Masimo Corporation
- Open
- 179.95
- Day high
- 179.95
- Day low
- 179.95
- Prev close
- 179.95
- Volume
- 0
- Mkt cap
- $9.4B
- P/E (TTM)
- 125.0
- EPS (TTM)
- $1.44
- P/B
- 11.9
- P/S
- 6.0
- Yield
- —
- Per share
- —
Masimo Corporation (MASI) is a Healthcare company listed on NASDAQ. The stock is up 12% over the past year. Drillr has 1 published research article covering MASI.
Masimo Corporation (MASI) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
MASI earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 5, 2026 | $1.41 | $1.10 | -22.0% | $404M | +1.2% |
| Feb 27, 2024 | $0.95 | $1.25 | +31.6% | $549M | +0.6% |
| Feb 28, 2023 | $1.17 | $1.32 | +12.8% | $2.0B | +237.9% |
| May 3, 2022 | $0.87 | $0.93 | +6.9% | $304M | -1.2% |
| Feb 15, 2022 | $1.10 | $1.21 | +10.0% | $328M | +2.2% |
| Jul 27, 2021 | $0.90 | $0.94 | +4.4% | $305M | +3.2% |
| Feb 23, 2021 | $0.81 | $0.98 | +21.0% | $295M | -62.5% |
| Jul 28, 2020 | $0.81 | $0.85 | +4.9% | $301M | +4.9% |
| Apr 28, 2020 | $0.91 | $0.97 | +6.6% | $270M | +6.6% |
| Feb 19, 2020 | $0.87 | $0.91 | +4.6% | $248M | +4.6% |
| Oct 30, 2019 | $0.73 | $0.76 | +4.1% | $229M | +4.1% |
| Jul 31, 2019 | $0.73 | $0.76 | +4.1% | $230M | +4.1% |
MASI insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 5, 2026 | LANE WENDY Edirector | Option | 1,225 | — |
| May 5, 2026 | Scannell Timothy Jdirector | Grant | 1,119 | — |
| May 5, 2026 | LANE WENDY Edirector | Grant | 1,119 | — |
| May 5, 2026 | Scannell Timothy Jdirector | Option | 1,225 | — |
| May 5, 2026 | Hellmann Elisabeth Aofficer: Chief Human Resources Officer | Tax | 121 | $178.43 |
| May 5, 2026 | Hellmann Elisabeth Aofficer: Chief Human Resources Officer | Option | 335 | — |
| May 5, 2026 | Brennan Michelledirector, other: Chairman of the Board | Option | 1,225 | — |
| May 5, 2026 | Brennan Michelledirector, other: Chairman of the Board | Grant | 1,119 | — |
| Mar 16, 2026 | Young Micah Wofficer: EVP & Chief Financial Officer | Tax | 471 | $175.47 |
| Mar 16, 2026 | Szyman Catherine M.director, officer: CEO | Tax | 1,069 | $175.47 |
| Mar 16, 2026 | Young Micah Wofficer: EVP & Chief Financial Officer | Option | 873 | — |
| Mar 16, 2026 | Szyman Catherine M.director, officer: CEO | Option | 2,101 | — |
| Mar 10, 2026 | Szyman Catherine M.director, officer: CEO | Grant | 39,904 | — |
| Mar 10, 2026 | Young Micah Wofficer: EVP & Chief Financial Officer | Grant | 17,671 | — |
| Mar 10, 2026 | Meehan Greg Allenofficer: Chief Commerical Officer | Grant | 8,550 | — |
Source: MASI SEC Form 4 filings, latest May 5, 2026. For informational purposes only — not investment advice.
See the full MASI insider & 13F page →Masimo Corporation company profile
Overview
Masimo Corporation (NASDAQ:MASI) is a medical technology company founded in 1989 and headquartered in Irvine, California. The company went public in 2007 and has established itself as a leader in noninvasive patient monitoring technologies. Masimo is best known for developing Signal Extraction Technology (SET) pulse oximetry, which revolutionized patient monitoring by providing accurate readings even when patients are moving or have poor blood circulation. Over the past few years, the company has undergone significant strategic changes, including a brief diversification into consumer audio products through the acquisition of Sound United, which it later divested to refocus on its core healthcare business under new CEO Katie Szyman who joined in 2024.
Business
Masimo operates primarily in the medical device industry, specifically focusing on noninvasive patient monitoring technologies and hospital automation solutions. The company's core innovation is Signal Extraction Technology (SET) pulse oximetry, which measures blood oxygen saturation levels without requiring invasive procedures like blood draws. Traditional pulse oximeters often provide inaccurate readings when patients move or have poor blood circulation, but Masimo's SET technology overcomes these limitations through advanced signal processing algorithms. The company's product portfolio centers around several key platforms. The Rainbow SET platform extends beyond basic oxygen monitoring to measure multiple blood parameters noninvasively, including hemoglobin concentration, carbon monoxide levels, and methemoglobin. SedLine brain function monitoring technology measures electrical brain activity through EEG signals, helping clinicians monitor patients under anesthesia or sedation. The company also offers capnography and gas monitoring products that measure carbon dioxide levels in exhaled breath, O3 regional oximetry for tissue oxygen measurement, and hemodynamic monitoring solutions that track blood flow and cardiovascular function. Masimo's Hospital Automation platform includes software solutions like Patient SafetyNet for continuous monitoring, Kite for data integration, and UniView for centralized patient data visualization. These systems help hospitals monitor patients remotely and respond quickly to changes in patient condition. The healthcare segment generates approximately 75% of total revenue, with the remaining 25% historically coming from a consumer audio business (Sound United) that was divested in 2024. Within healthcare, consumable products like sensors represent the largest revenue stream, followed by capital equipment sales and service revenues.
Revenue model
Masimo operates on a classic medical device razor-and-blade business model. The company sells monitoring equipment (the "razor") to hospitals and healthcare facilities, then generates recurring revenue from consumable sensors and accessories (the "blades") that must be regularly replaced. Sensors typically need replacement after each patient use or after a certain time period, creating a steady stream of recurring revenue. The company's revenue streams include: 1. Consumable and service revenue (approximately 60-65% of healthcare revenue) from sensors, cables, and maintenance contracts; 2. Capital equipment sales (approximately 35-40% of healthcare revenue) from monitors, boards, and other durable medical equipment; 3. Software and connectivity solutions for hospital automation platforms. Customers are primarily hospitals, emergency medical services, long-term care facilities, and physician offices. The company sells through a direct sales force in major markets and through distributors and original equipment manufacturer partnerships in other regions. Large hospital systems often negotiate multi-year contracts that can be worth tens of millions of dollars. Several factors influence Masimo's profitability margins. Positive margin drivers include the company's strong intellectual property position and brand recognition in pulse oximetry, which allows premium pricing; economies of scale in manufacturing as the installed base grows; the shift toward higher-margin advanced monitoring parameters like Rainbow measurements; and the recurring nature of consumable sales. Negative margin pressures come from hospital consolidation leading to increased pricing pressure; competition from larger medical device companies; manufacturing cost inflation and supply chain disruptions; potential tariff impacts on Mexican manufacturing operations; and the significant R&D investment required to maintain technological leadership. The company has been working to improve margins by transitioning sensor manufacturing to lower-cost facilities in Malaysia and focusing R&D spending on fewer, higher-potential projects rather than spreading resources across numerous initiatives.
Competitive moat
Masimo's competitive moat is moderately strong but faces increasing challenges. The company's primary moat stems from its extensive patent portfolio in pulse oximetry and signal processing, which has historically provided significant protection and even enabled successful litigation against major competitors like Apple. The company's SET technology represents a genuine technological advancement that delivers superior performance compared to traditional pulse oximetry, creating customer loyalty and switching costs. Network effects and switching costs also contribute to the moat. Once hospitals install Masimo's monitoring systems, they become dependent on the company's proprietary sensors and software platforms. Training staff on new systems, integrating with existing hospital IT infrastructure, and the costs of replacing installed equipment create meaningful barriers to switching. The company's growing installed base of over 200 million patients monitored provides data advantages and reinforces customer relationships. However, the moat faces several threats. Competitive pressure is intensifying from well-funded medical device giants like Medtronic, Philips, and GE Healthcare, which have greater resources for R&D and can bundle monitoring solutions with other hospital equipment. The core pulse oximetry technology, while advanced, is becoming more commoditized as competitors develop their own motion-tolerant algorithms. Regulatory and technological disruption poses additional risks. The FDA's increasing focus on digital health could enable new entrants with software-based solutions. Consumer technology companies like Apple have shown interest in health monitoring, potentially disrupting traditional medical device boundaries. Additionally, as healthcare systems increasingly prioritize cost containment, Masimo's premium pricing strategy may become less sustainable. The company's moat is probably best characterized as moderate - strong enough to maintain market leadership in pulse oximetry but not insurmountable against well-resourced competitors or technological disruption.
Risks & safety
Masimo presents moderate financial risk with mixed safety metrics that require careful monitoring. • Liquidity and solvency: Current ratio of 2.17 and quick ratio of 1.61 indicate adequate short-term liquidity. However, debt-to-equity ratio of 0.72 shows meaningful leverage. Cash position of $131 million provides limited cushion relative to $2.3 billion in total assets. • Cash flow concerns: Free cash flow of $27 million in Q1 2025 is positive but represents a significant decline from historical levels. The company's ability to generate consistent operating cash flow has been inconsistent, with some quarters showing strong generation while others are weaker. • Valuation metrics suggest elevated risk: EV/EBITDA of 27.3x appears expensive for a medical device company. Price-to-book ratio of 9.3x indicates the stock trades at a significant premium to tangible book value. These metrics suggest limited margin of safety from a valuation perspective. • Other considerations: Recent losses in FY 2024 (net income of -$305 million) primarily due to Sound United divestiture charges, but underlying healthcare business remains profitable. Tariff exposure of $33-37 million annually represents meaningful cost pressure. New CEO transition adds execution risk during strategic refocusing period.
Recent development
Masimo has undergone significant strategic transformation over the past few years. The company's most notable move was the acquisition and subsequent divestiture of Sound United, a consumer audio business that included premium brands like Bowers & Wilkins and Denon. This diversification attempt, which began around 2022, was ultimately unsuccessful and the company divested the audio business in 2024 to refocus on its core healthcare operations. Under new CEO Katie Szyman, who joined in 2024, Masimo has implemented a comprehensive strategic refocusing initiative. The company has streamlined its R&D portfolio by discontinuing several projects including Opioid Halo for respiratory depression monitoring, Bridge connectivity solutions, and feasibility studies for non-invasive monitoring of cancer, bilirubin, and diabetes. This portfolio rationalization allows concentrated investment in higher-potential opportunities. The company has made significant operational improvements including restructuring its sales force from product-specialized teams to regionally-focused teams, transitioning sensor manufacturing to lower-cost facilities in Malaysia (ahead of schedule), and reducing corporate overhead costs. These initiatives are expected to drive meaningful margin expansion. Product development focus has shifted toward next-generation monitoring platforms with AI-based algorithms, expansion of hemodynamic monitoring capabilities with a planned full launch in 2026, and strengthening the hospital automation platform. The company continues to invest in its core SET pulse oximetry technology while expanding into adjacent monitoring categories. Recent contract wins have been strong, with record new contract value of $432 million in 2024, indicating continued market acceptance despite competitive pressures. The company is also actively pursuing litigation against Apple for patent infringement and trade secret theft, with multiple trials expected over the next few years.
MASI company profile · for informational purposes only — not investment advice.
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