Owens & Minor Reports $869.1 Million Net Loss in Q2 2025 Amid Revenue Growth

Owens & Minor, Inc. reported a significant net loss of $869.1 million for the second quarter of 2025, compared to a loss of $31.9 million in the same period of the previous year. The company's net revenue for the quarter increased to $681.9 million, up from $660.4 million in the prior year, reflecting a 3.3% growth driven by sales in several product categories, including sleep therapy and urology. However, the financial results were heavily impacted by an $80 million transaction breakage fee related to the termination of the acquisition of Rotech Healthcare Holdings, as well as increased acquisition-related costs and transaction financing fees.

In the first half of 2025, Owens & Minor's net revenue reached $1.36 billion, a 4.4% increase from $1.30 billion in the same period of 2024. The growth was attributed to improved collection rates and successful sales activities, although the diabetes segment faced challenges due to market shifts. The company's operating loss for the second quarter was $39.7 million, a decline from an operating income of $16.9 million in the prior year, primarily due to increased costs associated with revenue growth and the aforementioned transaction fees.

The company is in the process of divesting its Products & Healthcare Services (P&HS) segment, which has been classified as discontinued operations. As of June 30, 2025, the assets held for sale related to this segment amounted to approximately $1.89 billion. The decision to divest follows a strategic review and is expected to streamline operations. The company has also reported a goodwill impairment charge of $106.4 million related to the P&HS segment, reflecting the anticipated sale's impact on the company's financials.

Owens & Minor's operational metrics showed a decrease in accounts receivable to $196.4 million from $218.3 million at the end of 2024, while cash and cash equivalents increased to $38.3 million from $27.6 million. The company’s employee headcount remained stable, and it continues to focus on enhancing operational efficiencies. The company has also initiated a share repurchase program, authorizing up to $100 million over the next 24 months, with approximately $6.6 million spent on repurchases in the first half of 2025.

Looking ahead, Owens & Minor anticipates that the divestiture of the P&HS segment will provide additional liquidity and allow for a more focused business strategy. The company is committed to improving its financial performance and operational efficiency while navigating the challenges posed by market conditions and ongoing strategic initiatives.