Utah Medical Products, Inc. (UTMD): Business Model Canvas [Apr-2026 Updated]

You're looking at Utah Medical Products, Inc. (UTMD) and seeing a classic financial puzzle: a fortress balance sheet boasting $82.2 million in cash and investments as of June 30, 2025, yet facing revenue headwinds that make you pause. Honestly, digging into their Business Model Canvas reveals a highly specialized manufacturer of women's health and neonatal devices that commands a solid 56.6% gross margin on its $19.663 million in first-half 2025 net sales, but the shrinking OEM component channel is a clear risk you need to factor in. So, before you decide on your next move, let's break down exactly how this company generates its revenue streams and where their long-term value truly lies across the nine essential building blocks below.

Utah Medical Products, Inc. (UTMD) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep Utah Medical Products, Inc. (UTMD) running, especially as some of those relationships are shifting dramatically in 2025. These partnerships are where the product gets made, sold, and distributed globally. Let's break down the numbers we see as of the third quarter of 2025.

Femcare (Distributor for U.S. Filshie Clip System)

This relationship is straightforward: Utah Medical Products, Inc. acts as the U.S. distributor for the Filshie Clip System, a product whose ultimate liability rests with Femcare Ltd. This channel remains a key part of the domestic business, though its overall percentage contribution is shifting.

Here's how the U.S. Filshie Clip System sales look for the first half of 2025 compared to the prior year:

Even in the shorter term, the growth continued into the third quarter:

• 2Q 2025 U.S. Filshie Clip System sales were $1,107 thousand, up from $1,021 thousand in 2Q 2024.
• For context, in 2023, Filshie clip sales made up 24% of UTMD's total U.S. Dollar denominated sales.

OEM Customers for Component Manufacturing (e.g., PendoTECH, though declining)

The relationship with PendoTECH, your previously largest OEM customer, is definitely in its final phase. This decline is the single biggest driver of revenue contraction across the board for Utah Medical Products, Inc. in 2025.

The drop-off in sales to PendoTECH is stark:

The trend is expected to nearly conclude this year; management projected an additional decline of about $2 million for PendoTECH sales for the full 2025 year. Domestically, OEM sales as a whole are shrinking fast, representing only 11% of total domestic sales in 9M 2025, down from 20% in 2Q 2024. The PendoTECH portion of domestic OEM sales in 9M 2025 was down 84.6%, or $1,985 thousand lower than in 9M 2024.

International Distributors for Sales Outside the U.S. (OUS)

Sales outside the U.S. are complex, involving direct sales by subsidiaries and shipments to OUS distributors invoiced in various currencies. The reliance on foreign currency invoicing is decreasing.

Here are the figures showing the shift in OUS invoicing:

• Portion of OUS sales invoiced in foreign currencies was 28.7% of total consolidated 3Q 2025 sales (down from 34.5% in 3Q 2024).
• Portion of OUS sales invoiced in foreign currencies was 30.0% of total consolidated 9M 2025 sales (down from 33.5% in 9M 2024).

Specific distributor performance shows pressure, particularly with the China distributor:

• Sales to the China distributor were $395 thousand in 3Q 2025 (including a cancellation fee) versus $781 thousand in 3Q 2024.
• For the nine months ending 9M 2025, sales to this distributor totaled $2,054 thousand, compared to $2,368 thousand in 9M 2024.
• Excluding WW Filshie devices, revenue from OUS Distributors fell from $10.8 million to $8.7 million year-over-year.

Suppliers for Raw Materials (Plastics, Silicone Compounds)

Your cost structure is being directly impacted by global trade-specifically tariffs on imported components, which hit the Gross Profit margin.

Tariff costs embedded in manufacturing expenses are a new, measurable factor:

Also, note that lower Gross Profit Margins in 1H 2025 (56.6%) compared to 1H 2024 (59.9%) were partly attributed to higher raw material costs.

Finance: draft 13-week cash view by Friday.

Utah Medical Products, Inc. (UTMD) - Canvas Business Model: Key Activities

You're looking at the core engine room of Utah Medical Products, Inc. (UTMD) operations as of late 2025. These are the things the company absolutely must do well to keep the lights on and the devices flowing.

Manufacturing proprietary, disposable medical devices

Utah Medical Products, Inc. focuses on the actual making of their specialized healthcare products, which include infusion therapy and labor and delivery devices. This activity directly impacts the Gross Profit Margin (GP/sales), which for the first half of 2025 (1H 2025) stood at 56.60%, down from 59.90% in 1H 2024. The third quarter of 2025 (3Q 2025) saw a GP margin of 56.2%. Manufacturing costs are sensitive to supply chain issues; for instance, U.S. tariffs on imported components amounted to $78 thousand in 3Q 2025, mostly from importing Filshie devices from UTMD Ireland. For the first nine months of 2025 (9M 2025), these tariffs totaled $94 thousand. The company's total consolidated sales for 9M 2025 were $2,271 thousand lower than in 9M 2024.

Research and development (R&D) of new medical technologies

The company dedicates resources to developing new technologies, though this spending saw a reduction in 2025. R&D expenses, which are only incurred in the U.S., were $457 thousand for 9M 2025, representing 1.6% of sales for that period. This was a significant decrease of $235 thousand compared to 9M 2024. This reduction was tied to the completion of independent testing and validation for UTMD's own-branded biopharmaceutical high-pressure monitoring devices that the company has started to market. R&D expense in 3Q 2025 was $167 thousand, or 1.7% of sales.

Global distribution and sales network management

Getting the devices to market involves managing a global network, which faced headwinds in 2025 due to international trade uncertainty. Total worldwide (WW) consolidated sales for 9M 2025 were $2,271 thousand lower than in 9M 2024. Outside the U.S. (OUS) sales were particularly impacted, dropping 13.3% in 9M 2025. The challenges were evident as OUS sales were 15.5% lower in 1H 2025 compared to 1H 2024, totaling $8,215 thousand. Domestic U.S. sales in 9M 2025 were $17,308 thousand. Direct other device sales, which make up 69% of total domestic sales, actually increased by 9.8% in 9M 2025.

Disciplined capital allocation (share repurchases, dividends)

Utah Medical Products, Inc. actively manages its capital structure by returning cash to shareholders. In the first half of 2025 (1H 2025), the company paid $2.018 million in dividends. They also used cash to repurchase shares, buying back 119,255 shares at an average price of $56.26 per share during 1H 2025. Looking at the first nine months of 2025 (9M 2025), cash payments for dividends totaled $3,006 thousand, and $7,361 thousand was used for share repurchases. As of June 30, 2025, the cash and investments balance was $82.2 million, and the company maintained no debt. As of November 10, 2025, the number of shares outstanding was 3,203,672.

Here are the recent dividend details:

• Next Ex-Dividend Date (Estimated): December 16, 2025.
• Next Dividend Amount Per Share: $0.310.
• Last Ex-Dividend Date: September 17, 2025.
• Last Dividend Amount Per Share: $0.305.

Maintaining stringent quality and regulatory compliance

Compliance is fundamental to medical device manufacturing, though specific dollar amounts for compliance activities are often bundled. Gross Profit (GP) results are calculated after subtracting costs of manufacturing, quality assurance, and receiving materials. The company's focus on quality and regulatory adherence is implicit in its cost structure and its ability to maintain sales in regulated international markets like Ireland, the UK, France, Canada, Australia, and New Zealand, which accounted for 37% of OUS sales in 1H 2025. The company's Operating Income Margin (OI/sales) for 3Q 2025 was 32.1%, and for 9M 2025 it was 32.3%.

You can see a snapshot of how operating expenses, which include quality assurance costs, compare across the nine-month period:

Utah Medical Products, Inc. (UTMD) - Canvas Business Model: Key Resources

You're looking at the core assets Utah Medical Products, Inc. (UTMD) relies on to deliver value. These aren't just things they own; they are the engine room of the business.

The financial foundation is notably solid. As of September 30, 2025, Utah Medical Products, Inc. reported a strong cash and investments balance of $84.3 million. This liquidity supports operations, shareholder returns, and strategic flexibility, especially given the company maintains a debt-free status. The company also returned capital to shareholders, paying $3.0 million in dividends during the first nine months of 2025 and repurchasing 130,984 shares for $7.4 million in the same period.

The intellectual property forms the bedrock of the value proposition. This proprietary medical device intellectual property (IP) covers specialized technologies primarily focused on infusion therapy and women's/neonatal health. The company's ability to generate non-operating income, which included royalties from licensing technology, points to the value embedded in this IP.

Physical assets include dedicated manufacturing capabilities. Utah Medical Products, Inc. operates manufacturing facilities in both Utah and Ireland. The performance of the Ireland operations is a key variable, as gross profit margins have been affected by an unfavorable product mix there.

The human capital, particularly the leadership, is a critical resource. The experienced management team, led by Chairman, President, and CEO Kevin L. Cornwell, provides the overarching strategic vision. Principal Financial Officer Brian L. Koopman is instrumental in the financial stewardship and capital allocation decisions that maintain the company's strong balance sheet.

Here is a snapshot of some key quantifiable resources as of late 2025:

The operational structure relies on these key internal capabilities:

• Manufacturing footprint in Utah and Ireland.
• Deep expertise in infusion therapy devices.
• A management team with long tenure, including the CEO since 1992.
• Ability to generate non-operating income from investments and royalties.

The CEO, Kevin L. Cornwell, is a foundational leader, providing the strategic direction for the company's focus on specialized medical devices. His compensation of $455.08K is noted as being below the market average for similar-sized companies. The Principal Financial Officer, Brian L. Koopman, oversees the financial integrity and capital allocation strategy.

The company's commitment to shareholder returns is also a resource, demonstrating management's confidence in future cash flows:

• Share repurchases of $7.4 million in 9M 2025.
• Total dividends paid of $3.0 million in 9M 2025.
• Quarterly dividend increased by 1.6% to $0.31 per share.

Finance: draft 13-week cash view by Friday.

Utah Medical Products, Inc. (UTMD) - Canvas Business Model: Value Propositions

Utah Medical Products, Inc. (UTMD) delivers specialized devices focused on two critical areas: women's health and neonatal care. This specialization allows the company to target precise clinical needs within obstetrics/perinatology, neonatology/pediatrics, and gynecology.

The product portfolio includes devices like the AmnioHook, Fetal Spiral Electrode for labor and delivery, and systems such as DELTran Plus for neonatal critical care. Furthermore, Utah Medical Products, Inc. develops and markets devices for urology and electrosurgery, alongside products for critical care blood pressure monitoring and arterial blood collection.

The core design philosophy centers on achieving optimal long-term patient outcomes. Utah Medical Products, Inc. develops, manufactures, and markets specialty medical devices recognized by clinicians globally as the standard for obtaining these better health outcomes.

The offering is characterized by high-quality, reliable, and proprietary disposable devices, alongside some reusable specialty items. This focus on proprietary technology supports the company's financial performance, evidenced by a Gross Profit Margin of 56.6% for the first half of 2025 (1H 2025).

The value proposition is explicitly designed to provide both clinical advantages and economic benefits to healthcare providers. The company's commitment to this value proposition is reflected in its financial scale and efficiency:

The company's product lines are used across various hospital settings, including critical care areas, labor and delivery departments, and outpatient clinics. The focus on specialized, high-quality disposable items helps providers manage procedural efficiency and potentially reduce long-term costs associated with less effective tools.

The clinical focus areas that define these value propositions include:

• Obstetrics/Perinatology
• Neonatology/Pediatrics
• Gynecology
• Urology
• Electrosurgery
• Critical Care Blood Pressure Monitoring
• Arterial Blood Collection

For instance, the 1H 2025 Net Income was $6.089 million, showing the translation of these specialized offerings into profitability. The company maintains a strong financial footing to support ongoing development, as seen by its cash position.

Utah Medical Products, Inc. (UTMD) - Canvas Business Model: Customer Relationships

Direct, long-term relationships with medical facilities/clinicians form the core of Utah Medical Products, Inc. (UTMD)'s domestic business.

For U.S. domestic sales in the first nine months (9M) of 2025, direct sales channels were dominant:

• Direct other device sales, representing sales to user facilities and stocking distributors, accounted for 69% of total domestic sales for 9M 2025.
• Direct Filshie device sales represented 20% of total domestic sales in the third quarter (3Q) of 2025.
• In the first half (1H) of 2025, Direct non-Filshie device sales were 70% of domestic sales, while U.S. Filshie direct sales were 19% of domestic sales.

The relationship with international end-users saw currency-related headwinds in 9M 2025:

• Direct to end-user foreign currency OUS (Outside the U.S.) sales in USD terms showed declines compared to 9M 2024: 17.2% lower in Ireland, 20.4% lower in Canada, 24.0% lower in France, 4.5% lower in the UK, and 20.0% lower in AUS/NZ.

The Filshie Clip System, a key direct-to-facility product, is defended as the safest and most effective surgical sterilization device used in the U.S. since 1996.

The relationship with Original Equipment Manufacturer (OEM) customers is largely transactional, characterized by component supply agreements.

In 9M 2025, Domestic OEM sales represented 11% of total domestic sales. This segment experienced a significant contraction:

Management projected the full-year 2025 sales decline from PendoTECH to be about $2 million lower compared to 2024.

Distributor relationships are critical for Utah Medical Products, Inc. (UTMD)'s international market access, with OUS sales making up a notable portion of revenue.

For 9M 2025, sales invoiced in foreign currencies represented 30.0% of total consolidated WW sales when expressed in USD. Sales to OUS distributors/OEM customers specifically were 13.6% lower in 9M 2025 than in 9M 2024.

A specific distributor relationship faced severe strain in 3Q 2025:

• UTMD lost $581 thousand in 3Q 2025 revenues due to the cancellation or delay of orders by an OUS distributor.
• A EUR 360 thousand cancellation fee was invoiced to the China distributor for finished goods, work-in-process, and custom raw materials. This distributor relationship has existed for over two decades.

The company maintains a robust global distribution and sales network, reaching over one hundred countries.

The relationship model for specialized products necessitates a high-touch approach, particularly around regulatory and compliance matters.

Utah Medical Products, Inc. (UTMD) provides valuable regulatory support to its partners, which includes:

• Assistance with product registration.
• Compliance with FDA and international standards.
• Ensuring all products meet stringent quality and safety requirements.

The company's commitment to rigorous quality standards and regulatory compliance solidifies its position as a trusted partner.

Utah Medical Products, Inc. (UTMD) - Canvas Business Model: Channels

You're looking at how Utah Medical Products, Inc. gets its specialized medical devices and components into the hands of clinicians and other manufacturers as of late 2025. The channel strategy shows a clear pivot toward domestic direct sales while the legacy OEM channel shrinks significantly.

Direct Sales Force to U.S. Medical Facilities (Growing Domestically)

The domestic channel is showing strength, particularly in direct sales of medical devices to end-users and through stocking distributors. This segment is picking up the slack as the OEM business contracts. You see this shift in the composition of total domestic sales.

For the first half of 2025 (1H 2025), direct sales of non-OEM devices made up a much larger piece of the pie compared to the prior year. Specifically, direct non-Filshie device sales accounted for 69% of total domestic sales, up from 60% in 1H 2024. Also, direct Filshie device sales represented 19% of total domestic sales in 1H 2025, an increase from 17% in 1H 2024.

Looking at the third quarter (3Q 2025) specifically, direct other device sales grew by $290k, marking a 7.7% increase over 3Q 2024. The Filshie Clip System sales, which are manufactured in the Ireland subsidiary and sold intercompany, also saw strong growth in the U.S. direct channel, increasing by $169k or 16.5% in 3Q 2025 compared to 3Q 2024. This growth is defintely a key focus area.

Med/Surg Stocking Distributors for U.S. Hospitals

The structure for U.S. hospital sales includes both direct sales to user facilities and sales through med/surg stocking distributors. These are bundled into the domestic direct sales figures mentioned above, showing a clear trend of increasing direct engagement or reliance on these partners for device placement.

Here's a breakdown of how the domestic device sales components are shifting their weight within the total domestic sales mix for 1H 2025:

International Subsidiaries (Ireland, UK, Canada, Australia/New Zealand)

The international channel, serviced by subsidiaries in Ireland, the UK, Canada, and Australia/New Zealand, has faced headwinds in 2025. Total sales outside the U.S. (OUS) for the first half of 2025 were 15.5% lower than in 1H 2024, totaling $8,215k compared to $9,718k. The third quarter (9M 2025) OUS sales were down 13.3%.

The direct sales component within these international markets, which are invoiced in foreign currencies, also saw a contraction in 2Q 2025. The combined OUS direct sales from the Ireland, UK, Australia, and Canada subsidiaries totaled just $1,503k in 2Q 2025, down from $1,785k in 2Q 2024.

The performance varied by region in 2Q 2025:

• Direct sales in Ireland decreased by 21.5% in USD terms.
• Direct sales in Canada decreased by 22.5% in USD terms.
• Direct sales in the UK decreased by 5.4% in USD terms.
• Direct sales in Australia/New Zealand decreased by 39.8% in USD terms.

Despite the challenges, 37% of total OUS sales in 2Q 2025 were direct to medical facilities in these key international locations, a slight dip from 39% in 2Q 2024.

OEM Sales Channel for Components (Currently Shrinking)

The OEM channel, which involves selling components to other companies, is clearly shrinking, dominated by the reduction in sales to the major customer, PendoTECH. Management noted that sales to PendoTECH were expected to decline by another $2 million for the full year 2025, which would nearly eliminate that client relationship.

The impact on the domestic OEM channel is stark:

• Domestic OEM sales in 1H 2025 were $1,340k, a 51% drop from $2,760k in 1H 2024.
• This channel represented only 12% of total domestic sales in 1H 2025, down from 23% in 1H 2024.
• The PendoTECH portion of domestic OEM sales fell by 84.6% in 3Q 2025 compared to 3Q 2024.

For the first half of 2025, the sales to PendoTECH were only $264k (all domestic), a massive 87.1% reduction from $2,056k in 1H 2024. This channel's shrinking contribution is a major factor in the overall revenue decline Utah Medical Products, Inc. experienced in the first half of 2025.

Finance: draft 13-week cash view by Friday.

Utah Medical Products, Inc. (UTMD) - Canvas Business Model: Customer Segments

You're looking at the specific groups Utah Medical Products, Inc. (UTMD) serves, which really dictates where they focus their sales and development efforts. Honestly, it's a mix of direct clinical sales and business-to-business component supply.

Hospitals' Labor and Delivery/Neonatal Intensive Care Units (NICU).

This segment is core to UTMD's identity, focusing on products that help with infant care and delivery procedures. These are the end-users buying the devices directly for clinical use. For the first half of 2025 (1H 2025), domestic sales of direct devices, which includes these critical areas, increased by 7.6% when you exclude the OEM business. Looking specifically at the second quarter of 2025 (Q2 2025), direct domestic sales of non-Filshie devices-which covers a good chunk of this clinical portfolio-were up 10% compared to Q2 2024, making up 69% of total domestic sales for that quarter.

Gynecologists and surgical specialists.

This group is served through specialized instruments, including those for women's pelvic health and electrosurgery. The Filshie Clip System, a key product in this area, saw its domestic sales in the U.S. increase by 8% in Q2 2025 over Q2 2024. The segment covering Gynecology/Electrosurgery/Urology represented 65% of the total reported revenue of $17,458 thousand in the period covered by the 10-K filing.

Outpatient clinics and physicians' offices.

These customers are reached through direct sales channels, both domestically and internationally. While domestic direct sales are strong, international sales faced headwinds in 1H 2025, decreasing by 15.5% compared to 1H 2024, affecting sales to facilities in markets like Ireland, Canada, the UK, Australia/New Zealand, and France. Direct to end-user foreign currency sales in USD terms saw declines in specific OUS markets in the first nine months of 2025 (9M 2025), such as 17.2% lower in Ireland and 24.0% lower in France.

Other medical device and biopharma OEM companies (e.g., PendoTECH).

This is the Original Equipment Manufacturer (OEM) segment, where UTMD supplies components and sub-assemblies. The relationship with PendoTECH, UTMD's previously largest OEM customer, has significantly contracted. Sales to PendoTECH dropped by 61.7% in Q2 2025, totaling $196 thousand compared to $511 thousand in Q2 2024. For the first half of 2025, the decline was even steeper at 87.1%, with sales falling to $264 thousand from $2,056 thousand in 1H 2024. In 9M 2025, the PendoTECH portion of domestic OEM sales was 84.6% lower. Overall domestic OEM sales in 9M 2025 represented 11% of total domestic sales, down from 20% in 2Q 2024.

Here's a quick look at how the domestic sales mix shifted in Q2 2025, showing the relative importance of direct clinical sales versus OEM supply:

The company's direct sales channels are clearly gaining weight relative to the OEM channel, which is a strategic shift given the PendoTECH revenue drop. You can see the customer base is segmented by the type of medical need they address, which is helpful for understanding product focus:

• Labor and Delivery tools.
• Neonatal Intensive Care solutions.
• Gynecological care devices (e.g., Filshie Clip System).
• Blood Pressure Monitoring systems.
• Urological Care instruments.
• OEM components and assemblies.

The company serves a global customer base through approximately 200 distributors, with 104 of those distributors making purchases of at least $5,000 in 2024.

Utah Medical Products, Inc. (UTMD) - Canvas Business Model: Cost Structure

The Cost Structure for Utah Medical Products, Inc. (UTMD) is heavily influenced by its manufacturing base and the fixed nature of certain operating expenses. You see this clearly when sales volumes fluctuate, as the absorption of these fixed costs changes the resulting margins.

High Fixed Manufacturing Overhead Costs

Utah Medical Products, Inc. maintains a cost profile characterized by significant fixed manufacturing overhead (MOH) due to its vertical integration, which includes engineering, plastics processing, and materials handling. This structure means that MOH does not decrease proportionally with sales volume, creating operating leverage but also risk.

• Lower sales volumes, as seen in periods like 2Q 2025, result in less absorption of fixed MOH.
• This lack of proportional decline in MOH directly impacts the Gross Profit Margin (GPM).
• The company's success in maintaining productivity of its direct labor and MOH is often tied to raising product prices or achieving higher sales volume.

Cost of Goods Sold (COGS) and Gross Profit Margin

The Cost of Goods Sold (COGS) is the direct cost of manufacturing, which includes direct labor, raw materials, and MOH. The relationship between sales and COGS is summarized by the Gross Profit Margin (GPM).

For the first half of 2025 (1H 2025), Utah Medical Products, Inc. reported a Gross Profit Margin of 56.6%. This compares to 59.9% in 1H 2024. This contraction was partly due to an unfavorable product mix in the Ireland operations and higher raw material costs.

Operating Expenses

Operating Expenses (OE) are comprised of General and Administrative (G&A), Sales and Marketing (S&M), and Research and Development (R&D). The overall impact of these expenses on Operating Income (OI) is often moderated by the level of fixed costs within them.

General and Administrative (G&A) Expenses

G&A expenses are a major component of total OE, largely driven by non-cash amortization of Identifiable Intangible Assets (IIA) and U.S. litigation costs. You saw a positive trend in litigation expense reduction in 2025.

• Litigation costs included in G&A were $791 thousand lower in 1H 2025 compared to 1H 2024.
• For the first nine months of 2025 (9M 2025), G&A expenses were $289 thousand lower than in 9M 2024, primarily due to $825 thousand lower litigation expenses in the U.S.

Sales and Marketing (S&M) Expenses

S&M expenses, as a percentage of sales, showed an increase in the first half of 2025, reflecting higher underlying costs despite lower sales volume.

• S&M expenses represented 5.2% of sales in 1H 2025.
• This was an increase from 4.4% of sales in 1H 2024.
• The higher percentage was due to increased salaries, consulting fees, trade show expenses, and lower recovered freight costs reimbursed by customers.

Research and Development (R&D) Expenses

R&D spending is a controlled component of OE, with fluctuations often tied to specific certification projects.

• R&D expenses for the first quarter of 2025 (1Q 2025) totaled $155 thousand.
• This represented 1.6% of 1Q 2025 sales.
• The 1Q 2025 figure was significantly lower than 1Q 2024's R&D expense of $266 thousand, which included one-time testing and certification costs for biopharma sensor manufacturing.

Finance: draft 13-week cash view by Friday.

Utah Medical Products, Inc. (UTMD) - Canvas Business Model: Revenue Streams

You're looking at the top-line drivers for Utah Medical Products, Inc. (UTMD) as of late 2025. The business model relies on a mix of direct sales, distribution agreements, and OEM arrangements, though the mix is clearly shifting away from the latter.

The Total 1H 2025 Net Sales came in at $19.663 million, which was a 9.6% decrease from the first half of 2024.

Here's a look at the key components making up how Utah Medical Products, Inc. (UTMD) brings in revenue:

• Direct sales of proprietary medical devices to end-users.
• Domestic Filshie Clip System distribution sales.
• OEM sales of components and sub-assemblies (declining in 2025).
• International sales (OUS) through subsidiaries and distributors.

The pressure from the OEM segment is notable. Honestly, when a major customer like PendoTECH drives the majority of the decline, you have to watch that segment closely.

Here's the quick math on some of the key reported segments for the first half of 2025, with figures in thousands of U.S. Dollars:

The direct sales channels are showing some resilience. For instance, direct domestic sales of other devices grew by 11% in 1H 2025 compared to 1H 2024. Similarly, the domestic Filshie Clip System sales saw a 3% increase year-over-year for the first half.

The OEM revenue stream is definitely shrinking. Sales to PendoTECH, which was previously the largest OEM customer, dropped by 87.1% in 1H 2025 compared to 1H 2024, accounting for 86% of the total 1H sales decline. By the nine-month mark of 2025, domestic OEM sales overall were down 46.3%.

International sales (OUS) faced headwinds. OUS direct sales through subsidiaries in Ireland, the UK, Australia, and Canada were down by 15.5% in 1H 2025 versus 1H 2024.

To be defintely clear on the domestic mix for the first nine months of 2025:

• Direct other device sales represented 69% of total domestic sales.
• Direct Filshie device sales represented 19% of total domestic sales.
• Domestic OEM sales represented 11% of total domestic sales.

Finance: draft 13-week cash view by Friday.