Integra LifeSciences Reports First Quarter 2026 Financial Results
Rhea-AI Summary
Integra LifeSciences (Nasdaq: IART) reported Q1 2026 results: revenue $391.9M (+2.4% reported, +1.3% organic), GAAP EPS $(0.06), and adjusted EPS $0.54. Adjusted EBITDA was $76.2M (19.4% of revenue). Company reaffirmed 2026 revenue guidance of $1.662B–$1.702B and raised adjusted EPS guidance to $2.40–$2.50.
Net debt was $1.6B, liquidity ~$488M, and management transitions included Stuart Essig as CEO and Michael McBreen as Chief Commercial Officer.
AI-generated analysis. Not financial advice.
Positive
- Revenue $391.9M (+2.4% reported)
- Adjusted EPS $0.54 (Q1 2026)
- Adjusted EBITDA $76.2M (19.4% of revenue)
- Adjusted EPS guidance raised to $2.40–$2.50 for 2026
- Gross margin expansion to 55.4% GAAP / 64.1% adjusted
Negative
- Net debt $1.6B (consolidated leverage 4.1x)
- Operating cash flow only $9.8M in Q1
- Specialty Surgery organic sales declined 0.6%
- Second-quarter revenue guidance implies low single-digit organic growth
News Market Reaction – IART
On the day this news was published, IART gained 24.13%, reflecting a significant positive market reaction. Argus tracked a peak move of +18.4% during that session. Our momentum scanner triggered 40 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $210M to the company's valuation, bringing the market cap to $1.08B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
IART was down 2.74% while peers showed mixed moves: SSII, ESTA and BBNX were up modestly, AHCO and INMD were slightly down. Only BBNX appeared in momentum scans, moving down 4.89% without news, suggesting IART’s action was stock-specific rather than sector-driven.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 26 | Q4/FY 2025 earnings | Neutral | -2.2% | Reported Q4 and 2025 results plus initial 2026 revenue and EPS guidance. |
| Oct 30 | Q3 2025 earnings | Positive | -23.5% | Q3 revenue and adjusted EPS growth with guidance update and product relaunches. |
| Jul 31 | Q2 2025 earnings | Negative | +6.2% | Revenue dip and large goodwill impairment driving a significant GAAP loss. |
| May 05 | Q1 2025 earnings | Negative | -21.2% | Q1 revenue growth but EPS pressure and reduced 2025 guidance after tariffs. |
| Feb 25 | Q4/FY 2024 earnings | Positive | +12.1% | Q4 and 2024 growth with solid adjusted EPS and 2025 guidance introduction. |
Earnings releases often produced sharp single-day moves, with both large selloffs and rallies. Negative or mixed earnings news has frequently coincided with notable declines, while stronger quarters and guidance have seen meaningful gains. Overall, the average move around earnings has skewed negative.
Over the past year, Integra’s earnings reports have highlighted a mix of growth, impairment-driven GAAP losses, and ongoing transformation efforts. Q1 2025 and Q3 2025 saw sizable post-earnings selloffs despite revenue growth, while Q2 2025 and Q4 2024 produced solid positive reactions. The February 2026 report introduced 2026 guidance and reflected continued leverage and transformation savings. Today’s Q1 2026 update, which reaffirms revenue and raises adjusted EPS guidance, fits into this ongoing focus on margin improvement and execution.
Historical Comparison
Across the last five earnings releases, average next-day move was -5.71%, with both sharp selloffs and strong rallies, indicating historically volatile reactions to Integra’s financial updates.
Earnings updates show a company managing through goodwill impairments, tariff impacts and a transformation plan, while repeatedly refining revenue and adjusted EPS guidance and relaunching key tissue products.
Regulatory & Risk Context
Integra filed an effective Form S-3ASR shelf on 2026-02-26, allowing it to register common stock, preferred stock, debt, warrants, purchase contracts and units for potential future offerings. The shelf is effective, with 0 recorded uses so far and an expiration on 2029-02-26.
Market Pulse Summary
The stock surged +24.1% in the session following this news. A strong positive reaction aligns with improving fundamentals in this report, including Q1 $391.9M revenue growth, higher gross margins and adjusted EPS rising to $0.54. The company reaffirmed 2026 revenue guidance and raised adjusted EPS guidance to $2.40–$2.50, which could justify enthusiasm. However, net debt of $1.6B with a 4.1x leverage ratio and an effective S-3 shelf mean balance-sheet and potential financing risks could still cap sustained upside.
Key Terms
gaap financial
organic basis financial
adjusted ebitda financial
consolidated total leverage ratio financial
revolving credit facility financial
liquidity financial
tariffs regulatory
AI-generated analysis. Not financial advice.
PRINCETON, N.J., May 05, 2026 (GLOBE NEWSWIRE) -- Integra LifeSciences Holdings Corporation (Nasdaq: IART), a leading global medical technology company, today reported financial results for the first quarter ending March 31, 2026.
First Quarter 2026 Highlights
- First quarter revenues of
$391.9 million increased2.4% on a reported basis and1.3% on an organic basis compared to the prior year. - First quarter GAAP earnings per diluted share of
$(0.06) , compared to$(0.33) in the prior year. - Adjusted earnings per diluted share of
$0.54 , compared to$0.41 in the prior year. - Reaffirming 2026 full year revenue guidance of
$1.662 billion to$1.702 billion and updating 2026 adjusted earnings per share guidance from a range of$2.30 t o$2.40 t o a range of$2.40 t o$2.50 . - As noted in a separate press release issued this morning, Stuart Essig has been appointed as Integra’s next President and Chief Executive Officer and Michael McBreen has been promoted to Chief Commercial Officer.
“Our first-quarter results reflected solid product demand and the continued impact of our transformation efforts. We are seeing improving performance across the organization as operational rigor and improved execution take hold,” said Stuart Essig, chairman and chief executive officer.
“During the quarter, we continued to drive improved supply reliability, supporting strong growth in Integra Skin and our return to market with PriMatrix® and Durepair®. We made meaningful progress at our state-of-the-art Braintree manufacturing facility and remain on track to begin production of SurgiMend® by the end of June to support a fourth quarter launch. Building on these efforts, we are focused on maintaining disciplined execution and remain confident in our ability to deliver our full-year commitments to our customers, patients, and shareholders."
First Quarter 2026 Consolidated Performance
Total reported revenues of
The Company reported GAAP gross margin of
Adjusted EBITDA for the first quarter of 2026 was
The Company reported a GAAP net loss of
Adjusted net income for the first quarter of 2026 was
First Quarter 2026 Segment Performance
The Company is changing its segment names, with Codman Specialty Surgical renamed Specialty Surgery and Tissue Technologies renamed Tissue Reconstruction. Product brand names remain unchanged. The change to segment names has no financial impact.
Specialty Surgery (~
Total revenues were
- Sales in Neuro increased
1.9% on an organic basis primarily driven by growth in Certas® Plus, CUSA® and Bactiseal® - Sales in Instruments declined (
7.7% ) on an organic basis due to order timing - ENT sales declined (3.8)% as growth in MicroFrance® ENT instruments was offset by declines in other products
Tissue Reconstruction (~
Total revenues were
- Mid-single digit growth in wound reconstruction, driven by double-digit growth in Integra Skin, DuraSorb® and the relaunch of PriMatrix®, partially offset by MediHoney®
- Sales in private label grew
7.1% primarily due to a favorable prior year comparable
Balance Sheet, Cash Flow and Capital Allocation
The Company generated cash flow from operations of
As of the end of the quarter, the Company had total liquidity of approximately
2026 Revenue and Adjusted Earnings Per Share Guidance
For the second quarter 2026, the Company expects reported revenues in the range of
For the full year 2026, the Company is reiterating its revenue guidance range to
The Company’s organic sales growth guidance for the second quarter and the full year excludes acquisitions and divestitures, as well as the effects of foreign currency.
Conference Call and Presentation Available Online
Integra has scheduled a conference call for 8:30 a.m. ET on Thursday, May 5, 2026, to discuss first quarter 2026 financial results and forward-looking financial guidance. The conference call will be hosted by Integra's senior management team and will be open to all listeners. Additional forward-looking information may be discussed in a question-and-answer session following the call. Integra's management team will reference a presentation during the conference call, which can be found on the Investor section of the website at investor.integralife.com.
A live webcast will be available on the Investors section of the Company’s website at investor.integralife.com. For those planning to participate on the call, register here to receive dial-in details and an individual pin. While not required, it is recommended to join 10 minutes prior to the event’s start. A webcast replay of the conference call will be available on the Investors section of the company website following the call.
About Integra
Integra LifeSciences (Nasdaq: IART) is a global medical technology leader dedicated to restoring lives. We are advancing transformational care through impactful innovation in neurosurgery and tissue reconstruction, specialized fields that demand exceptional expertise and precision. Our portfolio of highly differentiated, gold-standard technologies are trusted by healthcare professionals to deliver life-saving care. For our latest news and information, visit www.integralife.com.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties and reflect the Company's judgment as of the date of this release. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements. Some of these forward-looking statements may contain words like “will,” “believe,” “may,” “could,” “would,” “might,” “possible,” “should,” “expect,” “intend,” "forecast," "guidance," “plan,” “anticipate,” "target," or “continue,” the negative of these words, other terms of similar meaning or they may use future dates. Forward-looking statements contained in this news release include, but are not limited to, statements concerning: future business, operational and financial performance and the Company’s expectations and plans with respect to market opportunity, business and operational performance, strategic initiatives, capabilities, resources, manufacturing capabilities, product development, product availability and regulatory approvals, including expectations regarding the Company’s compliance master plan to improve the Company's quality systems. It is important to note that the Company’s goals and expectations are not predictions of actual performance. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from predicted or expected results. Such risks and uncertainties include, but are not limited, to the following: increased geopolitical instability and
other macroeconomic factors, including trade barriers and related restrictions (including tariffs and related countermeasures), armed conflict and acts of terrorism, geopolitical tension and instability, supply chain disruptions, and interest rate and foreign currency rate fluctuations, on the Company’s suppliers, vendors and customers and on the Company’s business and financial condition, results of operations and cash flows; the Company's ability to execute its financial, strategic and operating plans effectively; the Company's ability to remediate quality systems violations; difficulties in implementing the Company’s compliance master plan; difficulties or delays in obtaining and maintaining required regulatory approvals, including the costs thereof; potential difficulties, delays and disruptions in manufacturing, distribution or sale of products; the failure of the company’s suppliers, vendors, and other third parties to meet contractual, regulatory and other obligations; the anticipated development of markets the Company sells its products into and the success of the Company’s products in these markets; the Company’s ability to predict accurately the demand for its products and products under development; increasing industry competition; the coverage and reimbursement decisions of third-party payors; trends toward health care cost containment; difficulties in controlling expenses, including costs to procure and manufacture the Company’s products; the ability of the Company to successfully manage leadership and organizational changes and the impact of changes in management or staff levels; the impact of goodwill and intangible asset impairment charges if future operating results of acquired businesses are significantly less than the results anticipated at the time of the acquisitions, the geographic distribution of where the Company generates its taxable income; changes to applicable laws, regulations and enforcement guidance, including tax laws and global health care reforms; fluctuations in foreign currency exchange rates; the amount of our bank borrowings outstanding and other factors influencing liquidity; breaches, failures or other disruptions of our or our vendors’ or customers’ information technology systems or products; and the economic, competitive, governmental, technological, and other risk factors and uncertainties identified under the heading “Risk Factors” included in Item 1A of Integra's Annual Report on Form 10-K for the year ended December 31, 2025 and information contained in subsequent filings with the Securities and Exchange Commission.
These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events, or otherwise, except as otherwise required by law.
Discussion of Adjusted Financial Measures
In addition to our GAAP results, we provide certain non-GAAP measures, including organic revenues, adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted net income, adjusted gross margin, adjusted earnings per diluted share, and net debt. Organic revenues consist of total revenues excluding the effects of currency exchange rates, revenues from current-period acquisitions and product divestitures. Adjusted EBITDA consists of GAAP net income excluding: (i) depreciation and amortization; (ii) other income (expense); (iii) interest income and expense; (iv) income tax expense (benefit); (v) impairment charges; and (vi) those operating expenses also excluded from adjusted net income. The measure of adjusted net income consists of GAAP net income, excluding: (i) structural optimization charges; (ii) divestiture, acquisition and integration-related charges; (iii) EU Medical Device Regulation-related charges; (iv) charges related to the manufacturing stoppage and voluntary global recall of all products manufactured at the Company’s Boston, Massachusetts facility and distributed between March 1, 2018 and May 22, 2023, as previously disclosed in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on May 23, 2023 (the “recall”) and the transition of Boston-related manufacturing operations to the Company’s Braintree, Massachusetts facility; (v) intangible asset amortization expense; (vi) income tax impact from adjustments; and (vii) impairment charges. The measure of adjusted gross margin is calculated by dividing adjusted gross profit by total revenues. Adjusted gross profit consists of GAAP gross profit adjusted for: (i) structural optimization charges; (ii) divestiture, acquisition and integration-related charges; (iii) charges related to the recall and the transition of Boston-related manufacturing operations to the Company’s Braintree, Massachusetts facility; (iv) EU Medical Device Regulation-related charges; and (v) intangible asset amortization expense. The adjusted earnings per diluted share measure is calculated by dividing adjusted net income attributable to diluted shares by diluted weighted average shares outstanding. The measure of net debt consists of GAAP total debt (excluding deferred financing costs) less short-term investments, cash and cash equivalents.
Reconciliations of GAAP revenues to organic revenues, GAAP net income to adjusted EBITDA, and adjusted net income, GAAP gross margin to adjusted gross margin, GAAP total debt to net debt, and GAAP earnings per diluted share to adjusted earnings per diluted share all for the quarters ended March 31, 2026 and 2025.
The Company is providing forward-looking guidance regarding organic revenue and adjusted earnings per diluted share but is not providing reconciliations to the most directly comparable forward-looking GAAP financial measures because certain GAAP expense items and the impact of changes in foreign exchange rates are highly variable and management is unable to predict them with reasonable certainty and without unreasonable effort. Specifically, the actual impact of changes in foreign exchange rates and the financial impact and timing of divestitures, acquisitions, integrations, structural optimization, efforts to comply with the EU Medical Device Regulation, and income tax impact from adjustments are uncertain, depend on various dynamic factors and are not reasonably ascertainable at this time. The unavailable information could have a material impact on GAAP results.
The Company believes that the presentation of organic revenues and the other non-GAAP measures provide important supplemental information to management and investors regarding financial and business trends relating to the Company's financial condition and results of operations. For further information regarding why Integra believes that these non-GAAP financial measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the Company's Current Report on Form 8-K regarding this earnings press release filed today with the Securities and Exchange Commission. This Current Report on Form 8-K is available on the SEC's website at www.sec.gov or on our website at www.integralife.com.
Investor Relations Contact:
Chris Ward
(609) 772-7736
chris.ward@integralife.com
Media Contact:
Laurene Isip
(609) 208-8121
laurene.isip@integralife.com
| INTEGRA LIFESCIENCES HOLDINGS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||
| (In thousands, except per share amounts) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Total revenue, net | $ | 391,918 | $ | 382,653 | |||
| Costs and expenses: | |||||||
| Cost of goods sold | 174,936 | 188,221 | |||||
| Research and development | 23,501 | 24,728 | |||||
| Selling, general and administrative | 178,235 | 181,497 | |||||
| Intangible asset amortization | 3,776 | 3,704 | |||||
| Total costs and expenses | 380,448 | 398,150 | |||||
| Operating income (loss) | 11,470 | (15,497 | ) | ||||
| Interest income | 4,106 | 4,420 | |||||
| Interest expense | (22,465 | ) | (18,815 | ) | |||
| Other income (expense), net | 4,480 | (144 | ) | ||||
| Loss before income taxes | (2,409 | ) | (30,036 | ) | |||
| Provision for income taxes | 2,208 | (4,743 | ) | ||||
| Net loss | $ | (4,617 | ) | $ | (25,293 | ) | |
| Net loss per share | |||||||
| Diluted | $ | (0.06 | ) | $ | (0.33 | ) | |
| Weighted average common shares outstanding | 76,951 | 76,463 | |||||
The following table presents revenues disaggregated by the major sources for the three months ended March 31, 2026 and 2025 (amounts in thousands):
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | Change | |||||
| Neurosurgery | $ | 198,195 | $ | 190,912 | 3.8 | % | |
| Instruments | 47,233 | 50,950 | (7.3 | )% | |||
| ENT | 37,707 | 38,802 | (2.8 | )% | |||
| Total Codman Specialty Surgical | 283,135 | 280,664 | 0.9 | % | |||
| Wound Reconstruction and Care | 79,648 | 74,779 | 6.5 | % | |||
| Private Label | 29,135 | 27,210 | 7.1 | % | |||
| Total Tissue Technologies | 108,783 | 101,989 | 6.7 | % | |||
| Total reported revenues | $ | 391,918 | $ | 382,653 | 2.4 | % | |
| Impact of changes in currency exchange rates | (4,452 | ) | — | ||||
| Total organic revenues(1) | $ | 387,467 | $ | 382,653 | 1.3 | % | |
| (1) Organic revenues have been adjusted to exclude foreign currency (current period), acquisitions and to account for divested and discontinued products. | |||||||
Items included in GAAP net income and location where each item is recorded are as follows:
| (In thousands) | |||||||||
| Three Months Ended March 31, 2026 | |||||||||
| Item | Total Amount | COGS(a) | SG&A(b) | R&D(c) | Amort (d) | OI&E(e) | Tax(f) | ||
Acquisition, divestiture and integration-related charges | 1,812 | 28 | 1,394 | 148 | — | 241 | — | ||
Structural Optimization charges | 9,286 | 2,588 | 6,120 | 578 | — | — | — | ||
| EU Medical Device Regulation charges | 7,887 | 1,153 | 3,338 | 3,397 | — | — | — | ||
| Boston Recall/Braintree Transition | 7,728 | 7,135 | 575 | 19 | — | — | — | ||
| Intangible asset amortization expense | 27,005 | 23,230 | — | — | 3,775 | — | — | ||
Estimated income tax impact from above adjustments and other items | (7,541 | ) | — | — | — | — | — | (7,541 | ) |
| Depreciation expense | 11,235 | — | — | — | — | — | — | ||
| a) COGS - Cost of goods sold b) SG&A - Selling, general and administrative c) R&D - Research & development d) Amort. - Intangible asset amortization e) OI&E - Other income & expense f) Tax - Income tax expense (benefit) | |||||||||
Items included in GAAP net income and location where each item is recorded are as follows:
| (In thousands) | ||||||||||
| Three Months Ended March 31, 2025 | ||||||||||
| Item | Total Amount | COGS(a) | SG&A(b) | R&D(c) | Amort (d) | OI&E(e) | Tax(f) | |||
Acquisition, divestiture and integration-related charges | 6,224 | 671 | 5,824 | (736 | ) | — | 464 | — | ||
Structural Optimization charges | 10,663 | 4,276 | 6,436 | (50 | ) | — | — | — | ||
EU Medical Device Regulation charges | 10,944 | 1,375 | 4,807 | 4,761 | — | — | — | |||
Boston Recall/Braintree Transition | 14,810 | 14,386 | 424 | — | — | — | — | |||
Intangible asset amortization expense | 26,473 | 22,769 | — | — | 3,704 | — | — | |||
Estimated income tax impact from above adjustments and other items | (12,167 | ) | — | — | — | — | — | (12,167 | ) | |
Depreciation expense | 10,456 | — | — | — | — | — | — | |||
| a) COGS - Cost of goods sold b) SG&A - Selling, general and administrative c) R&D - Research & development d) Amort. - Intangible asset amortization e) OI&E - Other income & expense f) Tax - Income tax expense (benefit) | ||||||||||
| RECONCILIATION OF NON-GAAP ADJUSTMENTS - GAAP NET INCOME TO ADJUSTED EBITDA (UNAUDITED) (In thousands) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| GAAP net loss | $ | (4,617 | ) | $ | (25,293 | ) | |
| Non-GAAP adjustments: | |||||||
| Depreciation and intangible asset amortization expense | 38,240 | 36,929 | |||||
| Other (income) expense, net | (4,480 | ) | (320 | ) | |||
| Interest expense, net | 18,118 | 14,394 | |||||
| Income tax expense | 2,208 | (4,743 | ) | ||||
| Structural optimization charges | 9,286 | 10,663 | |||||
| EU Medical Device Regulation charges | 7,887 | 10,944 | |||||
| Boston Recall/Braintree Transition | 7,728 | 14,810 | |||||
| Acquisition, divestiture and integration-related charges | 1,812 | 6,224 | |||||
| Total of non-GAAP adjustments | 80,799 | 88,902 | |||||
| Adjusted EBITDA | $ | 76,182 | $ | 63,609 | |||
| RECONCILIATION OF NON-GAAP ADJUSTMENTS - GAAP NET INCOME TO MEASURES OF ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE (UNAUDITED) (In thousands, except per share amounts) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| GAAP net loss | $ | (4,617 | ) | $ | (25,293 | ) | |
| Non-GAAP adjustments: | |||||||
| Structural optimization charges | 9,286 | 10,663 | |||||
| Acquisition, divestiture and integration-related charges | 1,812 | 6,224 | |||||
| EU Medical Device Regulation charges | 7,887 | 10,944 | |||||
| Boston Recall/Braintree Transition | 7,728 | 14,810 | |||||
| Intangible asset amortization expense | 27,005 | 26,473 | |||||
| Estimated income tax impact from adjustments and other items | (7,541 | ) | (12,167 | ) | |||
| Total of non-GAAP adjustments | 46,177 | 56,947 | |||||
| Adjusted net income | $ | 41,560 | $ | 31,654 | |||
| Adjusted diluted net income per share | $ | 0.54 | $ | 0.41 | |||
| Weighted average common shares outstanding for diluted net income per share | 77,198 | 76,586 | |||||
| CONDENSED BALANCE SHEET DATA (UNAUDITED) | |||||
| (In thousands) | |||||
| March 31, 2026 | December 31, 2025 | ||||
| Short term investments | $ | 28,693 | $ | 28,693 | |
| Cash and cash equivalents | 236,809 | 235,048 | |||
| Trade accounts receivable, net | 264,413 | 278,849 | |||
| Inventories, net | 495,035 | 492,735 | |||
| Current and long-term borrowing under senior credit facility | 1,789,005 | 1,768,306 | |||
| Borrowings under securitization facility | 76,400 | 87,800 | |||
| Convertible securities | — | — | |||
| Stockholders' equity | $ | 1,042,406 | $ | 1,043,463 | |
| CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED) | |||||||
| (In thousands) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Net cash (used) provided by operating activities | $ | 9,803 | $ | (11,257 | ) | ||
| Net cash used in investing activities | (14,848 | ) | (35,920 | ) | |||
| Net cash provided by financing activities | 8,297 | 35,377 | |||||
| Effect of exchange rate changes on cash and cash equivalents | (1,491 | ) | 4,529 | ||||
| Net decrease in cash and cash equivalents | $ | 1,761 | $ | (7,271 | ) | ||
| RECONCILIATION OF NON-GAAP ADJUSTMENTS - GAAP OPERATING CASH FLOW TO MEASURES OF FREE CASH FLOW AND ADJUSTED FREE CASH FLOW CONVERSION (UNAUDITED) (In thousands) | ||||||
| Three Months Ended March 31, | ||||||
| 2026 | 2025 | |||||
| Net cash provided by operating activities | $ | 9,803 | $ | (11,257 | ) | |
| Purchases of property and equipment | (14,848 | ) | (28,920 | ) | ||
| Free cash flow | $ | (5,045 | ) | $ | (40,177 | ) |
| Adjusted net income(1) | $ | 41,560 | $ | 31,654 | ||
| Adjusted free cash flow conversion | (12.1) | % | (126.9) | % | ||
| Twelve Months Ended March 31, | ||||||
| 2026 | 2025 | |||||
| Net cash provided by operating activities | $ | 71,445 | $ | 102,368 | ||
| Purchases of property and equipment | (67,365 | ) | (117,872 | ) | ||
| Free cash flow | $ | 4,080 | $ | (15,504 | ) | |
| Adjusted net income(1) | $ | 181,287 | $ | 185,652 | ||
| Adjusted free cash flow conversion | 2.3 | % | (8.4) | % | ||
| (1) Adjusted net income for quarters ended March 31, 2026 and 2025 are reconciled above. Adjusted net income for remaining quarters in the trailing twelve months calculation have been previously reconciled and are publicly available in the Quarterly Earnings Call Presentations on our website at investor.integralife.com under Events & Presentations. | ||||||
The Company calculates adjusted free cash flow conversion by dividing its free cash flow by adjusted net income. The Company believes this measure is useful in evaluating the significance of the cash special charges in its adjusted earnings measures.
| RECONCILIATION OF NON-GAAP ADJUSTMENTS - NET DEBT CALCULATION (UNAUDITED) | ||||||
| (In thousands) | ||||||
| March 31, 2026 | December 31, 2025 | |||||
| Short-term borrowings under senior credit facility | $ | 38,750 | $ | 38,750 | ||
| Long-term borrowings under senior credit facility | 1,750,255 | 1,729,556 | ||||
| Borrowings under securitization facility | 76,400 | 87,800 | ||||
| Convertible securities | — | — | ||||
| Deferred financing costs netted in the above | 2,870 | 3,257 | ||||
| Short term investments | (28,693 | ) | (28,693 | ) | ||
| Cash & Cash Equivalents | (236,809 | ) | (235,048 | ) | ||
| Net Debt | $ | 1,602,773 | $ | 1,595,622 | ||
| RECONCILIATION OF NON-GAAP ADJUSTMENTS - GAAP GROSS PROFIT TO MEASURES OF ADJUSTED GROSS PROFIT AND ADJUSTED GROSS MARGIN (UNAUDITED) (In thousands, except percentages) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Total revenues, net | $ | 391,918 | $ | 382,653 | |||
| Cost of goods sold | 174,936 | 188,221 | |||||
| Reported Gross Profit | 216,982 | 194,432 | |||||
| Structural optimization charges | 2,588 | 4,276 | |||||
| Acquisition, divestiture and integration-related charges | 28 | 671 | |||||
| Boston Recall/Braintree Transition | 7,135 | 14,386 | |||||
| EU Medical Device Regulation | 1,153 | 1,375 | |||||
| Intangible asset amortization expense | 23,230 | 22,769 | |||||
| Adjusted Gross Profit | $ | 251,116 | $ | 237,909 | |||
| Total Revenues | $ | 391,918 | $ | 382,653 | |||
| Adjusted Gross Margin | 64.1 | % | 62.2 | % | |||
