Merit Medical’s Third Quarter Marks a Strong Finish for Founder Fred Lampropoulos and Sets the Stage for Incoming CEO/President Martha Aronson

Q3 2025 revenue at Merit was up 13% YoY to $384 million as its longtime founder exits the CEO role after nearly four decades of steady growth.

12 October 2025 — South Jordan, Utah — I suspect nobody was surprised.

But Fred Lampropoulos has left Merit Medical Systems on very solid footing as Merit’s last quarter with Lampropoulos as its president and CEO went quite well.

Merit (NASDAQ:MMSI), the South Jordan-based medical-device manufacturer and one of Utah’s longest-standing public companies, delivered another quarter of solid growth under outgoing President and CEO Fred Lampropoulos, his final full quarter at the helm before handing the reins to incoming leader, Martha Aronson.

The Quarter by the Numbers

For its 2025 third quarter (ended 30 September 2025), Merit generated revenue of $384.2 million, up 13 percent from Q3 2024, and posted non-GAAP earnings per share of $0.92, an 11 percent beat over consensus estimates.

GAAP net income for the quarter totaled $27.8 million, with gross margin rising to 48.5 percent (GAAP) and 53.6 percent (non-GAAP).

Year-to-date free cash flow exceeded $140 million, and management raised full-year guidance to $1.50 – $1.52 billion in sales and $3.66 – $3.79 in non-GAAP Earnings Per Share (EPS), reflecting ongoing strength in both core cardiovascular and endoscopy segments.

A Founder’s Final Quarter

For nearly 40 years, Lampropoulos has been the driving force behind Merit, from its start in 1987 to its IPO in 1990 to today’s slow but steady emergence as a $1.5 billion global enterprise.

Q3 2025 was Lampropoulos' last as CEO and President, a final period of record gross margins and steady top-line growth that underscored the durability of his vision and the organization he built.

Officially, the leadership transition at Merit occurred the same day as the firm released its quarterly results announcement, as noted by the fact that Aaronson was the executive quoted in the release:

“Merit delivered better-than-expected financial performance in the third quarter, with top and bottom-line results exceeding the high-end of the company’s expectations. ...

“I am proud to join the Merit Medical team and am committed to working closely with the executive leadership team, Fred and the rest of Merit’s Board of Directors to achieve a smooth transition and continued strong execution towards our Continued Growth Initiatives Program and related financial targets for the three-year period ending December 31, 2026.”

As announced previously, Lampropoulos continues as Chairman of the Board, guiding from the strategic level while ceding day-to-day leadership to Martha G. Aronson as Merit's new President and CEO.

A Leadership Transition, Not a Pivot

Aronson joins Merit after successful senior roles in the Life Sciences industry with industry leaders Ecolab, Hill-Rom, and Medtronic.

Her first official day as the President and CEO at Merit came just days after the quarter closed.

That means the strong Q3 numbers belong squarely to Lampropoulos and his team, while Aronson inherits an organization in excellent operational shape.

To me, the bottom line is this:

Fred Lampropoulos didn’t just build Merit; he handed it off running at full speed.

Now Aronson has the opportunity to build upon that foundation and extend the company’s record of steady, profitable growth.

Why It Matters

To be honest, top executive transitions are not always clean or seamless, as many founder-led firms struggle with succession.

In the case of Merit, however, all signals are figuratively "Green" coming out of South Jordan.

Specifically, this transition appears to have been timed well, both from a position of strength and stability.

For Utah’s business community, it also marks a notable moment: a female executive now leads one of the state’s most enduring public companies.

Additionally, it showcases for others how a founder can manage a Chief Executive exit on his / her own terms.

What’s Next

🔹 Execution Continuity:  It appears that Aronson has inherited a company with clear momentum and a tested leadership bench.

🔹 Growth Opportunities:  That said, whether Merit accelerates acquisitions or sticks to organic expansion remains to be seen.

NOTE: Merit did announce in mid-October an agreement to purchase the C2 CryoBalloon assets from Pentax of America for $19 million to $22 million in cash (the final figure being determined by certain results between now and the end of 2025).

This continues a fairly steady strategy by Merit to acquire certain medical device assets as a way of building out its device portfolio.

The deal is expected to close on/before 31 December 2025.

🔹 Strategic Oversight:  Last of all, Lampropoulos will still be in the boardroom as Merit's chair, essentially a steady hand on the rudder as the company enters its next phase.

The Bottom Line

Merit’s Q3 2025 results — up 13 percent year-over-year and with record gross margins — close out the Fred Lampropoulos era on a high note.

The transition to Aronson's leadership role as the "Merit Captain" means she begins with the wind at her back and the company’s financial engine firing on all cylinders.

In Utah’s Life Sciences ecosystem, this handoff from founder to successor feels both rare and remarkably well-timed.

To me, the smart money is on Merit continuing its steady, non-flashy tradition of quietly delivering quarter after quarter of profitable growth.

Publisher’s Note

This article was originally distributed to Utah Money Watch subscribers on 12 October 2025 at ~10:15am (MT).

If you first saw this story after that date and would prefer to receive breaking financial news about Utah companies as it happens, visit www.UtahMoneyWatch.com and subscribe for free email delivery of future reports.