Integra LifeSciences(US:IART)2025-10-30 10:15Financial Performance - Total reported revenues for Q3 2025 were $402.1 million, an increase of 5.6% on a reported basis and 5.0% on an organic basis compared to the prior year[4] - Adjusted EBITDA for Q3 2025 was $78.5 million, or 19.5% of revenue, compared to $61.8 million, or 16.2% of revenue, in the prior year[4] - Revenues from Codman Specialty Surgical segment were $292.6 million, representing reported growth of 8.1% and organic growth of 7.1% compared to Q3 2024[7] - Total revenue for the three months ended September 30, 2025, was $402,062,000, representing a 5.6% increase from $380,834,000 in the same period of 2024[26] - Neurosurgery revenue increased by 14.6% to $201,563,000, while total reported revenues from Codman Specialty Surgical rose by 8.1% to $292,583,000[27] - Total revenues for Q3 2025 reached $402.062 million, an increase from $380.834 million in Q3 2024, representing a growth of 5.3%[41] Profitability Metrics - GAAP gross margin for Q3 2025 was 51.5%, down from 52.6% in Q3 2024; adjusted gross margin was 62.9%, compared to 63.0% in the prior year[4] - Adjusted net income for Q3 2025 was $41.6 million, or $0.54 per diluted share, compared to $31.7 million, or $0.41 per diluted share, in the prior year[5] - The company reported a GAAP net loss of $(5.4) million, or $(0.07) per diluted share, improving from a net loss of $(10.7) million, or $(0.14) per diluted share, in the prior year[5] - The net loss for the three months ended September 30, 2025, was $5,404,000, an improvement from a net loss of $10,695,000 in 2024[26] - Adjusted EBITDA for the three months ended September 30, 2025, was $78,453,000, compared to $61,758,000 in 2024, reflecting a significant increase[32] - The company reported an adjusted net income of $41,621,000 for the three months ended September 30, 2025, compared to $31,736,000 in 2024, with adjusted diluted net income per share increasing to $0.54 from $0.41[33] Cash Flow and Debt - The company generated cash flow from operations of $40.9 million in the quarter, with total balance sheet debt of $1.8 billion and net debt of $1.6 billion[8] - Free cash flow for the three months ended September 30, 2025, was $25,751,000, a turnaround from a negative free cash flow of $(7,166,000) in 2024[38] - The company’s cash and cash equivalents as of September 30, 2025, were $232,186,000, down from $246,375,000 at the end of 2024[35] - Net debt as of September 30, 2025, was $1,566,871,000, compared to $1,535,001,000 at the end of 2024, indicating a slight increase in leverage[40] - The company’s adjusted free cash flow conversion rate for the three months ended September 30, 2025, was 61.9%, a significant improvement from (22.6)% in 2024[38] Guidance and Future Expectations - For Q4 2025, the company expects reported revenues in the range of $420 million to $440 million, representing reported growth of (5.1%) to (0.6%) and organic growth of (5.9%) to (1.4%)[11] - The full year 2025 revenue guidance is updated to a range of $1.620 billion to $1.640 billion, with reported growth of 0.6% to 1.8% and organic growth of (1.6%) to (0.4%)[12] Cost and Expense Analysis - Total costs and expenses for the three months ended September 30, 2025, were $390,301,000, slightly up from $388,984,000 in 2024[26] - Structural optimization charges for Q3 2025 totaled $8.413 million, compared to $3.737 million in Q3 2024, showing an increase of 125.4%[41] - Acquisition, divestiture, and integration-related charges were $177 thousand in Q3 2025, down from $3.643 million in Q3 2024[41] - Boston Recall/Braintree Transition costs amounted to $13.447 million in Q3 2025, up from $9.601 million in Q3 2024, representing an increase of 40.5%[41] - Intangible asset amortization expense for Q3 2025 was $23.145 million, compared to $21.854 million in Q3 2024, reflecting an increase of 5.9%[41] - Cost of goods sold for Q3 2025 was $195.071 million, an increase from $180.596 million in Q3 2024, representing a growth of 8.0%[41]