Integra LifeSciences Reports Second Quarter 2025 Financial Results
Integra LifeSciences (NASDAQ: IART) reported mixed Q2 2025 financial results with revenues of $415.6 million, showing a slight decline of 0.6% reported and 1.4% organic year-over-year. The company posted a significant GAAP net loss of $(6.31) per share, primarily due to a $511 million goodwill impairment charge, compared to $(0.16) in the prior year.
The Codman Specialty Surgical segment (~70% of revenues) reached $304.0 million, growing 0.7% reported, while Tissue Technologies (~30%) declined 4.1% to $111.6 million. The company updated its full-year 2025 revenue guidance to $1.655-1.680 billion and maintained adjusted EPS guidance of $2.19-2.29.
Integra is implementing a Compliance Master Plan and has completed all manufacturing site assessments, while launching profitability initiatives to drive efficiency gains over the next 12-18 months.
Integra LifeSciences (NASDAQ: IART) ha riportato risultati finanziari misti per il secondo trimestre del 2025 con ricavi pari a 415,6 milioni di dollari, registrando un leggero calo dello 0,6% su base reportata e dell'1,4% su base organica rispetto all'anno precedente. La società ha registrato una significativa perdita netta GAAP di $(6,31) per azione, principalmente a causa di una rettifica per svalutazione del goodwill di 511 milioni di dollari, rispetto a $(0,16) dell'anno precedente.
Il segmento Codman Specialty Surgical (~70% dei ricavi) ha raggiunto 304,0 milioni di dollari, con una crescita dello 0,7% su base reportata, mentre Tissue Technologies (~30%) è diminuito del 4,1% a 111,6 milioni di dollari. L'azienda ha aggiornato la guidance per i ricavi dell'intero anno 2025 a 1,655-1,680 miliardi di dollari e ha mantenuto la guidance sull'utile per azione rettificato a 2,19-2,29 dollari.
Integra sta implementando un Compliance Master Plan e ha completato tutte le valutazioni dei siti produttivi, lanciando iniziative di redditività per migliorare l'efficienza nei prossimi 12-18 mesi.
Integra LifeSciences (NASDAQ: IART) reportó resultados financieros mixtos en el segundo trimestre de 2025 con ingresos de
El segmento Codman Specialty Surgical (~70% de los ingresos) alcanzó $304.0 millones, creciendo un 0,7% reportado, mientras que Tissue Technologies (~30%) disminuyó un 4,1% hasta $111.6 millones. La compañía actualizó su guía de ingresos para todo el año 2025 a $1.655-1.680 mil millones y mantuvo la guía de BPA ajustado de $2.19-2.29.
Integra está implementando un Plan Maestro de Cumplimiento y ha completado todas las evaluaciones de sitios de fabricación, mientras lanza iniciativas de rentabilidad para impulsar mejoras de eficiencia en los próximos 12-18 meses.
Integra LifeSciences (NASDAQ: IART)는 2025년 2분기 실적에서 매출 4억 1,560만 달러를 기록하며 전년 대비 보고 기준 0.6%, 유기적 기준 1.4% 소폭 감소한 혼합 실적을 발표했습니다. 회사는 주로 5억 1,100만 달러의 영업권 손상차손으로 인해 주당 $(6.31)의 GAAP 순손실을 기록했으며, 이는 전년도의 $(0.16)와 비교됩니다.
Codman Specialty Surgical 부문(~매출의 70%)은 3억 4백만 달러로 보고 기준 0.7% 성장했으며, Tissue Technologies 부문(~30%)은 4.1% 감소하여 1억 1,160만 달러를 기록했습니다. 회사는 2025년 전체 매출 가이던스를 16억 5,500만 달러~16억 8,000만 달러로 업데이트하고, 조정 주당순이익 가이던스는 2.19~2.29달러로 유지했습니다.
Integra는 컴플라이언스 마스터 플랜을 시행 중이며 모든 제조 현장 평가를 완료했으며, 향후 12~18개월 동안 효율성 향상을 위한 수익성 강화 이니셔티브를 시작했습니다.
Integra LifeSciences (NASDAQ : IART) a publié des résultats financiers mitigés pour le deuxième trimestre 2025 avec un chiffre d'affaires de 415,6 millions de dollars, enregistrant une légère baisse de 0,6 % en données publiées et de 1,4 % en organique par rapport à l'année précédente. La société a enregistré une perte nette GAAP significative de $(6,31) par action, principalement en raison d'une charge de dépréciation du goodwill de 511 millions de dollars, contre $(0,16) l'année précédente.
Le segment Codman Specialty Surgical (~70 % des revenus) a atteint 304,0 millions de dollars, en hausse de 0,7 % en données publiées, tandis que Tissue Technologies (~30 %) a diminué de 4,1 % à 111,6 millions de dollars. La société a révisé ses prévisions de chiffre d'affaires pour l'ensemble de l'année 2025 à 1,655-1,680 milliard de dollars et a maintenu ses prévisions de BPA ajusté entre 2,19 et 2,29 dollars.
Integra met en œuvre un plan directeur de conformité et a terminé toutes les évaluations des sites de production, tout en lançant des initiatives de rentabilité pour améliorer l'efficacité au cours des 12 à 18 prochains mois.
Integra LifeSciences (NASDAQ: IART) meldete gemischte Finanzergebnisse für das zweite Quartal 2025 mit Umsätzen von 415,6 Millionen US-Dollar, was einem leichten Rückgang von 0,6 % auf Berichtsbasis und 1,4 % organisch im Jahresvergleich entspricht. Das Unternehmen verzeichnete einen erheblichen GAAP-Nettogewinnverlust von $(6,31) je Aktie, hauptsächlich aufgrund einer 511 Millionen US-Dollar Goodwill-Abschreibung, verglichen mit $(0,16) im Vorjahr.
Das Segment Codman Specialty Surgical (~70 % des Umsatzes) erreichte 304,0 Millionen US-Dollar und wuchs um 0,7 % auf Berichtsbasis, während Tissue Technologies (~30 %) um 4,1 % auf 111,6 Millionen US-Dollar zurückging. Das Unternehmen aktualisierte seine Umsatzprognose für das Gesamtjahr 2025 auf 1,655-1,680 Milliarden US-Dollar und behielt die bereinigte Gewinnprognose je Aktie von 2,19-2,29 US-Dollar bei.
Integra setzt einen Compliance-Masterplan um und hat alle Produktionsstandortbewertungen abgeschlossen, während es Profitabilitätsinitiativen startet, um in den nächsten 12-18 Monaten Effizienzsteigerungen zu erzielen.
- Completed all manufacturing site baseline assessments for compliance improvement
- Achieved highest-ever production rate for Integra Skin
- Strong liquidity position of $1.14 billion
- Mid-single digit growth excluding shipping holds
- ~20% growth in Integra Skin and ~10% growth in DuraSorb products
- Q2 revenues exceeded guidance
- $511 million goodwill impairment charge recorded
- Revenue declined 0.6% reported and 1.4% organic year-over-year
- Adjusted gross margin decreased to 60.7% from 65.2% year-over-year
- GAAP net loss of $(484.1) million compared to $(12.4) million prior year
- High leverage ratio at 4.5x
- Private label sales down 5.9% due to supply delays and softer demand
Insights
Integra reports mixed Q2 results with concerning margins and a massive $511M goodwill impairment despite meeting revenue targets.
Integra's Q2 results paint a complex picture of a company in transition. While revenues of
Profitability metrics show concerning trends. Adjusted gross margin deteriorated substantially to
The balance sheet shows significant leverage with
Segment performance was mixed. Codman Specialty Surgical (
The updated full-year revenue guidance and reaffirmed EPS guidance suggest management has increasing confidence in their operational improvements and compliance remediation efforts, but the path to sustained growth remains challenging.
PRINCETON, N.J., July 31, 2025 (GLOBE NEWSWIRE) -- Integra LifeSciences Holdings Corporation (Nasdaq: IART), a leading global medical technology company, today reported financial results for the second quarter ending June 30, 2025.
Second Quarter 2025 Highlights
- Second quarter revenues exceeded guidance; adjusted earnings per diluted share (EPS) at the top end of the range
- Second quarter revenues of
$415.6 million decreased (0.6)% on a reported basis and (1.4)% on an organic basis compared to the prior year. - Second quarter GAAP earnings per diluted share of
$(6.31) , compared to$(0.16) in the prior year primarily reflecting a goodwill impairment charge of$511 million , recorded during the quarter. This charge was due to the decrease in the price per share of the Company’s common stock related to a number of factors including recent tariff changes that have created broad economic uncertainty and the impact of quality, operational, and supply issues. - Adjusted earnings per diluted share of
$0.45 , compared to$0.63 in the prior year. - Full-Year revenue guidance range updated to reflect increased visibility
“I am proud of our team’s performance and execution in the second quarter. Our strong revenue performance is a testament to our disciplined progress and the solid underlying demand trends for our portfolio of neurosurgery and tissue technology products,” said Mojdeh Poul, president and chief executive officer.
“Our transformation is underway, and I’m encouraged by the focused implementation and steady progress made against our Compliance Master Plan. Importantly, we have now completed the assessment phase at all of our manufacturing sites. Looking ahead, we are committed to advancing our remediation efforts, delivering on our commitments, and establishing the foundation of operational excellence required to position Integra for predictable and sustainable growth and profitability over the long-term.”
Second Quarter 2025 Consolidated Performance
Total reported revenues of
The Company reported GAAP gross margin of
Adjusted EBITDA for the second quarter of 2025 was
The Company reported a GAAP net loss of
Adjusted net income for the second quarter of 2025 was
Second Quarter 2025 Segment Performance
Codman Specialty Surgical (~
Total revenues were
- Sales in Neurosurgery increased
0.3% on an organic basis driven by growth in CUSA®, Aurora®, Mayfield®, DuraSeal®, Bactiseal® and CereLink® monitors, offset by existing shipping holds - Sales in Instruments declined
2.8% on an organic basis due to order timing - ENT growth was flat due to growth in AERA® and TruDi navigated disposables offset by sinus balloons and the timing of capital sales
Tissue Technologies (~
Total revenues were
- Mid-Single Digit growth in wound reconstruction offset by ship holds
- ~
20% growth in Integra Skin and ~10% growth in DuraSorb® - High-single digit growth in MicroMatrix® and Cytal®
- Sales in private label were down
5.9% due to a component supply delay and softer commercial demand experienced by a private label partner
- ~
Advancing our Priorities
Compliance Master Plan Implementation
- Completed all manufacturing site baseline assessments
- Developed remediation, resourcing, and execution plans to address assessment findings
- Providing regular updates to the FDA on our warning letter committed actions
- No related shipping holds initiated in Q2
Operational & Execution Excellence
- Achieved the highest-ever production rate for Integra Skin, returning to normal revenue levels
- Stood up Program Management Office to drive prioritization, execution, and governance discipline
- Established Supply Chain Control Tower, a centralized platform for strategic and tactical performance monitoring and improvement
Delivering on Our Financial Commitments
- Delivered Q2 revenues above, and adj. EPS at the top of, guidance range
- Continued strong demand for differentiated portfolio, with mid-single digit growth excluding shipping holds
- Launched profitability initiative to drive efficiency gains and support long-term margin expansion, with meaningful initial impact expected over the next 12 to 18 months
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
2025 Outlook
For the third quarter 2025, the Company expects reported revenues in the range of
For the full year 2025, the Company is updating its revenue guidance range to
The Company’s organic sales growth guidance for the third 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, July 31, 2025, to discuss second quarter 2025 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’s website following the call.
About Integra
At Integra LifeSciences, we are driven by our purpose of restoring patients’ lives. We innovate treatment pathways to advance patient outcomes and set new standards of surgical, neurologic, and regenerative care. We offer a comprehensive portfolio of high quality, leadership brands. For the latest news and information about Integra and its products, please 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 financial performance, including projections for revenues, expected revenue growth (both reported and organic), GAAP and adjusted net income, GAAP and adjusted earnings per diluted share, non-GAAP adjustments such as divestiture, acquisition and integration-related charges, intangible asset amortization, structural optimization charges, EU Medical Device Regulation-related charges, charges related to the voluntary global recall of all products manufactured at the Company’s facility in Boston, Massachusetts and the transition of Boston-related manufacturing operations to the Company’s Braintree, Massachusetts facility, impairment charges, and income tax expense (benefit) related to non-GAAP adjustments and other items; estimates regarding the projected impact of tariffs or other changes in trade policy on the Company's business, financial condition and results of operations; and the Company’s expectations and plans with respect to business and operational performance, strategic initiatives, capabilities, resources, product development, product availability and regulatory approvals, including expectations regarding the efficacy of the Company’s compliance master plan to improve the Company's quality systems and the Company’s profitability improvement initiative to realize expected savings and enhance operational efficiency. 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: the ongoing and possible future effects of global challenges, including macroeconomic uncertainties, inflation, supply chain disruptions, trade regulation and tariffs, duties or other measures implemented by the U.S. or other countries, geopolitical conflicts, and U.S. and global recession concerns, on the Company’s customers and on the Company’s business, financial condition, results of operations and cash flows; the Company's ability to execute its operating plan effectively; the Company’s ability to successfully integrate Acclarent and other acquired businesses; the Company’s ability to achieve sales growth in a timely fashion; the Company's ability to manufacture and ship sufficient quantities of its products to meet its customers' demands; the ability of third-party suppliers to supply us with raw materials and finished products; the Company's ability to manage its direct sales channels effectively; the sales performance of third-party distributors on whom the Company relies to generate revenue for certain products and geographic regions; the Company's ability to access and maintain relationships with customers of acquired entities and businesses; physicians' willingness to adopt and third-party payors' willingness to provide or maintain reimbursement for the Company's recently launched, planned and existing products; initiatives launched by the Company's competitors; downward pricing pressures from customers; the Company's ability to secure regulatory approval for products in development; the Company's ability to remediate quality systems violations; difficulties in implementing the Company’s compliance master plan and realizing the benefits contemplated thereby within the anticipated timeframe, or at all; difficulties or delays in obtaining and maintaining required regulatory approvals related to the transition of the manufacturing to the Company’s Braintree manufacturing facility; the possibility that costs or difficulties related to building and the operationalization of the Braintree facility or the transition of manufacturing activities from the Company’s Boston facility to the Braintree facility will be greater than expected; fluctuations in hospitals' spending for capital equipment; uncertainties inherent in the development of new products and the enhancement of existing products, including FDA approval and/or clearance and other regulatory risks, technical risks, cost overruns and delays; the Company's ability to comply with regulations regarding products of human origin and products containing materials derived from animal source; difficulties in controlling expenses, including costs to procure and manufacture the Company’s products; difficulties in implementing the Company’s profitability improvement initiative and realizing the benefits contemplated thereby within the anticipated timeframe, or at all; 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 Company's ability to leverage its existing selling organizations and administrative infrastructure; the Company's ability to increase product sales and gross margins, and control non-product costs; the Company’s ability to achieve anticipated growth rates, margins and scale and execute its strategy generally; the amount and timing of divestiture, acquisition and integration-related costs; the geographic distribution of where the Company generates its taxable income; new U.S. and foreign government laws and regulations, and changes in existing laws, regulations and enforcement guidance, which affect areas of our operations including, but not limited to, those affecting the health care industry, including the EU Medical Device Regulation; the scope, duration and effect of U.S. and international governmental, regulatory, fiscal, monetary and public health responses to any future public health crises; fluctuations in foreign currency exchange rates; the amount of our bank borrowings outstanding and other factors influencing liquidity; potential negative impacts resulting from environmental, social and governance matters; 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, 2024 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 June 30, 2025 and 2024.
The Company is providing forward-looking guidance regarding adjusted earnings per diluted share but is not providing a reconciliation to GAAP earnings per share, because certain GAAP expense items are highly variable, and management is unable to predict them with reasonable certainty and without unreasonable effort. Specifically, the financial impact and timing of divestitures, acquisitions, integrations, structural optimization and efforts to comply with the EU Medical Device Regulation are uncertain, depend on various dynamic factors and are not reasonably ascertainable at this time. These expense items 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 June 30, | |||||||
| 2025 | 2024 | ||||||
| Total revenues, net | $ | 415,605 | $ | 418,175 | |||
| Costs and expenses: | |||||||
| Cost of goods sold | 206,273 | 192,258 | |||||
| Research and development | 26,997 | 29,767 | |||||
| Selling, general and administrative | 179,890 | 195,472 | |||||
| Intangible asset amortization | 3,754 | 3,707 | |||||
| Goodwill impairment charge | 511,365 | 0 | |||||
| Total costs and expenses | 928,279 | 421,204 | |||||
| Operating Loss | (512,674 | ) | (3,029 | ) | |||
| Interest income | 4,710 | 5,058 | |||||
| Interest expense | (21,042 | ) | (18,651 | ) | |||
| Other income (expense) | (1,946 | ) | 1,437 | ||||
| Loss before income taxes | (530,952 | ) | (15,185 | ) | |||
| Income benefit | (46,879 | ) | (2,783 | ) | |||
| Net Loss | $ | (484,073 | ) | $ | (12,402 | ) | |
| Net income per share: | |||||||
| Diluted net loss per share | ) | ) | |||||
| Weighted average common shares outstanding for diluted net income per share | 76,695 | 77,409 | |||||
The following table presents revenues disaggregated by the major sources for the three months ended June 30, 2025 and 2024 (amounts in thousands):
| Three Months Ended June 30, | |||||||
| 2025 | 2024 | Change | |||||
| Neurosurgery | $ | 208,992 | $ | 205,502 | 1.7 | % | |
| Instruments(1) | 53,080 | 54,537 | (2.7 | )% | |||
| ENT(1) | 41,886 | 41,722 | 0.4 | % | |||
| Total Codman Specialty Surgical | 303,958 | 301,761 | 0.7 | % | |||
| Wound Reconstruction and Care | 84,747 | 87,695 | (3.4 | )% | |||
| Private Label | 26,900 | 28,719 | (6.3 | )% | |||
| Total Tissue Technologies | 111,647 | 116,414 | (4.1 | )% | |||
| Total reported revenues | $ | 415,605 | $ | 418,175 | (0.6 | )% | |
| Impact of changes in currency exchange rates | (3,237 | ) | — | ||||
| Total organic revenues(2) | $ | 412,368 | $ | 418,175 | (1.4 | )% | |
| (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 June 30, 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 | 4,963 | — | 4,258 | 270 | — | 435 | — | |||
| Structural Optimization charges | 5,944 | 5,187 | 1,073 | (316 | ) | — | — | — | ||
| EU Medical Device Regulation charges | 10,681 | 1,142 | 4,200 | 5,338 | — | — | — | |||
| Boston Recall/Braintree Transition | 13,630 | 13,532 | 98 | — | — | — | — | |||
| Intangible asset amortization expense | 26,795 | 23,041 | — | — | 3,754 | — | — | |||
| Estimated income tax impact from above adjustments and other items | (54,940 | ) | — | — | — | — | — | (54,940 | ) | |
| Depreciation expense | 10,955 | — | — | — | — | — | — | |||
| 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 June 30, 2024
| Item | Total Amount | COGS(a) | SG&A(b) | R&D(c) | Amort (d) | OI&E(e) | Tax(f) | ||||
| Acquisition, divestiture and integration-related charges | 18,667 | 4,865 | 14,617 | (781 | ) | — | (34 | ) | — | ||
| Structural Optimization charges | 5,095 | 4,900 | 194 | 1 | — | — | — | ||||
| EU Medical Device Regulation charges | 12,508 | 702 | 5,441 | 6,365 | — | — | — | ||||
| Boston Recall/Braintree Transition | 14,698 | 14,398 | 300 | — | — | — | — | ||||
| Intangible asset amortization expense | 25,383 | 21,676 | — | — | 3,707 | — | — | ||||
| Estimated income tax impact from above adjustments and other items | (14,942 | ) | — | — | — | — | — | (14,942 | ) | ||
| Depreciation expense | 10,399 | — | — | — | — | — | — | ||||
| 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 June 30, | |||||||
| 2025 | 2024 | ||||||
| GAAP net loss | $ | (484,073 | ) | $ | (12,402 | ) | |
| Non-GAAP adjustments: | |||||||
| Goodwill impairment charges | 511,365 | — | |||||
| Depreciation and intangible asset amortization expense | 37,750 | 35,782 | |||||
| Other (income) expense, net | 1,511 | (1,402 | ) | ||||
| Interest expense, net | 16,332 | 13,592 | |||||
| Income tax expense | (46,879 | ) | (2,783 | ) | |||
| Structural optimization charges | 5,944 | 5,095 | |||||
| EU Medical Device Regulation charges | 10,681 | 12,508 | |||||
| Boston Recall/ Braintree transition | 13,630 | 14,698 | |||||
| Acquisition, divestiture and integration-related charges | 4,963 | 18,666 | |||||
| Total of non-GAAP adjustments | 555,297 | 96,157 | |||||
| Adjusted EBITDA | $ | 71,224 | $ | 83,755 | |||
| 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 June 30, | |||||||
| 2025 | 2024 | ||||||
| GAAP net loss | $ | (484,073 | ) | $ | (12,402 | ) | |
| Non-GAAP adjustments: | |||||||
| Structural optimization charges | 5,944 | 5,095 | |||||
| Acquisition, divestiture and integration-related charges | 4,963 | 18,666 | |||||
| EU Medical Device Regulation charges | 10,681 | 12,508 | |||||
| Boston Recall/Braintree Transition | 13,630 | 14,698 | |||||
| Goodwill impairment charges | 511,365 | ||||||
| Intangible asset amortization expense | 26,795 | 25,383 | |||||
| Estimated income tax impact from adjustments and other items | (54,940 | ) | (14,942 | ) | |||
| Total of non-GAAP adjustments | 518,438 | 61,409 | |||||
| Adjusted net income | $ | 34,365 | $ | 49,007 | |||
| Adjusted diluted net income per share | $ | 0.45 | $ | 0.63 | |||
| Weighted average common shares outstanding for diluted net income per share | 76,769 | 77,449 | |||||
| CONDENSED BALANCE SHEET DATA (UNAUDITED) | ||||||
| (In thousands) | ||||||
| June 30, 2025 | December 31, 2024 | |||||
| Short term investments | $ | 35,694 | $ | 27,192 | ||
| Cash and cash equivalents | 217,914 | 246,375 | ||||
| Trade accounts receivable, net | 284,507 | 272,370 | ||||
| Inventories, net | 465,127 | 429,090 | ||||
| Current and long-term borrowing under senior credit facility | 1,156,892 | 1,121,823 | ||||
| Borrowings under securitization facility | 108,800 | 108,100 | ||||
| Convertible securities | 574,628 | 573,170 | ||||
| Stockholders' equity | $ | 1,038,661 | $ | 1,545,280 | ||
| CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED) | |||||||
| (In thousands) | |||||||
| Three Months Ended June 30, | |||||||
| 2025 | 2024 | ||||||
| Net cash (used) provided by operating activities | $ | (2,338 | ) | $ | 56,157 | ||
| Net cash used in investing activities | (57,568 | ) | (376,163 | ) | |||
| Net cash provided by financing activities | 14,238 | 264,928 | |||||
| Effect of exchange rate changes on cash and cash equivalents | 17,207 | (6,088 | ) | ||||
| Net decrease in cash and cash equivalents | $ | (28,461 | ) | $ | (61,166 | ) | |
| 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 June 30, | ||||||
| 2025 | 2024 | |||||
| Net cash provided by operating activities | $ | 8,919 | $ | 40,400 | ||
| Purchases of property and equipment | $ | (20,146 | ) | $ | (29,707 | ) |
| Free cash flow | (11,227 | ) | 10,693 | |||
| Adjusted net income(1) | $ | 34,365 | $ | 49,007 | ||
| Adjusted free cash flow conversion | (32.7 | )% | 21.8 | % | ||
| Twelve Months Ended June 30, | ||||||
| 2025 | 2024 | |||||
| Net cash provided by operating activities | $ | 70,888 | $ | 141,672 | ||
| Purchases of property and equipment | (108,311 | ) | (82,797 | ) | ||
| Free cash flow | $ | (37,423 | ) | $ | 58,875 | |
| Adjusted net income(1) | $ | 171,011 | $ | 221,594 | ||
| Adjusted free cash flow conversion | (21.9 | )% | 26.6 | % | ||
| (1) Adjusted net income for quarters ended June 30, 2025 and 2024 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) | ||||||
| June 30, 2025 | December 31, 2024 | |||||
| Short-term borrowings under senior credit facility | 38,750 | 33,906 | ||||
| Long-term borrowings under senior credit facility | 1,118,142 | 1,087,917 | ||||
| Borrowings under securitization facility | 108,800 | 108,100 | ||||
| Convertible securities | 574,628 | 573,170 | ||||
| Deferred financing costs netted in the above | 4,418 | 5,475 | ||||
| Short term investments | (35,694 | ) | (27,192 | ) | ||
| Cash & Cash Equivalents | (217,914 | ) | (246,375 | ) | ||
| Net Debt | $ | 1,591,130 | $ | 1,535,001 | ||
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 June 30, | |||||||
| 2025 | 2024 | ||||||
| Total revenues, net | $ | 415,605 | $ | 418,175 | |||
| Cost of goods sold | 206,273 | 192,258 | |||||
| Reported Gross Profit | 209,332 | 225,917 | |||||
| Structural optimization charges | 5,187 | 4,900 | |||||
| Acquisition, divestiture and integration-related charges | — | 4,865 | |||||
| Boston Recall/Braintree Transition | 13,532 | 14,398 | |||||
| EU Medical Device Regulation | 1,142 | 702 | |||||
| Intangible asset amortization expense | 23,041 | 21,676 | |||||
| Adjusted Gross Profit | $ | 252,234 | $ | 272,458 | |||
| Total Revenues | $ | 415,605 | $ | 418,175 | |||
| Adjusted Gross Margin | 60.7 | % | 65.2 | % | |||
| d) Amort. - Intangible asset amortization | |||||||
FAQ
What were Integra LifeSciences (IART) Q2 2025 earnings results?
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