Avanos Medical Reports $1.4 Million Net Loss in Q3 2025, Revenue Increases 4.3%

Avanos Medical, Inc. reported a net loss of $1.4 million for the third quarter of 2025, a significant decline from a net income of $4.3 million in the same period last year. For the nine months ended September 30, 2025, the company recorded a net loss of $71.6 million, compared to a profit of $5.2 million in the prior year. The decline in profitability was primarily attributed to a $77 million goodwill impairment charge related to its Pain Management and Recovery segment. Revenue for the third quarter increased to $177.8 million, up 4.3% from $170.4 million in the previous year, while year-to-date revenue rose to $520.3 million, a 2.4% increase from $508.2 million.

The company’s Specialty Nutrition Systems segment saw a notable increase in sales, with third-quarter revenues rising 16.1% to $114 million, driven by strong demand for enteral feeding products and neonate solutions. Conversely, the Pain Management and Recovery segment experienced a modest 2.1% increase in sales to $59 million, with growth in radiofrequency ablation solutions offset by a decline in surgical pain and recovery products. The overall increase in revenue was also supported by a 23.7% rise in sales from the Europe, Middle East, and Africa region.

In terms of strategic developments, Avanos completed the acquisition of Nexus Medical, LLC on September 11, 2025, for a total purchase price of $27 million, with potential additional payments based on future sales performance. This acquisition is expected to enhance Avanos' Specialty Nutrition Systems portfolio, particularly in high-acuity settings. The company also initiated a restructuring process in January 2023, aimed at aligning its operations and improving profitability, which has incurred costs of approximately $27.4 million to date.

Operationally, Avanos reported a decrease in cash and cash equivalents to $70.5 million as of September 30, 2025, down from $107.7 million at the end of 2024. The decrease was primarily due to capital expenditures and debt repayments, despite generating $46.5 million from operations. The company’s total liabilities decreased to $289.7 million from $325.7 million at the end of 2024, reflecting ongoing efforts to manage its financial position. Looking ahead, Avanos anticipates annualized savings of $15 million to $20 million from its restructuring initiatives, which are expected to continue through 2026.