Avanos Medical 2025 Q3 Earnings Net Loss Swings 133.3% Negative as Revenue Grows 4.3%

Avanos Medical (AVNS) reported Q3 2025 earnings on Nov 5, 2025, , . , despite a net loss of $1.4M, a 132.6% deterioration from $4.3M profit in 2024 Q3.

Revenue

, driven by robust performance in its Specialty Nutrition Systems (SNS) segment. , reflecting strong demand for enteral feeding and neonate solutions. The Pain Management and Recovery (PM&R) segment contributed $59 million, , while surgical pain and recovery products declined. , and the Corporate and Other segment accounted for $4.80 million.

Earnings/Net Income

, . , . Despite revenue growth, the EPS and net loss figures highlight operational challenges, including tariff impacts and reduced sales in surgical pain and recovery.

Post-Earnings Price Action Review;

Following the earnings report, , reflecting investor concerns over the net loss and margin pressures. , underscoring market skepticism despite raised revenue guidance. The price action suggests a focus on near-term profitability hurdles and the company’s ability to mitigate tariff-related costs through cost controls and supply chain adjustments.

CEO Commentary

, CEO, emphasized double-digit growth in SNS and progress in PM&R despite a challenging tariff environment. The acquisition of Nexus Medical is expected to enhance NICU/PICU care, aligning with strong demand for long-term feeding products and RFA solutions. Pacitti acknowledged reduced sales in surgical pain and recovery but highlighted operational resilience and strategic alignment with market needs.

Guidance

. The guidance assumes successful mitigation of tariffs via cost controls, pricing, and supply chain adjustments. However, management warned that higher-than-expected tariffs or mitigation failures could materially impact results.

Additional News

Avanos Medical’s acquisition of Nexus Medical is expected to be immediately accretive to revenue and earnings per share, expanding its presence in neonatal and pediatric markets. The company also announced the divestiture of its (HA) product line to Channel-Markers Medical, LLC, focusing strategic resources on core SNS and PM&R segments. Additionally, , with streamlining of R&D and management structures to expedite product development and decision-making.

, which continue to weigh on profitability. Higher capital expenditures in 2025 are anticipated to support supply chain initiatives and accelerate its exit from China, potentially impacting free cash flow. Despite these challenges, Avanos remains optimistic about its strategic acquisitions and cost discipline driving long-term value.