

First Quarter 2025 Highlights
- First quarter revenues of
$382.7 million increased 3.7% on a reported basis and decreased 3.5% on an organic basis compared to the prior year. - First quarter GAAP earnings per diluted share of
$(0.33) , compared to$(0.04) in the prior year; adjusted earnings per diluted share of$0.41 , compared to$0.55 in the prior year. - Reaffirming full-year 2025 revenue guidance range and updating adjusted EPS guidance to account for the impact related to the new tariffs.
“We remain laser focused on strengthening our quality systems, improving supply reliability, and driving operational excellence. There remains significant work ahead, but we are continuing to put the processes and people in place to execute on our comprehensive Compliance Master Plan and build a foundation for sustainable performance. With the launch of our Transformation and Program Management Office and the addition of key leadership, including in global operations, we are driving improved accountability and execution across the enterprise to deliver meaningful long-term value for patients, customers, and shareholders,” said
“As I reflect on my first quarter at Integra and continue spending time across our operations and with employees, I remain inspired by the deep commitment of our teams to our customers and patients. I am also encouraged by the positive feedback I consistently receive from customers about the impact of our solutions and the value of our portfolio. I’m equally optimistic about the long-term growth and earnings potential of our differentiated offerings.”
First Quarter 2025 Consolidated Performance
Total reported revenues of
The Company reported GAAP gross margin of 50.8%, compared to 56.1% in the first quarter of 2024. Adjusted gross margin was 62.2%, compared to 64.4% in the prior year.
Adjusted EBITDA for the first quarter of 2025 was
The Company reported a GAAP net loss of
Adjusted net income for the first quarter of 2025 was
First Quarter 2025 Segment Performance
Codman Specialty Surgical (~70% of Revenues)
Total revenues were
- Sales in Neurosurgery declined 4.7% on an organic basis driven by shipping holds across several product lines
- Sales in Instruments grew 15.1% on an organic basis due to strong demand and favorable prior year comparator
- ENT reported revenue growth driven by the
Acclarent acquisition
Tissue Technologies (~30% of Revenues)
Total revenues were
- Low double-digit growth in DuraSorb®, MicroMatrix® and Cytal®
- Low double-digit decline in Integra Skin due to production timing
- Sales in private label were down 13.3% due to a component supply delay
Advancing our Priorities
- Advancing the Compliance Master Plan and investments in supply reliability
- Expansion of international portfolio
- Integra Skin production pacing to normal revenue levels for the second quarter
- Appointed
Valerie Young as CVP, global operations and supply chain - Appointed
Rick Maveus as SVP of the newly established Transformation and Program Management Office
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 second quarter 2025, the Company expects reported revenues in the range of
For the full year 2025, the Company is reaffirming its revenue guidance ranges of
The Company’s organic sales growth guidance for the second quarter and the full year excludes acquisitions and divestitures, as well as the effects of foreign currency. 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
At
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
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); and (v) 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
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
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
Investor Relations Contact:
(609) 772-7736
chris.ward@integralife.com
Media Contact:
(609) 208-8121
laurene.isip@integralife.com
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||
(In thousands, except per share amounts) | ||||||||
Three Months Ended | ||||||||
2025 | 2024 | |||||||
Total revenues, net | $ | 382,653 | $ | 368,872 | ||||
Costs and expenses: | ||||||||
Cost of goods sold | 188,221 | 162,038 | ||||||
Research and development | 24,728 | 26,965 | ||||||
Selling, general and administrative | 181,497 | 165,798 | ||||||
Intangible asset amortization | 3,704 | 10,107 | ||||||
Total costs and expenses | 398,150 | 364,908 | ||||||
Operating income (loss) | (15,497 | ) | 3,964 | |||||
Interest income | 4,420 | 5,040 | ||||||
Interest expense | (18,815 | ) | (13,624 | ) | ||||
Other expense, net | (144 | ) | (610 | ) | ||||
Loss before income taxes | (30,036 | ) | (5,230 | ) | ||||
Income tax (benefit) | (4,743 | ) | (1,949 | ) | ||||
Net Loss | (25,293 | ) | $ | (3,281 | ) | |||
Net income per share: | ||||||||
Diluted net loss per share | $ | (0.33 | ) | $ | (0.04 | ) | ||
Weighted average common shares outstanding for diluted net income per share | 76,463 | 77,735 | ||||||
The following table presents revenues disaggregated by the major sources for the three months ended
Three Months Ended | ||||||||
2025 | 2024 | Change | ||||||
Neurosurgery | $ | 190,912 | 202,268 | (5.6 | )% | |||
Instruments(1) | 50,950 | 44,373 | 14.8 | % | ||||
ENT(1) | 38,802 | 9,793 | 296.2 | % | ||||
Total Codman Specialty Surgical | 280,664 | 256,434 | 9.4 | % | ||||
Wound Reconstruction and Care | 74,779 | 80,877 | (7.5 | )% | ||||
Private Label | 27,210 | 31,561 | (13.8 | )% | ||||
Total Tissue Technologies | 101,989 | 112,438 | (9.3 | )% | ||||
Total reported revenues | $ | 382,653 | $ | 368,872 | 3.7 | % | ||
Impact of changes in currency exchange rates | 2,236 | — | ||||||
Less contribution of revenues from acquisitions | (29,092 | ) | — | |||||
Total organic revenues(2) | $ | 355,798 | $ | 368,872 | (3.5 | )% | ||
(1) Prior period revenues included within our instruments business have been reclassified under the ENT business.
(2) 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 | 6,224 | 671 | 5,824 | (736 | ) | — | 464 | — | ||
Structural Optimization charges | 10,663 | 4,276 | 6,436 | (50 | ) | — | — | — | ||
EU Medical Device Regulation charges | 10,944 | 1,375 | 4,807 | 4,761 | — | — | — | |||
Boston Recall/Braintree Transition | 14,810 | 14,386 | 424 | — | — | — | — | |||
Intangible asset amortization expense | 26,473 | 22,769 | — | — | 3,704 | — | — | |||
Estimated income tax impact from above adjustments and other items | (12,167 | ) | — | — | — | — | — | (12,167 | ) | |
Depreciation expense | 10,456 | — | — | — | — | — | — | |||
a) COGS - Cost of goods sold
b) SG&A - Selling, general and administrative
c) R&D - Research & development
d) Amort. - Intangible asset amortization
e) OI&E - Other income & expense
f) Tax - Income tax expense (benefit)
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 | 4,723 | 50 | 4,802 | (83 | ) | — | (46 | ) | — | ||
Structural Optimization charges | 4,440 | 3,320 | 1,118 | 2 | — | — | — | ||||
EU Medical Device Regulation charges | 12,023 | 1,441 | 4,657 | 5,925 | — | — | — | ||||
Boston Recall/Braintree Transition | 9,044 | 8,210 | 834 | — | — | — | — | ||||
Intangible asset amortization expense | 27,698 | 17,591 | — | — | 10,107 | — | — | ||||
Estimated income tax impact from above adjustments and other items | (11,696 | ) | — | — | — | — | — | (11,696 | ) | ||
Depreciation expense | 9,899 | — | — | — | — | — | — | ||||
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 | ||||||||
2025 | 2024 | |||||||
GAAP net loss | $ | (25,293 | ) | $ | (3,281 | ) | ||
Non-GAAP adjustments: | ||||||||
Depreciation and intangible asset amortization expense | 36,929 | 37,597 | ||||||
Other (income) expense, net | (320 | ) | 656 | |||||
Interest expense, net | 14,394 | 8,584 | ||||||
Income tax expense | (4,743 | ) | (1,949 | ) | ||||
Structural optimization charges | 10,663 | 4,440 | ||||||
EU Medical Device Regulation charges | 10,944 | 12,023 | ||||||
Boston Recall/ | 14,810 | 9,044 | ||||||
Acquisition, divestiture and integration-related charges | 6,224 | 4,723 | ||||||
Total of non-GAAP adjustments | 88,902 | 75,118 | ||||||
Adjusted EBITDA | $ | 63,609 | $ | 71,837 | ||||
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 | ||||||||
2025 | 2024 | |||||||
GAAP net loss | $ | (25,293 | ) | $ | (3,281 | ) | ||
Non-GAAP adjustments: | ||||||||
Structural optimization charges | 10,663 | 4,440 | ||||||
Acquisition, divestiture and integration-related charges | 6,224 | 4,723 | ||||||
EU Medical Device Regulation charges | 10,944 | 12,023 | ||||||
Boston Recall/Braintree Transition | 14,810 | 9,044 | ||||||
Intangible asset amortization expense | 26,473 | 27,698 | ||||||
Estimated income tax impact from adjustments and other items | (12,167 | ) | (11,696 | ) | ||||
Total of non-GAAP adjustments | 56,947 | 46,231 | ||||||
Adjusted net income | $ | 31,654 | $ | 42,950 | ||||
Adjusted diluted net income per share | $ | 0.41 | $ | 0.55 | ||||
Weighted average common shares outstanding for diluted net income per share | 76,586 | 77,958 |
CONDENSED BALANCE SHEET DATA (UNAUDITED) | ||||||
(In thousands) | ||||||
2025 | 2024 | |||||
Short term investments | $ | 34,191 | $ | 27,192 | ||
Cash and cash equivalents | 239,104 | 246,375 | ||||
Trade accounts receivable, net | 252,446 | 272,370 | ||||
Inventories, net | 445,418 | 429,090 | ||||
Current and long-term borrowing under senior credit facility | 1,167,291 | 1,121,823 | ||||
Borrowings under securitization facility | 102,100 | 108,100 | ||||
Convertible securities | 573,899 | 573,170 | ||||
Stockholders' equity | $ | 1,524,139 | $ | 1,545,280 | ||
CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED) | ||||||||
(In thousands) | ||||||||
Three Months Ended | ||||||||
2025 | 2024 | |||||||
Net cash (used) provided by operating activities | $ | (11,257 | ) | $ | 15,756 | |||
Net cash used in investing activities | (35,920 | ) | (53,965 | ) | ||||
Net cash provided by (used by) by financing activities | 35,377 | 358,676 | ||||||
Effect of exchange rate changes on cash and cash equivalents | 4,529 | (4,963 | ) | |||||
Net increase (decrease) in cash and cash equivalents | $ | (7,271 | ) | $ | 315,504 | |||
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 | |||||||
2025 | 2024 | ||||||
Net cash (used) provided by operating activities | $ | (11,257 | ) | $ | 15,756 | ||
Purchases of property and equipment | $ | (28,920 | ) | $ | (15,465 | ) | |
Free cash flow | (40,177 | ) | 291 | ||||
Adjusted net income(1) | $ | 31,654 | $ | 42,950 | |||
Adjusted free cash flow conversion | (126.9 | )% | 0.7 | % | |||
Twelve Months Ended | |||||||
2025 | 2024 | ||||||
Net cash provided by operating activities | $ | 102,368 | $ | 129,552 | |||
Purchases of property and equipment | (117,872 | ) | (68,737 | ) | |||
Free cash flow | $ | (15,504 | ) | $ | 60,815 | ||
Adjusted net income(1) | $ | 185,652 | $ | 230,004 | |||
Adjusted free cash flow conversion | (8.4 | )% | 26.4 | % | |||
(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) | |||||||
2025 | 2024 | ||||||
Short-term borrowings under senior credit facility | 38,750 | 33,906 | |||||
Long-term borrowings under senior credit facility | 1,128,541 | 1,087,917 | |||||
Borrowings under securitization facility | 102,100 | 108,100 | |||||
Convertible securities | 573,899 | 573,170 | |||||
Deferred financing costs netted in the above | 4,436 | 5,475 | |||||
Short term investments | (34,191 | ) | (27,192 | ) | |||
Cash & Cash Equivalents | (239,104 | ) | (246,375 | ) | |||
Net Debt | $ | 1,574,431 | $ | 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 | ||||||||
2025 | 2024 | |||||||
Total revenues, net | $ | 382,653 | $ | 368,872 | ||||
Cost of goods sold | 188,221 | 162,038 | ||||||
Reported Gross Profit | 194,432 | 206,834 | ||||||
Structural optimization charges | 4,276 | 3,320 | ||||||
Acquisition, divestiture and integration-related charges | 671 | 50 | ||||||
Boston Recall/Braintree Transition | 14,386 | 8,210 | ||||||
EU Medical Device Regulation | 1,375 | 1,441 | ||||||
Intangible asset amortization expense | 22,769 | 17,591 | ||||||
Adjusted Gross Profit | $ | 237,909 | $ | 237,446 | ||||
Total Revenues | $ | 382,653 | $ | 368,872 | ||||
Adjusted Gross Margin | 62.2 | % | 64.4 | % |
