Avanos Medical Q2 revenue up 1.9% YoY to $175mln.

• Avanos Medical reported Q2 2025 financial results • Total net sales increased 1.9% YoY to $175.0 million • Net loss was $76.8 million, compared to net income of $4.3 million last year • Adjusted net income was $7.9 million, down from $15.8 million • Company expects to achieve its 2025 financial guidance ranges • CEO David Pacitti cited healthy performance in Specialty Nutrition Systems and Pain Management & Recovery segments • Strong execution and progress against transformation priorities

Avanos Medical Inc. (AVNS) reported its second-quarter 2025 financial results on August 5, 2025, with a mix of positive and challenging outcomes. The company's total net sales increased by 1.9% year-over-year (YoY) to $175.0 million, driven by strong performance in the Specialty Nutrition Systems (SNS) segment. However, the company reported a net loss of $76.8 million, compared to net income of $4.3 million in the same period last year. Adjusted net income was $7.9 million, down from $15.8 million in the prior year.

CEO David Pacitti highlighted the company's healthy performance in both the SNS and Pain Management & Recovery (PM&R) segments, noting that these segments delivered above-market results. The SNS segment achieved net sales of $102.7 million, an increase of $5.0 million compared to the prior year period, with 4.4% volume growth. The PM&R segment reported net sales of $61.0 million, an increase of $1.7 million, with volume growth partially offset by strategic decisions not to pursue certain revenue streams.

Despite the positive sales growth, Avanos Medical faced several challenges. Gross margin decreased to 52.6% from 55.7% in the prior year period, primarily due to higher tariffs and lower pricing for hyaluronic acid (HA) products. Additionally, the company recorded a non-cash goodwill impairment charge of $77.0 million in the PM&R segment, impacting adjusted EBITDA.

Looking ahead, Avanos Medical expects to achieve its 2025 financial guidance ranges, driven by continued strong execution and progress against its transformation priorities. The company's cash flow from operations for the six months ended June 30, 2025, was $32.5 million, compared to $19.8 million in the prior year period.

References:
[1] https://www.biospace.com/press-releases/avanos-medical-inc-to-webcast-conference-call-discussing-second-quarter-2025-financial-results
[2] https://www.marketscreener.com/news/avanos-medical-inc-announces-second-quarter-2025-results-ce7c5edbd18af620