Integra LifeSciences Reports $25.3 Million Net Loss and $382.7 Million Revenue in Q1 2025

Integra LifeSciences Holdings Corporation reported a net loss of $25.3 million, or $0.33 per diluted share, for the first quarter of 2025, a significant decline from a net loss of $3.3 million, or $0.04 per diluted share, in the same period of 2024. The company's total revenue for the quarter increased to $382.7 million, up from $368.9 million year-over-year, primarily driven by the acquisition of Acclarent, which contributed approximately $29.1 million to revenue. However, excluding this acquisition, revenues declined slightly due to operational challenges and quality issues affecting product lines.

The company's operating expenses rose to $209.9 million, a 3.5% increase from $202.9 million in the prior year, largely due to higher selling, general, and administrative costs associated with the Acclarent integration. Research and development expenses decreased to $24.7 million, reflecting reduced spending on European Union Medical Device Regulation (EU MDR) compliance and other projects. The gross margin also contracted to 50.8% from 56.1%, impacted by quality-related expenses and operational inefficiencies.

Integra's balance sheet showed total assets of $4.05 billion as of March 31, 2025, with cash and cash equivalents of $239.1 million, down from $246.4 million at the end of 2024. The company reported a working capital of $188.8 million, an increase from $159.6 million in the previous quarter. The company’s debt obligations include a senior credit facility and convertible senior notes, with compliance maintained on financial covenants as of the reporting date.

Strategically, Integra has focused on expanding its product offerings and geographic reach, highlighted by the recent acquisition of Acclarent, which enhances its position in the ENT market. The company is also transitioning manufacturing from its Boston facility to a new site in Braintree, Massachusetts, expected to be operational by mid-2026. This transition aims to address quality system issues identified by the FDA and improve overall operational efficiency.

Looking ahead, Integra anticipates challenges from new tariffs imposed by the U.S. government, which could increase costs and impact demand. The company is actively monitoring these developments and has implemented measures to mitigate potential risks. Despite the current operational hurdles, management remains optimistic about future growth driven by product innovation and strategic acquisitions.