Adjusted diluted earnings per share were $0.17, and adjusted EBITDA was $17 million.
Adjusted gross margins stood at 55.7%, with SG&A expenses at 45.2% of revenue.
A noncash goodwill impairment charge of $77 million was recorded in the Pain Management and Recovery segment due to downward market capitalization pressure.
Avanos reported net sales of $175 million in Q2 2025, adjusted for foreign exchange and portfolio changes, with organic sales up 2% year-over-year.
Balance sheet remains strong with $90 million cash and $105 million debt, maintaining leverage below 1 turn.
Free cash flow was negative $4 million for the quarter, affected by tax payments timing and higher capital expenditures.
Pain Management and Recovery segment's normalized organic sales increased 3.4%, with strong 13.8% growth in the radiofrequency ablation (RFA) business.
Specialty Nutrition Systems segment grew 5% organically, with operating profit near 18%, impacted by tariffs and cost absorption.
Dafinchi