CONMED (CNMD) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 sales reached $373.2 million, up 7.9% year-over-year as reported and 7.1% in constant currency; full-year sales were $1,374.7 million, up 5.2% as reported and 5.1% in constant currency.

• Adjusted diluted EPS for Q4 2025 was $1.43, up 6.7% year-over-year; full-year adjusted EPS was $4.59, up 10.1%.

• Orthopedic sales led growth, increasing 12.1% in Q4 and 5.5% for the year in constant currency; general surgery sales rose 3.8% in Q4 and 4.7% for the year.

• International revenue growth outpaced domestic, with Q4 international revenue up 15.4%–17.0% year-over-year.

• Announced $150 million share repurchase program and strategic exit from gastroenterology product lines to focus on high-growth, high-margin platforms.

Financial highlights

• Q4 adjusted gross margin was 56.6%, down 100 bps year-over-year due to tariffs; full-year adjusted gross margin was 56.4%.

• Q4 GAAP net income was $16.7 million ($0.54 EPS), down from $33.8 million ($1.08 EPS) last year; full-year GAAP net income was $47.1 million ($1.51 EPS), down from $132.4 million ($4.25 EPS) in 2024.

• Adjusted EBITDA for 2025 was $275.9 million, up from $265.6 million in 2024.

• Cash flow from operations was $46.3 million in Q4 and $170.7 million for the year; free cash flow conversion reached 105% in 2025.

• Year-end cash balance was $40.8 million; long-term debt was $834.2 million; leverage ratio at 2.9x.

Outlook and guidance

• 2026 revenue guidance: $1.345–$1.375 billion, representing 4.5–6% constant currency organic growth, excluding gastroenterology product sales.

• Adjusted gross margin expected to improve 50–100 bps in 2026 despite 100–110 bps tariff headwinds.

• Adjusted SG&A to be 38.0–38.5% of sales; adjusted R&D to be 4.5–5% of sales in 2026.

• Adjusted EPS guidance for 2026: $4.30–$4.45, including headwinds from GI exit and tariffs, and a $0.10 currency tailwind.

• 2026 operating cash flow expected at $145–$155 million; capex $20–$30 million; adjusted EBITDA $255–$265 million.