 current ratio at December 31, 2025 as a result of higher current liabilities and lower cash. The average age of trade receivables was 41 days from date of invoice at September 30, 2026 compared to 35 days at December 31, 2025, based on the most recent calendar quarter of sales. Average inventory turns declined to 1.6 in 3Q 2026 compared to 2.0 for the last quarter of 2025, as the Company intentionally increased WIP/FG goods inventory balances in order to keep productivity up during 9M 2026 lower sales activity. Overall inventories increased $2,636 since the end of 2025, and receivables increased $439. Ending 3Q 2026 current liabilities increased $2,142 from the end of 2025. Foreign currency exchange (FX) rates for Balance Sheet purposes are the applicable rates at the end of each reporting period. The FX rates from the applicable foreign currency to USD for assets and liabilities at the end of 3Q 2026 compared to the end of calendar year 2025 and the end of 3Q 2025 were as follows: | | | 9-30-26 | | | | 12-31-25 | | | Change | | | | 9-30-25 | | | Change | GBP | | | 1.32659 | | | | 1.34450 | | | | (1.3 | %) | | | 1.34420 | | | | (1.3 | %) EUR | | | 1.13437 | | | | 1.17344 | | | | (3.3 | %) | | | 1.17331 | | | | (3.3 | %) AUD | | | 0.69506 | | | | 0.66679 | | | | 4.2 | % | | | 0.66127 | | | | 5.1 | % CAD | | | 0.70365 | | | | 0.72914 | | | | (3.5 | %) | | | 0.71789 | | | | (2.0 | %) Financial ratios as of September 30, 2026 which may be of interest to stockholders follow: 1) Current Ratio = 21.2 2) Days in Trade Receivables (based on 3Q 2026 sales activity) = 41 3) Average Inventory Turns (based on 3Q 2026 CGS) = 1.6 4) 2026 YTD ROE (before dividends) = 9% Investors are cautioned that this press release contains forward looking statements and that actual events may differ from those projected. Risk factors that could cause results to differ materially from those projected include global economic conditions, market acceptance of products, regulatory approvals of products, regulatory intervention in current operations, government intervention in healthcare and the economy in general such as tariffs, tax reforms, the Company's ability to efficiently manufacture, market and sell products, cybersecurity and foreign currency exchange rates, among other factors that have been and will be outlined in UTMD's public disclosure filings with the SEC. Utah Medical Products, Inc., with particular interest in health care for women and their babies, develops, manufactures and markets a broad range of disposable and reusable specialty medical devices recognized by clinicians in over one hundred countries around the world as the standard for obtaining optimal long-term outcomes for their patients. For more information about Utah Medical Products, Inc., visit UTMD's website at www.utahmed.com. Utah Medical Products, Inc. INCOME STATEMENT, Third Quarter (three months ended September 30) (in thousands except earnings per share): | | | 3Q 2026 | | | | 3Q 2025 | | | Percent Change | Net Sales | | $ | 8,621 | | | $ | 9,812 | | | | (12.1 | %) Gross Profit | | | 4,840 | | | | 5,604 | | | | (13.6 | %) Operating Income | | | 2,795 | | | | 2,611 | | | | +7.0 | % Income Before Tax | | | 3,401 | | | | 3,309 | | | | +2.8 | % Net Income (US GAAP) | | | 2,787 | | | | 2,631 | | | | +5.9 | % Earnings Per Share (US GAAP) | | $ | 0.876 | | | $ | 0.820 | | | | +6.8 | % Shares Outstanding (diluted) | | | 3,180 | | | | 3,207 | | | | | INCOME STATEMENT, First Nine Months (nine months ended September 30) (in thousands except earnings per share): | | | 9M 2026 | | | | 9M 2025 | | | Percent Change | Net Sales | | $ | 25,873 | | | $ | 29,475 | | | | (12.2 | %) Gross Profit | | | 14,880 | | | | 16,737 | | | | (11.1 | %) Operating Income | | | 8,009 | | | | 8,961 | | | | (10.6 | %) Income Before Tax | | | 9,870 | | | | 11,004 | | | | (10.3 | %) Net Income (US GAAP) | | | 8,077 | | | | 8,720 | | | | ( 7.4 | %) EPS (US GAAP) | | $ | 2.537 | | | $ | 2.680 | | | | ( 5.3 | %) Shares Outstanding (diluted) | | | 3,183 | | | | 3,254 | | | | | BALANCE SHEET (in thousands) | | (unaudited)SEP 30, 2026 | | | (unaudited)JUN 30, 2026 | | | (audited)DEC 31, 2025 | | | (unaudited)SEP 30, 2025 | Assets | | | | | | | | | | | | Cash & Investments | | $ | 85,202 | | | $ | 87,528 | | | $ | 85,756 | | | $ | 84,267 | Accounts & Other Receivables, Net | | | 3,961 | | | | 3,565 | | | | 3,522 | | | | 3,725 | Inventories | | | 10,571 | | | | 9,003 | | | | 7,935 | | | | 8,118 | Other Current Assets | | | 898 | | | | 543 | | | | 529 | | | | 422 | Total Current Assets | | | 100,632 | | | | 100,639 | | | | 97,742 | | | | 96,532 | Property & Equipment, Net | | | 10,024 | | | | 9,631 | | | | 9,908 | | | | 10,000 | Intangible Assets, Net | | | 17,845 | | | | 14,302 | | | | 14,892 | | | | 15,443 | Total Assets | | $ | 128,501 | | | $ | 124,572 | | | $ | 122,542 | | | $ | 121,975 | Liabilities & Stockholders' Equity | | | | | | | | | | | | | | | | Accounts Payable | | $ | 1,683 | | | $ | 876 | | | $ | 911 | | | $ | 768 | Other Accrued Liabilities | | | 3,057 | | | | 1,194 | | | | 1,687 | | | | 2,243 | Total Current Liabilities | | $ | 4,740 | | | $ | 2,070 | | | $ | 2,598 | | | $ | 3,011 | Deferred Tax Liability - Intangible Assets | | | - | | | | - | | | | 114 | | | | 248 | Long Term Lease Liability | | | 180 | | | | 195 | | | | 225 | | | | 241 | Deferred Revenue and Income Taxes | | | 303 | | | | 274 | | | | 337 | | | | 223 | Stockholders' Equity | | | 123,278 | | | | 122,033 | | | | 119,268 | | | | 118,252 | Total Liabilities & Stockholders' Equity | | $ | 128,501 | | | $ | 124,572 | | | $ | 122,542 | | | $ | 121,975 | SOURCE: Utah Medical Products, Inc. View the original press release on ACCESS Newswire

Shares of Utah Medical Products, Inc. UTMD have gained 2.6% since the company reported its earnings for the quarter ended June 30, 2026. This compares to the S&P 500 index’s 1.4% decline over the same time frame. Over the past month, the stock has gained 2.8% against the S&P 500’s 1.8% decrease. Utah Medical reported second-quarter 2026 diluted earnings per share (EPS) of 84.4 cents, which decreased 10.1% from 93.9 cents recorded in the prior-year quarter. Revenues of $8.5 million indicated a 14.3% decline from $10 million in the year-ago quarter. The decline was primarily due to the loss of sales from two previously largest customers, including PendoTECH and a China-based distributor, which contributed $1.1 million in combined sales in the prior-year quarter. Net income declined 11.9% year over year to $2.7 million. Utah Medical Products, Inc. price-consensus-eps-surprise-chart | Utah Medical Products, Inc. Quote UTMD’s second-quarter sales pressure was largely driven by the absence of revenue from two former major customers. Sales of biopharma pressure monitoring devices and accessories to PendoTECH were zero in the quarter compared with $0.2 million in the prior-year period, while sales of blood pressure monitoring kits to the company’s former China distributor also fell to zero from $0.9 million. The combined loss represented about three-fourths of the quarterly revenue decline. Domestic sales declined 11.9% year over year to $5.2 million, impacted by lower direct sales of other devices, particularly neonatal products, and weaker Filshie Clip System sales following an unusually strong first quarter. However, non-PendoTECH domestic OEM sales improved by $0.2 million, supported partly by higher sales to new domestic biopharma customers. Overseas sales declined 17.7% to $3.4 million, although excluding the lost China distributor business, international sales increased modestly. UTMD maintained solid profitability despite lower sales volumes. Gross profit declined 15% year over year to $4.8 million, while gross margin contracted slightly to 55.8% from 56.2%. Management attributed the margin pressure to lower-than-expected sales without a proportional reduction in manufacturing overhead costs. Operating income decreased 17.1% to $2.6 million, with operating margin remaining strong at 31.1%. The decline reflected higher litigation expenses, which increased by $0.2 million compared with the prior-year quarter. The company noted that litigation costs were elevated due to expert witness fees and other legal activities but expects these expenses to decline in the second half of 2026. Net income benefited from a lower estimated average income tax provision rate, which helped reduce the magnitude of the earnings decline. The tax rate fell to 18.3% from 20.5% in the prior-year quarter. UTMD continued to maintain a strong financial position, ending June 30, 2026, with no debt and cash and investments of $87.5 million compared with $85.8 million at the end of 2025. The company generated this improvement after paying dividends, repurchasing shares and investing in capital expenditures.Its current ratio remained robust at 48.6, while inventory increased as UTMD intentionally built work-in-process and finished goods inventory to maintain productivity during a period of weaker sales. Shares outstanding declined following limited repurchases during the first half of 2026. Management indicated that the previously expected recovery in lost revenue from new product sales, particularly from other biopharma OEM customers, has progressed more slowly than anticipated. New sales to other biopharma customers totaled only $0.2 million during the first half of 2026, below expectations. As a result, the company now expects full-year 2026 revenue to decline 10-13% compared with 2025, although management highlighted continued uncertainty around the outlook. UTMD continues to focus on developing new products and expanding customer relationships to offset lost revenue streams. Management expects litigation expenses for 2026 to remain below $1.6 million, though higher than its earlier estimate. During the quarter, UTMD continued its capital allocation efforts through dividends and share repurchases. The company paid $1 million in dividends during the second quarter and repurchased a limited number of shares. It also highlighted ongoing efforts to recover prior revenue losses through new product sales and expanded relationships with biopharma OEM customers. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Utah Medical Products, Inc. (UTMD): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SALT LAKE CITY, UT / ACCESS Newswire / July 23, 2026 / Utah Medical Products, Inc. (Nasdaq:UTMD) reports second calendar quarter (2Q) and first half (1H) 2026 financial results with a continued decline in overall revenues in comparison to the same time periods in 2025. Currencies in this release are denoted as $ or USD = U.S. Dollars; AUD = Australia Dollars; £ or GBP = UK Pound Sterling; C$ or CAD = Canadian Dollars; and € or EUR = Euros. Currency amounts throughout this report are in thousands, except per share amounts and where noted. Because of the relatively short span of time, results for any given three-month period in comparison with a previous three-month period may not be indicative of comparative results for the year as a whole. Overview of Results In brief, consolidated total 2Q 2026 revenues were $1,424 (14.3%) lower than in 2Q 2025, with 1H 2026 revenues $2,411 (12.3%) lower than in 1H 2025. The lower sales in comparison with the prior year's periods were primarily the result of a lack of sales to UTMD's two previously largest customers, representing a combined $1,065 loss in 2Q 2025 sales, which was 75% of the 2Q decline; and representing a combined $1,923 loss in 1H 2025 sales, which was 80% of the 1H decline. The total 2025 sales to these two former customers were $2,889, which UTMD planned to recover in sales of new products in 2026, mainly to other biopharma OEM customers. Sales to other biopharma new customers were just $211 in 1H 2026, a slower than expected gain. Additional period-to-period sales comparisons follow below. UTMD's profit margins compared to those of the prior year's same periods follow: Despite a more favorable sales mix relative to 2Q 2025, UTMD's Gross Profit (GP) margin in 2Q 2026 contracted somewhat as a result of lower sales than expected without proportionally lowering consolidated manufacturing overhead costs. Operating Income (OI) declined more than the GP decline due to $213 higher 2Q 2026 U.S. litigation costs compared to 2Q 2025, and $341 higher 1H 2026 litigation costs than in 1H 2025, which costs are included in Operating Expenses. Non-operating income in 2Q 2026 was about the same as in 2Q 2025, but $91 lower in 1H 2026 as a result of lower interest rates. A lower estimated average income tax provision rate helped to decrease the percentage period-to-period declines in Net Income (NI). Share repurchases during 1H 2026 were minimal compared to the 1H of 2025. Please see the financial statements on the last page of this report. UTMD's June 30, 2026 Balance Sheet continued strong, with no debt. Ending Cash and Investments were $87.5 million compared to $85.8 million on December 31, 2025, after paying $2.0 million in cash dividends to stockholders, repurchasing $0.2 million of UTMD common stock, increasing non-cash working capital by $1.7 million (including increasing inventories by $1.1 million while reducing current liabilities by $0.5 million) and investing $0.3 million in capital expenditures during 1H 2026. Revenues (sales) - 2Q 2026 Total consolidated 2Q 2026 UTMD worldwide (WW) sales in USD terms were $8,529 compared to $9,953 in 2Q 2025. Consistent with the projection in UTMD's SEC 10-K Report at the beginning of the year, 1) sales of biopharma pressure monitoring devices and accessories to UTMD's previously largest OEM customer, PendoTECH, were zero in 2Q 2026, which were $196 in 2Q 2025 domestic OEM sales, and 2) sales of blood pressure monitoring kits to UTMD's previously largest distributor outside the U.S. (OUS) located in China were also zero, which were $870 in international sales in 2Q 2025. The combined sales to those two entities, which were zero in 2Q 2026, were $1,066 in 2Q 2025 and $1,007 in 2Q 2024. Domestic sales are invoiced in USD and obviously not subject to foreign currency conversion (FX) rate fluctuations. The components of domestic sales include 1) "direct non-Filshie device sales" of UTMD's medical devices to user facilities (and med/surg stocking distributors for hospitals), 2) "OEM sales" of components and other products manufactured by UTMD for other medical device and non-medical device companies, and 3) "domestic Filshie device sales". UTMD separates domestic Filshie device sales from other medical device sales direct to medical facilities because UTMD is simply a distributor for Femcare in the U.S. In the aggregate, 2Q 2026 domestic sales were 11.9% lower, at just $5,166 compared to $5,865 in 2Q 2025. Non-PendoTECH domestic OEM sales were $166 higher, $52 of which were higher sales to new domestic biopharma customers. Domestic sales of the Filshie Clip System at $843 in 2Q 2026 were $263 lower than in 2Q 2025, a weak quarter following unusually strong sales in 1Q 2026. Domestic direct sales of other devices were $406 lower than in 2Q 2025, about 90% of which were due to lower neonatal device sales. OUS sales in 2Q 2026 were $725 (17.7%) lower at $3,363 compared to $4,088 in 2Q 2025. Excluding the $870 lower sales to UTMD's former China distributor mentioned above, 2Q 2026 OUS sales were $145 higher. In 2Q 2026, 39% of OUS sales were direct to medical facilities located in Ireland, the UK, France, Canada, Australia and New Zealand, compared to 37% in 2Q 2025. OUS direct to end-user sales are invoiced in foreign currencies. There was a negligible foreign currency impact from a slightly weaker USD compared to other invoiced currencies. Remaining OUS sales to distributors, excluding the China distributor, were $353 higher in 2Q 2026. These sales included export sales from the U.S. to OUS distributors invoiced in USD, and shipments to OUS distributors of products manufactured by UTMD subsidiaries in Ireland and the UK invoiced in EUR and GBP. The timing of shipments to OUS distributors can cause significant fluctuations in quarterly comparisons since distributors tend to order larger quantities each time in order to minimize transit and other logistical costs. UTMD's Form SEC 10-Q for 2Q 2026, which will be filed in August, will provide further 2Q revenue segmentation details. The portion of OUS sales invoiced in foreign currencies in USD terms was 25% of total WW consolidated 2Q 2026 sales compared to 31% in 2Q 2025. The average USD FX rates increased 2Q 2026 total consolidated sales $16 for sales invoiced in foreign currencies. FX rates for income statement purposes are transaction-weighted averages. The average FX rates from the applicable foreign currency to USD during 2Q 2026 and 2Q 2025 for revenue purposes follow: The $16 weighted average favorable impact on 2Q 2026 consolidated sales was negligible, about 0.2%. In constant currency terms, foreign currency sales in 2Q 2026 in USD terms were 30.7% lower than in 2Q 2025. "Constant currency" sales means exchanging foreign currency sales into USD-denominated sales at the same FX rate as was in the previous period of time being compared. Sales - 1H 2026 Total consolidated 1H 2026 UTMD worldwide (WW) sales in USD terms were 12.3% lower at $17,252 compared to $19,663 in 1H 2025. Sales of biopharma pressure monitoring devices and accessories to UTMD's previously largest OEM customer, PendoTECH, were zero in 1H 2026, compared to $265 in domestic OEM sales in 1H 2025. Sales of blood pressure monitoring kits to UTMD's previously largest distributor outside the U.S. (OUS) located in China were also zero in 1H 2026, compared to $1,658 in international sales in 1H 2025. The combined 1H 2026 zero sales to those two entities were in comparison to $1,923 in 1H 2025 and $2,098 in 1H 2024. Looking forward, the combined year 2026 sales to those two entities are expected to be zero compared to $2,458 in 2025 and $5,063 in 2024. In its SEC Form 10-K at the beginning of 2026, UTMD planned to offset the 2025 revenue losses with new product sales in 2026, including sales to other biopharma OEM customers, projecting 2026 consolidated revenues about the same as in 2025. Unfortunately, in 1H 2026 the new sales did not develop as quickly as expected, so that the beginning plan for 2026 full year revenues is now unlikely. Management's current year 2026 sales projection, with continued substantial uncertainty, is a sales decline of 10-13% compared to 2025. Domestic sales are invoiced in USD and obviously not subject to foreign currency conversion (FX) rate fluctuations. The components of domestic sales include 1) "direct non-Filshie device sales" of UTMD's medical devices to user facilities (and med/surg stocking distributors for hospitals), 2) "OEM sales" of components and other products manufactured by UTMD for other medical device and non-medical device companies, and 3) "domestic Filshie device sales". UTMD separates domestic Filshie device sales from other medical device sales direct to medical facilities because UTMD is simply a distributor for Femcare in the U.S. In the aggregate, 1H 2026 domestic sales were 6.3% lower, at $10,727 compared to $11,448 in 1H 2025. Non-PendoTECH OEM sales were $222 higher, $74 of which were higher sales to new domestic biopharma customers. Domestic sales of the Filshie Clip System at $2,376 in 1H 2026 were $230 (+10.7%) higher than in 1H 2025. Domestic direct sales of other devices were $909 lower than in 1H 2025, about 70% of which were due to lower neonatal device sales. OUS sales in 1H 2026 were $1,690 (20.6%) lower at $6,525 compared to $8,215 in 1H 2025. Excluding the $1,658 lower sales to UTMD's former distributor mentioned above, 1H 2026 OUS sales were $32 (0.4%) lower than in 2025. In 1H 2026, 41% of OUS sales were direct to medical facilities located in Ireland, the UK, France, Canada, Australia and New Zealand, compared to 37% in 1H 2025. OUS direct to end-user sales are invoiced in foreign currencies. The portion of OUS sales invoiced in foreign currencies in USD terms was 26% of total WW consolidated 1H 2026 sales compared to 31% in 1H 2025. The average USD FX rates increased 1H 2026 total consolidated sales $185 for sales invoiced in foreign currencies. FX rates for income statement purposes are transaction-weighted averages. The average FX rates from the applicable foreign currency to USD during 1H 2026 and 1H 2025 for revenue purposes follow: The $185 weighted average favorable impact on 1H 2026 consolidated sales was 1.1%. In constant currency terms, foreign currency sales in 1H 2026 expressed in USD were 28.7% lower than in 1H 2025. Gross Profit (GP) GP results from subtracting the cost of goods sold (CGS), comprised of costs of production including direct labor, manufacturing engineering, depreciation of equipment, maintenance and repairs, quality assurance including regulatory compliance, and purchasing including freight for receiving materials from suppliers, from revenues. CGS is divided into three categories: direct labor, raw materials and manufacturing overhead (MOH). Direct labor and raw materials are predominantly variable costs, i.e. vary directly with revenues. MOH contains many fixed costs consistent with the Company's infrastructure, for example, supervision, quality assurance and engineering personnel, and depreciation of fixed assets. In contrast to 1Q 2026, UTMD's 2Q 2026 GPM was lower than in 2025 primarily because both trade and intercompany shipments from UTMD's Ireland facility (UTMD Ltd) were lower while the Company retained the same staffing that it had to support the former China distributor and will be needed again for projected higher production requirements for new products in 2H 2026. UTMD Ltd is also the manufacturer and supplier of the Filshie Clip System to all UTMD subsidiaries worldwide, so lower intercompany Filshie sales to the U.S. in 2Q 2026 also contributed to Ireland's lower 2Q GPM. In contrast, UTMD's consolidated 1H 2026 GPM was higher than in 1H 2025, as expected, due to a more favorable product mix without $1,658 low GP sales to the China distributor. More specifically, 2Q 2026 GP was $837 (15.0%) lower than in 2Q 2025. GP in 1H 2026 was $1,093 (just 9.8%) lower than in 1H 2025 when sales were 12.3% lower. The consolidated 2Q 2026 GP margin (GPM) was 55.8% compared to 56.2% in 2Q 2025. The consolidated 1H 2026 GPM was 58.2% compared to 56.6% in 1H 2025. Operating Income (OI) OI results from subtracting Operating Expenses (OE) from GP. OE are comprised of Sales and Marketing (S&M) expenses, General and Administrative (G&A) expenses and Product Development (R&D) expenses. A lower GPM in 2Q 2026 on 14% lower sales compared to 2Q 2025 combined with $213 higher litigation expenses offset the beneficial impact of lack of intangible asset amortization expense in 2Q 2026, which was $531 in 2Q 2025. Consolidated OI of $2,649 was $547 (17.1%) lower compared to 2Q 2025 OI of $3,196. Despite the disappointing decline, UTMD's 2Q 2026 OI margin (OI as a percentage of sales) remained a healthy 31.1%. OI in 1H 2026 was $5,215 compared to $6,349 in 1H 2025, a decrease of $1,134 (17.9%), although with a continuing healthy OI margin of 30.2%. The lower OI was the result of 12% lower sales despite a higher GPM, together with $41 higher OE. Unexpectedly, G&A OE in 1H were about the same in both years despite $574 lower IIA amortization expense because of $341 higher 1H 2026 litigation expenses and $135 higher 1H 2026 U.S. G&A self-insured health plan expenses. The higher litigation expenses were due to a confluence of motions that won't continue in 2H 2026. UTMD still expects that litigation expense for the 2026 year will be less than in 2025 year as a whole. The following table summarizes OE in 2Q and 1H 2026 compared to the same periods in 2025 by OE category: Consolidated S&M expenses as a percentage of sales were higher due primarily to lower sales. The impact of differences in FX rates on foreign subsidiary S&M expenses added $2 in 2Q 2026 and $11 in 1H 2026. Excluding the FX rate impact, consolidated 2Q 2026 S&M expenses were the same and consolidated 1H 2026 S&M expenses were just 1% higher due to higher trade show expenses in the U.S. and higher salary expenses OUS. G&A expenses dominate UTMD's OE, largely because of expenses of current Filshie litigation in the U.S. and the former non-cash expenses from the amortization of Identifiable Intangible Assets (IIA) associated with the acquisition of the Filshie Clip System in 2011 which have now been fully-amortized. A segmentation of USD-denominated G&A expenses follows: Total consolidated G&A expenses in 2Q 2026 were $312 lower than in 2Q 2025, but as a percentage of sales only 0.8 percentage points lower, as a result of lower sales. In 1H 2026, G&A expenses were about the same as in 1H 2025 despite the lack of IIA amortization expense in 2Q 2026 which was offset by higher litigation expenses and health care plan expenses in the U.S. Higher 2Q litigation expenses resulted from the conclusion of expert witness fees not previously estimated, which fees should not continue into 2H 2026. 1H litigation expenses resulted from a confluence of summary judgment and other motions, along with expert witness costs, in the remaining four unresolved court cases (out of nineteen total). Unfortunately, although 2H 2026 litigation expenses should be lower than for 1H 2026, UTMD's previous estimate that 2026 litigation expenses for the year as a whole would be less than in 2025 is no longer valid. Litigation expenses in 2025 were $1,355. Management's best guess now is that 2026 litigation expenses will be less than $1.6 million. Foreign currency G&A expenses expressed in USD were increased by FX rate differences by $5 in 2Q 2026 and by $61 in 1H 2026. In 1H 2026, $29 of the $61 higher G&A expense FX impact was due to the final non-cash identifiable intangible asset (IIA) amortization-UK expense in 1Q 2026 which resulted from the 2011 acquisition of Femcare. Other-US G&A expenses were $49 lower in 2Q 2026 compared to 2Q 2025, but $128 higher in 1H 2026 compared to 1H 2025. The 1H 2026 higher Other-US G&A expenses were primarily due to higher health plan costs for G&A employees in the U.S. The differences in period-to-period R&D expenses were due to varying project costs and increases in salaries for the same number of people. Since all new product development work in 2026 was carried out in the U.S., there was no FX rate impact. The impact of differing FX rates in 2026 compared to 2025 on consolidated OE expressed in USD was relatively minor. The AUD was the primary stronger currency. Relative to the same periods in 2025, foreign currency OE in 2Q and 1H 2026 when converted to USD were increased by FX rate differences by a net $7 in 2Q 2026 and $72 in 1H 2026. The following table summarizes "constant currency" OE in 2Q and 1H 2026 compared to the same periods in 2025 by OE category: Income Before Tax (EBT) EBT results from subtracting net non‑operating expense (NOE) or adding net non-operating income (NOI) from or to, as applicable, OI. Consolidated 2Q 2026 EBT was $3,286 (38.5% of sales) compared to $3,835 (38.5% of sales) in 2Q 2025. Consolidated 1H 2026 EBT was $6,468 (37.5% of sales) compared to $7,694 (39.1% of sales) in 1H 2025. NOE/NOI includes the combination of 1) expenses from loan interest and bank fees; 2) expenses or income from losses or gains from remeasuring the value of EUR cash bank balances in the UK, and GBP cash balances in Ireland, in USD terms on June 30, 2026; and 3) income from rent of underutilized property, investment income and royalties received from licensing the Company's technology. Starting in 2024 for UTMD, there has been an additional excise tax included in UTMD's NOE: a stock repurchase 1% excise tax enacted in the so-called "Inflation Reduction Act of 2022". The value of shares repurchased in 2Q 2026 and 1H 2026 was $77 and $206 respectively. Shares repurchased in 2Q 2025 and 1H 2025 were $3,488 and $6,709 respectively. The cumulative excise tax on share repurchases since 2024 has been $285. Net NOI is NOI minus NOE. Net NOI in 2Q 2026 was $637 compared to $640 in 2Q 2025. Net NOI in 1H 2026 was $1,254 compared to $1,345 in 1H 2025. The lower NOI in both periods was essentially due to lower interest rates. Remeasured foreign currency balances generated about $2 more in net NOE in 1H 2026 compared to 1H 2025. EBITDA is a non-US GAAP metric that measures profitability performance without factoring in effects of financing, accounting decisions regarding non-cash expenses, capital expenditures or tax environments. Management believes that this operating performance metric provides meaningful supplemental information to both management and investors and confirms UTMD's ongoing excellent financial operating performance, as well as its ability to sustain high level financial performance during a challenging time. Excluding the noncash effects of depreciation, amortization of intangible assets and stock option expense, 2Q 2026 consolidated EBT excluding the remeasured bank balance currency gain or loss ("adjusted consolidated EBITDA") was $3,587 (42.1% of sales) compared to $4,671 (46.9% of sales) in 2Q 2025. Adjusted consolidated EBITDA was $7,568 (43.9% of sales) in 1H 2026 compared to $9,323 (47.4% of sales) in 1H 2025. The lower EBITDA in both 2Q and 1H 2026 was due to lower EBT, accentuated by lack of IIA amortization expense in 2Q 2026. Adjusted consolidated trailing twelve months' (TTM) EBITDA was $15,704 as of June 30, 2026. UTMD's non-US GAAP adjusted consolidated EBITDA is the sum of the elements in the following table, each element of which is a US GAAP number: Net Income (NI) NI in 2Q 2026 of $2,686 (31.5% of sales) was 11.9% lower than the NI of $3,048 (30.6% of sales) in 2Q 2025. The $362 lower 2Q 2026 NI was due to $546 lower OI combined with $3 lower net NOI, and a two-percentage point lower estimated average income tax provision rate. The average consolidated income tax provision rate (as a % of the same period EBT) in 2Q 2026 was 18.3% compared to 20.5% in 2Q 2025. NI in 1H 2026 of $5,290 (30.7% of sales) was 13.1% lower than the NI of $6,089 (31.0% of sales) in 1H 2025. The $799 lower 1H 2026 NI was due to $1,135 lower OI combined with $91 lower net NOI, and a lower estimated average income tax provision rate. The average consolidated income tax provision rate (as a % of the same period EBT) in 1H 2026 was 18.2% compared to 20.9% in 1H 2025. The consolidated income tax provision rate varies as the mix in taxable income among U.S. and foreign subsidiaries with differing income tax rates differs from period to period. The basic corporate income tax rates in each of the sovereignties were the same as in the prior year. Earnings per share (EPS) Diluted EPS in 2Q 2026 were $0.844 compared to diluted EPS of $0.939 in 2Q 2025, a 10.1% decrease. Diluted EPS in 1H 2026 were $1.661 compared to diluted EPS of $1.858 in 1H 2025, a 10.6% decrease. The percentage decreases in EPS were lower than the decreases in NI as a result of fewer diluted shares. Diluted shares were 3,183,554 in 2Q 2026 compared to 3,245,979 in 2Q 2025. Diluted shares were 3,184,265 in 1H 2026 compared to 3,277,936 in 1H 2025. The lower diluted shares in both periods of 2026 were the result of shares repurchased during 1H 2026. Because the average exercise price of employee options was higher than the ending market price of the stock in both 2Q 2026 and 2Q 2025, the number of shares added as a dilution factor in both 2Q 2026 and 2Q 2025 were zero. The same was true for both 1H 2026 and 1H 2025. The number of shares used for calculating EPS in both years was higher than period-ending outstanding shares because of a time-weighted calculation of average outstanding shares. Outstanding shares at the end of 2Q 2026 were 3,182,818 compared to 3,186,221 at the end of calendar year 2025. The difference was due to 3,403 shares repurchased in 1H 2026. Shares repurchased in 2Q 2026 were 1,207 at an average price of $64.10. Shares repurchased in 1H 2026 were 3,403, at an average price of $60.54. The total cost of repurchasing shares in 1H 2026 was $206 plus a 1% excise tax. Outstanding shares one year earlier were 3,215,901 at the end of 2Q 2025. Outstanding shares at the end of calendar 2024 were 3,335,156. The total cost of repurchasing 454,299 shares in the ten calendar quarters since the end of 2023 at an average cost of $62.80/ share was $28,529 plus a 1% federal excise tax. The Company retains the strong desire and financial ability for repurchasing its shares at a price it believes is attractive for remaining stockholders. The total number of outstanding unexercised employee and outside director options at June 30, 2026 was 119,086 at an average exercise price of $70.73, including shares awarded but not yet vested. This compares to 97,685 unexercised option shares at the end of 2Q 2025 at an average exercise price of $73.76/ share, including shares awarded but not vested. No employee options have been awarded in 2026. Non-qualified option awards totaling 13,800 shares were made to 40 employees in October 2025 at an exercise price of $58.10. UTMD paid $987 ($0.310/share) in dividends to stockholders in 2Q 2026 compared to $1,001 ($0.305/ share) paid in 2Q 2025. The dividends paid to stockholders during 2Q 2026 were 37% of NI. UTMD paid $1,976 ($0.310/share) in dividends to stockholders in 1H 2026 compared to $2,018 ($0.305/ share) paid in 1H 2025. The dividends paid to stockholders during 1H 2026 were 37% of NI. UTMD's closing share price at the end of 2Q 2026 was $68.98 up 11.3% from the closing price of $61.99 at the end of 1Q 2026, and up 23.3% from the closing price of $55.96 at the end of 2025. The closing share price one year ago at the end of 2Q 2025 was $56.92. Balance Sheet. At June 30, 2026 compared to the end of 2025, UTMD's cash and investments balance increased $1,772 to $87,528 despite use of $206 cash for share repurchases, $1,976 cash for dividends to stockholders, and $264 cash for capital equipment purchases. At June 30, 2026, net Intangible Assets decreased to 11.5% of total consolidated assets from 13.4% on June 30, 2025. UTMD's very strong 48.6 current ratio at June 30, 2026 was higher than the 37.6 current ratio at December 31, 2025 as a result of favorable 1H 2026 working capital changes. The average age of trade receivables was 38 days from date of invoice at June 30, 2026 compared to 35 days at December 31, 2025, based on the most recent calendar quarter of sales. Average inventory turns declined to 1.7 in 2Q 2026 compared to 2.0 for the last quarter of 2025, as the Company intentionally increased WIP/FG goods inventory balances in order to keep productivity up during 1H 2026 lower sales. Overall inventories increased $1,068 since the end of 2025, and receivables increased $43. Ending 2Q 2026 current liabilities declined $528 from the ending of 2025. Foreign currency exchange (FX) rates for Balance Sheet purposes are the applicable rates at the end of each reporting period. The FX rates from the applicable foreign currency to USD for assets and liabilities at the end of 2Q 2026 compared to the end of calendar year 2025 and the end of 2Q 2025 were Financial ratios as of June 30, 2026 which may be of interest to stockholders follow:1) Current Ratio = 48.62) Days in Trade Receivables (based on 2Q 2026 sales activity) = 383) Average Inventory Turns (based on 2Q 2026 CGS) = 1.74) 2026 YTD ROE (before dividends) = 9% Investors are cautioned that this press release contains forward looking statements and that actual events may differ from those projected. Risk factors that could cause results to differ materially from those projected include global economic conditions, market acceptance of products, regulatory approvals of products, regulatory intervention in current operations, government intervention in healthcare and the economy in general such as tariffs, tax reforms, the Company's ability to efficiently manufacture, market and sell products, cybersecurity and foreign currency exchange rates, among other factors that have been and will be outlined in UTMD's public disclosure filings with the SEC. Utah Medical Products, Inc., with particular interest in health care for women and their babies, develops, manufactures and markets a broad range of disposable and reusable specialty medical devices recognized by clinicians in over one hundred countries around the world as the standard for obtaining optimal long-term outcomes for their patients. For more information about Utah Medical Products, Inc., visit UTMD's website at www.utahmed.com. Utah Medical Products, Inc. INCOME STATEMENT, Second Quarter (three months ended June 30)(in thousands except earnings per share): INCOME STATEMENT, First Half (six months ended June 30)(in thousands except earnings per share): BALANCE SHEET Contact: Brian Koopman (801) 566-1200 SOURCE: Utah Medical Products, Inc. View the original press release on ACCESS Newswire

Shares of Utah Medical Products, Inc. UTMD have declined 4.3% since the company reported its earnings for the quarter ended March 31, 2026, underperforming the S&P 500 index, which rose 0.6% over the same period. Over the past month, however, the stock has gained 2.8%, still lagging the broader market’s 13.8% increase, indicating relatively muted investor sentiment toward the company’s recent performance. Utah Medical reported first-quarter 2026 earnings per share of 81.8 cents, which declined 11% from 91.9 cents in the prior-year quarter. Net sales fell 10.2% to $8.7 million from $9.7 million in the prior-year quarter. Net income decreased 14.4% to $2.6 million, and operating income dropped 18.7% to $2.6 million. Gross profit declined modestly by 4.6% to $5.3 million, reflecting some resilience in margins despite lower revenues. While overall sales contracted, profitability metrics showed mixed trends. Gross profit margin improved to 60.6% from 57% a year earlier, driven by a more favorable product mix and the absence of lower-margin sales to a former distributor in China. However, operating margin declined to 29.4% from 32.5%, and net income margin slipped to 29.9% from 31.3%, reflecting higher operating expenses and lower sales leverage. Geographically, domestic sales remained largely flat, declining just 0.4%, while international (outside the U.S.) sales dropped sharply by 23.4%. This decline was primarily due to the loss of sales to a previous Chinese distributor, which accounted for a significant portion of prior-year revenues. Segment-level trends were mixed. Direct domestic medical device sales fell 12.8%, and OEM sales dipped slightly, while domestic Filshie device sales surged 47.4%, partially offsetting broader weakness. Management noted that first-quarter results were broadly in line with previously communicated expectations for the full year but cautioned that quarterly comparisons may not fully reflect annual performance trends. The company emphasized that certain demand fluctuations, particularly in direct sales and Filshie device volumes, may reflect atypical quarterly patterns rather than structural changes. UTMD also highlighted its strong balance sheet, noting the continued absence of debt and increased cash balances despite ongoing share repurchases, dividend payments, and capital investments. Several factors weighed on the quarter’s performance. The most significant was the absence of sales to a former Chinese distributor and an OEM customer, which together accounted for a substantial portion of the revenue decline. Additionally, lower international Filshie device sales contributed to weaker top-line results. On the cost side, operating expenses rose due to higher litigation costs, increased employee healthcare expenses, and the impact of foreign exchange translation. These factors contributed to the sharper decline in operating income relative to revenue. Foreign exchange movements had a mixed impact, with a weaker U.S. dollar benefiting reported international sales but increasing operating expenses when translated into dollars. Lower interest income on cash balances also reduced non-operating income, further pressuring earnings before tax. Management indicated that full-year 2026 results are expected to align with previously announced projections. The company also suggested that certain elevated costs, such as litigation expenses and healthcare-related expenses, may normalize later in the year, potentially supporting improved profitability in subsequent quarters. During the quarter, Utah Medical continued its capital allocation strategy, repurchasing shares and paying dividends to shareholders. The company bought back 2,196 shares during the quarter and paid 31 cents per share in dividends. The balance sheet remained robust, with cash and investments rising to $87.4 million and stockholders’ equity increasing year over year. The company also completed amortization related to intangible assets from its Femcare acquisition, which will reduce amortization expense in future quarters. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Utah Medical Products, Inc. (UTMD): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SALT LAKE CITY, UT / ACCESS Newswire / April 23, 2026 / In the first calendar quarter (1Q) of 2026, Utah Medical Products, Inc. (Nasdaq:UTMD) attained financial results which were consistent with its previously announced projections for calendar year 2026. But because of the relatively short span of time, results for any given three-month period in comparison with a previous three-month period may not be indicative of comparative results for the year as a whole. Summary of results. The following is a summary comparison of 1Q 2026 with 1Q 2025 income statement measures: Currencies in this release are denoted as $ or USD = U.S. Dollars; AUD = Australia Dollars; £ or GBP = UK Pound Sterling; C$ or CAD = Canadian Dollars; and € or EUR = Euros. Currency amounts throughout this report are in thousands, except per share amounts and where noted. Consolidated sales in 1Q 2026 were $987 lower than in 1Q 2025. As expected and previously reported, UTMD did not have any 1Q 2026 sales to its previous largest medical device distributor of blood pressure monitoring kits in China, or to its previous OEM customer, PendoTECH. The combined sales to those two entities in 1Q 2025 were $857, representing 87% of the lower 1Q 2026 sales. Although overall domestic sales were about the same in both 1Q 2026 and 2025, sales outside the U.S. (OUS) excluding the China distributor were another $176 lower, due to lower Filshie Clip System sales OUS. Using the same foreign currency exchange (FX) rates for sales not invoiced in USD, i.e. in "constant currency" terms, OUS sales would have been an additional $169 lower because of a weaker USD. FX rates for income statement purposes are transaction-weighted averages. The average FX rates from the applicable foreign currency to USD during 1Q 2026 and 1Q 2025 follow: UTMD's 1Q 2026 GP at $5,282 was $256 lower than 1Q 2025 GP of $5,538. The 4.6% lower GP was less than the 10.2% decline in sales as a result of a more favorable product mix and a yearly one-time adjustment to standard costs which increased inventory value. Historically, sales to UTMD's largest OUS distributor in China had a significantly lower GP Margin (GPM), GP/Revenues, than UTMD's average GPM. Although manufacturing overhead costs were higher, which should lower the GPM when sales are lower, UTMD continues to effectively manage its variable manufacturing expenses. Consolidated worldwide (WW) OI, which is GP less Operating Expense (OE), in 1Q 2026 at $2,565 (29.4% of sales) was $588 lower than 1Q 2025 OI of $3,154 (32.5% of sales). OI was $332 lower in addition to the $256 lower GP, due to $127 higher litigation expenses, $147 higher employee health care costs in U.S. General and Administrative (G&A) expense and $65 higher same foreign currency exchange rate of OUS OE due to a weaker USD. In the aggregate, the components of WW OE in USD terms were Product Development (R&D) expenses about the same, Sales & Marketing (S&M) expenses $19 higher and G&A expenses $314 higher than in 1Q 2025, respectively. Income Before Tax (EBT) declined more than the $588 lower OI because net non-operating income (NOI) in 1Q 2026 was just $617 compared to $705 in 1Q 2025. The lower NOI was due to lower interest earned on cash balances. Combining the $588 lower OI with the about $89 lower NOI yielded 1Q 2026 EBT $677 (17.5%) lower than in 1Q 2025. UTMD's EBT Margin (EBT/sales) was 36.5% in 1Q 2026 compared to 39.7% in 1Q 2025. UTMD's consolidated income tax provision rate in 1Q 2026 was 18.2% compared to 21.2% in 1Q 2025. An EBT mix difference among subsidiary sovereignties caused the provision rate difference. The basic corporate income tax rate for the U.S. (including Utah state income tax) is 25.45% and for Ireland on EBT from exports is 12.5%. The lower income tax provision rate offset the 17.5% lower EBT, resulting in 1Q 2026 NI that was 14.4% lower than in 1Q 2025. Fewer outstanding shares as a result of UTMD's share repurchases further reduced the decline in 1Q 2026 earnings per share (EPS), which is NI/diluted number of outstanding shares, to be just 11.0% lower than in 1Q 2025. During the four calendar quarters following the end of 1Q 2025, UTMD repurchased 96,864 of its shares in the open market. There was no dilution from outstanding employee stock options for purposes of calculating diluted EPS in either 1Q 2026 or 1Q 2025. In income statement summary, with the top line declining 10.5% in 1Q 2026 compared to 1Q 2025, EPS declined 11.0%. UTMD's March 31, 2026 Balance Sheet, in the absence of debt, remained strong. After using $9.5 million in cash during the most recent twelve-month period to make share repurchases, pay stockholder dividends and purchase new equipment, UTMD's March 31, 2026 cash equivalent balances were $4.1 million higher than at March 31, 2025. Ending 1Q 2026 cash equivalent balances were about $1.7 million higher than three months earlier at December 31, 2025. Stockholders' Equity (SE) at $120.4 million improved $1.1 million at the end of 1Q 2026 from three months earlier, despite the fact that dividends and share repurchases reduce SE. FX rates for Balance Sheet purposes are the applicable rates at the end of each reporting period. The FX rates from the applicable foreign currency to USD for assets and liabilities at the end of 1Q 2026 and the end of 1Q 2025 follow: Sales. Total consolidated 1Q 2026 UTMD sales were $987 (10.2%) lower than in 1Q 2025. Constant currency sales were $1,156 (11.9%) lower. U.S. domestic sales were 0.4% lower, and OUS sales were 23.4% lower. Domestic sales in 1Q 2026 were almost the same at $5,560 compared to $5,583 in 1Q 2025. The components of domestic sales include 1) "direct sales" of UTMD's medical devices to user facilities (and med/surg stocking distributors for hospitals), excluding Filshie device sales, 2) "OEM sales" of components and other products manufactured by UTMD for other medical device and non-medical device companies, and 3) "Filshie device sales", manufactured by Femcare and distributed in the U.S. by UTMD. OUS sales in 1Q 2026 were $965 (23.4%) lower at $3,162 compared to $4,127 in 1Q 2025. Sales to UTMD's former distributor in China which were $789 in 1Q 2025 (and zero in 1Q 2026), which explains 82% of the $965 lower OUS sales. Although Filshie device sales directly to medical facilities in Ireland and the UK were about the same in both periods, direct Filshie device sales to medical facilities in Canada, France and Australia were $230 lower. OUS foreign currency sales actually benefited $169 from a weaker USD. On a constant currency basis, 1Q 2026 OUS sales were $1,133 (27.5%) lower than in 1Q 2025. OUS sales invoiced in foreign currencies in 1Q 2026 were $2,327, which was 74% of all OUS sales, and 27% of total 1Q 2026 UTMD consolidated sales. Foreign currency OUS sales in 1Q 2025 were $2,944, which was 71% of all OUS sales and 30% of total 1Q 2025 UTMD consolidated sales. Gross Profit (GP). UTMD's 1Q 2026 GP was $256 (4.6%) lower in 1Q 2026 than in 1Q 2025, driven by 10.2% lower sales. GP results from subtracting the costs of manufacturing products, including direct labor, raw materials and manufacturing overhead (MOH) expenses, from revenues. MOH, which was higher due primarily to cost-of-living adjustments for employees, includes supervision, engineering, quality assurance, outside services, depreciation of manufacturing equipment, purchasing and freight for receiving raw materials from vendors. Higher MOH expense with lower sales decreases the GPM. Nevertheless, UTMD's average GPM in 1Q 2026 was 60.6% compared to 57.0% in 1Q 2025. Although the lack of low GPM sales to UTMD's former China distributor helped to improve the average GPM, the margin increase was further leveraged by an annual standard cost adjustment after the end of 2025, which increased the book value of inventories. As a side note, UTMD in the U.S. distributes Filshie devices direct to U.S. medical facilities, which are manufactured by its Ireland subsidiary. Tariffs paid to the U.S. government on Filshie devices purchased from UTMD's own subsidiary "off the top" of intercompany sales were $108 higher in 1Q 2026 compared to 1Q 2025. This had the equivalent financial effect of raising UTMD's federal income tax rate in the U.S., thus lowering consolidated net income and EPS, which does not increase UTMD U.S. stockholder value to be sure. Operating Income (OI). OI results from subtracting Operating Expenses (OE) from GP. OI of $2,565 in 1Q 2026 was $588 (18.7%) lower than the $3,154 OI in 1Q 2025. OE is comprised of G&A expenses, S&M expenses and R&D expenses. Consolidated OE were $2,717 in 1Q 2026 (31.1% of sales) compared to $2,385 in 1Q 2025 (24.6% of sales). The substantial $332 increase in 1Q 2026 OE came predominantly from a $314 increase in 1Q 2026 G&A expenses. Consolidated G&A expenses were $2,044 (23.4% of sales) in 1Q 2026 compared to $1,730 (17.8% of sales) in 1Q 2025. The $314 increase in G&A expenses came from three causes: 1) U.S. G&A employee health care cost, 2) litigation expense, and 3) the effect of a weaker USD when translating foreign currency subsidiary G&A expenses. Net other G&A expenses were slightly lower. S&M expenses were $519 (5.9% of sales) in 1Q 2026 compared to $500 (5.1% of sales) in 1Q 2025. The change in FX rates increased 1Q 2026 OUS S&M expenses by $9. The remaining increase was due to increases in S&M salaries. Consequently, more than half of higher S&M expense percentage of sales was due to lower sales. R&D expenses in 1Q 2026 were $154 (1.8% of sales) compared to $155 (1.6% of sales) in 1Q 2025. There were no OUS R&D expenses. Income Before Tax (EBT). EBT results from subtracting net non‑operating expense (NOE) or adding net non-operating income (NOI) from or to, as applicable, OI. Consolidated 1Q 2026 EBT was $3,181 (36.5% of sales) compared to $3,859 (39.73% of sales) in 1Q 2025. The $677 (17.5%) lower 1Q 2026 EBT compared to 1Q 2025 was the result of $588 lower OI combined with $89 lower NOI. NOE/NOI includes the combination of 1) expenses from loan interest and bank fees; 2) expenses or income from losses or gains from remeasuring the value of EUR cash bank balances in the UK, and GBP cash balances in Ireland, in USD terms; and 3) income from rent of underutilized property, investment income and royalties received from licensing the Company's technology. NOI in 1Q 2026 included $106 lower interest income on UTMD's cash balances. The EBT of Utah Medical Products, Inc. in the U.S. was $2,825 in 1Q 2026 compared to $3,546 in 1Q 2025. The EBT of Utah Medical Products, Ltd (Ireland) was EUR 1,164 in 1Q 2026 compared to EUR 1,393 in 1Q 2025. The EBT of Femcare Group Ltd (Femcare Ltd., UK and Femcare Australia Pty Ltd) was GBP (686) in 1Q 2026 compared to GBP (663) in 1Q 2025. The 1Q 2026 EBT of Utah Medical Products Canada, Inc. was CAD (37) compared to CAD 107 in 1Q 2025. The differences in the U.S. and UK EBT were accentuated by intercompany transfer of litigation expenses which did not affect consolidated results. Excluding the noncash effects of depreciation, amortization of intangible assets and stock option expense, 1Q 2026 consolidated EBT excluding the remeasured bank balance currency gain or loss and interest expense ("adjusted consolidated EBITDA") were $3,982 compared to $4,652 in 1Q 2025. UTMD's trailing twelve-month EBITDA as of March 31, 2026 was $16,788. Net Income (NI). NI in 1Q 2026 of $2,604 was $438 (14.4%) lower than the NI of $3,041 in 1Q 2025. UTMD's NI Margin, NI divided by consolidated sales, was 29.9% in 1Q 2026 and 31.3% in 1Q 2025. The smaller 14.4% NI decline compared to 17.5% lower EBT was due to average consolidated income tax provision rates (as a % of EBT) in 1Q 2026 of 18.2% and 21.2% in 1Q 2025. Although basic corporate income tax rates did not change, the consolidated income tax provision can vary from period-to-period depending on the portion of EBT in sovereignties with differing rates, and a periodic true-up when actual tax returns are filed. Earnings per share (EPS). EPS in 1Q 2026 at $0.818 were 11.0% lower than the $0.919 in 1Q 2025. UTMD's smaller decline in EPS relative to NI was a result of 125,265 fewer diluted shares used to calculate EPS in 1Q 2026 compared to 1Q 2025. Diluted shares were 3,184,983 in 1Q 2026 compared to 3,310,248 in 1Q 2025. Outstanding shares were 3,184,025 at the end of 1Q 2026. The number of shares used for calculating EPS was higher than ending shares because of a time-weighted calculation of average outstanding shares for shares which were repurchased during the quarter. There was no dilution from unexercised employee options in either 1Q 2026 or 1Q 2025 as the average option exercise prices were above the period-ending closing stock prices. The total number of outstanding unexercised employee and outside director options at March 31, 2026 was 121,085 at an average exercise price of $70.66, including shares awarded but not yet vested. This compares to 97,779 unexercised option shares at the end of 1Q 2025 at an average exercise price of $73.77/ share, including shares awarded but not vested. Outstanding shares at the end of 1Q 2026 were 3,184,025 compared to 3,186,221 at the end of calendar year 2025 and 3,280,889 at the end of 1Q 2025. The difference in outstanding shares at the end of 1Q 2026 compared to the end of 2025 resulted from 2,196 shares repurchased in the open market, with no employee options exercised, during 1Q 2026. UTMD repurchased 2,196 of its shares at an average price of $58.58 during 1Q 2026. Because of a time-weighted calculation, the full antidilution impact of the 1Q 2026 repurchases won't be felt until 2Q 2026. There were 54,267 share repurchases in 1Q 2025 at an average price of $59.35. No options were awarded in 1Q 2026 or 1Q 2025. During the rest of 2025 after 1Q 2025, 13,800 option shares were awarded to 40 employees at an exercise price of $58.10. The Company retains the strong desire and financial ability for repurchasing its shares at a price it believes is attractive for remaining stockholders. UTMD's closing share price at the end of 1Q 2026 was $61.99, up 11% from the $55.96 closing price three months earlier at the end of 2025. The closing share price at the end of 1Q 2025 was $56.04. UTMD paid $989 ($0.31/share) in cash dividends to stockholders in 1Q 2026. UTMD paid $1,017 ($0.305/share) in cash dividends to stockholders in 1Q 2025. Balance Sheet. At March 31, 2026 compared to three months earlier at the end of 2025, UTMD's cash and investments increased $1,649 to $87,406, despite use of $129 cash to repurchase shares, pay $989 in stockholder dividends and purchase $130 in additional capital equipment. Compared to a year earlier at March 31, 2025, cash and investments increased $4,081. At March 31, 2026, net Intangible Assets declined $610 to 11.5% of total consolidated assets from 12.2% on December 31, 2025. The decline in Net Intangible Assets from a year earlier was $1,893. Inventories increased $787 from the end of 2025, and $75 from a year earlier. Working capital at the end of 1Q 2026 was $1,730 higher than at the end of 2025, and $4,798 higher than at March 31, 2025. UTMD's current ratio improved to 28.6 at March 31, 2026 from 22.3 at March 31, 2025. The current ratio at the end of 2025 was 37.6 due to low end-of-year current liabilities. Consolidated Accounts Receivable (net of allowances) increased $115 at March 31, 2026 from the end of 2025, but decreased $307 compared to March 31, 2025 due to lower sales. On a rolling sales quarter basis, the aging of receivables were 37.5 days at the end of 1Q 2026, compared to 35.0 days at the end of 2025 and 36.6 days at the end of March 2025, all well within management targets. As of March 31, 2026, Stockholders' Equity (SE) increased $3,325 to $120,373 compared to a year earlier at March 31, 2025, despite a reduction in SE from the $9,218 combination of share repurchases and stockholder cash dividends paid during the last twelve months. During 1Q 2026, SE increased $1,105 from the end of 2025 while the company paid $989 in dividends and repurchased $129 in stock, which reduced SE. Financial ratios as of March 31, 2026 which may be of interest to stockholders follow: Investors are cautioned that this press release contains forward looking statements and that actual events may differ from those projected. Risk factors that could cause results to differ materially from those projected include global economic conditions and potential trade wars, market acceptance of products, regulatory approvals of products, regulatory intervention in current operations, government intervention in healthcare and the economy in general, tax reforms, the Company's ability to efficiently manufacture, market and sell products, cybersecurity and foreign currency exchange rates, among other factors that have been and will be outlined in UTMD's public disclosure filings with the SEC. Utah Medical Products, Inc., with particular interest in health care for women and their babies, develops, manufactures and markets a broad range of disposable and reusable specialty medical devices recognized by clinicians in over one hundred countries around the world as the standard for obtaining optimal long-term outcomes for their patients. For more information about Utah Medical Products, Inc., visit UTMD's website at www.utahmed.com. Utah Medical Products, Inc. INCOME STATEMENT, First Quarter ended March 31 (in thousands except Earnings Per Share) BALANCE SHEET Contact: Brian Koopman (801) 566-1200 SOURCE: Utah Medical Products, Inc. View the original press release on ACCESS Newswire

Shares of Utah Medical Products, Inc. UTMD have gained 2% since the company reported its fourth-quarter and full-year 2025 earnings. This outpaced the S&P 500 index’s modest 0.2% growth over the same period. Over the past month, UTMD shares have climbed 7.6%, significantly outperforming the S&P 500’s 1.5% increase. For the quarter ended Dec. 31, 2025, Utah Medical reported earnings per share (EPS) of 80.2 cents, which dropped 6.3% from 85.7 cents in the year-ago quarter. The year-over-year decline in EPS was less severe than the drop in net income and operating income, primarily due to a reduced number of outstanding shares following significant stock repurchases during the year. Revenues of $9 million reflected a 1.2% decline from $9.2 million in the same period a year ago. Gross profit slipped 1.1% to $5.26 million, down slightly from $5.32 million in the fourth quarter of 2024. Operating income fell more sharply, decreasing 16.7% year over year to $2.4 million from $2.9 million, due largely to higher operating expenses. Income before tax declined 14.1% to $3.1 million. Net income came in at $2.6 million, an 11.6% decline from $2.9 million in the prior-year quarter. Utah Medical Products, Inc. price-consensus-eps-surprise-chart | Utah Medical Products, Inc. Quote While sales were modestly lower, Utah Medical maintained a strong gross profit margin of 58.2%, nearly unchanged from 58.1% in the prior-year quarter. Operating income margin declined to 27% from 32%, and the net income margin fell to 28.4% from 31.7%. The company’s adjusted consolidated EBITDA for the quarter was $4 million, down 10% from $4.4 million a year ago. As a percentage of sales, EBITDA declined to 43.8% from 48.1%. Domestic U.S. sales in the fourth quarter declined 4.9% to $5.5 million from $5.7 million, with non-Filshie device sales accounting for the majority of the drop. OEM sales were down 31.5% year over year, while Filshie device sales in the U.S. increased 21.6%. Outside the U.S. (OUS) sales rose 4.9% to $3.6 million, largely due to favorable foreign exchange rates. On a constant currency basis, OUS sales were up only 0.5%, with weakness in direct-to-hospital Filshie sales partially offset by stronger distributor shipments. Management noted that the fourth quarter offered a more normalized comparison, as there were no sales to UTMD’s China distributor in either the fourth quarter of 2025 or the fourth quarter of 2024. This allowed margins to stabilize somewhat despite persistent cost pressures. The company emphasized that cost-of-living salary increases and raw material inflation continued to weigh on results, but effective cost containment and margin discipline helped prevent further deterioration. Operating expenses rose due to increased general and administrative (G&A) costs, which included a $0.2 million charge related to an embezzlement case in the Australian subsidiary and a $0.4 million write-off tied to cancellation fees from the China distributor. Sales and marketing expenses were relatively flat, while R&D expenses increased due to product validation efforts late in the year. G&A expenses represented 23.2% of sales in the fourth quarter, up from 19.3% in the prior-year quarter. The revenue decline in the quarter was driven primarily by softness in U.S. sales of non-Filshie medical devices and OEM components. While U.S. Filshie sales showed strong growth, they were not enough to fully offset declines in other areas. OEM sales in particular were weak, continuing a trend observed throughout 2025 as PendoTECH-related sales diminished. Favorable foreign exchange rates provided a modest benefit to reported international sales, especially in Europe, where the stronger EUR and GBP increased USD-reported revenues. Legal costs related to product liability litigation increased slightly in the quarter to $0.4 million from $0.3 million the previous year. However, management noted that 14 of 19 pending court cases had already been dismissed by the end of January 2026, and no cases had yet gone to trial. The company expects lower litigation costs in 2026 unless trials are required, which could increase expenses. Foreign exchange impacts added $0.04 million to operating expenses in the quarter. The net effect of FX on both revenues and costs was modest but favorable, driven primarily by stronger European currencies. Full-year sales totaled $38.5 million, marking a 5.8% year-over-year decline from $40.9 million in 2024. The dip in revenue translated into reduced profitability. Net income fell 18.7% to $11.3 million. EPS dropped 12.1% year over year to $3.48. For the full year, the gross margin declined to 57.1% from 59% in 2024, reflecting persistent cost pressures tied to inflation in raw materials and employee compensation. Management reiterated that sales to PendoTECH and to the China distributor are expected to remain at zero in 2026, as they were in the fourth quarter. The company aims to offset these losses with new product introductions, incremental sales to other biopharma customers, and organic growth in both U.S. and international Filshie sales. Management cautioned that substantial uncertainty remains in achieving this recovery. During the fourth quarter of 2025, Utah Medical repurchased 17,951 shares at an average cost of $55.35 per share, totaling $1 million. This was part of a broader repurchase program under which 148,935 shares were bought back over the year. The company ended the year with 3.2 million diluted shares outstanding, down from 3.3 million a year earlier. Additionally, in October 2025, UTMD issued 23,800 stock options to employees and a new outside director at an exercise price of $58.10 per share. Despite modest top-line pressure, Utah Medical concluded the quarter with $85.8 million in cash and investments, up $2.8 million from the end of 2024, and no debt. Management reiterated its commitment to shareholder returns, maintaining quarterly dividends and continuing opportunistic share repurchases. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Utah Medical Products, Inc. (UTMD): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research