Integra LifeSciences (IART) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $419 million, up 0.8% year-over-year, with organic growth of 0.7%; adjusted EPS was $0.56, a 24.4% increase, exceeding guidance.

• Net income for Q2 2026 was $4.5 million, a turnaround from a $484.1 million loss in Q2 2025, driven by operational improvements and reduced remediation costs.

• Braintree manufacturing facility restarted, supporting the planned Q4 relaunch of SurgiMend.

• Transformation and restructuring initiatives drove margin expansion, improved supply, and consistent performance.

• Full-year organic revenue growth and adjusted EPS guidance reaffirmed; reported revenue outlook updated for FX impact.

Financial highlights

• Adjusted EBITDA margin reached 18.7%, up 160 basis points year-over-year.

• Adjusted gross margin rose to 61.3%, up 60 basis points year-over-year; GAAP gross margin improved to 52.5%.

• Operating cash flow was $22.8 million, with free cash flow conversion at 24.0%.

• Net income was $4.5 million; adjusted net income increased to $43.7 million.

• Operating expenses for Q2 2026 were $200.5 million, down 72% year-over-year due to the absence of goodwill impairment.

Outlook and guidance

• Full-year reported revenue guidance is $1.654–$1.695 billion, with organic growth of 0.8%–3.3% and adjusted EPS of $2.40–$2.50.

• Q3 2026 revenue expected at $410–$425 million, with adjusted EPS of $0.53–$0.61.

• Margin expansion expected to continue, with gross margin and adjusted EBITDA margin up 60 and 100 basis points, respectively, over 2025.

• Guidance reflects FX headwinds and tariff impacts, with tariff favorability offsetting potential incremental interest expense.

• No material impact expected from recent Cincinnati flooding; insurance recoveries are being pursued.