Enovis(ENOV) - 2025 Q2 - Quarterly Results

Enovis Q2 2025 Earnings Release Second Quarter 2025 Performance Summary 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] Full Year 2025 Financial Outlook 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 Consolidated financial statements detail Enovis's performance and position across operations, balance sheet, and cash flows Statements of Operations 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 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 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 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 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] Disclosures and Company Information 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][8] - The press release contains forward-looking statements concerning plans, outlook, and expectations, subject to risks and uncertainties[11] - 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][17]