Utah Medical Products revenue falls 14.3% in Q2 2026 as two former top customers book zero in sales
Second-quarter revenues for Utah Medical Products, Inc. (Nasdaq: UTMD) fell 14.3% to $8.529 million from $9.953 million a year earlier, the company disclosed Wednesday, with zero sales from two previously top accounts responsible for 75% of the shortfall. The Salt Lake City medical device maker had planned to replace $2.889 million in annual lost revenue through new biopharma OEM customers; through the first half of 2026, those accounts generated only $211 thousand.
Key takeaways
- Utah Medical Products' Q2 2026 revenue fell 14.3% to $8.529 million from $9.953 million a year earlier.
- Two former top accounts—PendoTECH and an unnamed Chinese distributor—booked zero sales in Q2 2026 and accounted for 75% of the quarterly shortfall.
- New biopharma OEM customers meant to replace $2.889 million in lost annual revenue generated only $211 thousand in the first half of 2026.
- Q2 2026 gross profit margin narrowed to 55.8% from 56.2%, while net income margin improved to 31.5% from 30.6% a year earlier.
- UTMD ended the quarter debt-free with $87.5 million in cash and investments as of June 30, 2026.
Second-quarter revenues for Utah Medical Products, Inc. (Nasdaq: UTMD) fell 14.3% to $8.529 million from $9.953 million a year earlier, the company disclosed Wednesday, with zero sales from two previously top accounts responsible for 75% of the shortfall. The Salt Lake City medical device maker had planned to replace $2.889 million in annual lost revenue through new biopharma OEM customers; through the first half of 2026, those accounts generated only $211 thousand.
Revenue gap driven by two departed accounts
PendoTECH, previously UTMD's largest domestic OEM customer for biopharma pressure monitoring devices and accessories, contributed $196 thousand in second-quarter 2025 domestic sales and zero in the same period this year. An unnamed Chinese distributor, formerly the company's largest outside-U.S. account for blood pressure monitoring kits, added $870 thousand in 2Q 2025 international revenue, also zero in 2Q 2026. The two entities combined for $1,066 thousand in 2Q 2025 sales.
The same dynamic shaped the first half. UTMD reported 1H 2026 revenues of $17.252 million, down 12.3% from $19.663 million. The two former accounts represented $1.923 million, or 80%, of the 1H decline, according to the release.
Margins pressured, litigation costs add drag
Gross profit margin contracted to 55.8% in 2Q 2026 from 56.2% in 2Q 2025, as consolidated manufacturing overhead did not fall proportionally with the lower sales base. Operating income margin slid further, to 31.1% from 32.1%, partly because U.S. litigation costs ran $213 thousand higher than in 2Q 2025. For the first half, litigation costs exceeded the year-earlier period by $341 thousand, the release shows.
Net income margin improved despite the operating-level pressure, reaching 31.5% in 2Q 2026 against 30.6% a year ago. A lower estimated average income tax provision rate absorbed part of the compression.
Balance sheet remains debt-free
UTMD closed the quarter with no debt. Cash and investments stood at $87.5 million on June 30, 2026, up from $85.8 million on December 31, 2025, after the company paid $2.0 million in cash dividends, repurchased $0.2 million in common stock, and spent $0.3 million on capital expenditures during the first half. Share buyback activity was minimal relative to the same period in 2025, the company said.
Outside the United States, 2Q 2026 sales fell 17.7% to $3.363 million from $4.088 million. Excluding the China distributor, international sales were $145 thousand higher year over year. UTMD said its Form 10-Q for the second quarter is scheduled to be filed in August.