PLANO, Texas, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Integer Holdings Corporation (NYSE:ITGR) today announced results for the three months ended July 3, 2026.
Second Quarter 2026 Highlights (compared to Second Quarter 2025, except as noted)
- Sales decreased 2.6% to $464 million. Organic sales decreased 1.5%.
- GAAP operating income from continuing operations totaled $35 million, a decrease of $25 million or 42%. Non-GAAP adjusted operating income totaled $73 million, a decrease of $8 million or 10%.
- GAAP income from continuing operations totaled $24 million, a decrease of $13 million or 36%. Non-GAAP adjusted net income totaled $55 million, a decrease of $0.1 million or 0%.
- GAAP diluted EPS income from continuing operations totaled $0.69, a decrease of $0.35 or 34%. Non-GAAP adjusted EPS totaled $1.60, an increase of $0.05 or 3%.
- Adjusted EBITDA totaled $95 million, a decrease of $4 million or 4%.
- From the end of 2025, total debt increased $53 million to $1.238 billion and Non-GAAP net total debt increased $46 million to $1.236 billion, resulting in a leverage ratio of 3.2 times adjusted EBITDA as of July 3, 2026.
In a separate press release issued today, Integer and KKR announced they have entered into a definitive agreement under which an affiliate of investment funds managed by KKR will acquire all of the outstanding shares of Integer in an all-cash transaction valued at an enterprise value of $5.7 billion. Under the terms of the agreement, Integer stockholders will receive $127 per share in cash.
Given the pending transaction, Integer is withdrawing its previously issued financial outlook and will not host its previously scheduled earnings conference call and webcast scheduled for Thursday, August 6, 2026.
Discussion of Product Line Second Quarter 2026 Sales
- Cardio & Vascular sales decreased 2% to $280 million in the second quarter 2026 compared to the second quarter 2025, reflecting the previously communicated impact from the two new Electrophysiology products.
- Cardiac Rhythm Management & Neuromodulation sales increased 1% to $174 million in the second quarter 2026 compared to the second quarter 2025. Growth was partially offset by the previously communicated impact from the one new Neuromodulation product.
- Other Markets sales totaled $10 million in the second quarter 2026, compared to $18 million in the second quarter 2025, primarily due to the Portable Medical exit.
Summary Financial Results
(dollars in thousands, except per share data)
2026 June 27,
2025 QTD Change July 3,
2026 June 27,
2025 YTD ChangeOperating income$34,528 $59,338 (41.8)% $66,397 $108,890 (39.0)%Income from continuing operations$23,605 $37,009 (36.2)% $40,111 $14,544 175.8%Diluted EPS from continuing operations$0.69 $1.04 (33.7)% $1.17 $0.41 185.4% EBITDA(a)$67,964 $87,636 (22.4)% $133,060 $119,274 11.6%Adjusted EBITDA(a)$94,939 $98,951 (4.1)% $180,000 $190,460 (5.5)%Adjusted operating income(a)$72,991 $81,266 (10.2)% $134,044 $152,189 (11.9)%Adjusted net income(a)$54,707 $54,818 (0.2)% $96,002 $100,756 (4.7)%Adjusted EPS(a)$1.60 $1.55 3.2% $2.80 $2.85 (1.8)%
(a) EBITDA, adjusted EBITDA, Adjusted operating income, Adjusted net income, and Adjusted EPS are non-GAAP financial measures. Please see “Notes Regarding Non-GAAP Financial Information” for additional information regarding our use of non-GAAP financial measures. Refer to Tables A, B and C at the end of this release for reconciliations of adjusted amounts to the closest corresponding GAAP financial measures.
Summary Product Line Results
(dollars in thousands)
2026 June 27,
2025 QTD Change Organic Change(a)Product Line Sales Cardio & Vascular$280,308 $286,855 (2.3)% (2.5)%Cardiac Rhythm Management & Neuromodulation 173,712 171,998 1.0% 1.0%Other Markets 10,090 17,641 (42.8)% (13.5)%Total Sales$464,110 $476,494 (2.6)% (1.5)% Six Months Ended July 3,
2026 June 27,
2025 YTD Change Organic Change(a)Product Line Sales Cardio & Vascular$542,041 $545,726 (0.7)% (1.5)%Cardiac Rhythm Management & Neuromodulation 341,976 332,343 2.9% 2.9%Other Markets 19,673 35,817 (45.1)% (12.4)%Total Sales$903,690 $913,886 (1.1)% (0.1)%
(a) Organic sales change is a non-GAAP financial measure. Please see “Notes Regarding Non-GAAP Financial Information” for additional information regarding our use of non-GAAP financial measures and refer to Table D at the end of this release for a reconciliation of these amounts to the closest corresponding GAAP financial measures.
About Integer®
Integer Holdings Corporation (NYSE: ITGR) is one of the largest medical device contract development and manufacturing organizations (CDMOs) in the world, serving the cardio and vascular, neuromodulation, and cardiac rhythm management markets. As a strategic partner of choice, we advance the goals of our medical device customers through industry-leading engineering and manufacturing, with a relentless commitment to quality, service, and innovation. The company's brands include Greatbatch Medical® and Lake Region Medical®. Additional information is available at www.integer.net.
Investor Relations:
Kristen Stewart
551-337-3973
[email protected]
Notes Regarding Non-GAAP Financial Information
|In addition to our results reported in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we provide adjusted net income, adjusted EPS, earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA, adjusted operating income, and organic sales change. Unless otherwise indicated, all financial metrics presented reflect continuing operations only.
Adjusted net income and adjusted EPS consist of GAAP income (loss) from continuing operations and diluted EPS from continuing operations, respectively, adjusted for the following to the extent occurring during the period: (i) amortization of intangible assets, (ii) certain legal expenses; (iii) restructuring and restructuring-related charges; (iv) acquisition and integration costs; (v) other general expenses; (vi) ERP implementation, (vii) (gain) loss on equity investments; (viii) extinguishment of debt charges, (ix) debt conversion inducement expense; (x) European Union medical device regulation incremental charges; (xi) inventory step-up amortization; (xii) unusual, or infrequently occurring items; (xiii) the income tax provision (benefit) related to these adjustments and (xiv) certain tax items that are outside the normal tax provision for the period. Adjusted EPS is calculated by dividing adjusted net income by adjusted weighted average shares.
The weighted average shares used to calculate diluted EPS in accordance with GAAP includes dilution, when applicable, resulting from the potential conversion of our 2028 Convertible Notes and 2030 Convertible Notes (collectively, the “Convertible Notes”). In connection with the issuance of the Convertible Notes, we entered into capped call contracts which are expected to reduce the potential dilution on our common stock in connection with any conversion of the Convertible Notes, subject to a cap. Adjusted weighted average shares consists of GAAP weighted average shares used to calculate diluted EPS, including, when applicable, dilutive common stock equivalents that were excluded from weighted average shares used to calculate diluted EPS as their inclusion would be anti-dilutive and excluding, when applicable, dilution resulting from the potential conversion of our Convertible Notes expected to be offset by the capped call contracts.
EBITDA is calculated by adding back interest expense, provision for income taxes, depreciation expense, and amortization expense from intangible assets and financing leases, to income (loss) from continuing operations, which is the most directly comparable GAAP financial measure. Adjusted EBITDA consists of EBITDA plus adding back stock-based compensation and the same adjustments as listed above except for items (i), (viii), (xiii) and (xiv). Adjusted operating income consists of operating income adjusted for the same items listed above except for items (vii), (viii), (ix), (xiii) and (xiv).
Organic sales change is reported sales growth adjusted to remove the impact of foreign currency, the contribution of acquisitions and the strategic exit of the Portable Medical market. To calculate the impact of foreign currency on sales growth rates, we convert any sale made in a foreign currency by converting current period sales into prior period sales using the exchange rate in effect at that time and then compare the two, negating any effect foreign currency had on our transactional revenue. For contribution of acquisitions, we exclude the impact on the growth rate attributable to the contribution of acquisitions in all periods where there were no comparable sales. For the strategic exit of the Portable Medical market, we exclude the impact on the growth rate attributable to Portable Medical sales for all periods presented.
We believe that the presentation of adjusted net income, adjusted EPS, EBITDA, adjusted EBITDA, adjusted operating income, and organic sales change, provides important supplemental information to management and investors seeking to understand the financial and business trends relating to our financial condition and results of operations. In addition to the performance measures identified above, we believe that net total debt and leverage ratio provide meaningful measures of liquidity and a useful basis for assessing our ability to fund our activities, including the financing of acquisitions and debt repayments. Net total debt is calculated as total principal amount of debt outstanding less cash and cash equivalents. We calculate leverage ratio as net total debt divided by adjusted EBITDA for the trailing 4 quarters.
Forward-Looking Statements
Some of the statements contained in this communication and other written and oral statements made from time to time by us and our representatives are not statements of historical or current fact. As such, they are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby under the Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current expectations, and these statements are subject to known and unknown risks, uncertainties and assumptions. Forward-looking statements include, but are not limited to, statements relating to: our goals, plans, and strategic initiatives; long-term growth prospects; maximizing value for our stockholders; and other events, conditions or developments that will or may occur in the future; and timing of any of the foregoing. You can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “forecast,” “outlook,” “assume,” “potential” or “continue” or variations or the negative counterparts of these terms or other comparable terminology. These statements are only predictions and are no guarantee of future performance, and investors should not place undue reliance on forward-looking statements as predictive of future results. Actual events or results may differ materially from those stated or implied by these forward-looking statements. In evaluating these statements and our prospects, you should carefully consider the factors set forth below. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary factors and to others contained throughout this communication.
Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements regarding the transactions contemplated by the Agreement and Plan of Merger, by and among Integer Holdings Corporation (the “Company”), Armstrong Parent, Inc. (“Buyer”) and Armstrong Bidco, Inc. (the “Transaction”). All such forward-looking statements are based upon current plans, estimates, expectations, opportunities and ambitions that are subject to risks, uncertainties, assumptions, and other important factors, many of which are beyond the control of the Company, that could cause actual results to differ materially from those expressed in such forward-looking statements. Key factors that could cause actual results to differ materially include, but are not limited to, the expected timing and likelihood of completion of the Transaction, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals; the occurrence of any event, change or other circumstances that could give rise to the termination of the Transaction; the possibility that the Company’s stockholders may not approve the Transaction; the risk that the parties may not be able to satisfy the conditions to the Transaction in a timely manner or at all; risks related to disruption of management time from ongoing business operations due to the Transaction; the risk that any announcements relating to the Transaction could have adverse effects on the market price of the Company’s common stock; the risk that the Transaction and its announcement could have an adverse effect on the parties’ business relationships and business generally, including the ability of the Company to retain customers and retain and hire key personnel and maintain relationships with their suppliers and customers, and on their operating results and businesses generally; the risk of unforeseen or unknown liabilities; customer, stockholder, regulatory and other stakeholder approvals and support; the risk of unexpected future capital expenditures; the risk of potential litigation relating to the Transaction that could be instituted against the Company or its directors and/or officers; the risk associated with third-party contracts containing material consent, anti-assignment, transfer or other provisions that may be related to the Transaction which are not waived or otherwise satisfactorily resolved; significant costs, or expenses incurred in connection with the Transaction; the Buyer’s ability to obtain the necessary financing arrangements set forth in the commitment letters received in connection with the Transaction; certain restrictions contained in the Agreement and Plan of Merger that may impact the Company’s ability to pursue certain business opportunities or strategic transactions; the risk of various events that could disrupt operations, including pandemics, epidemics or other public health crises or severe weather (such as droughts, floods, avalanches and earthquakes), cybersecurity attacks, security threats and governmental response to them, and technological changes; the risks of labor disputes, changes in labor costs and labor difficulties; and the risks resulting from other effects of industry, market, economic, legal or legislative, political or regulatory conditions outside of the Company’s control. All such factors are difficult to predict and are beyond our control, including those detailed in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2025, which was filed with the Securities Exchange Commission (the “SEC”) on February 23, 2026 (the “Form 10-K”), quarterly reports on Form 10-Q and other documents subsequently filed by the Company with the SEC. The Company’s forward-looking statements are based on assumptions that the Company believes to be reasonable but that may not prove to be accurate. Other unpredictable or factors not discussed in this communication could also have material adverse effects on forward-looking statements. The Company does not assume an obligation to update any forward-looking statements, except as required by applicable law. These forward-looking statements speak only as of the date hereof.
2026 December 31,
2025ASSETS Current assets: Cash and cash equivalents$21,375 $17,161 Accounts receivable, net 338,729 346,079 Inventories 288,058 253,739 Contract assets 119,024 112,546 Prepaid expenses and other current assets 43,449 40,572 Total current assets 810,635 770,097 Property, plant and equipment, net 532,340 536,427 Goodwill 1,104,651 1,110,908 Other intangible assets, net 788,841 825,435 Deferred income taxes 9,014 8,994 Operating lease assets 82,574 98,437 Financing lease assets 56,429 37,109 Other long-term assets 39,113 23,170 Total assets$3,423,597 $3,410,577 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable$111,850 $113,130 Operating lease liabilities 8,209 9,099 Accrued expenses and other current liabilities 97,082 109,812 Total current liabilities 217,141 232,041 Long-term debt 1,237,883 1,185,179 Deferred income taxes 114,747 116,327 Operating lease liabilities 67,143 81,899 Financing lease liabilities 51,296 28,578 Other long-term liabilities 16,638 19,910 Total liabilities 1,704,848 1,663,934 Stockholders’ equity: Common stock 35 35 Additional paid-in capital 756,545 771,223 Treasury stock (110,734) (76,872)Retained earnings 1,034,166 994,055 Accumulated other comprehensive income 38,737 58,202 Total stockholders’ equity 1,718,749 1,746,643 Total liabilities and stockholders’ equity$3,423,597 $3,410,577
(in thousands, except per share data) Three Months Ended Six Months Ended July 3,
2026 June 27,
2025 July 3,
2026 June 27,
2025Sales$464,110 $476,494 $903,690 $913,886 Cost of sales 351,168 347,342 681,153 664,416 Gross profit 112,942 129,152 222,537 249,470 Operating expenses: Selling, general and administrative 57,699 52,923 116,410 104,083 Research, development and engineering 11,278 14,240 27,521 28,441 Restructuring and other charges 9,437 2,651 12,209 8,056 Total operating expenses 78,414 69,814 156,140 140,580 Operating income 34,528 59,338 66,397 108,890 Interest expense 10,135 9,754 19,869 24,559 (Gain) loss on equity investments (42) 8 1,426 (173)Other loss, net 1,144 3,980 1,460 51,907 Income from continuing operations before taxes 23,291 45,596 43,642 32,597 Provision (benefit) for income taxes (314) 8,587 3,531 18,053 Income from continuing operations 23,605 37,009 40,111 14,544 Loss from discontinued operations, net of tax — — — (22)Net income$23,605 $37,009 $40,111 $14,522 Basic earnings per share: Income from continuing operations$0.69 $1.06 $1.17 $0.42 Loss from discontinued operations$— $— $— $— Basic earnings per share$0.69 $1.06 $1.17 $0.42 Diluted earnings per share: Income from continuing operations$0.69 $1.04 $1.17 $0.41 Loss from discontinued operations$— $— $— $— Diluted earnings per share$0.69 $1.04 $1.17 $0.41 Weighted average shares outstanding: Basic 34,010 35,035 34,146 34,488 Diluted 34,145 35,713 34,290 35,830
2026 June 27,
2025Cash flows from operating activities: Net income$40,111 $14,522 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 69,549 62,118 Debt related charges included in interest expense 3,263 3,627 Debt conversion inducement expense — 46,681 Stock-based compensation 12,045 12,536 Non-cash fixed asset impairment 5,893 — Non-cash lease expense 4,876 5,000 Non-cash (gains) losses on equity investments 1,426 (173)Contingent consideration fair value adjustment (1,179) (309)Other non-cash losses 2,077 3,143 Deferred income taxes 18 3,942 Gain on sale of discontinued operations — (46)Changes in operating assets and liabilities, net of acquisitions: Accounts receivable 7,959 (41,014)Inventories (36,751) (14,509)Prepaid expenses and other assets (2,247) 71 Contract assets (6,762) 1,800 Accounts payable 5,591 11,561 Accrued expenses and other liabilities (11,761) (23,312)Income taxes payable (9,678) (10,500)Net cash provided by operating activities 84,430 75,138 Cash flows from investing activities: Acquisition of property, plant and equipment (46,651) (44,219)Purchase of equity and other investments, net of distributions (14,043) — Acquisitions, net — (170,872)Other investing activities 108 97 Net cash used in investing activities (60,586) (214,994)Cash flows from financing activities: Principal payments of long-term debt — (657,693)Proceeds from issuance of convertible notes, net of discount — 977,500 Proceeds from revolving credit facility 207,600 257,000 Payments of revolving credit facility (157,600) (373,000)Purchase of capped calls — (71,000)Payment of debt issuance costs (38) (1,266)Proceeds from the exercise of stock options — 3,644 Tax withholdings related to net share settlements of restricted stock unit awards (10,299) (16,707)Repurchases of common stock (50,000) — Principal payments on finance leases (4,256) (2,596)Other financing activities (5,162) 107 Net cash provided by (used in) financing activities (19,755) 115,989 Effect of foreign currency exchange rates on cash and cash equivalents 125 459 Net increase (decrease) in cash and cash equivalents 4,214 (23,408)Cash and cash equivalents, beginning of period 17,161 46,543 Cash and cash equivalents, end of period$21,375 $23,135
Table A: Adjusted Net Income and Diluted EPS from Continuing Operations Reconciliations
(in thousands, except per share amounts)
Diluted
Share(a) Pre-Tax Net of Tax Per
Diluted
Share(a)Income from continuing operations (GAAP)$23,291 $23,605 $0.69 $45,596 $37,009 $1.04Adjustments(b): Amortization of intangible assets 15,973 12,897 0.38 16,120 12,978 0.37Certain legal expenses (SG&A)(c) 1,931 1,525 0.04 9 6 —Restructuring and restructuring-related charges(d) 4,397 3,212 0.09 2,575 2,049 0.06Acquisition and integration costs(e) 173 141 — 2,007 1,596 0.04Other general expenses(f) 7,423 6,297 0.18 7 7 —ERP implementation(g) 4,921 3,887 0.11 — — —(Gain) loss on equity investments(h) (42) (33) — 8 6 —Loss on extinguishment of debt(i) — — — 130 103 —Medical device regulations(j) 44 35 — 262 207 0.01Other adjustments(k) 3,601 2,845 0.08 948 750 0.02Tax adjustments(l) — 296 0.01 — 107 —Adjusted net income (non-GAAP)$61,712 $54,707 $1.60 $67,662 $54,818 $1.55 Six Months Ended July 3, 2026 June 27, 2025 Pre-Tax Net of Tax Per
Diluted
Share(a) Pre-Tax Net of Tax Per
Diluted
Share(a)Income from continuing operations (GAAP)$43,642 $40,111 $1.17 $32,597 $14,544 $0.41Adjustments(b): Amortization of intangible assets 31,967 25,820 0.75 30,971 24,927 0.71Certain legal expenses (SG&A)(c) 2,139 1,689 0.05 111 87 —Restructuring and restructuring-related charges(d) 6,245 4,672 0.14 3,677 2,938 0.08Acquisition and integration costs(e) 1,615 1,284 0.04 6,749 5,347 0.15Other general expenses(f) 8,146 6,868 0.20 6 6 —ERP implementation(g) 8,274 6,536 0.19 — — —(Gain) loss on equity investments(h) 1,426 1,126 0.03 (173) (137) —Loss on extinguishment of debt(i) — — — 867 685 0.02Debt conversion inducement expense(m) — — — 46,681 46,681 1.32Medical device regulations(j) 344 272 0.01 512 404 0.01Other adjustments(k) 8,917 7,045 0.21 1,273 1,006 0.03Tax adjustments(l) — 579 0.02 — 4,268 0.12Adjusted net income (Non-GAAP)$112,715 $96,002 $2.80 $123,271 $100,756 $2.85
(a) Income from continuing operations (GAAP) per diluted share amounts are calculated in accordance with GAAP using weighted average shares for diluted EPS. The per share amounts for the adjustments in the table above and adjusted net income are calculated using adjusted weighted average shares. The following table provides a reconciliation from GAAP weighted average shares for diluted EPS to non-GAAP adjusted weighted average shares.
Three Months Ended Six Months Ended July 03, 2026 June 27, 2025 July 03, 2026 June 27, 2025Weighted average shares for diluted EPS (GAAP) 34,145 35,713 34,290 35,830 Less: 2028 Convertible Notes capped call options impact (28) (240) (13) (515)Adjusted weighted average shares (non-GAAP) 34,117 35,473 34,277 35,315(b) The difference between pre-tax and net of tax amounts is the estimated tax impact related to the respective adjustment. Net of tax amounts are computed using a 21% U.S. tax rate, and the statutory tax rates applicable in foreign tax jurisdictions, as adjusted for the existence of net operating losses (“NOLs”). Expenses that are not deductible for tax purposes (i.e. permanent tax differences) are added back at 100%.
(c) Certain legal expenses associated with non-ordinary course legal matters. Amounts for 2026 include $1.8 million of expense incurred in connection with the Company’s defense of a securities class action lawsuit.
(d) We initiate discrete restructuring programs primarily to realign resources to better serve our customers and markets, improve operational efficiency and capabilities, and lower operating costs or improve profitability. Depending on the program, restructuring charges may include termination benefits, contract termination, facility closure and other exit and disposal costs. Restructuring-related expenses are directly related to the program and may include retention bonuses, accelerated depreciation, consulting expense and costs to transfer manufacturing operations among our facilities. Amounts for the second quarter and first six months of 2026 include $1.8 million and $2.8 million, respectively, relating to our global manufacturing alignment restructuring initiative. In addition, the second quarter of 2026 includes $2.4 million related to an organizational realignment to enhance execution of our strategy through dedicated focus on growth and operational excellence.
(e) Acquisition and integration costs are incremental costs that are directly related to a business or asset acquisition. These costs may include, among other things, professional, consulting and other fees, system integration costs, and fair value adjustments relating to contingent consideration.
(f) Other general expenses are discrete transactions occurring sporadically and affect period-over-period comparisons. The Company recorded fixed asset impairment charges of $5.9 million during the second quarter of 2026. The impairment charges were primarily due to revised expectations regarding the future use of certain fixed assets.
(g) These adjustments represent direct and incremental costs incurred in connection with our implementation of a new global enterprise resource planning ("ERP") solution and related IT transition costs. An implementation of this scale is a significant undertaking and will require substantial time and attention of management and key employees. The associated costs do not represent normal and recurring operating expenses and will be inconsistent in amounts and frequency making it difficult to contribute to a meaningful evaluation of our operating performance. Expenses for 2026 were primarily included in SG&A.
(h) Amounts reflect our share of equity method investee (gains) losses including unrealized appreciation/depreciation of the underlying interests of the investee.
(i) Loss on extinguishment of debt consists of accelerated write-offs of unamortized deferred debt issuance costs and discounts, which are included in interest expense.
(j) The charges represent incremental costs of complying with European Union medical device regulations for previously registered products and primarily include charges for contractors supporting the project and other direct third-party expenses.
(k) Other adjustments include costs which impact period-to-period comparability and do not represent the underlying ongoing results of our business. For 2025 and 2026, amounts include costs associated with leadership transitions, strategic projects, a stockholder activist matter, the Strategic Review announced during the quarter, pursuant to which we subsequently entered into the definitive agreement described elsewhere herein, and a cyber incident. Other adjustments includes the following expenses (in millions):
(l) Tax adjustments include changes to uncertain tax benefits and associated interest for all periods presented. In addition, included in the amount for the first six months of 2025 is the write off a deferred tax asset for $4.1 million related to the a portion of the unamortized original issue discount due to the partial exchange of the 2028 Convertible Notes.
(m) Debt conversion inducement expense relates to the partial exchange of the 2028 Convertible Notes and is recorded within Other loss, net in the Condensed Consolidated Statements of Operations.
Please see “Notes Regarding Non-GAAP Financial Information” for additional information regarding our use of non-GAAP financial measures.
Table B: Adjusted Operating Income Reconciliations
(in thousands)
2026 June 27,
2025 July 3,
2026 June 27,
2025Operating income (GAAP)$34,528 $59,338 $66,397 $108,890Adjustments: Amortization of intangible assets 15,973 16,120 31,967 30,971Certain legal expenses 1,931 9 2,139 111Restructuring and restructuring-related charges 4,397 2,575 6,245 3,677Acquisition and integration costs 173 2,007 1,615 6,749Other general expenses 7,423 7 8,146 6ERP implementation 4,921 — 8,274 —Medical device regulations 44 262 344 512Other adjustments 3,601 948 8,917 1,273Adjusted operating income (non-GAAP)$72,991 $81,266 $134,044 $152,189
Table C: EBITDA and Adjusted EBITDA Reconciliations
(in thousands)
2026 June 27,
2025 July 3,
2026 June 27,
2025Income from continuing operations (GAAP)$23,605 $37,009 $40,111 $14,544 Interest expense 10,135 9,754 19,869 24,559 Provision (benefit) for income taxes (314) 8,587 3,531 18,053 Depreciation(a) 16,743 15,040 34,086 29,026 Amortization of intangible assets and financing leases 17,795 17,246 35,463 33,092 EBITDA (non-GAAP) 67,964 87,636 133,060 119,274 Stock-based compensation(b) 4,527 5,499 9,834 12,350 Certain legal expenses 1,931 9 2,139 111 Restructuring and restructuring-related charges 4,397 2,575 6,245 3,677 Acquisition and integration costs 173 2,007 1,615 6,749 Other general expenses 7,423 7 8,146 6 ERP implementation 4,921 — 8,274 — (Gain) loss on equity investments (42) 8 1,426 (173)Debt conversion inducement expense — — — 46,681 Medical device regulations 44 262 344 512 Other adjustments 3,601 948 8,917 1,273 Adjusted EBITDA (non-GAAP)$94,939 $98,951 $180,000 $190,460
(a) Excludes amounts included in Restructuring and restructuring-related charges.
(b) Total stock-based compensation expense less amounts included in Restructuring and restructuring-related charges, ERP implementation, and Other adjustments.
Table D: Organic Sales Change Reconciliation (% Change)
GAAP Reported Growth Impact of Foreign Currency(a) Impact of StrategicExits and Acquisitions(a) Non-GAAP Organic ChangeQTD Change (2Q 2026 vs. 2Q 2025) Product Line Cardio & Vascular(2.3)% 0.1% 0.1% (2.5)%Cardiac Rhythm Management & Neuromodulation1.0% —% —% 1.0%Other Markets(42.8)% —% (29.3)% (13.5)%Total Sales(2.6)% 0.1% (1.2)% (1.5)% YTD Change (6M 2026 vs. 6M 2025) Product Line Cardio & Vascular(0.7)% 0.3% 0.5% (1.5)%Cardiac Rhythm Management & Neuromodulation2.9% —% —% 2.9%Other Markets(45.1)% —% (32.7)% (12.4)%Total Sales(1.1)% 0.2% (1.2)% (0.1)%
(a) Sales growth has been adjusted to exclude the impact of foreign currency exchange rate fluctuations, when applicable, and strategic exits and acquisitions.
Table E: Net Total Debt Reconciliation
(in thousands)
2026 December 31,
2025Total debt$1,237,883 $1,185,179Add: Debt discounts and deferred issuance costs included in Total debt 19,401 22,105Total principal amount of debt outstanding 1,257,284 1,207,284Less: Cash and cash equivalents 21,375 17,161Net Total Debt (Non-GAAP)$1,235,909 $1,190,123