Core Insights - Integra LifeSciences reported Q2 2025 revenue of $415.6 million, exceeding the consensus estimate of $395.0 million by 5.2% [1][5] - Adjusted EPS for the quarter was $0.45, slightly above the expected $0.44, but down 28.6% year-over-year from $0.63 [1][2] - The company faced significant challenges, including a $511 million non-cash goodwill impairment and declining margins, leading to negative free cash flow of ($11.2 million) [1][8][9] Financial Performance - Revenue for Q2 2025 was $415.6 million, a decrease of 0.6% from Q2 2024's $418.2 million [2][5] - Adjusted gross margin fell to 60.7%, down from 65.2% year-over-year, reflecting profitability pressures [2][8] - Adjusted EBITDA decreased by 15% to $71.2 million compared to $83.8 million in Q2 2024 [2][8] Segment Performance - The Codman Specialty Surgical division generated $304.0 million in revenue, accounting for about 70% of total sales, with modest organic growth of 0.3% [6] - The Tissue Technologies segment, representing approximately 30% of revenue, saw a decline of 4.1% year-over-year, although Integra Skin rebounded with 20% growth [7] - Instruments revenue dipped 2.8% organically due to order timing issues [6] Operational Challenges - The company experienced negative free cash flow and increased net debt, which rose to $1.59 billion, with leverage at 4.5 times EBITDA [9] - Tariff impacts reduced EPS by $0.04 in the quarter, with projected impacts of $0.22 on adjusted EPS [10] - Ongoing compliance and operational improvements are being prioritized, with a focus on resolving FDA warning letters [11] Strategic Focus and Outlook - Integra aims to drive innovation, expand internationally, and enhance operational performance to compete against larger medical technology firms [4] - Management provided guidance for Q3 2025 revenue between $410–$420 million and full-year revenue forecast of $1.655 billion to $1.680 billion, reflecting a 2.8% to 4.3% increase from the previous year [12] - Organic growth expectations for the full year are now set at 0.6% to 2.1% [12]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents Integra LifeSciences' unaudited condensed consolidated financial statements, including operations, balance sheets, cash flows, and equity changes, with detailed notes [Condensed Consolidated Statements of Operations and Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) | Metric (Dollars in thousands, except per share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue, net | $415,605 | $418,175 | $798,258 | $787,047 | | Total costs and expenses | $928,279 | $421,204 | $1,326,429 | $786,112 | | Operating (loss) income | $(512,674) | $(3,029) | $(528,171) | $935 | | Net loss | $(484,073) | $(12,402) | $(509,366) | $(15,683) | | Net loss per share (Basic and diluted) | $(6.31) | $(0.16) | $(6.65) | $(0.20) | | Comprehensive loss | $(490,874) | $(20,482) | $(512,702) | $(19,303) | - The company reported a significant increase in net loss for both the three and six months ended June 30, 2025, **primarily due to a $511.4 million goodwill impairment charge**[9](index=9&type=chunk)[223](index=223&type=chunk) [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Metric (Dollars in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------------- | :------------ | :---------------- | | Total current assets | $1,142,828 | $1,081,681 | | Total assets | $3,667,905 | $4,037,424 | | Total current liabilities | $929,806 | $922,126 | | Total liabilities | $2,629,244 | $2,492,144 | | Total stockholders' equity | $1,038,661 | $1,545,280 | - Total assets decreased by approximately **$369.5 million** from December 31, 2024, to June 30, 2025, largely influenced by a significant goodwill impairment charge[11](index=11&type=chunk)[59](index=59&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Cash Flow Activity (Dollars in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------- | :----------------------------- | :----------------------------- | | Net cash (used in) provided by operating activities | $(2,338) | $56,157 | | Net cash used in investing activities | $(57,568) | $(376,163) | | Net cash provided by financing activities | $14,238 | $264,928 | | Effect of exchange rate changes on cash and cash equivalents | $17,207 | $(6,088) | | Net decrease increase in cash and cash equivalents | $(28,461) | $(61,166) | | Cash and cash equivalents at end of period | $217,914 | $215,236 | - Operating cash flows shifted from a positive **$56.2 million** in H1 2024 to a negative **$2.3 million** in H1 2025, **primarily due to the impact of quality and operational issues on revenue and associated costs**[266](index=266&type=chunk) - Investing activities used **significantly less cash** in H1 2025 (**$57.6 million**) compared to H1 2024 (**$376.2 million**), **mainly because the prior year included a large business acquisition (Acclarent)**[269](index=269&type=chunk)[270](index=270&type=chunk) [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) | Metric (Dollars in thousands) | Balance, January 1, 2025 | Net Loss | Other Comprehensive (Loss) Income, net of tax | Issuance of Common Stock | Share-Based Compensation | Other Adjustments | Balance, June 30, 2025 | | :---------------------------- | :----------------------- | :------- | :-------------------------------------------- | :----------------------- | :----------------------- | :---------------- | :--------------------- | | Total Equity | $1,545,280 | $(509,366) | $(3,336) | $(1,373) | $7,201 | $279 | $1,038,661 | - Total stockholders' equity decreased from **$1,545.3 million** at January 1, 2025, to **$1,038.7 million** at June 30, 2025, **primarily driven by a net loss of $509.4 million**[16](index=16&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [1. BASIS OF PRESENTATION](index=7&type=section&id=1.%20BASIS%20OF%20PRESENTATION) - The financial statements are unaudited and include all normal recurring adjustments necessary for fair presentation, condensed or omitted certain GAAP disclosures per Form 10-Q instructions[18](index=18&type=chunk) - Management makes significant estimates and assumptions affecting reported amounts, including allowances, inventory valuation, intangible asset valuation, impairment tests, taxes, and contingent liabilities[19](index=19&type=chunk) - The company is evaluating the impact of new FASB ASUs 2023-09 (Income Tax Disclosures) and 2024-03/2025-01 (Expense Disaggregation Disclosures), **effective for fiscal years beginning after December 15, 2024, and 2026 respectively**[20](index=20&type=chunk)[21](index=21&type=chunk) - Cash and cash equivalents decreased from **$246.4 million** at December 31, 2024, to **$217.9 million** at June 30, 2025. Short-term investments increased from **$27.2 million** to **$35.7 million** over the same period[23](index=23&type=chunk)[24](index=24&type=chunk) - The company is monitoring trade relations and tariffs, which are expected to significantly impact future costs of revenue. An amendment to the Senior Credit Facility was made in June 2025 to modify financial covenants through December 31, 2026, to maintain compliance[26](index=26&type=chunk)[27](index=27&type=chunk) [2. ACQUISITIONS AND DIVESTITURES](index=9&type=section&id=2.%20ACQUISITIONS%20AND%20DIVESTITURES) - On October 2, 2024, Integra acquired product rights for Durepair Regeneration Matrix from Medtronic plc for **$45.0 million**, accounted for as an asset acquisition[33](index=33&type=chunk)[34](index=34&type=chunk) - On April 1, 2024, Integra acquired Acclarent, Inc. for approximately **$282.0 million** in cash, enhancing its position in the ENT specialty device market and reporting its results within the Codman Specialty Surgical segment[35](index=35&type=chunk)[36](index=36&type=chunk) Acclarent Acquisition: Fair Values of Assets Acquired and Liabilities Assumed (Dollars in thousands) | Category | Estimated Fair Value | | :------------------------ | :------------------- | | Total current assets | $44,759 | | Property, plant and equipment, net | $7,716 | | Right of use asset - operating leases | $989 | | Intangible assets, net | $222,000 | | Goodwill | $62,482 | | Deferred tax assets | $6,895 | | Total assets acquired | $344,841 | | Total current liabilities | $11,653 | | Lease liability - operating leases | $624 | | Deferred tax liabilities | $54,753 | | Total liabilities assumed | $67,030 | | Net assets acquired | $277,811 | - The estimated fair value of acquired intangible assets for Acclarent was determined using the multi-period, excess earnings method with a discount rate of **12.2%** and a weighted average useful life of **11 years**[39](index=39&type=chunk)[40](index=40&type=chunk) [3. REVENUES FROM CONTRACTS WITH CUSTOMERS](index=11&type=section&

Core Insights - Integra LifeSciences reported revenue of $415.61 million for the quarter ended June 2025, reflecting a year-over-year decline of 0.6% and an EPS of $0.45 compared to $0.63 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $395.64 million by 5.05%, and the EPS also surpassed the consensus estimate of $0.43 by 4.65% [1] Revenue Performance - Organic Revenue Growth was -1.4%, better than the average estimate of -6.3% based on four analysts [4] - Codman Specialty Surgical revenue totaled $303.96 million, exceeding the average estimate of $294.18 million by four analysts, representing a year-over-year change of +0.7% [4] - Tissue Technologies revenue was $111.65 million, compared to the estimated $101.48 million, showing a year-over-year decline of -4.1% [4] - Wound Reconstruction and Care revenue within Tissue Technologies was $84.75 million, surpassing the average estimate of $80.24 million, with a year-over-year change of -3.4% [4] - Private Label revenue in Tissue Technologies was $26.9 million, exceeding the two-analyst average estimate of $25.3 million, reflecting a year-over-year decline of -6.3% [4] Stock Performance - Shares of Integra have returned -8.5% over the past month, contrasting with the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 were $415.6 million, reflecting a decline of approximately 0.6% on a reported basis and 1.4% on an organic basis compared to the prior year [17][18] - Adjusted EPS for the quarter was 45 cents, representing a 29% decline compared to the previous year [18] - Gross margin for the quarter was 60.7%, down 450 basis points year over year, primarily due to higher operational costs associated with remediation efforts [19] - Operating cash flow for the quarter was $9 million, with free cash flow being negative $11.2 million due to continued capital investments [24] Business Line Data and Key Metrics Changes - Specialty Surgical Segment (CSS) reported revenues of $304 million, reflecting growth of 0.7% on a reported basis and a decline of 0.3% on an organic basis [20] - Tissue Technology revenues were $111.6 million, down approximately 4% on both a reported and organic basis compared to the prior year [23] - The ENT business experienced growth below expectations due to reimbursement-driven market pressure, despite double-digit growth in certain product lines [21][62] Market Data and Key Metrics Changes - International performance within CSS declined by low single digits, primarily due to ship holds, which offset strong underlying demand from international markets, including high single-digit growth in China [22] - The company noted a slowdown in private label demand due to competitive pressures, impacting overall market expectations [54] Company Strategy and Development Direction - The company is focused on transforming its quality management system and executing its compliance master plan, which is seen as critical for operational readiness and risk reduction [8][14] - Strategic investments and disciplined cost management are being emphasized to enhance supply chain reliability and drive long-term growth [14][15] - The company is optimistic about the proposed Medicare payment changes favoring evidence-backed, cost-effective wound reconstruction products, positioning it well for future growth [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the leadership positions in neurosurgery and tissue technology, citing sustained demand in attractive markets [14] - The company anticipates a revenue range of $410 million to $420 million for Q3 2025, representing approximately 8% to 10% reported growth [13] - For the full year, the revenue guidance has been updated to a range of $1.655 billion to $1.68 billion, reflecting increased visibility into ship hold and remediation outlook [26][27] Other Important Information - A goodwill impairment charge of approximately $511 million was recorded during the quarter, primarily driven by macroeconomic uncertainties [18] - The company ended the quarter with total liquidity of $1.1 billion, including $254 million in cash and short-term investments [25] Q&A Session Summary Question: Thoughts on CMS' proposed 2026 reimbursement changes - Management indicated that the majority of the business is in the acute care setting, so immediate impacts are not expected, but long-term opportunities are seen as favorable for the wound reconstruction portfolio [35][36] Question: Q3 EPS guidance below street expectations - Management explained that the Q3 guidance is consistent with Q2 performance, with a revenue step-up expected in Q4 driven by seasonal lift and supply recovery [38][39] Question: Impact of ship holds and compliance programs - Management expressed confidence in the progress made and estimated a $100 million impact for the year, with no new material ship holds anticipated [44][45] Question: Ability to win back customers after supply issues - Management noted that once products come off ship holds, they typically see a return to market share, although reintroducing some products may require additional effort [50][51] Question: Revenue growth expectations and guidance adjustments - Management clarified that the updated guidance reflects a more refined view of the full-year impact from ship holds and market demand declines [54] Question: Gross margin softness and future expectations - Management attributed the decline in gross margins to manufacturing variances and operational inefficiencies, projecting a full-year gross margin decline of about 300 basis points [58][59] Question: Expectations for ENT business growth - Management expects mid-single-digit growth for the ENT business moving forward, supported by investments in new products and clinical evidence [63][64]

Financial Performance - Q2 2025 revenue was $415.6 million, a decrease of 0.6% compared to Q2 2024's $418.2 million[37] - Organic revenue decreased by 1.4% to $412.4 million in Q2 2025 compared to $418.2 million in Q2 2024[9, 38] - Adjusted EPS for Q2 2025 was $0.45, a decrease of 28.6% compared to $0.63 in Q2 2024[10, 37] - Adjusted EBITDA margin decreased by 290 bps to 17.1% in Q2 2025 compared to 20.0% in Q2 2024[10, 40] - Adjusted gross margin decreased by 450 bps to 60.7% in Q2 2025 compared to 65.2% in Q2 2024[11, 37] - Operating cash flow was $8.9 million with a negative 32.7% free cash flow conversion in Q2 2025[11, 39] Segment Performance - Codman Specialty Surgical Q2 2025 revenue was $304.0 million, a 0.7% increase, with organic growth down 0.3% to $300.9 million[13] - Tissue Technologies Q2 2025 revenue was $111.6 million, a decrease of 4.1%[18] Guidance - Q3 2025 reported revenue is projected to be between $410 million and $420 million, with organic growth between +7.3% and +9.9%[28] - Full year 2025 reported revenue is projected to be between $1.655 billion and $1.680 billion, with organic growth between +0.6% and +2.1%[29, 30]

Company Performance - Integra LifeSciences reported quarterly earnings of $0.45 per share, exceeding the Zacks Consensus Estimate of $0.43 per share, but down from $0.63 per share a year ago, indicating an earnings surprise of +4.65% [1] - The company posted revenues of $415.61 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.05%, although this represents a decline from year-ago revenues of $418.17 million [2] - Over the last four quarters, Integra has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Performance - Integra shares have declined approximately 45.5% since the beginning of the year, contrasting with the S&P 500's gain of 8.2% [3] - The current Zacks Rank for Integra is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.59 on revenues of $419 million, and for the current fiscal year, it is $2.24 on revenues of $1.67 billion [7] - The outlook for the Medical - Instruments industry, to which Integra belongs, is currently in the bottom 40% of over 250 Zacks industries, which may impact the stock's performance [8]

News Release Integra LifeSciences Reports Second Quarter 2025 Financial Results The Company reported GAAP gross margin of 50.4%, compared to 54.0% in the second quarter of 2024. Adjusted gross margin was 60.7%, compared to 65.2% in the prior year. Adjusted EBITDA for the second quarter of 2025 was $71.2 million, or 17.1% of revenue, compared to $83.8 million, or 20.0% of revenue, in the prior year. The Company reported a GAAP net loss of $(484.1) million, or $(6.31) per diluted share, in the second quarter ...

PRINCETON, N.J., July 31, 2025 (GLOBE NEWSWIRE) -- Integra LifeSciences Holdings Corporation (Nasdaq: IART), a leading global medical technology company, today reported financial results for the second quarter ending June 30, 2025. Second Quarter 2025 Highlights "I am proud of our team's performance and execution in the second quarter. Our strong revenue performance is a testament to our disciplined progress and the solid underlying demand trends for our portfolio of neurosurgery and tissue technology produ ...

Group 1 - Integra LifeSciences Holdings Corporation will release its second quarter 2025 financial results on July 31, 2025, before the market opens [1] - A conference call hosted by Integra's management team will take place at 8:30 a.m. ET on the same day [1] - A live webcast of the conference call will be available on the Investors section of the company's website [2] Group 2 - Integra LifeSciences is focused on restoring patients' lives through innovative treatment pathways and advancing patient outcomes [3] - The company offers a comprehensive portfolio of high-quality, leadership brands in surgical, neurologic, and regenerative care [3] - For more information about Integra and its products, the company encourages visiting its website [3]

Investment Rating - The report maintains a "Buy" rating for Boston Scientific (BSX), Edwards Lifesciences (EW), GE Healthcare (GEHC), Intuitive Surgical (ISRG), and Haemonetics (HAE), while downgrading Tandem Diabetes (TNDM) to "Sell/High Risk" from "Neutral/High Risk" [1][5][20]. Core Insights - The MedTech sector has shown resilience against healthcare headwinds, with a focus on returning to fundamentals and several catalysts expected to drive momentum in the second half of 2025 [1][9]. - The S&P Equipment and Supplies Index has outperformed the broader market, with a year-to-date increase of 7.2%, while relative P/E multiples remain below historical averages [2][12]. - Key upcoming catalysts include product launches and data readouts from various companies, which are anticipated to influence stock performance positively [3][10][11]. Summary by Sections Market Overview - The MedTech industry has largely absorbed tariff impacts, with a weakening USD providing additional support [1][9]. - The S&P 500 is up 6.2% year-to-date, while the S&P Equipment and Supplies Index has increased by 7.2% [2][12]. Company-Specific Insights - Boston Scientific (BSX) is expected to benefit from Farapulse and new product launches, projecting a revenue increase of 80.1% year-over-year in 2Q25 [3][10]. - Edwards Lifesciences (EW) anticipates pivotal data releases and the reopening of TAVR NCD, which could enhance its market position [3][10]. - Intuitive Surgical (ISRG) plans a broad launch of its DV5 system, which is expected to drive stock performance [4][10]. - Haemonetics (HAE) has been upgraded to "Buy" due to improved guidance and revenue growth expectations [5][20]. - Tandem Diabetes (TNDM) faces competitive pressures, leading to its downgrade to "Sell/High Risk" [5][20]. Valuation and Target Prices - Target prices have been adjusted for several companies, with BSX at $125, EW at $95, GEHC at $86, and ISRG at $650 [20][21]. - The report highlights that the relative P/E multiple for the MedTech sector is currently at 1.14x, below historical averages, indicating potential undervaluation [2][12][14].