Avanos Medical(AVNS) - 2025 Q2 - Quarterly Results

Executive Summary Avanos Medical, Inc. reported Q2 2025 financial results, with strong SNS performance and progress in PM&R, despite a significant net loss due to goodwill impairment, while maintaining 2025 guidance Introduction and CEO Commentary Avanos Medical, Inc. reported its second quarter 2025 financial results, with CEO David Pacitti highlighting strong performance in the Specialty Nutrition Systems (SNS) segment and continued progress in the Pain Management & Recovery (PM&R) segment, expressing confidence in achieving the company's 2025 financial guidance - CEO David Pacitti noted strong Q2 performance, driven by healthy results in Specialty Nutrition Systems and progress in Pain Management & Recovery, expressing confidence in achieving 2025 financial guidance[3] Second Quarter 2025 Financial Highlights The second quarter of 2025 saw a modest 1.9% increase in net sales to $175.0 million, but reported a significant net loss of $76.8 million, primarily due to a goodwill impairment charge. Adjusted net income and adjusted diluted EPS both decreased by 50% year-over-year Second Quarter 2025 Key Financial Highlights | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | | Total Net Sales | $175.0 | $171.7 | +1.9% | | Net Loss (Income) | $(76.8) | $4.3 (Income) | N.M. | | Adjusted Net Income | $7.9 | $15.8 | -50.0% | | Diluted Loss (Earnings) Per Share | $(1.66) | $0.09 (Earnings) | N.M. | | Adjusted Diluted Earnings Per Share | $0.17 | $0.34 | -50.0% | | Adjusted EBITDA | $17.0 | $26.8 | -36.6% | Operating Results Overview This section details Avanos Medical's financial performance for Q2 and the first six months of 2025, highlighting net sales growth, gross margin decline, and significant operating losses due to a goodwill impairment charge Second Quarter 2025 Performance Net sales for Q2 2025 increased by 1.9% to $175.0 million, driven by strong demand in Specialty Nutrition Systems and radiofrequency ablation (RFA) generator sales. However, gross margin declined to 52.6% (adjusted 55.7%) due to higher tariffs and lower HA product pricing. The company reported an operating loss of $74.5 million, primarily due to a $77.0 million goodwill impairment charge Q2 2025 Operating Results Summary | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | | Net Sales | $175.0 | $171.7 | +1.9% | | Gross Margin | 52.6% | 55.7% | -3.1 pp | | Adjusted Gross Margin | 55.7% | 59.6% | -3.9 pp | | Selling & General Expenses (% of Net Sales) | 47.7% | 47.1% | +0.6 pp | | Adjusted SG&A (% of Net Sales) | 45.2% | 43.0% | +2.2 pp | | Operating Income (Loss) | $(74.5) | $6.3 (Profit) | N.M. | | Adjusted Operating Profit | $12.2 | $21.8 | -44.0% | - Gross profit margin decreased primarily due to the effects of higher tariffs and lower pricing for hyaluronic acid (HA) products[6] - Operating loss was primarily due to a $77.0 million goodwill impairment charge[8] First Six Months of 2025 Performance For the first six months of 2025, net sales increased by 1.4% to $342.5 million, driven by volume growth in the SNS portfolio and RFA solutions. Gross margin declined to 53.1% (adjusted 56.2%) due to tariffs and HA product pricing. The company reported an operating loss of $64.2 million, including the $77.0 million goodwill impairment charge, leading to a net loss of $70.2 million First Six Months 2025 Operating Results Summary | Metric | 6 Months 2025 (Millions USD) | 6 Months 2024 (Millions USD) | Change (%) | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------- | | Net Sales | $342.5 | $337.8 | +1.4% | | Gross Margin | 53.1% | 56.4% | -3.3 pp | | Adjusted Gross Margin | 56.2% | 59.7% | -3.5 pp | | Selling & General Expenses (% of Net Sales) | 46.5% | 48.7% | -2.2 pp | | Adjusted SG&A (% of Net Sales) | 44.3% | 44.3% | 0.0 pp | | Operating Income (Loss) | $(64.2) | $10.3 (Profit) | N.M. | | Adjusted Operating Income | $29.3 | $38.1 | -23.1% | | Net Loss (Income) | $(70.2) | $4.8 (Income) | N.M. | | Adjusted Net Income | $19.9 | $25.9 | -23.2% | | Adjusted EBITDA | $38.6 | $48.4 | -20.2% | - Operating loss for the six months ended June 30, 2025, was $64.2 million, following a $77.0 million impairment charge to goodwill[11] Segment Performance This section analyzes the performance of Avanos Medical's Specialty Nutrition Systems (SNS) and Pain Management & Recovery (PM&R) segments for Q2 and the first six months of 2025, detailing sales growth and key drivers Second Quarter 2025 Segment Results The Specialty Nutrition Systems (SNS) segment delivered above-market results with a 5.1% increase in net sales, driven by strong volume growth. The Pain Management & Recovery (PM&R) segment also saw net sales growth, primarily from a 13.7% increase in RFA products, which offset a decline in surgical pain and recovery sales Q2 2025 Segment Net Sales and Operating Income | Segment | Q2 2025 Net Sales (Millions USD) | Q2 2024 Net Sales (Millions USD) | Change (%) | Volume Growth (%) | Operating Income (Millions USD) | | :-------------------------------- | :------------------------------- | :------------------------------- | :--------- | :---------------- | :------------------------------ | | Specialty Nutrition Systems (SNS) | $102.7 | $97.7 | +5.1% | +4.4% | $18.0 | | Pain Management & Recovery (PM&R) | $61.0 | $59.3 | +2.9% | N/A | $1.8 | | - RFA Products | $35.8 | $31.5 | +13.7% | N/A | N/A | | - Surgical Pain & Recovery | $25.2 | $27.8 | -9.4% | N/A | N/A | - PM&R segment's volume growth was partially offset by the strategic decision not to pursue certain revenue streams[14] First Six Months of 2025 Segment Results For the first six months of 2025, the SNS segment continued its strong performance with a 6.0% increase in net sales and 6.5% volume growth. The PM&R segment's net sales grew by 1.4%, driven by an 11.0% increase in RFA products, which helped to offset a 9.3% decline in surgical pain and recovery sales First Six Months 2025 Segment Net Sales and Operating Income | Segment | 6 Months 2025 Net Sales (Millions USD) | 6 Months 2024 Net Sales (Millions USD) | Change (%) | Volume Growth (%) | Operating Income (Loss) (Millions USD) | | :-------------------------------- | :----------------------------------- | :----------------------------------- | :--------- | :---------------- | :------------------------------------- | | Specialty Nutrition Systems (SNS) | $203.8 | $192.3 | +6.0% | +6.5% | $39.1 | | Pain Management & Recovery (PM&R) | $117.2 | $115.6 | +1.4% | N/A | $2.0 | | - RFA Products | $67.5 | $60.8 | +11.0% | N/A | N/A | | - Surgical Pain & Recovery | $49.7 | $54.8 | -9.3% | N/A | N/A | - PM&R segment's volume growth was partially offset by the strategic decision not to pursue certain revenue streams[16] Strategic Developments and Financial Position This section covers key strategic actions, including a significant goodwill impairment, changes in cash flow and debt, the divestiture of the HA product line, and the company's updated financial outlook for 2025 Non-Cash Goodwill Impairment During the second quarter, Avanos Medical recorded a non-cash goodwill impairment charge of $77.0 million within the Pain Management & Recovery (PM&R) segment, attributed to downward pressure on the company's market capitalization - A $77.0 million goodwill impairment charge was recorded in the PM&R segment due to downward pressure on market capitalization[17] Cash Flow and Balance Sheet Summary Cash on hand decreased to $90.3 million as of June 30, 2025, from $107.7 million at year-end 2024. Cash flow from operations for the six months improved to $32.5 million, while free cash flow for the same period was an inflow of $14.8 million. Total debt outstanding, net of unamortized discounts, decreased to $105.1 million Cash and Debt Overview | Metric | June 30, 2025 (Millions USD) | Dec 31, 2024 (Millions USD) | Change (Millions USD) | | :-------------------------- | :--------------------------- | :-------------------------- | :-------------------- | | Cash on Hand | $90.3 | $107.7 | $(17.4) | | Total Debt Outstanding (net) | $105.1 | $134.7 | $(29.6) | Cash Flow Summary | Metric | 6 Months 2025 (Millions USD) | 6 Months 2024 (Millions USD) | Change (Millions USD) | | :-------------------------- | :--------------------------- | :--------------------------- | :-------------------- | | Cash Flow from Operations | $32.5 | $19.8 | +$12.7 | | Free Cash Flow | $14.8 | $9.8 | +$5.0 | | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change (Millions USD) | | :-------------------------- | :--------------------- | :--------------------- | :-------------------- | | Free Cash Flow | $(4.2) | $21.9 | $(26.1) | Sale of HA Product Line Avanos Medical announced the divestiture of its Hyaluronic Acid (HA) product line to Channel-Markers Medical, LLC on July 31, 2025. This transaction is part of the company's ongoing transformation, focusing on advancing its strategic segments in Pain Management & Recovery (PM&R) and Specialty Nutrition Systems (SNS) - Divestiture of the HA product line to Channel-Markers Medical, LLC was announced on July 31, 2025, aligning with the strategic focus on PM&R and SNS segments[19] 2025 Financial Outlook Avanos Medical maintained its 2025 estimated revenue guidance of $665 million to $685 million and adjusted diluted earnings per share (EPS) guidance of $0.75 to $0.95, which includes the impact of the HA divestiture. The outlook assumes successful mitigation of tariff impacts through various management plans 2025 Estimated Financial Outlook | Metric | 2025 Estimated Range | | :-------------------------------- | :------------------- | | Estimated Revenue | $665 million to $685 million | | Estimated Adjusted Diluted EPS | $0.75 to $0.95 | - The guidance on adjusted diluted earnings per share assumes management's mitigation plans will moderate the impact of tariffs through cost containment, pricing actions, supply chain adjustments, and reliance on existing international agreements[21] Non-GAAP Financial Measures This section explains the definition, purpose, and limitations of Avanos Medical's non-GAAP financial measures, along with a list of specific measures and the adjustments made to derive them Definition, Purpose, and Limitations Avanos Medical provides non-GAAP financial measures as supplemental information, used by management and the board to evaluate performance, allocate resources, and measure operational performance, including for incentive compensation goals. The company acknowledges these measures have limitations and should not be considered in isolation from GAAP results - Non-GAAP financial measures are provided as supplemental information, used by management and the board to evaluate historical and prospective financial performance, allocate resources, and measure operational performance[23] - The compensation committee uses certain non-GAAP financial measures when setting and assessing achievement of incentive compensation goals[24] - Non-GAAP measures are supplemental and should not be considered in isolation or as an alternative to GAAP financial statement data, as they have limitations as analytical tools[25] List of Measures and Adjustments The non-GAAP financial measures include adjusted gross and operating income, adjusted net income, adjusted diluted EPS, adjusted EBITDA, and free cash flow. These measures exclude specific items such as acquisition and integration charges, restructuring and transformation activities, EU MDR compliance expenses, amortization of intangible assets, impairments of intangibles or goodwill, tax effects of adjusting items, and currency exchange rate changes - The non-GAAP financial measures include: Adjusted gross and operating income, Adjusted income before taxes, Adjusted effective tax rate, Adjusted net income, Adjusted diluted earnings per share, Adjusted selling, general and administrative expenses, Adjusted EBITDA, and Free cash flow[26] - These non-GAAP measures exclude items such as: acquisition and integration charges; restructuring and transformation activities; EU Medical Device Regulation (MDR) compliance expenses; amortization of intangible assets; impairments of intangibles or goodwill; tax effects of certain adjusting items; and the effects of changes in currency exchange rates[26] Corporate Information This section provides details on Avanos Medical's conference call, an overview of the company, and a disclaimer regarding forward-looking statements and associated risks Conference Call Details Avanos Medical hosted a conference call and webcast on August 5, 2025, at 9 a.m. ET to discuss the results, with replay information provided for those unable to attend live - A conference call and webcast were hosted on August 5, 2025, at 9 a.m. ET, with replay details available for one week[28] About Avanos Medical, Inc. Avanos Medical (NYSE: AVNS) is a medical technology company headquartered in Alpharetta, Georgia, focused on delivering clinically superior solutions for patient nutrition (from hospital to home) and opioid-sparing pain management. The company develops, manufactures, and markets recognized brands globally, holding leading market positions in various categories - Avanos Medical is a medical technology company focused on delivering clinically superior solutions for patient nutrition and reducing opioid use in pain management[29] - The company develops, manufactures, and markets recognized brands globally, holding leading market positions in multiple categories[29] Forward-Looking Statements Disclaimer This section serves as a cautionary statement, indicating that the press release contains forward-looking statements subject to various risks and uncertainties. These factors, including economic conditions, pricing pressures, supply chain disruptions, and regulatory actions, could cause actual results to differ materially from those expressed or implied - Forward-looking statements are based on current plans and expectations and are subject to various risks and uncertainties that could cause actual results to differ materially[30] - Key risk factors include: weakening economic conditions, pricing pressures, supply chain disruptions, regional conflicts, ability to execute transformation initiatives, inflationary pressures, impact of tariffs, financial conditions affecting the banking system, changes in foreign exchange markets, legislative and regulatory actions, product liability claims, and changes in the competitive environment[30] Detailed Financial Statements and Reconciliations This section presents comprehensive unaudited condensed consolidated financial statements, including income statements, balance sheets, cash flow statements, segment data, and detailed reconciliations of GAAP to non-GAAP measures Condensed Consolidated Income Statements This table provides a detailed breakdown of Avanos Medical's unaudited condensed consolidated income statements for the second quarter and first six months of 2025 and 2024 Condensed Consolidated Income Statements (Unaudited) | Metric (Millions USD, except per share) | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :-------------------------------------- | :------ | :------ | :------------ | :------------ | | Net Sales | $175.0 | $171.7 | $342.5 | $337.8 | | Cost of products sold | $82.9 | $76.1 | $160.6 | $147.4 | | Gross Profit | $92.1 | $95.6 | $181.9 | $190.4 | | Research and development expenses | $5.8 | $6.3 | $11.2 | $13.3 | | Selling and general expenses | $83.5 | $80.9 | $159.2 | $164.5 | | Goodwill impairment | $77.0 | $— | $77.0 | $— | | Operating Income (Loss) | $(74.5) | $6.3 | $(64.2) | $10.3 | | Income (Loss) Before Income Taxes | $(75.9) | $6.2 | $(66.2) | $7.7 | | Income (Loss) from Continuing Operations | $(76.8) | $4.3 | $(70.2) | $4.8 | | Net Income (Loss) | $(76.8) | $1.8 | $(70.2) | $0.9 | | Diluted Earnings (Loss) Per Share | $(1.66) | $0.04 | $(1.52) | $0.02 | Discontinued Operations Summary This table summarizes the financial results from discontinued operations for the second quarter and first six months of 2025 and 2024 Discontinued Operations Summary (Unaudited) | Metric (Millions USD, except per share) | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :-------------------------------------- | :------ | :------ | :------------ | :------------ | | Net Sales | $— | $13.6 | $— | $30.5 | | Cost of products sold | $— | $15.6 | $— | $31.5 | | Gross Profit | $— | $(2.0) | $— | $(1.0) | | Loss from discontinued operations before income taxes | $— | $(3.4) | $— | $(5.3) | | Income tax benefit from discontinued operations | $— | $0.9 | $— | $1.4 | | Loss from discontinued operations, net of tax | $— | $(2.5) | $— | $(3.9) | | Diluted Loss Per Share | $— | $(0.05) | $— | $(0.08) | Non-GAAP Reconciliations This section provides detailed reconciliations of various non-GAAP financial measures to their most directly comparable GAAP financial measures for the three and six months ended June 30, 2025, and 2024 Gross Profit Reconciliation This table reconciles reported GAAP gross profit and gross profit margin to adjusted non-GAAP figures for Q2 and the first six months of 2025 Gross Profit Reconciliation (Unaudited) | Metric (Millions USD) | Q2 2025 (As Reported) | Q2 2025 (As Adjusted) | 6 Months 2025 (As Reported) | 6 Months 2025 (As Adjusted) | | :-------------------- | :-------------------- | :-------------------- | :-------------------------- | :-------------------------- | | Gross Profit | $92.1 | $97.4 | $181.9 | $192.4 | | Gross profit margin, as reported | 52.6 % | N/A | 53.1 % | N/A | | Gross profit margin, as adjusted | N/A | 55.7 % | N/A | 56.2 % | Operating Income (Loss) Reconciliation This table reconciles reported GAAP operating income (loss) to adjusted non-GAAP operating income for Q2 and the first six months of 2025 Operating Income (Loss) Reconciliation (Unaudited) | Metric (Millions USD) | Q2 2025 (As Reported) | Q2 2025 (As Adjusted) | 6 Months 2025 (As Reported) | 6 Months 2025 (As Adjusted) | | :-------------------- | :-------------------- | :-------------------- | :-------------------------- | :-------------------------- | | Operating Income (Loss) | $(74.5) | $12.2 | $(64.2) | $29.3 | Income (Loss) Before Taxes Reconciliation This table reconciles reported GAAP income (loss) before taxes to adjusted non-GAAP income before taxes for Q2 and the first six months of 2025 Income (Loss) Before Taxes Reconciliation (Unaudited) | Metric (Millions USD) | Q2 2025 (As Reported) | Q2 2025 (As Adjusted) | 6 Months 2025 (As Reported) | 6 Months 2025 (As Adjusted) | | :-------------------- | :-------------------- | :-------------------- | :-------------------------- | :-------------------------- | | Income (Loss) Before Taxes | $(75.9) | $10.8 | $(66.2) | $27.3 | Tax (Provision) Benefit Reconciliation This table reconciles reported GAAP tax (provision) benefit and effective tax rate to adjusted non-GAAP figures for Q2 and the first six months of 2025 Tax (Provision) Benefit Reconciliation (Unaudited) | Metric | Q2 2025 (As Reported) | Q2 2025 (As Adjusted) | 6 Months 2025 (As Reported) | 6 Months 2025 (As Adjusted) | | :-------------------- | :-------------------- | :-------------------- | :-------------------------- | :-------------------------- | | Tax (Provision) Benefit | $(0.9) | $(2.9) | $(4.0) | $(7.4) | | Effective tax rate, as reported | (1.2)% | N/A | (6.0)% | N/A | | Effective tax rate, as adjusted | N/A | 26.9 % | N/A | 27.1 % | Net Income (Loss) and Diluted EPS Reconciliation This table reconciles reported GAAP net income (loss) and diluted EPS to adjusted non-GAAP figures for Q2 and the first six months of 2025 Net Income (Loss) and Diluted EPS Reconciliation (Unaudited) | Metric (Millions USD, except per share) | Q2 2025 (As Reported) | Q2 2025 (As Adjusted) | 6 Months 2025 (As Reported) | 6 Months 2025 (As Adjusted) | | :-------------------------------------- | :-------------------- | :-------------------- | :-------------------------- | :-------------------------- | | Net Income (Loss) | $(76.8) | $7.9 | $(70.2) | $19.9 | | Diluted earnings (loss) per share, as reported | $(1.66) | N/A | $(1.52) | N/A | | Diluted earnings (loss) per share, as adjusted | N/A | $0.17 | N/A | $0.43 | Selling, General and Administrative Expenses Reconciliation This table reconciles reported GAAP selling, general and administrative expenses to adjusted non-GAAP figures for Q2 and the first six months of 2025 Selling, General and Administrative Expenses Reconciliation (Unaudited) | Metric (Millions USD) | Q2 2025 (As Reported) | Q2 2025 (As Adjusted) | 6 Months 2025 (As Reported) | 6 Months 2025 (As Adjusted) | | :-------------------- | :-------------------- | :-------------------- | :-------------------------- | :-------------------------- | | As reported | $83.5 | N/A | $159.2 | N/A | | As adjusted non-GAAP | N/A | $79.1 | N/A | $151.8 | | SG&A as a percentage of revenue, as reported | 47.7 % | N/A | 46.5 % | N/A | | SG&A as a percentage of revenue, as adjusted | N/A | 45.2 % | N/A | 44.3 % | EBITDA Reconciliation This table reconciles reported GAAP EBITDA to adjusted non-GAAP EBITDA for Q2 and the first six months of 2025 EBITDA Reconciliation (Unaudited) | Metric (Millions USD) | Q2 2025 (EBITDA) | Q2 2025 (Adjusted EBITDA) | 6 Months 2025 (EBITDA) | 6 Months 2025 (Adjusted EBITDA) | | :-------------------- | :--------------- | :------------------------ | :--------------------- | :------------------------------ | | EBITDA | $(64.5) | N/A | $(44.6) | N/A | | Adjusted EBITDA | N/A | $17.0 | N/A | $38.6 | Free Cash Flow Reconciliation This table reconciles cash provided by operating activities to free cash flow for Q2 and the first six months of 2025 and 2024 Free Cash Flow Reconciliation (Unaudited) | Metric (Millions USD) | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :-------------------- | :------ | :------ | :------------ | :------------ | | Cash provided by operating activities | $6.8 | $27.8 | $32.5 | $19.8 | | Capital expenditures | $(11.0) | $(5.9) | $(17.7) | $(10.0) | | Free Cash Flow | $(4.2) | $21.9 | $14.8 | $9.8 | 2025 Outlook Reconciliation Table This table provides a reconciliation of the 2025 estimated GAAP diluted earnings per share to the non-GAAP adjusted diluted earnings per share outlook 2025 Outlook: GAAP to Non-GAAP Diluted EPS Reconciliation | Metric | Estimated Range | | :-------------------------------- | :------------------- | | Diluted earnings per share (GAAP) | $0.33 to $0.56 | | Intangibles amortization | $0.25 to $0.24 | | Post RH-Divestiture restructuring charges | $0.12 to $0.10 | | Other | $0.05 to $0.05 | | Adjusted diluted earnings per share (non-GAAP) | $0.75 to $0.95 | Condensed Consolidated Balance Sheets This table presents the unaudited condensed consolidated balance sheets as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets (Unaudited) | Metric (Millions USD) | June 30, 2025 | December 31, 2024 | Change (Millions USD) | | :-------------------------- | :------------ | :---------------- | :-------------------- | | Cash and cash equivalents | $90.3 | $107.7 | $(17.4) | | Accounts receivable, net | $110.2 | $132.8 | $(22.6) | | Inventories | $142.7 | $138.8 | +$3.9 | | Total Current Assets | $356.0 | $393.4 | $(37.4) | | Property, Plant and Equipment, net | $114.3 | $110.7 | +$3.6 | | Goodwill | $381.2 | $455.6 | $(74.4) | | Other Intangible Assets, net | $105.4 | $112.3 | $(6.9) | | TOTAL ASSETS | $1,039.0 | $1,154.2 | $(115.2) | | Current portion of long-term debt | $9.4 | $9.4 | $0.0 | | Trade accounts payable | $48.8 | $54.3 | $(5.5) | | Accrued expenses | $66.0 | $91.3 | $(25.3) | | Total Current Liabilities | $134.6 | $165.9 | $(31.3) | | Long-Term Debt | $95.7 | $125.3 | $(29.6) | | TOTAL LIABILITIES | $262.7 | $325.7 | $(63.0) | | Stockholders' Equity | $776.3 | $828.5 | $(52.2) | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $1,039.0 | $1,154.2 | $(115.2) | Condensed Consolidated Cash Flow Statements This table outlines the unaudited condensed consolidated cash flow statements for the second quarter and first six months of 2025 and 2024, detailing operating, investing, and financing activities Condensed Consolidated Cash Flow Statements (Unaudited) | Cash Flow Activity (Millions USD) | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :-------------------------------- | :------ | :------ | :------------ | :------------ | | Net income (loss) | $(76.8) | $1.8 | $(70.2) | $0.9 | | Depreciation and amortization | $10.0 | $11.3 | $19.6 | $22.7 | | Goodwill impairment | $77.0 | $— | $77.0 | $— | | Cash Provided by (Used in) Operating Activities | $6.8 | $27.8 | $32.5 | $19.8 | | Capital expenditures | $(11.0) | $(5.9) | $(17.7) | $(10.0) | | Cash Used in Investing Activities | $(13.2) | $(5.9) | $(22.3) | $(7.9) | | Secured debt repayments | $(2.4) | $(1.5) | $(4.7) | $(3.1) | | Revolving credit facility repayments | $— | $— | $(25.0) | $(10.0) | | Purchases of treasury stock | $(0.8) | $(3.5) | $(3.0) | $(12.6) | | Cash Used in Financing Activities | $(3.2) | $(5.0) | $(32.3) | $(5.7) | | Decrease (Increase) in Cash and Cash Equivalents | $(6.7) | $16.4 | $(17.4) | $4.5 | | Cash and Cash Equivalents - End of Period | $90.3 | $92.2 | $90.3 | $92.2 | Selected Business Segment Data This section provides unaudited selected business segment data, including net sales and operating income (loss) for Specialty Nutrition Systems (SNS) and Pain Management & Recovery (PM&R) for Q2 and the first six months of 2025 and 2024 Selected Business Segment Net Sales (Unaudited) | Segment (Millions USD) | Q2 2025 Net Sales | Q2 2024 Net Sales | Q2 Change (%) | 6 Months 2025 Net Sales | 6 Months 2024 Net Sales | 6 Months Change (%) | | :-------------------------------- | :------------------ | :------------------ | :------------ | :---------------------- | :---------------------- | :------------------ | | Specialty Nutrition Systems (SNS) | $102.7 | $97.7 | 5.1% | $203.8 | $192.3 | 6.0% | | Pain Management & Recovery (PM&R) | $61.0 | $59.3 | 2.9% | $117.2 | $115.6 | 1.4% | | - Surgical pain and recovery | $25.2 | $27.8 | (9.4)% | $49.7 | $54.8 | (9.3)% | | - Radiofrequency Ablation | $35.8 | $31.5 | 13.7% | $67.5 | $60.8 | 11.0% | | Corporate and Other | $11.3 | $14.7 | (23.1)% | $21.5 | $29.9 | (28.1)% | | Total Net Sales | $175.0 | $171.7 | 1.9% | $342.5 | $337.8 | 1.4% | Selected Business Segment Operating Income (Loss) (Unaudited) | Segment (Millions USD) | Q2 2025 Operating Income (Loss) | Q2 2024 Operating Income (Loss) | Q2 Change (%) | 6 Months 2025 Operating Income (Loss) | 6 Months 2024 Operating Income (Loss) | 6 Months Change (%) | | :-------------------------------- | :------------------------------ | :------------------------------ | :------------ | :------------------------------------ | :------------------------------------ | :------------------ | | Specialty Nutrition Systems (SNS) | $18.0 | $21.8 | (17.4)% | $39.1 | $37.2 | 5.1% | | Pain Management & Recovery (PM&R) | $1.8 | $0.1 | N.M. | $2.0 | $(2.0) | (200.0)% | | Corporate and Other | $(94.3) | $(15.6) | 504.5% | $(105.3) | $(24.9) | 322.9% | | Total Operating Income (Loss) | $(74.5) | $6.3 | N.M. | $(64.2) | $10.3 | N.M. | - Corporate and Other operating loss includes a $77.0 million goodwill impairment associated with the PM&R segment[59] - The 'Other' category in net sales percentage change includes the effects of withdrawal from certain revenue streams that did not meet return criteria[60]