CONMED Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales for the three months ended September 30, 2026, were $335.6 million, a 0.7% decrease year-over-year (YoY) as reported and a 0.8% decrease on a constant currency basis.
• Excluding the impact of strategic exits of GI product offerings, net sales increased 6.7% on an organic constant currency basis.
• Domestic sales decreased 11.0% as reported and increased 0.8% on an organic basis.
• International sales increased 13.1% as reported, 12.8% on a constant currency basis, and 13.8% on an organic constant currency basis.
• Diluted earnings per share (GAAP) were $0.66, up 613.7% YoY.
• Adjusted diluted earnings per share were $1.04, down 3.2% YoY.
• Gross profit for the quarter was $189.1 million (56.4% of sales), compared to $166.1 million (49.2% of sales) in the prior year period.
• Operating income for the quarter was $37.1 million (11.1% of sales), compared to $11.9 million (3.5% of sales) in the prior year period.
• Net income for the nine months ended September 30, 2026, was $56.7 million, compared to $30.3 million in the prior year period.
• Adjusted diluted EPS for the nine months ended September 30, 2026, was $3.31, compared to $3.17 in the prior year period.
• Adjusted EBITDA for the three months ended September 30, 2026, was $67.9 million (20.2% margin), compared to $65.6 million (19.4% margin) in the prior year period.
• Adjusted EBITDA for the nine months ended September 30, 2026, was $202.4 million (20.3% margin), compared to $195.5 million (19.5% margin) in the prior year period.

Guidance and Future Outlook:

• The Company updated its full year 2026 financial guidance to reflect third-quarter performance.
• Updated Net Sales (GAAP) guidance for the twelve months ending December 31, 2026, is $1,360 million to $1,366 million, compared to a prior guidance range of $1,358 million to $1,373 million.
• Updated Net Sales Growth (as reported) guidance is (1.1)% to (0.6)%, compared to a prior range of (1.2)% to (0.1)%.
• Updated Net Sales Growth (Constant Currency) guidance is (1.7)% to (1.3)%, compared to a prior range of (1.7)% to (0.7)%.
• Updated Net Sales Growth (Organic Constant Currency) guidance is 5.0% to 5.5%, compared to a prior range of 5.0% to 6.0%.
• Updated Adjusted Diluted EPS guidance is $4.54 to $4.61, compared to a prior range of $4.48 to $4.60.
• Management expects strong performance in the third quarter to drive the updated full-year outlook.
• The global team remains focused on executing a growth strategy to expand awareness and adoption of key product platforms in minimally invasive surgery, smoke evacuation, and orthopedic soft tissue repair markets.

Business Segments and Product Lines:

• Orthopedic Surgery sales for the quarter were $148.8 million, a 7.7% increase as reported.
• General Surgery sales for the quarter were $186.7 million, a 6.5% decrease as reported.
• Single-use Products sales for the quarter were $285.7 million, a 1.2% decrease as reported.
• Capital Products sales for the quarter were $49.8 million, a 2.2% increase as reported.
• Key product growth platforms driving commercial traction include AirSeal, Buffalo Filter, and BioBrace.
• On July 22, 2026, the AirSeal® Robotic Solution received indication for use with Intuitive's 8 mm hex cannulas on the Intuitive da Vinci 5 platform.
• The Company has completed strategic exits of GI product offerings as part of its portfolio optimization strategy.

Market and Competitive Landscape:

• The Company has sharpened its strategic focus on minimally invasive surgery, smoke evacuation, and orthopedic soft tissue repair markets following recent portfolio optimization activities.
• The Company aims to expand market share and drive long-term growth and value creation in these key markets.
• International sales growth was driven by a 13.1% increase as reported.

Risks and Challenges:

• The Company incurred costs related to operational optimization, including consulting fees and charges included in cost of sales and selling & administrative expenses.
• The Company incurred costs to comply with European Union Medical Device Regulations (MDR).
• The Company recorded expenses related to fair value adjustments of contingent consideration.
• The Company recognized a gain on the sale of certain assets related to gastroenterology products.
• The Company recognized a loss on the sale of certain assets related to gastroenterology products recorded as a sale of a business.
• The Company recognized income related to the early termination of an agreement granting exclusive distribution rights.
• The Company incurred executive transition costs related to advisory services provided by former executives.
• The Company recorded a gain on the early extinguishment of debt, net.
• Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially, including general industry and economic conditions and factors detailed in the Company's Form 10-K and Form 10-Q.

Management Commentary and Tone:

• Patrick J. Beyer, President and CEO, stated that third-quarter organic, constant currency net sales growth was consistent with expectations and adjusted diluted EPS exceeded them, reflecting strong team execution.
• Management noted that net sales growth included balanced contributions from both Orthopedic and General Surgery product lines.
• Management expressed confidence that CONMED is better positioned to support customers, expand market share, and drive long-term growth following portfolio optimization.

Other Key Points:

• The Company hosts a conference call on October 28, 2026, at 4:30 p.m. ET to discuss results.
• The Company is unable to present a quantitative reconciliation of expected diluted net earnings per share to expected adjusted diluted net earnings per share due to the uncertainty of acquisition, integration, and other charges.
• Reconciliations of GAAP to non-GAAP financial measures are provided in the press release, including adjustments for operational optimization costs, EU MDR compliance, contingent consideration adjustments, and gains/losses on asset sales and debt extinguishment.