Utah Medical posted consolidated net sales of $8.529 million for the second quarter of 2026, down 14.3% year-over-year, and reported net income of $2.686 million (31.5% margin). For the first half of 2026 the company recorded sales of $17.252 million (down 12.3%) and net income of $5.290 million. Management cited loss of sales to two former large customers and slower-than-expected new biopharma OEM sales, while maintaining a strong cash and investments balance of $87.5 million at June 30, 2026.

Financial Highlights

  • Net sales (2Q 2026): $8,529 (down 14.3% vs. 2Q 2025)
  • Gross profit (2Q 2026): $4,758; gross profit margin 55.8% (2Q 2025: $5,595; 56.2%)
  • Operating income (2Q 2026): $2,649 (down 17.1% vs. 2Q 2025)
  • Net income (2Q 2026): $2,686 (31.5% of sales; down 11.9% vs. 2Q 2025)
  • Adjusted consolidated EBITDA (2Q 2026): $3,587 (42.1% of sales); trailing twelve months' EBITDA as of 6/30/26: $15,704

Business Highlights

  • Loss of two previously largest customers: zero sales in 2Q 2026 to a former OEM (PendoTECH) and zero sales to a former China distributor, which together accounted for the majority of the revenue decline versus 2025.
  • New biopharma OEM customer traction was slower than expected — sales to other new biopharma customers totaled $211 in 1H 2026.
  • Domestic sales mix: domestic sales fell 11.9% in 2Q 2026 to $5,166; Filshie Clip System domestic sales were $843 in 2Q with seasonal/quarterly variability noted.
  • Outside-U.S. (OUS) operations: OUS sales were $3,363 in 2Q 2026; excluding the former China distributor, OUS sales showed modest improvement with higher distributor shipments and 39% of OUS sales direct to medical facilities in multiple developed markets.
  • Balance sheet and operations: no debt, cash and investments of $87.5 million at 6/30/26, inventories intentionally increased to support production capacity for anticipated new product demand in 2H 2026, and strong liquidity with a current ratio of 48.6.

Original SEC Filing:

This is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC.