Integra LifeSciences (IART) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $391.9 million, up 2.4% reported and 1.3% organic year-over-year, exceeding guidance due to strong demand and improved supply chain execution.

• Adjusted EPS rose to $0.54 from $0.41, surpassing guidance, supported by revenue growth, transformation savings, and tariff benefits.

• Leadership transition: Stuart Essig appointed President/CEO and Michael McBreen as Chief Commercial Officer to enhance commercial focus.

• Operational improvements and transformation initiatives drove supply reliability, product relaunches, and cost management.

• Net loss for Q1 2026 was $(4.6) million, or $(0.06) per share, improving from $(25.3) million in Q1 2025, primarily due to reduced quality and operational issues.

Financial highlights

• Q1 2026 revenue: $391.9 million, up 2.4% year-over-year; adjusted EPS: $0.54, up 31.7% year-over-year.

• Adjusted EBITDA margin: 19.4% (up 280 bps); adjusted gross margin: 64.1% (up 190 bps); GAAP gross margin: 55.4%.

• Operating income: $11.5 million, compared to a loss of $(15.5) million in Q1 2025.

• Operating cash flow: $9.8 million, a $21 million improvement year-over-year; free cash flow: $(5.0) million.

• Net debt: $1.6 billion; total liquidity: $488 million; leverage ratio: 4.1x.

Outlook and guidance

• Full-year 2026 revenue guidance maintained at $1.66–$1.7 billion (0.8%–3.3% organic growth); adjusted EPS guidance raised to $2.40–$2.50.

• Q2 2026 revenue expected at $410–$425 million; adjusted EPS $0.44–$0.52.

• Sequential revenue increases expected through the year, with typical seasonality and supply improvements.

• Gross margin for 2026 expected at 62.5%, with quarterly variability due to tariffs and manufacturing variances.

• Braintree facility expected operational by June 2026; PMA approvals for key products anticipated in 2027.