10-QPeriod: Q1 FY2026

Medline Inc. Quarterly Report for Q1 Ended Mar 28, 2026

Filed May 6, 2026For Securities:MDLN

Summary

Medline Inc. reported solid revenue growth of 10.7% for the quarter ended March 28, 2026, reaching $7.35 billion, driven primarily by increased volumes across its U.S. operations, particularly within the acute care segment. Despite this top-line expansion, net income saw a decline of 25.8% to $239 million, largely due to a significant increase in Cost of Goods Sold (up 14.3%) and Selling, General, and Administrative (SG&A) expenses (up 14.8%). Higher import costs related to tariffs and increased compensation and distribution expenses were key drivers for the rise in operating costs. The company also experienced a substantial decrease in interest expense, down 35.2% to $136 million, following the repayment of significant debt portions using IPO proceeds in the prior year, which positively impacted profitability. The balance sheet remains strong with $2.24 billion in cash and cash equivalents and $946 million in available liquidity under its revolving credit facility. The company continues to manage its financial obligations, with a total indebtedness of $12.76 billion as of the quarter's end.

Financial Highlights

51 data points
Beta

Revenue

$7.35B

25.0% Gross Margin

Net Income

$239.00M

3.3% Net Margin

EPS (Diluted)

$0.16

Total Assets

$39.01B

Cash & Equivalents

$2.24B

Free Cash Flow

$316.00M

Financial Statements
Beta
Revenue$7.35B
Cost of Revenue$5.51B
Gross Profit$1.84B
SG&A Expenses$1.23B
Operating Expenses$1.42B
Operating Income$422.00M
Net Income$239.00M
EPS (Basic)$0.16
EPS (Diluted)$0.16
Shares Outstanding (Basic)819.08M
Shares Outstanding (Diluted)824.84M

Key Highlights

  • 1Net sales increased by 10.7% to $7.35 billion, driven by volume growth, especially in the U.S. acute care segment.
  • 2Net income decreased by 25.8% to $239 million due to higher cost of goods sold and SG&A expenses.
  • 3Cost of Goods Sold increased by 14.3% to $5.51 billion, impacted by higher import costs due to tariffs.
  • 4SG&A expenses rose by 14.8% to $1.23 billion, driven by higher compensation, benefits, and distribution costs.
  • 5Interest expense, net, decreased significantly by 35.2% to $136 million due to prior debt repayments and lower variable rates.
  • 6The company maintained a strong liquidity position with $2.24 billion in cash and cash equivalents and $946 million in revolving credit facility availability.
  • 7Medline Brand segment sales grew 6.2% to $3.47 billion, but Segment Adjusted EBITDA declined 7.8% due to higher costs.
  • 8Supply Chain Solutions segment sales grew 15.0% to $3.89 billion, with Segment Adjusted EBITDA increasing modestly by 2.7%.

Frequently Asked Questions

Medline's net sales increased by 10.7% to $7.35 billion primarily due to organic growth driven by higher volumes, particularly in its U.S. operations and the acute care business segment. Prime Vendor net sales also saw significant growth.

Net income decreased by 25.8% to $239 million primarily because the Cost of Goods Sold (up 14.3%) and Selling, General, and Administrative (SG&A) expenses (up 14.8%) increased at a faster pace than net sales. Higher import costs due to tariffs and increased compensation and distribution expenses were key factors impacting profitability.

Interest expense, net, decreased by 35.2% to $136 million. This reduction is attributed to the repayment of Euro Term and Dollar Term loans using IPO proceeds in the prior year and lower variable interest rates on its remaining debt. Total indebtedness remains significant at $12.76 billion.

The Tax Receivable Agreement liability stood at $4.02 billion as of March 28, 2026, an increase from $3.54 billion at the end of the prior year. This liability reflects future potential payments to pre-IPO owners for tax benefits, and its changes are recognized in the income statement, impacting net income. The TRA liability increased by $479 million during the quarter, largely due to the March 2026 Resale Offering.