Third Quarter 2026 Highlights
- Third quarter revenues of
$411.2 million increased 2.3% on a reported basis and 2.5% on an organic basis compared to the prior year. Results included an approximate$7 million revenue impact related to flood damage at the Company’sCincinnati facility. - Third quarter GAAP earnings per diluted share of
$0.19 , compared to$(0.07) in the prior year. - Adjusted earnings per diluted share of
$0.59 , compared to$0.54 in the prior year. - Generated operating cash flow of
$96.0 million and reduced the consolidated total leverage ratio to 3.8x. - Subsequent to quarter-end, completed a
$2.1 billion debt refinancing that extended debt maturities and enhanced financial flexibility. - 2026 full-year revenue guidance of
$1.634 billion to$1.654 billion and adjusted earnings per share guidance of$2.30 to$2.40 , consistent with the outlook provided onOctober 2, 2026 .
"Our third quarter performance reflected mixed results across our portfolio, with stronger performance in Specialty Surgery partially offset by a
"Our updated outlook reflects both the recovery timeline in
Third Quarter 2026 Consolidated Performance
Total reported revenues of
The Company reported GAAP gross margin of 51.0%, compared to 51.5% in the third quarter of 2025. Adjusted gross margin was 61.1%, compared to 62.9% in the prior year.
Adjusted EBITDA for the third quarter of 2026 was
The Company reported GAAP net income of
Adjusted net income for the third quarter of 2026 was
Third Quarter 2026 Segment Performance
Specialty Surgery (~70% of Revenues)
Total revenues were
- Sales in Neuro increased 6.5% on an organic basis primarily driven by growth in CereLink®, Certas® Plus, Bactiseal®, DuraSeal® and recovery in cranial perforators.
- Sales in Instruments declined (0.9%) on an organic basis due to order timing.
- ENT sales declined (1.1%), largely due to a low-single digit decline in sinus balloons.
Tissue Reconstruction (~30% of Revenues)
Total revenues were
- Low-single digit decline in wound reconstruction, with strong growth in DuraSorb® and PriMatrix®, offset by declines in MicroMatrix® and Integra Skin.
- Beginning this quarter, we are referring to our Private Label business as Corporate Partnerships, a name that better reflects the nature of these customer relationships. Corporate Partnerships, was approximately flat compared to the third quarter of last year.
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
Debt Refinancing and Enhanced Financial Flexibility
On
The Company used the proceeds from the refinancing to repay its existing credit facilities and pay related fees and expenses. The transaction extended the Company’s debt maturity profile, enhanced financial flexibility, and supports the Company's continued focus on cash generation and deleveraging. Additional information regarding the refinancing is available in the Company’s filings with the Securities and Exchange Commission.
Related to the refinancing, the amended debt covenants provide additional near-term covenant capacity by temporarily increasing the Company’s maximum allowable net leverage ratio from its current level followed by scheduled step-downs to 4.25x during 2027. Under the previous covenants the step down for 2027 was to 4.0x. The Company expects the increase in its effective interest rate to be near the high end of the previously communicated 100- to 200-basis-point range.
2026 Revenue and Adjusted Earnings Per Share Guidance
For the fourth quarter of 2026, the Company expects reported revenues in the range of
For the full year 2026, the Company expects revenues in the range of
The updated fourth quarter and full-year outlook reflects the expected revenue impact of the
Conference Call and Presentation Available Online
Integra has scheduled a conference call for
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
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
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 transition of
The Company has included reconciliations of GAAP revenues to organic revenues, GAAP net income to adjusted EBITDA, and adjusted net income, GAAP gross margin to adjusted gross margin, and GAAP earnings per diluted share to adjusted earnings per diluted share all for the quarters ended
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
Investor Relations Contact:
(609) 772-7736
chris.ward@integralife.com
Media Contact:
(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 | ||||||||
| 2026 | 2025 | |||||||
| Total revenue, net | $ | 411,182 | $ | 402,062 | ||||
| Costs and expenses: | ||||||||
| Cost of goods sold | 201,316 | 195,071 | ||||||
| Research and development | 21,897 | 22,456 | ||||||
| Selling, general and administrative | 165,311 | 169,046 | ||||||
| Intangible asset amortization | 3,758 | 3,728 | ||||||
| — | — | |||||||
| Total costs and expenses | 392,282 | 390,301 | ||||||
| Operating income (loss) | 18,900 | 11,761 | ||||||
| Interest income | 5,002 | 4,982 | ||||||
| Interest expense | (22,961 | ) | (22,725 | ) | ||||
| Other income (expense), net | 14,723 | (842 | ) | |||||
| Income (loss) before income taxes | 15,664 | (6,824 | ) | |||||
| Provision (benefit) for income taxes | 812 | (1,420 | ) | |||||
| Net income (loss) | $ | 14,852 | $ | (5,404 | ) | |||
| Net income (loss) per share | ||||||||
| Diluted | $ | 0.19 | $ | (0.07 | ) | |||
| Weighted average common shares outstanding | 78,577 | 76,753 | ||||||
| The following table presents revenues disaggregated by the major sources for the three months ended | ||||||
| Three Months Ended | ||||||
| 2026 | 2025 | Change | ||||
| Neurosurgery | $ | 214,097 | $ | 201,563 | 6.2% | |
| Instruments | 49,662 | 50,151 | (1.0)% | |||
| ENT | 40,361 | 40,869 | (1.2)% | |||
| Total Specialty Surgical | 304,120 | 292,583 | 3.9% | |||
| Wound Reconstruction Solutions | 81,529 | 83,988 | (2.9)% | |||
| Corporate Partnerships | 25,533 | 25,491 | 0.2% | |||
| Total Tissue Reconstruction | 107,062 | 109,479 | (2.2)% | |||
| Total Reported Revenues | $ | 411,182 | $ | 402,062 | 2.3% | |
| Impact of changes in currency exchange rates | 810 | — | ||||
| Total organic revenues(1) | $ | 411,992 | $ | 402,062 | 2.5% | |
(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 | |||||||||||
| Item | Total Amount | COGS(a) | SG&A(b) | R&D(c) | Amort (d) | OI&E(e) | Tax(f) | ||||
| Acquisition, divestiture and integration-related charges | (3,026 | ) | 82 | 2,211 | (1,322 | ) | — | (3,997 | ) | — | |
| Structural Optimization charges | 5,742 | 3,486 | 1,322 | 935 | — | — | — | ||||
| EU Medical Device Regulation charges | 2,556 | 297 | 760 | 1,499 | — | — | — | ||||
| Braintree Transition | 8,772 | 8,770 | 1 | — | — | — | — | ||||
| Cincinnati Flood | 782 | 5,709 | — | — | — | (4,927 | ) | — | |||
| Intangible asset amortization expense | 26,850 | 23,091 | — | — | 3,758 | — | — | ||||
| Estimated income tax impact from above adjustments and other items | (10,083 | ) | — | — | — | — | — | (10,083 | ) | ||
| Depreciation expense | 10,287 | — | — | — | — | — | — | ||||
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 | |||||||||||
| Item | Total Amount | COGS(a) | SG&A(b) | R&D(c) | Amort (d) | OI&E(e) | Tax(f) | ||||
| Acquisition, divestiture and integration-related charges | (6,588 | ) | 177 | (6,182 | ) | (1,029 | ) | — | 445 | — | |
| Structural Optimization charges | 11,052 | 8,413 | 2,786 | (146 | ) | — | — | — | |||
| EU Medical Device Regulation charges | 10,554 | 808 | 5,396 | 4,350 | — | — | — | ||||
| Braintree Transition | 13,957 | 13,447 | 510 | — | — | — | — | ||||
| Intangible asset amortization expense | 26,873 | 23,145 | — | — | 3,728 | — | |||||
| Estimated income tax impact from above adjustments and other items | (8,823 | ) | — | — | — | — | — | (8,823 | ) | ||
| Depreciation expense | 11,289 | — | — | — | — | — | — | ||||
a) COGS - Cost of goods sol
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 | ||||||||
| 2026 | 2025 | |||||||
| GAAP net income (loss) | $ | 14,852 | $ | (5,404 | ) | |||
| Non-GAAP adjustments: | ||||||||
| Depreciation and intangible asset amortization expense | 37,137 | 38,162 | ||||||
| Other (income) expense, net | (5,545 | ) | 842 | |||||
| Interest expense, net | 17,706 | 17,298 | ||||||
| Income tax expense | 812 | (1,420 | ) | |||||
| Structural optimization charges | 5,742 | 11,052 | ||||||
| EU Medical Device Regulation charges | 2,556 | 10,554 | ||||||
| Braintree Transition | 8,772 | 13,957 | ||||||
| Cincinnati Flood | 782 | — | ||||||
| Acquisition, divestiture and integration-related charges | (3,026 | ) | (6,588 | ) | ||||
| Total of non-GAAP adjustments | 64,936 | 83,857 | ||||||
| Adjusted EBITDA | $ | 79,787 | $ | 78,453 | ||||
| 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 | ||||||||
| 2026 | 2025 | |||||||
| GAAP net income (loss) | $ | 14,852 | $ | (5,404 | ) | |||
| Non-GAAP adjustments: | ||||||||
| Structural optimization charges | 5,742 | 11,052 | ||||||
| Acquisition, divestiture and integration-related charges | (3,026 | ) | (6,588 | ) | ||||
| EU Medical Device Regulation charges | 2,556 | 10,554 | ||||||
| Braintree Transition | 8,772 | 13,957 | ||||||
| Cincinnati Flood | 782 | — | ||||||
| Intangible asset amortization expense | 26,850 | 26,873 | ||||||
| Estimated income tax impact from adjustments and other items | (10,083 | ) | (8,823 | ) | ||||
| Total of non-GAAP adjustments | 31,592 | 47,025 | ||||||
| Adjusted net income | $ | 46,444 | $ | 41,621 | ||||
| Adjusted diluted net income per share | $ | 0.59 | 0.54 | |||||
| Weighted average common shares outstanding for diluted net income per share | 78,577 | 76,850 | ||||||
| CONDENSED BALANCE SHEET DATA (UNAUDITED) | ||||||
| (In thousands) | ||||||
2026 | 2025 | |||||
| Short term investments | $ | 59,669 | $ | 28,693 | ||
| Cash and cash equivalents | 252,261 | 235,048 | ||||
| Trade accounts receivable, net | 248,994 | 278,849 | ||||
| Inventories, net | 464,454 | 492,735 | ||||
| Current and long-term borrowing under senior credit facility | 1,745,388 | 1,768,306 | ||||
| Borrowings under securitization facility | 81,200 | 87,800 | ||||
| Convertible securities | — | — | ||||
| Stockholders' equity | $ | 1,066,617 | $ | 1,043,463 | ||
| CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED) | ||||||||
| (In thousands) | ||||||||
| Nine Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Net cash provided by operating activities | $ | 128,582 | $ | 38,568 | ||||
| Net cash (used in) investing activities | (68,377 | ) | (73,156 | ) | ||||
| Net cash (used in) provided by financing activities | (38,809 | ) | 3,993 | |||||
| Effect of exchange rate changes on cash and cash equivalents | (4,183 | ) | 16,406 | |||||
| Net increase (decrease) in cash and cash equivalents | $ | 17,213 | $ | (14,189 | ) | |||
| 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 | |||||||
| 2026 | 2025 | ||||||
| Net cash provided by operating activities | $ | 95,977 | $ | 40,907 | |||
| Purchases of property and equipment | (10,246 | ) | (15,156 | ) | |||
| Free cash flow | $ | 85,731 | $ | 25,751 | |||
| Adjusted net income(1) | $ | 46,444 | $ | 41,621 | |||
| Adjusted free cash flow conversion | 184.6 | % | 61.9 | % | |||
| Twelve Months Ended | |||||||
| 2026 | 2025 | ||||||
| Net cash provided by operating activities | $ | 140,397 | $ | 89,315 | |||
| Purchases of property and equipment | (54,615 | ) | (93,821 | ) | |||
| Free cash flow | $ | 85,782 | $ | (4,506 | ) | ||
| Adjusted net income(1) | $ | 195,456 | $ | 180,896 | |||
| Adjusted free cash flow conversion | 43.9 | % | (2.5) % | ||||
(1) Adjusted net income for quarters ended
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) | |||||||
2026 | 2025 | ||||||
| Short-term borrowings under senior credit facility | $ | 48,438 | $ | 38,750 | |||
| Long-term borrowings under senior credit facility | 1,696,950 | 1,729,556 | |||||
| Borrowings under securitization facility | 81,200 | 87,800 | |||||
| Convertible securities | — | — | |||||
| Deferred financing costs netted in the above | 2,112 | 3,257 | |||||
| Short term investments | (59,669 | ) | (28,693 | ) | |||
| Cash & Cash Equivalents | (252,261 | ) | (235,048 | ) | |||
| Net Debt | $ | 1,516,770 | $ | 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 | ||||||||
| 2026 | 2025 | |||||||
| Total revenues, net | $ | 411,182 | $ | 402,062 | ||||
| Cost of goods sold | 201,316 | 195,071 | ||||||
| Reported Gross Profit | 209,866 | 206,991 | ||||||
| Cincinnati Flood | 5,709 | — | ||||||
| Structural optimization charges | 3,486 | 8,413 | ||||||
| Acquisition, divestiture and integration-related charges | 82 | 177 | ||||||
| Braintree Transition | 8,770 | 13,447 | ||||||
| EU Medical Device Regulation | 297 | 808 | ||||||
| Intangible asset amortization expense | 23,091 | 23,145 | ||||||
| Adjusted Gross Profit | $ | 251,302 | $ | 252,981 | ||||
| Total Revenues | $ | 411,182 | $ | 402,062 | ||||
| Adjusted Gross Margin | 61.1 | % | 62.9 | % | ||||
