Merit Medical Systems (MMSI) Fell Despite Solid Results

Conestoga Capital Advisors, an asset management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter began with a historically poor start but gained momentum later as tariff fears subsided and market volatility dropped precipitously. Conestoga Small Cap Composite returned 4.76% in the quarter compared to 11.97% for the Russell 2000 Growth Index. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.

In its second quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Merit Medical Systems, Inc. (NASDAQ:MMSI). Merit Medical Systems, Inc. (NASDAQ:MMSI) is a single-use medical products manufacturer. The one-month return of Merit Medical Systems, Inc. (NASDAQ:MMSI) was -9.93%, and its shares lost 1.52% of their value over the last 52 weeks. On July 24, 2025, Merit Medical Systems, Inc. (NASDAQ:MMSI) stock closed at $84.22 per share, with a market capitalization of $4.977 billion.

Conestoga Capital Advisors stated the following regarding Merit Medical Systems, Inc. (NASDAQ:MMSI) in its second quarter 2025 investor letter:

“Merit Medical Systems, Inc. (NASDAQ:MMSI): MMSI reported solid 1Q results. Though the company saw strong organic revenue growth and EBITDA growth, they revised EPS guidance down for 2025 primarily due to tariffs in China. 2025 revenue guidance remained unchanged. China accounts for approximately 10% of sales. The company expects to offset about 45% of tariff headwinds through operational efficiencies.”

A surgeon using endoscopy products to perform a medical procedure.

Merit Medical Systems, Inc. (NASDAQ:MMSI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Merit Medical Systems, Inc. (NASDAQ:MMSI) at the end of the first quarter, which was 31 in the previous quarter. In the first quarter of 2025, Merit Medical Systems, Inc. (NASDAQ:MMSI) reported $355.4 million in revenues, up 9.8% year-over-year on a GAAP basis and up 10.9% year-over-year on a constant currency basis. While we acknowledge the risk and potential of Merit Medical Systems, Inc. (NASDAQ:MMSI) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Merit Medical Systems, Inc. (NASDAQ:MMSI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Merit Medical Systems, Inc. (NASDAQ:MMSI) and shared Meridian Small Cap Growth Fund’s views on the company in the previous quarter. Merit Medical Systems, Inc. (NASDAQ:MMSI) contributed to Conestoga Capital Advisors’ performance in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.