What Does High-Growth Actually Look Like in MedTech? 

We hear versions of the same question from two different types of clients. 

Private MedTech companies often ask us what revenue growth profile is required to be considered a high-growth MedTech company. Public MedTech companies often find it difficult to assess where they stand relative to their peers, and how investors may be viewing them in that context. For both, the answer has real implications.  

Whether public or private, understanding your company’s position within the broader landscape directly shapes how to communicate your story to investors, set expectations, and approach key moments like financings or investor events. Regardless of growth profile, having a clearly aligned investor relations and communications strategy is essential, and one of the most direct ways to influence the sentiment-based component of how your company is valued by the market.  

Telling your story well starts with knowing where you stand—an answer that is part qualitative, part quantitative, and always fluid.  

This blog will focus on the quantitative part of the answer. To do so, we would like to introduce ICR Healthcare’s (“ICR-HC”) ICR-HC MedTech Universe¹, 149 US-listed MedTech companies that we follow as strategic advisors in the MedTech sector. The majority of these companies have reported fourth quarter and fiscal year 2025 results, and we have a considerable number of stocks with forward revenue estimates through 2028, both of which are key inputs to evaluating expected growth profiles across the sector. 

We will start with a look back at the MedTech sector’s trading performance in 2025 and we will summarize the growth and valuation of the fastest growers in the MedTech sector last year on an absolute and relative basis, as well as how they compared to the sector overall. 

We will also introduce the ICR-HC High-Growth MedTech Group 2026, comprised of the top two deciles of expected revenue compound annual growth rates (CAGRs) from 2025 to 2028. We will follow this group throughout the year to see how they perform versus Street expectations and if and how their forward valuation multiples change throughout the year.  

A note on terminology: throughout this piece, we reference three defined categories. The ICR-HC MedTech Universe represents all 149 US-listed MedTech companies that ICR-HC follows. A MedTech Class is a filtered subset of the Universe (see footnotes for specific criteria). A High-Growth MedTech Group represents the top two deciles of a MedTech Class by expected revenue CAGR. Each is a progressively narrower lens on the sector. 

The ICR-HC MedTech Universe – 2025 Review 

Indexed Performance:  

In calendar year 2025, the ICR-HC MedTech Universe had a share price return of 15.9% and a total return of 17.7% when including reinvested dividends²,³, compared to 11.7% (total return: 13.2%) for the broader healthcare sector (iShares U.S. Healthcare ETF) and 16.4% (total return: 17.9%) for the S&P 500.  

Growth & Valuation Profile: ICR-HC MedTech Class of 2025⁴ 

The ICR-HC MedTech Class of 2025 is a subset of the ICR-HC MedTech Universe, narrowed to 122 US-listed MedTech companies with revenue greater than $1M in 2022, reported revenues each year from 2022 through 2025, and an enterprise value above zero. This excludes pre-commercial companies and those with recently announced M&A transactions. 

It is interesting to note that the metrics for these companies vary significantly. 

Median 2025 revenue was $549 million with a range of $3 million to $94 billion. 

Similarly, while median 2025 revenue growth was 9.4%, growth rates ranged from (~54%) to ~129%. 

The EV / 2025 Revenue valuation multiples also showed wide disparity. The median multiple of the class was 2.6x, with a range of 0.2x to 96.1x. Granted, some of the extreme valuations were related to capital structure challenges or very small revenue numbers. 

Notably, 75 of the companies (61%) had positive Earnings Per Share (EPS) in 2025. This compared to profitable companies representing only 53% of the class in 2022. 

MedTech Class of 2025 – Trailing 3-Year Growth Summary: 

Looking closer at trailing 3-year revenue growth across the MedTech Class of 2025 (Median: 9.7%), the distribution of revenue CAGRs shows that 20%+ revenue growth over a multi-year period is relatively unique (~25% of total). More than half of the class delivered less than 10% revenue CAGR from 2022 to 2025.  

ICR-HC High-Growth MedTech Group 2025⁵ 

As a reminder, the ICR-HC High-Growth MedTech Group 2025 is comprised of the top two deciles of the Class of 2025, ranked by revenue CAGR from 2022 to 2025. There are 25 companies in this group, and to be included, a company had to have a minimum 3-year CAGR of 23.9%. 

The ICR-HC High-Growth MedTech Group 2025 delivered a median revenue CAGR of 31.6%, driven, in part, by a smaller initial base of revenue. Median revenue increased from $46 million in 2022 to $100 million in 2025. 

The ICR-HC High-Growth MedTech Group 2025 trades at 3.1x 2025 revenue, a modest premium to the Class of 2025 at 2.6x.  

There is also clear evidence of a trend toward more High-Growth MedTech companies focused on improving profitability – 44% of the group were EPS positive in 2025, compared to only 13% in 2022.  

Why High-Growth Matters 

Historically, there has been a strong correlation between a company’s organic revenue growth profile and valuation multiples for US-listed MedTech companies. While actual stock returns are driven by fundamental performance versus expectations and sentiment-based changes in valuation multiples, the market is a forward-looking engine and, as such, the companies with the highest expected revenue growth are typically awarded the highest forward valuation multiples.  

For companies at any stage of growth, where they stand in this landscape carries real implications, both for how investors value them and for how they communicate their story to the market. 

ICR-HC MedTech Class of 2026