Integra LifeSciences : Q1’2026 Earnings Call
IART
Published on 05/05/2026 at 06:21 am EDT
P R E S E N T A T I O N
Q 1 2026 May 5, 2026
In addition to our GAAP results, we provide certain non-GAAP measures, including organic revenues, adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted EBITDA margin, adjusted net income, adjusted gross profit, adjusted gross margin, adjusted earnings per diluted share, free cash flow, adjusted free cash flow conversion, and net debt. Organic revenues consist of total revenues excluding the effects of currency exchange rates, revenues from current-period acquisitions and product divestitures. Adjusted EBITDA consists of GAAP net income excluding: (i) depreciation and amortization; (ii) other income (expense); (iii) interest income and expense;
(iv) income tax expense (benefit); (v) impairment charges; and (vi) those operating expenses also excluded from adjusted net income. The measure of adjusted EBITDA margin is calculated by dividing adjusted EBITDA by GAAP revenues. The measure of adjusted net income consists of GAAP net income, excluding: (i) structural optimization charges; (ii) divestiture, acquisition and integration-related charges; (iii) EU Medical Device Regulation-related charges; (iv) charges related to the voluntary global recall of products manufactured at the Company's Boston, Massachusetts facility and distributed between March 1, 2018 and May 22, 2023, as previously disclosed in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on May 23, 2023 (the "recall") and the transition of Boston-related manufacturing operations to the Company's Braintree, Massachusetts facility; (v) intangible asset amortization expense; (vi) income tax impact from adjustments; and (vii) impairment charges. The measure of adjusted gross margin is calculated by dividing adjusted gross profit by total revenues. Adjusted gross profit consists of GAAP gross profit adjusted for: (i) structural optimization charges; (ii) divestiture, acquisition and integration-related charges; (iii) charges related to the recall and the transition of Boston-related manufacturing operations to the Company's Braintree, Massachusetts facility; (iv) EU Medical Device Regulation-related charges; and (v) intangible asset amortization expense. The adjusted earnings per diluted share measure is calculated by dividing adjusted net income attributable to diluted shares by diluted weighted average shares outstanding. The measure of free cash flow consists of GAAP net cash provided by operating activities less purchases of property and equipment. The adjusted free cash flow conversion measure is calculated by dividing free cash flow by adjusted net income. The measure of net debt consists of GAAP total debt (excluding deferred financing costs) less short-term investments, cash and cash equivalents.
Reconciliations of GAAP revenues to organic revenues, GAAP net income to adjusted EBITDA and adjusted net income, GAAP gross profit to adjusted gross profit, GAAP gross margin to adjusted gross margin, and GAAP earnings per diluted share to adjusted earnings per diluted share all for the quarters and years ended December 31, 2026 and 2024, the GAAP total debt to net debt for the years ended December 31, 2026 and 2024, and the GAAP operating cash flow to free cash flow and adjusted free cash flow conversion for the quarters and years ended December 31, 2026 and 2025, appear in the financial tables in this presentation. The Company is providing forward-looking guidance regarding organic revenues, adjusted EBITDA, adjusted gross margins, and adjusted earnings per diluted share but is not providing a reconciliation to the most directly comparable forward-looking GAAP financial measures because certain GAAP expense items and the impact of changes in foreign exchange rates are highly variable and management is unable to predict them with reasonable certainty and without unreasonable effort. Specifically, the actual impact of changes in foreign exchange rates and the financial impact and timing of divestitures, acquisitions, integrations, structural optimization, efforts to comply with the EU Medical Device Regulation, and income tax impact from adjustments are uncertain, depend on various dynamic factors and are not reasonably ascertainable at this time. The unavailable information could have a material impact on GAAP results.
The Company believes that the presentation of organic revenues and the other non-GAAP measures provide important supplemental information to management and investors regarding financial and business trends relating to the Company's financial condition and results of operations. For further information regarding why Integra believes that these non-GAAP financial measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the Company's Current Report on Form 8-K regarding this presentation filed today with the Securities and Exchange
Commission. This Current Report on Form 8-K is available on the SEC's website at https://www.sec.gov or on our website at https://www.integralife.com.
Transformation enabled strong execution and consistent, predictable performance
Q1 2026 HIGHLIGHTS
FULL YEAR OUTLOOK
$392M
Reported Revenue
+ Exceeded top end of guidance
+ Reflects product demand, improved supply, increased visibility
+ Strong performance in Tissue Reconstruction
$1.66 - $1.70B
Reported Revenue
Maintained
$2.40 - $2.50
Adj. EPS
Updated from $2.30 - $2.40
$0.54
Adj. EPS
+ Exceeded top end of guidance
+ Supported by revenue outperformance
+ Tariff favorability
+ Appointed Stuart Essig, Chief Executive Officer and Mike McBreen, Chief Commercial Officer
OUR STRATEGIC IMPERATIVES
Deliver best-in-class quality
Drive supply chain reliability
Accelerate growth
Ignite innovation
TRANSFORM TO EXCEL AND CONSISTENTLY DELIVER OUR FINANCIAL COMMITMENTS
Delivered revenue and adjusted EPS above guidance range
Q1 REVENUE (in $M)
$392 $383
Q1 26 Q1 25
$0.54 +31.7% vs. 2025
ADJUSTED EPS
19.4% +280 bps vs. 2025
ADJUSTED EBITDA MARGIN
64.1% +190 bps vs. 2025
ADJUSTED GROSS MARGIN
$9.8M and (12.1%) FCF Conversion
OPERATING CASH FLOW
2.4% vs. 2025
REPORTED
1.3% vs. 2025
ORGANIC
Continued demand in Neuro offset by Instrument timing and ENT
Q1 2026 Revenue Composition
ENT
13.3%
Neuro
70.0%
Q1 2026 REVENUE
REPORTED
$283.1M
Q126
$280.7M
Q125
0.9%
Growth
ORGANIC1
$279.0M
Q126
$280.7M
Q125
(0.6%)
Growth
Q1 2026 GROWTH AND PERFORMANCE DRIVERS 2
NEURO INSTRUMENTS ENT3 INTERNATIONAL
1.9% (7.7%) (3.8%) LOW SINGLE-
DIGIT DECLINE
Growth driven by Certas® Plus, CUSA® and Bactiseal®
Decline due to order timing Growth in MicroFrance® ENT
instruments offset by declines in other products
Continued demand strength offset by
supply timing
Q12026 excludes $4.1M in foreign exchange; Comparisons are to prior year, taking into account some shifts across the portfolio
Percentages based on organic revenue; Commentary represents organic performance; Comparisons are to prior year
Strong wound reconstruction performance and private label growth
Q1 2026 Revenue Composition
Wound Reconstruction Solutions
73.2%
REPORTED
$108.8M
$102.0M
6.7%
Q126
Q125
Growth
ORGANIC1
$108.4M
Q126
$102.0M
Q125
6.4%
Growth
Q1 2026 REVENUE
Q1 2026 GROWTH AND PERFORMANCE DRIVERS 2
WOUND RECONSTRUCTION SOLUTIONS PRIVATE LABEL INTERNATIONAL
6.2% 7.1% HIGH SINGLE-DIGIT DECLINE
Growth driven by double-digit growth in Integra Skin, DuraSorb® and the relaunch of PriMatrix® partially offset by MediHoney®
Primarily due to favorable prior year comp
Decline driven by Medihoney
IART Q12026 Earnings Presentation
1 Q12026 excludes $0.3M in foreign exchange; Comparisons are to prior year; taking into account some shifts across the portfolio
2 Percentages based on organic revenue; Commentary represents organic performance; Comparisons are to prior year
~$21 million improvement in Q1 2026 operating cash flow vs prior year
FCF
Capex
$102.4
$71.4
($11.3)
$9.8
67.4
(5.0)
4.1
Q1'25
Q1'26
Q1'25 TTM
Q1'26 TTM
(15.5)
117.9
(126.9%) (12.1%) (8.4%) 2.3%
OPERATING CASH FLOW, FREE CASH FLOW ($M) & ADJUSTED FCF CONVERSION (%)
SUMMARY BALANCE SHEET ($M)
12/31/25
3/31/26
CASH AND CASH EQUIVALENTS
$235
$237
SHORT-TERM INVESTMENTS
$29
$29
TOTAL DEBT
$1,859
$1,868
NET DEBT
$1,596
$1,603
AVAILABLE CREDIT
$252
$222
TOTAL AVAILABLE LIQUIDITY
$516
$488
28.9
14.8
(40.2)
CONSOLIDATED TOTAL LEVERAGE 4.5X 4.1X RATIO
Adjusted FCF Conversion
IART Q12026 Earnings Presentation
Note: Adj. FCF conversion is a non-GAAP financial measure; Numbers may not add due to rounding
Change in net debt driven by Acclarent acquisition
Guidance reflects strengthening the foundation and solid underlying demand
Q2 2026
$410M - $425M REPORTED
Reported Growth (1.3%) to 2.3%
Organic Growth (1.5%) to 2.1%
$0.44 - $0.52 ADJUSTED EPS
Q2 2026 REPORTED REVENUE GUIDANCE BRIDGE ($M)
Organic Growth (at mid-point)
$416
~0.3%
~0.2%
$410 - $425
Q2 2025 Organic Growth FX Q2 2026 Outlook
FY 2026
$1.662B - $1.702B REPORTED
Reported Growth 1.6% to 4.1%
Organic Growth 0.8% to 3.3%
$2.40 - $2.50 ADJUSTED EPS
FY 2026 REPORTED REVENUE GUIDANCE BRIDGE ($M)
Organic Growth (at mid-point)
$1,635
~2.0%
~0.8%
$1,662 - $1,702
2025 Organic Growth FX 2026 Outlook
77 - 78
MILLION
AVG. SHARES
OUTSTANDING
1.16
158
6.90
19.0%
FX RATES
EUR/USD
USD/JPY
USD/CNY
ADJ. TAX RATE
FY 2026
REVENUE OUTLOOK
~$26M step-up in the second quarter driven by normal seasonality, improvement in supply and instrument timing
Modest sequential growth in the third quarter, and a further increase in the fourth quarter
ADJUSTED GROSS MARGINS EXPECTED TO INCREASE 60 BPS VS. 2025
Driven by margin improvement initiatives and efficiencies
ADJUSTED EBITDA EXPECTED TO IMPROVE 100 BPS VS. 2025
Due to gross margin improvement and additional cost out initiatives
KEY TARIFF ASSUMPTIONS (included in guidance)
Updated to reflect 10 cent favorability resulting from the IEEPA supreme court ruling impact on the Q1 results versus February guidance
Assumes 10% Section 122 tariffs remain in effect for 150 days through July 2026
Projects a transition back to IEEPA-level tariffs under Section 232 or Section 301 for balance of year
Reflects a 14% tariff applied on U.S. exports to China
Non-GAAP Reconciliations
% of Revenue
Total Revenues
Gross Margin
Adj. Gross Margin(1)
Net Income
Adj. Net Income(1)
Adj. EBITDA Margin(1)
Diluted Shares Out (M)
Earnings per Share
Adj. Earnings per Share(1)
Q1 2026
Q1 2025
Change
$391.9
$382.7
2.4%
55.4%
50.8%
+460BPS
64.1%
62.2%
+190BPS
($4.6)
($25.3)
81.7%
$41.6
$31.7
31.3%
19.4%
16.6%
+280BPS
77.2
76.6
0.8%
($0.06)
($0.33)
81.8%
$0.54
$0.41
31.7%
Note: Numbers may not add due to rounding
(1) These are non-GAAP financial measures. Please see the slides appearing below for a reconciliation to the nearest GAAP measure.
Q1 2026
Q1 2025
$198.2
$190.9
$47.2
$51.0
$37.7
$38.8
$283.1
$280.7
$79.6
$74.8
$29.1
$27.2
$108.8
$102.0
$391.9
$382.7
(In millions)
Neurosurgery
Instruments
ENT
Total Specialty Surgery
Wound Reconstruction and Care
Private Label
Total Tissue Reconstruction
Total Reported Revenues
Impact of changes in currency exchange
Revenues from acquisitions(1)
Total Organic Revenues
Organic Revenue Gro
($4.5)
$0.0
$0.0
$0.0
$387.5
$382.7
1.3%
Note: Numbers may not add due to rounding
(1) Revenue from acquisitions
(In millions)
Net Cash from Operating Activities
Purchases of Property and Equipment
Free Cash Flow
Adjusted Net Income
Adjusted Free Cash Flow Conversion
Q1 2026
Q1 2025
$9.8
($11.3)
($14.8)
($28.9)
($5.0)
($40.2)
$41.6
$31.7
(12.1%)
(126.9%)
TTM 2026
TTM 2025
$71.4
$102.4
($67.4)
($117.9)
$4.1
($15.5)
$181.3
$185.7
2.3%
(8.4%)
Note: Numbers may not add due to rounding
(In millions)
GAAP Net Income
Depreciation
Intangible asset amortization
Other (income), net
Interest expense, net
Income tax expense/(benefit)
Acquisition, divestiture and integration-related charges(1)
Structural optimization charges
Boston Recall/Braintree Transition
EU Medical Device Regulation
Total of non-GAAP adjustments:
Adjusted EBITDA
Total Revenues
Adjusted EBITDA Margin
Q1 2026
Q1 2025
($4.6)
($25.3)
11.2
10.5
27.0
26.5
(4.5)
(0.3)
18.1
14.4
2.2
(4.7)
1.8
6.2
9.3
10.7
7.7
14.8
7.9
10.9
80.8
88.9
$ 76.2
$ 63.6
391.9
382.7
19.4%
16.6%
Note: Numbers may not add due to rounding
(1) Acquisition, divestiture and integration-related charges are associated with the Acclarent acquisitions and includes banking, legal, consulting, systems, and other income and expenses.
(In millions)
Q1 2026
Q1 2025
GAAP Net Income
($4.6)
($25.3)
Acquisition, divestiture and integration-related charges(1)
1.8
6.2
Structural optimization charges
9.3
10.7
Boston Recall/Braintree Transition
7.7
14.8
EU Medical Device Regulation
7.9
10.9
Intangible asset amortization expense
27.0
26.5
Estimated income tax impact from adjustments and other items
(7.5)
(12.2)
Total of non-GAAP adjustments:
46.2
56.9
Adjusted Net Income
$41.6
$31.7
Adjusted Diluted Net Income per Share
$ 0.54
$ 0.41
Weighted average common shares outstanding for diluted net income
from continuing operations per share
77.2
76.6
Note: Numbers may not add due to rounding
(1) Acquisition, divestiture and integration-related charges are associated with the Acclarent acquisitions and includes banking, legal, consulting, systems, and other income and expenses.
(In millions)
Reported Gross Profit
Structural optimization charges
Acquisition, divestiture and integration-related charges(1)
Boston Recall/Braintree Transition
EU Medical Device Regulation
Intangible asset amortization expense
Adjusted Gross Profit
Total Revenues
Adjusted Gross Margin
Q1 2026
Q1 2025
$217.0
$194.4
2.6
4.3
0.0
0.7
7.1
14.4
1.2
1.4
23.2
22.8
$251.1
$237.9
$391.9
$382.7
64.1%
62.2%
Note: Numbers may not add due to rounding
(1) Acquisition, divestiture and integration-related charges are associated with the Acclarent acquisitions and includes banking, legal, consulting, systems, and other income and expenses.
(In millions)
Reported SG&A
Structural optimization charges
Acquisition, divestiture and integration-related charges(1)
Boston Recall/Braintree Transition
EU Medical Device Regulation
Adjusted SG&A
Total Revenues
Adjusted SG&A (% of Revenues)
Q1 2026
Q1 2025
$178.2
$181.5
6.1
6.4
1.4
5.8
0.6
0.4
3.3
4.8
$166.8
$164.0
$391.9
$382.7
42.6%
42.9%
Note: Numbers may not add due to rounding
(1) Acquisition, divestiture and integration-related charges are associated with the Acclarent acquisitions and includes banking, legal, consulting, systems, and other income and expenses.
Capitalization
($ in millions)
3/31/2026
12/31/2025
Short-term borrowings under senior credit facility
38.8
38.8
Long-term borrowings under senior credit facility
1,750.3
1,729.6
Borrowings under securitization facility
76.4
87.8
Convertible securities
-
-
Deferred financing costs netted in the above
2.9
3.3
Short-term Investments
(28.7)
(28.7)
Cash & Cash Equivalents
(236.8)
(235.0)
Net Debt
$ 1,602.8
$ 1,595.6
Note: Numbers may not add due to rounding
Disclaimer
Integra LifeSciences Holdings Corporation published this content on May 05, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 05, 2026 at 10:20 UTC.