Introduction & Market Context
Medistim ASA (OB:MEDI) presented its first quarter 2025 financial results on May 9, showcasing exceptional performance across all business segments and regions. The medical technology company, which specializes in blood flow measurement and imaging systems for cardiac and vascular surgery, reported substantial growth compared to the same period last year, continuing its long-term positive trajectory.
The company’s stock closed at 168.5 NOK on May 8, 2025, down 1.17% for the day, but has traded between 130 NOK and 203 NOK over the past 52 weeks.
As shown in the following chart of Medistim’s track record, the company has demonstrated consistent growth in sales, EBIT, and dividends over the years:
Quarterly Performance Highlights
Medistim reported exceptional financial results for Q1 2025, with revenue reaching 181.5 million NOK, representing a 35.7% increase from 133.8 million NOK in Q1 2024. Operating profit (EBIT) surged by 84.5% to 59.2 million NOK, compared to 32.1 million NOK in the same period last year. The EBIT margin expanded significantly to 32.6%, up from 24.0% in Q1 2024, primarily driven by strong sales of the company’s own products.
The following slide illustrates these key financial highlights:
The profit and loss statement further details the company’s strong performance, with gross margin improving to 83.16% in Q1 2025 from 81.33% in Q1 2024. Profit after tax reached 43.4 million NOK, resulting in earnings per share of 2.37 NOK, compared to 1.33 NOK in Q1 2024.
Medistim maintained a robust balance sheet with total assets of 617.3 million NOK as of Q1 2025. The company has no interest-bearing debt, with an equity ratio of 75.6%. The General Assembly approved a dividend of 6 NOK per share, totaling 109.6 million NOK, reflecting management’s confidence in the company’s financial strength and future prospects.
Regional Performance
Medistim experienced growth across all geographic regions, with particularly strong performance in the APAC market.
The Americas region generated sales of 74.1 million NOK, up from 54.7 million NOK in Q1 2024, representing a currency-neutral growth of 28.4%. The growth was primarily driven by the U.S. market, where the company added 12 new customers during the quarter, compared to 8 in Q1 2024. Medistim’s penetration in the U.S. CABG (Coronary Artery Bypass Grafting) procedures market reached 37%, indicating continued growth potential.
The following slide provides detailed insights into Medistim’s performance in the U.S. market:
The APAC region demonstrated the strongest growth, with sales increasing by 65.9% to 27.9 million NOK, representing a currency-neutral growth of 62.6%. This impressive performance was attributed to a recovery in sales to both China and Japan, with China showing particularly strong growth of 72%.
The EMEA region also performed well, with sales increasing by 20.4% to 47.9 million NOK, representing a currency-neutral growth of 18.2%. The company noted continuous strong development in direct markets, with sales through distributors also showing improvement.
Product Category Performance
Medistim’s product portfolio showed strong growth across all categories. The company’s Flow-and-Imaging systems, which represent higher-value products, saw a significant increase in unit sales, with 26 units sold in Q1 2025 compared to 15 units in Q1 2024. This growth was primarily driven by sales in the Americas region, which increased by 9 units.
The company’s imaging probes also performed exceptionally well, with 39 units sold in Q1 2025 compared to 26 units in Q1 2024, representing a 50% increase. This growth was primarily driven by strong capital sales of systems in the Americas region, which increased by 14 units.
When analyzing sales by surgical specialty, cardiac surgery products generated sales of 119.7 million NOK, up 32.2% from Q1 2024, while vascular surgery products showed even stronger growth of 45.1%, reaching 30.3 million NOK. The vascular segment now represents 20% of sales of Medistim’s own products.
The following slide illustrates the sales split between cardiac surgery, vascular surgery, and third-party products:
Particularly noteworthy was the performance of imaging products, which rebounded strongly after a challenging period in 2023 and 2024. Sales of imaging products surged by 85.8% to 49.3 million NOK, while flow products increased by 18.6% to 100.6 million NOK.
Third-party products also performed well, with sales increasing by 41.2% to 31.6 million NOK. The company highlighted that it has a highly diversified product portfolio, with Mentor, Kare, and AMI being the biggest contributors.
Strategic Initiatives
Medistim is implementing a growth strategy focused on converting high-penetrated flow-only CABG markets to flow-and-imaging as the new standard of care, growing adoption in under-penetrated markets, and building its position in vascular surgery.
The company’s growth strategy is illustrated in the following grid:
President and CEO Kari E. Krogstad emphasized that Medistim is at a pivotal moment as it enters 2025, poised for significant growth driven by the launch of the INTUI software platform. The company is focusing on advancing innovation in both the cardiac and vascular segments, with the PATENT study supporting its commitment to advancing peripheral bypass procedures.
To support its growth ambitions, Medistim is strengthening its commercial operations with key appointments, including Mike Karin as Chief Commercial Officer and Tony Winter as Vice President of the Americas sales region. The company is fostering collaboration and sharing best practices across all regions to maximize its commercial potential.
Forward-Looking Statements
Looking ahead, Medistim appears well-positioned for continued growth, with strong momentum across all regions and product categories. The company’s focus on innovation, particularly with the INTUI software platform, and its strengthened commercial operations provide a solid foundation for future expansion.
The recurring revenue component, which represented 67.7% of total revenue in Q1 2025, provides stability to the business model, although this was slightly lower than the 75.0% recorded in Q1 2024, reflecting the strong capital sales during the quarter.
With its strong financial position, innovative product portfolio, and strategic focus on both cardiac and vascular surgery, Medistim is well-equipped to capitalize on growth opportunities in its target markets and deliver value to shareholders.
Full presentation:
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