UFP Technologies, Inc. UFPT
UFPT's largest customer Intuitive Surgical — 96.5% of 2024 organic growth — is quietly insourcing drapes and buying from rival Microtek while insiders dumped $51M in stock.
Thesis
Wolfpack Research is short UFP Technologies (UFPT) because its largest customer, Intuitive Surgical (ISRG, 29% of revenue and 96.5% of 2024 organic growth), is insourcing surgical drape production at facilities in Mexico and a new Bulgarian plant confirmed by Wolfpack's on-site investigator, and has begun buying from UFPT's direct competitor Microtek — whose Dominican Republic factory sits 350 meters from UFPT's own. Import records show UFPT's drape shipment volume fell 38% from Q2 2024 to Q1 2025, and ISRG Q4 2024 sales at UFPT turned negative year-over-year for the first time. Meanwhile UFPT went on a nine-figure acquisition spree, buying AJR Enterprises for $110M — a company with 100% customer concentration in Stryker that has now forced offshoring and pricing concessions. Insiders including CEO Bailly and CFO Lataille sold $51M of stock ahead of disclosures.
SCQA
UFP Technologies is a small-cap medical contract manufacturer whose surgical drape business grew on the back of a single anchor customer, Intuitive Surgical, which accounts for 29% of UFPT sales and drove 96.5% of 2024 organic growth.
ISRG is insourcing drape production in Mexico and a new Bulgarian plant and has resumed buying from rival Microtek 350m from UFPT's DR factory; UFPT shipments fell 38% and ISRG Q4 sales turned negative year-over-year.
Short UFPT: management concealed the ISRG pivot, papered over the decline with four debt-funded acquisitions including AJR (100% Stryker-concentrated with pricing concessions), and insiders dumped $51M of stock.
Shares have traded ~3x higher since the DAS Medical deal that originally secured the ISRG contract; Wolfpack expects UFPT to give back most of those gains as ISRG insources and Microtek captures share.
The three reasons
- 1
ISRG drove 96.5% of 2024 organic growth and is insourcing drapes in Mexico and Bulgaria
- 2
ISRG is now buying drapes from UFPT competitor Microtek 350m from UFPT's own DR factory
- 3
Insiders dumped $51M of stock while hiding the ISRG insourcing pivot from investors
Primary demands
- Short UFPT shares
- Demand management disclose ISRG insourcing plans and AJR-Stryker pricing concessions
- Scrutinize UFPT's bill-and-hold revenue recognition
KPIs cited
Pattern membership
Precedents cited
- Bill-and-hold accounting as historic SEC enforcement target
- Paul Pelosi-style insider timing
Composition what's on the 15 slides
Slide gallery ·
Notes
Wolfpack Research short report on UFPT. Word-doc style prose memo with embedded photos (Bulgaria site visit, Da Vinci drape annotation), Google Maps proximity image of Microtek-vs-DAS factories, quarterly ISRG sales decay table, and 16-row insider-sales table from SecForm4. No named human author — Wolfpack Research institutional byline only. Tone is forensic and adversarial with sarcastic subheads ('Dominican Love Triangle', 'Management Is Dumping, Why Shouldn't We?'). Classic short-seller playbook: customer-concentration thesis + insider-selling + aggressive-accounting flag (bill-and-hold). No explicit price target; no sum-of-parts or peer-multiple analysis.