Integra LifeSciences(IART) - 2025 Q1 - Quarterly Results

Financial Performance - Total reported revenues for Q1 2025 were $382.7 million, an increase of 3.7% on a reported basis but a decline of 3.5% on an organic basis compared to the prior year[4] - GAAP gross margin was 50.8%, down from 56.1% in Q1 2024; adjusted gross margin was 62.2%, compared to 64.4% in the prior year[5] - Adjusted EBITDA for Q1 2025 was $63.6 million, or 16.6% of revenue, down from $71.8 million, or 19.5% of revenue, in the prior year[5] - The company reported a GAAP net loss of $(25.3) million, or $(0.33) per diluted share, compared to a net loss of $(3.3) million, or $(0.04) per diluted share, in the prior year[6] - Total revenues for Q1 2025 increased by 3.7% to $382,653,000 compared to $368,872,000 in Q1 2024[27] - Net loss for Q1 2025 was $25,293,000, compared to a net loss of $3,281,000 in Q1 2024, resulting in a diluted net loss per share of $(0.33) versus $(0.04) in the prior year[27][33] - Adjusted EBITDA for Q1 2025 was $63,609,000, down from $71,837,000 in Q1 2024[32] - Total organic revenues decreased by 3.5% to $355,798,000, excluding the impact of acquisitions and currency changes[28] - Adjusted net income for Q1 2025 was $31,654,000, with adjusted diluted net income per share at $0.41, down from $42,950,000 and $0.55 in Q1 2024[33] - Total costs and expenses increased to $398,150,000 in Q1 2025 from $364,908,000 in Q1 2024, primarily driven by higher cost of goods sold[27] Future Guidance - For Q2 2025, the company expects reported revenues in the range of $390 million to $400 million, representing a decline of (6.8)% to (4.4)%[11] - The full-year 2025 revenue guidance is reaffirmed at $1.650 billion to $1.715 billion, indicating reported growth of 2.4% to 6.5%[12] Cash Flow and Debt - Cash flow from operations was $(11.3) million in the quarter, with total balance sheet debt at $1.85 billion and net debt at $1.58 billion[9] - Total liquidity at the end of the quarter was approximately $1.16 billion, including $273 million in cash and short-term investments[10] - Cash and cash equivalents as of March 31, 2025, were $239,104,000, down from $246,375,000 at the end of 2024[35] - Free cash flow for Q1 2025 was $(40,177,000), compared to $291,000 in Q1 2024, indicating a significant decline in cash generation[38] - Net debt as of March 31, 2025, was $1,574,431,000, compared to $1,535,001,000 at the end of 2024, reflecting an increase in leverage[40] Segment Performance - Segment performance showed Codman Specialty Surgical revenues at $280.7 million, a reported growth of 9.4%, while Tissue Technologies revenues were $102.0 million, a decline of 9.3%[8] - Neurosurgery segment revenues decreased by 5.6% to $190,912,000, while ENT revenues surged by 296.2% to $38,802,000[28] Operational Initiatives - The company is advancing its Compliance Master Plan and investing in supply reliability, with new leadership appointments to enhance operational execution[3]