Avanos Medical Reports Second Quarter 2025 Financial Results with Strong Performance in Key Segments

Avanos Medical, Inc. Reports Second Quarter 2025 Results

Avanos Medical, Inc. (NYSE: AVNS) has outlined its financial performance for the second quarter of 2025, showcasing a resilient approach in a challenging market. The results, announced on August 5, 2025, reflect a 1.9% growth in net sales, totaling $175 million compared to the same period last year.

Financial Highlights

The company's Chief Executive Officer, David Pacitti, noted the significant strides made in their Specialty Nutrition Systems (SNS) and Pain Management Recovery (PMR) segments. These key areas have shown promising growth, demonstrating Avanos' commitment to addressing critical healthcare needs.

While the total net sales increased modestly, the company faced a net loss of $76.8 million, compared to a net income of $4.3 million in the corresponding quarter last year. This shift reflects the challenges Avanos has been tackling, including tariff impacts and restructuring costs related to post-divestiture operations. Even with these challenges, adjusted net income was reported at $7.9 million.

Segment Performance

The Specialty Nutrition Systems segment was a standout performer, generating $102.7 million in net sales, which is a $5 million increase over the previous year. The volume growth of 4.4% highlights the ongoing demand for enteral feeding and neonate solutions that are vital for patient care.

The Pain Management Recovery segment also exhibited growth, recording net sales of $61 million, up $1.7 million from last year. Notably, sales of radiofrequency ablation (RFA) products surged by 13.7%, showcasing the effectiveness of their products in improving patient outcomes.

Cost Management and Challenges

Despite these positive sales figures, the gross margin was reported at 52.6%, down from 55.7% a year ago, reflecting higher tariffs and pricing pressures on hyaluronic acid products. The overall selling and general expenses also increased, primarily due to costs associated with restructuring.

The operating loss of $74.5 million highlights the need for Avanos to address ongoing market challenges, specifically an impairment charge of $77 million related to goodwill within the PMR segment that impacted overall financial performance.

Cash Flow and Balance Sheet

As of June 30, 2025, Avanos held cash reserves of $90.3 million, a decrease from $107.7 million at the end of 2024. However, operational cash flow improved, reflecting Avanos' ability to generate cash from its ongoing business activities. Free cash flow reported a negative $4.2 million for the quarter, contrasting sharply with a positive influx the previous year.

Looking Ahead

Avanos Medical is maintaining its revenue forecast for 2025, estimating between $665 million and $685 million. Despite the challenges posed by external factors such as tariffs, the company remains committed to executing its transformation strategy and addressing critical healthcare needs through innovation.

As the healthcare market continues evolving, Avanos Medical is poised to strengthen its position through strategic initiatives aimed at enhancing its product offerings and expanding its market reach.

For further updates, Avanos will be hosting a conference call shortly after this release, providing an opportunity for stakeholders to gain additional insights into the company's trajectory and future plans.