Avanos Medical | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 177.8 M

Revenue: As of FY2025 Q3, the actual value is USD 177.8 M, beating the estimate of USD 164.5 M.

EPS: As of FY2025 Q3, the actual value is USD -0.03.

EBIT: As of FY2025 Q3, the actual value is USD 1.4 M.

Net Sales: $114.0 million for Q3 2025, an increase of 16.1% from Q3 2024. For the nine months ended September 30, 2025, net sales were $317.8 million, up 9.4% from the prior year period.
Cost of Products Sold: $52.5 million for Q3 2025, compared to $42.9 million in Q3 2024. For the nine months ended September 30, 2025, cost of products sold was $142.8 million, up from $122.9 million in the prior year period.
Operating Income: $23.0 million for Q3 2025, compared to $18.6 million in Q3 2024. For the nine months ended September 30, 2025, operating income was $62.1 million, up from $55.8 million in the prior year period.

Net Sales: $59.0 million for Q3 2025, an increase of 2.1% from Q3 2024. For the nine months ended September 30, 2025, net sales were $176.2 million, up 1.6% from the prior year period.
Cost of Products Sold: $26.5 million for Q3 2025, compared to $25.3 million in Q3 2024. For the nine months ended September 30, 2025, cost of products sold was $78.3 million, up from $74.2 million in the prior year period.
Operating Income: $2.0 million for Q3 2025, compared to $0.8 million in Q3 2024. For the nine months ended September 30, 2025, operating income was $4.0 million, compared to an operating loss of $1.2 million in the prior year period.

Net Sales: $4.8 million for Q3 2025, down from $14.4 million in Q3 2024. For the nine months ended September 30, 2025, net sales were $26.3 million, down from $44.3 million in the prior year period.
Operating Loss: - $24.9 million for Q3 2025, compared to - $7.4 million in Q3 2024. For the nine months ended September 30, 2025, operating loss was - $130.2 million, compared to - $32.3 million in the prior year period.

Operating Cash Flow: $46.5 million for the nine months ended September 30, 2025, compared to $42.8 million in the prior year period.
Free Cash Flow: Not explicitly stated, but cash used in investing activities was - $53.8 million, and cash used in financing activities was - $34.3 million for the nine months ended September 30, 2025.

Core Business Focus: The company is focused on enhancing its Specialty Nutrition Systems and Pain Management & Recovery segments, with strategic acquisitions like Nexus Medical to bolster its product portfolio.
Non-Core Business: The company completed the divestiture of its Respiratory Health business and sold its Hyaluronic Acid product line to focus on its core segments.
Restructuring Initiatives: The company is undergoing a restructuring process to align its organizational structure and operational footprint, expecting to incur up to $10.0 million in incremental expenses with anticipated annualized savings between $15.0 million and $20.0 million.