Financial Data and Key Metrics Changes - Full year 2025 revenue was $1.635 billion, representing 1.5% growth on a reported basis and a 0.7% organic decline [15] - Fourth quarter revenues were $435 million, reflecting a decrease of 1.7% on a reported basis and an organic decline of 2.5% [17] - Full-year gross margin was 61.9%, down 260 basis points year-over-year, while fourth quarter gross margin was 61.7%, down 350 basis points from the prior year [16][18] - Adjusted earnings per share for the full year was $2.23, compared to $2.56 in 2024, and for the fourth quarter was $0.83 compared to $0.97 in the prior year [16][18] Business Line Data and Key Metrics Changes - In the global neurosurgery segment, organic growth was 1.4%, with double-digit growth in CereLink, MAYFIELD Capital, and AURORA [18] - Tissue Technologies revenues were $111.6 million, down 12.8% on both a reported and organic basis, with a 21.4% decline in the Wound Reconstruction franchise [19] - Private label sales in Tissue Technologies were up 20.1% year-over-year, driven by improved partner orders [19] Market Data and Key Metrics Changes - International markets contributed to high single-digit growth in the CSF business, led by double-digit performance in China and Canada [18] - Demand indicators across global markets remain strong, with expectations for continued growth in China [52] Company Strategy and Development Direction - The company is focused on four strategic imperatives: delivering best-in-class quality, driving supply chain reliability, accelerating growth, and igniting innovation [9][10] - A new operating model has been implemented to reduce complexity and improve efficiency, with a focus on disciplined execution and accountability [8] - The company plans to bring key products back to the market, including SurgiMend and DuraSorb, with a new manufacturing facility expected to be operational by mid-2026 [11][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged uncertainty around new tariffs and their potential impact on guidance for 2026 [4] - The company expects improved cash flow in 2026, with operating cash flow projected to exceed $200 million [31] - Management remains optimistic about long-term growth and value creation prospects, emphasizing the importance of quality management and supply reliability [14][26] Other Important Information - The company has welcomed six new leaders to its executive team, enhancing capabilities and supporting long-term growth [7] - The company is actively monitoring reimbursement changes and believes its pricing is well within the new reimbursement range [32] Q&A Session Summary Question: Free cash flow generation and improvement expectations for 2026 - Management explained that negative free cash flow in the quarter was driven by timing of collections and restructuring costs, but expects significant improvement in 2026 with operating cash flow projected to exceed $200 million [30][31] Question: Status of Tissue Technologies business and reimbursement changes - Management indicated that while there are reimbursement changes, they do not expect negative impacts on their business, as their pricing aligns with new reimbursement levels [32] Question: Growth assumptions for CSS and Tissue Technologies - Management provided insights on growth expectations, indicating low single-digit growth for CSS and low to mid single-digit growth for Tissue Technologies in 2026, driven by supply rather than demand [40] Question: Key milestones for Braintree and product relaunches - Management confirmed that Braintree is on track for operationalization by mid-2026, with ongoing process validations [45] Question: MediHoney remediation efforts - Management stated that revenues for MediHoney have not been accounted for in 2026 guidance, as remediation efforts continue [50] Question: International market dynamics and performance in China - Management noted strong performance in China and Canada, expecting continued growth contributions from these markets [52]

Financial Data and Key Metrics Changes - For the full year 2025, revenue was $1.635 billion, representing 1.5% growth on a reported basis and a 0.7% organic decline [15] - Fourth quarter revenues were $435 million, reflecting a decrease of 1.7% on a reported basis and an organic decline of 2.5% [17] - Full-year gross margin was 61.9%, down 260 basis points year-over-year, while adjusted EBITDA margin was 19.4%, down 60 basis points [16] - Adjusted EPS for the full year was $2.23, compared to $2.56 in 2024 [16] Business Line Data and Key Metrics Changes - Double-digit growth was achieved in Sterilink, Mayfield Capital, AURORA, DuraSorb, programmable valves, and fixed pressure valves for the full year 2025 [15] - Global neurosurgery delivered 1.4% organic growth, with strong performance in CereLink, MAYFIELD Capital, and AURORA [18] - Tissue Technologies revenues were $111.6 million, down 12.8% on both a reported and organic basis compared to the prior year [19] Market Data and Key Metrics Changes - International markets contributed to high single-digit growth in the CSF business, led by double-digit performance in China and Canada [18] - The capital business grew in the low double digits, benefiting from strong pipelines and disciplined commercial execution [18] Company Strategy and Development Direction - The company is focused on four strategic imperatives: delivering best-in-class quality, driving supply chain reliability, accelerating growth, and igniting innovation [10] - A new operating model has been implemented to reduce complexity and improve efficiency, alignment, and accountability [9] - The company aims to return key products to the market and recapture share while sharpening its approach to innovation and portfolio prioritization [26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged uncertainty around new Section 122 tariffs but stated that 2026 guidance does not incorporate these changes [4] - The company expects improved cash flow in 2026, with operating cash flow projected to exceed $200 million [31] - Management remains confident in the long-term growth and value creation prospects, emphasizing the importance of quality management and supply reliability [14] Other Important Information - The company is actively monitoring the impact of recent tariff changes and has not accounted for any revenues from MediHoney in its 2026 guidance [50] - The Braintree manufacturing facility is expected to be operational by the end of June 2026, supporting the return of SurgiMend to the market in Q4 2026 [11] Q&A Session Summary Question: Free cash flow generation and improvement - Management explained that negative free cash flow was driven by timing of collections and restructuring costs, but expects significant improvement in 2026 [30] Question: Tissue Technologies business and CMS changes - Management noted that reimbursement changes are being monitored, and they do not expect negative impacts on their business due to pricing being within the new reimbursement range [32] Question: Growth assumptions for CSS and Tissue Tech - Management indicated that growth expectations for both CSS and Tissue Tech are below market due to supply constraints, not demand [40] Question: Status of MediHoney remediation efforts - Management confirmed that no revenues from MediHoney are accounted for in 2026 guidance, as remediation efforts continue [50] Question: Outlook for PriMatrix and DuraRepair - Management reported strong early reception for PriMatrix and DuraRepair following their relaunch, with plans for a measured ramp in 2026 [47]

Financial Data and Key Metrics Changes - For the full year 2025, revenue was $1.635 billion, representing 1.5% growth on a reported basis and a 0.7% organic decline [15] - Fourth quarter revenues were $435 million, reflecting a decrease of 1.7% on a reported basis and an organic decline of 2.5% [17] - Full-year gross margin was 61.9%, down 260 basis points year-over-year, while adjusted EBITDA margin was 19.4%, down 60 basis points [16] - Adjusted EPS for the full year was $2.23, compared to $2.56 in 2024 [16] Business Line Data and Key Metrics Changes - In the global neurosurgery segment, organic growth was 1.4%, with double-digit growth in CereLink, MAYFIELD Capital, and AURORA [18] - Tissue Technologies revenues were $111.6 million, down 12.8% on both a reported and organic basis, with a 21.4% decline in the Wound Reconstruction franchise [19] - The capital business grew in the low double digits, while instruments posted low single-digit growth [18] Market Data and Key Metrics Changes - International markets contributed to high single-digit growth in the CSF business, led by double-digit performance in China and Canada [18] - Demand indicators across global markets remain strong, despite challenges in specific segments [18] Company Strategy and Development Direction - The company is focused on four strategic imperatives: delivering best-in-class quality, driving supply chain reliability, accelerating growth, and igniting innovation [10] - A new operating model has been implemented to reduce complexity and improve efficiency, with a focus on quality and supply chain reliability [10] - The company aims to return key products to the market and recapture share while investing in innovation and portfolio prioritization [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth and value creation prospects, despite uncertainties related to recent tariff changes [13] - The company expects improved cash flow in 2026, with operating cash flow projected to exceed $200 million [32] - Management remains cautious about organic growth due to supply constraints but sees strong underlying demand across the portfolio [40] Other Important Information - The company is actively monitoring the impact of new tariffs following a Supreme Court ruling, which may affect future financial guidance [25] - The Braintree manufacturing facility is expected to be operational by the end of June 2026, supporting the return of SurgiMend to the market [11] Q&A Session Summary Question: Free cash flow generation and improvement - Management noted that negative free cash flow was driven by timing of collections and restructuring costs, but expects significant improvement in 2026 [31] Question: Tissue Technologies business and CMS changes - Management indicated that reimbursement changes are being monitored, with no expected negative impact on business due to pricing being within new reimbursement ranges [33] Question: Growth assumptions for CSS and Tissue Tech - Management expects low single-digit growth for CSS and low to mid single-digit growth for Tissue Tech in 2026, reflecting supply constraints rather than demand issues [40] Question: Status of MediHoney remediation efforts - Management confirmed that no revenues from MediHoney are accounted for in 2026 guidance, as remediation efforts continue [51] Question: Outlook for PriMatrix and DuraRepair - Early reception for PriMatrix and DuraRepair post-relaunch has been positive, with expectations for strong contributions in 2026 [48]