Embla Medical (EMBLA) Q3 2026 earnings summary

Executive summary

• Q3 net sales were $249.6 million, up 4% organically and 5% reported; P&NO and EMEA growth was partly offset by softer Americas and APAC results.

• FY 2026 guidance narrowed to ~5% organic growth and ~21% EBITDA margin before special items, reflecting slower-than-expected Patient Care recovery.

Financial highlights

• Q3 EBITDA was $55.6 million, with a 22% margin, on par YoY; 9M EBITDA was $153 million, with a 21% margin.

• Q3 net profit was $26.1 million versus $25.8 million; 9M net profit rose 19% to $69.9 million, and diluted EPS was 16.3 US cents versus 13.8.

• Q3 gross profit was $155.1 million; gross margin was 62% versus 63% YoY. 9M gross margin was 62.4% versus 62.6%.

• Q3 OPEX was 46% of sales, with organic OPEX growth of 2% below organic sales growth of 4%.

• Q3 free cash flow was $31 million; 9M free cash flow rose 13% to $66 million.

Outlook and guidance

• FY 2026 organic sales growth guidance narrowed to ~5% from 5–7%; EBITDA margin before special items narrowed to ~21% from 20–22%.

• FY modeling assumptions include CAPEX of 2–3% of sales and an effective tax rate of 23–24%; no special items are expected.

• Q4 outlook calls for continued solid P&NO performance, supported by EMEA momentum, Bionics growth and recent launches; Bracing & Supports is expected to track market growth.

• Patient Care integration and clinic onboarding are expected to constrain growth temporarily; commercial execution aims to convert productivity gains into sales growth.