CONMED Corporation Announces First Quarter 2026 Financial Results

Published: 2026-04-29 16:08:10 ET CNMD

Published on 04/29/2026 at 04:08 pm EDT

CONMED Corporation (NYSE: CNMD) today announced financial results for the first quarter ended March 31, 2026.

First Quarter 2026 Highlights

“Our 2025 momentum continued in the first quarter as we delivered revenue and adjusted earnings ahead of our expectations,” said Patrick J. Beyer, CONMED’s President and Chief Executive Officer. “We continue to concentrate our resources and investment on our higher-growth, higher-margin areas: minimally invasive surgery, smoke evacuation, and orthopedic soft tissue repair.”

2026 Outlook

Based on the Company’s first quarter performance, management is raising its outlook for full-year 2026 organic revenue growth on a constant currency basis. The Company now expects year-over-year organic constant currency revenue growth, which excludes gastroenterology product sales, of approximately 5.0% to 6.5% compared to the prior guidance range of 4.5% to 6.0%. Full-year 2026 reported revenue is now expected to be in the range of $1.350 billion to $1.375 billion, compared to prior guidance of $1.345 billion to $1.375 billion. The updated revenue outlook reflects an estimated 40 to 50 basis points of favorable foreign exchange impact, compared to the prior assumption of 0 to 50 basis points of favorable impact. This updated guidance also reflects an estimated $14.5 million to $17.5 million in revenue from gastroenterology products, reduced from the prior guidance of $21.0 million to $25.0 million due to the divestiture of the remaining gastroenterology portfolio.

The Company continues to expect full-year adjusted diluted net earnings per share(2) in the range of $4.30 to $4.45. The reaffirmed outlook reflects stronger underlying operating performance, largely offset by higher-than-previously anticipated interest expense due to the planned refinancing of the Company's debt during 2026.

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 first quarter 2026 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

March 31,

2026

2025

Net sales

317,046

321,256

Cost of sales

133,599

143,504

Gross profit

183,447

177,752

% of sales

57.9

55.3

Selling & administrative expense

141,699

148,847

Research & development expense

16,333

12,947

Income from operations

25,415

15,958

% of sales

8.0

5.0

Interest expense

7,060

8,286

Income before income taxes

18,355

7,672

Provision for income taxes

4,527

1,636

Net income

13,828

6,036

Basic EPS

0.45

0.19

Diluted EPS

0.45

0.19

Basic shares

30,588

30,973

Diluted shares

30,621

31,151

Sales Summary

(in millions, unaudited)

Three Months Ended March 31,

% Change

Domestic

International

2026

2025

Reported

Impact of

Foreign

Currency

Constant

Currency

Reported

Impact of

Foreign

Currency

Constant

Currency

Orthopedic Surgery

147.7

138.3

6.8

-2.3

4.5

5.5

7.6

-3.7

3.9

General Surgery

169.3

183.0

-7.4

-1.1

-8.5

-10.4

0.1

-3.9

-3.8

317.0

321.3

-1.3

-1.6

-2.9

-5.8

4.7

-3.7

1.0

Single-use Products

270.0

276.3

-2.3

-1.6

-3.9

-8.1

6.2

-4.0

2.2

Capital Products

47.0

45.0

4.6

-1.5

3.1

12.4

-2.0

-2.8

-4.8

317.0

321.3

-1.3

-1.6

-2.9

-5.8

4.7

-3.7

1.0

Domestic

173.0

183.8

-5.8

0.0

-5.8

International

144.0

137.5

4.7

-3.7

1.0

317.0

321.3

-1.3

-1.6

-2.9

Reconciliation of Reported Net Income to Adjusted Net Income

(in thousands, except per share amounts, unaudited)

Three Months Ended March 31, 2026

Gross Profit

Selling & Administrative Expense

Research & Development Expense

Operating Income

Interest Expense

Tax Expense

Effective Tax Rate

Net Income

Diluted EPS

As reported

183,447

141,699

16,333

25,415

7,060

4,527

24.7

13,828

0.45

% of sales

57.9

44.7

5.2

8.0

Operational optimization costs(1)

379

(7,526

)

7,905

1,801

6,104

Executive transition costs(2)

(3,342

)

3,342

761

2,581

EU medical device regulations(3)

(1,167

)

1,167

266

901

Contingent consideration fair value adjustments(4)

(722

)

722

164

558

Termination of distribution agreement(5)

(1,864

)

(1,864

)

(425

)

(1,439

)

Gain on sale of product line(6)

3,916

(3,916

)

(892

)

(3,024

)

181,962

134,025

15,166

32,771

7,060

6,202

19,509

Adjusted gross profit %

57.4

Amortization(7)

1,500

(7,261

)

8,761

(1,276

)

2,442

7,595

As adjusted

126,764

15,166

41,532

5,784

8,644

24.2

27,104

0.89

% of sales

40.0

4.8

13.1

Three Months Ended March 31, 2025

Gross Profit

Selling & Administrative Expense

Research & Development Expense

Operating Income

Interest Expense

Tax Expense

Effective Tax Rate

Net Income

Diluted EPS

As reported

177,752

148,847

12,947

15,958

8,286

1,636

21.3

6,036

0.19

% of sales

55.3

46.3

4.0

5.0

Operational optimization costs(1)

3,410

(490

)

3,900

901

2,999

Executive transition costs(2)

(12,165

)

12,165

2,812

9,353

Contingent consideration fair value adjustments(4)

(3,962

)

3,962

916

3,046

Gain on sale of product line(6)

354

(354

)

(82

)

(272

)

Legal matters(8)

(1,037

)

1,037

240

797

181,162

131,547

12,947

36,668

8,286

6,423

21,959

Adjusted gross profit %

56.4

Amortization(7)

1,500

(7,172

)

8,672

(1,443

)

2,455

7,660

As adjusted

124,375

12,947

45,340

6,843

8,878

23.1

29,619

0.95

% of sales

38.7

4.0

14.1

(1) In 2026 and 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, legal fees and other charges related to operational optimization which are included in selling & administrative expense.

(2) The Company incurred cash and stock-based compensation costs related to advisory services provided by our former Chief Financial Officer and Chief Executive Officer in 2026 and 2025, respectively.

(3) In 2026, the Company incurred costs to comply with the European Union's Medical Device Regulations (MDR).

(4) In 2026 and 2025, the Company recorded expense related to the fair value adjustments of contingent consideration.

(5) In 2026, the Company incurred income related to the early termination of an agreement granting the Company exclusive distribution rights.

(6) In 2026, the Company recognized a gain on the sale of certain assets related to gastroenterology products. In 2025, the Company recognized a gain on the sale of a product line.

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

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

Reconciliation of Reported Net Income to EBITDA & Adjusted EBITDA

(in thousands, unaudited)

Three Months Ended

March 31,

2026

2025

Net income

13,828

6,036

Provision for income taxes

4,527

1,636

Interest expense

7,060

8,286

Depreciation

4,174

4,235

Amortization

14,663

14,018

EBITDA

44,252

34,211

Stock based compensation

4,783

6,381

Operational optimization costs

7,905

3,900

Executive transition costs

3,342

12,165

EU medical device regulations

1,167

Contingent consideration fair value adjustments

722

3,962

Termination of distribution agreement

(1,864

)

Gain on sale of product line

(3,916

)

(354

)

Legal matters

1,037

Adjusted EBITDA

56,391

61,302

EBITDA Margin

EBITDA

14.0

10.6

Adjusted EBITDA

17.8

19.1

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, and thoracic surgery. 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, 2025 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 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, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260429949862/en/