Adjusted EBITDA was $256 million, down from $268 million in Q2 2024.
GAAP net income was $86 million or $0.70 per diluted share, down from $104 million or $0.80 per diluted share in the prior year.
GAAP operating margin decreased by 42 basis points to 4.67%, and non-GAAP operating margin decreased by 79 basis points to 6.96%, mainly due to lower glove pricing and targeted sales initiatives.
Global sales for Q2 2025 were $3.2 billion, representing 3.3% growth compared to Q2 2024, with constant currency growth of 2.7%.
Global Specialty Products sales grew 4.2% (3.3% constant currency), with strong growth in implants and biomaterials; orthodontics declined but at a slower pace.
Global Technology Group sales grew 7.4% (6.6% constant currency), driven by cloud-based practice management software and revenue cycle management solutions.
Global Value-Added Services sales grew 3.6%, impacted by lower Practice Transitions sales due to a tough prior year comparison.
International Dental Merchandise sales grew 1.9% (0.5% constant currency), impacted by Easter timing; International Dental Equipment sales grew 12.1% (9.1% constant currency).
Non-GAAP net income was $135 million or $1.10 per diluted share, compared to $158 million or $1.23 per diluted share in the prior year.
Operating cash flow was $120 million, with expectations to exceed net income for the full year.
Restructuring expenses were $23 million, mainly severance, with expected annual run rate savings of over $100 million by end of 2025.
U.S. Dental Merchandise sales declined 1.2% due to increased volume offset by lower prices; U.S. Dental Equipment sales declined 4.7% due to economic uncertainty and tariffs.
U.S. Medical Distribution sales grew 6.3%, driven by increased patient traffic and strong Home Solutions performance.
Adjusted EBITDA grew 11.3% to $17.6 million with a margin improvement to 23.7% from 22.1% last year.
Gross margin declined to 64.6% from 66.8% due to increased cloud hosting costs and higher royalty expenses.
HealthStream reported record quarterly revenue of $74.4 million, up 4% year-over-year.
Legacy product declines offset some growth, with a $1.8 million decrease in legacy credentialing and scheduling products.
Operating expenses excluding cost of revenues declined by 2.9%, with notable decreases in general and administrative expenses.
Operating income increased by 33.4% to $5.9 million, and net income rose 29.3% to $5.4 million.
Remaining performance obligations increased to $618 million from $538 million last year, with 39% expected to convert to revenue in the next 12 months.
Subscription revenues increased by 4.2%, driven by strong growth in CredentialStream (26%), ShiftWizard (21%), and Competency Suite (18%).
Dafinchi