#United States #Alpharetta #Pain Management #Avanos Medical #Specialty Nutrition

Avanos Medical Reports Third Quarter 2025 Results

Avanos Medical, Inc. (NYSE: AVNS) has released its financial results for the third quarter of 2025, demonstrating a commendable performance in a demanding market environment. The company reported total net sales of $177.8 million, marking a 4.3% increase compared to the same period last year. This performance can be attributed to robust demand in the Specialty Nutrition Systems (SNS) segment, which has seen double-digit growth.

Key Financial Highlights

Despite the increase in sales, the company posted a net loss of $1.4 million, a decline from a net income of $5.9 million recorded in the previous year. Adjusted net income was $10.1 million, down from $16.7 million in 2024. The diluted loss per share was reported at $0.03, whereas the diluted earnings per share stood at $0.12 in the previous year. The adjusted diluted earnings per share fell to $0.22 from $0.36 year-on-year.

Chairman and CEO David Pacitti expressed satisfaction with the results, emphasizing the company's strong operational and commercial performance despite challenges posed by tariffs. He highlighted the successful integration of Nexus Medical, enhancing Avanos' capabilities in offering critical nutrition solutions for neonatal intensive care units (NICUs).

Segment Performance

Specialty Nutrition Systems Segment

The Specialty Nutrition Systems segment was the star of the quarter, achieving net sales of $114.0 million, reflecting a substantial 14.0% volume growth. Essential demand across the enteral feeding and neonatal solutions categories drove this growth. Particularly, the enteral feeding product line continued to outperform, with notable growth in the long-term feeding solutions and the expansion of the U.S. CORTRAK offerings.

Pain Management and Recovery Segment

On the other hand, the Pain Management and Recovery (PMR) segment reported net sales of $59.0 million, a slight improvement from last year. This growth was partially offset by reduced volumes in certain surgical pain solutions, although Radio Frequency Ablation (RFA) product sales grew by 10.5%.

Cash Flow and Balance Sheet

As of September 30, 2025, Avanos maintained $70.5 million in cash, a decrease from $107.7 million at the end of 2024. The company generated $46.5 million from operational cash flows during the first nine months of the year.

Looking Ahead

In light of these results, Avanos Medical is optimistic about its future and has raised its revenue guidance for 2025 to a range of $690 million to $700 million, alongside an adjusted diluted earnings per share expectation between $0.85 and $0.95. The company is continuously assessing factors like tariffs that could impact performance, yet is confident in its strategic initiatives moving forward.

With a solid foothold in critical healthcare solutions, Avanos Medical remains dedicated to improving patient care and addressing essential healthcare needs the company continues to innovate while navigating through economic pressures and market transformation.