Second quarter 2026
Filed Jul 29, 2026Integra LifeSciences Reports Second Quarter 2026 Financial Results
Revenue growth was modest and Tissue Reconstruction declined, while gross margins, adjusted EBITDA, adjusted net income and adjusted EPS improved from the prior year. The company lowered reported full-year revenue guidance for foreign exchange while reaffirming organic growth and adjusted EPS guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total reported revenuesother | $418.8 million | – | increased 0.8% on a reported basis |
| Organic revenue growthnon-GAAP | 0.7% | – | 0.7% |
| Gross marginGAAP | 52.5% | – | – |
| Adjusted gross marginnon-GAAP | 61.3% | – | – |
| Adjusted EBITDAnon-GAAP | $78.4 million, or 18.7% of revenue | – | – |
| Net incomeGAAP | $4.5 million | – | – |
| Earnings per diluted shareGAAP | $0.06 | – | – |
| Adjusted net incomenon-GAAP | $43.7 million | – | – |
| Adjusted earnings per diluted sharenon-GAAP | $0.56 | – | – |
| Cash flow from operationsother | $22.8 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Specialty Surgery (~70% of Revenues)Sales in Neuro increased 1.9% on an organic basis primarily driven by growth in Certas® Plus, Bactiseal® and CUSA®. Sales in Instruments grew 3.2% on an organic basis. ENT sales declined (1.9%) as MicroFrance® ENT instrument growth was offset by declines in other products. | $309.3 million | – | reported growth of 1.7% and an organic growth of 1.6% |
| Tissue Reconstruction (~30% of Revenues)Mid-single digit decline in wound reconstruction, driven by strong growth in DuraSorb® and the relaunch of PriMatrix®, offset by declines in MicroMatrix® and Integra Skin. Sales in private label grew 4.7%. | $109.5 million | – | reported and organic declines of (1.9)% and (2.0)% respectively |
Third quarter and full year 2026 outlook
- RevenueThird quarter 2026 reported revenues of $410 million to $425 million, representing reported growth of 2.0% to 5.7% and organic growth of 1.9% to 5.7%; full-year 2026 reported revenue of $1.654 billion to $1.695 billion; full-year 2026 organic revenue growth of 0.8% to 3.3%.
- NoteThird quarter 2026 adjusted EPS of $0.53 to $0.61 per share.
- NoteFull-year 2026 adjusted earnings per share of $2.40 to $2.50.
- NoteThe adjusted EPS outlook reflects updated tariff assumptions, a higher interest rate environment, and potential debt refinancing actions.
What drove it
- The Braintree manufacturing facility initiated production and is ramping to support the planned fourth-quarter relaunch of SurgiMend®.
- Neuro organic sales growth was primarily driven by Certas® Plus, Bactiseal® and CUSA®.
- Instruments organic sales grew 3.2%.
- Tissue Reconstruction was affected by declines in MicroMatrix® and Integra Skin. Integra Skin faced a prior-year comparison that included the clearance of back orders in the second quarter of 2025.
- The reported full-year revenue outlook update reflects the impact of a stronger U.S. dollar on foreign exchange rates.
Concerns
- Total reported revenue increased 0.8% and organic revenue increased 0.7% compared to the prior year.
- Tissue Reconstruction reported and organic revenue declined (1.9)% and (2.0)% respectively.
- ENT sales declined (1.9%).
- The adjusted EPS outlook reflects updated tariff assumptions, a higher interest rate environment, and potential debt refinancing actions.
- Net debt was $1.6 billion and the consolidated total leverage ratio was 4.1x.
What to watch
- Ramping production at the Braintree manufacturing facility.
- The planned fourth-quarter relaunch of SurgiMend®.
- Execution on supply reliability, quality advancement and returning products to market.
- Specialty Surgery organic growth, including Neuro, Instruments and ENT.
- Tissue Reconstruction performance, including wound reconstruction, MicroMatrix® and Integra Skin.
- Progress in reducing balance sheet leverage and any potential debt refinancing actions.
Balance sheet and cash flow
- Cash flow from operations of $22.8 million in the quarter.
- Net debt at the end of the quarter was $1.6 billion.
- Consolidated total leverage ratio was 4.1x.
- Total liquidity of approximately $496 million, including $274.1 million in cash plus short-term investments and the remainder available under its revolving credit facility.
Analysis
Integra reported second-quarter revenues of $418.8 million, up 0.8% on a reported basis and 0.7% on an organic basis from the prior year. Growth was concentrated in Specialty Surgery, where revenue was $309.3 million and organic growth was 1.6%. Tissue Reconstruction revenue was $109.5 million, with organic revenue declining (2.0)%. The result reflects a modest consolidated growth profile with uneven segment performance.
Specialty Surgery benefited from organic growth in Neuro and Instruments. Neuro increased 1.9% on an organic basis, primarily driven by Certas® Plus, Bactiseal® and CUSA®, while Instruments grew 3.2%. ENT sales declined (1.9)%. In Tissue Reconstruction, strong growth in DuraSorb® and the relaunch of PriMatrix® were offset by declines in MicroMatrix® and Integra Skin, with Integra Skin also facing a prior-year comparison that included clearance of back orders.
Profitability improved materially from the prior year. GAAP gross margin was 52.5%, compared to 50.4%, and adjusted gross margin was 61.3%, compared to 60.7%. Adjusted EBITDA was $78.4 million, or 18.7% of revenue, compared to $71.2 million, or 17.1% of revenue. GAAP net income was $4.5 million, or $0.06 per diluted share, compared with a GAAP net loss of $(484.1) million, or $(6.31) per diluted share. Adjusted EPS rose to $0.56 from $0.45.
Cash flow from operations was $22.8 million. Net debt was $1.6 billion, consolidated total leverage was 4.1x, and total liquidity was approximately $496 million, including $274.1 million in cash plus short-term investments. Management highlighted its effort to reduce balance sheet leverage, making production ramp execution and operating performance relevant to deleveraging progress.
For the third quarter, Integra expects reported revenue of $410 million to $425 million and adjusted EPS of $0.53 to $0.61 per share. The company reduced its full-year reported revenue outlook to $1.654 billion to $1.695 billion from $1.662 billion to $1.702 billion, citing a stronger U.S. dollar, while reaffirming full-year organic revenue growth of 0.8% to 3.3% and adjusted EPS of $2.40 to $2.50. The guide incorporates updated tariff assumptions, a higher interest rate environment and potential debt refinancing actions. The Braintree facility has initiated production, and the company remains on track for the planned fourth-quarter SurgiMend® relaunch.
Management, verbatim
Our second-quarter performance reflects meaningful progress on our most important priorities. We are improving supply reliability, advancing quality, and returning products to market with discipline. The Braintree facility is now producing and ramping to support the planned SurgiMend relaunch later this year.
Stuart Essig, Chairman and CEO of Integra LifeSciences
At the same time, we are seeing the benefits of a more aligned commercial organization while we continue to reduce our balance sheet leverage. Supported by our broad portfolio, attractive markets, and focused leadership team, we are strengthening our operating foundation and enhancing our ability to deliver sustainable long-term shareholder value.
Stuart Essig, Chairman and CEO of Integra LifeSciences
Not in the filing
stated, not guessed- GAAP operating income and operating margin.
- GAAP and adjusted operating expenses.
- Free cash flow.
- Cash flow from operations prior-year and prior-quarter comparison.
- Gross debt.
- Share repurchases, dividends and other capital returns.
- Third-quarter and full-year gross margin guidance.
- Third-quarter and full-year operating expense guidance.
- Third-quarter and full-year tax-rate guidance.
- Previous-release outlook section for comparisons of actual results with prior guidance.
- Prior-quarter comparisons for reported metrics.
AlphaAI 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.