CONMED (CNMD) investor relations material

Executive summary

• Q3 2025 sales reached $337.9 million, up 6.7% year-over-year as reported and 6.3% in constant currency, led by General Surgery and Orthopedics.

• Adjusted diluted EPS was $1.08, up 2.9% year-over-year; GAAP EPS dropped sharply to $0.09 due to special items and non-recurring costs.

• Net income for Q3 2025 was $2.9 million, down from $49.0 million in Q3 2024, reflecting higher costs, inventory write-offs, and consulting fees.

• Board authorized a $150 million share repurchase program, suspending the dividend to enhance financial flexibility.

• Strategic review and operational optimization initiatives underway to sharpen focus on core markets and improve margins.

Financial highlights

• Q3 2025 gross profit margin was 49.2%, down from 56.5% in Q3 2024, mainly due to inventory write-offs, tariffs, and consulting fees.

• Adjusted gross margin was 56.1%, nearly flat year-over-year.

• Operating income margin declined to 3.5% from 20.7% year-over-year.

• Cash flow from operations was $53.7 million in Q3, with year-to-date operating cash flow at $124.4 million.

• Effective tax rate increased to 33.1% in Q3 2025 from 13.2% in Q3 2024.

Outlook and guidance

• Full-year 2025 revenue guidance narrowed to $1.365–$1.372 billion, with Q4 revenue expected at $363–$370 million.

• Full-year adjusted diluted EPS forecasted at $4.48–$4.53, with a $0.10 headwind from foreign currency and $0.09 from tariffs.

• Adjusted gross margin in Q4 projected in the mid-55% range, with 150 basis points headwind from tariffs.

• Management expects continued impact from inflation, supply chain challenges, and tariffs.

• At least $25 million in annual share repurchases expected beginning in 2026; dividend payments suspended.