CONMED Corporation Announces Fourth Quarter and Full-Year 2025 Financial Results

LARGO, Fla.--(BUSINESS WIRE)--CONMED Corporation (NYSE: CNMD) today announced financial results for the fourth quarter and full-year ended December 31, 2025.

Fourth Quarter 2025 Highlights

• Sales of $373.2 million increased 7.9% year-over-year as reported and 7.1% in constant currency.
• Domestic revenue increased 1.4% year-over-year.
• International revenue increased 17.0% year-over-year as reported and 15.4% in constant currency.
• Diluted net earnings per share (GAAP) were $0.54, compared to diluted net earnings per share (GAAP) of $1.08 in the fourth quarter of 2024.
• Adjusted diluted net earnings per share⁽¹⁾ were $1.43, compared to adjusted diluted net earnings per share of $1.34 in the fourth quarter of 2024.

Full-Year 2025 Highlights

• Sales of $1,374.7 million increased 5.2% year-over-year as reported and 5.1% in constant currency.
• Domestic revenue increased 3.5% year-over-year.
• International revenue increased 7.4% year-over-year as reported and 7.1% in constant currency.
• Diluted net earnings per share (GAAP) were $1.51, compared to diluted net earnings per share (GAAP) of $4.25 in 2024.
• Adjusted diluted net earnings per share⁽¹⁾ were $4.59, compared to adjusted diluted net earnings per share of $4.17 in 2024.

“Our fourth quarter results reflect steady execution across the business as well as progress on our operational initiatives,” said Patrick J. Beyer, CONMED’s President and Chief Executive Officer. “As we begin 2026 with a sharpened strategic focus, we remain disciplined in our operating approach and confident in the long‑term potential of our key growth drivers in minimally invasive surgery, smoke evacuation, and orthopedic soft tissue repair.”

2026 Outlook

The Company expects full-year 2026 reported revenue between $1.345 billion and $1.375 billion. This represents year over year organic constant currency growth of approximately 4.5% to 6% over 2025 revenue when excluding sales of gastroenterology products from both years, and approximately 0 to 50 basis points of currency tailwind.

The Company expects full-year 2026 adjusted diluted net earnings per share⁽²⁾ in the range of $4.30 to $4.45. This includes a currency tailwind of approximately $0.10.

Supplemental Financial Disclosures

⁽¹⁾ A reconciliation of reported diluted net earnings per share to adjusted diluted net earnings per share, a non-GAAP financial measure, appears below.

⁽²⁾ Information reconciling forward-looking adjusted diluted net earnings per share to the comparable GAAP financial measures is unavailable to the company without unreasonable effort, as discussed below.

Conference Call

The Company’s management will host a conference call today at 4:30 p.m. ET to discuss its fourth quarter and full-year 2025 results.

To participate in the conference call via telephone, please click here to pre-register and obtain the dial-in number and passcode.

This conference call will also be webcast and can be accessed from the “Investors” section of CONMED's website at www.conmed.com. The webcast replay of the call will be available at the same site approximately one hour after the end of the call.

Consolidated Condensed Statements of Income
(in thousands except per share amounts, unaudited)
	Three Months Ended						Year Ended
	December 31,						December 31,
		2025			2024			2025			2024
Net sales	$	373,198		$	345,944		$	1,374,724		$	1,307,015
Cost of sales		154,912			147,600			624,249			573,983
Gross profit		218,286			198,344			750,475			733,032
% of sales		58.5	%		57.3	%		54.6	%		56.1	%
Selling & administrative expense		166,764			132,669			591,969			478,280
Research & development expense		14,899			13,176			55,884			54,426
Income from operations		36,623			52,499			102,622			200,326
% of sales		9.8	%		15.2	%		7.5	%		15.3	%
Interest expense		7,370			8,857			31,087			37,297
Other expense		-			-			418			-
Income before income taxes		29,253			43,642			71,117			163,029
Provision for income taxes		12,514			9,888			24,062			30,606
Net income	$	16,739		$	33,754		$	47,055		$	132,423
Basic EPS	$	0.54		$	1.09		$	1.52		$	4.29
Diluted EPS		0.54			1.08			1.51			4.25
Basic shares		30,968			30,923			31,036			30,846
Diluted shares		31,030			31,146			31,149			31,150

Sales Summary
(in millions, unaudited)
	Three Months Ended December 31,
					% Change
											Domestic		International
		2025		2024	As Reported		Impact of Foreign Currency		Constant Currency		As Reported		As Reported		Impact of Foreign Currency		Constant Currency
Orthopedic Surgery	$	157.4	$	139.0	13.2	%	-1.1	%	12.1	%	6.6	%	17.5	%	-1.8	%	15.7	%
General Surgery		215.8		206.9	4.3	%	-0.5	%	3.8	%	-0.4	%	16.3	%	-1.5	%	14.8	%
	$	373.2	$	345.9	7.9	%	-0.8	%	7.1	%	1.4	%	17.0	%	-1.6	%	15.4	%
Single-use Products	$	320.6	$	297.3	7.8	%	-0.7	%	7.1	%	1.5	%	17.6	%	-1.7	%	15.9	%
Capital Products		52.6		48.6	8.2	%	-0.9	%	7.3	%	1.4	%	14.4	%	-1.6	%	12.8	%
	$	373.2	$	345.9	7.9	%	-0.8	%	7.1	%	1.4	%	17.0	%	-1.6	%	15.4	%
Domestic	$	206.2	$	203.3	1.4	%	0.0	%	1.4	%
International		167.0		142.6	17.0	%	-1.6	%	15.4	%
	$	373.2	$	345.9	7.9	%	-0.8	%	7.1	%

	Year Ended December 31,
					% Change
											Domestic		International
		2025		2024	As Reported		Impact of Foreign Currency		Constant Currency		As Reported		As Reported		Impact of Foreign Currency		Constant Currency
Orthopedic Surgery	$	574.6	$	544.0	5.6	%	-0.1	%	5.5	%	2.3	%	7.8	%	-0.2	%	7.6	%
General Surgery		800.1		763.0	4.9	%	-0.2	%	4.7	%	4.0	%	6.9	%	-0.5	%	6.4	%
	$	1,374.7	$	1,307.0	5.2	%	-0.1	%	5.1	%	3.5	%	7.4	%	-0.3	%	7.1	%
Single-use Products	$	1,183.8	$	1,112.1	6.4	%	-0.1	%	6.3	%	4.0	%	9.9	%	-0.3	%	9.6	%
Capital Products		190.9		194.9	-2.1	%	0.0	%	-2.1	%	-0.3	%	-3.6	%	-0.2	%	-3.8	%
	$	1,374.7	$	1,307.0	5.2	%	-0.1	%	5.1	%	3.5	%	7.4	%	-0.3	%	7.1	%
Domestic	$	774.6	$	748.2	3.5	%	0.0	%	3.5	%
International		600.1		558.8	7.4	%	-0.3	%	7.1	%
	$	1,374.7	$	1,307.0	5.2	%	-0.1	%	5.1	%

Reconciliation of Reported Net Income to Adjusted Net Income
(in thousands, except per share amounts, unaudited)
Three Months Ended December 31, 2025
	Gross Profit			Selling & Administrative Expense			Research & Development Expense			Operating Income			Interest Expense			Other Expense		Tax Expense			Effective Tax Rate		Net Income			Diluted EPS
As reported	$	218,286		$	166,764		$	14,899		$	36,623		$	7,370		$	-	$	12,514		42.8	%	$	16,739		$	0.54
% of sales		58.5	%		44.7	%		4.0	%		9.8	%
Contingent consideration fair value adjustments^(1)		-			(19,446	)		-			19,446			-			-		278					19,168
Product rationalization costs^(2)		2,596			(2,234	)		-			4,830			-			-		69					4,761
Operational optimization consulting fees^(3)		188			(4,469	)		-			4,657			-			-		67					4,590
EU medical device regulations^(4)		-			-			(785	)		785			-			-		11					774
Legal matters^(5)		-			(60	)		-			60			-			-		1					59
Termination of distribution agreement^(6)		(9,866	)		-			-			(9,866	)		-			-		(141	)				(9,725	)
	$	211,204		$	140,555		$	14,114		$	56,535		$	7,370		$	-	$	12,799				$	36,366
Adjusted gross profit %		56.6	%
Amortization^(7)	$	1,500			(7,591	)		-			9,091			(1,539	)		-		2,563					8,067
As adjusted				$	132,964		$	14,114		$	65,626		$	5,831		$	-	$	15,362		25.7	%	$	44,433		$	1.43
% of sales					35.6	%		3.8	%		17.6	%
Three Months Ended December 31, 2024
	Gross Profit			Selling & Administrative Expense			Research & Development Expense			Operating Income			Interest Expense			Other Expense		Tax Expense			Effective Tax Rate		Net Income			Diluted EPS
As reported	$	198,344		$	132,669		$	13,176		$	52,499		$	8,857		$	-	$	9,888		22.7	%	$	33,754		$	1.08
% of sales		57.3	%		38.3	%		3.8	%		15.2	%
Contingent consideration fair value adjustments^(1)		-			(1,219	)		-			1,219			-			-		1,058					161
Hurricane impact^(8)		955			-			-			955			-			-		829					126
Lease impairment^(9)		-			(606	)		-			606			-			-		526					80
Legal matters^(5)		-			(531	)		-			531			-			-		461					70
	$	199,299		$	130,313		$	13,176		$	55,810		$	8,857		$	-	$	12,762				$	34,191
Adjusted gross profit %		57.6	%
Amortization^(7)	$	1,500			(7,162	)		-			8,662			(1,443	)		-		2,456					7,649
As adjusted				$	123,151		$	13,176		$	64,472		$	7,414		$	-	$	15,218		26.7	%	$	41,840		$	1.34
% of sales					35.6	%		3.8	%		18.6	%

(1) In 2025 and 2024, the Company recorded expense related to the fair value adjustments of contingent consideration.

(2) In 2025, the Company wrote off inventory, equipment, tooling and patents to cost of goods sold related to the cancellation of planned new product lines and discontinuation of certain catalog numbers as a result of our operational optimization consultation and internal review. In addition, we wrote off the developed technology intangible asset to selling and administrative expense.

(3) In 2025, the Company incurred costs related to the engagement of a consulting firm to evaluate and propose improvements to our manufacturing operations which are included in cost of sales. In addition, we incurred consulting fees and other charges related to operational optimization which are included in selling & administrative expense.

(4) In 2025, the Company incurred costs to comply with the European Union's Medical Device Regulations (MDR).

(5) In 2025 and 2024, the Company incurred costs for third party services pertaining to potential issues with certain royalty payments to design surgeons.

(6) In 2025, the Company incurred income related to the early termination of an agreement granting the Company exclusive distribution rights.

(7) Includes amortization of intangible assets and deferred financing fees.

(8) In 2024, the Company incurred costs due to the impact of Hurricane Milton on our Largo, FL facility. These costs were mainly comprised of emergency pay to employees and plant underutilization due to abnormally low production.

(9) In 2024, the Company recorded lease impairment expense related to a storage facility no longer utilized.

Reconciliation of Reported Net Income to Adjusted Net Income
(in thousands, except per share amounts, unaudited)
Year Ended December 31, 2025
	Gross Profit			Selling & Administrative Expense			Research & Development Expense			Operating Income			Interest Expense			Other Expense			Tax Expense			Effective Tax Rate		Net Income			Diluted EPS
As reported	$	750,475		$	591,969		$	55,884		$	102,622		$	31,087		$	418		$	24,062		33.8	%	$	47,055		$	1.51
% of sales		54.6	%		43.1	%		4.1	%		7.5	%
Operational optimization costs^(1)		12,450			(12,926	)		-			25,376			-			-			4,112					21,264
Product rationalization costs^(2)		22,249			(2,234	)		-			24,483			-			-			4,940					19,543
Contingent consideration fair value adjustments^(3)		-			(22,951	)		-			22,951			-			-			1,324					21,627
Executive transition costs^(4)		-			(12,165	)		-			12,165			-			-			2,812					9,353
EU medical device regulations^(5)		-			-			(785	)		785			-			-			11					774
Debt refinancing costs^(6)		-			-			-			-			-			(418	)		47					371
Legal matters^(7)		-			(2,609	)		-			2,609			-			-			454					2,155
Gain on sale of product line^(8)		-			354			-			(354	)		-			-			(82	)				(272	)
Termination of distribution agreement^(9)		(9,866	)		-			-			(9,866	)		-			-			(141	)				(9,725	)
	$	775,308		$	539,438		$	55,099		$	180,771		$	31,087		$	-		$	37,539				$	112,145
Adjusted gross profit %		56.4	%
Amortization^(10)	$	6,000			(29,188	)		-			35,188			(5,646	)		-			9,898					30,936
As adjusted				$	510,250		$	55,099		$	215,959		$	25,441		$	-		$	47,437		24.9	%	$	143,081		$	4.59
% of sales					37.1	%		4.0	%		15.7	%
Year Ended December 31, 2024
	Gross Profit			Selling & Administrative Expense			Research & Development Expense			Operating Income			Interest Expense			Other Expense			Tax Expense			Effective Tax Rate		Net Income			Diluted EPS
As reported	$	733,032		$	478,280		$	54,426		$	200,326		$	37,297		$	-		$	30,606		18.8	%	$	132,423		$	4.25
% of sales		56.1	%		36.6	%		4.2	%		15.3	%
Legal matters^(7)		-			(5,097	)		-			5,097			-			-			806					4,291
Restructuring and related costs^(11)		235			(1,539	)		-			1,774			-			-			255					1,519
Product rationalization costs^(2)		1,414			-			-			1,414			-			-			203					1,211
Hurricane impact^(12)		955			-			-			955			-			-			829					126
Lease impairment^(13)		-			(606	)		-			606			-			-			526					80
Termination of distributor agreement^(14)		-			970			-			(970	)		-			-			(139	)				(831	)
Contingent consideration fair value adjustments^(3)		-			41,048			-			(41,048	)		-			-			(1,591	)				(39,457	)
	$	735,636		$	513,056		$	54,426		$	168,154		$	37,297		$	-		$	31,495				$	99,362
Adjusted gross profit %		56.3	%
Amortization^(10)	$	6,000			(28,629	)		-			34,629			(5,700	)		-			9,775					30,554
As adjusted				$	484,427		$	54,426		$	202,783		$	31,597		$	-		$	41,270		24.1	%	$	129,916		$	4.17
% of sales					37.1	%		4.2	%		15.5	%

(1) In 2025, the Company incurred costs related to the engagement of a consulting firm to evaluate and propose improvements to our manufacturing operations which are included in cost of sales. In addition, we incurred consulting fees and other charges related to operational optimization which are included in selling & administrative expense.

(2) In 2025, the Company wrote off inventory, equipment, tooling and patents to cost of goods sold related to the cancellation of planned new product lines and discontinuation of certain catalog numbers as a result of our operational optimization consultation and internal review. In addition, we wrote off the developed technology intangible asset to selling and administrative expense. In 2024, the Company wrote off inventory, tooling and equipment related to the cancellation of a planned new product line.

(3) In 2025 and 2024, the Company recorded income/(expense) related to the fair value adjustments of contingent consideration.

(4) In 2025, the Company incurred cash and stock-based compensation costs related to advisory services provided by our former Chief Executive Officer.

(5) In 2025, the Company incurred costs to comply with the European Union's Medical Device Regulations (MDR).

(6) In 2025, the Company incurred costs related to a loss on early extinguishment and third-party fees associated with the eighth amended and restated senior credit agreement.

(7) In 2025 and 2024, the Company incurred costs for third party services pertaining to potential issues with certain royalty payments to design surgeons.

(8) In 2025, the Company recognized a gain on the sale of a product line.

(9) In 2025, the Company incurred income related to the early termination of an agreement granting the Company exclusive distribution rights.

(10) Includes amortization of intangible assets and deferred financing fees.

(11) In 2024, the Company incurred severance costs related to the elimination of certain positions.

(12) In 2024, the Company incurred costs due to the impact of Hurricane Milton on our Largo, FL facility. These costs were mainly comprised of emergency pay to employees and plant underutilization due to abnormally low production.

(13) In 2024, the Company recorded lease impairment expense related to a storage facility no longer utilized.

(14) In 2024, the Company recorded an accrual adjustment related to the previous termination of a distributor agreement.

Reconciliation of Reported Net Income to EBITDA & Adjusted EBITDA
(in thousands, unaudited)
	Three Months Ended						Year Ended
	December 31,						December 31,
		2025			2024			2025			2024
Net income	$	16,739		$	33,754		$	47,055		$	132,423
Provision for income taxes		12,514			9,888			24,062			30,606
Interest expense		7,370			8,857			31,087			37,297
Depreciation		4,066			4,199			17,143			16,605
Amortization		14,784			13,807			57,138			55,252
EBITDA	$	55,473		$	70,505		$	176,485		$	272,183
Stock-based compensation		4,972			6,222			20,841			25,558
Contingent consideration fair value adjustments		19,446			1,219			22,951			(41,048	)
Product rationalization costs		4,830			-			24,483			1,414
Operational optimization costs		4,657			-			25,376			-
EU medical device regulations		785			-			785			-
Legal matters		60			531			2,609			5,097
Restructuring and related costs		-			-			-			1,774
Executive transition costs		-			-			12,165			-
Debt refinancing costs		-			-			418			-
Gain on sale of product line		-			-			(354	)		-
Hurricane impact		-			955			-			955
Lease impairment		-			606			-			606
Termination of distribution agreement		(9,866	)		-			(9,866	)		-
Termination of distributor agreement		-			-			-			(970	)
Adjusted EBITDA	$	80,357		$	80,038		$	275,893		$	265,569
EBITDA Margin
EBITDA		14.9	%		20.4	%		12.8	%		20.8	%
Adjusted EBITDA		21.5	%		23.1	%		20.1	%		20.3	%

About CONMED Corporation

CONMED is a medical technology company that provides devices and equipment for surgical procedures. The Company’s products are used by surgeons and other healthcare professionals in a variety of specialties including orthopedics, general surgery, gynecology, thoracic surgery, and gastroenterology. For more information, visit www.conmed.com.

Forward-Looking Statements

This press release and associated conference call may contain forward-looking statements based on certain assumptions and contingencies that involve risks and uncertainties, which could cause actual results, performance, or trends to differ materially from those expressed in the forward-looking statements herein or in previous disclosures. For example, in addition to general industry and economic conditions, factors that could cause actual results to differ materially from those in the forward-looking statements may include, but are not limited to the risk factors discussed in the Company's Annual Report on Form 10-K for the full year ended December 31, 2024, listed under the heading Forward-Looking Statements in the Company’s most recently filed Form 10-Q and other risks and uncertainties, which may be detailed from time to time in reports filed by CONMED with the SEC. Any and all forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and relate to the Company’s performance on a going-forward basis. The Company believes that all forward-looking statements made by it have a reasonable basis, but there can be no assurance that management’s expectations, beliefs or projections as expressed in the forward-looking statements will actually occur or prove to be correct.

Supplemental Information - Reconciliation of GAAP to Non-GAAP Financial Measures

The Company supplements the reporting of its financial information determined under generally accepted accounting principles in the United States (GAAP) with certain non-GAAP financial measures, including percentage sales growth in constant currency; adjusted gross profit; cost of sales excluding specified items; adjusted selling and administrative expenses; adjusted research and development expense; adjusted operating income; adjusted interest expense; adjusted other expense; adjusted income tax expense; adjusted effective income tax rate; adjusted net income and adjusted diluted net earnings per share (EPS). The Company believes that these non-GAAP measures provide meaningful information to assist investors and shareholders in understanding its financial results and assessing its prospects for future performance. Management believes percentage sales growth in constant currency and the other adjusted measures described above are important indicators of its operations because they exclude items that may not be indicative of, or are unrelated to, its core operating results and provide a baseline for analyzing trends in the Company’s underlying business. Further, the presentation of EBITDA is a non-GAAP measurement that management considers useful for measuring aspects of the Company’s cash flow. Management uses these non-GAAP financial measures for reviewing the operating results and analyzing potential future business trends in connection with its budget process and bases certain management incentive compensation on these non-GAAP financial measures.

Net sales on a constant currency basis is a non-GAAP measure. The Company analyzes net sales on a constant currency basis to better measure the comparability of results between periods. To measure percentage sales growth in constant currency, the Company removes the impact of changes in foreign currency exchange rates that affect the comparability and trend of net sales. To measure earnings performance on a consistent and comparable basis, the Company excludes certain items that affect the comparability of operating results and the trend of earnings. These adjustments are irregular in timing, may not be indicative of past and future performance and are therefore excluded to allow investors to better understand underlying operating trends.

Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These adjusted financial measures should not be considered in isolation or as a substitute for reported sales growth, gross profit, cost of sales, selling and administrative expenses, research and development expense, operating income, interest expense, other expense, income tax expense, effective income tax rate, net income and diluted net earnings per share, the most directly comparable GAAP financial measures. These non-GAAP financial measures are an additional way of viewing aspects of the Company’s operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures above, provide a more complete understanding of the business. The Company strongly encourages investors and shareholders to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.

We are unable to present a quantitative reconciliation of our expected diluted net earnings per share to expected adjusted diluted net earnings per share as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of acquisition, integration and other charges. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our consolidated condensed statements of income.