ICU Medical(ICUI) - 2025 Q3 - Quarterly Results

Financial Performance - Third quarter 2025 revenue was $537.0 million, a decrease of 8.8% from $589.1 million in the same period last year[3] - GAAP gross profit for Q3 2025 was $200.9 million, with a gross margin of 37%, compared to $204.9 million and 35% in Q3 2024[3] - GAAP net loss for Q3 2025 was $(3.4) million, or $(0.14) per diluted share, significantly improved from a net loss of $(33.0) million, or $(1.35) per diluted share, in Q3 2024[3] - Adjusted EBITDA for Q3 2025 was $105.9 million, up from $94.8 million in Q3 2024[3] - Total revenues for the three months ended September 30, 2025, were reported at $536.99 million[37] - Gross profit for the same period was $200.88 million, representing 37% of total revenues[37] - The company reported a net loss of $3.40 million, with a diluted loss per share of $0.14[37] - Adjusted net income was $50.25 million, with an adjusted diluted earnings per share of $2.03[37] - The company recorded a net loss of $(32.98) million for Q3 2024, with a diluted loss per share of $(1.35)[39] Revenue Breakdown - Revenue from the Consumables product line for Q3 2025 was $285.1 million, an increase of 7.6% from $264.9 million in Q3 2024[5] - Infusion Systems revenue for Q3 2025 was $173.9 million, up 8.8% from $159.8 million in Q3 2024[5] - Vital Care revenue for Q3 2025 was $78.0 million, a decrease of 47.5% from $164.5 million in Q3 2024, impacted by the disposal of the IV Solutions business[5] Guidance and Projections - The company updated its fiscal year 2025 guidance for GAAP net loss to a range of $(8) million to $0 million, improving from a previous range of $(43) million to $(35) million[7] - Adjusted EBITDA guidance for FY 2025 was raised to a range of $395 million to $405 million, up from $380 million to $390 million[7] - The company expects a GAAP net loss in FY 2025 to be between $(8) million and $0, with total non-GAAP adjustments projected at $403 million to $405 million[44] - Adjusted EBITDA for FY 2025 is forecasted to be between $395 million and $405 million[44] - The company anticipates an adjusted earnings per share of $7.35 to $7.65 for FY 2025[44] Cash Flow and Assets - Net cash provided by operating activities for the nine months ended September 30, 2025, was $119,248,000, down from $163,841,000 in 2024, reflecting a decrease of approximately 27%[17] - The cash and cash equivalents at the end of the period were $299,732,000 for September 30, 2025, down from $312,512,000 in 2024, showing a decrease of about 4%[17] - The company reported net cash provided by investing activities of $140,620,000 for the nine months ended September 30, 2025, compared to a net cash used of $62,414,000 in 2024, showing a substantial improvement[17] - Total current assets decreased to $1,207.3 million as of September 30, 2025, from $1,441.9 million at the end of 2024[13] Expenses and Adjustments - Research and development expenses amounted to $21.25 million, accounting for 4% of total revenues[37] - The company incurred $13.14 million in restructuring and strategic transaction expenses[37] - Quality system and product-related remediation costs were $13.80 million, contributing to a net loss impact[37] - The company incurred stock compensation expenses of $15,243,000 for the three months ended September 30, 2025, compared to $11,770,000 in 2024, reflecting a rise of about 29%[36] - The restructuring, strategic transaction, and integration costs for Q3 2024 amounted to $16.8 million, impacting net income significantly[39] - Stock compensation expense for Q3 2024 was $1.8 million, contributing to the overall financial adjustments[39] Debt and Financial Position - Principal repayments of long-term debt increased significantly to $272,750,000 in 2025 from $38,250,000 in 2024, indicating a strategic focus on debt reduction[17] Tax and Valuation - The company recorded a tax expense of $1.39 million related to valuation allowance against certain deferred tax assets[37] - The tax expense from valuation allowance was $22.4 million, affecting the non-GAAP annual effective tax rate calculation[39] - The non-GAAP annual effective tax rate was adjusted based on a three-year cumulative U.S. income position[37] Other Financial Metrics - The total non-GAAP adjustments for the three months ended September 30, 2025, amounted to $109,307,000, compared to $127,821,000 in 2024, indicating a decrease of approximately 14.5%[36] - The effect of exchange rate changes on cash resulted in an increase of $8,338,000 for the nine months ended September 30, 2025, compared to $4,472,000 in 2024, reflecting favorable currency movements[17]