Integra LifeSciences Holdings Corporation (IART Quick QuoteIART - Free Report) delivered adjusted earnings per share (EPS) of 41 cents for the first quarter of 2025, which missed the Zacks Consensus Estimate by 4.6%. The metric decreased 25.5% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar).

The adjustment excludes the impact of certain non-recurring charges like structural optimization charges, divestiture, acquisition and integration-related charges and EU Medical Device Regulation charges, among others.

GAAP loss per share was 33 cents in the quarter compared with a 4-cent loss in the year-ago period.

IART’s Q1 Revenues

Total revenues in the reported quarter rose 3.7% year over year to $382.7 million. The metric topped the Zacks Consensus Estimate by a modest 0.1%. Organically, revenues fell 3.5% year over year.

Following the announcement yesterday, shares of IART fell 21.2% to close the session at $13.28. 

Integra’s Revenues by Segments

Coming to product categories, revenues in the Codman Specialty Surgical segment rose 9.4% year over year on a reported basis (organically, down 1.1%) to $280.7 million.

Within this, Neurosurgery sales fell 4.7% on an organic basis, driven by shipping holds across several product lines.

Instruments increased 15.1% on an organic basis due to strong demand and a favorable prior-year comparator.

Meanwhile, the Acclarent acquisition drove the ENT’s reported revenue growth.

Tissue Technologies’ revenues totaled $102 million in the first quarter, down 9.3% year over year on a reported basis and 9.1% on an organic basis.

DuraSorb, MicroMatrix and Cytal posted low double-digit growth, while Integra Skin registered a low double-digit decline due to production timing.

Sales in Private Label decreased 13.3% due to a component supply delay.

IART’s Q1 Margin Performance

In the reported quarter, the gross profit totaled $194.4 million, down 6% year over year. The gross margin contracted 526 basis points (bps) to 50.8% on a 16.2% increase in the cost of goods sold.

Selling, general and administrative expenses increased 9.5% to $181.5 million in the quarter under review, while research and development expenses fell 8.3% to $24.7 million.

Overall, the adjusted operating loss was $11.8 million compared to an operating profit of $14.1 million in the first quarter of 2024.

IART’s Financial Position

Integra exited the first quarter of 2025 with approximately $239.1 million in cash and cash equivalents compared with $246.4 million at the end of the fourth quarter of 2024. 

Cumulative net cash outflow from operating activities at the end of the first quarter of 2025 was $11.26 million compared to cash inflows of $15.76 million a year ago.

Integra’s 2025 & Q2 Guidance

For 2025, the company reaffirmed its revenue range of $1.650-$1.715 billion, indicating reported growth of 2.4-6.5%. The Zacks Consensus Estimate is pegged at $1.68 billion.

Meanwhile, Integra reduced its adjusted EPS forecast to a range of $2.19-$2.29, from the earlier range of $2.41-$2.51. The Zacks Consensus Estimate for the metric is pegged at $2.46.

For the second quarter of 2025, Integra expects reported revenues in the range of $390-$400 million, indicating a reported decline of 6.8%-4.4%. The Zacks Consensus Estimate is pegged at $417.8 million.

Adjusted EPS is expected to be in the range of 40-45 cents. The Zacks Consensus Estimate for the metric is pegged at 43 cents.

Our Take on IART

Integra ended the first quarter of 2025 with an earnings miss and a revenue beat. Organic revenue performance was negatively impacted by multiple supply disruptions, including ship holds, production timing impact to Integra Skin and a headwind stemming from a Private Label component supply issue. The contraction of the gross margin in the quarter is discouraging. The company reduced its 2025 bottom-line outlook, which includes the financial impact of the tariffs.

On a promising note, Integra reported positive revenue contribution from Acclarent as well as double-digit growth across many product lines. During the quarter, the company progressed several of its priorities, including advancing the Compliance Master Plan, expanding the international portfolio and adding key leadership.

IART’s Zacks Rank & Key Picks

Integra currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are AngioDynamics (ANGO Quick QuoteANGO - Free Report) , Integer Holdings Corporation (ITGR Quick QuoteITGR - Free Report) and Boston Scientific (BSX Quick QuoteBSX - Free Report) .

AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported a third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a 13-cent loss. Revenues of $72 million beat the Zacks Consensus Estimate by 2%. You can see the complete list of today’s Zacks #1 Rank stocks here.

ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 70.9%.

Integer Holdings, sporting a Zacks Rank #1 at present, posted a first-quarter 2025 adjusted EPS of $1.31, exceeding the Zacks Consensus Estimate by 3.1%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%.

ITGR has an estimated long-term earnings growth rate of 20.8% compared with the industry’s 14.3% growth. The company’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, with the average surprise being 2.8%.

Boston Scientific, currently carrying a Zacks Rank #2 (Buy), reported a first-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 11.9%. Revenues of $4.66 billion topped the Zacks Consensus Estimate by 2.3%.

BSX has an estimated 2025 earnings growth rate of 15.9% compared with the S&P 500 composite’s 11.9% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.8%.