Core Viewpoint - Enovis has completed the divestiture of its foot care brand Dr. Comfort, marking a strategic shift to focus on its core business segments of "Prevention & Recovery" and "Reconstructive" [2][4]. Transaction Structure and Use of Funds - The total transaction amount for Dr. Comfort is up to $60 million, including a $45 million upfront payment and up to $15 million in milestone payments based on future performance [3]. - Proceeds from the sale will be used to accelerate debt reduction, improve profit margins by divesting low-margin businesses, and reinvest in high-growth segments [3]. Strategic Focus - Enovis is transitioning from a diversified industrial and medical device company to a focused medical technology firm, emphasizing technology differentiation and product optimization [4]. - The divested Dr. Comfort business was part of the Prevention & Recovery segment but did not align with the current focus on orthopedic rehabilitation [5]. Characteristics of Dr. Comfort - Dr. Comfort specializes in foot care products for diabetic patients and those with foot diseases, offering therapeutic footwear and accessories [7]. - Despite its brand recognition, Dr. Comfort's growth potential and profit structure are limited, especially compared to Enovis's focus on innovative medical solutions [7]. Core Retention - Enovis retains its "Prevention & Recovery" segment, which aligns more closely with modern orthopedic and rehabilitation practices, focusing on preoperative prevention and postoperative recovery [8][11]. - This segment emphasizes collaboration with healthcare professionals and has a higher contribution to overall business synergy and profitability compared to Dr. Comfort [11]. Growth Engine - Enovis is accelerating its "Reconstructive" business, which includes a recent acquisition of LimaCorporate, enhancing its capabilities in custom implants and 3D-printed products [13]. - The revenue from the reconstructive segment has reached approximately $1 billion, positioning it as a strategic investment priority for the company [13]. Summary of Strategic Decisions - The divestiture of Dr. Comfort, despite a lower transaction value compared to its acquisition price, signals Enovis's commitment to building a synergistic network between its prevention and reconstruction business lines [14].

Core Insights - Enovis Corporation has sold its Dr. Comfort diabetic shoe business to Promus Equity Partners for up to $60 million, which includes an upfront payment of $45 million and potential future payments of up to $15 million based on performance milestones [1][2]. Group 1: Transaction Details - The sale is seen as a positive outcome for Enovis, allowing the company to sharpen its focus on core strengths in Prevention & Recovery [2]. - The divestiture is part of a strategy to streamline the portfolio, enhance profitability, and accelerate debt reduction [2]. - Enovis plans to provide further strategic commentary on the transaction during its third quarter results call on November 6 [2]. Group 2: Company and Market Position - Enovis is described as an innovation-driven medical technology growth company dedicated to developing solutions that improve patient outcomes [4]. - The company emphasizes a culture of continuous improvement and innovation, with a focus on orthopedics and related fields [4]. - Promus Equity Partners, which manages approximately $2.7 billion, aims to support Dr. Comfort's growth and enhance its service to clinicians and patients [3].

Summary of Enovis Corporation Conference Call Company Overview - Enovis Corporation operates in the $4 billion prevention and recovery markets and is a growing player in the $40 billion global orthopedic implant market [1][2] - The company has built a strong portfolio across the orthopedics space, focusing on mobility and organic growth [2][3] Core Business Insights - Enovis has a recon business that is growing above market with strong gross margins, complemented by a prevention and recovery business that generates significant cash flow [2][3] - The company aims to enhance its balance sheet and focus on organic growth while integrating acquisitions made over the past four years [3][4] Strategic Focus Areas - The company emphasizes commercial execution and innovation pipeline as key areas for growth [3] - Financial discipline is a priority, with a focus on increasing free cash flow and reducing debt to enable future M&A opportunities [4] Market Trends and Demand - The macro trends of longevity, gut health, brain health, and mobility are seen as significant drivers for the company's growth [5] - Demand for hip and knee procedures remains strong, with the company performing well despite macroeconomic uncertainties [10][11] Product Development and Technology - The ARVIS® Augmented Reality System is viewed as a critical enabling technology for orthopedics, with plans for significant upgrades [17][18] - The company is exploring flexible pricing models for ARVIS® to drive market penetration [20] Financial Performance and Projections - The company anticipates continued improvements in cash flow generation, particularly in 2026, due to reduced regulatory spending and improved working capital efficiency [34][35] - CapEx is currently elevated due to integration efforts but is expected to normalize over the next few years [32][33] R&D and Innovation - Enovis aims to increase its R&D spending, currently at about 5-6% of revenue, to enhance innovation without sacrificing EBITDA [24][25] - The company views its M&A activities as a form of R&D, particularly in expanding its foot and ankle portfolio [26][28] Tariff and Pricing Trends - The company has seen improvements in its tariff situation, which is expected to positively impact financial performance in 2025 [44][45] - Pricing trends in the recon business are slightly down on a like-for-like basis, but new innovations are expected to stabilize overall pricing [53] Long-term Business Strategy - Enovis believes in the importance of maintaining a connection between its prevention and recovery and recon businesses to support patient care throughout their mobility journey [61] Conclusion - Enovis Corporation is positioned for growth through strategic focus on innovation, financial discipline, and leveraging its strong portfolio in the orthopedic market, while navigating macroeconomic challenges and enhancing operational efficiencies [5][34][61]

Core Viewpoint - Enovis Corporation will present at the Baird 2025 Global Healthcare Conference on September 10, 2025, at 2:35 p.m. ET, with a live audio webcast available on its website [1]. Company Overview - Enovis Corporation is an innovation-driven medical technology growth company focused on developing clinically differentiated solutions that improve patient outcomes and transform workflows [2]. - The company emphasizes a culture of continuous improvement and innovation, offering a wide range of products and services that support active lifestyles, particularly in orthopedics [2]. - Enovis's common stock is listed on the New York Stock Exchange under the symbol ENOV [2].

Financial Data and Key Metrics Changes - The company reported high single-digit growth in the first half of the year and generated cash in the second quarter, indicating progress towards set goals [20][21] - EBITDA margins are targeted to exceed 20% for sustainable positioning as a med tech company, with current margins at 17% to 18% [16][19] Business Line Data and Key Metrics Changes - The company aims for high single-digit growth in the recon segment and stable low single-digit growth in the PNR segment, with potential for double-digit growth in recon in 2025 [22][28] - New product launches, including the ARG system and MANIFUSE, are expected to drive growth in both recon and PNR segments [27][24] Market Data and Key Metrics Changes - Market trends show a stable environment with a pickup in the U.S. and a slight slowdown in Europe due to seasonal factors, but overall conditions are expected to stabilize [21] - The company has seen a shift in international sales from 22% to over 50% in the recon segment following the Lima acquisition [50] Company Strategy and Development Direction - The company is focusing on organic growth, operational excellence, and capital allocation, with a priority on debt reduction and free cash flow improvement [6][8][42] - The management emphasizes a robust product pipeline and innovation, aiming for a mix of singles and doubles rather than home runs [11][75] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic uncertainties as a wildcard affecting growth, particularly in Europe and Asia [33][28] - The company expects to be free cash flow positive in 2025, with a clear path to achieving 70% to 80% free cash conversion by 2026 [29][30] Other Important Information - The company plans to mitigate tariff impacts by shifting sourcing from China and increasing prices on the PNR side [37][39] - The ARVIS platform launch has been delayed by six months, but it is expected to enhance growth in the recon segment once fully operational [48][63] Q&A Session Summary Question: What are the business trends in July and August? - The company experienced high single-digit growth in the first half and anticipates stable market conditions for the third quarter [20][21] Question: Is there a pathway to double-digit recon growth in 2025? - The company believes it can achieve double-digit growth in recon, depending on new product launches and market conditions [22][23] Question: What are the key metrics for driving shareholder value? - The focus will be on meeting growth commitments, expanding EBITDA, and improving free cash flow [19] Question: What are the trends in the PNR market? - The PNR segment has shown resilience with stable growth of 3% to 4%, contributing significantly to cash generation [67] Question: What is the company's approach to capital allocation? - The immediate focus is on debt reduction, with M&A activities being deprioritized for the time being [42][46] Question: How will ARVIS contribute to revenue? - ARVIS is expected to start contributing meaningfully to revenues within a year, with initial contributions already noted [63] Question: What are the expectations for growth in 2026? - The company anticipates stable growth in recon and PNR, with potential headwinds from macroeconomic factors [31][33]

Core Viewpoint - Enovis (ENOV) has shown a significant price increase of 12.4% over the past four weeks, with a mean price target of $52.4 indicating a potential upside of 77.3% from its current price of $29.55 [1] Price Targets and Analyst Estimates - The mean estimate consists of 10 short-term price targets with a standard deviation of $11.51, suggesting variability in analyst predictions. The lowest estimate is $33.00 (11.7% increase), while the highest is $75.00 (153.8% increase) [2] - A low standard deviation among price targets indicates strong agreement among analysts regarding the stock's price movement direction, which can serve as a starting point for further research [9] Earnings Estimates and Analyst Sentiment - Analysts have shown increasing optimism about ENOV's earnings prospects, as evidenced by a positive trend in earnings estimate revisions. This correlation between earnings revisions and stock price movements supports the expectation of potential upside [11] - Over the last 30 days, three earnings estimates for the current year have been revised higher, leading to a 2.9% increase in the Zacks Consensus Estimate [12] Zacks Rank and Investment Potential - ENOV holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating a strong potential for upside in the near term [13] - While the consensus price target may not be entirely reliable, the implied direction of price movement appears to be a useful guide for investors [14]

Financial Data and Key Metrics Changes - The company reported second quarter sales of $565 million, up 7% year-over-year and 5% on an organic basis, with approximately 200 basis points of positive currency tailwinds offset by a similar headwind from selling days [21][22][25] - Adjusted gross margins improved by 90 basis points in the quarter and 200 basis points year-to-date, driven by favorable segment and product mix [22] - Adjusted EBITDA margins were flat at 17.2% year-over-year, with year-to-date adjusted EBITDA margins expanding by 75 basis points [23][24] - Adjusted earnings per share increased by 27% year-over-year to $0.79, with first half adjusted EPS growing 42% [23][24] Business Line Data and Key Metrics Changes - The recon business saw organic growth of 8%, with U.S. extremities growing by 10% driven by strong double-digit growth in shoulders [14][21] - The P and R segment experienced stable growth of 3% in the quarter, with adjusted EBITDA margins improving by 130 basis points year-over-year [19][22] - U.S. hip and knee growth was flat, reflecting fewer selling days and headwinds in capital sales, but underlying implant growth was mid-single digit [16][22] Market Data and Key Metrics Changes - U.S. extremities growth was driven by the launch of the augmented reverse glenoid system, while international growth benefited from recent geographical expansion [15][17] - The company continues to take share in resilient international markets, with competitive share gains in hip and shoulder portfolios [17][18] Company Strategy and Development Direction - The company aims to focus on three key priorities: commercial execution and innovation, operational excellence, and financial discipline [10][12] - There is a commitment to maximizing organic growth, margin expansion, and cash flow generation through disciplined capital allocation [7][10] - The company plans to leverage its diverse portfolio and capitalize on cross-selling opportunities to drive growth [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the evolving market environment and maintain progress towards strategic goals [28] - The company anticipates acceleration in growth in the second half of the year, particularly with new product launches [16][22] - Management highlighted the importance of relationships with key opinion leaders and the commitment to medical education as critical to maintaining market leadership [82] Other Important Information - The company raised its revenue guidance for 2025 to a range of $2.245 billion to $2.275 billion, driven by improved currency outlook and organic growth execution [25][26] - The adjusted EBITDA range was also raised to $392 million to $400 million, reflecting an updated view on tariffs [26][27] - The company paid $6 million in tariffs in Q2, primarily related to the P and R segment, with expectations for mitigation efforts to accelerate through the year [27][28] Q&A Session Summary Question: What are the assumptions for ARVIS in the back half and other new products driving growth? - Management noted that the Nebula hip and ARG for shoulder are expected to drive growth in the back half, with positive early feedback from the market [32][33] Question: Concerns about adjusted EBITDA metrics and free cash flow normalization? - Management reassured that they maintain high standards of transparency and are confident in their adjusted EBITDA metrics, with expectations for improved free cash flow as integration costs decrease [36][39] Question: Insights on M&A strategy post-Lima and balancing debt paydown with acquisitions? - The focus is on debt reduction as the primary capital allocation priority, with potential for opportunistic share buybacks or focused M&A in the future [47] Question: Updates on the ARVIS shoulder launch and its importance? - The ARVIS launch has received tremendous feedback, and the next-gen updates are expected to enhance market share gains in the shoulder portfolio [74] Question: Competitive dynamics in the shoulder market and maintaining market leadership? - Management emphasized the importance of relationships, commercial execution, and new product releases to maintain and grow market share [81][85]

Financial Performance - Enovis reported a net sales increase to $565 million in Q2 2025, compared to $525 million in Q2 2024[20] - Adjusted Earnings Per Share (EPS) increased by 27% in Q2 2025[8] - The adjusted gross profit margin improved from 59.6% in Q2 2024 to 60.5% in Q2 2025[20] - Adjusted EBITDA for Q2 2025 was $97 million, compared to $90 million in Q2 2024, maintaining a margin of 17.2%[20] - For the first half of 2025, net sales reached $1.123 billion, up from $1.041 billion in the first half of 2024[20] - Adjusted EPS for the first half of 2025 was $1.60, compared to $1.13 in the first half of 2024[20] Segment Performance - Reconstructive segment sales grew by 11% year-over-year, with 8% organic growth, reaching $274 million in Q2 2025[10] - Prevention & Recovery (P&R) segment sales grew by 5% year-over-year, with 3% organic growth, reaching $291 million in Q2 2025[15] - Extremities within the Reconstructive segment experienced 10% growth[14] Outlook - Enovis raised its full-year 2025 revenue outlook to $2.245-$2.275 billion[22] - The company anticipates organic growth of approximately 6.25-6.75% year-over-year[25]

Core Insights - Enovis (ENOV) reported quarterly earnings of $0.79 per share, exceeding the Zacks Consensus Estimate of $0.74 per share, and up from $0.62 per share a year ago, representing an earnings surprise of +6.76% [1] - The company achieved revenues of $564.55 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.83% and increasing from $525.16 million year-over-year [2] - Enovis has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise for the previous quarter was +9.46%, with actual earnings of $0.81 per share against an expectation of $0.74 [1] - The current consensus EPS estimate for the upcoming quarter is $0.66, with expected revenues of $535.09 million, and for the current fiscal year, the EPS estimate is $3.04 on revenues of $2.24 billion [7] Stock Performance and Outlook - Enovis shares have declined approximately 41.3% year-to-date, contrasting with the S&P 500's gain of 7.9% [3] - The company's Zacks Rank is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Medical Info Systems industry, to which Enovis belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Enovis Q2 2025 Earnings Release [Second Quarter 2025 Performance Summary](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Summary) Enovis reported strong Q2 2025 with **$565 million net sales** (7% reported, 5% organic) and **$97 million adjusted EBITDA** Q2 2025 Key Financial Metrics | Metric | Value | Growth (YoY, Reported) | Growth (YoY, Organic) | | :--- | :--- | :--- | :--- | | Net Sales | $565 million | 7% | 5% | | Recon Sales | - | 11% | 8% | | P&R Sales | - | 5% | 3% | | Net Loss | $37 million | - | - | | Adjusted EBITDA | $97 million | - | - | | Adjusted EBITDA Margin | 17.2% | - | - | | Net Loss per Share (GAAP) | $0.64 | - | - | | Adjusted EPS (diluted) | $0.79 | - | - | - CEO Damien McDonald expressed confidence in the company's foundation and momentum to drive **durable, profitable growth**, emphasizing operational discipline and scalable execution[5](index=5&type=chunk) [Full Year 2025 Financial Outlook](index=2&type=section&id=Full%20Year%202025%20Financial%20Outlook) Enovis raised FY2025 guidance, projecting higher revenue, adjusted EBITDA, and EPS, reflecting confidence Updated FY 2025 Guidance | Metric | New 2025 Guidance | Prior 2025 Guidance | | :--- | :--- | :--- | | Revenue (in billions) | $2.245 - $2.275 | $2.220 - $2.250 | | Adjusted EBITDA (in millions) | $392 - $402 | $385 - $395 | | Adjusted EPS ($) | $3.05 - $3.20 | $2.95 - $3.10 | [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements detail Enovis's performance and position across operations, balance sheet, and cash flows [Statements of Operations](index=4&type=section&id=Statements%20of%20Operations) Q2 2025 operations show **$564.5 million net sales** and improved gross margin, despite a **$36.5 million net loss** Q2 Statement of Operations Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Sales | $564,545 | $525,160 | | Gross Profit | $334,697 | $288,883 | | Gross Profit Margin | 59.3% | 55.0% | | Operating Loss | $(16,796) | $(44,219) | | Net Loss from Continuing Operations | $(36,455) | $(18,444) | | Net Loss per Share (Continuing Ops) | $(0.64) | $(0.34) | [Balance Sheets](index=9&type=section&id=Balance%20Sheets) As of July 4, 2025, Enovis's total assets grew to **$5.02 billion**, with liabilities rising to **$2.44 billion** Balance Sheet Summary (in thousands) | Account | July 4, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $1,280,351 | $1,146,446 | | Total Assets | $5,021,398 | $4,718,777 | | Total Current Liabilities | $568,184 | $528,998 | | Total Liabilities | $2,440,438 | $2,154,448 | | Total Equity | $2,580,960 | $2,564,329 | [Statements of Cash Flows](index=10&type=section&id=Statements%20of%20Cash%20Flows) H1 2025 operating cash flow was **$46.2 million**, a significant improvement, with **$110.3 million** used in investing Six Months Ended Cash Flow Summary (in thousands) | Activity | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $46,173 | $(28,383) | | Net cash used in investing activities | $(110,320) | $(839,168) | | Net cash provided by financing activities | $57,422 | $867,049 | | **Decrease in Cash and cash equivalents** | **$(4,093)** | **$(1,408)** | [Segment Performance and Sales Analysis](index=11&type=section&id=Segment%20Performance%20and%20Sales%20Analysis) Q2 2025 net sales grew **7.5% to $564.5 million**, with **Reconstructive** up **10.8%** and **5.2% organic growth** Q2 2025 Net Sales Change by Segment (vs Q2 2024) | Segment | Q2 2025 Sales (in millions) | Total Change % | Organic Growth % (Existing Businesses) | Foreign Currency Impact % | | :--- | :--- | :--- | :--- | :--- | | Prevention and Recovery | $290.6 | 4.6% | 2.6% | 1.4% | | Reconstructive | $274.0 | 10.8% | 8.1% | 2.7% | | **Total Enovis** | **$564.5** | **7.5%** | **5.2%** | **2.0%** | [Reconciliation of GAAP to Non-GAAP Measures](index=3&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) GAAP to non-GAAP reconciliation adjusts **net loss** to **adjusted net income** and **operating loss** to **adjusted EBITDA** for clarity Q2 2025 GAAP Net Loss to Adjusted Net Income Reconciliation (in millions) | Description | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net Loss (GAAP)** | **$(36.5)** | **$(18.5)** | | Amortization of acquired intangibles | $43.0 | $40.9 | | Strategic transaction costs | $13.5 | $22.7 | | Purchase of royalty interest | $10.0 | - | | Stock-based compensation | $8.7 | $7.6 | | Other adjustments | $(0.4) | $(33.8) | | Tax adjustment | $(3.2) | $(19.6) | | **Adjusted net income (non-GAAP)** | **$45.7** | **$34.4** | Q2 2025 GAAP Operating Loss to Adjusted EBITDA Reconciliation (in millions) | Description | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Operating loss (GAAP)** | **$(16.8)** | **$(44.1)** | | Depreciation and other amortization | $28.6 | $30.1 | | Amortization of acquired intangibles | $43.0 | $40.9 | | Strategic transaction costs | $13.5 | $22.7 | | Purchase of royalty interest | $10.0 | - | | Stock-based compensation | $8.7 | $7.6 | | Other adjustments | $10.2 | $33.0 | | **Adjusted EBITDA (non-GAAP)** | **$97.2** | **$90.2** | - Adjusted gross profit margin (Non-GAAP) for Q2 2025 was **60.5%**, compared to the GAAP gross profit margin of **59.3%**[27](index=27&type=chunk) [Disclosures and Company Information](index=2&type=section&id=Disclosures%20and%20Company%20Information) This section provides essential investor information: conference call, forward-looking statements, and non-GAAP measure explanations - The company will host an investor conference call and live webcast to discuss the **Q2 2025 results**[2](index=2&type=chunk)[8](index=8&type=chunk) - The press release contains **forward-looking statements** concerning plans, outlook, and expectations, subject to risks and uncertainties[11](index=11&type=chunk) - Enovis explains its use of **non-GAAP financial measures** (e.g., Adjusted EBITDA, Adjusted net income) to provide a clearer view of underlying business trends[13](index=13&type=chunk)[17](index=17&type=chunk)