DENTSPLY SIRONA Q3 sales fall 7.6% to $836M
Wellspect Healthcare posted record quarterly sales with 10.1% as-reported growth, alongside the U.S. launch of its Urinary Management System.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
DENTSPLY SIRONA Inc. reported third-quarter 2026 net sales of $836 million, down 7.6% from $904 million a year earlier. Its GAAP gross margin was 52.9%, versus 48.8% in Q3 2025; the GAAP net loss attributable to the company was $2 million, compared with a $427 million loss. Adjusted EBITDA was $146 million, down 13.3%, and its margin was 17.3% versus 18.4%; adjusted EPS was $0.29 versus $0.42 in Q3 2025.
Gross profit and adjusted EBITDA included a $39 million benefit from refining the estimate used to eliminate unrealized profit in inventory. The adjustment reduced reported net loss and increased adjusted net income by approximately $30 million; equivalent impacts are not expected in future. Operating cash flow was $32 million versus $79 million, and free cash flow was $0 million versus $40 million. Cash and cash equivalents were $195 million as of September 30, 2026.
For 2026, the company updated its outlook to approximately $3.5 billion in net sales and adjusted EPS of $1.20 to $1.30, excluding the $0.17 one-time benefit from tariff refunds.
1 point · 0 major0 major · 5 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointGAAP net loss was $2 million versus $427 million in Q3 2025.
Negative
- Moderate pointNet sales declined 7.6% to $836 million year over year.
- Moderate pointAdjusted EBITDA fell 13.3% to $146 million; margin was 17.3% versus 18.4%.
- Moderate pointAdjusted EPS fell 29.4% to $0.29 from $0.42.
- Moderate pointOperating cash flow was $32 million, versus $79 million in Q3 2025.
- Moderate pointFree cash flow was $0, versus $40 million in Q3 2025.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Net sales: $836 million
GAAP net loss attributable to DENTSPLY SIRONA: $2 million loss
Adjusted EBITDA: $146 million
+5 more
8 metrics
Net sales
$836 million
Q3 2026; down 7.6% from $904 million in Q3 2025
GAAP net loss attributable to DENTSPLY SIRONA
$2 million loss
Q3 2026; $427 million loss in Q3 2025
Adjusted EBITDA
$146 million
Q3 2026; down 13.3% from $167 million in Q3 2025
Adjusted EPS
$0.29 per share
Q3 2026; down 29.4% from $0.42 in Q3 2025
Operating cash flow
$32 million
Q3 2026; compared with $79 million in Q3 2025
Free cash flow
$0 million
Q3 2026; compared with $40 million in Q3 2025
FY2026 net sales outlook
Approximately $3.5 billion
Updated FY2026 outlook
FY2026 adjusted EPS outlook
$1.20 to $1.30
Excludes the $0.17 one-time benefit from tariff refunds
Key Terms
Adjusted EBITDA, Constant Currency, Free Cash Flow, unrealized profit in inventory, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA is computed by further excluding any remaining interest expense"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Constant Currency financial
"Constant Currency: reported net sales adjusted for the impact of foreign currency changes"
Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.
Free Cash Flow financial
"Free Cash Flow: net cash provided by operating activities minus capital expenditures"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
unrealized profit in inventory financial
"refinement of our estimate to eliminate unrealized profit in inventory"
valuation allowances financial
"adjustments for increased valuation allowances for the U.S."
A valuation allowance is an accounting reserve companies set against expected future tax benefits when they doubt those benefits will be realized. Think of it like discounting a coupon you might not be able to use: it reduces the reported value of future tax savings on the balance sheet. For investors, increases or decreases in this allowance signal management’s view of future profitability and can materially change reported earnings and equity.
Earnings Snapshot
Net sales: $836 million · Guidance included
third quarter of 2026
Net sales
$836 million
down 7.6% year over year
GAAP gross margin
52.9%
48.8% in Q3 2025
GAAP diluted loss per share
($0.01)
($2.14) in Q3 2025
Adjusted EBITDA
$146 million
down 13.3% year over year
Adjusted EPS
$0.29 per share
down 29.4% year over year
Guidance
FY2026 outlook: approximately $3.5 billion in net sales and adjusted EPS of $1.20 to $1.30, excluding the $0.17 one-time benefit from tariff refunds.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much were XRAY's third-quarter 2026 sales?
DENTSPLY SIRONA reported third-quarter 2026 net sales of $836 million, down 7.6% from $904 million in Q3 2025.
What is XRAY's 2026 sales and adjusted EPS outlook?
DENTSPLY SIRONA updated its 2026 outlook to approximately $3.5 billion in net sales and adjusted EPS of $1.20 to $1.30, excluding the $0.17 one-time benefit from tariff refunds.
What estimate adjustment affected XRAY's third-quarter results?
Refining the estimate to eliminate unrealized profit in inventory provided a $39 million benefit to gross profit and adjusted EBITDA. The adjustment reduced reported net loss and increased adjusted net income by approximately $30 million; equivalent impacts are not expected in future.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices) | (Zip Code) | |||||||||||||
(844 ) 848-0137
Registrant’s telephone number, including area code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
o
Item 2.02 Results of Operations and Financial Condition
On November 5, 2026, DENTSPLY SIRONA Inc. (the “Company”) issued a press release regarding the Company’s financial results for its third fiscal quarter ended September 30, 2026. A copy of the Company’s press release is furnished as Exhibit 99.1.
The information contained in this Current Report on Form 8-K pursuant to Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits:
| Exhibit No. | Description | |||||||
99.1 | DENTSPLY SIRONA Inc. Press release issued November 5, 2026 as referenced in Item 2.02 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL Document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
DENTSPLY SIRONA Inc.
| By: | /s/ John C. Fortson | |||||||
| John C. Fortson | ||||||||
| Executive Vice President and | ||||||||
| Chief Financial Officer | ||||||||
Date: November 5, 2026
Dentsply Sirona Reports Third Quarter 2026 Results
News Summary
•Q3 2026 net sales of $836 million
•Q3 2026 GAAP gross margin of 52.9%, GAAP diluted loss per share of ($0.01)
•Q3 2026 adjusted gross margin of 54.5%, adjusted EBITDA margin of 17.3%, adjusted EPS of $0.29
•Achieved record quarterly sales for Wellspect Healthcare, with 10.1% as-reported growth; completed the U.S. SurityTM portfolio with the launch of the SurityTM Urinary Management System
•Updated FY2026 outlook to approximately $3.5 billion in net sales and adjusted EPS of $1.20 to $1.30
Charlotte, N.C., November 5, 2026 - DENTSPLY SIRONA Inc. ("Dentsply Sirona" or the "Company") (Nasdaq: XRAY) today announced its financial results for the third quarter of 2026.
"We continued to make progress on our Return-to-Growth Action Plan in the third quarter despite challenging industry-wide conditions," said Dan Scavilla, President and Chief Executive Officer of Dentsply Sirona. "We are seeing encouraging signs of progress, including record quarterly sales for Wellspect Healthcare, progress in priority areas of implants and endodontics, and broader customer access through our expanded U.S. dealer network. Building on the investments we began in the first half, our focus is now on execution, putting our sales force, clinical education and innovation capabilities to work to drive consistent performance and sustainable growth."
Q3 2026 Summary Results (Reported)
Gross profit and adjusted EBITDA include a $39 million benefit from the refinement of our estimate to eliminate unrealized profit in inventory. The adjustment reduces the reported net loss and increases adjusted net income by approximately $30 million. This amount represents the cumulative impact of the revised estimate and equivalent impacts are not expected in future.
Gross profit and adjusted EBITDA include a $39 million benefit from the refinement of our estimate to eliminate unrealized profit in inventory. The adjustment reduces the reported net loss and increases adjusted net income by approximately $30 million. This amount represents the cumulative impact of the revised estimate and equivalent impacts are not expected in future.
| (in millions, except per share amount and percentages) | Q3 26 | Q3 25 | YoY | |||||||||||||||||
| Net Sales | $836 | $904 | (7.6%) | |||||||||||||||||
| Gross Profit | $443 | $441 | 0.3% | |||||||||||||||||
| Gross Margin | 52.9% | 48.8% | ||||||||||||||||||
| Net Loss Attributable to Dentsply Sirona | ($2) | ($427) | NM | |||||||||||||||||
Diluted Loss Per Share1 | ($0.01) | ($2.14) | NM | |||||||||||||||||
Q3 2026 Summary Results (Non-GAAP)
NM - not meaningful
| (in millions, except per share amount and percentages) | Q3 26 | Q3 25 | YoY | |||||||||||||||||
| Constant Currency Sales | (7.0%) | |||||||||||||||||||
| Adjusted EBITDA | $146 | $167 | (13.3%) | |||||||||||||||||
| Adjusted EBITDA Margin | 17.3% | 18.4% | ||||||||||||||||||
| Adjusted EPS | $0.29 | $0.42 | (29.4%) | |||||||||||||||||
NM - not meaningful
Percentages are based on actual values and may not reconcile due to rounding.
[1] Weighted-average shares outstanding used to calculate diluted loss per share for the third quarter of 2026 excludes potential dilutive common shares.
Q3 2026 Results by Region and Segment (Reported and Non-GAAP)
(in millions, except percentages)
| Percentage Change | |||||||||||||||||||||||||||||||||||||||||||||||
| Net Sales by Segment | Three Months Ended September 30, 2026 vs. 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| Americas | EMEA | APAC | |||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | As Reported1 | Constant Currency1 | As Reported | Constant Currency | As Reported | Constant Currency | As Reported | Constant Currency | ||||||||||||||||||||||||||||||||||||||
| Connected Technology Solutions | $ | 230 | $ | 259 | (11.0)% | (10.1)% | (21.6)% | (21.9)% | (5.5)% | (4.2)% | (4.7)% | (2.5)% | |||||||||||||||||||||||||||||||||||
| Essential Dental Solutions | 343 | 357 | (4.0)% | (3.6)% | (0.6)% | (0.8)% | (7.7)% | (6.5)% | (4.4)% | (4.2)% | |||||||||||||||||||||||||||||||||||||
| Orthodontic and Implant Solutions | 171 | 205 | (16.6)% | (16.2)% | (22.9)% | (23.1)% | (13.5)% | (12.3)% | (7.3)% | (7.2)% | |||||||||||||||||||||||||||||||||||||
| Wellspect Healthcare | 92 | 83 | 10.1% | 11.0% | 77.3% | 78.6% | 1.2% | 2.0% | (1.0)% | 4.1% | |||||||||||||||||||||||||||||||||||||
| Total | $ | 836 | $ | 904 | (7.6)% | (7.0)% | (9.4)% | (9.6)% | (6.7)% | (5.6)% | (5.2)% | (4.3)% | |||||||||||||||||||||||||||||||||||
| (1) Constant currency sales are a Non-GAAP measure in which the reported net sales are adjusted for the impact of foreign currency changes, which is calculated by translating current period net sales using the comparable prior period's foreign currency exchange rates. The foreign currency impact is the only reconciling item between as reported and constant currency sales. | |||||||||||||||||||||||||||||||||||||||||||||||
Cash Flow and Liquidity
Operating cash flow in the third quarter of 2026 was $32 million, compared to $79 million in the third quarter of 2025, primarily driven by unfavorable working capital. Free cash flow, a Non-GAAP measure, in the third quarter of 2026 was $0 million compared to $40 million in the third quarter of 2025. In the third quarter of 2026, the Company repurchased 1.2 million shares of its common stock for a total of approximately $13 million, resulting in a total of $25 million returned to stockholders through share repurchases in the first nine months of 2026. The Company had $195 million of cash and cash equivalents as of September 30, 2026.
2026 Outlook
The Company is updating its 2026 outlook to approximately $3.5 billion in net sales and adjusted EPS of $1.20 to $1.30, excluding the $0.17 one-time benefit from tariff refunds.
Without unreasonable effort, we are unable to present a quantitative reconciliation of our expected earnings per diluted share to expected adjusted earnings per diluted share as we are unable to predict with reasonable certainty, items which may include, but are not limited to, restructuring charges, transformation-related costs, impairment charges, certain tax adjustments, and other significant items. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our Consolidated Statements of Operations.
Conference Call/Webcast Information
Dentsply Sirona's management team will host an investor conference call and live webcast on November 5, 2026 at 4:30 p.m. ET. The live webcast and a presentation related to the call will be available on the Investors section of the Company's website at https://investor.dentsplysirona.com.
For those planning to participate on the call, please register at http://register-conf.media-server.com/register/BI087bbe14635a47a484497a4e4376efc9. A webcast replay of the conference call will be available on the Investors section of the Company's website following the call.
About Dentsply Sirona
Dentsply Sirona is the world's largest diversified manufacturer of professional dental products and technologies, with over a century of innovation and service to the dental industry and patients worldwide. Dentsply Sirona develops, manufactures, and markets a comprehensive solutions offering, including dental and oral health products as well as other consumable medical devices under a strong portfolio of world-class brands. Dentsply Sirona's innovative products provide high-quality, effective and connected solutions to advance patient care and deliver better and safer dental care. Dentsply Sirona is headquartered in Charlotte, North Carolina. The Company's shares are listed in the United States on Nasdaq under the symbol XRAY. Visit www.dentsplysirona.com for more information about Dentsply Sirona and its products.
Contact Information:
Investors:
Suzanne Hatcher
Investor Relations
Investor Relations
Investorrelations@dentsplysirona.com
Press:
Marion Par-Weixlberger
Vice President, Public Relations, Corporate Communications & Brand
Publicrelations@dentsplysirona.com
Forward-Looking Statements and Associated Risks
All statements in this Press Release that do not directly and exclusively relate to historical facts constitute "forward-looking statements." Such statements are subject to numerous assumptions, risks, uncertainties and other factors that could cause actual results to differ materially from those described in such statements, many of which are outside of our control, including those described in Part I, Item 1A, "Risk Factors" of the Company's most recent Annual Report on Form 10-K, Part II, Item 1A, "Risk Factors" of the Company's Quarterly Reports on Form 10-Q for any subsequent fiscal quarters, and any updating information or other factors which may be described in the Company's other filings with the Securities and Exchange Commission (the "SEC"). No assurance can be given that any result, expectation, belief, goal or plan set forth in any forward-looking statement can or will be achieved, and readers are cautioned not to place undue reliance on such statements which speak only as of the date they are made. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date of this Press Release or to reflect the occurrence of unanticipated events. Investors should understand it is not possible to predict or identify all such factors or risks. As such, you should not consider the risks identified in the Company's SEC filings to be a complete discussion of all potential risks or uncertainties associated with an investment in the Company.
DENTSPLY SIRONA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net sales | $ | 836 | $ | 904 | $ | 2,614 | $ | 2,719 | |||||||||||||||
| Cost of products sold | 393 | 463 | 1,251 | 1,322 | |||||||||||||||||||
| Gross profit | 443 | 441 | 1,363 | 1,397 | |||||||||||||||||||
| Selling, general, and administrative expenses | 363 | 355 | 1,078 | 1,055 | |||||||||||||||||||
| Research and development expenses | 42 | 37 | 131 | 110 | |||||||||||||||||||
| Goodwill and intangible asset impairments | 3 | 262 | 3 | 497 | |||||||||||||||||||
| Restructuring and other (income) expenses | (2) | 5 | 67 | 18 | |||||||||||||||||||
| Operating income (loss) | 37 | (218) | 84 | (283) | |||||||||||||||||||
| Other income and expenses: | |||||||||||||||||||||||
| Interest expense, net | 25 | 23 | 71 | 66 | |||||||||||||||||||
| Other income, net | (14) | (11) | (43) | (10) | |||||||||||||||||||
| Income (loss) before income taxes | 26 | (230) | 56 | (339) | |||||||||||||||||||
| Provision for income taxes | 29 | 198 | 33 | 114 | |||||||||||||||||||
| Net (loss) income | (3) | (428) | 23 | (453) | |||||||||||||||||||
| Less: Net loss attributable to noncontrolling interest | (1) | (1) | (2) | (1) | |||||||||||||||||||
| Net (loss) income attributable to Dentsply Sirona | $ | (2) | $ | (427) | $ | 25 | $ | (452) | |||||||||||||||
| (Loss) earnings per common share attributable to Dentsply Sirona: | |||||||||||||||||||||||
| Basic | $ | (0.01) | $ | (2.14) | $ | 0.12 | $ | (2.27) | |||||||||||||||
| Diluted | $ | (0.01) | $ | (2.14) | $ | 0.12 | $ | (2.27) | |||||||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||||||
| Basic | 199.2 | 199.5 | 199.6 | 199.3 | |||||||||||||||||||
| Diluted | 199.2 | 199.5 | 200.6 | 199.3 | |||||||||||||||||||
DENTSPLY SIRONA INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except share and per share amounts)
(unaudited)
| September 30, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | 195 | $ | 326 | |||||||
| Accounts and notes receivable-trade, net | 605 | 688 | |||||||||
| Inventories, net | 707 | 642 | |||||||||
| Prepaid expenses and other current assets | 471 | 367 | |||||||||
| Total Current Assets | 1,978 | 2,023 | |||||||||
| Property, plant, and equipment, net | 845 | 861 | |||||||||
| Operating lease right-of-use assets, net | 126 | 139 | |||||||||
| Identifiable intangible assets, net | 815 | 974 | |||||||||
| Goodwill | 1,136 | 1,148 | |||||||||
| Other noncurrent assets | 290 | 284 | |||||||||
| Total Assets | $ | 5,190 | $ | 5,429 | |||||||
| Liabilities and Equity | |||||||||||
| Current Liabilities: | |||||||||||
| Accounts payable | $ | 238 | $ | 300 | |||||||
| Accrued liabilities | 706 | 700 | |||||||||
| Income taxes payable | 58 | 30 | |||||||||
| Notes payable and current portion of long-term debt | 215 | 313 | |||||||||
| Total Current Liabilities | 1,217 | 1,343 | |||||||||
| Long-term debt | 1,985 | 2,015 | |||||||||
| Operating lease liabilities | 87 | 93 | |||||||||
| Deferred income taxes | 74 | 94 | |||||||||
| Other noncurrent liabilities | 473 | 544 | |||||||||
| Total Liabilities | 3,836 | 4,089 | |||||||||
| Total Equity | 1,354 | 1,340 | |||||||||
| Total Liabilities and Equity | $ | 5,190 | $ | 5,429 | |||||||
DENTSPLY SIRONA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income (loss) | $ | 23 | $ | (453) | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
| Depreciation | 110 | 104 | |||||||||
| Amortization of intangible assets | 136 | 155 | |||||||||
| Goodwill asset impairment | — | 409 | |||||||||
| Indefinite-lived intangible asset impairment | 3 | 88 | |||||||||
| Deferred income taxes | (50) | 44 | |||||||||
| Stock-based compensation expense | 25 | 25 | |||||||||
| Other non-cash expense | 3 | 13 | |||||||||
| (Gain) loss on disposal of assets | (7) | — | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts and notes receivable-trade, net | 67 | (56) | |||||||||
| Inventories, net | (78) | (61) | |||||||||
| Prepaid expenses and other current assets | (5) | (10) | |||||||||
| Other noncurrent assets | (2) | — | |||||||||
| Accounts payable | (21) | (9) | |||||||||
| Accrued liabilities | (61) | (66) | |||||||||
| Income taxes | 30 | (45) | |||||||||
| Other noncurrent liabilities | (2) | (4) | |||||||||
| Net cash provided by operating activities | 171 | 134 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Capital expenditures | (128) | (90) | |||||||||
| Cash received on derivative contracts | — | 10 | |||||||||
| Cash paid on derivative contracts | — | (9) | |||||||||
| Net investment hedge settlements | (17) | — | |||||||||
| Proceeds from sale of property, plant, and equipment | 4 | — | |||||||||
| Other investing activities | 6 | 2 | |||||||||
| Net cash used in investing activities | (135) | (87) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Cash paid for treasury stock | (25) | — | |||||||||
| Proceeds from 364-day bridge loan | — | 435 | |||||||||
| Repayment of 364-day bridge loan | — | (435) | |||||||||
| Proceeds (repayments) on short-term borrowings, net | 130 | (416) | |||||||||
| Cash dividends paid | (32) | (96) | |||||||||
| Proceeds from long-term borrowings | — | 551 | |||||||||
| Repayments on long-term borrowings | (225) | (3) | |||||||||
| Cash paid for deferred financing costs | — | (13) | |||||||||
| Other financing activities, net | (6) | (4) | |||||||||
| Net cash (used in) provided by financing activities | (158) | 19 | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | (9) | 25 | |||||||||
| Net (decrease) increase in cash and cash equivalents | (131) | 91 | |||||||||
| Cash and cash equivalents at beginning of period | 326 | 272 | |||||||||
| Cash and cash equivalents at end of period | $ | 195 | $ | 363 | |||||||
| Supplemental disclosures of cash flow information: | |||||||||||
| Interest paid, net of amounts capitalized | $ | 78 | $ | 65 | |||||||
| Non-cash investing activities: | |||||||||||
| Property, plant and equipment in accounts payable at end of period | $ | 37 | $ | 25 | |||||||
| Exchange of inventory for naming and other rights | $ | — | $ | 14 | |||||||
Supplemental Information – Reconciliation of GAAP to Non-GAAP Financial Measures
We supplement the reporting of our financial information determined under accounting principles generally accepted in the United States ("GAAP") with certain non-GAAP financial measures, including percentage sales growth in constant currency; adjusted gross profit; adjusted gross profit as a percent of net sales ("Adjusted Gross Margin"); adjusted operating income; adjusted operating income as a percent of net sales ("Adjusted Operating Margin"); adjusted earnings before interest expense, income taxes, depreciation and amortization ("Adjusted EBITDA"); Adjusted EBITDA as a percent of net sales ("Adjusted EBITDA Margin"); adjusted net income (loss); adjusted earnings (loss) per diluted share ("Adjusted EPS"); and Free Cash Flow. These non-GAAP financial measures are used by the Company to measure its performance and management believes these non-GAAP financial measures provide meaningful information to assist investors and shareholders in understanding our financial results and assessing our prospects for future performance. Management believes percentage sales growth in constant currency and the other adjusted measures described above are important indicators of our operations because they exclude items that may not be indicative of or are unrelated to our core operating results and provide a baseline for analyzing trends in our underlying businesses. Management uses these non-GAAP financial measures for reviewing the operating results of reportable business segments and analyzing potential future business trends in connection with our budget process and bases certain management incentive compensation on these non-GAAP financial measures.
The Company has defined the non-GAAP measures used by management as follows:
•Constant Currency: reported net sales adjusted for the impact of foreign currency changes, which is calculated by translating current period net sales using the comparable prior period's foreign currency exchange rates.
•Adjusted Operating Income and Margin: Adjusted operating income is computed by excluding the following items from operating income (loss) as reported in accordance with US GAAP. Adjusted operating margin is calculated by dividing adjusted operating income by net sales.
◦Business combination-related costs: costs related to consummating and integrating acquired businesses, as well as net gains and losses related to disposed businesses. Costs include the post-acquisition roll-off of fair value adjustments recorded related to business combinations, except for amortization expense of purchased intangible assets noted below.
◦Restructuring-related charges and other costs: costs related to the implementation of restructuring initiatives, including but not limited to, severance costs, facility closure costs, and lease and contract termination costs, as well as related professional service costs associated with these restructuring initiatives and global transformation activity. Other costs include gains and losses on the sale of property, legal settlements, executive separation costs, write-offs of inventory as a result of product rationalization, and changes in accounting principles recorded within the period. This category also includes costs related to investigations and associated legal cases and remediation activities, which primarily include legal, accounting and other professional service fees, as well as turnover and other employee-related costs.
◦Goodwill and intangible asset impairments: include charges related to goodwill and intangible asset impairments.
◦Amortization of purchased intangible assets: includes the periodic amortization expense related to purchased intangible assets, which are recorded at fair value.
◦Fair value and credit risk adjustments: include the non-cash mark-to-market changes in fair value associated with pension assets and obligations, the credit risk component of hedging instruments, contingent consideration from past acquisitions, and equity-method investments.
•Adjusted Gross Profit and Margin: gross profit excluding the impact of any of the above adjustments that affect either net sales or cost of sales. Adjusted gross margin is calculated by dividing adjusted gross profit by net sales.
•Adjusted Net Income (Loss): net income (loss) as reported in accordance with US GAAP, adjusted to exclude the items identified above and the related income tax impacts of those
items, as well as the tax effects of certain significant and discrete tax adjustments, including benefits and provisions related to changes in realization of deferred tax assets and tax credit carryforwards, as well as other events that affect comparability and are not core to our underlying operational performance.
•Adjusted EBITDA and Margin: in addition to the adjustments described above in arriving at adjusted net income, adjusted EBITDA is computed by further excluding any remaining interest expense, net, income tax expense, depreciation and amortization. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by net sales.
•Adjusted Earnings (Loss) Per Diluted Share: computed by dividing adjusted earnings (loss) attributable to Dentsply Sirona stockholders by the diluted weighted average number of common shares outstanding.
•Free Cash Flow: net cash provided by operating activities minus capital expenditures during the same period.
Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These adjusted financial measures should not be considered in isolation or as a substitute for the most directly comparable GAAP financial measures. These non-GAAP financial measures are an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the reconciliations to corresponding GAAP financial measures below, provide a more complete understanding of our business. We strongly encourage investors and shareholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.
The following reconciles the non-GAAP financial measures discussed above with the most directly comparable GAAP financial measures. The weighted-average diluted shares outstanding used in the calculation of adjusted net earnings per diluted share are the same as those used in the calculation of reported net earnings per diluted share for the respective period. The weighted-average diluted shares outstanding used in the calculation of adjusted net loss per diluted share excludes potential dilutive common shares.
DENTSPLY SIRONA INC. AND SUBSIDIARIES
(in millions, except per share amounts and percentages)
(unaudited)
Beginning in fiscal year 2026, the Company updated its definition of Adjusted Net Income (Loss), a non-GAAP financial measure, to include adjustments for certain significant and discrete tax items, including benefits and provisions related to changes in the realization of deferred tax assets and tax credit carryforwards, as well as other tax‑related items that affect comparability and are not considered part of the Company's core operational performance. Prior-period information below has been updated to conform to current period presentation. A reconciliation of selected items as reported in the Condensed Consolidated Statements of Operations to adjusted Non-GAAP financial statements items are as follows:
| Three Months Ended September 30, 2026 | Gross Profit | Operating Income | Provision for Income Taxes | Net (Loss) Income Attributable to Dentsply Sirona | Diluted (Loss) Earnings per Share | |||||||||||||||||||||||||||
| Reported | $ | 443 | $ | 37 | $ | 29 | $ | (2) | $ | (0.01) | ||||||||||||||||||||||
| Reported percent net sales | 52.9 | % | 4.4 | % | ||||||||||||||||||||||||||||
| Non-GAAP Adjustments: | ||||||||||||||||||||||||||||||||
| Amortization of Purchased Intangible Assets | 12 | 46 | 11 | 35 | 0.17 | |||||||||||||||||||||||||||
| Restructuring-Related Charges and Other Costs (a) | 1 | 10 | 2 | 8 | 0.04 | |||||||||||||||||||||||||||
| Goodwill and Intangible Asset Impairments | — | 3 | 1 | 2 | 0.01 | |||||||||||||||||||||||||||
| Business Combination-Related Costs | — | — | — | — | — | |||||||||||||||||||||||||||
| Fair Value and Credit Risk Adjustments | — | (1) | — | (1) | — | |||||||||||||||||||||||||||
| Income Tax-Related Adjustments (b) | — | — | (17) | 17 | 0.08 | |||||||||||||||||||||||||||
| Adjusted | $ | 456 | $ | 95 | $ | 26 | $ | 59 | $ | 0.29 | ||||||||||||||||||||||
| Adjusted percent net sales | 54.5 | % | 11.5 | % | ||||||||||||||||||||||||||||
| Weighted average common shares outstanding used in calculating diluted GAAP net loss per common share | 199.2 | |||||||||||||||||||||||||||||||
| Weighted average common shares outstanding used in calculating diluted Non-GAAP net income per common share | 200.2 | |||||||||||||||||||||||||||||||
(a) Restructuring‑Related Charges and Other Costs includes costs from restructuring actions and the new global ERP system, partially offset by a $9 change in estimate for the 2026 restructuring plan. These amounts are on a pre-tax basis. | ||||||||||||||||||||||||||||||||
| (b) Income Tax-Related Adjustments includes adjustments for increased valuation allowances for the U.S. of $12, Luxembourg of $3, and Switzerland of $2 and decreased valuation allowances for Germany of $5, along with other various tax adjustments. | ||||||||||||||||||||||||||||||||
Percentages are based on actual values and may not reconcile due to rounding.
| Three Months Ended September 30, 2025 | Gross Profit | Operating (Loss) Income | Provision for Income Taxes | Net (Loss) Income Attributable to Dentsply Sirona | Diluted (Loss) Earnings per Share | |||||||||||||||||||||||||||
| Reported | $ | 441 | $ | (218) | $ | 198 | $ | (427) | $ | (2.14) | ||||||||||||||||||||||
| Reported percent net sales | 48.8 | % | (24.0 | %) | ||||||||||||||||||||||||||||
| Non-GAAP Adjustments: | ||||||||||||||||||||||||||||||||
| Amortization of Purchased Intangible Assets | 33 | 56 | 15 | 41 | 0.21 | |||||||||||||||||||||||||||
| Restructuring-Related Charges and Other Costs (a) | 1 | 17 | (3) | 20 | 0.10 | |||||||||||||||||||||||||||
| Goodwill and Intangible Asset Impairments | — | 262 | (1) | 263 | 1.31 | |||||||||||||||||||||||||||
| Business Combination-Related Costs | — | 2 | 1 | 1 | 0.01 | |||||||||||||||||||||||||||
| Income Tax-Related Adjustments (b) | — | — | (186) | 186 | 0.93 | |||||||||||||||||||||||||||
| Adjusted | $ | 475 | $ | 119 | $ | 24 | $ | 84 | $ | 0.42 | ||||||||||||||||||||||
| Adjusted percent net sales | 52.6 | % | 13.2 | % | ||||||||||||||||||||||||||||
| Weighted average common shares outstanding used in calculating diluted GAAP net loss per common share | 199.5 | |||||||||||||||||||||||||||||||
| Weighted average common shares outstanding used in calculating diluted Non-GAAP net income per common share | 200.3 | |||||||||||||||||||||||||||||||
| (a) Restructuring‑Related Charges and Other Costs includes $5 in costs for the new global ERP system, $4 in costs from various restructuring actions related to employee severance, $4 in executive separation costs, and various other costs. Amounts are on a pre-tax basis. | ||||||||||||||||||||||||||||||||
| (b) Income Tax-Related Adjustments includes adjustments for decreased valuation allowances for Luxembourg of $3, along with increased valuation allowances for Germany of $5 and Switzerland of $3, and other various tax adjustments. | ||||||||||||||||||||||||||||||||
Percentages are based on actual values and may not reconcile due to rounding.
DENTSPLY SIRONA INC. AND SUBSIDIARIES
(in millions, except per share amounts and percentages)
(unaudited)
Reconciliations of reported net loss attributable to Dentsply Sirona to adjusted EBITDA and margin are as follows:
| Three Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Net loss attributable to Dentsply Sirona | $ | (2) | $ | (427) | ||||||||||
| Interest expense, net | 25 | 23 | ||||||||||||
| Provision for income taxes | 29 | 198 | ||||||||||||
Depreciation(1) | 36 | 36 | ||||||||||||
| Amortization of intangible assets | 46 | 56 | ||||||||||||
| Restructuring-related charges and other costs | 10 | 17 | ||||||||||||
| Goodwill and intangible asset impairments | 3 | 262 | ||||||||||||
| Business combination-related costs and fair value adjustments | — | 2 | ||||||||||||
| Fair value and credit risk adjustments | (1) | — | ||||||||||||
| Adjusted EBITDA | $ | 146 | $ | 167 | ||||||||||
| Net sales | $ | 836 | $ | 904 | ||||||||||
| Adjusted EBITDA margin | 17.3 | % | 18.4 | % | ||||||||||
(1) Excludes those depreciation-related amounts which were included as part of the business combination-related adjustments and Restructuring-related charges and other costs.
Percentages are based on actual values and may not reconcile due to rounding.
A reconciliation of free cash flow for the three months ended September 30, 2026 and 2025 is as follows:
| Three Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Net cash provided by operating activities | $ | 32 | $ | 79 | ||||||||||
| Capital expenditures | (32) | (39) | ||||||||||||
| Free cash flow | $ | — | $ | 40 | ||||||||||