IART earnings analysis
What we found in IART's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Integra delivered modest Q2 revenue growth of 0.8% to $418.761 million, while GAAP EPS improved to $0.06 from a $6.31 loss per share in the prior-year quarter, chiefly because the 2025 period included a $511.4 million goodwill impairment. Gross margin strengthened 210 basis points to 52.5% and first-half operating cash flow improved to $32.605 million, but growth remained uneven as Tissue Reconstruction declined 1.9%. The filing identifies continuing quality-remediation, leverage, tariff and Cincinnati-flood execution risks; Item 1A states there were no material changes to risk factors from the 2025 10-K.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue grew modestly; GAAP EPS turned positive
- Q2 revenue was $418.761 million, up $3.156 million (0.8%) from $415.605 million a year earlier and up 6.8% from Q1 2026 revenue of approximately $391.918 million. GAAP diluted EPS improved to $0.06 from a $(6.31) loss per share in Q2 2025 and a $(0.06) loss in Q1 2026.
- Gross margin expanded 210 basis points
- Gross margin expanded 210 basis points year over year to 52.5% from 50.4%, with gross profit increasing $10.412 million to $219.744 million. Management attributed the gain to lower Braintree remediation and quality/operational costs and improved manufacturing performance.
- Specialty Surgery delivered segment growth
- Specialty Surgery sales increased $5.311 million to $309.269 million, driven primarily by Neurosurgery and Surgical Instruments, partly offset by ENT Solutions. The segment represents approximately 70% of total revenue.
- Operating profitability recovered from prior impairment
- Operating income was approximately $19.2 million, or a 4.6% operating margin, versus an operating loss driven by a $511.4 million goodwill impairment in Q2 2025. Total operating expenses declined $521.5 million to $200.5 million, although the comparison is materially distorted by the prior-year impairment.
- First-half cash generation improved sharply
- Six-month operating cash flow improved to $32.605 million from a $2.338 million outflow; capital expenditures fell to $27.2 million from $49.1 million. This implies approximately $5.4 million of six-month free cash flow, versus an approximately $51.4 million outflow a year earlier.
- Liquidity remains substantial despite lower cash
- Liquidity included $214.4 million of cash and equivalents and $59.7 million of short-term investments at June 30, 2026. Working capital rose to $860.6 million from $703.6 million at year-end, primarily because the securitization-facility amendment reclassified borrowings to long-term liabilities.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Tissue Reconstruction remains a drag
- Tissue Reconstruction sales declined $2.155 million, or 1.9%, to $109.492 million. Management cited lower MicroMatrix and Integra Skin sales, only partly offset by PriMatrix and DuraSorb growth; the Integra Skin comparison also reflected prior-year backorder clearance.
- Quality remediation and Braintree execution risk
- The company remains subject to FDA warning-letter and quality-system remediation risk. It incurred $9.918 million of Braintree-transition charges and $22.253 million of total special charges in Q2; the Braintree facility only became operational in June 2026 and is ramping for a planned Q4 2026 SurgiMend relaunch.
- Leverage and floating-rate exposure remain high
- Interest expense rose $1.952 million year over year to $22.994 million in Q2. Consolidated leverage was 4.10x at June 30, 2026 versus a 5.00x covenant, which tightens to 4.75x for the September 30, 2026 quarter; a 100-basis-point rate move would affect annual interest expense by $9.7 million on unhedged debt.
- Tariff costs and refund timing are uncertain
- Tariff exposure remains uncertain: tariffs on certain imported products were implemented at rates of 10.0% to 12.5% in July 2026. The company had submitted $17.6 million of IEEPA tariff-refund claims as of June 30, 2026, while the timing and ultimate amount of recoveries remain uncertain.
- Cincinnati flood creates operational uncertainty
- Flooding at the Cincinnati manufacturing site on July 17, 2026 damaged portions of the facility, equipment, inventory and other assets. Management currently does not expect a material adverse effect, but remediation costs, potential impairments and insurance recoveries remain under evaluation.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.06
- Gross margin
- 52.5%
- Operating margin
- 4.6%
- Segment
- Specialty Surgery revenue: $309.269 million, up $5.311 million (1.7%) year over year.
- Segment
- Tissue Reconstruction revenue: $109.492 million, down $2.155 million (1.9%) year over year.
What they said about what is next.
The 10-Q does not provide explicit quantitative revenue or EPS guidance; outlook was deferred to other company communications. Management expects the Braintree facility, operational in June 2026, to ramp production for a planned SurgiMend relaunch in Q4 2026 and expects PMA approvals for SurgiMend and DuraSorb in 2027.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 5, 2026
- Integra LifeSciences reported Q1 2026 results with revenues of $391.9 million, up from $382.7 million year-over-year, and adjusted EPS of $0.54, an increase from $0.41. Management highlighted operational improvements…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing IART makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever