Company Overview - Enovis Corporation is a global medical technology company specializing in orthopedic solutions for musculoskeletal conditions, leveraging a diversified product portfolio and established distribution channels to meet the needs of healthcare professionals and patients [8] - The company develops and distributes orthopedic medical devices, including bracing, therapy products, bone growth stimulators, and reconstructive joint implants, targeting both healthcare professionals and retail channels under the DJO brand [7] Financial Performance - As of November 25, 2025, Enovis Corporation's share price was $30.32, with a market capitalization of $1.68 billion and a trailing twelve months (TTM) revenue of $2.23 billion [4] - The company's share price has decreased by 40.48% over the past year, with shares down approximately 38.6% due to expanding quarterly net losses, which increased from $37 million in the second quarter to $571 million in the third quarter [4][9] - The third quarter's expanded net loss included a non-cash goodwill impairment charge of $548 million, which is not expected to recur, while sales in the Recon segment grew by 12% year over year and P&R sales grew by 6% year over year [10] Insider Activity - John Kleckner, the Principal Accounting Officer, purchased 2,468 shares on November 25, 2025, marking the largest single-day acquisition on record for him, increasing his direct ownership by 25.1% from 9,834 to 12,302 shares [2][6] - The transaction value was $74,829.76, with shares acquired at $30.32 each, although the share price had declined to $29.36 by December 1, 2025, representing a drop of 3.2% from the purchase price [2][6]

Financial Data and Key Metrics Changes - Net revenue for Q1 2025 was $26.6 million, a decrease from $46.5 million in Q1 2024, primarily due to a temporary payment suspension from TRICARE and slowing order growth [20][21] - Gross profit in Q1 2025 was $18.2 million, representing 69% of revenue, compared to $37.2 million or 80% of revenue in Q1 2024 [20][21] - Net loss for Q1 2025 was $10.4 million, or $0.33 per share, compared to a net income of $10,000 in the previous year [21][22] Business Line Data and Key Metrics Changes - Device revenue was $11.9 million, while supplies revenue was $14.7 million in Q1 2025 [20] - Non-NexWave product order percentage increased to 34% in Q1 2025, up from an average of 30% in the previous year [13] Market Data and Key Metrics Changes - The company is experiencing a temporary payment suspension from TRICARE, which has affected revenue recognition [6][12] - The patient monitoring market is identified as a multibillion-dollar opportunity, with the company planning to enter with a superior product [19] Company Strategy and Development Direction - The company is restructuring to operate without TRICARE business in a worst-case scenario and is focusing on new revenue opportunities [9][10] - The company aims to generate revenue exceeding $800 million annually in the long term [25] - The launch of the Nico pulse oximeter is anticipated to significantly impact the patient monitoring market, with a focus on improving health equity [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth prospects despite current challenges, emphasizing a commitment to high-quality service and technology [24][25] - The company expects to receive a response from TRICARE regarding the payment suspension within 40 days [24] Other Important Information - The company has reduced overall staff by approximately 15%, primarily in the corporate office, which is expected to result in annual savings of about $35 million [13] - The company maintains a strong balance sheet with $40 million in working capital and approximately $24 million in cash [22] Q&A Session Summary Question: Insights into TRICARE conversations and potential domino effects - Management indicated that the claims from TRICARE were vague and emphasized compliance with guidelines, stating there are no current issues with other payers [28][30][31] Question: Clarification on Q1 revenue miss and future guidance - The revenue miss was attributed to multiple factors, and management is waiting for clarity on TRICARE before providing full-year guidance [32][34][35] Question: Confirmation of TRICARE payments in Q1 and Q2 guidance - Management confirmed that Q1 revenue and guidance for Q2 do not include TRICARE payments, and they expect reimbursement for claims once the suspension is lifted [37][38] Question: Plans if TRICARE outcome is negative - The company plans to refocus its sales force to generate revenue from other areas if TRICARE payments are not restored [40][41] Question: Expected revenue from Nico post-approval - Management expects to launch Nico immediately upon FDA clearance, with revenue anticipated in 2026 [42]

Financial Data and Key Metrics Changes - Net revenue for Q1 2025 was $26.6 million, a decrease from $46.5 million in Q1 2024, primarily due to a temporary payment suspension from TRICARE and slowing order growth [19] - Gross profit in Q1 2025 was $18.2 million, representing 69% of revenue, compared to $37.2 million or 80% of revenue in Q1 2024 [20] - Net loss for Q1 2025 was $10.4 million, or $0.33 per share, compared to a net income of $10,000 in the previous year [21] - Adjusted EBITDA loss for Q1 2025 was $11.8 million, compared to an adjusted EBITDA of $1.7 million in Q1 2024 [21] - The company maintained a strong balance sheet with $40 million in working capital and approximately $24 million in cash on hand [22] Business Line Data and Key Metrics Changes - Device revenue was $11.9 million, while supplies revenue was $14.7 million in Q1 2025 [19] - The percentage of non-NexWave product orders increased to 34% in Q1 2025, up from an average of 30% in the previous year [13] Market Data and Key Metrics Changes - The company is focusing on diversifying its revenue streams and expanding its sales force to drive growth in various markets, including personal injury [13][24] - The patient monitoring market is identified as a multibillion-dollar opportunity, with the upcoming Nico pulse oximeter expected to significantly improve care across diverse patient demographics [18] Company Strategy and Development Direction - The company is restructuring its business to operate without TRICARE revenue in a worst-case scenario, aiming to trim costs and refocus on new revenue opportunities [9][24] - The company plans to submit the Nico pulse oximeter to the FDA, with expectations for commercialization in 2026 [17][41] - The long-term goal is to generate revenue exceeding $800 million annually, with a focus on non-opioid pain management solutions and improved healthcare outcomes [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth prospects despite recent challenges, emphasizing the importance of high-quality service and compliance with guidelines [23] - The company anticipates a response from TRICARE regarding the payment suspension within 40 days, which could lead to increased revenue once resolved [23][32] - The company is adjusting its cost structure to return to profitability as soon as possible, with Q2 revenue estimated at $27 million and an EPS loss of $0.20 [25] Other Important Information - The company has reduced overall staff by approximately 15%, primarily in the corporate office, which is expected to result in annual savings of about $35 million [13] - The company is actively promoting other products, such as bracing, to prescribers as part of its growth strategy [10] Q&A Session Summary Question: Insights into TRICARE conversations and potential domino effects with other payers - Management indicated that TRICARE's payment suspension is temporary while they confirm compliance with guidelines, and there are no current issues with other payers [30][31] Question: Clarification on Q1 performance and guidance for 2025 - Management acknowledged multiple factors contributed to the revenue miss in Q1 and stated that guidance for the remainder of the year would be provided after gaining clarity on TRICARE [34] Question: Confirmation of revenue guidance excluding TRICARE payments - Management confirmed that Q1 revenue and Q2 guidance do not include payments from TRICARE [36] Question: Potential lump sum payments from TRICARE if the outcome is positive - Management expressed uncertainty about the payment structure but confirmed that TRICARE would reimburse claims once the suspension is lifted [37][39] Question: Plans if TRICARE outcome is negative - Management stated that they would refocus the sales force to generate revenue from other areas to compensate for potential losses from TRICARE [40] Question: Expected revenue generation from Nico post-approval - Management confirmed that Nico is expected to generate meaningful sales in 2026 following its launch [41]