CONMED Corporation Announces Third Quarter 2025 Financial Results

LARGO, Fla.--( BUSINESS WIRE)--CONMED Corporation (NYSE: CNMD) today announced financial results for the third quarter ended September 30, 2025.

Third Quarter 2025 Highlights

"We are pleased with our third quarter performance, which reflects continued progress in strengthening our supply chain and strong execution across our core growth platforms,” commented Patrick J. Beyer, CONMED’s President and Chief Executive Officer. “We are building on this momentum in the fourth quarter and beyond, supported by our portfolio of best-in-class clinical solutions, operational discipline, and commitment to innovation.”

2025 Outlook

Based on current foreign currency exchange rates, the Company continues to expect revenue currency headwinds to be immaterial. As a result of the Company’s foreign currency expectations and its third quarter performance, full-year reported revenue is now expected to be between $1.365 billion and $1.372 billion, compared to the prior guidance range of between $1.356 billion and $1.378 billion.

The Company now expects full-year adjusted diluted net earnings per share (2) in the range of $4.48 to $4.53, with foreign currency estimated to be a headwind of approximately 10 cents. This is compared to its prior range of $4.40 to $4.55, with foreign currency then estimated to be a headwind of approximately 10 cents.

This updated guidance includes the effects of recent tariff announcements, which the Company estimates would result in a negative impact to EPS of approximately $0.07 in the fourth quarter of 2025.

Share Repurchase Authorization and Suspension of Dividend Payments

Effective October 31, 2025, CONMED’s Board of Directors authorized a $150.0 million share repurchase program (the “Modified Program”), which modified its prior $200.0 million share repurchase program (the “Prior Program”), under which $37.4 million had remained available for repurchases prior to the establishment of the Modified Program. With the decision to extend the share repurchase program, the Board of Directors suspended the Company’s quarterly cash dividend. The Company expects to repurchase at least $25.0 million in shares annually beginning in 2026.

Supplemental Financial Disclosures

(1) A reconciliation of reported diluted net earnings per share to adjusted diluted net earnings per share, a non-GAAP financial measure, appears below.

(2) Information reconciling forward-looking adjusted diluted net earnings per share to the comparable GAAP financial measures is unavailable to the company without unreasonable effort, as discussed below.

Conference Call

The Company’s management will host a conference call today at 4:30 p.m. ET to discuss its third quarter 2025 results.

To participate in the conference call via telephone, please click here to pre-register and obtain the dial-in number and passcode.

This conference call will also be webcast and can be accessed from the “Investors” section of CONMED's website at www.conmed.com. The webcast replay of the call will be available at the same site approximately one hour after the end of the call.

Consolidated Condensed Statements of Income

(in thousands except per share amounts, unaudited)

Three Months Ended

Nine Months Ended

September 30,

2025

2024

2025

2024

Net sales

337,926

316,701

1,001,526

961,071

Cost of sales

171,807

137,706

469,336

426,383

Gross profit

166,119

178,995

532,190

534,688

% of sales

49.2

56.5

53.1

55.6

Selling & administrative expense

140,339

99,730

425,207

345,611

Research & development expense

13,901

13,558

40,985

41,250

Income from operations

11,879

65,707

65,998

147,827

% of sales

3.5

20.7

6.6

15.4

Interest expense

7,606

9,252

23,716

28,440

Other expense

418

Income before income taxes

4,273

56,455

41,864

119,387

Provision for income taxes

1,414

7,471

11,548

20,719

Net income

2,859

48,984

30,316

98,668

Basic EPS

0.09

1.59

0.98

3.20

Diluted EPS

0.09

1.57

0.97

3.17

Basic shares

30,955

30,856

31,027

30,815

Diluted shares

31,050

31,112

31,145

31,148

Sales Summary

(in millions, unaudited)

Three Months Ended September 30,

% Change

Domestic

International

2025

2024

As Reported

Impact of Foreign Currency

Constant Currency

As Reported

Impact of Foreign Currency

Constant Currency

Orthopedic Surgery

138.2

130.5

5.9

-0.6

5.3

5.5

6.1

-0.9

5.2

General Surgery

199.7

186.2

7.3

-0.4

6.9

6.0

10.4

-1.2

9.2

337.9

316.7

6.7

-0.4

6.3

5.9

7.8

-1.0

6.8

Single-use Products

289.2

270.8

6.8

-0.5

6.3

4.7

9.9

-1.1

8.8

Capital Products

48.7

45.9

6.3

-0.3

6.0

15.3

-1.6

-0.6

-2.2

337.9

316.7

6.7

-0.4

6.3

5.9

7.8

-1.0

6.8

Domestic

194.0

183.2

5.9

0.0

5.9

International

143.9

133.5

7.8

-1.0

6.8

337.9

316.7

6.7

-0.4

6.3

Nine Months Ended September 30,

% Change

Domestic

International

2025

2024

As Reported

Impact of Foreign Currency

Constant Currency

As Reported

Impact of Foreign Currency

Constant Currency

Orthopedic Surgery

417.2

405.0

3.0

0.3

3.3

0.8

4.4

0.5

4.9

General Surgery

584.3

556.1

5.1

-0.1

5.0

5.7

3.6

-0.1

3.5

1,001.5

961.1

4.2

0.1

4.3

4.1

0.2

4.3

Single-use Products

863.2

814.8

5.9

0.1

6.0

5.0

7.3

0.2

7.5

Capital Products

138.3

146.3

-5.5

0.2

-5.3

-0.9

-9.3

0.3

-9.0

1,001.5

961.1

4.2

0.1

4.3

4.1

0.2

4.3

Domestic

568.3

545.0

4.3

0.0

4.3

International

433.2

416.1

4.1

0.2

4.3

1,001.5

961.1

4.2

0.1

4.3

Reconciliation of Reported Net Income to Adjusted Net Income

(in thousands, except per share amounts, unaudited)

Three Months Ended September 30, 2025

Gross Profit

Selling & Administrative Expense

Operating Income

Interest Expense

Other Expense

Tax Expense

Effective Tax Rate

Net Income

Diluted EPS

As reported

166,119

140,339

11,879

7,606

1,414

33.1

2,859

0.09

% of sales

49.2

41.5

3.5

Product rationalization costs (1)

19,653

4,870

14,783

Operational optimization consulting fees (2)

3,729

(5,516

)

9,245

2,291

6,954

Contingent consideration fair value adjustments (3)

(1,341

)

1,341

332

1,009

Legal matters (4)

(319

)

319

240

189,501

133,163

42,437

7,606

8,986

25,845

Adjusted gross profit %

56.1

Amortization (5)

1,500

(7,233

)

8,733

(1,276

)

2,438

7,571

As adjusted

125,930

51,170

6,330

11,424

25.5

33,416

1.08

% of sales

37.3

15.1

Three Months Ended September 30, 2024

Gross Profit

Selling & Administrative Expense

Operating Income

Interest Expense

Other Expense

Tax Expense

Effective Tax Rate

Net Income

Diluted EPS

As reported

178,995

99,730

65,707

9,252

7,471

13.2

48,984

1.57

% of sales

56.5

31.5

20.7

Contingent consideration fair value adjustments (3)

27,049

(27,049

)

(1,319

)

(25,730

)

Legal matters (4)

(1,885

)

1,885

1,793

178,995

124,894

40,543

9,252

6,244

25,047

Adjusted gross profit %

56.5

Amortization (5)

1,500

(7,158

)

8,658

(1,443

)

2,440

7,661

As adjusted

117,736

49,201

7,809

8,684

21.0

32,708

1.05

% of sales

37.2

15.5

(1) In 2025, the Company wrote off inventory, equipment, tooling and patents related to the cancellation of planned new product lines and discontinuation of certain catalog numbers as a result of our operational optimization consultation and internal review.

(2) In 2025, the Company incurred costs related to the engagement of a consulting firm to evaluate and propose improvements to our manufacturing operations which are included in cost of sales. In addition, we incurred consulting fees related to operational optimization which are included in selling & administrative expense.

(3) In 2025 and 2024, the Company recorded income/(expense) related to the fair value adjustments of contingent consideration.

(4) In 2025 and 2024, the Company incurred costs for third party services pertaining to potential issues with certain royalty payments to surgeons involved in design teams.

(5) Includes amortization of intangible assets and deferred financing fees.

Reconciliation of Reported Net Income to Adjusted Net Income

(in thousands, except per share amounts, unaudited)

Nine Months Ended September 30, 2025

Gross Profit

Selling & Administrative Expense

Operating Income

Interest Expense

Other Expense

Tax Expense

Effective Tax Rate

Net Income

Diluted EPS

As reported

532,190

425,207

65,998

23,716

418

11,548

27.6

30,316

0.97

% of sales

53.1

42.5

6.6

Product rationalization costs (1)

19,653

4,870

14,783

Operational optimization consulting fees (2)

12,262

(8,456

)

20,718

4,045

16,673

Executive transition costs (3)

(12,165

)

12,165

2,812

9,353

Legal matters (4)

(2,548

)

2,548

453

2,095

Contingent consideration fair value adjustments (5)

(3,504

)

3,504

1,046

2,458

Debt refinancing costs (6)

(418

)

371

Gain on sale of product line (7)

354

(354

)

(82

)

(272

)

564,105

398,888

124,232

23,716

24,739

75,777

Adjusted gross profit %

56.3

Amortization (8)

4,500

(21,597

)

26,097

(4,107

)

7,335

22,869

As adjusted

377,291

150,329

19,609

32,074

24.5

98,646

3.17

% of sales

37.7

15.0

Nine Months Ended September 30, 2024

Gross Profit

Selling & Administrative Expense

Operating Income

Interest Expense

Other Expense

Tax Expense

Effective Tax Rate

Net Income

Diluted EPS

As reported

534,688

345,611

147,827

28,440

20,719

17.4

98,668

3.17

% of sales

55.6

36.0

15.4

Legal matters (4)

(4,566

)

4,566

344

4,222

Contingent consideration fair value adjustments (5)

42,267

(42,267

)

(2,650

)

(39,617

)

Restructuring and related costs (9)

235

(1,539

)

1,774

255

1,519

Asset impairment costs (10)

1,414

203

1,211

Termination of distributor agreement (11)

970

(970

)

(139

)

(831

)

536,337

382,743

112,344

28,440

18,732

65,172

Adjusted gross profit %

55.8

Amortization (8)

4,500

(21,466

)

25,966

(4,256

)

7,320

22,902

As adjusted

361,277

138,310

24,184

26,052

22.8

88,074

2.83

% of sales

37.6

14.4

(3) In 2025, the Company incurred cash and stock-based compensation costs related to advisory services provided by our former Chief Executive Officer.

(4) In 2025 and 2024, the Company incurred costs for third party services pertaining to potential issues with certain royalty payments to surgeons involved in design teams.

(5) In 2025 and 2024, the Company recorded income/(expense) related to the fair value adjustments of contingent consideration.

(6) In 2025, the Company incurred costs related to a loss on early extinguishment and third-party fees associated with the eighth amended and restated senior credit agreement.

(7) In 2025, the Company recognized a gain on the sale of a product line.

(8) Includes amortization of intangible assets and deferred financing fees.

(9) In 2024, the Company incurred severance costs related to the elimination of certain positions.

(10) In 2024, the Company wrote off inventory, tooling and equipment related to the cancellation of a planned new product line.

(11) In 2024, the Company recorded an accrual adjustment related to the previous termination of a distributor agreement.

Reconciliation of Reported Net Income to EBITDA & Adjusted EBITDA

(in thousands, unaudited)

Three Months Ended

Nine Months Ended

September 30,

2025

2024

2025

2024

Net income

2,859

48,984

30,316

98,668

Provision for income taxes

1,414

7,471

11,548

20,719

Interest expense

7,606

9,252

23,716

28,440

Depreciation

4,376

4,195

13,077

12,406

Amortization

14,231

13,779

42,354

41,445

EBITDA

30,486

83,681

121,011

201,678

Stock based compensation

4,585

6,123

15,869

19,336

Product rationalization costs

19,653

Operational optimization consulting fees

9,245

20,718

Contingent consideration fair value adjustments

1,341

(27,049

)

3,504

(42,267

)

Legal matters

319

1,885

2,548

4,566

Debt refinancing costs

418

Executive transition costs

12,165

Gain on sale of product line

(354

)

Restructuring and related costs

1,774

Asset impairment costs

1,414

Termination of distributor agreement

(970

)

Adjusted EBITDA

65,629

64,640

195,532

185,531

EBITDA Margin

EBITDA

9.0

26.4

12.1

21.0

Adjusted EBITDA

19.4

20.4

19.5

19.3

About CONMED Corporation

CONMED is a medical technology company that provides devices and equipment for surgical procedures. The Company’s products are used by surgeons and other healthcare professionals in a variety of specialties including orthopedics, general surgery, gynecology, thoracic surgery, and gastroenterology. For more information, visit www.conmed.com.

Forward-Looking Statements

This press release and associated conference call may contain forward-looking statements based on certain assumptions and contingencies that involve risks and uncertainties, which could cause actual results, performance, or trends to differ materially from those expressed in the forward-looking statements herein or in previous disclosures. For example, in addition to general industry and economic conditions, factors that could cause actual results to differ materially from those in the forward-looking statements may include, but are not limited to the risk factors discussed in the Company's Annual Report on Form 10-K for the full year ended December 31, 2024, listed under the heading Forward-Looking Statements in the Company’s most recently filed Form 10-Q and other risks and uncertainties, which may be detailed from time to time in reports filed by CONMED with the SEC. Any and all forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and relate to the Company’s performance on a going-forward basis. The Company believes that all forward-looking statements made by it have a reasonable basis, but there can be no assurance that management’s expectations, beliefs or projections as expressed in the forward-looking statements will actually occur or prove to be correct.

Supplemental Information - Reconciliation of GAAP to Non-GAAP Financial Measures

The Company supplements the reporting of its financial information determined under generally accepted accounting principles in the United States (GAAP) with certain non-GAAP financial measures, including percentage sales growth in constant currency; adjusted gross profit; cost of sales excluding specified items; adjusted selling and administrative expenses; adjusted operating income; adjusted interest expense; adjusted other expense; adjusted income tax expense; adjusted effective income tax rate; adjusted net income and adjusted diluted net earnings per share (EPS). The Company believes that these non-GAAP measures provide meaningful information to assist investors and shareholders in understanding its financial results and assessing its prospects for future performance. Management believes percentage sales growth in constant currency and the other adjusted measures described above are important indicators of its operations because they exclude items that may not be indicative of, or are unrelated to, its core operating results and provide a baseline for analyzing trends in the Company’s underlying business. Further, the presentation of EBITDA is a non-GAAP measurement that management considers useful for measuring aspects of the Company’s cash flow. Management uses these non-GAAP financial measures for reviewing the operating results and analyzing potential future business trends in connection with its budget process and bases certain management incentive compensation on these non-GAAP financial measures.

Net sales on a constant currency basis is a non-GAAP measure. The Company analyzes net sales on a constant currency basis to better measure the comparability of results between periods. To measure percentage sales growth in constant currency, the Company removes the impact of changes in foreign currency exchange rates that affect the comparability and trend of net sales. To measure earnings performance on a consistent and comparable basis, the Company excludes certain items that affect the comparability of operating results and the trend of earnings. These adjustments are irregular in timing, may not be indicative of past and future performance and are therefore excluded to allow investors to better understand underlying operating trends.

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 reported sales growth, gross profit, cost of sales, selling and administrative expenses, operating income, interest expense, other expense, income tax expense, effective income tax rate, net income and diluted net earnings per share, the most directly comparable GAAP financial measures. These non-GAAP financial measures are an additional way of viewing aspects of the Company’s operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures above, provide a more complete understanding of the business. The Company strongly encourages investors and shareholders to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.

We are unable to present a quantitative reconciliation of our expected diluted net earnings per share to expected adjusted diluted net earnings per share as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of acquisition, integration and other charges. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our consolidated condensed statements of income.