Oct 29, 2026 earnings call — Strong Q3 results and Solo Pace acquisition
Merit reported total revenue of $416 million, up 8% year-over-year for Q3.
Revenue $0.4B (est $0.4B) · EPS $1.12 (est $1.04) · Next-quarter revenue outlook $0.4B
Key quotes
"Third quarter total constant currency growth was driven by 9% organic growth, which also exceeded the high end of our expectations, and follows the 9% organic growth we delivered in Q2."
"On October 13, 2026, we paid approximately $45 million to acquire all the remaining outstanding equity of Solo Pace."
"Importantly, we intend to host an investor event at our corporate headquarters on February 11, 2027."
Analyst Q&A 11
Overall growth and sustainability
Q (Jason Bednar · Piper Sandler): Is Merit in a strong growth cycle and can it sustain high organic growth? What could push growth higher or lower?
A: Management said growth is balanced across platforms, which gives them confidence finishing the year. They will not comment on next year now and will share more at a February investor event.
"And I think the key message, though, is that the growth is really balanced." — Martha Aronson (CEO)
Solo Pace and M&A strategy
Q (Henry · JPMorgan): How does Solo Pace fit the business and does Merit plan to change M&A scale or approach?
A: Management said Solo Pace fits well with Merit’s strengths and they are excited about having an integrated, automated kit with safety features. On M&A, they will keep pursuing tuck-in deals and evaluate whether to build internally or buy based on platform gaps.
"So to be able to do it with an integrated kit -- it can be automated, it can be preprogrammed, there's some safety features -- we're really excited about having that." — Martha Aronson (CEO)
Q4 guide and WRAPSODY update
Q (Zachary Gold · Raymond James): What drove the fourth-quarter guide and is there any change to assumptions? Also, how is WRAPSODY trending versus the $7 million target?
A: They said the fourth-quarter assumptions mostly flowed through Q3 beats, with one change: a roughly $4 million reduction in China outlook for the second half. On WRAPSODY, clinicians are excited and the product performs well clinically, but they face strong competition and expect a competitive battle.
"Really, the only change that we have is a small change to our China outlook." — Raul Parra (CFO)
OEM growth and MOTION study timing
Q (Joseph Conway · Needham): Is OEM growth a rebound and will it return to mid- to high-single-digit growth? When might MOTION study readout occur?
A: They said OEM grew about 15% in the quarter after a softer first half and remains best thought of as mid- to high-single-digit growth given lumpiness. For the MOTION study, they did not provide a timeline and said they will follow up later; they remain excited about embolics overall.
"And so I think as we've reiterated before, it's fair to assume we still consider that to be really in the mid- to high-single-digit range." — Martha Aronson (CEO)
Tariff impact on gross margin
Q (Michael Petusky · Barrington): How much did tariffs hurt gross margin and any updates on refunds or the $16 million headwind?
A: They said tariffs were not a significant part of the gross margin decline and highlighted other drivers: about 80 basis points from unfavorable manufacturing variances largely tied to raw materials and platinum, a 40 basis-point bonus true-up, and 25 basis points of higher freight. They expect roughly $1.3 million in tariff refunds from a vendor, likely in early next year, and have not changed the $16 million tariff impact assumption.
"The first one is 80 basis points of unfavorable manufacturing variances, most of it around raw materials and most of it around platinum." — Raul Parra (CFO)
Procedure volumes and Solo Pace sales model
Q (Sam Eiber · U.S. Bancorp BTIG): Are procedure volumes slowing and what learnings exist from distributing Solo Pace? How much sales hand-holding is needed?
A: They said they have not seen procedure volumes slow and the 9% growth quarter supports that. On Solo Pace, initial sales are consultative with rep support, but physicians learn quickly and become self-sufficient after a few uses.
"honestly, most of these physicians pick this up pretty quickly and then can run with it" — Martha Aronson (CEO)
Solo Pace financial impact and SCOUT MD
Q (Aidan Lahey · BofA): How material is the Solo Pace deal to revenue and was TAVR NCD timing a factor? Any lumpiness from SCOUT MD upgrades?
A: They said the transaction is immaterial to 2026 and slightly accretive to non-GAAP net income and EPS in 2027. The TAVR national coverage decision was not a timing factor; they pursued the deal because the team was ready. SCOUT MD has some capital-related lumpiness and pent-up demand helped oncology this quarter.
"financially, this transaction is immaterial to 2026." — Martha Aronson (CEO)
OpEx leverage and future R&D
Q (John Young · Canaccord): How much of OpEx improvement is timing versus lasting efficiency? Any 2027 R&D step-ups? Also, do you sell a guidewire with Solo Pace?
A: They would not comment on 2027 specifics but said OpEx leverage shows discipline: sales and marketing were invested in while G&A offsets those investments, and overall they feel good about control. For Solo Pace, the FUSION Kit includes an ASAHI guidewire.
"So I would say, generally speaking, we just feel really good about the control that we're showing." — Raul Parra (CFO)
China market outlook and investment approach
Q (David Rescott · Baird): How has visibility in China changed and does the Solo Pace deal suggest new M&A styles like minority investments?
A: They said Merit has historically used minority investments as a model and may continue to do so to monitor technologies before full acquisition. On China, they described increased pressure: government encouragement to buy local, VBP and scrutiny on foreign-sponsored education, making timing uncertain; they are running pilots for China-for-China manufacturing and redirecting investments to hedge the China exposure.
"we're also hearing a lot more about the government cracking down on physicians and really encouraging them to be buying local Chinese products and making sure that they're using the lowest-priced products and preferably products made in China, for China," — Martha Aronson (CEO)
Inventory increase and View Point integration
Q (James Sidoti · Sidoti & Company): Why is inventory up about $60 million and when will it normalize? Is View Point on track to hit targets?
A: They said part of the inventory increase is acquisition related but not a significant part; the larger reasons were strategic stocking of raw materials after shortages and to support stronger-than-expected sales, and they expect to normalize inventory with a focused plan. On View Point, integration is proceeding but some aspects are slower than hoped; they remain positive on long-term opportunity.
"part of the increase is acquisition related, not a significant part of it." — Raul Parra (CFO)
Vascular and embolics growth details
Q (Keith Hinton · Freedom): Is the vascular step-up one-time or sustainable, and where is embolics growth coming from?
A: They said growth this quarter was balanced across platforms and will discuss longer-term platform drivers at an investor event. For embolics, growth is coming in both spheres and microcatheters across multiple indications, and they are pleased with their position.
"I'd say we're seeing it both in terms of the growth, both in the spheres and in the microcatheters." — Martha Aronson (CEO)