Third Calendar Quarter and First Nine Months 2026
Filed Oct 22, 2026UTMD reports 3Q 2026 net sales of $8,621, down (12.1%), while US GAAP net income increased +5.9% to $2,787 as lower litigation and intangible-amortization expense lifted operating income.
Third-quarter sales, gross profit and Filshie sales declined, but operating income, net income and diluted EPS increased because G&A expenses fell sharply following the completion of Femcare intangible-asset amortization and lower litigation expense. Nine-month sales, operating income, net income and EPS remained below the prior-year period.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| 3Q 2026 Net SalesGAAP | $8.62M | – | (12.1%) |
| 3Q 2026 Gross ProfitGAAP | 4,840 | – | (13.6%) |
| 3Q 2026 Gross Profit MarginGAAP | 56.1% | – | – |
| 3Q 2026 Operating IncomeGAAP | 2,795 | – | +7.0% |
| 3Q 2026 Operating Income MarginGAAP | 32.4% | – | – |
| 3Q 2026 Sales and Marketing ExpenseGAAP | $ 529 | – | – |
| 3Q 2026 General and Administrative ExpenseGAAP | 1,374 | – | – |
| 3Q 2026 Research and Development ExpenseGAAP | 142 | – | – |
| 3Q 2026 Total Operating ExpensesGAAP | 2,045 | – | – |
| 3Q 2026 Income Before TaxGAAP | 3,401 | – | +2.8% |
| 3Q 2026 Income Before Tax MarginGAAP | 39.5% | – | – |
| 3Q 2026 Net Non-Operating IncomeGAAP | $606 | – | – |
| 3Q 2026 Net IncomeGAAP | 2,787 | – | +5.9% |
| 3Q 2026 Net Income MarginGAAP | 32.3% | – | – |
| 3Q 2026 Average Consolidated Income Tax Provision RateGAAP | 18.1% | – | – |
| 3Q 2026 Earnings Per ShareGAAP | $ 0.876 | – | +6.8% |
| 3Q 2026 Shares Outstanding (diluted)GAAP | 3,180 | – | – |
| 3Q 2026 Adjusted Consolidated EBITDAnon-GAAP | $3.73M | – | – |
| 3Q 2026 Adjusted Consolidated EBITDA Marginnon-GAAP | 43.3% of sales | – | – |
| 9M 2026 Net SalesGAAP | $25.87M | – | (12.2%) |
| 9M 2026 Gross ProfitGAAP | 14,880 | – | (11.1%) |
| 9M 2026 Gross Profit MarginGAAP | 57.5% | – | – |
| 9M 2026 Operating IncomeGAAP | 8,009 | – | (10.6%) |
| 9M 2026 Operating Income MarginGAAP | 31.0% | – | – |
| 9M 2026 Sales and Marketing ExpenseGAAP | $1.57M | – | – |
| 9M 2026 General and Administrative ExpenseGAAP | 4,847 | – | – |
| 9M 2026 Research and Development ExpenseGAAP | 450 | – | – |
| 9M 2026 Total Operating ExpensesGAAP | 6,871 | – | – |
| 9M 2026 Income Before TaxGAAP | 9,870 | – | (10.3%) |
| 9M 2026 Income Before Tax MarginGAAP | 38.1% | – | – |
| 9M 2026 Net Non-Operating IncomeGAAP | $1.86M | – | – |
| 9M 2026 Net IncomeGAAP | 8,077 | – | (7.4%) |
| 9M 2026 Net Income MarginGAAP | 31.2% | – | – |
| 9M 2026 Average Consolidated Income Tax Provision RateGAAP | 18.2% | – | – |
| 9M 2026 EPSGAAP | $ 2.537 | – | (5.3%) |
| 9M 2026 Shares Outstanding (diluted)GAAP | 3,183 | – | – |
| 9M 2026 Adjusted Consolidated EBITDAnon-GAAP | $11.30M | – | – |
| 9M 2026 Adjusted Consolidated EBITDA Marginnon-GAAP | 43.7% of sales | – | – |
| Adjusted Consolidated Trailing Twelve Months EBITDA as of September 30, 2026non-GAAP | $15.27M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| 3Q 2026 Domestic SalesDomestic sales reflected lower Filshie Clip System sales and lower direct sales of other devices; about 64% of the decline in domestic direct sales of other devices was due to lower neonatal device sales. | $4.92M | – | 16.1% lower |
| 3Q 2026 Domestic OEM SalesNew domestic OEM biopharma customer sales were $66 higher, partly offsetting zero sales to PendoTECH. | $677 | – | $41 higher |
| 3Q 2026 Domestic Filshie Device SalesManagement described this as a weak quarter following stronger sales in first half 2026 compared to first half 2025. | $656 | – | $534 lower |
| 3Q 2026 Outside-U.S. SalesThe decline included $200 lower net China BPM kit sales and $271 lower OUS Filshie device sales, partly offset by $619 in Orion Medical sales. | $3.70M | – | $249 (6.3%) lower |
| 9M 2026 Domestic SalesDomestic Filshie device sales were $305 (9.1%) lower and all other domestic direct device sales were $1,357 (11.3%) lower. Domestic OEM sales were about the same in both periods. | $15.64M | – | $1,664 (9.6%) lower |
| 9M 2026 Outside-U.S. SalesExcluding the $1,863 lower sales to the former China distributor net of sales to another distributor, OUS sales were $75 (0.6%) lower than in 2025. | $10.23M | – | $1,938 (15.9%) lower |
| 9M 2026 Worldwide Filshie Device SalesFilshie sales declined across the nine-month period. | not reported | – | $1,194 (15.7%) lower |
| 9M 2026 Worldwide NICU Device SalesNICU device sales were lower than in 9M 2025. | not reported | – | $1,105 (17.7%) lower |
Full year 2026 outlook
- Revenuetotal year 2026 consolidated sales decline close to 7%
- NoteUTMD expects the combined 4Q 2026 replacement sales to be higher than in both former 4Q periods.
Capital returns
- 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.
- UTMD paid $987 ($0.310/share) in dividends to stockholders in 3Q 2026 compared to $988 ($0.305/ share) paid in 3Q 2025.
- 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 cumulative excise tax on share repurchases since 2024 has been $292.
What drove it
- The two lost customers, PendoTECH and UTMD's prior China BPM kit distributor, represented combined sales of $491 in 3Q 2025 and $2,419 in 9M 2025; sales to both customers were zero in 2026.
- New biopharm customers contributed $116 in 3Q 2026 sales and $327 in 9M 2026 sales, although management said growth has been slower than expected.
- A new China BPM kit distributor contributed $195 in 3Q 2026 sales.
- Orion Medical Supplies Ltd, acquired at the end of August 2026, added $619 in 3Q 2026 sales.
- The completion of 15-year Femcare identifiable-asset amortization in 1Q 2026 reduced 3Q 2026 G&A expense versus the prior year.
- 3Q 2026 litigation expense was $186 lower than in 3Q 2025.
- Foreign exchange reduced 3Q 2026 sales by $14 and increased 9M 2026 sales by $170 compared with the same exchange rates in 2025.
Concerns
- Worldwide Filshie sales were $805 (32.7%) lower in 3Q 2026 and $1,194 (15.7%) lower in 9M 2026 than in the respective prior-year periods.
- Worldwide NICU device sales were $1,105 (17.7%) lower in 9M 2026 than in 9M 2025.
- 3Q gross profit margin declined to 56.1% from 57.1% because sales were lower without proportionally lower manufacturing direct labor and overhead costs.
- Management retained prior labor and overhead staffing to support anticipated biopharma control-device manufacturing growth, while trade shipments were lower.
- Net non-operating income declined to $606 in 3Q 2026 from $698 and to $1,860 in 9M 2026 from $2,043, essentially due to lower interest rates.
- In two of the remaining four courts out of nineteen, cases will apparently be going to trial in 2027; the other two remain awaiting decisions on summary judgment motions.
What to watch
- Whether combined 4Q 2026 replacement sales are higher than both former 4Q periods, as management expects.
- The pace of sales to new biopharma OEM customers, which management said has not developed as soon as projected at the beginning of the year.
- Demand from the new China BPM kit distributor, which management said might eventually match the prior distributor's demand.
- The contribution from Orion Medical following its end-of-August 2026 acquisition.
- Filshie and NICU device sales trends following the 3Q and 9M declines.
- The full-year 2026 consolidated sales outcome relative to management's projection of a decline close to 7%.
Balance sheet and cash flow
- Cash & Investments were $ 85,202 at September 30, 2026, compared to $ 87,528 at June 30, 2026, $ 85,756 at December 31, 2025, and $ 84,267 at September 30, 2025.
- UTMD had no debt at September 30, 2026.
- UTMD used $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.
- Accounts & Other Receivables, Net were 3,961 at September 30, 2026, compared to 3,522 at December 31, 2025.
- Inventories were 10,571 at September 30, 2026, compared to 7,935 at December 31, 2025.
- Total Current Liabilities were $ 4,740 at September 30, 2026, compared to $ 2,598 at December 31, 2025.
- Total Assets were $ 128,501 at September 30, 2026, compared to $ 122,542 at December 31, 2025.
- Stockholders’ Equity was 123,278 at September 30, 2026, compared to 119,268 at December 31, 2025.
- Current Ratio was 21.2 at September 30, 2026, compared to 37.6 at December 31, 2025.
- Days in Trade Receivables were 41 at September 30, 2026, compared to 35 days at December 31, 2025.
- Average Inventory Turns were 1.6 in 3Q 2026, compared to 2.0 for the last quarter of 2025.
- 2026 YTD ROE (before dividends) was 9%.
Analysis
UTMD reported lower third-quarter sales but higher profit. Net sales were $ 8,621, down (12.1%) from $ 9,812, while gross profit declined (13.6%) to 4,840 and gross profit margin fell to 56.1% from 57.1%. The sales shortfall was substantially tied to the absence of sales to PendoTECH and the former China BPM distributor. Worldwide Filshie sales also fell $805 (32.7%) in the quarter. New biopharm customers contributed $116, the new China distributor contributed $195, and Orion Medical added $619 in sales, but those additions did not offset the broader declines.
Operating leverage was favorable below gross profit because operating expenses dropped sharply. Operating income increased +7.0% to 2,795 and the operating margin expanded to 32.4% from 26.6%. G&A expense declined to 1,374 from 2,310, reflecting the completion of Femcare identifiable-intangible-asset amortization and lower litigation expense. Net income increased +5.9% to 2,787, supported by the higher operating income and an 18.1% average consolidated income tax provision rate versus 20.5%. Diluted EPS rose +6.8% to $ 0.876, aided by fewer diluted shares.
The nine-month results remain weaker than the prior-year period. Net sales were $ 25,873, down (12.2%), operating income was 8,009, down (10.6%), and net income was 8,077, down (7.4%). Margin performance improved over nine months despite the lower profit dollars: gross profit margin was 57.5% versus 56.8%, and operating income margin was 31.0% versus 30.4%. Management attributed the higher nine-month gross margin to a more favorable mix without $2,058 of very low gross-profit-margin sales to the former China BPM distributor.
Capital allocation included $2,963 of nine-month dividends, $905 of share repurchases, $500 of capital equipment purchases, and $5,011 for Orion Medical including legal costs and stamp duties. Cash and investments were $ 85,202 at September 30, 2026, versus $ 85,756 at December 31, 2025, and the company reported no debt. Inventories increased to 10,571 from 7,935, as UTMD intentionally increased work-in-process and finished-goods balances to maintain productivity during lower sales activity. The current ratio remained strong at 21.2, although below 37.6 at year-end 2025.
Management's current full-year outlook is for a total 2026 consolidated sales decline close to 7%, compared with the 12% year-to-date actual decline in 9M 2026. The expected improvement relies on fourth-quarter replacement sales that management expects to exceed both former fourth-quarter periods. The key operating issues are the pace of replacement biopharma and China BPM demand, the contribution from Orion Medical, and whether Filshie and NICU demand stabilizes after the reported declines.
Not in the filing
stated, not guessed- No operating cash flow was reported.
- No free cash flow was reported.
- No prior outlook section was provided; therefore no comparison with prior guidance is available.
- No GAAP or non-GAAP revenue, margin, operating expense, tax-rate, or EPS guidance was provided beyond the full-year 2026 consolidated sales decline projection.
- No named executive quotes were provided.
- No segment operating income or segment profitability was reported.
- No 3Q 2026 prior-quarter income-statement comparisons were reported.
- No 9M 2026 prior-quarter comparisons were reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.