Integra LifeSciences Reports Third Quarter 2026 Financial Results
INTEGRA LIFESCIENCES HOLDINGS CORP (IART) filed an SEC Form 8-K — Results of Operations and Financial Condition. News Release Integra LifeSciences Reports Third Quarter 2026 Financial Results PRINCETON, N.J., October 21, 2026 - Integra LifeSciences Holdings Corporation (Nasdaq: IART), a leading global medical technology company, today reported financial results for the third quarter ending
How this was made
The 30-second read
Why it matters
The earnings beat and debt refinancing improve the company's balance sheet, while guidance remains flat, suggesting limited upside but reduced downside risk.
Market read
The release provides fresh earnings data and guidance for a mid‑cap med‑tech firm, offering traders a basis for short‑term positioning.
What to watch
The $7 million flood impact and higher interest expense from the refinancing may dampen profitability more than reflected in the guidance.
Integra LifeSciences reports third-quarter revenue growth of 2.3%, adjusted EPS of $0.59, and maintains 2026 revenue and adjusted EPS guidance.
Revenue and adjusted EPS increased from the prior year and operating cash flow was strong, but Tissue Reconstruction declined, the Cincinnati disruption reduced revenue by approximately $7 million, gross margins declined, and fourth-quarter guidance calls for reported and organic revenue declines.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third-quarter total revenue, netGAAP | $411.2M | – | 2.3% |
| Third-quarter total organic revenuesnon-GAAP | $412.0M | – | 2.5% |
| Third-quarter cost of goods soldGAAP | 201.3M | – | – |
| Third-quarter research and developmentGAAP | 21.90M | – | – |
| Third-quarter selling, general and administrativeGAAP | 165.3M | – | – |
| Third-quarter intangible asset amortizationGAAP | 3.76M | – | – |
| Third-quarter total costs and expensesGAAP | 392.3M | – | – |
| Third-quarter reported gross profitGAAP | 209.9M | – | – |
| Third-quarter GAAP gross marginGAAP | 51.0% | – | – |
| Third-quarter adjusted gross profitnon-GAAP | $251.3M | – | – |
| Third-quarter adjusted gross marginnon-GAAP | 61.1 % | – | – |
| Third-quarter operating incomeGAAP | 18.9M | – | – |
| Third-quarter interest incomeGAAP | 5.00M | – | – |
| Third-quarter interest expenseGAAP | −22.96M | – | – |
| Third-quarter other income (expense), netGAAP | 14.72M | – | – |
| Third-quarter income (loss) before income taxesGAAP | 15.66M | – | – |
| Third-quarter provision (benefit) for income taxesGAAP | 812K | – | – |
| Third-quarter net income (loss)GAAP | $14.85M | – | – |
| Third-quarter diluted EPSGAAP | $0.19 | – | – |
| Third-quarter weighted average common shares outstandingGAAP | 78.58M | – | – |
| Third-quarter adjusted EBITDAnon-GAAP | $79.79M | – | – |
| Third-quarter adjusted EBITDA marginnon-GAAP | 19.4% of revenue | – | – |
| Third-quarter adjusted net incomenon-GAAP | $46.44M | – | – |
| Third-quarter adjusted diluted net income per sharenon-GAAP | $ 0.59 | – | – |
| Third-quarter weighted average common shares outstanding for diluted net income per sharenon-GAAP | 78.58M | – | – |
| Third-quarter net cash provided by operating activitiesGAAP | $95.98M | – | – |
| Third-quarter purchases of property and equipmentGAAP | −10.25M | – | – |
| Third-quarter free cash flownon-GAAP | $85.73M | – | – |
| Third-quarter adjusted free cash flow conversionnon-GAAP | 184.6 % | – | – |
| Nine-month net cash provided by operating activitiesGAAP | $128.6M | – | – |
| Nine-month net cash used in investing activitiesGAAP | −68.38M | – | – |
| Nine-month net cash used in provided by financing activitiesGAAP | −38.81M | – | – |
| Nine-month net increase (decrease) in cash and cash equivalentsGAAP | $17.21M | – | – |
| Net debt at September 30, 2026non-GAAP | $1.52B | – | – |
| Consolidated total leverage ratioother | 3.8x | – | – |
| Cash and cash equivalents at September 30, 2026GAAP | 252.3M | – | – |
| Short term investments at September 30, 2026GAAP | $59.67M | – | – |
| Trade accounts receivable, net at September 30, 2026GAAP | 249.0M | – | – |
| Inventories, net at September 30, 2026GAAP | 464.5M | – | – |
| Current and long-term borrowing under senior credit facility at September 30, 2026GAAP | 1.75B | – | – |
| Borrowings under securitization facility at September 30, 2026GAAP | 81.2M | – | – |
| Stockholders' equity at September 30, 2026GAAP | $1.07B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Specialty SurgeryResults were impacted by approximately $7 million related to flood damage at the Company’s Cincinnati facility. Neuro sales increased 6.5% on an organic basis, primarily driven by CereLink®, Certas® Plus, Bactiseal®, DuraSeal® and recovery in cranial perforators. Instruments declined (0.9%) on an organic basis due to order timing, while ENT declined (1.1%), largely due to a low-single digit decline in sinus balloons. | $304.1M | – | reported growth of 3.9% and an organic growth of 4.2% |
| Tissue ReconstructionWound reconstruction recorded a low-single digit decline, with strong growth in DuraSorb® and PriMatrix® offset by declines in MicroMatrix® and Integra Skin. Corporate Partnerships was approximately flat compared to the third quarter of last year. | $107.1M | – | reported and organic decline of (2.2)% |
| NeurosurgerySales increased 6.5% on an organic basis primarily driven by growth in CereLink®, Certas® Plus, Bactiseal®, DuraSeal® and recovery in cranial perforators. | $214.1M | – | 6.2% |
| InstrumentsSales declined (0.9%) on an organic basis due to order timing. | 49.66M | – | (1.0)% |
| ENTSales declined (1.1%) on an organic basis, largely due to a low-single digit decline in sinus balloons. | 40.36M | – | (1.2)% |
| Wound Reconstruction SolutionsStrong growth in DuraSorb® and PriMatrix® was offset by declines in MicroMatrix® and Integra Skin. | 81.53M | – | (2.9)% |
| Corporate PartnershipsThe business was approximately flat compared to the third quarter of last year. Beginning this quarter, the Company refers to Private Label as Corporate Partnerships. | 25.53M | – | 0.2% |
Fourth Quarter 2026 and Full Year 2026 outlook
- RevenueFourth quarter 2026: $413 million to $433 million, representing a reported decline of -5.2% to -0.5% and an organic decline of -5.1% to -0.4%. Full year 2026: $1.634 billion to $1.654 billion, representing reported growth of -0.1% to 1.2% and organic growth of -0.3% to 0.9%.
- NoteFourth quarter 2026 adjusted earnings per diluted share: $0.61 to $0.71.
- NoteFull year 2026 adjusted earnings per diluted share: $2.30 to $2.40.
- NoteFull year 2026 operating cash flow: approximately $190 million to $200 million.
- NoteThe adjusted earnings per diluted share outlook reflects business interruption insurance recoveries for lost revenue related to the Cincinnati disruption and incremental interest expense associated with the refinancing.
What drove it
- Third-quarter reported revenue increased 2.3% and organic revenue increased 2.5%.
- The Cincinnati facility flood caused an approximate $7 million revenue impact in the quarter.
- Specialty Surgery reported growth of 3.9%, with Neuro organic growth of 6.5%.
- Tissue Reconstruction reported and organic revenue declines of (2.2)%.
- Adjusted net income was $46.4 million, compared to $41.6 million in the prior year.
- Third-quarter operating cash flow was $96.0 million and third-quarter free cash flow was $85.7 million.
Concerns
- Tissue Reconstruction declined (2.2)% on both a reported and organic basis.
- The Cincinnati disruption reduced third-quarter revenue by approximately $7 million and affects the fourth-quarter and full-year outlook.
- GAAP gross margin was 51.0%, compared to 51.5%, and adjusted gross margin was 61.1%, compared to 62.9%.
- Fourth-quarter guidance calls for a reported revenue decline of -5.2% to -0.5% and an organic revenue decline of -5.1% to -0.4%.
- The Company expects the increase in its effective interest rate to be near the high end of the previously communicated 100- to 200-basis-point range.
What to watch
- Recovery timeline, costs and insurance coverage and reimbursements related to the Cincinnati facility.
- Fourth-quarter execution against the $413 million to $433 million revenue outlook and $0.61 to $0.71 adjusted EPS outlook.
- Tissue Reconstruction performance, including wound reconstruction and Corporate Partnerships.
- Specialty Surgery demand, including Neuro performance and the timing of Instruments orders.
- Cash generation, deleveraging and the effect of incremental interest expense following the refinancing.
- Expected relaunch of SurgiMend in the fourth quarter of 2026 and expectations regarding the Braintree facility.
Balance sheet and cash flow
- The Company generated cash flow from operations of $96.0 million in the quarter.
- Net debt at the end of the quarter was $1.5 billion, and the consolidated total leverage ratio was 3.8x.
- Total liquidity was approximately $559 million, including $311.9 million in cash plus short-term investments and the remainder available under its revolving credit facility.
- On October 19, 2026, the Company completed a $2.1 billion debt refinancing consisting of a $1.65 billion senior secured credit facility and $450 million aggregate principal amount of 9.5% senior secured notes due 2033.
- The new credit facility consists of a $600 million Term Loan A, a $600 million revolving credit facility, and a $450 million Term Loan B.
- The amended debt covenants temporarily increase the maximum allowable net leverage ratio, followed by scheduled step-downs to 4.25x during 2027. Under the previous covenants the step down for 2027 was to 4.0x.
Analysis
Integra reported third-quarter total revenue of $411.2 million, up 2.3% on a reported basis and 2.5% on an organic basis. Specialty Surgery generated $304.1 million of revenue and grew 3.9% reported and 4.2% organically, while Tissue Reconstruction generated $107.1 million and declined 2.2% on both measures. The Cincinnati facility disruption had an approximate $7 million revenue impact, and management cited softer-than-expected Tissue Reconstruction results.
Neuro was the main source of portfolio strength, with organic sales growth of 6.5% driven by CereLink®, Certas® Plus, Bactiseal®, DuraSeal® and recovery in cranial perforators. Instruments organic sales declined (0.9%) due to order timing and ENT organic sales declined (1.1%), largely from a low-single digit decline in sinus balloons. In Tissue Reconstruction, strong DuraSorb® and PriMatrix® growth did not offset declines in MicroMatrix® and Integra Skin. Corporate Partnerships was approximately flat.
Profitability improved at the net-income level but gross-margin measures declined. GAAP net income was $14.9 million, or $0.19 per diluted share, compared with a GAAP net loss of $(5.4) million, or $(0.07) per diluted share. Adjusted net income rose to $46.4 million and adjusted diluted EPS rose to $0.59 from $0.54. GAAP gross margin was 51.0% versus 51.5%, adjusted gross margin was 61.1% versus 62.9%, and adjusted EBITDA margin was 19.4% of revenue versus 19.5% of revenue.
Cash generation strengthened materially in the quarter. Operating cash flow was $96.0 million and free cash flow was $85.7 million, compared with $25.8 million of free cash flow in the prior-year quarter. Net debt was $1.5 billion and the consolidated total leverage ratio was 3.8x. Subsequent to quarter-end, the Company completed a $2.1 billion debt refinancing that extended debt maturities, while management expects the effective-interest-rate increase to be near the high end of the previously communicated 100- to 200-basis-point range.
The Company maintained its full-year 2026 revenue outlook of $1.634 billion to $1.654 billion and adjusted EPS outlook of $2.30 to $2.40, consistent with the outlook provided on October 2, 2026. The fourth-quarter revenue guide of $413 million to $433 million implies reported and organic declines under the Company's stated ranges. Management said the updated outlook incorporates the Cincinnati recovery timeline, a revised Tissue Reconstruction outlook, a consistent Specialty Surgery outlook, business interruption insurance recoveries, and incremental refinancing-related interest expense.
Management, verbatim
Our third quarter performance reflected mixed results across our portfolio, with stronger performance in Specialty Surgery partially offset by a $7 million impact from the Cincinnati disruption and softer-than-expected results in Tissue Reconstruction. We delivered results within our guidance ranges, generated strong cash flow, reduced leverage, and subsequently completed our debt refinancing.
Stuart Essig, Chairman and Chief Executive Officer
Our updated outlook reflects both the recovery timeline in Cincinnati and more measured expectations for portions of our Tissue Reconstruction business. We are focused on executing against these challenges while continuing to support our customers, advance key product launches and returns, and strengthen the business for more consistent long-term growth.
Stuart Essig, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Prior outlook document and prior guidance ranges were not provided, so no comparison of actual results with prior guidance is included.
- No share repurchases or dividend declarations were reported.
- No GAAP operating cash flow guidance was provided for the fourth quarter.
- No forward guidance for gross margin, operating expenses, or tax rate was provided.
- No quarterly free cash flow guidance was provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Integra LifeSciences (Nasdaq: IART) filed a Form 8‑K reporting its third‑quarter 2026 financial results, including revenue, earnings, cash flow, a $2.1 bn debt refinancing, and updated full‑year guidance.
Ticker impact
Integra LifeSciences reported Q3 2026 results and issued updated guidance for Q4 and full‑year 2026.
likely modest upside as investors price in the reaffirmed cash flow outlook and debt refinancing benefits
The company posted improved GAAP EPS, strong cash flow and completed a $2.1 bn debt refinancing, then provided guidance that is in line with prior expectations, which typically supports the stock price.
Market effects
Medical‑technology sector may see modest support from Integra's debt refinancing and cash‑flow generation.
U.S. healthcare equities could experience slight positive pressure.
Limited to investors tracking U.S. med‑tech earnings and credit markets.
Counterpoint
If the flood‑related disruption recurs, revenue growth could be weaker than guidance, pressuring the stock.
Key entities
- ExecutiveStuart Essig
Chairman and CEO of Integra LifeSciences, provided commentary on results and outlook.
