CONMED 2025 Q3 Earnings Net Income Plummets 94.2% Despite Revenue Beat

, . However, net income fell sharply to $2.86 million, . , shifting capital allocation from dividends.

Revenue

CONMED’s revenue rose 6.7% year-over-year to $337.93 million, with Orthopedic Surgery contributing $138.2 million (5.9% growth) and General Surgery generating $199.7 million (7.3% growth). International sales surged 7.8% to $143.9 million, while domestic revenue increased 5.9% to $194 million. The performance was driven by strong adoption of BioBrace and AirSeal products, with General Surgery benefiting from expanded legislative mandates and surgeon engagement.

Earnings/Net Income

The company’s EPS plummeted 94.3% to $0.09 in Q3 2025, compared to $1.59 in 2024 Q3, while net income dropped to $2.86 million from $48.98 million. Elevated operating expenses, including a $19.7 million write-off for canceled product lines, and inventory-related costs pressured profitability. The significant decline in EPS underscores operational challenges and margin compression.

Post-Earnings Price Action Review

The strategy of buying CONMED shares on the date of its revenue raise announcement and holding for 30 days showed favorable performance over the past three years, with a cumulative return of 24.8% outperforming the S&P 500’s 16.9%. Despite the stock’s recent underperformance—dropping 3.68% month-to-date—short-term traders may find opportunities in earnings-driven momentum.

CEO Commentary

CONMED’s Strategic Shift and Operational Focus

, President and CEO, emphasized progress in core growth platforms, stating, “ continues to be a cornerstone of our sports medicine strategy, with expanding clinical adoption across 70-plus procedures.” He highlighted General Surgery’s sustained momentum, particularly in Buffalo Filter and AirSeal, driven by legislative mandates and hospital protocol integration. Beyer announced a strategic shift from dividends to a $150 million share repurchase program, reflecting confidence in capital-efficient returns. , CFO, noted operational improvements, including record manufacturing volumes and SKU reductions, while cautioning about tariff headwinds.

Guidance

2025 Full-Year Outlook

, . , with adjusted gross margin anticipated in the mid-55% range, . The company remains focused on mitigating supply chain costs and operational efficiency, with a leverage ratio of 3.0x at quarter-end.

Additional News

Strategic Capital Reallocation and Operational Updates

CONMED suspended its dividend and prioritized a $150 million share repurchase program, aligning with industry trends of flexible capital deployment. The company also announced the non-renewal of its VIABIL® distribution agreement after 2026, . Operational challenges, , underscored the need for cost discipline. Management reiterated confidence in long-term growth drivers, particularly in BioBrace and AirSeal, while navigating near-term margin pressures.

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, . Analysts remain cautious, . While the company’s strategic shifts and product adoption bode well for long-term growth, .