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.
Adjusted net income for Q2 was $20.5 million or $0.26 per share, compared to $19.3 million or $0.25 per share in the prior year quarter.
Net debt increased to $1.9 billion at June 30, 2025, primarily due to $100 million cash paid to terminate the Rotech acquisition, with operating cash flow improving to $38 million in Q2.
Second quarter 2025 revenue was $682 million, up 3.3% year-over-year, with adjusted EBITDA of $96.6 million representing a 14.2% margin, improved from 13.8% in Q2 2024.
Year-to-date revenue reached $1.36 billion, a 4.5% increase over the first half of 2024, driven by strong growth in sleep, ostomy, and urology categories.
Strong and Sustained Revenue Growth in Core Business and New Launch Countries
Amicus reported 17th consecutive quarter of double-digit revenue growth at CER, driven by Pompe and Fabry disease.
Q2 revenue reached $154.7 million, up 22% YoY, with significant contributions from newly launched countries including Italy, Switzerland, Portugal, Czech Republic, Sweden, and the Netherlands.
The company expects continued growth in these markets and plans to launch in up to 10 new countries in 2025.