UTMD · Utah Medical Products, Inc.

Utah Medical Products reported Q1 2026 results that were consistent with its previously announced projections for calendar year 2026, though the company cautioned that quarterly comparisons may not be indicative of full-year trends. Revenue declined 10.2% to $8,722k, primarily due to the absence of sales to its former largest medical device distributor in China and to former OEM customer PendoTECH, which together contributed $857k in Q1 2025. Domestic sales were nearly flat at $5,560k, with a 47.4% surge in Filshie device sales offsetting a 12.8% decline in direct medical device sales. OUS sales fell 23.4% to $3,162k, with the China distributor loss accounting for 82% of the decline. Gross profit margin improved significantly to 60.6% from 57.0%, driven by a favorable product mix (lower-margin China sales eliminated) and a one-time standard cost adjustment that increased inventory book value. However, operating income dropped 18.7% to $2,565k as operating expenses rose $332k, including $127k higher litigation expenses, $147k higher U.S. healthcare costs, and $65k from a weaker USD translating foreign subsidiary expenses. Net income fell 14.4% to $2,604k, with EPS of $0.818 down 11.0% from $0.919, aided by share repurchases that reduced diluted shares by 125,265. The effective tax rate decreased to 18.2% from 21.2% due to a mix shift in subsidiary earnings. Cash equivalents increased $1.7 million from year-end 2025 to $4.1 million above the prior year, despite $9.5 million used for share repurchases, dividends, and equipment. Management noted that litigation expenses for the full year are expected to be lower than 2025, assuming no cases go to trial.