Enovis’ third quarter results surpassed Wall Street’s revenue and non-GAAP profit expectations, but the market reacted negatively to the report. Management highlighted strong organic growth across the Reconstruction (Recon) and Prevention & Recovery (P&R) businesses, with particular momentum in extremities and the integration of the Lima acquisition internationally. CEO Damien McDonald noted that execution on commercial initiatives and product innovation, such as the ARG system and Nebula Stem, supported performance. However, the period was weighed down by operational challenges including tariffs and the recently recorded goodwill impairment, which contributed to investor caution despite underlying revenue strength.
Is now the time to buy ENOV? Find out in our full research report (it’s free for active Edge members).
Enovis (ENOV) Q3 CY2025 Highlights:
- Revenue: $548.9 million vs analyst estimates of $537.6 million (8.6% year-on-year growth, 2.1% beat)
- Adjusted EPS: $0.75 vs analyst estimates of $0.65 (15.6% beat)
- Adjusted EBITDA: $94.77 million vs analyst estimates of $92.05 million (17.3% margin, 3% beat)
- The company reconfirmed its revenue guidance for the full year of $2.26 billion at the midpoint
- Management raised its full-year Adjusted EPS guidance to $3.18 at the midpoint, a 1.6% increase
- EBITDA guidance for the full year is $400 million at the midpoint, above analyst estimates of $395.3 million
- Operating Margin: -102%, down from -6.3% in the same quarter last year
- Organic Revenue rose 6.4% year on year vs analyst estimates of 6% growth (46.8 basis point beat)
- Market Capitalization: $1.79 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Enovis’s Q3 Earnings Call
- Vikramjeet Chopra (Wells Fargo) asked about trends in U.S. procedure volumes, with CEO Damien McDonald stating volumes remained "healthy and stable" but acknowledged external pressures like government policy could impact sentiment.
- Young Li (Jefferies) inquired about further portfolio streamlining after the Dr. Comfort sale. McDonald said, "everything is on the table," emphasizing ongoing review of cash generation and SKU rationalization.
- Allen (JPMorgan, for Robbie Marcus) pressed on drivers of upside to guidance and free cash flow priorities. CFO Ben Berry highlighted a focus on debt paydown and anticipated step-downs in integration and regulatory costs in 2026.
- Vijay Kumar (Evercore ISI) questioned the impact of Arvis delays on implant sales. McDonald confirmed there was no material impact and expects ecosystem benefits from the broader Arvis launch next year.
- Michael Matson (Needham) asked about the accretion from the Dr. Comfort divestiture. Berry said the transaction provides a "little bit of a tailwind" for growth and margins but is not material to overall company results.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be tracking (1) adoption rates and surgeon feedback for new launches like Arvis Ultra and Nebula Stem, (2) the realization of cross-selling synergies and momentum in international markets following the Lima integration, and (3) the effectiveness of margin protection strategies as tariffs and pricing pressures persist. Portfolio optimization decisions and free cash flow improvements will also be important markers.
Enovis currently trades at $31.25, in line with $31.50 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).
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