Adjusted gross margin was 56.5%, 120 basis points higher than prior year quarter.
Adjusted net income was $35.6 million, up 16.4% year-over-year; adjusted diluted EPS was $1.15, up 17.3%.
Cash balance was $33.9 million; accounts receivable days stable at 62; inventory days decreased by 10 to 212.
Cash flow from operations was $29.1 million, down from $43.3 million in prior year; capital expenditures increased to $5.7 million.
GAAP net income was $21.4 million compared to $30.0 million in 2024; GAAP EPS was $0.69 versus $0.96 a year ago.
General surgery sales grew 4.4% worldwide; orthopedic sales grew 0.8% worldwide.
Long-term debt decreased to $881.1 million; leverage ratio improved to 3.1x.
R&D expense was 4.1% of sales, slightly lower than prior year; adjusted SG&A was 37.1% of sales, slightly higher.
Total sales for Q2 were $342.3 million, slightly above the high end of guidance, with 3.1% year-over-year growth as reported and 2.9% in constant currency.
Adjusted EBITDA was negative $83 million in Q2 2025 versus negative $3 million in Q2 2024, reflecting risk adjustment and Part D cost impacts partially offset by cost initiatives.
Medical cost trends were around 6% in the first half of 2025, consistent with prior expectations.
Medical margin was negative $53 million in Q2 2025 compared to positive $106 million in Q2 2024, driven by underperformance in burden of illness programs and prior period adjustments.
Medicare Advantage membership declined to 498,000 from 513,000 year-over-year, reflecting a measured growth approach and market exits.
Q2 2025 revenue was $1.4 billion, down from $1.48 billion in Q2 2024, primarily due to lower risk adjustment and unfavorable Part D development.
Dafinchi