Medline: Is This Newly Public Stock Worth Buying?

TradingKey - Founded in 1966, Medline (MDLN) is today a leading privately held manufacturer and distributor of a vast range of medical supplies for use in hospitals, doctors' offices, and home health care/sexual assault patients. 

Initially focused on manufacturing clothing for medical purposes, Medline has transitioned to having an extensive international offering of more than 335,000 products.

Medline's catalogue includes wound care products, building supplies, adhesives, and reconstructive surgical products, and many others that perform similar functions.

Medline also provides its suppliers with many important tools. From tools to help them understand their supply chain to providing ongoing training for their users.

Mpower, based on MSFT and Medline's AI technology, provides a predictive supply chain management and inventory visibility platform.

Mpower will help large health systems that are multi-site anticipate stockouts and changes in usage patterns through improved forecasting, reduced inventory, and reduced working capital requirements throughout the health care system.

Inside the Medline IPO and Ownership

On December 17, 2025, the Medline initial public offering (IPO) took place, with shares available on the Nasdaq under the MDLN ticker symbol. It was the largest IPO of 2025, raising approximately $6.26 billion.

Before the IPO, Medline was predominantly owned by a private equity firm comprised of Blackstone (BX), Carlyle (CG), and Hellman & Friedman, who had taken the company private in a $34 billion leveraged buyout acquisition in 2021.

After the IPO, these three private equity firms, along with the Mills family, who founded Medline, continue to own meaningful equity positions in the company.

What Does Medline Actually Do?

Medline is set up to provide the best possible service to customers due to a vertically integrated model of blending manufacturing and distribution. 

Medline operates over 25 manufacturing plants in 6 countries, has over 30 kit assembly plants that work with over 50 distribution centres in North America, and 68 distribution centres worldwide with over 28 million square feet of warehouse space in total. 

Additionally, the company's proprietary MedTrans fleet consists of over 2,000 trucks, of which more than 1,600 are located in the U.S., enabling the majority of the customers in the U.S. to receive next-day services and creating a consistent delivery solution for customers.

Mpower, based on MSFT and Medline's AI technology, provides a predictive supply chain management and inventory visibility platform.

Mpower will help large health systems that are multi-site anticipate stockouts and changes in usage patterns through improved forecasting, reduced inventory, and reduced working capital requirements throughout the health care system.

Medline Revenue and Services

Medline's strong customer loyalty (more than 98% retention rate) demonstrates its importance as a primary supplier to various health care systems. 

Medline generates about 50% of its revenue through the sale of its own products online, which includes over 190,000 items. The other half of the revenue generated by Medline comes from its Supply Chain Solutions segment, which purchases and distributes both the company's products and those of other manufacturers. 

Supply Chain Solutions adds logistics and inventory management capabilities to assist hospitals, nursing homes, and other health care providers in maximizing efficiency. 

In addition to providing these products, Medline also offers educational resources, training, and clinical practice solutions that help frontline workers improve the quality of care that patients receive.

Medline Growth and Financials

The sales of Medline have grown strongly, starting from $21.45 billion in 2022, $25.5 Billion for 2024, and, as of June 30th, 2025, generating $13.5 billion of sales (9.7% over last year). 

In 2022, after reporting a small loss of $25 million, Medline achieved profitability in 2023 with net income of $234 million and produced $1.2 billion of income for 2024. For the first half of 2025, net income was $655 million. 

Cash flow from operating activities also grew over this same time period from $187 million in 2022 to $1.77 billion in 2024. The management team will utilize a large amount of the Medline IPO to pay down debt created from the 2021 buyout, resulting in an improved margin and future free cash flows.

Medline Dividend, ETFs, and Stock Split

Medline is a new public company that doesn’t yet pay dividends. Therefore, they probably won't be paying dividends anytime within the next few years.

Since MDL is new to the stock market, it is possible that there are not many exchange-traded funds (ETFs) that will include MDL.

Some ETFs currently contain publicly traded companies like Cardinal Health (CAH), McKesson (MCK), iShares U.S. Medical Devices ETF (IHI), SPDR S&P Healthcare Equipment ETF, SPDR Health Care Select Sector ETF (XLV), and Vanguard Health Care ETF (VHT). Some funds may add MDL to their portfolios depending on their indexes and when they rebalance their portfolios.

Because MDL was just recently listed as a public company, it is unlikely that they will split their stock anytime soon.

Should You Invest in Medline?

The medical equipment manufacturing and supply industry offers an overall stable environment with consistent demand, where Medline has a strong competitive advantage due to its vertically integrated business model, its extensive relationships with customers, and the expanded range of services it offers.

If you’re looking for an increasingly profitable company that is a leader in providing medical devices, MDLN is a company worth looking into. 

If you’re seeking a high-growth potential investment opportunity, this may not be your best option; however, if you are a long-term investor who wants to invest in a stable, developing, and diversifying company that provides excellent long-term opportunities, then you should consider investing in Medline.