UFP Technologies Q2 Sales Surge 15% to $174M, Margins Expand, but Cash Flow Tightens
UFPT sits 79% above its 52-week low of $173.86.
Summary
UFP Technologies posted Q2 2026 revenue of $174 million (+15% YoY) and EPS of $2.68, exceeding expectations, but operating cash flow dropped sharply due to a $30.5 million increase in receivables.
Key Events · Earnings and Guidance · UFPT
-
Q2 Revenue +15% to $174M
Net sales rose 15.1% to $174.0 million, driven by growth in Surfaces and Support, Cardiovascular, Infection Control, and Orthopedics sub-markets. Organic growth was 12.4%.
-
Margins Expand, EPS Beats
Gross margin improved to 29.3% from 28.8% a year ago. Diluted EPS of $2.68 compared to $2.21 in Q2 2025, a 21% increase.
-
Operating Cash Flow Halves
Operating cash flow fell to $18.8 million in H1 2026 from $39.1 million in H1 2025, primarily due to a $30.5 million increase in accounts receivable from higher sales volume.
-
Cash Reserves Dwindle
Cash and equivalents dropped to $9.0 million at June 30, 2026, from $20.3 million at year-end 2025. Total debt stands at $117.3 million, with $150 million available under the revolving credit facility.
Analysis · UFPT · Industrial Applications And Services
A strong top-line performance lifted sales 15% to $174 million, fueled by medical device demand. Gross margins widened to 29.3%, and net income climbed 21% to $20.9 million. Yet operating cash flow was cut in half year-over-year to $18.8 million as receivables swelled by $30.5 million, and cash reserves dwindled to $9 million. The company remains heavily reliant on two customers that represent nearly half of sales. Adding operational risk are a previously undisclosed February 2026 cyber incident and persistent labor issues at AJR. The balance sheet carries $117 million in debt, but the $150 million revolver provides a liquidity backstop. In sum, robust demand and margin gains are tempered by deteriorating cash conversion and concentration risk.
How filings like this one have moved
In the 30 days to Sep 18, 2026, 35.6% of the 1155 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.41%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, UFPT was trading at $311.87 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $2.4B. The 52-week trading range was $173.86 to $338.71. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.