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CONMED Corporation Announces Fourth Quarter and Full-Year 2025 Financial Results

businesswire.com

LARGO, Fla.--( BUSINESS WIRE)--CONMED Corporation (NYSE: CNMD) today announced financial results for the fourth quarter and full-year ended December 31, 2025.

Fourth Quarter 2025 Highlights

Full-Year 2025 Highlights

“Our fourth quarter results reflect steady execution across the business as well as progress on our operational initiatives,” said Patrick J. Beyer, CONMED’s President and Chief Executive Officer. “As we begin 2026 with a sharpened strategic focus, we remain disciplined in our operating approach and confident in the long‑term potential of our key growth drivers in minimally invasive surgery, smoke evacuation, and orthopedic soft tissue repair.”

2026 Outlook

The Company expects full-year 2026 reported revenue between $1.345 billion and $1.375 billion. This represents year over year organic constant currency growth of approximately 4.5% to 6% over 2025 revenue when excluding sales of gastroenterology products from both years, and approximately 0 to 50 basis points of currency tailwind.

The Company expects full-year 2026 adjusted diluted net earnings per share (2) in the range of $4.30 to $4.45. This includes a currency tailwind of approximately $0.10.

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 fourth quarter and full-year 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

Year Ended

December 31,

December 31,

2025

2024

2025

2024

Net sales

$

373,198

$

345,944

$

1,374,724

$

1,307,015

Cost of sales

154,912

147,600

624,249

573,983

Gross profit

218,286

198,344

750,475

733,032

% of sales

58.5

%

57.3

%

54.6

%

56.1

%

Selling & administrative expense

166,764

132,669

591,969

478,280

Research & development expense

14,899

13,176

55,884

54,426

Income from operations

36,623

52,499

102,622

200,326

% of sales

9.8

%

15.2

%

7.5

%

15.3

%

Interest expense

7,370

8,857

31,087

37,297

Other expense

-

-

418

-

Income before income taxes

29,253

43,642

71,117

163,029

Provision for income taxes

12,514

9,888

24,062

30,606

Net income

$

16,739

$

33,754

$

47,055

$

132,423

Basic EPS

$

0.54

$

1.09

$

1.52

$

4.29

Diluted EPS

0.54

1.08

1.51

4.25

Basic shares

30,968

30,923

31,036

30,846

Diluted shares

31,030

31,146

31,149

31,150

Sales Summary

(in millions, unaudited)

Three Months Ended December 31,

% Change

Domestic

International

2025

2024

As

Reported

Impact of

Foreign

Currency

Constant

Currency

As

Reported

As

Reported

Impact of

Foreign

Currency

Constant

Currency

Orthopedic Surgery

$

157.4

$

139.0

13.2

%

-1.1

%

12.1

%

6.6

%

17.5

%

-1.8

%

15.7

%

General Surgery

215.8

206.9

4.3

%

-0.5

%

3.8

%

-0.4

%

16.3

%

-1.5

%

14.8

%

$

373.2

$

345.9

7.9

%

-0.8

%

7.1

%

1.4

%

17.0

%

-1.6

%

15.4

%

Single-use Products

$

320.6

$

297.3

7.8

%

-0.7

%

7.1

%

1.5

%

17.6

%

-1.7

%

15.9

%

Capital Products

52.6

48.6

8.2

%

-0.9

%

7.3

%

1.4

%

14.4

%

-1.6

%

12.8

%

$

373.2

$

345.9

7.9

%

-0.8

%

7.1

%

1.4

%

17.0

%

-1.6

%

15.4

%

Domestic

$

206.2

$

203.3

1.4

%

0.0

%

1.4

%

International

167.0

142.6

17.0

%

-1.6

%

15.4

%

$

373.2

$

345.9

7.9

%

-0.8

%

7.1

%

Year Ended December 31,

% Change

Domestic

International

2025

2024

As

Reported

Impact of

Foreign

Currency

Constant

Currency

As

Reported

As

Reported

Impact of

Foreign

Currency

Constant

Currency

Orthopedic Surgery

$

574.6

$

544.0

5.6

%

-0.1

%

5.5

%

2.3

%

7.8

%

-0.2

%

7.6

%

General Surgery

800.1

763.0

4.9

%

-0.2

%

4.7

%

4.0

%

6.9

%

-0.5

%

6.4

%

$

1,374.7

$

1,307.0

5.2

%

-0.1

%

5.1

%

3.5

%

7.4

%

-0.3

%

7.1

%

Single-use Products

$

1,183.8

$

1,112.1

6.4

%

-0.1

%

6.3

%

4.0

%

9.9

%

-0.3

%

9.6

%

Capital Products

190.9

194.9

-2.1

%

0.0

%

-2.1

%

-0.3

%

-3.6

%

-0.2

%

-3.8

%

$

1,374.7

$

1,307.0

5.2

%

-0.1

%

5.1

%

3.5

%

7.4

%

-0.3

%

7.1

%

Domestic

$

774.6

$

748.2

3.5

%

0.0

%

3.5

%

International

600.1

558.8

7.4

%

-0.3

%

7.1

%

$

1,374.7

$

1,307.0

5.2

%

-0.1

%

5.1

%

Reconciliation of Reported Net Income to Adjusted Net Income

(in thousands, except per share amounts, unaudited)

Three Months Ended December 31, 2025

Gross Profit

Selling &

Administrative

Expense

Research &

Development

Expense

Operating

Income

Interest

Expense

Other

Expense

Tax Expense

Effective Tax

Rate

Net Income

Diluted EPS

As reported

$

218,286

$

166,764

$

14,899

$

36,623

$

7,370

$

-

$

12,514

42.8

%

$

16,739

$

0.54

% of sales

58.5

%

44.7

%

4.0

%

9.8

%

Contingent consideration fair value adjustments (1)

-

(19,446

)

-

19,446

-

-

278

19,168

Product rationalization costs (2)

2,596

(2,234

)

-

4,830

-

-

69

4,761

Operational optimization consulting fees (3)

188

(4,469

)

-

4,657

-

-

67

4,590

EU medical device regulations (4)

-

-

(785

)

785

-

-

11

774

Legal matters (5)

-

(60

)

-

60

-

-

1

59

Termination of distribution agreement (6)

(9,866

)

-

-

(9,866

)

-

-

(141

)

(9,725

)

$

211,204

$

140,555

$

14,114

$

56,535

$

7,370

$

-

$

12,799

$

36,366

Adjusted gross profit %

56.6

%

Amortization (7)

$

1,500

(7,591

)

-

9,091

(1,539

)

-

2,563

8,067

As adjusted

$

132,964

$

14,114

$

65,626

$

5,831

$

-

$

15,362

25.7

%

$

44,433

$

1.43

% of sales

35.6

%

3.8

%

17.6

%

Three Months Ended December 31, 2024

Gross Profit

Selling &

Administrative

Expense

Research &

Development

Expense

Operating

Income

Interest

Expense

Other

Expense

Tax Expense

Effective Tax

Rate

Net Income

Diluted EPS

As reported

$

198,344

$

132,669

$

13,176

$

52,499

$

8,857

$

-

$

9,888

22.7

%

$

33,754

$

1.08

% of sales

57.3

%

38.3

%

3.8

%

15.2

%

Contingent consideration fair value adjustments (1)

-

(1,219

)

-

1,219

-

-

1,058

161

Hurricane impact (8)

955

-

-

955

-

-

829

126

Lease impairment (9)

-

(606

)

-

606

-

-

526

80

Legal matters (5)

-

(531

)

-

531

-

-

461

70

$

199,299

$

130,313

$

13,176

$

55,810

$

8,857

$

-

$

12,762

$

34,191

Adjusted gross profit %

57.6

%

Amortization (7)

$

1,500

(7,162

)

-

8,662

(1,443

)

-

2,456

7,649

As adjusted

$

123,151

$

13,176

$

64,472

$

7,414

$

-

$

15,218

26.7

%

$

41,840

$

1.34

% of sales

35.6

%

3.8

%

18.6

%

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

(2) In 2025, the Company wrote off inventory, equipment, tooling and patents to cost of goods sold 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. In addition, we wrote off the developed technology intangible asset to selling and administrative expense.

(3) 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 and other charges related to operational optimization which are included in selling & administrative expense.

(4) In 2025, the Company incurred costs to comply with the European Union's Medical Device Regulations (MDR).

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

(6) In 2025, the Company incurred income related to the early termination of an agreement granting the Company exclusive distribution rights.

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

(8) In 2024, the Company incurred costs due to the impact of Hurricane Milton on our Largo, FL facility. These costs were mainly comprised of emergency pay to employees and plant underutilization due to abnormally low production.

(9) In 2024, the Company recorded lease impairment expense related to a storage facility no longer utilized.

Reconciliation of Reported Net Income to Adjusted Net Income

(in thousands, except per share amounts, unaudited)

Year Ended December 31, 2025

Gross Profit

Selling &

Administrative

Expense

Research &

Development

Expense

Operating

Income

Interest

Expense

Other

Expense

Tax Expense

Effective

Tax Rate

Net Income

Diluted EPS

As reported

$

750,475

$

591,969

$

55,884

$

102,622

$

31,087

$

418

$

24,062

33.8

%

$

47,055

$

1.51

% of sales

54.6

%

43.1

%

4.1

%

7.5

%

Operational optimization costs (1)

12,450

(12,926

)

-

25,376

-

-

4,112

21,264

Product rationalization costs (2)

22,249

(2,234

)

-

24,483

-

-

4,940

19,543

Contingent consideration fair value adjustments (3)

-

(22,951

)

-

22,951

-

-

1,324

21,627

Executive transition costs (4)

-

(12,165

)

-

12,165

-

-

2,812

9,353

EU medical device regulations (5)

-

-

(785

)

785

-

-

11

774

Debt refinancing costs (6)

-

-

-

-

-

(418

)

47

371

Legal matters (7)

-

(2,609

)

-

2,609

-

-

454

2,155

Gain on sale of product line (8)

-

354

-

(354

)

-

-

(82

)

(272

)

Termination of distribution agreement (9)

(9,866

)

-

-

(9,866

)

-

-

(141

)

(9,725

)

$

775,308

$

539,438

$

55,099

$

180,771

$

31,087

$

-

$

37,539

$

112,145

Adjusted gross profit %

56.4

%

Amortization (10)

$

6,000

(29,188

)

-

35,188

(5,646

)

-

9,898

30,936

As adjusted

$

510,250

$

55,099

$

215,959

$

25,441

$

-

$

47,437

24.9

%

$

143,081

$

4.59

% of sales

37.1

%

4.0

%

15.7

%

Year Ended December 31, 2024

Gross Profit

Selling &

Administrative

Expense

Research &

Development

Expense

Operating

Income

Interest

Expense

Other

Expense

Tax Expense

Effective

Tax Rate

Net Income

Diluted EPS

As reported

$

733,032

$

478,280

$

54,426

$

200,326

$

37,297

$

-

$

30,606

18.8

%

$

132,423

$

4.25

% of sales

56.1

%

36.6

%

4.2

%

15.3

%

Legal matters (7)

-

(5,097

)

-

5,097

-

-

806

4,291

Restructuring and related costs (11)

235

(1,539

)

-

1,774

-

-

255

1,519

Product rationalization costs (2)

1,414

-

-

1,414

-

-

203

1,211

Hurricane impact (12)

955

-

-

955

-

-

829

126

Lease impairment (13)

-

(606

)

-

606

-

-

526

80

Termination of distributor agreement (14)

-

970

-

(970

)

-

-

(139

)

(831

)

Contingent consideration fair value adjustments (3)

-

41,048

-

(41,048

)

-

-

(1,591

)

(39,457

)

$

735,636

$

513,056

$

54,426

$

168,154

$

37,297

$

-

$

31,495

$

99,362

Adjusted gross profit %

56.3

%

Amortization (10)

$

6,000

(28,629

)

-

34,629

(5,700

)

-

9,775

30,554

As adjusted

$

484,427

$

54,426

$

202,783

$

31,597

$

-

$

41,270

24.1

%

$

129,916

$

4.17

% of sales

37.1

%

4.2

%

15.5

%

(1) 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 and other charges related to operational optimization which are included in selling & administrative expense.

(2) In 2025, the Company wrote off inventory, equipment, tooling and patents to cost of goods sold 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. In addition, we wrote off the developed technology intangible asset to selling and administrative expense. In 2024, the Company wrote off inventory, tooling and equipment related to the cancellation of a planned new product line.

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

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

(5) In 2025, the Company incurred costs to comply with the European Union's Medical Device Regulations (MDR).

(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 and 2024, the Company incurred costs for third party services pertaining to potential issues with certain royalty payments to design surgeons.

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

(9) In 2025, the Company incurred income related to the early termination of an agreement granting the Company exclusive distribution rights.

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

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

(12) In 2024, the Company incurred costs due to the impact of Hurricane Milton on our Largo, FL facility. These costs were mainly comprised of emergency pay to employees and plant underutilization due to abnormally low production.

(13) In 2024, the Company recorded lease impairment expense related to a storage facility no longer utilized.

(14) 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

Year Ended

December 31,

December 31,

2025

2024

2025

2024

Net income

$

16,739

$

33,754

$

47,055

$

132,423

Provision for income taxes

12,514

9,888

24,062

30,606

Interest expense

7,370

8,857

31,087

37,297

Depreciation

4,066

4,199

17,143

16,605

Amortization

14,784

13,807

57,138

55,252

EBITDA

$

55,473

$

70,505

$

176,485

$

272,183

Stock-based compensation

4,972

6,222

20,841

25,558

Contingent consideration fair value adjustments

19,446

1,219

22,951

(41,048

)

Product rationalization costs

4,830

-

24,483

1,414

Operational optimization costs

4,657

-

25,376

-

EU medical device regulations

785

-

785

-

Legal matters

60

531

2,609

5,097

Restructuring and related costs

-

-

-

1,774

Executive transition costs

-

-

12,165

-

Debt refinancing costs

-

-

418

-

Gain on sale of product line

-

-

(354

)

-

Hurricane impact

-

955

-

955

Lease impairment

-

606

-

606

Termination of distribution agreement

(9,866

)

-

(9,866

)

-

Termination of distributor agreement

-

-

-

(970

)

Adjusted EBITDA

$

80,357

$

80,038

$

275,893

$

265,569

EBITDA Margin

EBITDA

14.9

%

20.4

%

12.8

%

20.8

%

Adjusted EBITDA

21.5

%

23.1

%

20.1

%

20.3

%

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 research and development expense; 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, research and development expense, 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.