MERIT MEDICAL SYSTEMS INC 10-K

Item 8. Financial Statements and Supplementary Data. REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the stockholders and the Board of Directors of Merit Medical Systems, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Merit Medical Systems, Inc. and subsidiaries (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes and the schedules⁠ listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 24, 2026, expressed an unqualified opinion on the Company's internal control over financial reporting. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. ​ 47 Table of Contents Inventories - Provision for estimated excess, slow moving and obsolete inventories – Refer to Note 1 to the financial statements Critical Audit Matter Description Inventories are valued at the lower of cost, at approximate costs determined on a first-in, first-out method, or net realizable value. The Company reviews inventories on hand and records provisions based on estimated excess, slow moving and obsolete inventories. The valuation of inventories includes an assessment of future product demand based on historical sales and raw material usage and product expiration. We identified the provision for estimated excess, slow moving and obsolete inventories as a critical audit matter because of management’s significant judgment and estimates in determining the provision for estimated excess, slow moving and obsolete inventories primarily around forecasted product demand derived from historical experience of product sales and production raw material usage. This required a high degree of auditor judgment and an increased extent of effort. How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to management’s estimate of the valuation of excess, slow moving and obsolete inventories included the following, among others: ​ ● We tested the effectiveness of internal controls over the provision for estimated excess, slow moving and obsolete inventories. ● We evaluated management’s ability to accurately estimate the provision for estimated excess, slow moving and obsolete inventories by comparing actual write-downs of inventories to management’s historical estimates. ● We tested the calculation of the estimated excess, slow moving and obsolete inventories, on a sample basis, including the completeness and accuracy of the data used in the calculation, such as future product demand based on historical sales and raw material usage and product expiration. ● We assessed the reasonableness of the assumptions used in the calculations of the provision for estimated excess, slow moving and obsolete inventories by developing an independent expectation and comparing our independent expectation to the results of the Company’s calculation. ● We tested the mathematical accuracy of the Company’s calculation of excess, slow moving and obsolete inventories. Intangible Assets – Biolife Developed Technology – Refer to Note 3 to the financial statements Critical Audit Matter Description On May 16, 2025, the Company entered into a merger agreement with Biolife Delaware, L.L.C. (“Biolife”), to become a wholly-owned subsidiary of the Company. The Company accounted for this transaction under the acquisition method of accounting for business combinations. Accordingly, the purchase price was allocate⁠d to the tangible and intangible assets acquired based on their respective fair values, including developed technology intangible assets of $90.5 million. The determination of the fair value of the developed technology intangible assets required management to make significant estimates and assumptions related to future cash flows and the discount rate. We identified the valuation of the acquired developed technology intangible assets from Biolife as a critical audit matter because of the significant estimates and assumptions management made to determine the fair value of the acquired developed technology. This required a high degree of auditor judgment and an increased extent of effort, including the involvement of our fair value specialists, when performing audit procedures to evaluate the reasonableness of management’s forecasts of future cash flows and the discount rate. 48 Table of Contents How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to the estimates of future cash flows and discount rate for the acquired Biolife developed technology intangible assets included the following, among others: ​ ● We tested the effectiveness of internal controls over the valuation of the developed technology intangible assets, including those over estimates of future cash flows and the selection of the discount rate. ● We assessed the reasonableness of management’s estimated cash flows by inquiring of management regarding its processes for developing estimated cash flows and comparing the estimates to historical results achieved by the predecessor, historical results of the Company and other transactions completed in recent years, and comparable peer companies. ● We performed sensitivity analyses of the significant assumptions used in the developed technology valuation model to evaluate the change in fair value resulting from changes in the significant assumptions. ● With the assistance of our fair value specialists, we (1) evaluated the reasonableness of the valuation methodology; (2) evaluated the reasonableness of the discount rate through comparing the data underlying the determination of the discount rate to independent sources and developed a range of independent estimates and compared it to the discount rate selected by management; and (3) tested the mathematical accuracy of the discounted cash flow calculations. ● We evaluated whether the estimated revenue growth rates and cash flows were consistent with evidence obtained as part of a retrospective review of actual post-transaction financial results. ​ /s/ DELOITTE & TOUCHE LLP ​ ​ ​ Salt Lake City, Utah ​ February 24, 2026 ​ We have served as the Company’s auditor since 1988. ​ ​ ​ 49 Table of Contents ​ MERIT MEDICAL SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ December 31, ASSETS ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ ​ ​ ​ ​ Current assets: ​ ​ ​ ​ Cash and cash equivalents ​ $ 446,404 ​ $ 376,715 Trade receivables — net of allowance for credit losses — 2025 — $ 10,136 and 2024 — $ 9,729 ​ 203,710 ​ 190,243 Other receivables ​ 17,773 ​ 16,588 Inventories ​ 333,705 ​ 306,063 Prepaid expenses and other current assets ​ 31,493 ​ 28,544 Prepaid income taxes ​ 4,941 ​ 3,286 Income tax refund receivables ​ 2,128 ​ 2,335 Total current assets ​ 1,040,154 ​ 923,774 ​ ​ ​ ​ ​ ​ ​ Property and equipment: ​ ​ ​ ​ Land and land improvements ​ 30,465 ​ 25,846 Buildings ​ 200,046 ​ 192,296 Manufacturing equipment ​ 365,277 ​ 340,864 Furniture and fixtures ​ 60,883 ​ 61,321 Leasehold improvements ​ 65,236 ​ 58,770 Construction-in-progress ​ 82,939 ​ 58,673 Total property and equipment ​ 804,846 ​ 737,770 Less accumulated depreciation ​ ( 376,445 ) ​ ( 351,605 ) Property and equipment — net ​ 428,401 ​ ​ 386,165 ​ ​ ​ ​ ​ ​ ​ Other assets: ​ ​ ​ ​ Intangible assets: ​ ​ ​ ​ Developed technology — net of accumulated amortization — 2025 — $ 452,525 and 2024 — $ 377,993 ​ 465,940 ​ 431,766 Other — net of accumulated amortization — 2025 — $ 96,436 and 2024 — $ 85,343 ​ 71,714 ​ 66,499 Goodwill ​ 506,837 ​ 463,511 Deferred income tax assets ​ 7,049 ​ 16,044 Right-of-use operating lease assets ​ ​ 87,600 ​ ​ 65,508 Other assets ​ 78,227 ​ 65,336 Total other assets ​ 1,217,367 ​ 1,108,664 ​ ​ ​ ​ ​ ​ ​ Total assets ​ $ 2,685,922 ​ $ 2,418,603 ​ See notes to consolidated financial statements. (continued) ​ ​ 50 Table of Contents MERIT MEDICAL SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ December 31, LIABILITIES AND STOCKHOLDERS’ EQUITY ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ ​ ​ ​ ​ Current liabilities: ​ ​ ​ ​ ​ Trade payables ​ $ 60,551 ​ $ 68,502 Accrued expenses ​ 159,486 ​ 134,077 Short-term operating lease liabilities ​ ​ 10,876 ​ ​ 10,331 Income taxes payable ​ 8,851 ​ 3,492 Total current liabilities ​ 239,764 ​ 216,402 ​ ​ ​ ​ ​ ​ ​ Long-term debt ​ 734,038 ​ 729,551 Deferred income tax liabilities ​ 19,665 ​ 240 Liabilities related to unrecognized tax benefits ​ 2,248 ​ 2,118 Deferred compensation payable ​ 17,542 ​ 19,197 Deferred credits ​ 1,398 ​ 1,502 Long-term operating lease liabilities ​ ​ 76,658 ​ 54,783 Other long-term obligations ​ 10,306 ​ 15,451 Total liabilities ​ 1,101,619 ​ 1,039,244 ​ ​ ​ ​ ​ ​ ​ Commitments and contingencies ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stockholders' equity: ​ ​ ​ ​ Preferred stock — 5,000 shares authorized; no shares issued as of December 31, 2025 and December 31, 2024 ​ — ​ — Common stock, no par value — 100,000 shares authorized; issued and outstanding as of December 31, 2025 - 59,424 and December 31, 2024 - 58,743 ​ 763,909 ​ 703,219 Retained earnings ​ 824,030 ​ 695,541 Accumulated other comprehensive loss ​ ( 3,636 ) ​ ( 19,401 ) Total stockholders’ equity ​ 1,584,303 ​ 1,379,359 ​ ​ ​ ​ ​ ​ ​ Total liabilities and stockholders’ equity ​ $ 2,685,922 ​ $ 2,418,603 ​ ​ ​ See notes to consolidated financial statements. (concluded) ​ ​ 51 Table of Contents MERIT MEDICAL SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 Net sales $ 1,515,906 ​ $ 1,356,514 ​ $ 1,257,366 Cost of sales 777,636 ​ 713,181 ​ 673,494 Gross profit 738,270 ​ 643,333 ​ 583,872 ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses: ​ ​ ​ ​ ​ Selling, general and administrative 455,214 ​ 399,731 ​ 373,676 Research and development 97,352 ​ 87,466 ​ 82,728 Impairment charges — ​ — ​ 270 Contingent consideration expense 984 ​ 443 ​ 1,704 Acquired in-process research and development — ​ — ​ 1,550 Total operating expenses 553,550 ​ 487,640 ​ 459,928 ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from operations 184,720 ​ 155,693 ​ 123,944 ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense): ​ ​ ​ ​ ​ Interest income 15,070 ​ 26,230 ​ 2,456 Interest expense ( 26,461 ) ​ ( 31,219 ) ​ ( 15,511 ) Other (expense) income — net ( 2,392 ) ​ ( 711 ) ​ 1,200 Total other expense — net ( 13,783 ) ​ ( 5,700 ) ​ ( 11,855 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Income before income taxes 170,937 ​ 149,993 ​ 112,089 ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax expense 42,448 ​ 29,636 ​ 17,678 ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income $ 128,489 ​ $ 120,357 ​ $ 94,411 ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per common share ​ ​ ​ ​ ​ Basic $ 2.17 ​ $ 2.07 ​ $ 1.64 Diluted $ 2.13 ​ $ 2.03 ​ $ 1.62 ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding ​ ​ ​ ​ ​ Basic 59,158 ​ 58,218 ​ 57,593 Diluted 60,460 ​ 59,365 ​ 58,356 ​ See notes to consolidated financial statements. ​ 52 Table of Contents MERIT MEDICAL SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 Net income $ 128,489 ​ $ 120,357 ​ $ 94,411 Other comprehensive income (loss): ​ ​ ​ ​ ​ Cash flow hedges ( 1,279 ) ​ 1,444 ​ ( 3,570 ) Income tax benefit (expense) 302 ​ ( 341 ) ​ 866 Foreign currency translation adjustment 17,955 ​ ( 9,224 ) ​ 2,959 Income tax (expense) benefit ( 1,213 ) ​ 54 ​ ( 39 ) Total other comprehensive income (loss) 15,765 ​ ( 8,067 ) ​ 216 Total comprehensive income $ 144,254 ​ $ 112,290 ​ $ 94,627 ​ See notes to consolidated financial statements. ​ 53 Table of Contents MERIT MEDICAL SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Stock ​ Retained ​ Accumulated Other ​ ​ ​ ​ ​ ​ ​ Shares ​ ​ ​ Amount ​ ​ ​ Earnings ​ ​ ​ Comprehensive Loss ​ ​ ​ Total BALANCE — January 1, 2023 57,306 ​ 675,174 ​ 480,773 ​ ( 11,550 ) ​ $ 1,144,397 Net income ​ ​ ​ ​ ​ ​ 94,411 ​ ​ ​ ​ 94,411 Other comprehensive income ​ ​ ​ ​ ​ ​ ​ ​ ​ 216 ​ 216 Stock-based compensation expense ​ ​ ​ 19,043 ​ ​ ​ ​ ​ ​ ​ 19,043 Options exercised 606 ​ ​ 20,312 ​ ​ ​ ​ ​ ​ ​ 20,312 Issuance of common stock under Employee Stock Purchase Plans 15 ​ ​ 1,081 ​ ​ ​ ​ ​ ​ ​ 1,081 Shares issued from time-vested restricted stock units ​ 92 ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ — Purchase of capped call option ​ — ​ ​ ( 66,528 ) ​ ​ ​ ​ ​ ​ ​ ​ ( 66,528 ) Shares surrendered in exchange for payment of payroll tax liabilities ​ ( 75 ) ​ ​ ( 5,123 ) ​ ​ ​ ​ ​ ​ ​ ​ ( 5,123 ) Shares surrendered in exchange for exercise of stock options ​ ( 86 ) ​ ​ ( 5,809 ) ​ ​ ​ ​ ​ ​ ​ ( 5,809 ) BALANCE — December 31, 2023 57,858 ​ 638,150 ​ 575,184 ​ ( 11,334 ) ​ 1,202,000 Net income ​ ​ ​ ​ ​ ​ ​ 120,357 ​ ​ ​ ​ 120,357 Other comprehensive loss ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 8,067 ) ​ ( 8,067 ) Stock-based compensation expense ​ ​ ​ ​ 25,753 ​ ​ ​ ​ ​ ​ ​ 25,753 Options exercised ​ 824 ​ ​ 39,746 ​ ​ ​ ​ ​ ​ ​ 39,746 Issuance of common stock under Employee Stock Purchase Plans ​ 14 ​ ​ 1,162 ​ ​ ​ ​ ​ ​ ​ 1,162 Shares issued from time-vested restricted stock units ​ 68 ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ — Shares surrendered in exchange for payment of payroll tax liabilities ​ ( 21 ) ​ ​ ( 1,592 ) ​ ​ ​ ​ ​ ​ ​ ​ ( 1,592 ) BALANCE — December 31, 2024 58,743 ​ 703,219 ​ 695,541 ​ ( 19,401 ) ​ 1,379,359 Net income ​ ​ ​ ​ ​ ​ ​ 128,489 ​ ​ ​ ​ 128,489 Other comprehensive income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 15,765 ​ 15,765 Stock-based compensation expense ​ ​ ​ ​ 42,006 ​ ​ ​ ​ ​ ​ ​ 42,006 Options exercised ​ 691 ​ ​ 37,701 ​ ​ ​ ​ ​ ​ ​ 37,701 Issuance of common stock under Employee Stock Purchase Plans ​ 16 ​ ​ 1,375 ​ ​ ​ ​ ​ ​ ​ 1,375 Shares issued from time-vested restricted stock units ​ 192 ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ — Shares surrendered in exchange for payment of payroll tax liabilities ​ ( 100 ) ​ ​ ( 9,529 ) ​ ​ ​ ​ ​ ​ ​ ( 9,529 ) Shares surrendered in exchange for exercise of stock options ​ ( 118 ) ​ ​ ( 10,863 ) ​ ​ ​ ​ ​ ​ ​ ( 10,863 ) BALANCE — December 31, 2025 59,424 ​ $ 763,909 ​ $ 824,030 ​ $ ( 3,636 ) ​ $ 1,584,303 ​ See notes to consolidated financial statements. ​ 54 Table of Contents MERIT MEDICAL SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ 2023 CASH FLOWS FROM OPERATING ACTIVITIES: ​ ​ ​ ​ ​ Net income ​ $ 128,489 ​ $ 120,357 ​ $ 94,411 Adjustments to reconcile net income to net cash provided by operating activities: ​ ​ ​ ​ ​ ​ Depreciation and amortization ​ 123,168 ​ 102,709 ​ 89,985 Gain on disposition of business ​ ( 249 ) ​ — ​ ( 431 ) Loss on sale or abandonment of property and equipment ​ 2,302 ​ 1,490 ​ 5,838 Write-off of certain intangible assets and other long-term assets ​ 313 ​ 456 ​ 506 Acquired in-process research and development ​ — ​ — ​ 1,550 Amortization of right-of-use operating lease assets ​ ​ 11,481 ​ ​ 12,023 ​ ​ 11,307 Fair value adjustments related to contingent consideration liabilities ​ ​ 984 ​ ​ 443 ​ ​ 1,704 Amortization of deferred credits ​ ( 103 ) ​ ( 103 ) ​ ( 104 ) Amortization and write-off of long-term debt issuance costs ​ 5,656 ​ 6,769 ​ 1,717 Deferred income taxes ​ 5,214 ​ ( 14,873 ) ​ ( 12,643 ) Stock-based compensation expense ​ 43,460 ​ 28,473 ​ 21,333 Changes in operating assets and liabilities, net of acquisitions: ​ ​ ​ ​ ​ ​ Trade receivables ​ ( 7,341 ) ​ ( 13,686 ) ​ ( 11,916 ) Other receivables ​ 4,368 ​ ( 6,482 ) ​ 2,429 Inventories ​ ( 21,602 ) ​ ( 2,287 ) ​ ( 32,105 ) Prepaid expenses and other current assets ​ ( 2,520 ) ​ ( 4,295 ) ​ 1,281 Prepaid income taxes ​ ( 1,612 ) ​ 709 ​ ( 92 ) Income tax refund receivables ​ 246 ​ ( 1,536 ) ​ ( 58 ) Other assets ​ ( 1,697 ) ​ ( 6,066 ) ​ ( 5,976 ) Trade payables ​ 1,011 ​ ( 2,314 ) ​ ( 7,297 ) Accrued expenses ​ 14,262 ​ 9,715 ​ ( 2,484 ) Income taxes payable ​ 5,230 ​ ( 1,785 ) ​ ( 1,685 ) Liabilities related to unrecognized tax benefits ​ 80 ​ 206 ​ — Deferred compensation payable ​ ( 1,655 ) ​ 2,030 ​ 1,903 Operating lease liabilities ​ ​ ( 11,167 ) ​ ​ ( 12,183 ) ​ ​ ( 11,492 ) Other long-term obligations ​ ( 947 ) ​ 1,029 ​ ( 2,530 ) Total adjustments ​ 168,882 ​ 100,442 ​ 50,740 Net cash, cash equivalents, and restricted cash provided by operating activities ​ 297,371 ​ 220,799 ​ 145,151 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CASH FLOWS FROM INVESTING ACTIVITIES: ​ ​ ​ ​ ​ ​ Capital expenditures for: ​ ​ ​ ​ ​ ​ Property and equipment ​ ( 81,716 ) ​ ( 35,140 ) ​ ( 34,290 ) Intangible assets ​ ( 3,120 ) ​ ( 2,903 ) ​ ( 2,411 ) Proceeds from asset and business dispositions ​ 303 ​ 5 ​ 632 Cash paid for notes receivable and other investments ​ ( 18,084 ) ​ ( 10,433 ) ​ ( 4,755 ) Cash paid in acquisitions, net of cash acquired ​ ( 144,769 ) ​ ( 320,182 ) ​ ( 134,523 ) Net cash, cash equivalents, and restricted cash used in investing activities ​ $ ( 247,386 ) ​ $ ( 368,653 ) ​ $ ( 175,347 ) ​ ​ ​ See notes to consolidated financial statements. (continued) ​ ​ ​ 55 Table of Contents MERIT MEDICAL SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ 2024 ​ 2023 CASH FLOWS FROM FINANCING ACTIVITIES: ​ ​ ​ ​ ​ Proceeds from issuance of common stock ​ $ 28,213 ​ $ 40,908 ​ $ 15,584 Proceeds from issuance of long-term debt ​ — ​ — ​ 1,199,203 Payments on long-term debt ​ ​ — ​ ​ ( 99,063 ) ​ ​ ( 579,624 ) Purchase of capped call option ​ ​ — ​ ​ — ​ ​ ( 66,528 ) Long-term debt issuance costs ​ — ​ — ​ ( 677 ) Contingent payments related to acquisitions ​ ( 2,685 ) ​ ( 261 ) ​ ( 3,569 ) Payment of taxes related to an exchange of common stock ​ ( 9,529 ) ​ ( 1,592 ) ​ ( 5,123 ) Net cash, cash equivalents, and restricted cash provided by (used in) financing activities ​ 15,999 ​ ( 60,008 ) ​ 559,266 Effect of exchange rates on cash, cash equivalents, and restricted cash ​ 3,798 ​ ( 2,515 ) ​ ( 484 ) Net increase (decrease) in cash, cash equivalents and restricted cash ​ 69,782 ​ ( 210,377 ) ​ 528,586 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CASH, CASH EQUIVALENTS AND RESTRICTED CASH: ​ ​ ​ ​ ​ ​ Beginning of period ​ ​ 378,767 ​ ​ 589,144 ​ ​ 60,558 End of period ​ $ 448,549 ​ $ 378,767 ​ $ 589,144 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEETS: ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ ​ 446,404 ​ ​ 376,715 ​ ​ 587,036 Restricted cash reported in prepaid expenses and other current assets ​ ​ 2,145 ​ ​ 2,052 ​ ​ 2,108 Total cash, cash equivalents and restricted cash ​ $ 448,549 ​ $ 378,767 ​ $ 589,144 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION ​ ​ ​ ​ ​ ​ Cash paid during the period for: ​ ​ ​ ​ ​ ​ Interest (net of capitalized interest of $ 1,398 , $ 1,005 and $ 1,272 , respectively) ​ $ 20,991 ​ $ 23,244 ​ $ 14,051 Income taxes ​ ​ 31,392 ​ ​ 45,047 ​ ​ 31,534 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES ​ ​ ​ ​ ​ ​ Property and equipment purchases in accounts payable ​ $ 3,136 ​ $ 13,244 ​ $ 8,267 Acquisition purchases in accrued expenses and other long-term obligations ​ ​ 3,886 ​ ​ 4,956 ​ ​ 3,713 Merit common stock surrendered ( 118 , 0 and 86 shares, respectively) in exchange for exercise of stock options ​ ​ 10,863 ​ ​ — ​ ​ 5,809 Right-of-use operating lease assets obtained in exchange for operating lease liabilities ​ ​ 32,684 ​ ​ 9,947 ​ ​ 8,891 ​ See notes to consolidated financial statements. (concluded) ​ ​ 56 Table of Contents MERIT MEDICAL SYSTEMS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization . Merit Medical Systems, Inc. (“Merit,” “we,” or “us”) designs, develops, manufactures and markets single-use medical products for interventional and diagnostic procedures. For financial reporting purposes, we report our operations in two operating segments: cardiovascular and endoscopy. Our cardiovascular segment consists of cardiology and radiology medical device products which assist in diagnosing and treating coronary artery disease, peripheral vascular disease and other non-vascular diseases and includes embolotherapeutic, cardiac rhythm management, electrophysiology, critical care, and interventional oncology and spine devices. Our endoscopy segment consists of gastroenterology and pulmonology devices which assist in the palliative treatment of expanding esophageal, tracheobronchial and biliary strictures caused by malignant tumors. Within those two operating segments, we offer products focused in five product categories: peripheral intervention, cardiac intervention, custom procedural solutions, original equipment manufacturer (“ OEM”) and endoscopy. We manufacture our products in plants located in the U.S., Mexico, The Netherlands, Ireland, France, Brazil and Singapore. We export sales to dealers and have direct or modified direct sales forces in the U.S., Canada, Western Europe, Australia, Brazil, Japan, China, Malaysia, South Korea, UAE, India, New Zealand and South Africa (see Note 13 Segment Reporting and Foreign Operations ). Principles of Consolidation and Basis of Presentation . Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The consolidated financial statements include our wholly owned subsidiaries. Intercompany balances and transactions have been eliminated. Amounts presented in this report are rounded, while percentages and earnings per share amounts presented are calculated from the underlying amounts. Use of Estimates in Preparing Financial Statements . The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents . We consider interest-bearing deposits and money market funds with an original maturity date of three months or less to be cash equivalents. As of December 31, 2025 and 2024, we had restricted cash for the payment of certain import and other taxes for our subsidiary in China of $ 2.1 million and $ 2.1 million, respectively, which was reported within prepaid expenses and other assets on our consolidated balance sheets. Receivables . Trade accounts receivable are recorded at the net invoice value and are not interest-bearing. An allowance for credit losses on trade receivables is recorded based on our expectation of credit losses and is based upon our historical bad debt experience, current economic conditions, expectations of future economic conditions and management’s evaluation of our ability to collect individual outstanding balances. Once collection efforts have been exhausted and a receivable is deemed to be uncollectible, such balance is charged against the allowance for credit losses. Inventories . We value our inventories at the lower of cost or net realizable value. Cost is computed using standard cost which approximates actual cost on a first-in, first-out basis and includes material, labor and manufacturing overhead. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. We review inventories on hand and record provisions based on estimated excess, slow moving and obsolete inventories, as well as inventories with a carrying value in excess of net realizable value. The review of the valuation of inventories includes an assessment of future product demand based on historical sales and raw material usage and product expiration. 57 Table of Contents Goodwill and Intangible Assets . Goodwill represents the difference between the purchase price and the fair value of assets and liabilities acquired in a business combination. Goodwill is not amortized as the Company reviews goodwill for impairment annually as of July 1 or if events or changes in circumstances indicate the occurrence of a triggering event. The Company reviews goodwill for impairment by initially considering qualitative factors to determine whether it is necessary to perform a quantitative analysis. If it is determined that it is more likely than not that the fair value of reporting unit is less than its carrying amount, we perform a quantitative assessment, which uses a combination of a guideline public company market-based approach and a discounted cash flow income-based approach. The quantitative assessment considers whether the carrying amount of a reporting unit exceeds its fair value, in which case an impairment charge is recorded to the extent the reporting unit’s carrying value exceeds its fair value. If it is determined that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, it is unnecessary to perform a quantitative analysis. The Company may elect to bypass the qualitative assessment and proceed directly to performing a quantitative analysis. Based on the qualitative analysis performed in 2025, the Company determined that there was no goodwill impairment. Finite-lived intangible assets including developed technology, customer lists, distribution agreements, license agreements, trademarks and patents are subject to amortization. Intangible assets are amortized over their estimated useful life on a straight-line basis, except for customer lists, which are generally amortized on an accelerated basis. Estimated useful lives are determined considering the period the assets are expected to contribute to future cash flows. We evaluate long-lived assets, including amortizing intangible assets, for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. We perform the impairment analysis at the asset group for which the lowest level of identifiable cash flows are largely independent of the cash flows of other assets and liabilities. We compare the carrying value of the asset group to the undiscounted cash flows expected to result from the asset group and determine whether the carrying amount is recoverable. We determine the fair value of each asset group based on estimated future cash flows discounted back to their present value using a discount rate that reflects the risk profiles of the underlying activities. D uring the years ended December 31, 2025, 2024 and 2023, we recorded no impairment charges related to our goodwill and intangible assets. Long-Lived Assets . We periodically review the carrying amount of our long-lived assets, including property and equipment, intangible assets, and right-of-use operating lease assets, for impairment. An asset is considered impaired when undiscounted estimated future cash flows are less than the carrying amount of the asset based on the criteria for accounting for the impairment or disposal of long-lived assets under Accounting Standards Codification (“ASC”) 360, Property, Plant and Equipment . In the event the carrying amount of such asset is not considered recoverable, the asset is adjusted to its fair value. Fair value is generally determined based on discounted future cash flow. The Company recorded write downs of property and equipment in each of the years ended December 31, 2025, 2024 and 2023. Property and Equipment . Property and equipment is stated at the historical cost of construction or purchase. Construction costs include interest costs capitalized during construction. Maintenance and repairs of property and equipment are charged to operations as incurred. Leasehold improvements are amortized over the lesser of the base term of the lease or estimated life of the leasehold improvements. Construction-in-process consists of internal and external costs for new buildings and various production equipment being constructed. Assets in construction-in-process will commence depreciating once the asset has been placed in service. Depreciation is computed using the straight-line method over estimated useful lives as follows: ​ ​ ​ ​ Buildings ​ ​ ​ 40 years Manufacturing equipment ​ 4 - 20 years Furniture and fixtures ​ 3 - 20 years Land improvements ​ 10 - 20 years Leasehold improvements ​ 4 - 25 years ​ Depreciation expense related to property and equipment for the years ended December 31, 2025, 2024 and 2023 was $ 38.2 million, $ 37.2 million, and $ 34.0 million, respectively. 58 Table of Contents Deferred Compensation . We have a deferred compensation plan that permits certain management employees to defer a portion of their salary until the future. We established a Rabbi trust to finance obligations under the plan with corporate-owned variable life insurance contracts. The cash surrender value totaled $ 22.8 million and $ 20.7 million at December 31, 2025 and 2024, respectively, which is included in other assets in our consolidated balance sheets. We have recorded a deferred compensation payable of $ 17.5 million and $ 19.2 million at December 31, 2025 and 2024, respectively, to reflect the liability to our employees under this plan. Other Assets . Other assets as of December 31, 2025 and 2024 consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Investments in privately held companies ​ $ 28,743 ​ $ 22,832 Deferred compensation plan assets ​ ​ 22,814 ​ ​ 20,716 Long-term notes receivable, net ​ ​ 16,252 ​ ​ 9,423 Other ​ 10,418 ​ 12,365 Total ​ $ 78,227 ​ $ 65,336 ​ We analyze our investments in privately held companies to determine if they should be accounted for using the equity method based on our ability to exercise significant influence over operating and financial policies of the investment whereby we record our proportionate share of the investee’s earnings or losses; amortization of differences between our investment basis and underlying equity in net assets of the investee, excluding the component representing goodwill; and impairment, if any, as a component of other income (expense) in our consolidated statements of income. Such adjustments were not material for the years ended December 31, 2025, 2024 and 2023. Investments not accounted for under the equity method of accounting are accounted for at cost minus impairment, if applicable, plus or minus changes in valuation resulting from observable transactions for identical or similar investments. We paid $ 6.6 million, $ 3.8 million, and $ 4.0 million during the years ended December 31, 2025, 2024 and 2023 in the acquisition of additional equity investments and have no cumulative impairments or other fair value adjustments associated with our existing investments. Refer to Note 15, Fair Value Measurements , for details of impairments of securities previously classified as equity investments. Other Long-term Obligations. Other long-term obligations as of December 31, 2025 and 2024 consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Contingent consideration liabilities ​ $ 1,339 ​ $ 3,128 Other long-term obligations ​ ​ 8,967 ​ ​ 12,323 Total ​ $ 10,306 ​ $ 15,451 ​ In connection with a business combination, any contingent consideration is recorded at fair value on the acquisition date based upon the consideration expected to be transferred in the future. We re-measure the estimated liability each quarter based upon changes in revenue estimates, changes in the probability of achieving relevant milestones and changes in the discount rate or expected period of payment. Changes in the estimated fair value are recorded through operating expense in our consolidated statements of income. Revenue Recognition . We sell our medical products through a direct sales force in the U.S. and through OEM relationships, custom procedure tray manufacturers and a combination of direct sales force and independent distributors in international markets. Revenue is recognized when a customer obtains control of promised goods based on the consideration we expect to receive in exchange for these goods. This core principle is achieved through the following steps: 59 Table of Contents Identify the contract with the customer . A contract with a customer exists when (i) we enter into an enforceable contract with a customer that defines each party’s rights regarding the goods to be transferred and identifies the payment terms related to these goods, (ii) the contract has commercial substance and (iii) we determine that collection of substantially all consideration for services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. We do not have significant costs to obtain contracts with customers. For commissions on product sales, we have elected the practical expedient to expense the costs as incurred if the amortization period would have been one year or less. Identify the performance obligations in the contract . Generally, our contracts with customers do not include multiple performance obligations to be completed over a period of time. Our performance obligations generally relate to delivering single-use medical products to a customer, subject to the shipping terms of the contract. Limited warranties are provided, under which we typically accept returns and provide either replacement parts or refunds. We do not have significant returns. We do not typically offer extended warranty or service plans, except in limited cases which are not material. Determine the transaction price . Payment by the customer is due under customary fixed payment terms, and we evaluate if collectability is reasonably assured. Our contracts do not typically contain a financing component. Revenue is recorded at the net sales price, which includes estimates of variable consideration such as product returns, rebates, discounts, and other adjustments. The estimates of variable consideration are based on historical payment experience, historical and projected sales data, and current contract terms. Variable consideration is included in revenue only to the extent that it is probable that a significant reversal of the revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues. Allocate the transaction price to performance obligations in the contract . We typically do not have multiple performance obligations in our contracts with customers. As such, we generally recognize revenue upon transfer of the product to the customer’s control at contractually stated pricing. Recognize revenue when or as we satisfy a performance obligation. We generally satisfy performance obligations at a point in time upon either shipment or delivery of goods, in accordance with the terms of each contract with the customer. We do not have significant service revenue. Contract assets are recognized for the future right to invoice customers, and contract liabilities are recognized for unearned revenue if payment is received prior to our fulfillment of performance obligations. We do not have material contract assets or contract liabilities. Reserves are recorded as a reduction in net sales and are not considered material to our consolidated statements of income for the years ended December 31, 2025, 2024 and 2023. In addition, we invoice our customers for taxes assessed by governmental authorities, such as sales tax and value-added taxes. We present these taxes on a net basis. Shipping and Handling . When billed to our customers, shipping and handling charges are included in net sales for the applicable period, and the corresponding shipping and handling expense is reported in cost of sales. Cost of Sales . We include product costs (i.e., material, direct labor and overhead costs), shipping and handling expense, product royalty expense, developed technology amortization expense, production-related depreciation expense and product license agreement expense in cost of sales. Research and Development . Research and development costs, including new product development, clinical trials, and regulatory compliance, are expensed as incurred. 60 Table of Contents Restructuring. Restructuring charges consist primarily of termination benefits for employees effected by certain site consolidation and production line optimization transfers related to our transformation initiatives. We account for involuntary employee termination benefits that represent a one-time benefit in accordance with ASC 420, Exit or Disposal Cost Obligations . Severance costs accounted for under ASC 420 are recognized when management with the proper level of authority commits to a restructuring plan and communicates these actions to employees and other applicable criteria. We record such costs into expense over the employee’s future service period, if any. Other exit costs are accounted for under ASC 420 and are either deferred or expensed as incurred based on the nature of the expense. We recorded restructuring charges of $ 5.9 million, $ 3.1 million and $ 2.7 million for the years ended December 31, 2025, 2024 and 2023, respectively. These expenses are reflected within selling, general and administrative expenses within our consolidated statements of income. The restructuring reserve balance as of December 31, 2025 and 2024 was $ 0.2 million and $ 1.1 million, respectively. Income Taxes . Under our accounting policies, we initially recognize a tax position in our financial statements when it becomes more likely than not that the position will be sustained upon examination by the tax authorities. Such tax positions are initially and subsequently measured as the largest amount of tax positions that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authorities assuming full knowledge of the position and all relevant facts. Although we believe our provisions for unrecognized tax positions are reasonable, we can make no assurance that the final tax outcome of these matters will not be different from that which we have reflected in our income tax provisions and accruals. Such differences could have a material impact on our income tax provisions and operating results in the periods in which we make such determination. Earnings per Common Share . Net income per common share is computed by both the basic method, which uses the weighted average number of our common shares outstanding, and the diluted method, which includes the potentially dilutive common equivalent shares outstanding. Performance stock units are considered contingently issuable awards and are excluded from the weighted average basic share calculation. These awards are included in the weighted average dilutive share calculation, to the extent they are dilutive, based on the number of shares, if any, that would be issuable as of the end of the reporting period assuming the end of the reporting period is also the end of the performance period. For Convertible Notes, the dilutive effect is calculated using the if-converted method. Fair Value Measurements . The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined in the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Stock-Based Compensation . We recognize the fair value compensation cost relating to stock-based payment transactions in accordance with ASC 718, Compensation — Stock Compensation . Under the provisions of ASC 718, stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized over the employee’s requisite service period, which is generally the vesting period. The fair value of our stock options is estimated using a Black-Scholes option valuation model. The fair value of our performance stock units linked to total shareholder return is estimated using Monte-Carlo simulations. Compensation expense is adjusted each period based on the grant-date fair value and the number of shares that are probable of being awarded based on the performance conditions of the awards. Restricted stock units are valued based on the closing stock price on the date of grant. Cash-settled share-based awards, or liability awards, are remeasured at fair value each reporting period until the awards are settled. Total stock-based compensation expense for the years ended December 31, 2025, 2024 and 2023 was $ 43.5 million, $ 28.5 million, and $ 21.3 million, respectively (see Note 12, Employee Stock Purchase Plan, Stock Options and Warrants ). 61 Table of Contents Concentration of Credit Risk . Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. We provide credit, in the normal course of business, primarily to hospitals and independent third-party custom procedure tray manufacturers and distributors. We perform ongoing credit evaluations of our customers and maintain allowances for potential credit losses. Due to the diversified nature and number of our customers, concentrations of credit risk with respect to accounts receivable are limited. Foreign Currency . The financial statements of our foreign subsidiaries are measured using local currencies as the functional currency, with the exception of our manufacturing subsidiaries in Ireland and Mexico, which each use the U.S. Dollar as its functional currency. Assets and liabilities are translated into U.S. Dollars at year-end rates of exchange and results of operations are translated at average rates for the year. Gains and losses resulting from these translations are included in accumulated other comprehensive loss as a separate component of stockholders’ equity. Transactional exchange gains or losses are included in other income (expense) in determining net income for the period. Derivatives . We use forward contracts to mitigate our exposure to volatility in foreign exchange rates, and we used an interest rate swap to hedge changes in the benchmark interest rate related to our Amended Fourth A&R Credit Agreement described in Note 8, Debt . All derivatives are recognized in the consolidated balance sheets at fair value. Classification of each hedging instrument is based upon whether the maturity of the instrument is less than or greater than 12 months. We do not purchase or hold derivative financial instruments for speculative or trading purposes (see Note 9, Derivatives ). Recently Adopted Financial Accounting Standards. In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-09, Improvements to Income Tax Disclosures , which amends Income Taxes (Topic 740) . The FASB issued this update to improve annual basis income tax disclosures related to (1) rate reconciliation, (2) income taxes paid, and (3) other disclosures related to pretax income (or loss) and income tax expense (or benefit) from continuing operations. We adopted this ASU on January 1, 2025, and applied the amendments retrospectively to all prior periods presented in our consolidated financial statements (see Note 6, Income Taxes). The adoption of this guidance did not have an impact on our consolidated financial position, results of operations or cash flows. Recently Issued Accounting Standards. In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, which requires a public entity to disclose certain operating expenses disaggregated into categories, such as purchases of inventory, employee compensation, depreciation, and intangible asset amortization on an annual and interim basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The provisions within the update may be applied retrospectively for all periods presented in the financial statements. While we are still evaluating the specific impacts and adoption method, we anticipate this guidance will have a significant impact on our consolidated financial statement disclosures. We currently believe there are no other issued and not yet effective accounting standards that are materially relevant to our financial statements. ​ 2. REVENUES Disaggregation of Revenue. Our revenue is disaggregated based on reporting segment, product category and geographical region. We design, develop, manufacture and market medical products for interventional and diagnostic procedures. For financial reporting purposes, we report our operations in two operating segments: cardiovascular and endoscopy. Our cardiovascular segment consists of four product categories: peripheral intervention, cardiac intervention, custom procedural solutions, and OEM. Within these product categories, we sell a variety of products, including cardiology and radiology devices (which assist in diagnosing and treating coronary arterial disease, peripheral vascular disease and other non-vascular diseases), as well as embolotherapeutic, cardiac rhythm management, electrophysiology, critical care, breast cancer localization and guidance, biopsy, and interventional oncology and spine devices. Our endoscopy segment consists of gastroenterology and pulmonology devices which assist in the palliative treatment of expanding esophageal, tracheobronchial and biliary strictures caused by malignant tumors. 62 Table of Contents The following table presents sales by operating segment disaggregated based on product category and geographic region for the years ended December 31, 2025, 2024 and 2023 (in thousands). ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ 2024* ​ 2023* ​ ​ ​ United States ​ ​ International ​ ​ Total ​ ​ United States ​ ​ International ​ ​ Total ​ ​ United States ​ ​ International ​ ​ Total Cardiovascular ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Peripheral Intervention ​ $ 341,941 ​ $ 237,899 ​ $ 579,840 ​ $ 312,667 ​ $ 220,103 ​ $ 532,770 ​ $ 280,817 ​ $ 202,448 ​ $ 483,265 Cardiac Intervention ​ 187,355 ​ ​ 261,559 ​ 448,914 ​ 147,961 ​ ​ 220,990 ​ 368,951 ​ 143,715 ​ ​ 212,935 ​ 356,650 Custom Procedural Solutions ​ 128,570 ​ ​ 80,763 ​ 209,333 ​ 122,156 ​ ​ 77,877 ​ 200,033 ​ 113,839 ​ ​ 79,878 ​ 193,717 OEM ​ 182,716 ​ ​ 22,239 ​ 204,955 ​ 166,160 ​ ​ 33,830 ​ 199,990 ​ 154,232 ​ ​ 32,696 ​ 186,928 Total ​ 840,582 ​ ​ 602,460 ​ 1,443,042 ​ 748,944 ​ 552,800 ​ 1,301,744 ​ 692,603 ​ 527,957 ​ 1,220,560 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Endoscopy ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Endoscopy Devices ​ 68,884 ​ 3,980 ​ 72,864 ​ 51,836 ​ 2,934 ​ 54,770 ​ 34,386 ​ ​ 2,420 ​ 36,806 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ $ 909,466 ​ $ 606,440 ​ $ 1,515,906 ​ $ 800,780 ​ $ 555,734 ​ $ 1,356,514 ​ $ 726,989 ​ $ 530,377 ​ $ 1,257,366 *Commencing January 1, 2025, we reorganized our sales teams and product categories to include revenues from the sale of our spine devices under our OEM product category. Revenue figures for 2024 and 2023 have been recast to reflect this realignment of our portfolio of spine products, representing approximately $ 22.6 million and $ 22.4 million in revenue, respectively, within the OEM product category to provide comparability between the reported periods. ​ ​ ​ ​ 3. ACQUISITIONS AND OTHER STRATEGIC TRANSACTIONS 2025 Acquisitions On November 3, 2025, we entered into an asset purchase agreement with Pentax of America, Inc., a subsidiary of PENTAX® Medical, Inc. (“Pentax”), to acquire the C2 CryoBalloon® device and related technology (the “C2 Acquisition”). The total purchase price consists of a $ 19 million cash payment at closing and potential contingent payments of up to $ 3 million payable in 2026 upon meeting certain milestones relating to the operational transition of the acquired assets. We accounted for this transaction under the acquisition method of accounting as a business combination. Our net sales of C2 products since the date of the C2 Acquisition were approximately $ 1.3 million for the year ended December 31, 2025. Acquisition-related costs associated with the C2 Acquisition, which are included in selling, general and administrative expenses in the accompanying consolidated statements of income, were approximately $ 0.4 million for the year ended December 31, 2025. The purchase price was preliminarily allocated as follows (in thousands): ​ ​ ​ ​ ​ Assets Acquired ​ ​ ​ ​ ​ Inventories ​ $ 431 Property and equipment ​ ​ 139 Intangible assets ​ ​ Developed technology ​ ​ 16,000 Trade names ​ ​ 1,200 Customer list ​ ​ 1,200 Goodwill ​ ​ 2,906 Total net assets acquired ​ $ 21,876 ​ We are amortizing the C2 developed technology intangible assets over 12 years , the trade name intangible assets over 12 years , and the customer list intangible asset on an accelerated basis over 12 years . We have estimated the weighted average life of the intangible assets acquired from Pentax to be 12 years . The goodwill consists largely of the synergies expected from combining operations and is expected to be deductible for tax purposes. The pro forma effects to our consolidated results of operations of the C2 Acquisition are not material in relation to reported sales. 63 Table of Contents On May 16, 2025, Merit entered into an Agreement and Plan of Merger (the “Biolife Agreement”) by and among, Merit, Biolife, L.L.C., a Florida limited liability company (“FL Biolife”), Biolife Transaction Sub, LLC, a Delaware limited liability company (“Merger Sub”), and Shareholder Representative Services LLC, a Colorado limited liability company. Promptly following the execution of the Biolife Agreement, FL Biolife converted from a Florida limited liability company to a Delaware limited liability company called Biolife Delaware, L.L.C. (“Biolife”). Pursuant to the terms of the Biolife Agreement, on May 20, 2025, Merger Sub merged with and into Biolife, with Biolife continuing as the surviving corporation and a wholly-owned subsidiary of Merit (the “Biolife Merger”). The purchase consideration consisted of an upfront payment of $ 120 million plus working capital and other adjustments of $ 7.2 million in cash. Biolife manufactures unique patented hemostatic devices under the brand names StatSeal and WoundSeal. We accounted for the Biolife Merger as a business combination. Our net sales of Biolife products since the date of the Biolife Merger were approximately $ 12.4 million for the year ended December 31, 2025. It is not practical to separately report earnings related to the products acquired in connection with the Biolife Merger, as we cannot split our sales costs related solely to the Biolife products, principally because our sales representatives sell multiple products (including the Biolife products) in our cardiovascular business segment. Acquisition-related costs associated with the Biolife Merger, which are included in selling, general and administrative expenses in the accompanying consolidated statements of income, were approximately $ 1.9 million for the year ended December 31, 2025. The purchase price was allocated as follows (in thousands): ​ ​ ​ ​ ​ Assets Acquired ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 7,380 Trade receivables ​ ​ 1,562 Inventories ​ ​ 1,748 Prepaid expenses and other current assets ​ ​ 172 Income tax refund receivables ​ ​ 169 Property and equipment ​ ​ 4,609 Intangible assets ​ ​ Developed technology ​ ​ 90,500 Trademarks ​ ​ 3,700 Customer list ​ ​ 4,500 Goodwill ​ ​ 37,607 Total assets acquired ​ 151,947 ​ ​ ​ ​ Liabilities Assumed ​ ​ Trade payables ​ ​ 133 Accrued expenses ​ ​ 1,551 Deferred income tax liabilities ​ ​ 22,842 Liabilities related to unrecognized tax benefits ​ ​ 51 Other long-term obligations ​ 139 Total liabilities assumed ​ 24,716 Total assets acquired, net of liabilities assumed ​ ​ 127,231 Less: Cash acquired ​ ​ ( 7,380 ) Purchase price, net of cash acquired ​ $ 119,851 ​ We are amortizing the Biolife developed technology intangible assets over 12 years , the trademark intangible assets over 12 years , and the customer list intangible asset on an accelerated basis over 12 years . We have estimated the weighted average life of the intangible assets acquired from Biolife to be 12 years . The goodwill consists largely of the synergies expected from combining operations and is not expected to be deductible for tax purposes. The pro forma effects to our consolidated results of operations of the Biolife Acquisition are not material in relation to reported sales . 64 Table of Contents 2024 Acquisitions On November 1, 2024, pursuant to the terms of the Asset Purchase Agreement (the “Cook Purchase Agreement”) dated September 18, 2024 between Merit and Cook Medical Holdings LLC (“Cook”), we acquired Cook’s lead management business, which is composed of a comprehensive end-to-end portfolio of medical devices and accessories used in lead management procedures for patients who need a pacemaker or an implantable cardioverter-defibrillator lead removed or replaced (the “Cook Transaction”). We acquired the portfolio for a purchase price of $ 210 million, plus the assumption of certain liabilities. We accounted for this transaction under the acquisition method of accounting as a business combination. Acquisition-related costs associated with the transaction, which were included in selling, general and administrative expenses in the consolidated statements of income were approximately $ 5.4 million for the year ended December 31, 2024. The purchase price was allocated as follows (in thousands): ​ ​ ​ ​ ​ Assets Acquired ​ ​ ​ ​ ​ Intangible assets ​ ​ Developed technology ​ $ 126,100 Trademarks ​ ​ 7,100 Customer list ​ ​ 11,100 Goodwill ​ ​ 65,897 Total assets acquired ​ 210,197 ​ ​ ​ ​ Liabilities Assumed ​ ​ Accrued expenses ​ 197 Total liabilities assumed ​ 197 ​ ​ ​ ​ Total net assets acquired ​ $ 210,000 ​ We are amortizing Cook developed technology intangible assets over ten years , the trademark intangible assets over 12 years , and the customer list intangible asset on an accelerated basis over 12 years . We have estimated the weighted average life of the intangible assets acquired from Cook to be 10.3 years. The goodwill consists largely of the synergies expected from combining operations and is expected to be deductible for income tax purposes. The pro forma effects on our consolidated results of operations of the Cook Transaction are not material in relation to reported sales and it was deemed impracticable to obtain information to determine earnings associated with the acquired product lines which represent only a small portion of the product lines of a large, consolidated company without standalone financial information . 65 Table of Contents On July 1, 2024, we entered into an Asset Purchase Agreement (the “EGS Purchase Agreement”) with EndoGastric Solutions, Inc. (“EGS”), pursuant to which we acquired the EsophyX® Z+ device and various assets related thereto (collectively, the “EGS Acquisition”), which are designed to deliver a durable, minimally invasive non-pharmacological treatment option for patients suffering from gastroesophageal reflux disease. We acquired the purchased assets identified under the EGS Purchase Agreement for a purchase price of $ 105 million. We accounted for the EGS Acquisition under the acquisition method of accounting as a business combination. Acquisition-related costs associated with the EGS Acquisition, which were included in selling, general and administrative expenses in the consolidated statements of income were approximately $ 3.4 million for the year ended December 31, 2024. The purchase price was allocated as follows (in thousands): ​ ​ ​ ​ ​ Assets Acquired ​ ​ ​ ​ ​ Trade receivables ​ $ 2,568 Inventories ​ ​ 3,553 Prepaid expenses and other current assets ​ ​ 99 Property and equipment ​ ​ 258 Intangible assets ​ ​ Developed technology ​ ​ 72,800 Trademarks ​ ​ 5,400 Customer list ​ ​ 6,600 Goodwill ​ ​ 16,997 Total assets acquired ​ 108,275 ​ ​ ​ ​ Liabilities Assumed ​ ​ Trade payables ​ 494 Accrued expenses ​ 2,752 Total liabilities assumed ​ 3,246 ​ ​ ​ ​ Total net assets acquired ​ $ 105,029 ​ We are amortizing the EGS developed technology intangible assets over ten years , the trademark intangible assets over 11 years , and the customer list intangible asset on an accelerated basis over 11 years . We have estimated the weighted average life of the intangible assets acquired from EGS to be 10.1 years. The goodwill consists largely of the synergies expected from combining operations and is expected to be deductible for income tax purposes. The pro forma effects to our consolidated results of operations of the EGS Acquisition are not material in relation to reported sales. On March 8, 2024, we entered into an asset purchase agreement with Scholten Surgical Instruments, Inc. (“SSI”) to acquire the assets associated with the Bioptome ™ , Novatome®, and Sensatome ™ devices. The total purchase price of the SSI assets included an up-front payment of $ 3 million, and three deferred payments, including (i) $ 1 million payable upon the earlier of (a) the first anniversary of the closing date or (b) the date on which Merit can independently manufacture the purchased devices (“Deferred Payment Date”), (ii) $ 1 million payable upon the first anniversary of the Deferred Payment Date, and (iii) $ 1 million payable upon the second anniversary of the Deferred Payment Date. We have accounted for this transaction as an asset purchase, and recorded the amount paid and deferred payments as a developed technology intangible asset, which we are amortizing over eight years . 66 Table of Contents 2023 Acquisitions On June 8, 2023, we entered into an asset purchase agreement with AngioDynamics, Inc. (“AngioDynamics”) to acquire the assets associated with a portfolio of dialysis catheter products and the BioSentry® Biopsy Tract Sealant System for a purchase price of $ 100 million. We accounted for this transaction under the acquisition method of accounting as a business combination. Acquisition-related costs associated with the AngioDynamics acquisition, which are included in selling, general and administrative expenses in the accompanying consolidated statements of income, were approximately $ 4.9 million for the year ended December 31, 2023. The purchase price was allocated as follows (in thousands): ​ ​ ​ ​ ​ Assets Acquired ​ ​ ​ ​ ​ Prepaid expenses and other current assets ​ $ 2,000 Inventories ​ 5,254 Property and equipment ​ ​ 108 Intangible assets ​ ​ Developed technology ​ ​ 65,200 Trademarks ​ ​ 4,000 Customer list ​ ​ 5,800 Goodwill ​ ​ 17,638 Total net assets acquired ​ $ 100,000 ​ We are amortizing the AngioDynamics developed technology intangible assets over ten years , the trademark intangible assets over 11 years , and the customer list intangible asset on an accelerated basis over ten years . We have estimated the weighted average life of the intangible assets acquired from AngioDynamics to be 10.5 years. The goodwill consists largely of the synergies expected from combining operations and is expected to be deductible for income tax purposes. The pro forma effects on our consolidated results of operations of the AngioDynamics acquisition are not material in relation to reported sales and it was deemed impracticable to obtain information due to the unavailability of the information provided to the Company, management’s inability to reasonably estimate the amounts from the carve out of assets and differing fiscal year-end of the acquired business. On May 4, 2023, we entered into an asset purchase agreement to acquire the assets associated with the Surfacer® Inside-Out® Access Catheter System from Bluegrass Vascular Technologies, Inc. (“Bluegrass”), for a purchase price of approximately $ 32.7 million. Prior to the acquisition, we held an equity investment of 1,251,878 Bluegrass common shares representing approximately 19.5 % ownership in Bluegrass. The fair value of this previously held equity investment of approximately $ 0.2 million is included in the purchase price allocation. We accounted for this transaction under the acquisition method of accounting as a business combination. Acquisition-related costs associated with the Bluegrass acquisition, which are included in selling, general and administrative expenses in the accompanying consolidated statements of income, are not material. The purchase price was allocated as follows (in thousands): ​ ​ ​ ​ ​ Assets Acquired ​ ​ ​ ​ ​ Inventories ​ $ 175 Intangible assets ​ ​ Developed technology ​ ​ 28,000 Trademarks ​ ​ 900 Goodwill ​ ​ 3,898 Total net assets acquired ​ $ 32,973 ​ We are amortizing the Bluegrass developed technology intangible asset over 15 years and the related trademarks over 13 years . We have estimated the weighted average life of the intangible assets acquired from Bluegrass to be 14.9 years. The goodwill consists largely of the synergies expected from combining operations and is expected to be deductible for income tax purposes. The pro forma effects on our consolidated results of operations of the Bluegrass acquisition are not material. 67 Table of Contents On May 1, 2023, we entered into an asset purchase agreement to acquire certain assets from ART, related to intellectual property rights for soft tissue markers. The total purchase price of the ART assets included an up-front payment of $ 0.8 million, a deferred payment of $ 0.8 million payable upon the first to occur of (1) shipment and installation of two commercial production winders used to manufacture the product or (2) 30 days after delivery of the winders to Merit, and, a deferred payment of $ 0.5 million payable upon regulatory approval from the U.S. Food and Drug Administration for Merit to commence commercialization, marketing and sale of the product in the United States. We have accounted for this transaction as an asset purchase and recorded $ 1.5 million of acquired in-process research and development expense associated with the upfront payment and completion of the milestone related to the installation of the commercial production winders. The final payment will be capitalized as a developed technology intangible asset when paid upon completion of the regulatory approval milestone under the terms of the asset purchase agreement. The payments are reported within operating expenses because the technological feasibility of the underlying research and development project has not yet been reached and such technology has no identified future alternative use as of the date of acquisition. ​ 4. INVENTORIES Inventories at December 31, 2025 and 2024, consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ ​ ​ December 31, 2024 Finished goods ​ $ 190,616 ​ $ 168,437 Work-in-process ​ 32,391 ​ 27,114 Raw materials ​ 110,698 ​ 110,512 Total inventories ​ $ 333,705 ​ $ 306,063 ​ ​ 5. GOODWILL AND INTANGIBLE ASSETS The changes in the carrying amount of goodwill for the years ended December 31, 2025 and 2024, are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ 2024 ​ ​ ​ ​ Cardiovascular ​ Endoscopy ​ Total ​ ​ ​ Cardiovascular ​ Endoscopy ​ Total Goodwill balance at January 1 ​ $ 446,514 ​ $ 16,997 ​ $ 463,511 ​ $ 382,240 ​ $ — ​ $ 382,240 Effect of foreign exchange ​ 2,813 ​ — ​ 2,813 ​ ( 1,623 ) ​ — ​ ( 1,623 ) Additions and adjustments as the result of acquisitions ​ 37,607 ​ 2,906 ​ 40,513 ​ 65,897 ​ 16,997 ​ 82,894 Goodwill balance at December 31 ​ $ 486,934 ​ $ 19,903 ​ $ 506,837 ​ $ 446,514 ​ $ 16,997 ​ $ 463,511 ​ We did not have any goodwill impairments for the years ended December 31, 2025, 2024 and 2023. Total accumulated goodwill impairment losses aggregated to $ 8.3 million as of December 31, 2025 and 2024. Other intangible assets at December 31, 2025 and 2024, consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ ​ Gross Carrying ​ Accumulated ​ Net Carrying ​ ​ ​ ​ Amount ​ ​ ​ Amortization ​ ​ ​ Amount Patents ​ $ 33,979 ​ $ ( 14,760 ) ​ $ 19,219 Distribution agreements ​ 3,250 ​ ( 3,069 ) ​ 181 License agreements ​ 14,590 ​ ( 10,218 ) ​ 4,372 Trademarks ​ 52,556 ​ ( 28,293 ) ​ 24,263 Customer lists ​ 63,775 ​ ( 40,096 ) ​ 23,679 Total ​ $ 168,150 ​ $ ( 96,436 ) ​ $ 71,714 ​ 68 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 ​ ​ Gross Carrying ​ Accumulated ​ Net Carrying ​ ​ ​ ​ Amount ​ ​ ​ Amortization ​ ​ ​ Amount Patents ​ $ 31,489 ​ $ ( 12,824 ) ​ $ 18,665 Distribution agreements ​ 3,250 ​ ( 2,994 ) ​ 256 License agreements ​ 11,557 ​ ( 9,125 ) ​ 2,432 Trademarks ​ 47,613 ​ ( 24,177 ) ​ 23,436 Customer lists ​ 57,933 ​ ( 36,223 ) ​ 21,710 Total ​ $ 151,842 ​ $ ( 85,343 ) ​ $ 66,499 ​ Aggregate amortization expense for the years ended December 31, 2025, 2024 and 2023 was $ 85.1 million, $ 65.6 million, and $ 56.1 million, respectively. Estimated amortization expense for the developed technology and other intangible assets for the next five years consists of the following as of December 31, 2025 (in thousands): ​ ​ ​ ​ Year ending December 31, ​ ​ ​ Estimated Amortization Expense 2026 ​ $ 83,865 2027 ​ 80,268 2028 ​ 78,601 2029 ​ ​ 67,281 2030 ​ 54,968 ​ ​ ​ 6. INCOME TAXES The Organization for Economic Cooperation and Development (“OECD”) Pillar 2 global minimum tax rules, which generally provide for a minimum effective tax rate of 15%, are intended to apply for tax years beginning in 2024. On February 2, 2023, the OECD issued administrative guidance providing transition and safe harbor rules around the implementation of the Pillar 2 global minimum tax. Under a transitional safe harbor released July 17, 2023, the undertaxed profits rule top-up tax in the jurisdiction of a company's ultimate parent entity will be zero for each fiscal year of the transition period, if that jurisdiction has a corporate tax rate of at least 20%. The safe harbor transition period will apply to fiscal years beginning on or before December 31, 2025 and ending before December 31, 2026. We are closely monitoring developments and evaluating the impact these new rules are anticipated to have on our tax rate, including eligibility to qualify for these safe harbor rules. Based on the 2025 financial results and safe harbor rules, we currently do not anticipate the Pillar 2 laws to have a material impact on our effective tax rate. On July 4, 2025, the U.S. enacted a budget reconciliation package (known as the “One Big Beautiful Bill Act” or “OBBBA”) which includes a broad range of tax provisions affecting businesses. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Company has included the impacts of the bill in the consolidated financial statements for the year ended December 31, 2025. We will continue to evaluate the full impact of these legislative changes as additional guidance and results become available. For the years ended December 31, 2025, 2024 and 2023, income before income taxes is broken out between U.S. and foreign-sourced operations and consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 Domestic ​ $ 110,396 ​ $ 93,687 ​ $ 60,935 Foreign ​ 60,541 ​ 56,306 ​ 51,154 Total ​ $ 170,937 ​ $ 149,993 ​ $ 112,089 ​ 69 Table of Contents The components of the provision for income taxes for the years ended December 31, 2025, 2024 and 2023, consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 Current expense: ​ ​ ​ ​ ​ ​ Federal ​ $ 17,745 ​ $ 26,061 ​ $ 15,684 State ​ 4,863 ​ 5,286 ​ 3,775 Foreign ​ 14,626 ​ 13,162 ​ 10,862 Total current expense ​ 37,234 ​ 44,509 ​ 30,321 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred expense (benefit): ​ ​ ​ ​ ​ ​ Federal ​ 4,766 ​ ( 12,609 ) ​ ( 11,030 ) State ​ 378 ​ ( 1,421 ) ​ ( 1,699 ) Foreign ​ 70 ​ ( 843 ) ​ 86 Total deferred expense (benefit) ​ 5,214 ​ ( 14,873 ) ​ ( 12,643 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total income tax expense ​ $ 42,448 ​ $ 29,636 ​ $ 17,678 ​ The difference between the income tax expense reported and amounts computed by applying the statutory federal rate of 21.0 % to pretax income for the years ended December 31, 2025, 2024 and 2023, consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ 2023 ​ ​ Amount ​ Percent ​ Amount ​ Percent ​ Amount ​ Percent Computed federal income tax expense at applicable statutory rate of 21 % ​ $ 35,897 ​ 21.0 % ​ $ 31,499 ​ 21.0 % ​ $ 23,539 ​ 21.0 % Domestic Federal ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax credits ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Research and development tax credits ​ ​ ( 1,910 ) ​ ( 1.1 ) ​ ​ ​ ( 2,765 ) ​ ( 1.8 ) ​ ​ ​ ( 2,209 ) ​ ( 2.0 ) ​ Other ​ ​ 348 ​ 0.2 ​ ​ ​ ( 31 ) ​ ( 0.0 ) ​ ​ ​ — ​ — ​ Nontaxable or nondeductible expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Share-based payment awards ​ ​ ( 3,364 ) ​ ( 2.0 ) ​ ​ ​ ( 1,817 ) ​ ( 1.2 ) ​ ​ ​ ( 3,001 ) ​ ( 2.6 ) ​ Section 162(m) limitation ​ ​ 6,967 ​ 4.1 ​ ​ ​ 1,927 ​ 1.3 ​ ​ ​ 1,685 ​ 1.5 ​ Other ​ ​ 809 ​ 0.5 ​ ​ ​ 101 ​ 0.1 ​ ​ ​ 241 ​ 0.2 ​ Effects of cross-border tax laws ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Global intangible low-taxed income, net of related foreign tax credits ​ ​ 618 ​ 0.4 ​ ​ ​ 668 ​ 0.4 ​ ​ ​ ( 652 ) ​ ( 0.6 ) ​ Foreign-derived intangible income ​ ​ ( 3,312 ) ​ ( 2.0 ) ​ ​ ​ ( 2,790 ) ​ ( 1.9 ) ​ ​ ​ ( 2,691 ) ​ ( 2.4 ) ​ Subpart F income, net of related foreign tax credits ​ ​ ( 906 ) ​ ( 0.5 ) ​ ​ ​ ( 1,792 ) ​ ( 1.2 ) ​ ​ ​ ( 990 ) ​ ( 0.9 ) ​ Changes in valuation allowance ​ ​ ( 52 ) ​ ( 0.0 ) ​ ​ ​ — ​ — ​ ​ ​ ( 90 ) ​ ( 0.1 ) ​ Other adjustments ​ 766 ​ 0.4 ​ ​ 131 ​ 0.1 ​ ​ ( 388 ) ​ ( 0.3 ) ​ State and local income tax expense (1) ​ 4,130 ​ 2.3 ​ ​ 3,081 ​ 2.1 ​ ​ 1,554 ​ 1.4 ​ Foreign tax effects ​ 2,340 ​ 1.4 ​ ​ 1,206 ​ 0.8 ​ ​ 676 ​ 0.6 ​ Changes in unrecognized tax benefits ​ 117 ​ 0.1 ​ ​ 218 ​ 0.1 ​ ​ 4 ​ 0.0 ​ Total income tax expense ​ $ 42,448 ​ 24.8 % ​ $ 29,636 ​ 19.8 % ​ $ 17,678 ​ 15.8 % ​ (1) For the year ended December 31, 2025 , California, Minnesota, Massachusetts, New York and New Jersey taxes make up the majority (greater than 50 percent) of the tax effect in this category. For the year ended December 31, 2024 , California, Minnesota, New Jersey, Massachusetts, Pennsylvania and New York make up the majority of the tax effect in this category. For the year ended December 31, 2023 , Minnesota, California, New Jersey and New York make up the majority of the tax effect in this category. ​ 70 Table of Contents Deferred income tax assets and liabilities at December 31, 2025 and 2024, consisted of the following temporary differences and carry-forward items (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ ​ ​ December 31, 2024 Deferred income tax assets: ​ ​ ​ ​ Allowance for credit losses on trade receivables ​ $ 4,246 ​ $ 2,215 Accrued compensation expense ​ 11,146 ​ 11,701 Inventory differences ​ 5,943 ​ 5,139 Net operating loss carryforwards ​ 7,384 ​ 8,320 Stock-based compensation expense ​ 10,328 ​ 7,569 Operating lease assets ​ ​ 16,686 ​ ​ 11,586 State R&D tax credits ​ ​ 6,293 ​ ​ 5,924 IRC section 174 capitalized R&D ​ ​ 24,868 ​ ​ 35,200 Other ​ 10,794 ​ 10,759 Total deferred income tax assets ​ 97,688 ​ 98,413 ​ ​ ​ ​ ​ ​ ​ Deferred income tax liabilities: ​ ​ ​ ​ Prepaid expenses ​ ( 1,482 ) ​ ( 1,277 ) Property and equipment ​ ( 24,564 ) ​ ( 22,699 ) Intangible assets ​ ( 51,625 ) ​ ( 29,440 ) Foreign withholding tax ​ ( 1,742 ) ​ ( 1,681 ) Operating lease liabilities ​ ​ ( 16,751 ) ​ ​ ( 11,737 ) Other ​ ( 19 ) ​ ( 1,632 ) Total deferred income tax liabilities ​ ( 96,183 ) ​ ( 68,466 ) Valuation allowance ​ ( 14,121 ) ​ ( 14,143 ) Net deferred income tax (liabilities) assets ​ $ ( 12,616 ) ​ $ 15,804 ​ ​ ​ ​ ​ ​ ​ Reported as: ​ ​ ​ ​ Deferred income tax assets ​ $ 7,049 ​ $ 16,044 Deferred income tax liabilities ​ ( 19,665 ) ​ ( 240 ) Net deferred income tax (liabilities) assets ​ $ ( 12,616 ) ​ $ 15,804 ​ Deferred tax assets and liabilities are netted on the balance sheet by separate tax jurisdictions. Deferred income tax balances reflect the temporary differences between the carrying amounts of assets and liabilities and their tax basis and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. The valuation allowance is primarily related to state credit carryforwards, non-US net operating loss carryforwards, and capital loss carryforwards for which we believe it is more likely than not that the deferred tax assets will not be realized. The valuation allowance did not materially change during the year ended December 31, 2025, increased by $ 0.4 million during the year ended December 31, 2024, and increased by $ 0.2 million during the year ended December 31, 2023. As of December 31, 2025, we had U.S federal net operating loss carryforwards of $ 15.9 million, which were generated by Cianna Medical, DFINE Inc., Biosphere Medical, Inc., and Biolife LLC, prior to our acquisition of these companies. These net operating loss carryforwards are subject to annual limitations under Internal Revenue Code Section 382. If unused, $ 15.0 million of the net operating losses will expire between 2030 and 2037. We anticipate that we will utilize all current net operating loss carryforwards prior to their expiration dates over the next 10 years . We utilized a total of $ 7.5 million in U.S. federal net operating loss carryforwards during the year ended December 31, 2025. As of December 31, 2025, we had $ 23.3 million of non-U.S. net operating loss carryforwards, of which $ 21.6 million have no expiration date and $ 1.7 million expire at various dates through 2036. Non-U.S. net operating loss carryforwards utilized during the year ended December 31, 2025 were not material. We do not consider our foreign earnings to be permanently reinvested. Consequently, we have recorded tax expense of $ 0.3 million, $ 0.7 million and $ 0.4 million for foreign withholding taxes on unremitted foreign earnings during the years ended December 31, 2025, 2024 and 2023, respectively. 71 Table of Contents We are subject to income taxes in the U.S. and numerous foreign jurisdictions. Significant judgment is required in determining our worldwide provision for income taxes and recording the related assets and liabilities. In the ordinary course of our business, there are many transactions and calculations where the ultimate tax determination is uncertain. In our opinion, we have made adequate provisions for income taxes for all years subject to audit. We are no longer subject to U.S. federal, state, and local income tax examinations by tax authorities for years before 2022. In foreign jurisdictions, we are no longer subject to income tax examinations for years before 2019. Although we believe our estimates are reasonable, the final outcomes of these matters may be different from those which we have reflected in our historical income tax provisions and accruals. Such differences could have a material effect on our income tax provision and operating results in the period in which we make such determination. The total liability for unrecognized tax benefits at December 31, 2025, including interest and penalties, was $ 2.2 million, of which $ 2.2 million would favorably impact our effective tax rate if recognized. The total liability for unrecognized tax benefits at December 31, 2024, including interest and penalties, was $ 2.1 million, of which $ 2.1 million would favorably impact our effective tax rate if recognized. As of December 31, 2025 and 2024, we had accrued $ 0.3 million and $ 0.2 million, respectively, in total interest and penalties related to unrecognized tax benefits. We account for interest and penalties for unrecognized tax benefits as part of our income tax provision. During the years ended December 31, 2025, 2024 and 2023, our liability for unrecognized tax benefit was increased (decreased) for interest and penalties by $ 0.1 million, $( 0.1 ) million, and $( 0.1 ) million, respectively. A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax benefits for the years ended December 31, 2025, 2024 and 2023, consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 Unrecognized tax benefits, opening balance ​ $ 1,880 ​ $ 1,622 ​ $ 1,576 Gross increases (decreases) in tax positions taken in a prior year ​ ( 15 ) ​ 70 ​ 112 Gross increases in tax positions taken in the current year ​ 419 ​ 559 ​ 442 Lapse of applicable statute of limitations ​ ( 334 ) ​ ( 371 ) ​ ( 508 ) Unrecognized tax benefits, ending balance ​ $ 1,950 ​ $ 1,880 ​ $ 1,622 ​ The tabular roll-forward ending balance does not include interest and penalties related to unrecognized tax benefits. Income taxes paid for the years ended December 31, 2025, 2024 and 2023, consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ 2024 ​ 2023 Federal ​ $ 12,245 ​ $ 27,711 ​ $ 16,456 State ​ 3,713 ​ 6,140 ​ 3,927 Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ Netherlands ​ ​ 2,604 ​ ​ * ​ ​ 1,912 France ​ ​ 2,246 ​ ​ * ​ ​ * Mexico ​ ​ 2,179 ​ ​ * ​ ​ 1,741 China ​ ​ 1,946 ​ ​ * ​ ​ * Ireland ​ ​ 1,818 ​ ​ * ​ ​ 2,321 Other ​ ​ 4,641 ​ ​ 11,196 ​ ​ 5,177 Total income taxes paid ​ $ 31,392 ​ $ 45,047 ​ $ 31,534 ​ * The amount of income taxes paid during the year does not meet the 5% disaggregation threshold. ​ ​ 72 Table of Contents 7. ACCRUED EXPENSES Accrued expenses at December 31, 2025 and 2024, consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ ​ ​ December 31, 2024 Payroll and related liabilities ​ $ 83,926 ​ $ 73,514 Current portion of contingent liabilities ​ 3,198 ​ 358 Advances from employees ​ 247 ​ 158 Accrued rebates payable ​ ​ 12,275 ​ ​ 11,778 Accrued interest ​ ​ 9,344 ​ ​ 9,531 Other accrued expenses ​ 50,496 ​ 38,738 Total ​ $ 159,486 ​ $ 134,077 ​ ​ ​ ​ ​ 8. DEBT Principal balances outstanding under our long-term debt obligations as of December 31, 2025 and 2024, consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ ​ ​ December 31, 2024 Convertible notes ​ $ 747,500 ​ $ 747,500 Less unamortized debt issuance costs ​ ( 13,462 ) ​ ( 17,949 ) Total long-term debt ​ 734,038 ​ 729,551 Less current portion ​ — ​ — Long-term portion ​ $ 734,038 ​ $ 729,551 ​ Future minimum principal payments on our long-term debt as of December 31, 2025, are as follows (in thousands): ​ ​ ​ ​ Year Ending ​ Future Minimum December 31, ​ ​ ​ Principal Payments 2026 $ — 2027 ​ ​ — 2028 ​ ​ — 2029 ​ ​ 747,500 Total future minimum principal payments ​ $ 747,500 ​ Fourth Amended and Restated Credit Agreement On June 6, 2023, we entered into a Fourth Amended and Restated Credit Agreement (the "Fourth A&R Credit Agreement"). The Fourth A&R Credit Agreement is a syndicated loan agreement with Wells Fargo Bank, National Association and other parties. The Fourth A&R Credit Agreement amended and restated in its entirety our previously outstanding Third Amended and Restated Credit Agreement and all amendments thereto. The Fourth A&R Credit Agreement provides for a term loan of $ 150 million and a revolving credit commitment of up to an aggregate amount of $ 700 million, inclusive of sub-facilities for multicurrency borrowings, standby letters of credit and swingline loans. On June 6, 2028, all principal, interest and other amounts outstanding under the Fourth A&R Credit Agreement are payable in full. At any time prior to the maturity date, we may repay any amounts owing under all term loans and revolving credit loans in whole or in part, without premium or penalty. 73 Table of Contents On December 5, 2023, we executed an amendment to the Fourth A&R Credit Agreement (as amended, the "Amended Fourth A&R Credit Agreement”) to facilitate the issuance of our Convertible Notes described below. Among other things, the amendment also updated the definition of the Applicable Margin used in determining the interest rates and amended the financial covenants, all as described below. Term loans made under the Amended Fourth A&R Credit Agreement, as amended bear interest, at our election, at either (i) the Base Rate plus the Applicable Margin (as defined in the Amended Fourth A&R Credit Agreement) or, (ii) Adjusted Term SOFR plus the Applicable Margin (as defined in the Amended Fourth A&R Credit Agreement). Revolving credit loans bear interest, at our election, at either (a) the Base Rate plus the Applicable Margin, (b) Adjusted Term SOFR plus the Applicable Margin, (c) Adjusted Eurocurrency Rate plus the Applicable Margin (as defined in the Amended Fourth A&R Credit Agreement), or (d) Adjusted Daily Simple SONIA plus the Applicable Margin (as defined in the Amended Fourth A&R Credit Agreement). Swingline loans bear interest at the Base Rate plus the Applicable Margin. Interest on each loan featuring the Base Rate and each Daily Simple SONIA Loan is due and payable on the last business day of each calendar month; interest on each loan featuring the Eurocurrency Rate and each Term SOFR Loan is due and payable on the last day of each interest period applicable thereto, and if such interest period extends over three months, at the end of each three-month interval during such interest period. The Amended Fourth A&R Credit Agreement is collateralized by substantially all of our assets. The Amended Fourth A&R Credit Agreement contains affirmative and negative covenants, representations and warranties, events of default and other terms customary for loans of this nature. In particular, the Amended Fourth A&R Credit Agreement requires that we maintain certain financial covenants, as follows: ​ ​ ​ ​ ​ ​ Covenant Requirement ​ Consolidated Total Net Leverage Ratio (1) ​ 5.0 to 1.0 ​ Consolidated Senior Secured Net Leverage Ratio (2) ​ ​ 3.0 to 1.0 ​ Consolidated Interest Coverage Ratio (3) ​ 3.0 to 1.0 ​ ​ (1) Maximum Consolidated Total Net Leverage Ratio (as defined in the Amended Fourth A&R Credit Agreement) as of any fiscal quarter end. (2) Maximum Consolidated Senior Secured Net Leverage Ratio (as defined in the Amended Fourth A&R Credit Agreement) as of any fiscal quarter end. (3) Minimum ratio of Consolidated EBITDA (as defined in the Amended Fourth A&R Credit Agreement and adjusted for certain expenditures) to Consolidated Interest Expense (as defined in the Amended Fourth A&R Credit Agreement) for any period of four consecutive fiscal quarters. As of December 31, 2025, we were in compliance with all covenants set forth in the Amended Fourth A&R Credit Agreement. As of December 31, 2025, we had no outstanding borrowings and issued letter of credit guarantees of $ 2.8 million under the Amended Fourth A&R Credit Agreement, with available borrowings of approximately $ 697 million, based on the leverage ratio required pursuant to the Amended Fourth A&R Credit Agreement. As of December 31, 2024, we had no outstanding borrowings and issued letter of credit guarantees of $ 2.9 million under the Amended Fourth A&R Credit Agreement. 74 Table of Contents Convertible Notes In December 2023, we issued Convertible Notes which bear interest at 3.00 % per year, payable semi-annually in arrears on February 1 and August 1 of each year, beginning on August 1, 2024. The Convertible Notes are senior unsecured obligations (as defined in the Note Indenture) of the Company and will mature on February 1, 2029, unless earlier repurchased, redeemed or converted in accordance with their terms prior to such date. The net proceeds from the sale of the Convertible Notes were approximately $ 724.8 million after deducting offering and issuance costs and before the costs of the Capped Call transaction, as described below. The initial conversion rate of the notes will be 11.5171 shares of common stock per $ 1,000 principal amount of notes equivalent to an initial conversion price of approximately $ 86.83 per share of common stock, subject to adjustments as provided in the Indenture upon the occurrence of certain specified events. In addition, Holders of the Convertible Notes (“Holders”) will have the right to require the Company to repurchase all or a part of their notes upon the occurrence of a “fundamental change” (as defined in the indenture governing the Convertible Notes) in cash at a fundamental change repurchase price of 100 % of their principal amount plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. Conversion can occur at the option of the Holders at any time on or after October 1, 2028. Prior to October 1, 2028, Holders may only elect to convert the Convertible Notes under the following circumstances: (1) During the five business day period after any ten consecutive trading day period in which, for each day of that period, the trading price per $ 1,000 principal amount of the Convertible Notes for such trading day was less than 98 % of the product of the last reported sale price of the Company’s common stock and the applicable conversion rate on such trading day; (2) The Company issues to common stockholders any rights, options, or warrants, entitling them, for a period of not more than 60 days, to purchase shares of common stock at a price per share less than the average closing sale price of 10 consecutive trading days, or the Company’s election to make a distribution to common stockholders exceeding 10 % of the previous day’s closing sale price; (3) Upon the occurrence of a Fundamental Change, as set forth in the indenture governing the Convertible Notes; (4) During any calendar quarter (and only during such calendar quarter) beginning after March 31, 2024, if, the last reported sale price per share of the Company’s common stock exceeds 130 % of the applicable conversion price on each applicable trading day for at least 20 trading days (whether or not consecutive) in the period of the 30 consecutive trading day period ending on, and including, the last trading day of the immediately preceding calendar quarter; or (5) Prior to the related redemption date if the Company calls any Convertible Notes for redemption. As of December 31, 2025, none of the conditions permitting the holders of the Convertible Notes to convert their notes early had been met, therefore, they are classified as long-term. On or after February 7, 2027, we may redeem for cash all or part of the Convertible Notes, at our option, if the last reported sales price of common stock has been at least 130 % of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which we provide notice of redemption, during any 30 consecutive trading days ending on, and including, the trading day immediately before the date we send the related notice of the redemption. Upon conversion, the Company will (1) pay cash up to the aggregate principal amount of the Convertible Notes to be converted and (2) pay or deliver, as the case may be, cash, shares of its common stock, or a combination of cash and shares of our common stock, at the Company’s election, in respect of the remainder, if any, of its conversion obligation in excess of the aggregate principal amount of the Convertible Notes being converted. Capped Call Transaction In December 2023, in connection with the pricing of the Convertible Notes, Merit entered into privately negotiated capped call transactions (“Capped Call Transactions”) with certain of the initial purchasers and/or their respective affiliates and certain other financial institutions. The Capped Call Transactions cover, subject to customary anti-dilution adjustments, the number of shares of Merit’s common stock initially underlying the Convertible Notes and are generally expected to reduce potential dilution to Merit’s common stock upon any conversion of Convertible Notes and/or offset any cash payments Merit is required to make in excess of the principal amount of converted Convertible Notes, as the case may be, with such reduction and/or offset subject to a cap, based on a cap price initially equal to approximately $ 114.68 per share 75 Table of Contents of Merit’s common stock, subject to certain adjustments under the terms of the Capped Call Transactions. The cost of the Capped Call Transactions was approximately $ 66.5 million. The Capped Call Transactions do not meet the criteria for separate accounting as a derivative as they are indexed to the Company's stock. The premiums paid for the Capped Call Transactions have been included as a net reduction to common stock within stockholders' equity. ​ ​ ​ 9. DERIVATIVES General. Our earnings and cash flows are subject to fluctuations due to changes in interest rates and foreign currency exchange rates, and we seek to mitigate a portion of these risks by entering into derivative contracts. The derivatives we use are interest rate swaps and foreign currency forward contracts. We recognize derivatives as either assets or liabilities at fair value in the accompanying consolidated balance sheets, regardless of whether or not hedge accounting is applied. We report cash flows arising from our hedging instruments consistent with the classification of cash flows from the underlying hedged items. Accordingly, cash flows associated with our derivative programs are classified as operating activities in the accompanying consolidated statements of cash flows. We formally document, designate and assess the effectiveness of transactions that receive hedge accounting initially and on an ongoing basis. For qualifying hedges, the change in fair value is deferred in accumulated other comprehensive income (loss) (“AOCI”), a component of stockholders’ equity in the accompanying consolidated balance sheets, and recognized in earnings at the same time the hedged item affects earnings. Changes in the fair value of derivatives not designated as hedging instruments are recorded in earnings throughout the term of the derivative. Interest Rate Risk. In December 2019, we entered into a pay-fixed, receive-variable interest rate swap with a notional amount of $ 75 million with Wells Fargo wherein we fixed the one-month SOFR rate on that portion of our borrowings under the Amended Fourth A&R Credit Agreement. The term of the interest rate swap expired on July 31, 2024. Foreign Currency Risk . We operate on a global basis and are exposed to the risk that our financial condition, results of operations, and cash flows could be adversely affected by changes in foreign currency exchange rates. To reduce the potential effects of foreign currency exchange rate movements on net earnings, we enter into derivative financial instruments in the form of foreign currency exchange forward contracts with major financial institutions. Our policy is to enter into foreign currency derivative contracts with maturities of up to two years . We are exposed to foreign currency exchange rate risk with respect to transactions and balances denominated in various currencies, with our most significant exposure related to transactions and balances denominated in Chinese Renminbi and Euros, among others. We do not use derivative financial instruments for trading or speculative purposes. We do not believe we are subject to any credit risk contingent features related to our derivative contracts, and we seek to manage counterparty risk by allocating derivative contracts among several major financial institutions. Derivatives Designated as Cash Flow Hedges For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative instrument is temporarily reported as a component of other comprehensive income and then reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings. We entered into forward contracts on various foreign currencies to manage the risk associated with forecasted exchange rates which impact revenues, cost of sales, and operating expenses in various international markets. The objective of the hedges is to reduce the variability of cash flows associated with the forecasted purchase or sale of foreign currencies. As of December 31, 2025 and 2024, we had entered into foreign currency forward contracts, which qualified as cash flow hedges, with aggregate notional amounts of $ 138.6 million and $ 117.5 million, respectively. 76 Table of Contents Derivatives Not Designated as Cash Flow Hedges We forecast our net exposure in various receivables and payables to fluctuations in the value of various currencies, and we enter into foreign currency forward contracts to mitigate that exposure. As of December 31, 2025 and 2024, we had entered into foreign currency forward contracts related to those balance sheet accounts with aggregate notional amounts of $ 107.6 million and $ 95.7 million, respectively. Balance Sheet Presentation of Derivatives. As of December 31, 2025 and 2024, all derivatives, both those designated as hedging instruments and those that were not designated as hedging instruments, were recorded gross at fair value on our consolidated balance sheets. We are not subject to any master netting agreements. The fair value of derivative instruments on a gross basis is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value of Derivative Instruments Designated as Hedging Instruments Balance Sheet Location ​ ​ ​ December 31, 2025 ​ ​ ​ December 31, 2024 Assets ​ ​ ​ ​ ​ Foreign currency forward contracts Prepaid expenses and other assets ​ $ 3,555 ​ $ 3,771 Foreign currency forward contracts Other assets (long-term) ​ ​ 663 ​ 1,064 ​ ​ ​ ​ ​ ​ ​ ​ ​ (Liabilities) ​ ​ ​ ​ ​ Foreign currency forward contracts Accrued expenses ​ ( 2,183 ) ​ ( 1,332 ) Foreign currency forward contracts Other long-term obligations ​ ( 424 ) ​ ( 287 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value of Derivative Instruments Not Designated as Hedging Instruments Balance Sheet Location ​ ​ ​ December 31, 2025 ​ ​ ​ December 31, 2024 Assets ​ ​ ​ ​ ​ Foreign currency forward contracts Prepaid expenses and other assets ​ $ 1,390 ​ $ 2,595 ​ ​ ​ ​ ​ ​ ​ ​ ​ (Liabilities) ​ ​ ​ ​ ​ Foreign currency forward contracts Accrued expenses ​ ( 1,620 ) ​ ( 1,288 ) ​ Income Statement Presentation of Derivatives Derivatives Designated as Cash Flow Hedges Derivative instruments designated as cash flow hedges had the following effects, before income taxes, on other comprehensive income ("OCI") in our consolidated statements of comprehensive income and consolidated balance sheets (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Gain/(Loss) ​ ​ Recognized in OCI Derivative instrument ​ ​ ​ 2025 2024 ​ ​ ​ 2023 Interest rate swap ​ $ — ​ $ 152 ​ $ 609 Foreign currency forward contracts ​ 48 ​ 5,732 ​ 3,909 ​ 77 Table of Contents Derivative instruments designated as cash flow hedges had the following effects, before income taxes, on AOCI and net earnings in our consolidated statements of income, consolidated statements of comprehensive income and consolidated balance sheets (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated Statements ​ Amount of Gain/(Loss) ​ ​ of Income ​ Reclassified from AOCI Location in statements of income ​ ​ ​ 2025 ​ 2024 ​ 2023 ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 Interest expense ​ $ ( 26,461 ) ​ $ ( 31,219 ) ​ $ ( 15,511 ) ​ $ — $ 1,656 $ 2,550 Revenue ​ 1,515,906 ​ 1,356,514 ​ 1,257,366 ​ 1,176 ​ 2,140 ​ 4,081 Cost of sales ​ ( 777,636 ) ​ ( 713,181 ) ​ ( 673,494 ) ​ 151 ​ 644 ​ 1,457 ​ As of December 31, 2025, ($ 1.9 ) million or ($ 1.5 ) million after taxes, was expected to be reclassified from AOCI to earnings in revenue and cost of sales over the succeeding twelve months. Derivatives Not Designated as Hedging Instruments The following gains/(losses) from these derivative instruments were recognized in our consolidated statements of income for the years presented (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative Instrument Location in statements of income ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 Foreign currency forward contracts Other income (expense) — net ​ $ ( 103 ) ​ $ 1,961 ​ $ 2,004 ​ See Note 15, Fair Value Measurements for additional information about our derivatives. ​ 10. COMMITMENTS AND CONTINGENCIES We are obligated under non-terminable operating leases for manufacturing facilities, finished good distribution centers, office space, equipment, vehicles, and land. See Note 17, Leases for disclosures regarding these operating leases. Royalties . As of December 31, 2025, we had entered into a number of agreements to license or acquire rights to certain intellectual property which require us to make royalty payments during the term of the agreements generally based on a percentage of sales. During the years ended December 31, 2025, 2024 and 2023, total royalty expense approximated $ 8.8 million, $ 8.7 million and $ 8.6 million, respectively, and is recorded in cost of sales on the consolidated statements of income. Minimum contractual commitments under royalty agreements to be paid within twelve months of December 31, 2025 were not significant. See Note 15, Fair Value Measurements for discussion of future royalty commitments related to acquisitions. Litigation . In the ordinary course of business, we are involved in various claims and litigation matters. These proceedings, actions and claims may involve product liability, intellectual property, contract disputes, employment, governmental inquiries or other matters, including the matter described below. These matters generally involve inherent uncertainties and often require prolonged periods of time to resolve. In certain proceedings, the claimants may seek damages as well as other compensatory and equitable relief that could result in the payment of significant claims and settlements and/or the imposition of injunctions or other equitable relief. For legal matters for which our management had sufficient information to reasonably estimate our future obligations, a liability representing management’s best estimate of the probable loss, or the minimum of the range of probable losses when a best estimate within the range is not known, is recorded. The estimates are based on consultation with legal counsel, previous settlement experience and settlement strategies. If actual outcomes are less favorable than those estimated by management, additional expense may be incurred, which could unfavorably affect our financial position, results of operations and cash flows. The ultimate cost to us with respect to actions and claims could be materially different than the amount of the current estimates and accruals and could have a material adverse effect on our financial position, results of operations and cash flows. Unless included in our legal accrual, we are unable to estimate a reasonably possible loss or range of loss associated with any individual material legal proceeding. Legal costs for these matters, such as outside counsel fees and expenses, are charged to expense in the period incurred. 78 Table of Contents SEC Inquiry Commencing in January 2022, we received requests from the Division of Enforcement of the U.S. Securities and Exchange Commission (“SEC”) seeking the voluntary production of information relating to the business activities of Merit’s subsidiary in China, including interactions with hospitals and health care officials in China (the “SEC Inquiry”). We cooperated with the requests and investigated the matter. During the quarter ended September 30, 2025, the SEC’s Division of Enforcement notified us that they had concluded the SEC Inquiry and were not recommending enforcement action against us. In management's opinion, based on its examination of these matters, its experience to date and discussions with counsel, we are not currently involved in any legal proceedings which, individually or in the aggregate, could have a material adverse effect on our financial position, results of operations or cash flows. Our management regularly assesses the risks of legal proceedings in which we are involved, and management’s view of these matters may change in the future . ​ 11. EARNINGS PER COMMON SHARE (EPS) The computation of weighted average shares outstanding and the basic and diluted earnings per common share for the years ended December 31, 2025, 2024 and 2023, consisted of the following (in thousands, except per share amounts): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ 2024 ​ 2023 Net income $ 128,489 ​ $ 120,357 ​ $ 94,411 Average common shares outstanding 59,158 ​ 58,218 ​ 57,593 Basic EPS $ 2.17 ​ $ 2.07 ​ $ 1.64 ​ ​ ​ ​ ​ ​ ​ ​ ​ Average common shares outstanding ​ 59,158 ​ ​ 58,218 ​ ​ 57,593 Effect of dilutive stock awards ​ 775 ​ ​ 760 ​ ​ 763 Effect of dilutive convertible notes ​ 527 ​ ​ 387 ​ ​ — Total potential shares outstanding ​ 60,460 ​ ​ 59,365 ​ ​ 58,356 Diluted EPS $ 2.13 ​ $ 2.03 ​ $ 1.62 ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity awards excluded as the impact was anti-dilutive (1) ​ 172 ​ ​ 672 ​ ​ 1,143 ​ (1) Does not reflect the impact of incremental repurchases under the treasury stock method. Convertible Notes For our Convertible Notes issued in December 2023, the dilutive effect is calculated using the if-converted method. Upon surrender of the Convertible Notes for conversion, Merit will pay cash up to the aggregate principal amount of the Notes to be converted and pay or deliver, as the case may be, cash, shares of Merit’s common stock or a combination of cash and shares of Merit’s common stock, at Merit’s election, in respect of the remainder, if any, of Merit’s conversion obligation in excess of the aggregate principal amount of the Convertible Notes being converted. Under the if-converted method, we include the number of shares required to satisfy the remaining conversion obligation, assuming all the Convertible Notes were converted. The Convertible Notes only have an impact on diluted earnings per share when the average share price of our common stock exceeds the conversion price of $ 86.83 . The average closing prices of our common stock for the year ended December 31, 2025 were used as the basis for determining the dilutive effect on EPS. ​ ​ 79 Table of Contents 12. EMPLOYEE STOCK PURCHASE PLAN, STOCK OPTIONS AND WARRANTS Our stock-based compensation primarily consists of the following plans: 2018 Long-Term Incentive Plan . In June 2018, our Board of Directors adopted and our shareholders approved, the Merit Medical Systems, Inc. 2018 Long-Term Incentive Plan, which was subsequently amended effective December 14, 2018 (the “2018 Incentive Plan”) to supplement the Merit Medical Systems, Inc. 2006 Long-Term Incentive Plan (the "2006 Incentive Plan"). The 2018 Incentive Plan provides for the granting of several types of incentive awards (collectively, “Plan Awards”), including stock options, stock appreciation rights, restricted stock, stock units (including restricted stock units) and performance awards (including performance stock units). Plan Awards may be granted to directors, officers, outside consultants and key employees and may be granted upon such terms and such conditions as the Compensation Committee of our Board of Directors determines. Stock options typically vest on an annual basis over a three to five-year life with a contractual life of seven years . Restricted stock units typically vest on an annual basis over one to four years . Performance stock units vest at the end of the applicable performance measurement period, which is typically a three -year period. As of December 31, 2025, approximately 1.9 million shares remained available to be issued under the 2018 Incentive Plan. 2006 Long-Term Incentive Plan . In May 2006, our Board of Directors adopted, and our shareholders approved, the 2006 Incentive Plan. As of December 31, 2025, the 2006 Incentive Plan was no longer being used for new equity award grants. During the year ended December 31, 2025, all remaining options granted under this plan were exercised and as such, no equity awards associated with the plan remained outstanding as of December 31, 2025. Employee Stock Purchase Plan . We have a non-qualified Employee Stock Purchase Plan (“ESPP”), which has an expiration date of June 30, 2026. As of December 31, 2025, the total number of shares of common stock that remained available to be issued under our non-qualified plan was approximately 58,000 shares. ESPP participants purchase shares on a quarterly basis at a price equal to 95 % of the market price of the common stock at the end of the applicable offering period. Stock-Based Compensation Expense . The stock-based compensation expense before income tax expense for the years ended December 31, 2025, 2024 and 2023, consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 Cost of sales ​ ​ ​ ​ ​ ​ ​ ​ Nonqualified stock options $ 941 ​ $ 1,229 ​ $ 1,647 Restricted stock units ​ 1,295 ​ ​ — ​ ​ — Total cost of sales ​ 2,236 ​ ​ 1,229 ​ ​ 1,647 Research and development ​ ​ ​ ​ ​ ​ ​ ​ Nonqualified stock options ​ 1,070 ​ ​ 1,522 ​ ​ 1,739 Restricted stock units ​ 1,536 ​ ​ — ​ ​ — Total research and development ​ 2,606 ​ ​ 1,522 ​ ​ 1,739 Selling, general and administrative ​ ​ ​ ​ ​ ​ ​ ​ Nonqualified stock options ​ 4,512 ​ ​ 6,206 ​ ​ 7,542 Performance-based restricted stock units ​ 23,965 ​ ​ 12,517 ​ ​ 6,344 Restricted stock units ​ 8,687 ​ ​ 4,279 ​ ​ 1,771 Cash-settled performance-based awards ​ 1,260 ​ ​ 2,720 ​ ​ 2,290 Cash-settled restricted stock units ​ 194 ​ ​ — ​ ​ — Total selling, general and administrative ​ 38,618 ​ ​ 25,722 ​ ​ 17,947 ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock-based compensation expense before taxes $ 43,460 ​ $ 28,473 ​ $ 21,333 ​ We recognize stock-based compensation expense (net of a forfeiture rate) for those awards which are expected to vest on a straight-line basis over the requisite service period. We estimate the forfeiture rate based on our historical experience and expectations about future forfeitures. 80 Table of Contents Nonqualified Stock Options As of December 31, 2025, the total remaining unrecognized compensation cost related to non-vested stock options, net of expected forfeitures, was $ 4.4 million and is expected to be recognized over a weighted average period of 1.2 years. In applying the Black-Scholes methodology to the option grants, the fair value of our stock-based awards granted was estimated using the following assumptions for the year ended December 31, 2023: ​ ​ ​ ​ ​ ​ ​ 2023 Risk-free interest rate ​ 3.6 % - 4.8 % Expected option term ​ 4.0 years Expected dividend yield ​ — Expected price volatility ​ 39.6 % - 47.1 % ​ The average risk-free interest rate is determined using the U.S. Treasury rate in effect as of the date of grant, based on the expected term of the stock option. We determine the expected term of the stock options using the historical exercise behavior of employees. The expected price volatility was determined based upon the historical volatility for our stock. We recognize compensation expense for options on a straight-line basis over the service period, which corresponds to the vesting period. During the year ended December 31, 2023, approximately 444,000 nonqualified stock option grants were made for a total fair value of $ 13.1 million. The Company did no t grant any options during the years ended December 31, 2025 and 2024. The table below presents information related to stock option activity for the years ended December 31, 2025, 2024 and 2023 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 Total intrinsic value of stock options exercised ​ $ 28,444 ​ $ 36,431 ​ $ 23,300 Cash received from stock option exercises ​ 26,838 ​ 39,746 ​ 14,503 Excess tax benefit from the exercise of stock options ​ 3,364 ​ 1,817 ​ 3,001 ​ Changes in stock options for the year ended December 31, 2025, consisted of the following (shares and intrinsic value in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number ​ Weighted Average ​ Remaining Contractual ​ Intrinsic ​ ​ ​ ​ of Shares ​ ​ ​ Exercise Price ​ ​ ​ Term (in years) ​ ​ ​ Value Beginning balance 2,023 ​ 59.62 ​ ​ ​ Granted — ​ — ​ ​ ​ Exercised ( 691 ) ​ 54.59 ​ ​ ​ Forfeited/expired ( 26 ) ​ 69.34 ​ ​ ​ Outstanding at December 31 1,306 ​ 62.08 2.42 ​ $ 34,034 Exercisable 1,046 ​ 59.99 2.12 ​ 29,447 Ending vested and expected to vest 1,298 ​ 62.03 2.41 ​ 33,899 ​ The weighted average grant-date fair value of options granted during the year ended December 31, 2023 was $ 29.58 . Stock-Settled Performance-Based Restricted Stock Units (“PSUs”) We have outstanding PSUs which vest at the end of three-year performance periods. T he number of shares delivered upon vesting at the end of the performance periods are based upon performance against specified financial performance metrics and relative total shareholder return as compared to the Russell 2000 Index (“rTSR”), as defined in the award agreements. PSUs convey no shareholder rights unless and until shares are issued in settlement of the award. 81 Table of Contents We use Monte-Carlo simulations to estimate the grant-date fair value of the PSUs linked to total shareholder return. Compensation expense is recognized using the grant-date fair value for the number of shares that are probable of being awarded based on the performance conditions. Each reporting period, this probability assessment is updated, and cumulative catchups are recorded based on the performance metrics that are expected to be achieved. At the end of the performance period, cumulative expense is calculated based on the actual financial performance metrics attained. Restricted Stock Units (“RSUs”) We have granted RSUs to our employees and non-employee directors, which are subject to continued service through the vesting date, with employee RSUs generally vesting between three to four years and non-employee director RSUs vesting one year form the date of grant. The expense recognized for RSUs is equal to the closing stock price on the date of grant, which is recognized over the vesting period. Changes in PSUs and RSUs for the year ended December 31, 2025, consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ PSUs ​ RSUs ​ ​ ​ ​ Weighted Average ​ ​ ​ Weighted Average ​ ​ Stock Units ​ Grant Date ​ Stock Units ​ Grant Date ​ ​ ​ ​ (In Thousands) (1) Fair Value ​ ​ ​ (In Thousands) ​ ​ ​ Fair Value Beginning nonvested balance 595 ​ 82.33 329 ​ 90.54 Granted 288 ​ 112.34 165 98.11 rTSR adjustment ​ 20 (2) ​ 73.94 ​ — ​ ​ — Vested ( 98 ) ​ 73.94 ( 95 ) 89.10 Forfeited ( 56 ) ​ 84.63 ( 21 ) 90.70 Nonvested balance at December 31 749 ​ 94.52 378 ​ 94.21 ​ (1) Based on the maximum payout, excluding the impact of the rTSR multiplier. The actual number of shares which vest is determined based on of performance conditions and the application of an rTSR multiplier between 75 % and 125 % . (2) Represents the application of an rTSR multiplier of 125 % to awards vested in 2025 based on the performance of our common stock and the terms of the awards. The following table summarizes PSUs and RSUs granted during the years ended December 31, 2025, 2024 and 2023 (units and shares in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ ​ PSUs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Target units granted ​ ​ 144 ​ ​ 144 ​ ​ 115 ​ Maximum units granted (1) ​ ​ 288 ​ ​ 287 ​ ​ 229 ​ Maximum potential shares (1)(2) ​ ​ 359 ​ ​ 359 ​ ​ 287 ​ Weighted average grant date fair value ​ $ 112.34 ​ $ 86.79 ​ $ 72.26 ​ RSUs ​ ​ ​ ​ ​ ​ ​ ​ ​ Units granted ​ ​ 165 ​ ​ 329 ​ ​ 20 ​ Weighted average grant date fair value ​ $ 98.11 ​ $ 90.54 ​ $ 83.99 ​ ​ (1) Based on the maximum payout, excluding the impact of the rTSR multiplier. (2) Includes the impact of the maximum potential rTSR multiplier of 125 % . During the years ended December 31, 2025, 2024 and 2023, there were approximately 98,000 , 47,000 and 61,000 shares, respectively, that vested under PSUs, prior to the reduction of shares withheld to satisfy tax withholding obligations. Vested shares were calculated based upon achievement of the financial performance multipliers and market conditions related to the rTSR multiplier. During the years ended December 31, 2025, 2024 and 2023, there were approximately 95,000 , 20,000 and 31,000 shares, respectively, that vested under RSUs. 82 Table of Contents The fair value of each PSU was estimated as of the grant date using the following assumptions for awards granted in the years ended December 31, 2025, 2024 and 2023: ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 Risk-free interest rate 3.6 % - 4.0 % ​ 4.4 % ​ 3.9 % - 4.6 % Performance period 2.2 - 2.8 years ​ 2.8 years ​ 2.8 years Expected dividend yield — ​ — ​ — Expected price volatility 28.0 % - 29.0 % ​ 31.1 % ​ 31.4 % - 32.6 % ​ The risk-free interest rate of return was determined using the U.S. Treasury rate at the time of grant with a remaining term equal to the expected term of the award. The expected volatility was based on a weighted average volatility of our stock price and the average volatility of our compensation peer group's volatilities. The expected dividend yield was assumed to be zero because, at the time of the grant, we had no plans to declare a dividend. As of December 31, 2025, the total remaining unrecognized compensation cost related to stock-settled performance stock units and restricted stock units, net of expected forfeitures, was $ 27.4 million and $ 26.5 million, respectively, which is expected to be recognized over a weighted average period of 1.1 years and 2.4 years, respectively. Cash-Settled Performance-Based Share-Based Awards (“Liability Awards”) During the years ended December 31, 2025, 2024 and 2023, we granted liability awards to our Chief Executive Officer with total target cash incentives in the amount of $ 1.7 million, $ 1.6 million, and $ 1.3 million, respectively. These awards entitle him to a target cash payment based upon our relative shareholder return as compared to the rTSR and achievement of specified performance metrics, as defined in the award agreements. Awards with target cash incentives totaling $ 3.3 million were forfeited during the year ended December 31, 2025. During the years ended December 31, 2025, 2024 and 2023, we granted additional performance stock units to certain employees that provide for settlement in cash upon our achievement of specified financial metrics. The cash payable upon vesting at the end of the service period is based upon performance against specified financial performance metrics and relative total shareholder return as compared to the rTSR, as defined in the award agreements. Compensation expense is recognized for the cash payment probable of being awarded based on the performance metrics. The potential maximum payout of these liability awards is 250 % of the target cash incentive, resulting in a total potential maximum payout of $ 0.4 million, $ 0.5 million and $ 4.6 million for outstanding liability awards granted during the years ended December 31, 2025, 2024 and 2023, respectively. Settlement generally occurs at the end of three-year performance periods based upon the same performance metrics and vesting period as our performance stock units. These awards are classified as liabilities and reported in accrued expenses and other long-term liabilities within our consolidated balance sheets. The fair value of these awards is remeasured at each reporting period until the awards are settled. As of December 31, 2025, our recorded liabilities associated with these awards was $ 3.9 million, and we had remaining unrecognized compensation cost related to cash-settled performance-based share-based awards of $ 0.3 million, which is expected to be recognized over a weighted average period of 1.6 years. During 2025, 2024 and 2023, we paid $ 2.5 million, $ 1.3 million and $ 1.7 million, respectively, in connection with liability awards. ​ ​ ​ 83 Table of Contents 13. SEGMENT REPORTING AND FOREIGN OPERATIONS We report our operations in two operating segments: cardiovascular and endoscopy. Our cardiovascular segment consists of four product categories: peripheral intervention, cardiac intervention, custom procedural solutions, and OEM. Within these product categories, we sell a variety of products, including cardiology and radiology devices (which assist in diagnosing and treating coronary arterial disease, peripheral vascular disease and other non-vascular diseases), as well as embolotherapeutic, cardiac rhythm management, electrophysiology, critical care, breast cancer localization and guidance, biopsy, and interventional oncology and spine devices. Our endoscopy segment consists of gastroenterology and pulmonology devices which assist in the palliative treatment of expanding esophageal, tracheobronchial and biliary strictures caused by malignant tumors. Our chief operating decision maker is our Chief Executive Officer. Our CODM uses segment profit or loss to assess performance and allocate resources to each segment, primarily through periodic budgeting and segment performance reviews. See Note 2, Revenues to our consolidated financial statements set forth in Item 8 of this report for a detailed breakout of our sales by operating segment and product category, disaggregated between domestic and international sales. Total assets by segment are not used by the CODM to assess performance or allocate resources to the Company’s segments; therefore, total assets by segment are not disclosed. During the years ended December 31, 2025, 2024 and 2023, we had international sales of $ 606.4 million, $ 555.7 million and $ 530.4 million, respectively, or 40.0 %, 41.0 % and 42.2 %, respectively, of net sales. Our largest international markets include China, Japan, Germany, France and the United Kingdom. International sales are attributed based on location of the customer receiving the product. Our long-lived assets (which are comprised of our net property and equipment) by geographic area at December 31, 2025, 2024 and 2023, consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ ​ ​ December 31, 2024 ​ ​ ​ December 31, 2023 United States ​ $ 300,593 ​ $ 271,734 ​ $ 273,105 Ireland ​ 49,492 ​ 45,325 ​ 42,333 Other foreign countries ​ 78,316 ​ 69,106 ​ 68,085 Total ​ $ 428,401 ​ $ 386,165 ​ $ 383,523 ​ Financial information relating to our reportable operating segments and reconciliations to the consolidated totals for the years ended December 31, 2025, 2024 and 2023, are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ 2024 ​ 2023 ​ ​ Cardiovascular ​ Endoscopy ​ Consolidated ​ Cardiovascular ​ Endoscopy ​ Consolidated ​ Cardiovascular ​ Endoscopy ​ Consolidated Net sales $ 1,443,042 $ 72,864 $ 1,515,906 $ 1,301,744 ​ $ 54,770 $ 1,356,514 $ 1,220,560 $ 36,806 $ 1,257,366 Cost of sales standard (1) ​ ​ 576,864 ​ ​ 18,067 ​ ​ ​ ​ ​ 549,657 ​ ​ 15,746 ​ ​ ​ ​ ​ 534,826 ​ ​ 12,987 ​ ​ ​ Cost of sales other (2) ​ 173,686 ​ 9,019 ​ ​ ​ 140,948 ​ 6,830 ​ ​ ​ 125,388 ​ 293 ​ ​ Selling, general and administrative expenses ​ 431,252 ​ 23,962 ​ ​ ​ 376,734 ​ 22,997 ​ ​ ​ 362,082 ​ 11,594 ​ ​ Research and development expenses ​ ​ 94,157 ​ ​ 3,195 ​ ​ ​ ​ ​ 83,812 ​ ​ 3,654 ​ ​ ​ ​ ​ 80,300 ​ ​ 2,428 ​ ​ ​ Other operating expenses (3) ​ ​ 950 ​ ​ 34 ​ ​ ​ ​ ​ 443 ​ ​ — ​ ​ ​ ​ ​ 3,524 ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from operations ​ $ 166,133 ​ $ 18,587 ​ $ 184,720 ​ $ 150,150 ​ $ 5,543 ​ $ 155,693 ​ $ 114,440 ​ $ 9,504 ​ $ 123,944 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total other expense — net ​ ​ ​ ​ ​ ​ ​ ​ ( 13,783 ) ​ ​ ​ ​ ​ ​ ​ ​ ( 5,700 ) ​ ​ ​ ​ ​ ​ ​ ​ ( 11,855 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income before income taxes ​ ​ ​ ​ ​ ​ $ 170,937 ​ ​ ​ ​ ​ ​ $ 149,993 ​ ​ ​ ​ ​ ​ $ 112,089 ​ (1) Cost of sales standard represents costs of goods sold measured at the internal standard cost for production of inventory. Inventory standard costs include material, labor and manufacturing overhead. (2) Cost of sales other for all segments include amortization expense associated with our developed technology and license agreement intangible assets, freight and handling associated with shipments to customers, provisions based on estimated excess, slow moving and obsolete inventories, manufacturing and price variances, and royalties. (3) Other operating expenses include impairment charges, contingent consideration expense related to the changes in fair value of contingent payments associated with acquisitions, and acquired in-process research and development expense. 84 Table of Contents Total depreciation and amortization by operating segment for the years ended December 31, 2025, 2024 and 2023, consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 Cardiovascular $ 113,785 ​ $ 97,749 ​ $ 88,960 Endoscopy 9,383 ​ 4,960 ​ 1,025 Total $ 123,168 ​ $ 102,709 ​ $ 89,985 ​ ​ ​ ​ ​ 14. EMPLOYEE BENEFIT PLANS We have defined contribution plans covering all U.S. full-time adult employees and certain of our foreign employees. Our contributions to these plans are discretionary in certain countries, including the U.S. Total expense for contributions made to these plans for the years ended December 31, 2025, 2024 and 2023 was $ 10.8 million, $ 9.6 million and $ 8.8 million, respectively. ​ ​ 15. FAIR VALUE MEASUREMENTS Assets (Liabilities) Measured at Fair Value on a Recurring Basis Our financial assets and (liabilities) carried at fair value measured on a recurring basis as of December 31, 2025 and 2024, consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements Using ​ ​ Total Fair ​ Quoted prices in ​ Significant other ​ Significant ​ ​ Value at ​ active markets ​ observable inputs ​ unobservable inputs ​ ​ ​ ​ December 31, 2025 ​ ​ ​ (Level 1) ​ ​ ​ (Level 2) ​ ​ ​ (Level 3) Money market funds (1) ​ $ 31,285 ​ $ 31,285 ​ $ — ​ $ — United States treasury debt securities (2) ​ ​ 5,230 ​ ​ 5,230 ​ ​ — ​ ​ — Foreign currency contract assets, current and long-term (3) ​ ​ 5,608 ​ ​ — ​ ​ 5,608 ​ ​ — Foreign currency contract liabilities, current and long-term (4) ​ ​ ( 4,227 ) ​ ​ — ​ ​ ( 4,227 ) ​ ​ — Contingent consideration liabilities ​ ​ ( 4,537 ) ​ ​ — ​ ​ — ​ ​ ( 4,537 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements Using ​ ​ Total Fair ​ Quoted prices in ​ Significant other ​ Significant ​ ​ Value at ​ active markets ​ observable inputs ​ unobservable inputs ​ ​ ​ ​ December 31, 2024 ​ ​ ​ (Level 1) ​ ​ ​ (Level 2) ​ ​ ​ (Level 3) Money market funds (1) ​ $ 10,034 ​ $ 10,034 ​ $ — ​ $ — Marketable securities (5) ​ ​ 92 ​ ​ 92 ​ ​ — ​ ​ — Foreign currency contract assets, current and long-term (3) ​ ​ 7,430 ​ ​ — ​ ​ 7,430 ​ ​ — Foreign currency contract liabilities, current and long-term (4) ​ ​ ( 2,907 ) ​ ​ — ​ ​ ( 2,907 ) ​ ​ — Contingent consideration liabilities ​ ​ ( 3,486 ) ​ ​ — ​ ​ — ​ ​ ( 3,486 ) ​ (1) Our money market fund represents a bank-managed money market fund which permits daily redemptions. The fund is recorded as cash equivalents in the consolidated balance sheets. (2) The fair value of U.S. treasury debt securities are determined using quoted prices for identical assets in active markets and is recorded as cash and cash equivalents in the consolidated balance sheets. 85 Table of Contents (3) The fair value of the foreign currency contract assets (including those designated as hedging instruments and those not designated as hedging instruments) is determined using Level 2 fair value inputs and is recorded as prepaid and other assets or other long-term assets in the consolidated balance sheets. (4) The fair value of the foreign currency contract liabilities (including those designated as hedging instruments and those not designated as hedging instruments) is determined using Level 2 fair value inputs and is recorded as accrued expenses or other long-term obligations in the consolidated balance sheets. (5) Our marketable securities, which consist entirely of available-for-sale equity securities, are valued using market prices in active markets. Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Certain of our business combinations involve the potential for the payment of future contingent consideration, generally based on a percentage of future product sales or upon attaining specified future revenue or other milestones. Contingent consideration liabilities are re-measured to fair value at each reporting period, with the change in fair value recognized within operating expenses in the accompanying consolidated statements of income. We measure the initial liability and re-measure the liability on a recurring basis using Level 3 inputs as defined under authoritative guidance for fair value measurements. Changes in the fair value of our contingent consideration liabilities during the years ended December 31, 2025 and 2024, consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Beginning balance $ 3,486 ​ $ 3,447 Contingent consideration liability recorded as the result of acquisitions 2,876 ​ — Contingent consideration expense 984 ​ 443 Contingent payments made ( 2,809 ) ​ ( 404 ) Ending balance $ 4,537 ​ $ 3,486 ​ As of December 31, 2025, $ 1.3 million in contingent consideration liability was included in other long-term obligations and $ 3.2 million in contingent consideration liability was included in accrued expenses in our consolidated balance sheet related to contingent liabilities. As of December 31, 2024, $ 3.1 million in contingent consideration liability was included in other long-term obligations and $ 0.4 million in contingent consideration liability was included in accrued expenses in our consolidated balance sheet related to contingent liabilities. Cash payments related to the settlement of the contingent consideration liability recognized at fair value as of the applicable acquisition date have been reflected as a cash outflow from financing activities in the accompanying consolidated statements of cash flows. Payments related to increases in the contingent consideration liability subsequent to the date of acquisition of $ 0.1 million and $ 0.1 million for the years ended December 31, 2025 and 2024 are reflected as operating cash flows. 86 Table of Contents The recurring Level 3 measurement of our contingent consideration liabilities includes the following significant unobservable inputs at December 31, 2025 and 2024 (amounts in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value at ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ Valuation ​ ​ ​ ​ ​ Weighted Contingent consideration liability ​ ​ ​ 2025 ​ ​ ​ technique ​ ​ ​ Unobservable inputs ​ ​ ​ Range ​ Average (1) Revenue-based royalty payments contingent liability ​ $ 1,533 Discounted cash flow Discount rate ​ 13.0 % ​ ​ ​ ​ ​ ​ Projected year of payments ​ 2026-2034 ​ 2029 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue milestones contingent liability ​ $ 94 Monte Carlo simulation Discount rate ​ 11.0 % ​ ​ ​ ​ ​ ​ Projected year of payments ​ 2026-2041 ​ 2041 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Acquisition-related milestone contingent liability ​ $ 2,910 ​ Scenario-based method ​ Discount rate ​ 4.7 % - 4.8 % ​ 4.7 % ​ ​ ​ ​ ​ ​ ​ Probability of milestone payment ​ 95.0 % - 100.0 % ​ 97.2 % ​ ​ ​ ​ ​ ​ ​ Projected year of payments ​ 2026 ​ ​ (1) Unobservable inputs were weighted by the relative fair value of the instruments. No weighted average is reported for contingent consideration liabilities without a range of unobservable inputs. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value at ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ Valuation ​ ​ ​ ​ ​ Weighted Contingent consideration liability ​ ​ ​ 2024 ​ ​ ​ technique ​ ​ ​ Unobservable inputs ​ ​ ​ Range ​ Average (1) Revenue-based royalty payments contingent liability ​ $ 2,217 Discounted cash flow Discount rate ​ 14.0 % - 16.0 % ​ 14.6 % ​ ​ ​ ​ Projected year of payments ​ 2025-2034 ​ 2028 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue milestones contingent liability ​ $ 88 Monte Carlo simulation Discount rate ​ 13.0 % ​ ​ ​ ​ ​ ​ Projected year of payments ​ 2025-2040 ​ 2039 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Regulatory approval contingent liability ​ $ 1,181 ​ Scenario-based method ​ Discount rate ​ 6.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ Probability of milestone payment ​ 50.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ Projected year of payment ​ 2025-2026 ​ 2025 (1) Unobservable inputs were weighted by the relative fair value of the instruments. No weighted average is reported for contingent consideration liabilities without a range of unobservable inputs. The contingent consideration liabilities are re-measured to fair value each reporting period using projected revenues, discount rates, probabilities of payment, and projected payment dates. Projected contingent payment amounts are discounted back to the current period using a discounted cash flow model. Projected revenues are based on our most recent internal operational budgets and long-range strategic plans. An increase (decrease) in either the discount rate or the time to payment, in isolation, may result in a significantly lower (higher) fair value measurement. A decrease (increase) in the probability of any milestone payment may result in lower (higher) fair value measurements. Our determination of the fair value of contingent consideration liabilities could change in future periods based upon our ongoing evaluation of these significant unobservable inputs. We intend to record any such change in fair value to operating expenses in our consolidated statements of income. 87 Table of Contents Contingent Payments to Related Parties. As a former shareholder of Cianna Medical, a former Merit director was eligible for payments for the achievement of sales milestones specified in our merger agreement with Cianna Medical completed in 2018. The terms of the acquisition, including contingent consideration payments, were determined prior to the appointment of the former Cianna Medical shareholder as a Merit director. During 2023, we made the final contingent payment to Cianna Medical Shareholders, including $ 0.9 million paid to the former Merit director who is a former Cianna Medical shareholder . Fair Value of Other Financial Instruments The carrying amount of cash and cash equivalents, receivables, and trade payables approximate fair value because of the immediate, short-term maturity of these financial instruments. Our long-term debt under our Amended Fourth A&R Credit Agreement re-prices frequently due to variable rates and entails no significant changes in credit risk and, as a result, we believe the fair value of long-term debt approximates carrying value. The fair value our long-term debt under our convertible notes was $ 900.7 million as of December 31, 2025 and was determined based on quoted prices in markets that are not active, which is considered a Level 2 valuation input. The fair value of assets and liabilities whose carrying value approximates fair value is determined using Level 2 inputs, with the exception of cash and cash equivalents, which are Level 1 inputs. Impairment Charges We recognize or disclose the fair value of certain assets, such as non-financial assets, primarily property and equipment, right-of-use operating lease assets, equity investments in privately held companies, intangible assets and goodwill in connection with impairment evaluations. All of our nonrecurring valuations use significant unobservable inputs and therefore fall under Level 3 of the fair value hierarchy. Equity Investments, Purchase Options and Notes Receivable. During the year ended December 31, 2023, we recorded impairment charges of $ 0.3 million associated with our previously held equity investment in Bluegrass in connection with the Bluegrass asset acquisition completed on May 4, 2023 (see Note 3 Acquisitions and Other Strategic Transactions ). We had no such losses during the years ended December 31, 2025 and 2024. Our equity investments in privately held companies were $ 28.7 million and $ 22.8 million at December 31, 2025 and 2024, respectively, which are included within other long-term assets in our consolidated balance sheets. We analyze our investments in privately held companies to determine if they should be accounted for using the equity method based on our ability to exercise significant influence over operating and financial policies of the investment. Investments not accounted for under the equity method of accounting are accounted for at cost minus impairment, if applicable, plus or minus changes in valuation resulting from observable transactions for identical or similar investments. Current Expected Credit Losses Our outstanding notes receivable, including accrued interest and our allowance for current expected credit losses, were $ 21.6 million and $ 9.4 million, as of December 31, 2025 and 2024, respectively. As of December 31, 2025 and 2024, we had an allowance for current expected credit losses of $ 2.6 million and $ 1.4 million, respectively, associated with these notes receivable. We assess the allowance for current expected credit losses on an individual security basis, due to the limited number of securities, using a probability of default model, which is based on relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect the expected collectability of securities. 88 Table of Contents The table below presents a rollforward of the allowance for current expected credit losses on our notes receivable for the years ended December 31, 2025 and 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ 2024 Beginning balance $ 1,366 ​ $ 568 Provision for credit loss expense ​ 1,259 ​ ​ 798 Ending balance $ 2,625 ​ $ 1,366 ​ ​ ​ ​ 16. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The changes in each component of accumulated other comprehensive income (loss) for the years ended December 31, 2025, 2024 and 2023 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flow Hedges ​ ​ ​ Foreign Currency Translation ​ ​ ​ Total BALANCE — January 1, 2023 $ 4,366 ​ ​ ( 15,916 ) ​ ​ ( 11,550 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive income 4,518 ​ ​ 2,959 ​ ​ 7,477 Income taxes 866 ​ ​ ( 39 ) ​ ​ 827 Reclassifications to: ​ ​ ​ ​ ​ ​ ​ ​ Revenue ​ ( 4,081 ) ​ ​ ​ ​ ​ ( 4,081 ) Cost of sales ​ ( 1,457 ) ​ ​ ​ ​ ​ ( 1,457 ) Interest expense ​ ( 2,550 ) ​ ​ ​ ​ ​ ( 2,550 ) Net other comprehensive (loss) income ​ ( 2,704 ) ​ ​ 2,920 ​ ​ 216 ​ ​ ​ ​ ​ ​ ​ ​ ​ BALANCE — December 31, 2023 ​ 1,662 ​ ​ ( 12,996 ) ​ ​ ( 11,334 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive income (loss) 5,884 ​ ​ ( 9,224 ) ​ ​ ( 3,340 ) Income taxes ( 341 ) ​ ​ 54 ​ ​ ( 287 ) Reclassifications to: ​ ​ ​ ​ ​ ​ ​ ​ Revenue ​ ( 2,140 ) ​ ​ ​ ​ ​ ( 2,140 ) Cost of sales ​ ( 644 ) ​ ​ ​ ​ ​ ( 644 ) Interest expense ​ ( 1,656 ) ​ ​ ​ ​ ​ ( 1,656 ) Net other comprehensive income (loss) ​ 1,103 ​ ​ ( 9,170 ) ​ ​ ( 8,067 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ BALANCE — December 31, 2024 ​ 2,765 ​ ​ ( 22,166 ) ​ ​ ( 19,401 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive income 48 ​ ​ 17,955 ​ ​ 18,003 Income taxes 302 ​ ​ ( 1,213 ) ​ ​ ( 911 ) Reclassifications to: ​ ​ ​ ​ ​ ​ ​ ​ Revenue ​ ( 1,176 ) ​ ​ ​ ​ ​ ( 1,176 ) Cost of sales ​ ( 151 ) ​ ​ ​ ​ ​ ( 151 ) Net other comprehensive (loss) income ​ ( 977 ) ​ ​ 16,742 ​ ​ 15,765 ​ ​ ​ ​ ​ ​ ​ ​ ​ BALANCE — December 31, 2025 $ 1,788 ​ $ ( 5,424 ) ​ $ ( 3,636 ) ​ ​ 89 Table of Contents 17. LEASES We have operating leases for facilities used for manufacturing, research and development, sales and distribution, and office space, as well as leases for manufacturing and office equipment, vehicles, and land. Our leases have remaining terms ranging from less than one year to approximately 24 years . A number of our lease agreements contain options to renew at our discretion for periods of up to 15 years and options to terminate the leases within one year . The lease term used to calculate right-of-use assets and lease liabilities includes renewal and termination options that are deemed reasonably certain to be exercised. Lease agreements with lease and non-lease components are generally accounted for as a single lease component. We do not have any bargain purchase options in our leases. For leases with an initial term of one year or less, we do not record a right-of-use asset or lease liability on our consolidated balance sheet. From time to time, we enter into agreements to sublease a portion of our facilities to third parties. Such sublease income is not material. We also lease certain hardware consoles to customers and record rental revenue as a component of net sales. Rental revenue under such console leasing arrangements for the years ended December 31, 2025, 2024 and 2023 was not significant. The following was included in our consolidated balance sheet as of December 31, 2025 and 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ ​ ​ December 31, 2024 Assets ​ ​ ​ ​ Right-of-use operating lease assets ​ $ 87,600 ​ $ 65,508 ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ Short-term operating lease liabilities ​ $ 10,876 ​ $ 10,331 Long-term operating lease liabilities ​ 76,658 ​ 54,783 Total operating lease liabilities ​ $ 87,534 ​ $ 65,114 ​ We recognize lease expense for operating leases on a straight-line basis over the term of the lease. Net lease cost for the years ended December 31, 2025, 2024 and 2023 was $ 17.2 million, $ 15.4 million, and $ 14.4 million, respectively. The components of lease costs for the years ended December 31, 2025, 2024 and 2023 were as follows, in thousands: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lease Cost ​ Classification ​ 2025 ​ 2024 ​ 2023 Operating lease cost (a) Selling, general and administrative expenses ​ $ 17,467 ​ $ 15,885 ​ $ 14,879 Sublease (income) (b) Selling, general and administrative expenses ​ ( 265 ) ​ ( 462 ) ​ ( 488 ) Net lease cost ​ ​ $ 17,202 ​ $ 15,423 ​ $ 14,391 ​ (a) Includes expense related to short-term leases and variable payments, which were not significant. (b) Does not include rental revenue from leases of hardware consoles to customers, which was not significant. Supplemental cash flow information for the years ended December 31, 2025, 2024 and 2023 was as follows, in thousands: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ 2024 ​ 2023 Cash paid for amounts included in the measurement of lease liabilities ​ $ 15,607 ​ $ 14,529 ​ $ 13,804 Right-of-use assets obtained in exchange for lease obligations ​ $ 32,684 ​ $ 9,947 ​ $ 8,891 ​ 90 Table of Contents Generally, our lease agreements do not specify an implicit rate. Therefore, we estimate our incremental borrowing rate, which is defined as the interest rate we would pay to borrow on a collateralized basis, considering such factors as length of lease term and the risks of the economic environment in which the leased asset operates. As of December 31, 2025, 2024 and 2023, our lease agreements had the following remaining lease term and discount rates: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ ​ December 31, 2024 ​ ​ December 31, 2023 Weighted average remaining lease term ​ 12.2 years ​ ​ 9.6 years ​ ​ 9.6 years Weighted average discount rate ​ 7.2 % ​ ​ 3.5 % ​ ​ 3.4 % ​ As of December 31, 2025, maturities of operating lease liabilities were as follows, in thousands: ​ ​ ​ ​ Year ending December 31, ​ ​ ​ Amounts due under operating leases 2026 ​ $ 15,227 2027 ​ 13,834 2028 ​ 11,111 2029 ​ 9,522 2030 ​ 8,436 Thereafter ​ 84,613 Total lease payments ​ 142,743 Less: Imputed interest ​ ( 55,209 ) Total ​ $ 87,534 ​ ​ 18. SUBSEQUENT EVENTS On January 31, 2026, Merit and Health Line International Corporation (“HL”) entered into an Asset Purchase Agreement (the “HL Purchase Agreement”), pursuant to which Merit agreed to sell certain assets relating to the Dual Cap® product line to HL for a purchase price of $ 28 million(the “Purchase Price” and such transaction, the “HL Transaction”). Merit and HL closed the HL Transaction on February 17, 2026. Pursuant to the terms of the HL Purchase Agreement, at the closing, HL (i) paid Merit $ 25.5 million of the Purchase Price and (ii) held back the remaining $ 2.5 million of the Purchase Price for a period of 18 months following closing as security (with a right of offset) for breaches of Merit’s representations and warranties and certain other obligations under the HL Purchase Agreement. In order to facilitate the transition of the DualCap® business from Merit to HL, at the closing of the HL Transaction, Merit and HL entered into, among other agreements, a contract manufacturing agreement and a transition and distribution services agreement, pursuant to which Merit is obligated to perform certain manufacturing, transition and distribution services to HL for a period of up to 24 months after the closing. ​ ​ ​ 91 Table of Contents Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. None. ​