Avanos Medical, Inc. Announces Fourth Quarter and Full-Year 2025 Results

ALPHARETTA, Ga., Feb. 24, 2026 /PRNewswire/ -- Avanos Medical, Inc. (NYSE: AVNS) today reported fourth quarter and full-year 2025 results.

"I'm very pleased with our fourth quarter and full-year results, which demonstrate meaningful progress on our strategic priorities," said David Pacitti, Avanos' chief executive officer. Pacitti continued, "Our organic growth remains healthy and positions us well for 2026. Our tariff mitigation efforts are on track, and we're beginning to see the impact of our cost management initiatives. I'm proud of our team's focus and commitment."

Fourth Quarter 2025 Highlights

Specialty Nutrition Systems Segment

Pain Management and Recovery Segment

Full-Year 2025 Highlights

Specialty Nutrition Systems Segment

Pain Management and Recovery Segment

Non-Cash Goodwill Impairment

During the second quarter, due to downward pressure on our market capitalization, we assessed goodwill for impairment and recorded an impairment charge of $77.0 million associated with the PM&R segment.

Cash Flow and Balance Sheet

Cash from operations less capital expenditures, or free cash flow, for the fourth quarter of 2025 was $21.3 million, compared to $53.1 million a year ago. For 2025, free cash flow was $43.1 million, compared to $82.9 million in the prior year.

At year-end 2025, the Company's cash balance was $89.8 million compared to $107.7 million at year-end 2024. Total debt at the end of the fourth quarter totaled $100.5 million, consisting of borrowings on the Company's term loan facility.

Sale of HA Product Line

On July 31, 2025, we announced the divestiture of our HA product line to Channel-Markers Medical, LLC, a privately held company. This transaction aligns with our ongoing transformation, which is focused on advancing our strategic SNS and PM&R segments.

2026 Outlook

We expect 2026 net sales to be between $700 million and $720 million, and adjusted diluted earnings per share are expected to be between $0.90 and $1.10.

Non-GAAP Financial Measures

This press release and the accompanying tables include the following financial measures that have not been calculated in accordance with accounting principles generally accepted in the U.S., or GAAP, and are therefore referred to as non-GAAP financial measures:

These non-GAAP financial measures exclude the following items, as applicable, for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures:

The Company provides these non-GAAP financial measures as supplemental information to our GAAP financial measures. Management and the Company's Board of Directors use net sales on a constant currency basis, adjusted net income, adjusted diluted earnings per share, adjusted operating profit, adjusted EBITDA, and free cash flow to (a) evaluate the Company's historical and prospective financial performance and its performance relative to its competitors, (b) allocate resources and (c) measure the operational performance of the Company's business units and their managers. Management also believes that the use of an adjusted effective tax rate provides improved insight into the tax effects of the Company's ongoing business operations.

Additionally, the Compensation Committee of the Company's Board of Directors will use certain of the non-GAAP financial measures when setting and assessing achievement of incentive compensation goals. These goals are based, in part, on the Company's net sales on a constant currency basis and adjusted EBITDA, which will be determined by excluding certain items that are used in calculating these non-GAAP financial measures.

Our competitors may define these non-GAAP financial measures differently, and as a result, our measure of these non-GAAP financial measures may not be directly comparable to those of other companies. Items excluded from these non-GAAP financial measures are significant components in understanding and assessing financial performance. These non-GAAP financial measures are supplemental measures of operating performance that do not represent, and should not be considered in isolation or as an alternative to, or substitute for, the financial statement data presented in our consolidated financial statements as indicators of financial performance. These non-GAAP financial measures have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. We compensate for these limitations by relying primarily on our GAAP results and using these non-GAAP financial measures as supplemental information.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the attached financial tables.

Conference Call Webcast

Avanos Medical, Inc. will host a conference call today at 9 a.m. ET. To instantly join the conference by phone, use the following link to register close to the start time: https://emportal.ink/46QTVgQ. After registering, the system will call you and automatically connect you to the conference call. Alternatively, you may join the call by dialing 1-646-357-8785 or 1-800-836-8184 in the United States. A simultaneous webcast of the call and presentation will be accessible via the Investors section of the Avanos Medical website, https://avanos.investorroom.com. A replay of the call will be available at noon ET today by calling 1-646-517-4150 or 1-888-660-6345 in the United States and entering passcode 71930#. A webcast of the call will also be archived in the Investors section on the Avanos website.

About Avanos Medical, Inc.

Avanos Medical (NYSE: AVNS) is a medical device company focused on delivering clinically superior breakthrough solutions that will help patients get back to the things that matter. Headquartered in Alpharetta, Georgia, Avanos is committed to creating the next generation of innovative healthcare solutions which will address our most important healthcare needs, such as reducing the use of opioids while helping patients move from surgery to recovery. Avanos develops, manufactures and markets its recognized brands in more than 90 countries. For more information, visit www.avanos.com and follow Avanos Medical on Twitter (@AvanosMedical), LinkedIn and Facebook.

Forward-Looking Statements

This press release contains information that includes or is based on "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the use of words such as "may", "believe", "will", "expect", "project", "estimate", "anticipate", "plan", or "continue" and similar expressions, among others. Forward-looking statements are based on the current plans and expectations of management and are subject to various risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in such statements. Such factors include, but are not limited to: weakening of economic conditions that could adversely affect the level of demand for our products; pricing pressures generally, including cost-containment measures that could adversely affect the price of or demand for our products; shortages in drugs used in our Surgical Pain and Recovery products or other disruptions in our supply chain; the ongoing conflicts between Russia and Ukraine and in the Middle East; the impact of tariffs imposed to date; new or increased tariffs or other trade restrictions; our ability to successfully execute on or achieve the expected benefits of the transformation initiative or our divestiture, acquisition or merger transactions; inflationary pressures; rising interest rates; financial conditions affecting the banking system and the potential threats to solvency of commercial banks; changes in foreign exchange markets; legislative and regulatory actions; unanticipated issues arising in connection with clinical studies and otherwise that affect U.S. Food and Drug Administration approval of new products; changes in reimbursement levels or reimbursement coverage from third-party payors; product liability claims; the impact of investigative and legal proceedings and compliance risks; the impact of the federal legislation to reform the U.S. healthcare system; changes in financial markets; and changes in the competitive environment. The information contained in this press release speaks only as of the date of this release, and we undertake no obligation to update forward-looking statements, except as may be required by the securities laws. Additional information concerning these and other factors that may impact future results is contained in our filings with the U.S. Securities and Exchange Commission, including our most recent Form 10-K and Quarterly Reports on Form 10-Q.

AVANOS MEDICAL, INC.

CONDENSED CONSOLIDATED INCOME STATEMENTS

(unaudited)

(in millions, except per share amounts)

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

Net Sales

$ 180.9

$ 179.6

$ 701.2

$ 687.8

Cost of products sold

94.9

81.6

347.3

306.5

Gross Profit

86.0

98.0

353.9

381.3

Research and development expenses

6.1

5.7

23.3

26.2

Selling and general expenses

78.8

79.7

315.6

318.5

Goodwill and intangibles impairment

—

436.7

77.0

436.7

Other (income) expense, net

(1.4)

(5.6)

(0.4)

(3.9)

Operating Income (Loss)

2.5

(418.5)

(61.6)

(396.2)

Interest income

0.6

0.8

3.2

5.1

Interest expense

(1.9)

(2.8)

(7.8)

(12.2)

Income (Loss) Before Income Taxes

1.2

(420.5)

(66.2)

(403.3)

Income tax (provision) benefit

(2.5)

23.5

(6.7)

17.0

Loss from Continuing Operations

(1.3)

(397.0)

(72.9)

(386.3)

Loss from discontinued operations, net of tax

—

(0.3)

—

(5.8)

Net Loss

$ (1.3)

$ (397.3)

$ (72.9)

$ (392.1)

Interest expense, net

1.3

2.0

4.6

7.1

Income tax benefit (provision)

2.5

(23.4)

6.7

(18.9)

Depreciation and amortization

9.9

11.1

38.9

45.5

EBITDA

$ 12.4

$ (407.6)

$ (22.7)

$ (358.4)

Loss Per Share

Basic

Continuing operations

$ (0.03)

$ (8.63)

$ (1.57)

$ (8.40)

Discontinued operations

$ —

$ (0.01)

$ —

$ (0.13)

Basic Loss Per Share

$ (0.03)

$ (8.64)

$ (1.57)

$ (8.53)

Diluted

Continuing operations

$ (0.03)

$ (8.63)

$ (1.57)

$ (8.40)

Discontinued operations

$ —

$ (0.01)

$ —

$ (0.13)

Diluted Loss Per Share

$ (0.03)

$ (8.64)

$ (1.57)

$ (8.53)

Common Shares Outstanding

Basic

46.4

46.0

46.3

46.0

Diluted

46.4

46.0

46.3

46.0

AVANOS MEDICAL, INC.

NON-GAAP RECONCILIATIONS

(unaudited)

(in millions, except per share amounts)

Three Months Ended December 31, 2025

As reported

Acquisition and

Integration (a)

Post-RH Divestiture

Restructuring

Intangibles

Amortization

Tax Effects

As Adjusted

Non-GAAP

Net Sales

$ 180.9

$ —

$ 180.9

Cost of products sold

94.9

—

(9.0)

(1.6)

—

84.3

Gross Profit

86.0

—

9.0

1.6

—

96.6

Gross Profit Margin

47.5 %

53.4 %

Research and development expenses

6.1

—

(0.5)

—

5.6

Selling and general expenses

78.8

(0.6)

(4.5)

(2.9)

—

70.8

SG&A as a percentage of revenue

43.6 %

39.1 %

Other (income) expense, net

(1.4)

(0.5)

—

(2.4)

Operating Income

2.5

1.1

14.5

4.5

—

22.6

Interest income

0.6

—

0.6

Interest expense

(1.9)

—

(1.9)

Income Before Income Taxes

1.2

1.1

14.5

4.5

—

21.3

Income tax provision

(2.5)

—

(5.4)

(7.9)

Effective Tax Rate

(208.3) %

(37.1) %

Net (Loss) Income

$ (1.3)

$ 1.1

$ 14.5

$ 4.5

$ (5.4)

$ 13.4

Diluted (loss) earnings per share

$ (0.03)

$ 0.29

____________________________

(a)

In the year ended December 31, 2025, $0.5 million in "Other (income) expense, net" is related to contingent consideration expense.

AVANOS MEDICAL, INC.

NON-GAAP RECONCILIATIONS

(unaudited)

(in millions, except per share amounts)

Three Months Ended December 31, 2024

As reported

Acquisition

Integration

Restructuring

Transform.

Post-RH

Divestiture

Transition

Post-RH

Divestiture

Restructuring

Goodwill &

Intangibles

Impairment

EU MDR

Compliance

Intangibles

Amortization

Tax Effects

As Adjusted

Non-GAAP

Net Sales

$ 179.6

$ —

$ 179.6

Cost of products sold

81.6

—

(1.3)

(0.4)

(2.1)

—

(3.6)

—

74.2

Gross Profit

98.0

—

1.3

0.4

2.1

—

3.6

—

105.4

Gross Profit Margin

54.6 %

58.7 %

Research and development

5.7

—

5.7

Selling and general

79.7

(0.1)

0.4

(0.2)

(0.4)

—

(1.8)

(2.8)

—

74.8

SG&A as a percentage of revenue

44.4 %

41.6 %

Goodwill and intangibles impairment

436.7

—

(436.7)

—

Other (income) expense, net

(5.6)

—

6.9

(0.3)

—

1.0

Operating (Loss) Income

(418.5)

0.1

(6.0)

0.9

2.5

436.7

1.8

6.4

—

23.9

Interest income

0.8

—

0.8

Interest expense

(2.8)

—

(2.8)

(Loss) Income Before Income Taxes

(420.5)

0.1

(6.0)

0.9

2.5

436.7

1.8

6.4

—

21.9

Income tax benefit (provision)

23.5

—

(25.4)

(1.9)

Effective tax rate

(5.6) %

(8.7) %

Net (Loss) Income from Continuing Operations

(397.0)

0.1

(6.0)

0.9

2.5

436.7

1.8

6.4

(25.4)

20.0

Loss from Discontinued Operations, net of tax

(0.3)

—

(0.3)

Net (Loss) Income

$ (397.3)

$ 0.1

$ (6.0)

$ 0.9

$ 2.5

$ 436.7

$ 1.8

$ 6.4

$ (25.4)

$ 19.7

Diluted (loss) earnings per share:

Continuing Operations

$ (8.63)

$ 0.43

Discontinued Operations

$ (0.01)

Diluted (loss) earnings per share

$ (8.64)

$ 0.42

AVANOS MEDICAL, INC.

NON-GAAP RECONCILIATIONS

(unaudited)

(in millions, except per share amounts)

Year Ended December 31, 2025

As reported

Acquisition and

Integration

Post-RH

Divestiture

Restructuring

Goodwill and

Intangibles

Impairment

Litigation and

Legal

Intangibles

Amortization

Tax effects

As Adjusted

Non-GAAP

Net Sales

$ 701.2

$ —

$ 701.2

Cost of products sold

347.3

—

(19.5)

—

(9.5)

—

318.3

Gross Profit

353.9

—

19.5

—

9.5

—

382.9

Gross Profit Margin

50.5 %

54.6 %

Research and development expenses

23.3

—

(0.5)

—

22.8

Selling and general expenses

315.6

(1.0)

(10.2)

—

(9.7)

—

294.7

SG&A as a percentage of Net Sales

45.0 %

42.0 %

Goodwill and intangibles impairment

77.0

—

(77.0)

—

Other (income) expense, net

(0.4)

(0.5)

(2.2)

—

1.4

—

(1.7)

Operating (Loss) Income

(61.6)

1.5

32.4

77.0

(1.4)

19.2

—

67.1

Interest income

3.2

—

3.2

Interest expense

(7.8)

—

(7.8)

(Loss) Income Before Income Taxes

(66.2)

1.5

32.4

77.0

(1.4)

19.2

—

62.5

Income tax provision

(6.7)

—

(12.4)

(19.1)

Effective tax rate

10.1 %

(30.6) %

Net (Loss) Income

$ (72.9)

$ 1.5

$ 32.4

$ 77.0

$ (1.4)

$ 19.2

$ (12.4)

$ 43.4

Diluted (loss) earnings per share

$ (1.57)

$ 0.94

AVANOS MEDICAL, INC.

NON-GAAP RECONCILIATIONS

(unaudited)

(in millions, except per share amounts)

Year Ended December 31, 2024

As reported

Acquisition

and

Integration

Restructuring

and

Transform.

Post-RH

Divestiture

Transition

Post-RH

Divestiture

Restructuring

Goodwill and

intangibles

impairment

EU MDR

compliance

Intangibles

amortization

Tax effects of

adjusting

items

As Adjusted

Non-GAAP

Net Sales

$ 687.8

$ —

$ 687.8

Cost of products sold

306.5

(0.1)

(3.0)

(1.8)

(5.1)

—

(0.2)

(14.3)

—

282.0

Gross Profit

381.3

0.1

3.0

1.8

5.1

—

0.2

14.3

—

405.8

Gross profit margin

55.4 %

59.0 %

Research and development expenses

26.2

(0.1)

0.2

—

26.3

Selling and general expenses

318.5

(1.4)

(3.0)

(0.8)

(3.8)

—

(6.0)

(10.9)

—

292.6

SG&A as a percentage of net sales

46.3 %

42.5 %

Goodwill and intangibles impairment

436.7

—

(436.7)

—

Other (income) expense, net

(3.9)

(2.6)

6.6

(0.5)

—

(0.4)

Operating (Loss) Income

(396.2)

4.2

(0.8)

3.1

8.9

436.7

6.2

25.2

—

87.3

Interest income

5.1

—

5.1

Interest expense

(12.2)

—

(12.2)

(Loss) Income Before Income Taxes

(403.3)

4.2

(0.8)

3.1

8.9

436.7

6.2

25.2

—

80.2

Income tax benefit (provision)

17.0

—

(34.6)

(17.6)

Effective tax rate

(4.2) %

(21.9) %

Net (Loss) Income from Continuing Operations

(386.3)

4.2

(0.8)

3.1

8.9

436.7

6.2

25.2

(34.6)

62.6

Loss from Discontinued Operations, net of tax

(5.8)

—

(5.8)

Net (Loss) Income

$ (392.1)

$ 4.2

$ (0.8)

$ 3.1

$ 8.9

$ 436.7

$ 6.2

$ 25.2

$ (34.6)

$ 56.8

Diluted (loss) earnings per share:

Continuing Operations

$ (8.40)

$ 1.35

Discontinued Operations

$ (0.13)

Diluted (loss) earnings per share

$ (8.53)

$ 1.22

AVANOS MEDICAL, INC.

NON-GAAP RECONCILIATIONS

(unaudited)

(in millions, except per share amounts)

EBITDA

Three Months Ended

December 31, 2025

Three Months Ended December 31, 2024

Continuing

Operations

Discontinued Operations

Total

Net loss

$ (1.3)

$ (397.0)

$ (0.3)

$ (397.3)

Interest expense, net

1.3

2.0

—

2.0

Income tax benefit (provision)

2.5

(23.5)

0.1

(23.4)

Depreciation

5.4

4.7

—

4.7

Amortization

4.5

6.4

—

6.4

EBITDA

12.4

(407.4)

(0.2)

(407.6)

Acquisition and integration-related charges

1.1

0.1

—

0.1

Restructuring and transformation charges

—

(6.0)

—

(6.0)

Post-RH Divestiture transition charges

—

0.9

—

0.9

Post-RH Divestiture restructuring

14.5

2.5

—

2.5

Goodwill and intangibles impairment

—

436.7

—

436.7

EU MDR Compliance

—

1.8

—

1.8

Adjusted EBITDA

$ 28.0

$ 28.6

$ (0.2)

$ 28.4

EBITDA

Year Ended

December 31, 2025

Year Ended December 31, 2024

Continuing

Operations

Disc.

Operations

Total

Net loss income

$ (72.9)

$ (386.3)

$ (5.8)

$ (392.1)

Interest expense, net

4.6

7.1

—

7.1

Income tax benefit (provision)

6.7

(17.0)

(1.9)

(18.9)

Depreciation

19.7

20.3

—

20.3

Amortization

19.2

25.2

—

25.2

EBITDA

(22.7)

(350.7)

(7.7)

(358.4)

Acquisition and integration-related charges

1.5

4.2

—

4.2

Restructuring and transformation charges

—

(0.8)

—

(0.8)

Post-RH Divestiture transition charges

—

3.1

—

3.1

Post-RH Divestiture restructuring

32.4

8.9

—

8.9

Goodwill and intangibles impairment

77.0

436.7

—

436.7

EU MDR Compliance

—

6.2

—

6.2

Litigation and legal

(1.4)

—

Adjusted EBITDA

$ 86.8

$ 107.6

$ (7.7)

$ 99.9

AVANOS MEDICAL, INC.

NON-GAAP RECONCILIATIONS

(unaudited)

(in millions, except per share amounts)

Free Cash Flow

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

Cash provided by operating activities

$ 28.2

$ 57.9

$ 74.7

$ 100.7

Capital expenditures

(6.9)

(4.8)

(31.6)

(17.8)

Free Cash Flow

$ 21.3

$ 53.1

$ 43.1

$ 82.9

2026 OUTLOOK

Estimated Range

Diluted earnings per share (GAAP)

$ 0.48

$ 0.73

Intangibles amortization

0.28

0.26

Restructuring and transformation charges

0.08

0.06

Other

0.06

0.05

Adjusted diluted earnings per share (non-GAAP)

$ 0.90

$ 1.10

AVANOS MEDICAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in millions)

As of December 31,

2025

2024

ASSETS

Current Assets

Cash and cash equivalents

$ 89.8

$ 107.7

Accounts receivable, net of allowances

103.8

132.8

Inventories

148.0

138.8

Prepaid expenses and other current assets

13.8

14.1

Total Current Assets

355.4

393.4

Property, Plant and Equipment, net

113.4

110.7

Operating Lease Right of Use Assets

27.6

34.1

Goodwill

394.9

455.6

Other Intangible Assets, net

117.8

112.3

Deferred Tax Assets

33.1

24.9

Other Assets

31.5

23.2

TOTAL ASSETS

$ 1,073.7

$ 1,154.2

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

Current portion of long-term debt

$ 10.2

$ 9.4

Current portion of operating lease obligation

8.2

10.9

Trade accounts payable

55.5

54.3

Accrued expenses

91.3

Total Current Liabilities

165.2

165.9

Long-Term Debt

90.3

125.3

Operating Lease Obligation

20.4

24.6

Deferred Tax Liabilities

6.1

5.5

Other Long-Term Liabilities

13.5

4.4

TOTAL LIABILITIES

295.5

325.7

Stockholders' Equity

778.2

828.5

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$ 1,073.7

$ 1,154.2

AVANOS MEDICAL, INC.

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(unaudited)

(in millions)

Three Months Ended

December 31,

Year Ended December 31,

2025

2024

2025

2024

Operating Activities

Net loss

$ (1.3)

$ (397.3)

$ (72.9)

$ (392.1)

Depreciation and amortization

9.9

11.1

38.9

45.5

Goodwill and intangibles impairment

—

436.7

77.0

436.7

Net loss on asset dispositions

3.6

0.8

9.3

1.2

Changes in operating assets and liabilities

24.5

45.0

20.2

35.0

Deferred income taxes and other

(8.5)

(38.4)

2.2

(25.6)

Cash Provided by Operating Activities

28.2

57.9

74.7

100.7

Investing Activities

Capital expenditures

(6.9)

(4.8)

(31.6)

(17.8)

Proceeds from the sale of assets

—

4.0

—

Proceeds from RH divestiture post-closing settlement

—

2.1

Acquisition of assets and businesses, net of cash acquired

0.3

—

(28.0)

—

Investments in non-affiliates

(0.2)

(2.8)

(5.0)

(11.8)

Cash Used in Investing Activities

(6.8)

(7.6)

(60.6)

(27.5)

Financing Activities

Secured debt repayments

(2.4)

(2.3)

(9.4)

(8.6)

Revolving credit facility proceeds

—

20.0

Revolving credit facility repayments

—

(25.0)

(45.0)

Purchase of treasury stock

(0.3)

(0.1)

(3.3)

(12.8)

Proceeds from the exercise of stock options

—

0.7

1.1

Payment of contingent consideration liabilities

—

(3.8)

Cash Used in Financing Activities

(2.7)

(27.4)

(37.0)

(49.1)

Effect of Exchange Rate Changes on Cash and Cash Equivalents

0.6

(4.2)

5.0

(4.1)

Increase (Decrease) in Cash and Cash Equivalents

19.3

18.7

(17.9)

20.0

Cash and Cash Equivalents - Beginning of Period

70.5

89.0

107.7

87.7

Cash and Cash Equivalents - End of Period

$ 89.8

$ 107.7

$ 89.8

$ 107.7

AVANOS MEDICAL, INC.

SELECTED BUSINESS SEGMENT DATA

(unaudited)

(in millions)

Three Months Ended

December 31,

Year Ended December 31,

2025

2024

Change

2025

2024

Change

Specialty Nutrition Systems:

Enteral feeding

$ 83.0

$ 75.0

10.7 %

$ 314.7

$ 289.7

8.6 %

Neonate solutions

32.1

30.9

3.9 %

118.2

106.7

10.8 %

Total Specialty Nutrition Systems

115.1

105.9

8.7 %

432.9

396.4

9.2 %

Pain Management and Recovery:

Surgical pain and recovery

24.7

26.7

(7.5) %

98.8

108.0

(8.5) %

Radiofrequency ablation

36.9

34.1

8.2 %

139.0

126.2

10.1 %

Total Pain Management and Recovery

61.6

60.8

1.3 %

237.8

234.2

1.5 %

Corporate and Other

4.2

12.9

(67.4) %

30.5

57.2

(46.7) %

Total Net Sales

$ 180.9

$ 179.6

0.7 %

$ 701.2

$ 687.8

1.9 %

Operating Income (Loss)

Specialty Nutrition Systems

20.5

25.0

(18.0) %

82.6

80.8

2.2 %

Pain Management and Recovery

5.2

3.9

33.3 %

9.2

2.7

N.M.

Corporate and Other (a)

(23.2)

(447.4)

N.M.

(153.4)

(479.7)

N.M.

Total Operating Income (Loss)

$ 2.5

$ (418.5)

N.M.

$ (61.6)

$ (396.2)

N.M.

Net Sales - percentage change - QTD

Total

Volume (a)

Pricing/Mix

Currency

Other (b)

Specialty Nutrition Systems

8.7 %

7.9 %

0.5 %

0.8 %

(0.5) %

Pain Management and Recovery

1.3 %

1.0 %

0.2 %

(0.1) %

Corporate and Other

(67.4) %

5.4 %

— %

(72.8) %

Net Sales - percentage change - YTD

Total

Volume (a)

Pricing/Mix

Currency

Other (b)

Specialty Nutrition Systems

9.2 %

9.0 %

0.4 %

0.5 %

(0.7) %

Pain Management and Recovery

1.5 %

1.9 %

0.3 %

0.2 %

(0.9) %

Corporate and Other

(46.7) %

(7.0) %

(9.5) %

— %

(30.2) %

______________________________

N.M.: Not Meaningful

(a)

Corporate and Other operating loss for the year ended December 31, 2025 includes $77.0 million of goodwill impairment associated with our PM&R segment. Corporate and Other operating loss for the three months and year ended December 31, 2024 includes $436.7 million of goodwill and intangibles impairment.

(b)

Other includes the effects of our withdrawal from certain revenue streams that did not meet our return criteria and rounding.

SOURCE Avanos Medical