Financial Data and Key Metrics Changes - For Q3 2025, global sales were $904 million, a decrease of 5% as reported, or negative 8% on a constant currency basis [7] - Adjusted EBITDA was 18.4%, up 50 basis points versus the prior year, driven by lower sales on favorable product and geography mix [8] - Non-GAAP earnings per share was $0.37, down $0.13 versus the prior year, with approximately half of the decline reflecting impacts of sales mix and tariffs [9] Business Line Data and Key Metrics Changes - Sales in the U.S. were $291 million, down 22.2% year-over-year, driven by lower sales in Essential Dental Solutions, CAD/CAM, Imaging, and Implants [10] - European sales were $382 million, increasing 9.9% as reported, or 2.6% on a constant currency basis, driven by growth in Connected Technology Solutions and labs [10] - Wellspect Healthcare sales grew 9.3% in Europe on a constant currency basis, with significant growth in the Rest of World segment [12] Market Data and Key Metrics Changes - U.S. sales were down 22.2%, while European sales increased 9.9%, indicating a divergence in market performance [10] - The Rest of World sales were $231 million, down slightly versus the prior year, with strength in Essential Dental Solutions offset by declines in Connected Technology Solutions and implants [11] Company Strategy and Development Direction - The company is focusing on a return-to-growth action plan with four key pillars: putting customers at the center, reigniting the U.S. business, empowering people, and evolving operations [14] - A transition plan is in place following the departure of the CFO to ensure continuity and maintain financial discipline [6][20] - The company plans to increase investments in R&D to improve product development processes and enhance customer experience [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the need for bold changes and emphasized a commitment to reposition the company as a market leader [27] - The revised outlook for 2025 includes net sales in the range of $3.6 billion to $3.7 billion, with constant currency sales expected to decline by 5% to 4% year-over-year [13] - Management expressed confidence in the company's potential and the importance of executing the return-to-growth plan [26] Other Important Information - The company recorded a $263 million non-cash after-tax charge related to the impairment of goodwill and intangible assets due to tariffs and lower projected volumes [9] - The Wellspect Healthcare business will play a key role in achieving financial goals, with a decision made to retain the business for greater strategic benefit [25] Q&A Session Summary Question: Insights on the U.S. market performance - Management indicated that the U.S. market's decline is due to multiple factors, including structural approach and execution issues [31][32] Question: Cadence of growth over the next two years - Management stated that while they desire to return to growth quickly, they need more time to refine the growth plan and establish a timeline for improvements [35][36] Question: Capital allocation philosophy and dividend importance - Management emphasized the need to explore the value of dividends and prioritize business growth and debt retirement [37][38] Question: R&D investment acceleration - Management confirmed plans to pull forward R&D investments to strengthen the company's position for 2026 and beyond [40][42] Question: Characteristics sought in a new CFO - Management is looking for a CFO who can analyze data effectively and communicate meaningful metrics to drive the company's return-to-health strategy [64][65]