Integra LifeSciences (IART) Financials

Integra LifeSciences (NASDAQ: IART) has shown a mixed performance over the past several years, with significant fluctuations in profitability and cash flow. Here are some key trends from the last four years based on their quarterly financial statements:

• Revenue growth has generally been strong and consistent, with quarterly operating revenues increasing from around $380 million in early 2023 to over $415 million in Q2 2025.
• Gross profit margins remain steady, supported by relatively stable cost of revenue ratios, enabling solid gross profits in the range of $200 million to $250 million quarterly across the period.
• The company maintains a significant asset base exceeding $3.6 billion as of mid-2025, with growth in total assets over recent years, reflecting investment in goodwill, intangible assets, and property, plant, and equipment.
• Cash and equivalents remain robust, with balances of approximately $218 million by Q2 2025, providing liquidity to support operations and investments.

• Operating expenses, including selling, general & administrative (SG&A) and research & development, have fluctuated but stay within expected ranges for a company of this size and industry, ranging roughly $180 million to $230 million quarterly.
• Depreciation and amortization expenses total approximately $37 million and $1.9 million respectively for Q2 2025, reflecting ongoing asset investment and amortization of intangibles.
• The company employs both short-term and long-term debt, with short-term debt near $613 million and long-term debt about $1.23 billion as of Q2 2025, indicating leverage that needs monitoring over time.
• Capital lease obligations and other liabilities add to total liabilities near $2.63 billion, which must be balanced against equity of roughly $1.04 billion. This capital structure shows significant liabilities but stable equity.

• Despite healthy revenues, the company reported significant net losses in recent quarters, with a particularly large loss of about $484 million in Q2 2025, driven mainly by a non-cash impairment charge of over $511 million, which greatly impacted profitability.
• Negative net cash from operating activities was observed in Q1 2025 (-$11.3 million), and continuing operating cash flow remained modest at $8.9 million in Q2 2025, indicating challenges in cash conversion from operations.
• The company reported sharply negative quarterly earnings per share (diluted EPS -$6.31 in Q2 2025) compared to positive EPS in prior years, reflecting the impact of impairment charges and operational losses.
• The large impairment charge and resulting losses suggest potential risks in asset valuation or operational challenges. Investors should monitor if this is a one-time event or a sign of underlying issues.
• Net cash flows from investing activities have generally been negative due to ongoing purchases of property, plant, and equipment, alongside investments acquisitions, putting pressure on free cash flow.
• Financing activities show frequent debt issuance and repayments, along with equity repurchases in earlier years, indicating active management of capital but also potential refinancing or cash burn concerns.

Summary: Integra LifeSciences demonstrates steady revenue and asset growth, with solid gross margins and liquidity. However, the recent significant impairment charge leading to heavy losses and weak operating cash flow raises caution. The company’s leverage levels and ongoing capital expenditures require attention. Retail investors should weigh the impact of the impairment on future earnings and cash flow against the company’s growth prospects and industry position.