Conference Call Logistics Teleflex Incorporated Third Quarter 2025 Earnings Conference Call 11/6/2025 The release, accompanying slides, and replay webcast are available online at www.teleflex.com (click on Investors) An audio replay of the call will be available beginning at 11:00 am Eastern Time on November 6, 2025 either on the Teleflex website or by telephone. The call can be accessed by dialing 1 800 770 2030 (U.S.) or 1 609 800 9909 (all other locations). The confirmation code is 69028. Today's Speaker ...

Core Insights - STRATA Skin Sciences, Inc. has received confirmation from the Centers for Medicare & Medicaid Services (CMS) regarding continued reimbursement for excimer laser treatments, with an expansion of CPT code descriptors expected in 2027 [1][2][7] Group 1: Reimbursement and Regulatory Updates - CMS has affirmed ongoing reimbursement for excimer laser treatments under CPT codes 96920, 96921, and 96922, ensuring uninterrupted patient access [7] - The Final Rule indicates a payment increase of approximately 3.5% for all three codes in calendar year 2026 compared to 2025 [7] - The current CPT code family remains exclusive to excimer laser technology until at least the 2027 descriptor updates, reinforcing STRATA's position against other technologies being billed under these codes [7] Group 2: Future Indications and Clinical Engagement - CMS recognizes the upcoming expansion of excimer laser procedure eligibility to include additional inflammatory and autoimmune conditions, effective January 1, 2027 [7] - STRATA is actively engaging with commercial insurance providers to ensure that individual coverage policies extend the excimer laser exclusivity beyond 2027 [3][4] - The company plans to incorporate extensive clinical and real-world cost data in the 2027 rulemaking process, which will be reviewed alongside recommendations from the American Medical Association (AMA) [2][4] Group 3: Commitment to Patients and Providers - STRATA's XTRAC excimer laser is FDA-cleared and clinically proven for treating various dermatologic conditions, including psoriasis and vitiligo [6] - The company is committed to partnering with clinicians, patient advocates, and payers to ensure the availability of safe and effective treatment options [6] - STRATA supports over 840 partner clinics and aims to expand the adoption of excimer laser procedures across immune-mediated skin diseases [4]

Financial Performance - FY25 revenue reached $21.84 billion, with adjusted FXN growth of 7.7% and organic growth of 2.9%[16,44] - Adjusted diluted EPS for FY25 was $14.40, a 9.6% year-over-year increase[16] - Adjusted operating margin for FY25 was 25.0%, an increase of 80 bps year-over-year[16] - The company returned $2.2 billion to shareholders through share repurchases and dividends[16,48] - Free cash flow for FY25 was $2.67 billion, a 14% decrease compared to FY24's $3.119 billion[47] Segment Performance (Q4 FY25) - BD Medical segment revenue was $3.155 billion, with a 9.9% FXN increase[34] - BD Life Sciences segment revenue was $1.368 billion, with a 0.3% FXN increase[36] - BD Interventional segment revenue was $1.367 billion, with a 7.5% FXN increase[39] FY26 Guidance - The company expects low single-digit revenue growth (FXN) for FY26, including a ~90 bps FX tailwind[53] - Adjusted diluted EPS for FY26 is projected to be between $14.75 and $15.05, a 2.4% to 4.5% increase[53]

Core Insights - Smith & Nephew reported Q3 results that align with expectations, supporting full-year guidance for revenue growth and trading margin [2] - Underlying revenue growth for the quarter was 5%, driven by momentum in Sports Medicine and Advanced Wound Management [3] - Orthopaedics growth showed trends similar to the previous quarter, with strong performance in Hips in the U.S. offsetting softer Knee sales [3] Revenue Performance - The strongest Q3 for core Replacements was recorded globally, with significant growth in Trauma and Extremities [3] - Excluding China, underlying revenue growth was 6.4%, indicating a balanced growth across geographies as headwinds in China begin to ease [4]

Core Insights - LENSAR, Inc. reported a total revenue of $14.3 million for Q3 2025, marking a 6% increase from $13.5 million in Q3 2024, primarily driven by an 11% increase in worldwide procedure volume [3][4] - The installed base of ALLY Robotic Cataract Laser Systems grew by 77% year-over-year, with 185 systems installed as of September 30, 2025 [3][4] - The company is in the process of being acquired by Alcon, with expectations for the transaction to close in Q1 2026 [2][3] Financial Performance - Total revenue for Q3 2025 was $14.3 million, up from $13.5 million in Q3 2024, driven by increased procedure volume [3][4] - Recurring revenue accounted for 75% of total revenue in Q3 2025, compared to 73% in Q3 2024 [4] - The net loss for Q3 2025 was $3.7 million, or ($0.31) per share, compared to a net loss of $1.5 million, or ($0.13) per share, in Q3 2024 [6][18] Operational Highlights - The company placed 18 ALLY Systems in Q3 2025, contributing to a total installed base of approximately 425 laser systems, a 20% increase from the previous year [3][4] - Selling, general, and administrative expenses rose to $12.0 million in Q3 2025, up from $6.1 million in Q3 2024, largely due to acquisition-related costs [5][18] - Research and development expenses increased by 14% to $1.4 million in Q3 2025 compared to $1.2 million in Q3 2024 [5][18] Cash Position - As of September 30, 2025, the company had cash, cash equivalents, and investments totaling $16.9 million, down from $22.5 million at the end of 2024 [8][20] - The cash balance decreased by approximately $3.4 million during Q3 2025 [8]

Core Insights - Apyx Medical Corporation reported a 19% increase in Surgical Aesthetics revenue for Q3 2025, driven by the successful commercialization of the AYON Body Contouring System [3][9] - The company anticipates further growth in sales following the pending FDA clearance for the AYON's label expansion to include power liposuction [4][7] - Total revenue for Q3 2025 reached $12.9 million, a 12.1% increase compared to $11.5 million in the same period last year [7][9] Financial Performance - Surgical Aesthetics revenue for Q3 2025 was $11.1 million, up from $9.3 million in Q3 2024, reflecting a 19% increase [9][10] - OEM revenue decreased by 18% to approximately $1.8 million in Q3 2025 compared to $2.2 million in Q3 2024 [7][9] - Gross profit for Q3 2025 increased to $8.3 million, with a gross margin of 64.4%, up from 60.5% in the prior year [10][12] Operating Expenses and Losses - Operating expenses decreased by $1.5 million to $9.1 million in Q3 2025 compared to $10.6 million in Q3 2024 [11] - Net loss attributable to stockholders was $2.0 million in Q3 2025, an improvement from a net loss of $4.7 million in Q3 2024 [12][24] - Adjusted EBITDA loss decreased significantly to $0.1 million for Q3 2025, compared to $2.4 million for the same period in 2024 [13][31] Future Outlook - The company raised its total revenue guidance for FY2025 to a range of $50.5 million to $52.5 million, up from the previous guidance of $50.0 million to $52.0 million [6][20] - Surgical Aesthetics revenue is expected to be between $43.0 million and $45.0 million for FY2025, compared to approximately $38.6 million reported for FY2024 [20] - The company plans to continue expanding the user base for AYON, which is expected to drive growth in single-use handpiece sales [4][6]

Core Insights - Zimmer Biomet reported Q3 revenue of $2 billion, slightly below consensus estimates of $2.01 billion, with a notable 5.6% organic revenue growth in the U.S. business driven by the adoption of new products known as the 'Magnificent Seven' [1] - The company is preparing to launch innovative technologies, including the first fully autonomous robot in orthopedics and an iodine-treated hip implant, which is the first of its kind to prevent bacterial adhesion and biofilm formation [1] - While the U.S. performance was strong, it was partially offset by weaknesses in Latin America, Emerging Markets in Europe, and non-core businesses, which emerged late in the quarter and are currently being addressed [1]

Core Insights - Teleflex Incorporated reported strong financial results for Q3 2025, with adjusted operating margin and earnings per share exceeding expectations, despite lower order rates in the intra-aortic balloon pump portfolio [2][7] - The company is focused on advancing its value creation strategy, including the separation into two entities, RemainCo and NewCo, and is actively pursuing a potential sale of NewCo [2][9] - The company has narrowed its revenue growth guidance for 2025, reflecting adjustments related to the Italian payback measure and lower-than-expected order rates [9][10] Financial Performance - Q3 2025 GAAP revenue was $913.0 million, a 19.4% increase from the prior year, while adjusted revenue was $892.9 million, up 16.8% [7][8] - The Americas segment reported revenue of $555.9 million, a 7.8% increase, while EMEA saw a significant growth of 55.9% to $234.2 million [4][5] - Adjusted diluted EPS from continuing operations was $3.67, compared to $3.49 in the prior year [7][8] Revenue by Segment - For the three months ended September 28, 2025: - Americas: $555.9 million (7.8% growth) - EMEA: $234.2 million (55.9% growth) - Asia: $122.9 million (25.0% growth) [4][5] - For the nine months ended September 28, 2025: - Americas: $1,557.3 million (2.1% growth) - EMEA: $551.6 million (20.7% growth) - Asia: $285.7 million (6.0% growth) [4][5] Revenue by Product Category - For the three months ended September 28, 2025: - Vascular Access: $191.0 million (5.6% growth) - Interventional: $266.4 million (77.8% growth) - Anesthesia: $101.4 million (0.3% growth) - Surgical: $122.9 million (10.0% growth) [6][8] - For the nine months ended September 28, 2025: - Vascular Access: $558.9 million (2.9% growth) - Interventional: $574.0 million (34.8% growth) - Anesthesia: $284.4 million (5.2% decline) [6][8] Guidance and Outlook - The company narrowed its full-year 2025 GAAP revenue growth outlook to a range of 9.10% to 9.60% and adjusted constant currency revenue growth outlook to 6.90% to 7.40% [9][10] - The GAAP diluted EPS from continuing operations guidance was lowered to a range of $(4.42) to $(4.22) [10][12] Impairment Charges - Teleflex recognized a non-cash goodwill impairment charge of $403.9 million for its Interventional Urology North America reporting unit due to deteriorating market conditions [15][16] - Additionally, a non-cash impairment charge of $100 million was recognized for the Titan SGS asset group, driven by lower-than-expected sales growth [17][18] Integration and Restructuring - The company commenced a restructuring plan related to the integration of the Vascular Intervention Business, with estimated costs of $36 to $44 million and expected annual pre-tax savings of $24 million to $30 million once fully implemented [18][19]

Core Insights - BD reported a resilient business model with a 3.9% organic growth in fiscal 2025, alongside significant adjusted margin and earnings growth [2] - The company is on track to complete the combination of its Biosciences and Diagnostic Solutions business with Waters Corporation by the end of Q1 2026, aiming to enhance its position in the Med Tech industry [2] Financial Performance - Q4 2025 revenues reached $5.89 billion, marking an 8.3% increase year-over-year, with a 3.9% organic growth [4][6] - For FY 2025, total revenues were $21.84 billion, up 8.2% from FY 2024, with adjusted diluted EPS growing by 9.6% to $14.40 [6][27] - Q4 GAAP diluted EPS increased to $1.72, a 24.6% rise compared to the previous year [6][27] Segment Performance - BD Medical segment revenues grew by 11.2% to $3.16 billion, driven by strong performance in Advanced Patient Monitoring [9][32] - BD Life Sciences segment saw a modest growth of 2.1% to $1.37 billion, with Specimen Management showing solid performance [11][32] - BD Interventional segment revenues increased by 8.5% to $1.37 billion, with notable growth in Urology and Critical Care [12][32] Geographic Results - In the United States, revenues increased by 9.8% to $3.42 billion, while international revenues grew by 6.4% to $2.47 billion [5][32] - The U.S. market showed strong growth across various segments, particularly in Medication Delivery Solutions and Advanced Patient Monitoring [30][31] Future Outlook - The company provided guidance for FY 2026, expecting low single-digit revenue growth and adjusted diluted EPS in the range of $14.75 to $15.05 [13][14] - The outlook reflects various assumptions about market conditions and operational performance [13]

Core Insights - Enovis Corporation reported a third-quarter net sales of $549 million, reflecting a 9% increase on a reported basis and a 7% increase on an organic basis compared to the same quarter in 2024 [2][14] - The company experienced a net loss of $571 million, primarily due to a non-cash goodwill impairment charge of $548 million, which does not affect future operations [3][4] - Enovis updated its 2025 financial outlook, projecting revenue between $2.24 billion and $2.27 billion and adjusted EBITDA between $395 million and $405 million [5] Financial Performance - Third-quarter net sales reached $549 million, with Recon sales growing 12% and P&R sales growing 6% year-over-year [2][14] - The adjusted EBITDA for the third quarter was $95 million, representing a margin of 17.3% [3][12] - The adjusted net earnings per diluted share were reported at $0.75, while the net loss per share was $9.99 [4][20] Strategic Focus - The company is concentrating on commercial execution, innovation, operational excellence, and financial discipline to drive profitable growth [5][6] - Enovis completed the divestiture of its Diabetic Footcare business unit for total proceeds of up to $60 million, which contributed to the revenue reduction in the updated guidance [5][14] Market Position - Enovis is positioned as an innovation-driven medical technology growth company, focusing on enhancing patient outcomes and operational efficiency for healthcare providers [7][8] - The company aims to leverage its diversified growth platform to maintain momentum in new product introductions and stable end markets [2][14]