Medistim reported Q4 results yesterday, Friday, and the results clearly exceeded market expectations.
Revenue grew by over 20% and EBIT improved by as much as 64% YoY.
Growth was driven especially by sales in the Americas, where the company had a difficult couple of years. APAC was a small disappointment, but this is likely explained by timing. The equipment delivered is expensive, so the recording of orders across different quarters can cause fluctuations in the results. It is also good to keep in mind that this quarter’s strong result should not be taken as a definite indication that growth will necessarily continue as strongly, but it is a good signal of the company’s performance nonetheless.
Equipment sales were strong in Q4, which caused the share of recurring revenue in total sales to dip. This is a desired development, as equipment sales drive future recurring sales.
During the year, the company launched new software sold as an add-on alongside the equipment. This is intended to increase the margin per device. The company also raised prices to offset costs caused by tariffs.
The company’s return on capital has turned into a strong upward trend, as NOPAT improved by nearly 50% from last year. NOPAT stagnated for a couple of years, but 2025 was a clear leap in earnings. The company calculates ROIC excluding cash and cash equivalents.
It was also pleasing to note that growth occurred in both imaging and flow products. Devices are often sold modularly, where a customer might first buy “flow” and later add a more expensive imaging module.
Another important thing is to monitor how Cardiac/Vascular sells. Medistim is the market leader on the Cardiac side, but Vascular is a large potential market. Therefore, success in Vascular would be very important for future growth.
Overall, a very successful quarter. It would be desirable for the development to continue as strongly, but this naturally requires continuous investment in products and the strengthening of the sales team. The company also announced during the previous quarter that it is opening a direct sales channel in Japan.