CONMED Q3 Earnings and Revenues Beat Estimates, Margins Contract

Core Insights - CONMED Corporation (CNMD) reported adjusted earnings per share (EPS) of $1.08 for Q3 2025, reflecting a 2.9% year-over-year increase and surpassing the Zacks Consensus Estimate by 2.9% [1] - The company’s revenues reached $337.9 million in Q3 2025, marking a 6.7% year-over-year growth and exceeding the Zacks Consensus Estimate by 0.4% [2][7] - Gross profit decreased by 7.2% year-over-year to $166.1 million, with gross margin contracting by 736 basis points to 49.2% [6][7] Revenue Breakdown - Revenues from Orthopedic Surgery totaled $138.2 million, up 5.9% year-over-year, driven by strong clinical adoption of BioBrace [3] - General Surgery revenues were $199.7 million, reflecting a 7.3% year-over-year increase [4] - Domestic revenues amounted to $194 million, up 5.9% year-over-year, while international revenues reached $143.9 million, up 7.8% [5] Margin Analysis - Operating margin fell significantly by 1723 basis points to 3.5%, with total operating profit dropping 81.9% year-over-year to $11.9 million [8][7] - Selling and administrative expenses surged by 40.7% year-over-year to $140.3 million, while research and development expenses increased by 2.5% to $13.9 million [8] Financial Position - At the end of Q3 2025, CONMED had a cash balance of $38.9 million, up from $33.9 million at the end of Q2 2025, and long-term debt decreased to $853 million from $881.1 million [9] Guidance - For 2025, CONMED narrowed its revenue outlook to a range of $1.365 billion to $1.372 billion, with adjusted EPS projected between $4.48 and $4.53 [10] Market Outlook - Management expressed optimism regarding the performance of its Orthopedics and General Surgery portfolios, particularly products like BioBrace and Buffalo Filter [12] - Despite the positive revenue growth, the contraction in margins raises concerns about future performance [12]