INTEGRA LIFESCIENCES HOLDINGS CORP (IART) Earnings History

INTEGRA LIFESCIENCES HOLDINGS CORP - Q4 FY2025 EarningsMissed

Filed at: Feb 26, 2026, 6:15 AM EST|Read from source

EXECUTIVE SUMMARY

Integra LifeSciences reported a challenging fourth quarter and full year, marked by revenue declines and lower GAAP earnings, primarily due to ongoing remediation efforts and operational challenges. The company is implementing a transformation plan focused on a simplified operating model and portfolio prioritization to drive future margin improvement and sustainable growth.

POSITIVE HIGHLIGHTS

  • •

    Codman Specialty Surgical segment revenues increased 2.7% on a reported basis and 1.6% on an organic basis in Q4.

    positive
  • •

    Adjusted EBITDA margin improved to 24.0% in Q4 2025 from 23.7% in Q4 2024.

    positive
  • •

    The company is implementing a simplified operating model expected to yield $25-$30 million in savings in 2026.

    positive

CONCERNS & RISKS

  • •

    Total reported revenues decreased 1.7% to $434.9 million in Q4 2025, with organic revenues down 2.5%.

    negative
  • •

    Full-year reported revenues increased only 1.5% to $1,635.2 million, with organic sales down 0.7%.

    negative
  • •

    GAAP net loss widened significantly to $(516.5) million in FY2025, driven by a $511 million goodwill impairment charge.

    negative
  • •

    Adjusted diluted EPS decreased to $0.83 in Q4 2025 from $0.97 in Q4 2024, and to $2.23 for FY2025 from $2.56 in FY2024.

    negative
  • •

    Tissue Technologies segment revenues decreased 12.8% on a reported and organic basis in Q4, primarily due to remediation efforts for MediHoney® and a challenging comparison for Integra Skin.

    negative
  • •

    Full-year adjusted EBITDA decreased to $317.5 million from $322.2 million in the prior year, with margins declining 60 basis points.

    negative
  • •

    Q1 2026 reported revenue guidance is expected to be between $375 million to $390 million, representing a potential decrease of up to 2.0% on a reported basis.

    attention
  • •

    Inventory levels increased to $492.7 million from $429.1 million YoY.

    attention
  • •

    Net debt increased to $1.6 billion at the end of 2025 from $1.5 billion at the end of 2024.

    attention
  • •

    Adjusted Free Cash Flow was negative for both Q4 2025 (-$5.4 million) and FY2025 (-$31.1 million).

    attention

FINANCIAL METRICS

Revenue
Quarterly
$434.93M
-1.7%
Prior year: $442.64M
Annual (YTD)
$1.64B
N/A
Prior year: $1.61B
Net Income
Quarterly
$-1.70M
-7330.0%
Prior year: $19.43M
Annual (YTD)
$-516.47M
N/A
Prior year: $-6.94M
EPS (Diluted)
Quarterly
$-0.02
-108.0%
Prior year: $0.25
Operating Income
Quarterly
$23.04M
-1830.0%
Prior year: $35.63M
Annual (YTD)
$-493.37M
N/A
Prior year: $28.41M
EPS (Basic)
Quarterly
N/A
N/A

MARGIN ANALYSIS

Gross Margin
Current Quarter
50.8%
Prior Year
56.3%
YoY Change
-549 bps
Operating Margin
Current Quarter
5.3%
Prior Year
8.0%
YoY Change
-274 bps
Net Margin
Current Quarter
-0.4%
Prior Year
4.4%
YoY Change
-478 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q4 FY2025 2025

VISUAL OVERVIEW

|
Codman Specialty Surgical(3 segments)
0.0%
N/A
Tissue Technologies(2 segments)
0.0%
N/A

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
Codman Specialty Surgical
N/A———
Tissue Technologies
N/A———
Total Revenue$0.00M——100.0%

Segment performance shows business unit health and growth drivers.

MANAGEMENT GUIDANCE

FY2026

revenue
$1662000.0B—$1702000.0B
Mid-point: $1682000.0B
"reported growth of 1.6% to 4.1% and organic growth of 0.8% to 3.3%"
adjusted earnings per diluted share
2.3—2.4
Mid-point: 2.35
"reflecting a full year of tariffs offset by margin improvement initiatives"

Q1 2026

revenue
$375000.0B—$390000.0B
Mid-point: $382500.0B
"reported growth of -2.0% to 1.9% and organic growth of -3.4% to 0.5%"
adjusted earnings per diluted share
0.37—0.45
Mid-point: 0.41

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q4 2025
Acquisition, divestiture and integration-related charges
$1.002M
Q4 2025
Structural Optimization charges
+$20.334M
Q4 2025
EU Medical Device Regulation charges
+$9.749M
Q4 2025
Boston Recall/Braintree Transition
+$13.806M
Q4 2025
Intangible asset amortization expense
+$26.919M
Q4 2025
Estimated income tax impact from adjustments and other items
$4.362M
FY2025
Acquisition, divestiture and integration-related charges
+$3.597M
FY2025
Structural Optimization charges
+$47.994M
FY2025
EU Medical Device Regulation charges
+$41.928M
FY2025
Boston Recall/Braintree Transition
+$56.202M
FY2025
Goodwill impairment charge
+$511.365M
FY2025
Intangible asset amortization expense
+$107.06M
FY2025
Estimated income tax impact from adjustments and other items
+$80.292M
Total Impact
+$913.882M

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

In the fourth quarter, we drove tangible operational progress while continuing to deliver for our customers and patients.

— INTEGRA LIFESCIENCES HOLDINGS CORP, Q4 FY2025 2025 Earnings Call

During 2025, we further strengthened our quality management system, advanced our Compliance Master Plan, and progressed execution of our remediation work.

— INTEGRA LIFESCIENCES HOLDINGS CORP, Q4 FY2025 2025 Earnings Call

Our operational and execution focus resulted in significant outcomes in key areas, namely Integra Skin supply reliability, healthier safety stock levels across our portfolio, and early relaunch of PriMatrix and Durepair.

— INTEGRA LIFESCIENCES HOLDINGS CORP, Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Integra Skin supply reliability
improved
Safety stock levels
healthier

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.