Avanos Medical (AVNS) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 were $182.2 million, up 8.8% year-over-year, driven by strong growth in Specialty Nutrition Systems (SNS) and stable Pain Management and Recovery (PM&R) performance.

• Net income was $5.1 million, down from $6.6 million in Q1 2025; adjusted net income was $10.6 million versus $12.0 million last year.

• Announced a definitive agreement to be acquired by affiliates of American Industrial Partners for $1.272 billion, offering $25.00 per share in cash to shareholders.

• The Nexus Medical acquisition was completed, enhancing the SNS portfolio and contributing $5.8 million in Q1 2026 net sales.

Financial highlights

• Gross profit increased to $94.2 million from $89.8 million year-over-year; gross profit margin was 51.7%.

• Operating income was $8.9 million, down from $10.3 million in Q1 2025.

• Adjusted operating income (non-GAAP) was $16.2 million, compared to $17.1 million last year.

• Adjusted EBITDA was $21.8 million, slightly up from $21.6 million in Q1 2025.

• Cash and cash equivalents decreased to $65.6 million from $89.8 million at year-end 2025 and $97.0 million a year ago.

Outlook and guidance

• Management expects annualized savings of $15–20 million from ongoing restructuring initiatives, with related costs expected to continue through 2026.

• The pending merger is subject to customary closing conditions and, if completed, will result in the company becoming privately held.

• Management highlighted steady progress on strategic imperatives and positive execution.