UTMD

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

SALT LAKE CITY, UT / ACCESS Newswire / January 29, 2026 / With some unexpected circumstances in 2025, Utah Medical Products, Inc (UTMD) did not achieve its beginning of year financial projections. Nevertheless the Company retained excellent profit margins, and increased its year-ending cash balances to $85.8 million despite paying $4.0 million in dividends to stockholders and repurchasing 4.5% (since the end of 2024) of its shares in the open market for $8.4 million. 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 A summary comparison of 4Q and calendar year 2025 income statement category declines relative to the same periods of 2024 follows: Despite lower sales, profit margins in 4Q and year 2025 held up well compared to 4Q and year 2024, for reasons described later in this report: Because revenue results for any given three-month period in comparison with a previous three-month period are not indicative of comparative results for the year as a whole, investors should focus on the annual results described later in this release. Focusing on the causes of the $2.4 million consolidated worldwide (WW) decline in annual revenues in 2025, the lower sales can be explained by the three following categories: The OUS (Outside the U.S.) Distributor category (item 2 above) included UTMD's China distributor for blood pressure monitoring kits for which a non-changeable/noncancellable order at the beginning of 2025 for 2025 shipments was surprisingly cancelled in 3Q 2025, resulting in $431 lower revenues than had been committed, and $310 of the $471 lower OUS distributor sales compared to 2024. The decline in WW Filshie device revenues (item 3 above) can be divided into three parts: OUS Direct Filshie revenues were sales by UTMD subsidiaries directly to medical facilities in the UK, France, Ireland, Canada, Australia and New Zealand. In contrast to a sales increase in the U.S., OUS Filshie sales were significantly lower. Because of additional cost-of-living adjustments for employees in 2025 and continued inflation in raw material costs, UTMD realized an expected decrease in its 2025 gross profit margin compared to 2024. Nevertheless, it was able to maintain its GP margin in 4Q 2025 consistent with 4Q 2024, in part due to the low gross profit margin of former sales to its China distributor. Although WW operating expenses remained about the same as in the previous year, UTMD's robust Operating Income margin in 2024 was lower in 2025 as a result of lower sales. Legal costs associated with the Filshie clip litigation in the U.S., which are captured in G&A operating expenses, were $783 lower in 2025. But that benefit was more than offset by the following three unusual G&A expense elements: 1) recognition of $395 write-off of cancellation fees due from the China distributor, 2) recognition of a $195 loss from embezzled funds by UTMD's Australia subsidiary manager, who pled guilty, but hasn't repaid, and 3) a $100 increase in OUS G&A expenses relative to 2024 FX rates due to a stronger EUR and GBP in 2025. The remaining $93 increase in WW operating expenses was due essentially to higher salaries and option expense for the same number of people. Non-operating income was lower primarily as a result of lower interest rates on UTMD's higher cash balances. Year-to-year income tax provision rates varied as a result of the mix of pretax profits in various sovereignties, including truing up for 2024 actual taxes filed in 2025. EPS benefited from UTMD repurchasing over 4.5% of its shares during the year. UTMD's December 31, 2025 Balance Sheet, in the continued absence of debt, remained strong. After using over $12.7 million of its cash, specifically $8,355 to repurchase shares, $3,984 to pay stockholder dividends and $371 for new manufacturing equipment and tooling during 2025, ending Cash and Investments increased $2.8 million to $85.8 million on December 31, 2025 from $83.0 million on December 31, 2024. Non-cash working capital declined a net $210 as a result of $877 continued reduction in inventories after the earlier accumulation as a hedge against supply chain disruption, and $573 lower year-ending receivables as a result of lower sales. The lower inventories and receivables helped provide the increase in cash. Stockholders' Equity (SE) increased $1.8 million as of December 31, 2025 from December 31, 2024 despite the reduction in SE from $12.3 million in share repurchases and stockholder dividends. 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 calendar year 2025 compared to the end of 2024, and the end of 3Q 2025 follow: Revenues (sales) - 4Q 2025 Total consolidated 4Q 2025 UTMD worldwide (WW) sales were $9,044 compared to $9,157 in 4Q 2024, $113 (1.2%) lower. "Constant currency" sales are defined as USD-denominated sales at the same foreign currency exchange rates as in the prior applicable period of time. Total constant currency 4Q 2025 sales were $8,892, as a stronger EUR and GBP in 4Q 2025 added $153 to sales in those foreign currency sales using the prior year's FX rates. U.S. domestic sales were 4.9% lower, and OUS sales were 4.9% higher in USD terms, than in 4Q 2024. Domestic U.S. sales in 4Q 2025 were $5,453 compared to $5,735 in 4Q 2024. Domestic sales are invoiced in USD and are not subject to FX rate fluctuations. The components of domestic sales include 1) "direct other device 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) "direct Filshie device sales". UTMD separates Filshie device sales from other medical device sales direct to medical facilities because of their significance, and the acquisition history. Direct non-Filshie device sales, representing 68% of total domestic sales, were $200 (5.1%) lower in 4Q 2025 than in 4Q 2024. OEM sales, representing 11% of total domestic sales, were $286 (31.5%) lower. Direct Filshie device sales, representing 21% of 4Q 2025 total domestic sales, were $204 (21.6%) higher in 4Q 2025 compared to 4Q 2024. OUS sales in 4Q 2025 were $3,591 compared to $3,422 in 4Q 2024, 4.9% higher. Constant currency OUS sales were up 0.5%. Both the GBP and EUR were stronger relative to the USD than in the same quarter in 2024, while the AUD and CAD FX rates were about the same. The net FX constant currency impact resulted in a $153 increase in USD-denominated 4Q 2025 sales. FX rates for income statement purposes are transaction-weighted averages. The average FX rates from the applicable foreign currency to USD during 4Q 2025 and 4Q 2024 for revenue purposes follow: The combined weighted-average positive FX impact on 4Q 2025 foreign currency sales was 6.4%. The portion of OUS sales which were invoiced in foreign currencies, in USD terms, were 28% of total consolidated 4Q 2025 sales compared to 25% in 4Q 2024. OUS sales invoiced in foreign currencies are to direct end-users in Ireland, the UK, France, Canada, Australia and New Zealand, and to OUS distributors of devices manufactured by UTMD subsidiaries in Ireland and the UK. Direct to end-user OUS sales in USD terms in 4Q 2025 which were 40% of all OUS sales, were lower by 15.1%, 3.7%, 28.5%, 33.8% and 9.4% for Ireland, the UK, France, Canada and Australia/New Zealand respectively compared to 4Q 2024. These lower numbers primarily reflected lower Filshie OUS direct device sales. In USD terms, 4Q 2025 export sales to OUS distributors, which were 60% of OUS sales, were 22% higher than in 4Q 2024. There were no shipments of pressure monitoring kits to UTMD's China distributor in either 4Q 2025 or 4Q 2024. Sales from Ireland to OUS distributors in 4Q 2025 represented 58% of total OUS distributor sales compared to 38% in 4Q 2024. Export sales from the U.S. to OUS distributors are invoiced in USD. Sales to OUS distributors from the U.S. were 18% lower in 4Q 2025 than in 4Q 2024 as some OUS distributor orders were accepted in Ireland rather than in the U.S. in order to help balance UTMD's production capacity. Sales -2025 Year Total UTMD consolidated 2025 WW USD-denominated sales were $38,520 compared to $40,903 in 2024, $2,383 (5.8%) lower than in 2024. The decline can be explained primarily from three sales categories highlighted in the summary at the beginning of this release: 1) an expected $2,295 (85%) decrease in OEM sales of biopharma pressure sensors and accessories to PendoTECH, reducing Ireland OUS sales $429 and U.S. OEM sales $1,866; 2) in other than Filshie device sales, an unexpected $471 (5%) decrease in OUS distributor sales, including $310 lower UTMD Ltd (Ireland) sales to UTMD's China distributor of blood pressure monitoring kits, which was $431 lower than its "non-changeable" 2025 annual order; and 3) $745 (7%) lower WW sales of Filshie Clip System devices. OUS USD-denominated sales in 2025 were $1,700 (9.7%) lower at $15,758 compared to $17,458 in 2024. UTMD Ltd (Ireland) 2025 sales to PendoTECH which were zero in 2025 were $429 lower, and to its China distributor for pressure monitoring kits $310 lower. OUS Filshie device sales, both direct to OUS medical facilities and to OUS distributors combined, which are shipped from Ireland or the UK, were $1,181 lower. Sales of other UTMD devices to OUS distributors were $220 higher in 2025. OUS biopharma sales to PendoTECH and blood pressure monitoring kits to UTMD's China distributor are expected to be zero in 2026, compared to a combined $2,458 in 2025. Sales invoiced in foreign currencies, which were $11,388 when converted to USD, represented 72% of OUS sales and 30% of consolidated total sales. The stronger EUR and GBP added $397 in OUS foreign currency sales compared to constant currency terms. FX rates for income statement purposes are transaction-weighted averages. The weighted-average FX rates from the applicable foreign currency to USD during 2025 and 2024 for revenue purposes follow: The combined weighted-average favorable FX impact on 2025 foreign currency OUS sales was 3.6%, increasing reported 2025 USD sales by $397 relative to the same foreign currency sales in 2024. In constant currency terms, OUS sales in 2025 were 12.0% lower than OUS sales in 2024. The portion of OUS sales invoiced in foreign currencies in USD terms was 30% of total consolidated 2025 USD sales compared to 32% in 2024. Including the impact of changed FX rates, OUS 2025 direct to end-user sales by UTMD subsidiaries in USD terms were 13% lower. Domestic U.S. sales in 2025 were $22,761 compared to $23,444 in 2024, which was $683 (2.9%) lower than in 2024. The $1,866 lower domestic PendoTECH sales were offset by $1,183 higher other domestic sales. Domestic Filshie device sales, representing 20% of domestic sales, were $436 (+10.8%) higher. The unit volume of Filshie clips sold was 12% higher. Domestic direct sales of other devices were $872 (+5.9%) higher, led by a 16% increase in domestic NICU device sales. All other U.S.OEM (not PendoTECH) sales in 2025, which fluctuate from year-to-year, were $125 lower than in 2024. Looking forward to 2026, OEM sales to PendoTech and blood pressure monitoring kits to China are expected to be zero, compared to $2.5 million in 2025. Although with substantial uncertainty, UTMD plans to offset those losses entirely with new product sales including sales to other biopharma customers, combined with modest growth in its organic business including domestic Filshie device sales, as well as improvement in OUS Filshie device sales. Gross Profit (GP) GP results from subtracting the costs of manufacturing, quality assurance and receiving materials from suppliers. With an 5.8% decline in 2025 sales, UTMD's GP was $2,142 (8.9%) lower than in 2024. But UTMD was able to limit dilution of its GP margin in 4Q 2025. With a 1.2% decline in sales, 4Q 2025 GP was $59 (1.1%) lower than in 4Q 2024. The fourth quarter comparison might be more instructive for 2026 year as a whole because there were no sales to UTMD's China distributor in either 4Q 2025 or 4Q 2024. As expected, UTMD's 2025 GP margin was squeezed by supplier costs for raw materials continuing to increase and further employee cost-of-living adjustments, thanks to the residual inflationary effects of excessive government largesse during and after the COVID pandemic. The 2025 GP margin was 57.1% compared to 59.0% in 2024, and 58.2% in 4Q 2025 compared to 58.1% in 4Q 2024. Operating Income (OI) OI results from subtracting Operating Expenses (OE) from GP. For the year 2025, OI was $11,402 compared to $13,594 in 2024, a 16.1% decrease. The $2,192 decrease in 2025 OI was from the combination of $2,142 lower GP together with $50 higher OE. OI in 4Q 2025 was $2,442 compared to $2,930 in 4Q 2024. The $488 lower 4Q 2025 OI was a combination of $59 lower GP and $429 higher OE. OE are comprised of Sales and Marketing (S&M) expenses, G&A expenses and Product Development (R&D) expenses. The following table summarizes OE in 4Q and year 2025 compared to the same periods in 2024 by OE category: The following table summarizes "constant currency" OE in 4Q and year 2025 by OE category: The FX rate change impact on OE in both periods resulted from a stronger GBP and EUR. The total impact of FX rate changes on OE added $41 in 4Q 2025 and $109 for the year 2025. S&M expenses increased in 2025 primarily as a result of cost-of-living salary increases. Constant currency S&M expenses were the same in the 4Q, and $141 higher for the full year. In addition to cost-of-living salary increases, R&D increased in the 4Q as a result of validation testing for a new product, but were lower for the year as a result of higher testing in 2024. There was no FX rate impact on R&D expenses, as they were carried out in the U.S. The major changes in OE were in the G&A expense category. U.S. product liability lawsuit legal expenses in 2025 were $1,355 (3.5% of sales) compared to $2,139 (5.2% of sales) in 2024. Litigation expenses in 4Q 2025 were $372 (4.1% of sales) compared to $326 (3.6% of sales) in 4Q 2024. Litigation expenses were $783 lower for the 2025 year, but $46 higher in 4Q 2025 compared to the same periods in 2024. As of January 2026, fourteen of nineteen courts where cases have been filed around the country have dismissed the lawsuits. Four more are awaiting court decisions on UTMD summary judgment motions. If a summary judgment motion is denied, the case would go to trial. No case has gone to trial as yet. While there are currently fewer active cases, and thus less discovery and motion work anticipated in 2026, any cases that must go to trial could drive up litigation expenses significantly. Despite the $783 lower 2025 G&A expense from litigation, total WW consolidated G&A expenses were $45 higher. Two unexpected 2025 G&A expense increases were 1) the 3Q bad debt write-off of the $395 balance of a cancellation fee charged UTMD's China distributor for work in process and custom materials used solely for that customer, based on a non-changeable annual order, the last shipment of which in 3Q 2025 was surprisingly cancelled before shipment, and 2) the recognition in 4Q 2025 of a $195 loss of funds embezzled by UTMD's former Australia subsidiary manager, about which she admitted guilt and promised to repay, but in fact hasn't repaid yet. In addition to the two "one-time" unusual G&A expenses of $590 in 2025, the FX impact of G&A expense OUS added another $100. Otherwise, cost of living salary increases for all G&A employees except the CEO made up the remaining $48 increase in 2025 G&A expenses. With respect to the FX impact on G&A expenses, a stronger GBP added $19 in 4Q, and $65 for the year 2025, for the same GBP IIA amortization in the UK. The stronger GBP and EUR together added $17 in other 4Q 2025 G&A expenses, and $35 for the year 2025, with the impacts split about evenly between the two currencies. The negative impacts on consolidated 2025 G&A expenses of slightly weaker CAD and AUD currencies were minor in both periods. Because prediction of the FX rate impact looking forward is not possible, UTMD's financial projections assume the same exchange rates in 2026 as in 4Q 2025. A division of G&A expenses by location follows: 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 2025 EBT was $14,110 (36.6% of sales) compared to $16,802 (41.1% of sales) in 2024. Consolidated 4Q 2025 EBT was $3,106 (34.3% of sales) compared to $3,614 (39.5% of sales) in 4Q 2024. NOE/NOI includes the combination of 1) expenses from loan interest and bank fees; 2) U.S. excise taxes on share repurchases; 3) 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 4) income from rent of underutilized property, investment income and royalties received from licensing the Company's technology. Negative NOE is NOI. Net NOI in 2025 was $2,707 compared to $3,208 NOI in 2024. Net NOI in 4Q 2025 was $664 compared to $684 NOI in 4Q 2024. The lower 2025 NOI was due primarily lower interest rates on UTMD cash balances. The contribution of NOI in 2025 as a percent of sales was 7.0% compared to 7.8% in 2024. 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. Consolidated EBT excluding the remeasured bank balance currency gain or loss, interest expense, noncash effects of depreciation, amortization of intangible assets and stock option expense ("adjusted consolidated EBITDA") were $17,458 for the year 2025 compared to $19,852 in 2024, a 12.1% decrease. Adjusted consolidated EBITDA in 4Q 2025 was $3,965 compared to $4,405 in 4Q 2024. UTMD's adjusted consolidated EBITDA as a percentage of sales was 45.3% for the year 2025 compared to 48.5% in 2024. UTMD's adjusted consolidated EBITDA as a percentage of sales was 43.8% in 4Q 2025 compared to 48.1% in 4Q 2024. Management believes that this operating performance metric provides meaningful supplemental information to both management and investors and confirms UTMD's ongoing excellent financial performance. 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 for the year 2025 of $11,286 (29.3% of sales) was 18.7% lower than NI of $13,874 (33.9% of sales) in 2024. NI in 4Q 2025 of $2,565 (28.4% of sales) was 11.6% lower than NI of $2,902 (31.7% of sales) in 4Q 2024. The average consolidated income tax provisions (as a % of the same period EBT) for the year 2025 and 2024 were 20.0% and 17.4% respectively, and were 17.4% and 19.7% in 4Q 2025 and 4Q 2024 respectively. 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. UTMD has consistently paid millions of dollars in income taxes annually. The basic 2025 corporate income tax rates in each of the sovereignties were the same as in the prior year. Earnings per share (EPS). Despite 16.1% lower OI for the 2025 year, diluted 2025 EPS of $3.483 compared to $3.961 in 2024 were just 12.1% lower. Diluted EPS in 4Q 2025 were $0.802 compared to $0.857 in 4Q 2024. The smaller decrease in EPS for the 2025 year compared to the decline in OI and a higher average income tax provision rate was due to fewer diluted shares. Diluted shares were 3,239,927 for the 2025 year compared to 3,503,165 in 2024. Diluted shares were 3,197,585 in 4Q 2025 compared to 3,387,932 in 4Q 2024. The number of shares used for calculating 4Q 2025 and year 2025 EPS were higher than the December 31, 2025 outstanding share balance of 3,186,221 because of a time-weighted calculation of average outstanding shares. Outstanding shares at the end of calendar year 2025 were 3,186,221 compared to 3,335,156 at the end of 2024, a decline of 4.5%. The difference was due to share repurchases of 148,935 during 2025. There were no employee options exercised in 2025. The total number of outstanding unexercised employee and outside director options at December 31, 2025 was 121,085 at an average exercise price of $70.66, including shares awarded but not yet vested. This compares to 97,985 unexercised option shares at the end of 2024 at an average exercise price of $73.77/ share, including shares awarded but not vested. The number of shares added as a dilution factor for both years 2025 and 2024 was zero. The number of shares added as dilution factors was zero because the applicable average exercise price was higher than the applicable period-ending market prices. In October 2025, 23,800 non-qualified option shares were awarded to 40 employees and one new outside director at an exercise price of $58.10 per share. In November 2024, 24,600 non-qualified option shares were awarded to 47 employees and one new outside director at an exercise price of $64.09 per share. UTMD's stock option plans continue to be an integral part of attracting and retaining productive employees. Over time, option plans have not been dilutive to stockholders, as the Company has consistently repurchased substantially more shares in the open market at lower prices than it has awarded in options. UTMD paid $977 ($0.305/share) in dividends to stockholders in 4Q 2025 compared to $1,038 ($0.300/share) paid in 4Q 2024. UTMD paid $3,983 ($1.22/share) in dividends to stockholders in 2025 compared to $4,260 ($1.20/ share) in dividends in 2024. Payments in 2025 were lower than in 2024 despite higher dividends per share as a result of share repurchases. As declared in November 2025, UTMD's regular quarterly dividend was increased to $0.310 per share starting with a January 2026 payment. In 2025, the following quarterly repurchases were made: In 2024, the Company repurchased 301,961 of its shares for $19,968, which was an average cost of $66.13 per share. During the two years of 2025 and 2024, the Company repurchased a total 450,896 shares for $28,323, which was an average cost of $62.82 per share. The combined two-year purchases reduced outstanding shares 12.4% from the end of 2023. 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 2025 was $55.96, down 9.0% from the closing price of $61.47 at the end of 2024, and down 11.1% from the end of the prior calendar quarter. In comparison, the major stock market indices were all substantially higher for the year 2025: the Dow Jones Industrial Average was up 13.0%, the S&P 500 Index up 16.4% and the NASDAQ Composite, in which UTMD shares are traded, up 20.4%. Year 2025 marks the first time over the last 27 years that UTMD's stock price declined three years in a row. Balance Sheet Please see the December 31, 2025 Balance Sheet at the end of this report. At the end of 2025, UTMD's cash and investments at $85.8 million were $2.8 million higher than at the end of 2024 as a result of $17.5 million operating EBITDA minus $2.8 million accrued income taxes, $4.0 million paid in cash dividends paid to stockholders, $8.4 million used to repurchase shares and a $0.2 million decrease in non-cash working capital. The lower non-cash working capital was a result of lower sales activity combined with fewer days in receivables which reduced ending receivables $0.6 million, and a $0.9 million decrease in inventories previously set as a hedge against supply chain disruptions, which were offset by a $1.1 decrease in current liabilities. At December 31, 2025, Net Intangible Assets decreased by $1.6 million to 12.2% of total consolidated assets from 13.4% on December 31, 2024. UTMD's consolidated Property, Plant and Equipment (PPE) net asset value increased $145 despite $826 in 2025 depreciation minus $371 in new PPE purchases, as a result of year-end stronger OUS FX rates translating OUS asset values in the UK and Ireland to USD. Financial ratios as of December 31, 2025 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, market acceptance of UTMD's products, regulatory approvals of products, regulatory intervention in current operations, government intervention in healthcare 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. UTMD's 2025 SEC Form 10-K will be filed on or before March 27, 2026, and can be accessed at www.utahmed.com. 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 atwww.utahmed.com. Utah Medical Products, Inc. INCOME STATEMENT, Fourth Quarter (three months ended December 31) (in thousands except earnings per share): INCOME STATEMENT, Twelve Months (Calendar Year ended December 31) (in thousands except earnings per share): BALANCE SHEET SOURCE: Utah Medical Products, Inc. View the original press release on ACCESS Newswire