ENOV

As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the medical devices & supplies - specialty industry, including Enovis (NYSE:ENOV) and its peers. The medical devices industry operates a business model that balances steady demand with significant investments in innovation and regulatory compliance. The industry benefits from recurring revenue streams tied to consumables, maintenance services, and incremental upgrades to the latest technologies, although specialty devices are more niche. The capital-intensive nature of product development, coupled with lengthy regulatory pathways and the need for clinical validation, can weigh on profitability and timelines. In addition, there are constant pricing pressures from healthcare systems and insurers maximizing cost efficiency. Over the next several years, one tailwind is demographic–aging populations means rising chronic disease rates that drive greater demand for medical interventions and monitoring solutions. Advances in digital health, such as remote patient monitoring and smart devices, are also expected to unlock new demand by shortening upgrade cycles. On the other hand, the industry faces headwinds from pricing and reimbursement pressures as healthcare providers increasingly adopt value-based care models. Additionally, the integration of cybersecurity for connected devices adds further risk and complexity for device manufacturers. The 7 medical devices & supplies - specialty stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.1%. In light of this news, share prices of the companies have held steady as they are up 1.7% on average since the latest earnings results. With a focus on helping patients regain or maintain their natural motion, Enovis (NYSE:ENOV) develops and manufactures medical devices for orthopedic care, from injury prevention and pain management to joint replacement and rehabilitation. Enovis reported revenues of $582.8 million, up 3.2% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but a slight miss of analysts’ full-year EPS guidance estimates. “Our second-quarter results reflect a more focused organization and a portfolio that has been meaningfully reshaped over the past several years,” said Damien McDonald, Chief Executive Officer of Enovis. Enovis delivered the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The market seems disappointed with the results as the stock is down 34.1% since reporting and currently trades at $19.90. Read our full report on Enovis here, it’s free. Offering an alternative for the millions who struggle with traditional CPAP machines, Inspire Medical Systems (NYSE:INSP) develops and sells an implantable neurostimulation device that treats obstructive sleep apnea by stimulating nerves to keep airways open during sleep. Inspire Medical Systems reported revenues of $200.6 million, down 7.6% year on year, outperforming analysts’ expectations by 3%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates. Inspire Medical Systems scored the highest full-year guidance raise of the whole group. The market seems happy with the results as the stock is up 19% since reporting. It currently trades at $62.14. Is now the time to buy Inspire Medical Systems? Access our full analysis of the earnings results here, it’s free. With a nearly 170-year history dedicated to vision care and eye health innovation, Bausch + Lomb (NYSE:BLCO) develops and manufactures a comprehensive range of eye health products including contact lenses, pharmaceuticals, surgical devices, and consumer eye care solutions. Bausch + Lomb reported revenues of $1.39 billion, up 9.1% year on year, exceeding analysts’ expectations by 1.7%. It was a satisfactory quarter as it also posted full-year revenue guidance meeting analysts’ expectations but EPS in line with analysts’ estimates. Interestingly, the stock is up 9.2% since the results and currently trades at $18.15. Read our full analysis of Bausch + Lomb’s results here. With operations spanning 64 countries and a portfolio of over 10 new products launched in 2023 alone, Globus Medical (NYSE:GMED) develops and sells implantable devices, surgical instruments, and technology solutions for spine, orthopedic, and neurosurgical procedures. Globus Medical reported revenues of $789.6 million, up 5.9% year on year. This result topped analysts’ expectations by 0.9%. It was a very strong quarter as it also recorded a solid beat of analysts’ full-year EPS guidance estimates and a beat of analysts’ EPS estimates. The stock is down 1.6% since reporting and currently trades at $79.77. Read our full, actionable report on Globus Medical here, it’s free. With over 2.5 million implants performed worldwide, STAAR Surgical (NASDAQ:STAA) designs and manufactures implantable lenses that correct vision problems without removing the eye's natural lens. STAAR Surgical reported revenues of $93.54 million, up 111% year on year. This print beat analysts’ expectations by 3.3%. It was a very strong quarter as it also logged a beat of analysts’ EPS estimates. STAAR Surgical scored the biggest analyst estimate beat and fastest revenue growth in the group. The stock is down 7.2% since reporting and currently trades at $23.58. Read our full, actionable report on STAAR Surgical here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Interested in Enovis Corporation? Here are five stocks we like better. Second-quarter sales rose 3% to $583 million, with 5% organic growth led by 6% growth in Reconstruction, particularly U.S. hips and knees. Enovis reaffirmed its 2026 guidance and expects growth to accelerate in the fourth quarter as new products gain traction. Performance & Recovery grew 3% organically, while adjusted gross and EBITDA margins improved to 62% and 17.9%, respectively. However, Middle East disruptions, inflation and ongoing tariff costs are expected to create roughly a $10 million full-year headwind. Free cash flow improved to $31 million in the quarter, making first-half cash flow slightly positive, while leverage declined to 3.1 times. Enovis is targeting leverage below three times in 2026 and expects stronger contributions from ARVIS, Nebula, ARG and other product launches. Enovis (NYSE:ENOV) reported second-quarter 2026 sales of $583 million, up 3% on a reported basis and 5% organically, as growth in its Reconstruction business offset a slower but still expanding Performance & Recovery segment. Management said the company’s results reflected improved commercial execution, new-product adoption and operational productivity, while also noting pressure from Middle East-related disruptions and higher inflation. Chief Executive Officer Damien McDonald said the company delivered 6% organic growth in Reconstruction, or Recon, and 3% organic growth in Performance & Recovery, or P&R. Enovis reaffirmed its full-year 2026 guidance and said it expects sales growth to accelerate in the fourth quarter as product launches scale and market volumes improve. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth U.S. Recon grew 6% organically in the second quarter, with hips and knees increasing 8%. McDonald said growth was supported by commercial execution across hospitals and ambulatory surgery centers, or ASCs, as well as demand for the company’s Nebula, ARG and ARVIS offerings. Nebula remained a key growth contributor, with McDonald saying more than 80% of new instrumentation sets in the quarter went to users converting from competing products. International Recon sales also increased 6% organically, including double-digit shoulder growth, according to the company. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling ARVIS entered full commercial launch in the U.S. during the quarter. McDonald said early feedback from surgeons and commercial teams has been encouraging, citing the platform’s mobility, small footprint and versatility, particularly for shoulder procedures. The company plans to expand ARVIS in shoulders during the second half and begin its rollout in international markets. During the question-and-answer session, McDonald said U.S. extremities growth faced a difficult comparison with the prior-year ARG launch and an elevated number of medical-education events that temporarily took high-volume surgeons out of the field. Still, he pointed to 8% first-half growth in both hips and knees and extremities as a better reflection of the business’s overall momentum. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High P&R organic revenue increased 3% year over year. Global bracing grew 4%, including mid-single-digit growth in the U.S. driven by revenue-cycle management and spine bracing. Recovery Sciences and Bone Stim delivered mid- to high-single-digit growth, management said. McDonald also said the company was “meaningfully” gaining share in its regeneration business and that its foot-and-ankle operation grew above an estimated 4% to 6% market rate. New products are expected to contribute more meaningfully later in the year, including the planned launch of CT-RevitL for laser treatment in the companion market. Chief Financial Officer Ben Berry said the company’s international operations were affected by the conflict in the Middle East, creating a 100-basis-point headwind to international growth and about a 40-basis-point headwind to total company growth. Management also cited softer market conditions in Western Europe, particularly France, Spain and Italy. McDonald characterized those conditions as largely transient, pointing to disruptions including strikes, fires and heat waves that may delay rather than eliminate procedures. Enovis reported adjusted gross margin of 62%, representing a 120-basis-point underlying improvement. The result included an $8 million benefit from 2025 tariff refunds and operational productivity, partly offset by $4 million of ongoing tariff costs and $2 million of unplanned inflationary pressure tied to higher raw-material, freight and distribution costs associated with the Middle East conflict. Adjusted EBITDA margin was 17.9%, up 70 basis points on an underlying basis. Adjusted earnings per share were $0.90, which Berry said represented 14% underlying growth in the quarter. Interest expense declined to $8 million from $9 million a year earlier, while the effective tax rate was 24%. Berry said Enovis expects the $8 million tariff-refund benefit to be offset by approximately $10 million of full-year inflationary impact. The inflationary effects began to become more material near the end of the second quarter, he said, and are expected to weigh more heavily on the third quarter than the fourth quarter. The impact is concentrated primarily in P&R. Despite those pressures, management said it does not expect its longer-term margin and cash-flow framework to change. Berry cited product mix, continued integration benefits from the Lima acquisition, productivity efforts and lower-cost manufacturing expansion as contributors to a multiyear margin-expansion opportunity. Free cash flow was $31 million in the second quarter, improving $27 million from the prior-year period and bringing the company to slightly positive free cash flow for the first half. Enovis maintained its expectation for free-cash-flow conversion of more than 25% in 2026. Berry said P&R remains the company’s primary source of cash generation, though Recon cash flow is improving as integration work progresses and productivity initiatives take hold. Management said there were no significant one-time drivers behind the quarterly cash-flow result beyond the tariff refund and related offsets. McDonald said Enovis reduced leverage to 3.1 times and refinanced its balance sheet to improve terms and capacity. The company is targeting leverage below three times during 2026, after which management expects to have greater flexibility to consider capital-allocation options beyond debt reduction. Looking ahead, Enovis expects third-quarter seasonality to be more pronounced than in prior years because of Western European conditions and continued Middle East disruption. Management nevertheless expects improved contributions from ARVIS, Nebula, ARG and P&R product launches, followed by stronger sales acceleration in the fourth quarter. Enovis is a global medical technology company focused on advancing the field of musculoskeletal health. Formed through the separation of the MedTech business from Colfax Corporation in 2021, Enovis brings together a portfolio of specialized products and services designed to address conditions affecting the foot and ankle, hand and wrist, sports medicine, joint repair, biologics and rehabilitation. The company’s flagship offerings include minimally invasive implants and instrumentation for foot and ankle surgery under the Treace Medical Concepts brand, focal joint resurfacing implants through Arthrosurface, and synthetic bone graft substitutes marketed as NovaBone. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Enovis Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Enovis Corp (NYSE:ENOV) delivered 5% organic growth in Q2 2026, with US recon growing 6% and hips/knees up 8%. Strong innovation momentum: Nebula, ARG, and Avis are gaining traction, with Avis now in full commercial launch and over 80% of new instrumentation sets going to competitive users. Adjusted gross margins improved by 120 basis points underlying, driven by productivity and mix, despite tariff and inflationary headwinds. Free cash flow turned positive in the first half, improving by $27 million year-over-year, with leverage down to 3.1x. Management reaffirmed 2026 guidance and expressed confidence in accelerating growth in Q4, supported by new product launches and commercial execution. The company is seeing meaningful market share gains in PNR, particularly in bone healing and recovery sciences, with new products like Revital expected to contribute later in the year. Organic growth in PNR was only 3%, with international markets negatively impacted by the Middle East conflict, creating a 100 basis point headwind. The company faces $10 million of full-year inflationary pressure from raw materials and freight, partially offsetting tariff refund benefits. Q3 is expected to be seasonally softer than prior years due to market conditions in Western Europe and continued Middle East disruption. US extremities growth was softer in Q2 due to tough comps from the ARG launch and MedEd events taking surgeons out of the field. The company struggles to pass through price increases in PNR due to competitive dynamics, limiting margin protection. Management noted potential risks from Western European market softness (France, Spain, Italy) and the possibility of healthcare funding reallocation toward military spending. Warning! GuruFocus has detected 9 Warning Signs with ENOV. Is ENOV fairly valued? Test your thesis with our free DCF calculator. Q: Can you discuss the dynamics in US recon, particularly why extremities growth was softer than expected in Q2 despite strong market trends, and how you view the balance of the year? A: Damien McDonald (CEO): We're proud of the team's execution in both hips/knees and shoulders. For the first half, both hips/knees and extremities are up 8%. In Q2, we faced a tough comp from the ARG launch last year and had many MedEd events that took high-volume KOLs out of the field. The first half is the right way to look at it. In the back half, we have more work with ARG and the expanding Avis rollout, which drives our confidence. Q: Can you talk about gross margin progression, where it can go, and the levers you have against inflationary pressures? A: Ben Barry (CFO): We're proud of how the portfolio mix flows through the P&L, with the fastest-growing segments carrying higher standard margins. We're capitalizing on Lima integration synergies by consolidating production in lower-cost locations and driving continuous improvement in both segments. It's a multi-levered effort with organic tailwinds, but we must offset surprises like tariffs and inflation. We see a multi-year cadence of margin expansion, largely driven by gross margins. Q: What are the key drivers to get free cash flow conversion to 40-50% and then 70-80% as EU MDR and integration costs step down? A: Ben Barry (CFO): You're seeing adjusted costs step down as we're in year 3 of the Lima integration, and that will continue into next year and beyond. We're also seeing productivity in working capital, driven by new incentives around cash flow and the EGX toolkit. The first half was positive for free cash flow, and we generally have a stronger second half seasonally. Q: Can you unpack the softer market dynamics in Western Europe and which segments/geographies are most impacted? A: Damien McDonald (CEO): Apart from the Middle East, we saw softer markets in Western Europe, predominantly France, Spain, and Italy. There are a lot of environmental factors in those countries, leading to a slightly softer market. We're focused on commercial execution and account conversions to get ahead of any potential slowdown. Q: Your guidance implies an acceleration on a days-adjusted basis in the back half. What is driving this optimism, and how should we think about Q3 seasonality? A: Ben Barry (CFO): We're starting to see benefits from commercial execution and scaling new products. Avis demand is picking up, and we expect continued penetration of Nebula and ARG. On the P&R side, new products and commercial discipline are reading through. We do expect a more seasonally soft Q3 than in the past, which we'll offset with these initiatives. We have one selling day tailwind in Q4. Q: With the tariff refund benefit in 2026 being offset by higher inflation, does the margin algorithm change for 2027? A: Ben Barry (CFO): No, we don't expect the algorithm for 2027 to change. We will continue to mitigate inflation through productivity opportunities. As we step into next year, we also see continued step-down in adjusted costs, so our margins and cash algorithm for 2027 remain intact. Q: What are you seeing in the general ortho market, and is there any disruption from declining ACA and Medicaid enrollments? A: Damien McDonald (CEO): We're not seeing a change in underlying monthly volatility in the US. The first half was strong for both hips/knees and extremities. There's noise from physician payment proposals and CJRX, but on average, markets are stable. Kyle Rose (VP IR) added that US recon grew 6% in Q2 and 7% in the first half, which looks above the broader peer group. Q: Have competitor disruptions (e.g., force reorganizations or separations) opened a window for sustainable share gains? A: Damien McDonald (CEO): Being a nimble innovator with product introductions has made us a more attractive venue. We're stable and growing, and we use the term "talent magnet." We're creating a great environment for people to grow businesses, which has been reading through in our talent attraction over the last 6-12 months. Q: With Avis in full commercial launch, how are conversations evolving beyond KOLs, and what aspects resonate most? A: Damien McDonald (CEO): The feedback is very positive on the system's versatilityit's mobile, small, and handles complex shoulder anatomy well. The new gap-balancing technology in 2.0 is reading through well in both MedEd and clinical settings. The demand funnel is tremendous, and we'll roll it out more in shoulders and international markets in the back half. Q: Do you have enough rep headcount, and how should we think about incremental spend in 2027? A: Damien McDonald (CEO): We have plenty of opportunity to attract talent given our new product launches. Productivity per rep is improving with products like Avis, so we don't see a need for massive headcount hiring. Attracting talent is an opportunity for account conversion, but it's not the predicate of our model. Q: Is the $10 million inflation impact net of price increases, and how is it phased? A: Ben Barry (CFO): We started seeing it materialize in Q2, with a $2 million impact. The balance of $8 million will be in the second half, weighted more to Q3. It is a net number. We've struggled to pass through price increases given market and competitive dynamics, particularly in PNR. We're balancing this to avoid putting revenue at risk. Q: Are the softer European markets due to transient strikes or a slowing demand trend? A: Damien McDonald (CEO): It's more weighted to transient factors like strikes, fires, and heatwaves, which delay procedures rather than eliminate them. The watch-out is sentiment around the Middle East conflict and potential reorientation of funding toward military spend versus healthcare, but we haven't seen that read through yet. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Enovis (ENOV) came out with quarterly earnings of $0.9 per share, beating the Zacks Consensus Estimate of $0.83 per share. This compares to earnings of $0.79 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +8.43%. A quarter ago, it was expected that this manufacturing and engineering company would post earnings of $0.82 per share when it actually produced earnings of $0.89, delivering a surprise of +8.54%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Enovis, which belongs to the Zacks Medical Info Systems industry, posted revenues of $582.78 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.15%. This compares to year-ago revenues of $564.54 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Enovis shares have added about 13.3% since the beginning of the year versus the S&P 500's gain of 12.8%. While Enovis has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Enovis was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.85 on $562.21 million in revenues for the coming quarter and $3.65 on $2.35 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Info Systems is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Phreesia (PHR), is yet to report results for the quarter ended July 2026. This developer of health care software is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of +1000%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Phreesia's revenues are expected to be $129.63 million, up 10.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enovis Corporation (ENOV) : Free Stock Analysis Report Phreesia, Inc. (PHR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Second-quarter sales growth of 3% on a reported basis, 5% organic Second-quarter Reconstructive sales grew 8% on a reported basis, 6% organic Reaffirmed full-year 2026 guidance for revenue, adjusted EBITDA, adjusted EPS, and Free Cash Flow Conversion Dallas, TX, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Enovis™ Corporation (“Enovis” or “the Company”) (NYSE: ENOV), an innovation-driven medical technology growth company, today announced its financial results for the second quarter ended July 3, 2026. The Company will host an investor conference call and live webcast to discuss these results today at 8:30 am ET. Second Quarter 2026 Financial Results Enovis’ second-quarter net sales of $583 million grew 3% on a reported basis and 5% on an organic basis from the same quarter in 2025. Second quarter results reflect continued execution in P&R and Recon and encouraging momentum in new product introductions. Compared to the same quarter in 2025, net sales in Recon grew 8% on a reported basis and 6% on an organic basis, and P&R declined (1)% on a reported basis and grew 3% on an organic basis. Enovis also reported a second-quarter net loss of $1 million, or 0.2% of sales, and adjusted EBITDA of $104 million, or 17.9% of sales. The Company reported a second-quarter 2026 net loss of $0.02 per share and adjusted net earnings per diluted share of $0.90. “Our second-quarter results reflect a more focused organization and a portfolio that has been meaningfully reshaped over the past several years,” said Damien McDonald, Chief Executive Officer of Enovis. “Commercial execution is improving, our innovation pipeline continues to strengthen our competitive positioning, and our teams are demonstrating agility in navigating increasingly dynamic end markets. We are encouraged by this progress but acknowledge there is more work ahead to deliver consistent durable growth, particularly as we anticipate a more dynamic macroeconomic environment in the second half. We remain focused on winning each day through continuous improvement, and disciplined execution.” 2026 Financial Outlook Enovis reaffirmed financial expectations for 2026. Revenue is expected to be in a range of $2.31-2.37 billion, which incorporates 4-6% organic revenue growth. Adjusted EBITDA is expected to be in a range of $425-435 million. The guidance ranges for revenue and adjusted EBITDA are based on current exchange rates. Full-year adjusted earnings per share is expected to be in a range of $3.52 to $3.73. Full year free cash flow conversion is expected to be 25% or higher. Conference call and Webcast Investors can access the webcast via a link on the Enovis website, www.enovis.com. For those planning to participate on the call, please dial (800) 715-9871 (U.S. callers) and (646) 307-1963 (International callers) and use conference ID 6602355. A link to a replay of the call will also be available on the Enovis website later in the day. About Enovis Enovis™ (NYSE: ENOV) is a global medical technology innovator dedicated to improving lives by developing clinically differentiated solutions that enhance patient outcomes and restore motion for life. We partner with the brightest minds in health to advance care that is smarter, personalized, and more effective, while improving operational efficiency for surgeons and clinicians around the world. Enovis solutions impact the well-being of millions of patients wherever they are on their pathway to health. Discover more about Enovis at www.enovis.com. Availability of Information on the Enovis Website Investors and others should note that Enovis routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the Enovis Investor Relations website. While not all of the information that the Company posts to the Enovis Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in Enovis to review the information that it shares on ir.enovis.com. Forward-Looking Statements This press release includes forward-looking statements, including forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning Enovis’ plans, goals, objectives, outlook, expectations and intentions, and other statements that are not historical or current fact. Forward-looking statements are based on Enovis’ current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause Enovis’ results to differ materially from current expectations include, but are not limited to, risks related to Enovis’ integration of Lima; the impact of public health emergencies and global pandemics; disruptions in the global economy caused by escalating geopolitical tensions including in connection with the ongoing conflicts between Russia and Ukraine and in the Middle East; macroeconomic conditions, including the impact of inflationary pressures; changes in government trade policies, including the implementation of tariffs; the impact of a shutdown of the U.S. government or any future shutdowns; supply chain disruptions; increasing energy costs and availability concerns, particularly in the European market; other impacts on Enovis’ business and ability to execute business continuity plans; and the other factors detailed in Enovis’ reports filed with the U.S. Securities and Exchange Commission (the “SEC”), including its most recent Annual Report on Form 10-K under the caption “Risk Factors,” as well as the other risks discussed in Enovis’ filings with the SEC. In addition, these statements are based on assumptions that are subject to change. This press release speaks only as of the date hereof. Enovis disclaims any duty to update the information herein. Non-GAAP Financial Measures Enovis has provided in this press release financial information that has not been prepared in accordance with accounting principles generally accepted in the United States of America (“non-GAAP”). These non-GAAP financial measures may include one or more of the following: adjusted net income from continuing operations (“Adjusted net income”), Adjusted net income per diluted share, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted gross profit, and Adjusted gross profit margin. Adjusted net income and Adjusted net income per diluted share exclude net income attributable to noncontrolling interest from continuing operations, net of taxes; the effect of Loss from discontinued operations, net of taxes; restructuring charges; Medical Device Regulation (“MDR”) fees and other costs; strategic transaction costs; stock-based compensation; acquisition-related intangible asset amortization; strategic purchase of economic interest on future royalty payments; and property plant and equipment step-up depreciation; goodwill impairment charges; non-cash Other (income) expense, net; and include the tax effect of adjusted pre-tax income at applicable tax rates and other tax adjustments. Enovis also presents Adjusted net income margin, which is subject to the same adjustments as Adjusted net income. Adjusted EBITDA represents Adjusted net income excluding all Other (income) expense, net; interest, taxes, and depreciation and other amortization. Enovis presents Adjusted EBITDA margin, which is subject to the same adjustments as Adjusted EBITDA. Adjusted gross profit represents gross profit excluding depreciation step-up of acquired fixed assets and the impact of restructuring charges. Adjusted gross profit margin is subject to the same adjustments as Adjusted gross profit. Organic sales growth calculates sales growth period over period, after excluding the impact of acquisitions, divestitures, and foreign exchange rate fluctuations. Free cash flow represents cash flow from operating activities less purchases of property, plant and equipment net of proceeds from sale of certain properties. Free cash flow conversion represents free cash flow divided by adjusted net income. These non-GAAP financial measures assist Enovis management in comparing its operating performance over time because certain items may obscure underlying business trends and make comparisons of long-term performance difficult, as they are of a nature and/or size that occur with inconsistent frequency or relate to discrete restructuring plans that are fundamentally different from the ongoing productivity improvements of the Company. Enovis management also believes that presenting these measures allows investors to view its performance using the same measures that the Company uses in evaluating its financial and business performance and trends. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of non-GAAP financial measures presented above to GAAP results has been provided in the financial tables included in this press release. Enovis does not provide reconciliations of adjusted EBITDA or adjusted earnings per share on a forward-looking basis to the closest GAAP financial measures, as such information is not available without unreasonable efforts on a forward-looking basis due to uncertainties regarding, and the potential variability of, reconciling items excluded from these measures. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. Kyle RoseVice President, Investor RelationsEnovis [email protected] Enovis CorporationCondensed Consolidated Statements of OperationsDollars in thousands, except per share data(Unaudited) Enovis CorporationReconciliation of GAAP to Non-GAAP Financial MeasuresDollars in millions, except per share data(Unaudited) (1) Net income (loss) from continuing operations attributable to Enovis Corporation for the respective periods is calculated using Net income (loss) from continuing operations less net income attributable to noncontrolling interest from continuing operations - net of taxes.(2) Restructuring charges reflect costs associated with the Company’s restructuring programs to reduce the structural costs of the Company. For further information, see Note 10, “Accrued Liabilities - Accrued Restructuring Liability” included in our Form 10-Q. Includes expenses of $0.2 million and $0.3 million classified as Cost of sales on the Company’s Condensed Consolidated Statements of Operations for the three and six months ended July 4, 2025, respectively. There were no similar charges for the three and six months ended July 3, 2026.(3) MDR and other costs includes (i) $0.4 million and $1.2 million for the three and six months ended July 3, 2026 and $2.8 million and $5.4 million for the three and six months ended July 4, 2025, respectively, in non-recurring costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with the medical device reporting regulations and other requirements of the new medical device regulations in the European Union for devices which were introduced to the market prior to the regulation and (ii) $0.3 million and $0.7 million for the three and six months ended July 3, 2026 and $0.4 million and $1.1 million for the three and six months ended July 4, 2025, respectively, of expenses to resolve certain infrequent, non-recurring regulatory or other legal matters. These costs are classified as Selling, general and administrative expense on our Condensed Consolidated Statements of Operations.(4) Includes $0.7 million and $1.3 million in PPE step-up depreciation in connection with acquired businesses for the three and six months ended July 3, 2026 and $0.6 million and $1.1 million for the three and six months ended July 4, 2025, respectively. (5) Strategic transaction costs includes: (i) $4.7 million and $11.7 million for the three and six months ended July 3, 2026 and $7.8 million and $16.5 million for the three and six months ended July 4, 2025, respectively, related to non-recurring integration costs associated with the Lima Acquisition which includes (a) payroll and retention costs for roles eliminated in connection with the integration of our recent acquisition of Lima where a legal notice period was required prior to the employee’s separation from the Company, or integration-related daily activities not related to former roles performed by an employee during their legal notice period and prior to their separation from the Company. In each case, such costs relate solely to roles eliminated in connection with the integration of the Lima acquisition, and are non-recurring and not part of our normal business operations; (b) professional and consulting fees specifically incurred to consummate the acquisition and advise and facilitate on post-acquisition integration matters including legal entity consolidation, costs associated with rebranding and marketing acquired business under Enovis name, such as marketing materials, trade show redesign costs and product labeling; and (c) integration related costs associated with sales agent and distributor network rationalization, including contract termination and retention expenses, supply chain and portfolio integration, and quality management system consolidation, (ii) $(3.5) million and $0.3 million for the three and six months ended July 3, 2026 and $5.4 million and $8.2 million for the three and six months ended July 4, 2025, including a $5.7 million non-cash gain upon the reversal of a portion of a contingent consideration liability (See Note 11, “Financial Instruments and Fair Value Measurements” included in our Form 10-Q for additional information), partially offset by non-recurring (non-Lima) acquisition integration costs and other non-recurring project costs for global ERP rationalization and shared service center start-up, and (iii) $0.2 million and $0.4 million for the three and six months ended July 3, 2026 and $0.3 million and $0.8 million for the three and six months ended July 4, 2025, respectively, related to the Separation of our former fabrication technology business. These costs are classified as Selling, general and administrative expense on our Condensed Consolidated Statements of Operations.(6) Purchase of royalty interest represents the one-time, up-front expense incurred by the Company to acquire the economic rights to future royalties under product development agreements in connection with the termination of such agreements as part of a strategic shift to a new product development model. The Company believes that excluding the impact of such expense enhances comparability between periods, provides investors with a clear and meaningful view of our underlying business trends and aligns with how management evaluates the ongoing business performance.(7) Other (income) expense, net includes the fair value gain adjustment for non-designated cross currency swaps in 2026. Includes the final fair value loss adjustment for the Contingent Acquisition Shares issued in the first quarter of 2025.(8) The effective tax rates used to calculate adjusted net income and adjusted net income per share were 23.9% and 22.6% for the three and six months ended July 3, 2026 and 23.1% and 23.1% for the three and six months ended July 4, 2025. (9) In conjunction with our Form 10-Q filing for the three months ended April 3, 2026, we revised our definition of Adjusted Net Income and Adjusted Net Income Per Diluted Share to no longer adjust for inventory step-up charges. Adjusted Net Income in prior periods has been revised to reflect this change for consistency of presentation along with its impact on the effective tax rate which has been revised from 23.4%, as presented in our Form 8-K for the three and six months ended July 4, 2025, to 23.1%. Accordingly, Adjusted Net Income for the three and six months ended July 4, 2025 has been revised from $45.7 million and $91.9 million, or $0.79 and $1.60 per diluted share, respectively, as presented in our Form 8-K for the ended July 4, 2025, to $41.3 million and $78.6 million, or $0.90 and $1.79 per diluted share, respectively, reflecting the removal of a $6.0 million and $18.1 million adjustment for inventory step-up in connection with acquired businesses, resulting in a corresponding reduction to Adjusted net income margin from continuing operations for the three and six months ended July 4, 2025 from 8.1% and 8.2%, as presented in our Form 8-K for the period ended July 4, 2025, to 7.3% and 7.0%, respectively. Enovis CorporationReconciliation of GAAP to Non-GAAP Financial MeasuresDollars in millions(Unaudited) (1) Restructuring charges reflect costs associated with the Company’s restructuring programs to reduce the structural costs of the Company. For further information, see Note 10, “Accrued Liabilities - Accrued Restructuring Liability” included in our Form 10-Q. Includes expenses of $0.2 million and $0.3 million classified as Cost of sales on the Company’s Condensed Consolidated Statements of Operations for the three and six months ended July 4, 2025, respectively. There were no similar charges for the three and six months ended July 3, 2026.(2) MDR and other costs includes (i) $0.4 million and $1.2 million for the three and six months ended July 3, 2026 and $2.8 million and $5.4 million for the three and six months ended July 4, 2025, respectively, in non-recurring costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with the medical device reporting regulations and other requirements of the new medical device regulations in the European Union for devices which were introduced to the market prior to the regulation and (ii) $0.3 million and $0.7 million for the three and six months ended July 3, 2026 and $0.4 million and $1.1 million for the three and six months ended July 4, 2025, respectively, of expenses to resolve certain infrequent, non-recurring regulatory or other legal matters. These costs are classified as Selling, general and administrative expense on our Condensed Consolidated Statements of Operations.(3) Strategic transaction costs includes: (i) $4.7 million and $11.7 million for the three and six months ended July 3, 2026 and $7.8 million and $16.5 million for the three and six months ended July 4, 2025, respectively, related to non-recurring integration costs associated with the Lima Acquisition which includes (a) payroll and retention costs for roles eliminated in connection with the integration of our recent acquisition of Lima where a legal notice period was required prior to the employee’s separation from the Company, or integration-related daily activities not related to former roles performed by an employee during their legal notice period and prior to their separation from the Company. In each case, such costs relate solely to roles eliminated in connection with the integration of the Lima acquisition, and are non-recurring and not part of our normal business operations; (b) professional and consulting fees specifically incurred to consummate the acquisition and advise and facilitate on post-acquisition integration matters including legal entity consolidation, costs associated with rebranding and marketing acquired business under Enovis name, such as marketing materials, trade show redesign costs and product labeling; and (c) integration related costs associated with sales agent and distributor network rationalization, including contract termination and retention expenses, supply chain and portfolio integration, and quality management system consolidation, (ii) $(3.5) million and $0.3 million for the three and six months ended July 3, 2026 and $5.4 million and $8.2 million for the three and six months ended July 4, 2025, including a $5.7 million non-cash gain upon the reversal of a portion of a contingent consideration liability (See Note 11, “Financial Instruments and Fair Value Measurements” included in our Form 10-Q for additional information), partially offset by non-recurring (non-Lima) acquisition integration costs and other non-recurring project costs for global ERP rationalization and shared service center start-up, and (iii) $0.2 million and $0.4 million for the three and six months ended July 3, 2026 and $0.3 million and $0.8 million for the three and six months ended July 4, 2025, respectively, related to the Separation of our former fabrication technology business. These costs are classified as Selling, general and administrative expense on our Condensed Consolidated Statements of Operations.(4) Purchase of royalty interest represents the one-time, up-front expense incurred by the Company to acquire the economic rights to future royalties under product development agreements in connection with the termination of such agreements as part of a strategic shift to a new product development model. The Company believes that excluding the impact of such expense enhances comparability between periods, provides investors with a clear and meaningful view of our underlying business trends and aligns with how management evaluates the ongoing business performance. (5) In conjunction with our Form 10-Q filing for the three months ended April 3, 2026, we revised our definition of Adjusted EBITDA to no longer adjust for inventory step-up charges. Adjusted EBITDA in prior periods has been revised to reflect this change for consistency of presentation. Accordingly, Adjusted EBITDA for the three and six months ended July 4, 2025 has been revised from $97.2 million and $196.3 million, as presented in our Form 10-Q for the period ended July 4, 2025, to $91.2 million and $178.2 million, respectively, reflecting the removal of a $6.0 million and $18.1 million adjustment for inventory step-up in connection with acquired businesses resulting in a corresponding reduction to Adjusted EBITDA margin for the three and six months ended July 4, 2025 from 17.2% and 17.5%, as presented in our Form 10-Q for the period ended July 4, 2025, to 16.2% and 15.9%, respectively. Enovis CorporationReconciliation of Gross Margin (GAAP) to Adjusted Gross Margin (non-GAAP)Dollars in millions(Unaudited) (1) In conjunction with our Form 10-Q filing for the three months ended April 3, 2026, we revised our definition of Adjusted gross profit to no longer adjust for inventory step-up charges. Adjusted gross profit in prior periods has been revised to reflect this change for consistency of presentation. Accordingly, Adjusted gross profit for the three and six months ended July 4, 2025 has been revised from $341.5 million and $686.4 million, respectively, as presented in our Form 8-K for the period ended July 4, 2025, to $335.5 million and $668.3 million, respectively, reflecting the removal of a $6.0 million and $18.1 million, respectively, adjustment for inventory step-up in connection with acquired businesses, resulting in a corresponding reduction to Adjusted gross profit margin for the three and six months ended July  4, 2025 from 60.5% and 61.1%, respectively, as presented in our Form 8-K for the period ended July 4, 2025, to 59.4% and 59.5%, respectively. Enovis CorporationCondensed Consolidated Balance SheetsDollars in thousands, except share amounts(Unaudited) Enovis CorporationCondensed Consolidated Statements of Cash FlowsDollars in thousands(Unaudited) Enovis CorporationGAAP Net Sales and Growth Rate SummaryDollars in millions(Unaudited) (1) Constant currency growth rate represents sales growth excluding the impact of foreign exchange rate fluctuations based on prior year sales valued at the current period foreign currency rates.(2) Excludes the impact of foreign exchange rate fluctuations and acquisitions/divestitures, thus providing a measure of change due to factors such as price, product mix and volume. (1) Constant currency growth rate represents sales growth excluding the impact of foreign exchange rate fluctuations based on prior year sales valued at the current period foreign currency rates.(2) Excludes the impact of foreign exchange rate fluctuations and acquisitions/divestitures, thus providing a measure of change due to factors such as price, product mix and volume. Enovis CorporationChange in Net SalesDollars in millions(Unaudited) (1) Excludes the impact of foreign exchange rate fluctuations and acquisitions/divestitures, thus providing a measure of change due to factors such as price, product mix and volume.(2) Represents the incremental sales as a result of acquisitions of businesses for twelve months from the acquisition date. Excludes (i) acquisitions of former distribution partners as such transactions primarily represent a shift from a third-party distribution model to a direct sales model, and (ii) acquisitions of intellectual property as such transactions involve the purchase of technologies that have not been commercialized.(3) Represents the decrease in sales as a result of divestitures of businesses for twelve months from the divestiture date.(4) Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates. (1) Excludes the impact of foreign exchange rate fluctuations and acquisitions, thus providing a measure of change due to factors such as price, product mix and volume.(2) Represents the incremental sales as a result of acquisitions of businesses for twelve months from the acquisition date. Excludes (i) acquisitions of former distribution partners as such transactions primarily represent a shift from a third-party distribution model to a direct sales model, and (ii) acquisitions of intellectual property as such transactions involve the purchase of technologies that have not been commercialized.(3) Represents the decrease in sales as a result of divestitures of businesses for twelve months from the divestiture date.(4) Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates.

Interested in Enovis Corporation? Here are five stocks we like better. Enovis delivered a strong Q1 with $589 million in sales, 3% organic revenue growth, and 6% days-adjusted organic growth, led by its Recon segment and U.S. extremities and shoulder performance. Innovation remains a key growth driver, with early traction for ARVIS shoulder cases and continued rollout of Nebula, while management sees these products helping expand customer conversions and market reach through 2026. Guidance was reaffirmed despite tariff costs, Middle East exposure, and broader macro volatility, as Enovis cited healthy underlying procedure demand and expects free cash flow conversion above 25% this year. Enovis (NYSE:ENOV) reported a solid start to 2026, with management pointing to share gains in its reconstructive surgery business, stable growth in prevention and recovery, and continued investment in new products including ARVIS and Nebula. On the company’s first-quarter earnings call, Chief Executive Officer Damien McDonald said Enovis delivered 3% organic revenue growth in the quarter despite fewer selling days, which he said created an approximately 240-basis-point headwind. On a days-adjusted basis, organic growth was 6% at the company level. → Wells Fargo’s Comeback Is Real—But Not Risk-Free “We’re encouraged by our start to 2026, with the first quarter results reflecting solid execution and continued progress advancing our innovation-led strategy,” McDonald said. Enovis reported first-quarter sales of $589 million, up 5% from the prior year on a reported basis, according to Chief Financial Officer Ben Berry. Reported growth included a 420-basis-point tailwind from foreign currency, a 240-basis-point headwind from selling days and a 210-basis-point headwind primarily related to the divestiture of Dr. Comfort. → Rocket Lab Posts Record Q1 Revenue, Raises Q2 Guidance The company’s Recon segment posted 6% organic growth, or 8% on a days-adjusted basis. McDonald said U.S. Recon grew 8% organically in the quarter, led by 10% organic growth in extremities. Shoulders delivered double-digit growth, helped by continued traction for the company’s Augmented Reverse Glenoid System, or ARG. In hips and knees, Enovis grew 6% organically in the U.S. McDonald said Nebula remains a growth driver, with most new instrumentation sets going to competitive users. He described Nebula as still in the early stages of rollout and said it opens a meaningful segment of the U.S. hip market to Enovis sales teams. → The Great Crypto Thaw: Regulation Ignites an Infrastructure Boom International Recon grew 3% organically, including double-digit growth in extremities. McDonald said the company is strengthening its global portfolio through cross-compatibility of implant systems and remains positioned for “sustained above-market growth rates in 2026 and beyond.” Management emphasized Enovis’ innovation pipeline, including ARVIS, which the company showcased at the AAOS conference in New Orleans in March. McDonald said Enovis has begun deploying ARVIS through a flexible business model aimed primarily at driving implant utilization. “ARVIS shoulder cases have started and are encouraged by the early feedback,” McDonald said. He added that commercial teams are using the launch to target new customers and that the company expects continued adoption in shoulders throughout 2026. Enovis also completed its first out-of-U.S. shoulder case using the technology in South Africa. During the question-and-answer session, McDonald said the initial focus for ARVIS is shoulder and then knee. He said the technology gives Enovis an opportunity to speak with competitive surgeons and pursue conversions, while offering purchase, lease and fee-per-case models with volume commitments. Berry cautioned that Enovis did not see material revenue from ARVIS in the first quarter, but said management expects momentum to build as the launch progresses. The Prevention & Recovery segment grew 1% organically, or 3% on a days-adjusted basis. McDonald said global bracing grew 3% on a days-adjusted basis, driven by revenue cycle management and upper extremity bracing. Bone stimulation was also a source of strength, delivering high-single-digit growth. McDonald said he was encouraged by execution in the P&R business, noting that the company has reshaped the portfolio and has been growing above market in both the U.S. and internationally. He pointed to opportunities in cold therapy, the NOPAIN Act and osteoarthritis-related offerings as potential growth drivers. “The opportunity, I think, is really for us to take,” McDonald said, adding that the company is working account by account to educate customers around cold therapy and related opportunities. Berry said adjusted gross margin was 62% in the first quarter, reflecting 40 basis points of underlying improvement from favorable mix, productivity and realized synergies in manufacturing and supply chain operations. He said the improvement was partially diluted by tariff impacts, as Enovis paid roughly $4 million in tariffs during the quarter. Adjusted EBITDA margin was 17.6%, down 10 basis points year over year on an underlying basis, which Berry attributed mostly to increased research and development investment and the timing of expenses. Adjusted earnings per share were $0.89, representing 10% underlying growth from the prior year. The first-quarter effective tax rate was 21%, while interest expense was $9 million, flat from the prior year. Berry also said Enovis revised its definition of adjusted EBITDA beginning in the first quarter of 2026 to no longer adjust for inventory step-up charges associated with acquired businesses. He said the change followed the conclusion of a previously disclosed SEC comment letter process, even though the company continued to believe its prior presentation provided meaningful comparability. Free cash flow improved by $16 million from the prior year. Berry said Enovis still expects free cash flow conversion of more than 25% in 2026. He noted that free cash flow typically builds over the course of the year because the first quarter includes bonus payments and expenses tied to sales meetings and AAOS. Enovis reaffirmed its 2026 guidance. Berry said the company expects revenue to be split evenly between the first and second halves of the year and said commercial execution remains critical to delivering the full-year outlook. Management cited several moving pieces, including international market volatility, Middle East exposure and tariffs. Berry said Middle East revenue exposure is about $1 million to $2 million per month and that Enovis expects to absorb that headwind and related supply-chain inflation without changing its original guidance. In response to analyst questions about why the company did not raise guidance after a strong Recon quarter, McDonald pointed to the broader macro environment. “It’s a very dynamic macro environment,” McDonald said. “We just want to make sure we keep the team focused on executing what we committed to for the full year.” Management said underlying procedure demand remains stable and healthy. Kyle Rose, vice president of investor relations, said Enovis sees U.S. hips growing in the 3% to 4% range, U.S. knees in the 4% to 5% range, shoulders in the 5% to 7% range, and international Recon markets growing 4% to 6% over the last several years. McDonald closed the call by emphasizing disciplined execution amid macroeconomic and geopolitical uncertainty, saying the company must continue focusing on daily improvement and long-term opportunities. Enovis is a global medical technology company focused on advancing the field of musculoskeletal health. Formed through the separation of the MedTech business from Colfax Corporation in 2021, Enovis brings together a portfolio of specialized products and services designed to address conditions affecting the foot and ankle, hand and wrist, sports medicine, joint repair, biologics and rehabilitation. The company’s flagship offerings include minimally invasive implants and instrumentation for foot and ankle surgery under the Treace Medical Concepts brand, focal joint resurfacing implants through Arthrosurface, and synthetic bone graft substitutes marketed as NovaBone. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Enovis Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Image source: The Motley Fool. Thursday, May 7, 2026 at 8:30 a.m. ET Chief Executive Officer — Damien McDonald Chief Financial Officer — Phillip Berry Investor Relations — Kyle Rose Damien McDonald: Thanks, Kyle. Hello, Everyone. We're encouraged by our start to 2026 with the first quarter results reflecting solid execution and continued progress advancing our innovation-led strategy. Our priorities, commercial execution and innovation, operational excellence, and financial discipline continue to guide our actions. Since I joined 12 months ago, we have made meaningful changes to our operating model and senior leadership teams, implemented more rigor around daily management and changed company incentive plans to align with our strategic objectives. We still have more work to do to fully capture the opportunities in front of us. However, I'm energized by how the team has embraced these changes and the One Enovis mindset. Turning to the first quarter results. I'm pleased with our continued share gains in both our business segments. Our innovation pipeline continues to advance while we benefit from the contributions of new product launches. In the first quarter, we delivered organic revenue growth of 3% with 6% organic growth in Recon and 1% organic growth in Prevention & Recovery. These results include the impact of fewer selling days in the quarter, which represented an approximate 240 basis point headwind to growth. On a days adjusted basis, organic growth was 6% at the company level with 8% growth in Recon and 3% growth in P&R. In U.S. Recon, we grew 8% organically in the first quarter, led by 10% organic growth in extremities. Our augmented reverse glenoid system, ARG, continued to gain traction and was key to driving double-digit growth in shoulders. In Hips and Knees, we grew 6% organically, and we continue to reinforce our portfolio to compete across hospital and ASC settings. Nebula continues to be a driver of growth in the majority of new instrumentation sets going to competitive users. We're still in the early rollout of Nebula, which unlocks a meaningful segment of the U.S. hip market for our sales teams. Internationally, we grew 3% in Recon on an organic basis, including double-digit growth in Extremities. We continue to strengthen our global portfolio with cross-compatibility of implant systems and are positioned for sustained above-market growth rates in 2026 and beyond. Innovation remains key to our strategy. We have a robust pipeline of new product introductions planned for the next 24 months. We showcased many of these, including Arvis at the AAOS conference in New Orleans in March. We've started to deploy Arvis through a flexible business model with the primary goal of driving implant utilization. Arvis shoulder cases have started and are encouraged by the early feedback. Our commercial teams are using this launch as an opportunity to strategically target new customers, and we expect to see continued adoption in the shoulders as we move through 2026. I'm also excited to note, we recently had our first OUS shoulder case in South Africa and remain -- and we see demand for this technology continue to build. Now moving to P&R. This segment grew 1% year-over-year on an organic basis and 3% on a days adjusted basis. Global bracing grew 3% on a days adjusted basis, driven by revenue cycle management and upper extremity bracing. Bone stim was another source of strength for the quarter, delivering high single-digit growth. So a lot to be excited about across the whole business, and I'll turn it over to Ben to walk through the financial details. Phillip Berry: Thanks, Damien, hello, everyone. We reported first quarter sales of $589 million, up 5% versus the prior year on a reported basis. Reported growth includes a 420 basis point tailwind from foreign currency, a 240 basis point headwind from selling days and a 210 basis point headwind, primarily related to the divestiture of Dr. Comfort. Days adjusted organic growth was 6% at the company level, 8% Recon, 3% in P&R, with both segments growing above the market. As part of the conclusion of our previously disclosed SEC comment letter process, we revised our definition of adjusted EBITDA beginning in Q1 2026 to no longer adjust inventory step-up charges associated with acquired businesses. While we continue to believe that our prior non-GAAP presentation was appropriate under the guidelines and provided meaningful comparability for investors, we updated our presentation to align with the SEC staff position on this adjustment. For reference, we have provided a table in the appendix of our Q1 slide presentation that outlines the impact of this change. We had positive business mix in the first quarter, leading to adjusted gross margins of 62%, an underlying improvement of 40 basis points, driven by favorable mix, ongoing productivity, and realized synergies in our manufacturing and supply chain operations. This was slightly diluted by tariff impacts as we absorbed, mitigated, and continued to offset a portion of the roughly $4 million in tariffs we paid in the quarter. Adjusted EBITDA margin was 17.6%, down 10 basis points year-over-year on an underlying basis, mostly driven by increased R&D investments and phasing of expenses. Our first quarter effective tax rate was 21%. Interest expense was $9 million for the quarter, flat versus prior year. Overall, we posted adjusted earnings per share of $0.89, representing 10% underlying growth versus prior year. We remain focused on disciplined capital allocation. Free cash flow improved $16 million year-over-year in the first quarter. We continue to expect free cash flow conversion of greater than 25% in 2026 as we've laid out in our prior calls. Turning to guidance. We are reaffirming our 2026 guidance. We expect 2026 revenues to be split evenly between the first and second half of the year. Commercial execution is critical to delivering our 2026 results, and we are seeing some early benefits across both of our business segments. In Recon, our new products remain a bright spot, and we have a healthy pipeline of account conversion targets. In P&R, growth remained stable and slightly ahead of market. For the company, international market volumes have experienced some volatility in the first part of the year, but we expect them to recover to normal levels in the balance of the year. Our Middle East revenue exposure is about $1 million to $2 million a month. We expect to absorb this new headwind as well as the resulting inflation in the supply chain with no change to our original guidance. To summarize, the first quarter was a solid start to the year, and we remain confident in the power of our diversified portfolio and the continued progress we're making towards sustainable, profitable, capital-efficient growth. Kyle? Kyle Rose: Thanks, Ben. In an effort to accommodate everyone in the Q&A session and keep things to a reasonable time, we ask our analysts to limit questions to one question and one follow-up. You are welcome to rejoin the queue and we will fit you in if we have time. With that, operator, we'd now like to open it up to questions. Operator: [Operator Instructions] We will now take our first question from Ryan Zimmerman of BTIG. Ryan Zimmerman: Good start to the year here. U.S. Recon was really a nice standout in the quarter, particularly when you look at it in the context of some of the larger companies that reported their Hip and Knee numbers. And so, Damien, I'm wondering if you could kind of talk to us about how you see the durability of U.S. Recon. If I look at the comps, they get actually easier over the balance of the year. And so, what's holding you back from maybe taking that guidance up at this point given those dynamics? And then I have a follow-up. Damien McDonald: First of all, good morning Ryan, I'll jump in first, and I'll let the guys also contribute. Look, great question. And I have to say, first of all, I'm really proud of how the team are executing. There's a lot of good that's happening in that organization. The way they're approaching customer segmenting and targeting, account acquisition and penetration. I think the way they're thinking about pricing discipline is really working for them. So I think that team is doing a great job, and you see that in both Hips and Knees and the Extremities numbers. Why not take up guidance? I think our big issue is it's a very dynamic macro environment. We're working to execute our plans. But as you might suspect, there's a lot of noise in the markets, and we just want to make sure we keep the team focused on executing what we committed to for the full year. Ryan Zimmerman: And then as a follow-up, Ben, you did call out the improvement in free cash flow. I think that's been one of the things maybe holding investors back is that enhancement of free cash flow for the year. And so again, I appreciate your sticking to the guidance here. But talk to us about kind of the next few quarters in terms of free cash flow generation. How you see things kind of playing out? What's on the horizon from a capital expenditure standpoint or lack thereof? And what gives you confidence that you can continue to kind of target 25% plus for the year? Phillip Berry: Yes. Thanks, Ryan. Thanks for the question. Free cash flow for us builds over the course of the year. I think you've seen that pattern from us where we traditionally have negative free cash flow in Q1, given that's when we pay out bonuses. That's also when we have some phasing of expenses like sales meetings and the AAOS that always fall in Q1. So generally, we start off a little bit soft in cash and then we build over the course of the year. We would expect that to continue here in 2026. I think you saw in first quarter, some of the step down in some of the onetime costs that we've called out that will continue to decline over the course of this year, over the course of the years and coming. And overall, I think we are -- from a CapEx investment, actually, continuing to invest heavily in CapEx to support the growth of the Recon business. So CapEx as a percentage of sales, as I've told people in the past, this year will be about in line with what we saw last year, maybe a little bit below. But overall, we feel good about where we're starting here, year-over-year improvement of $16 million and still feel confident in the guidance that we set out at the beginning of the year. Operator: Next question comes from the line of Vijay Kumar from Evercore ISI. Vijay Kumar: I just want to dive a little bit on the Q1 performance. I know there was some noise around weather. One of your competitors had some disruptions. Q1 also had fewer days, right? Despite all of that, U.S. Recon did 9%, high singles organic. How -- when you -- put that 9% into context for us, right? When you look at the back half, is this sustainable? And what could get better in the back half, right, when you look at first half versus back half? Damien McDonald: I think what we're excited about is the release of Arvis. We just released that at AAOS. And I think the demand that we're seeing for that is really terrific. And I think people are looking for a portable, scalable, cost-effective solution, especially as things move to the ASCs in the U.S. And so, I think for us, what gives us a lot of confidence about the year is as Arvis continues to roll out and we onboard and certify surgeons, that gives us support in the Extremities market, particularly around shoulder. I think the way that the Foot and Ankle business performed in the quarter was really solid, too, a big shout out to them for the way they performed. And I think -- so Extremities for us continues to be an opportunity that is growing and being a highlight for us for quite some quarters now. The other thing is, I think Nebula is really continuing to do great things in the hip area. I mean that's a market that we were locked out of. And I think someone reported the other day that something like 40% of their business now is in triple taper, colored stem hips, and we're not anywhere near that sort of penetration yet. And as I mentioned before, something like 50% of our knee surgeons don't use our hip because we haven't had an offering. So we've got a funnel of opportunity to convert those people over to our hip in a market that's been largely dominated by J&J and Zimmer. Phillip Berry: Yes. And I'd just jump in, hello, Vijay, the markets are dynamic. The supply chain is dynamic right now. We have momentum building across the anatomies with the launches that we have, with the cross-compatibility that we've done now on the shoulder with putting all of these assets together with the M&A that we've done over the last several years. So we're encouraged by the start. We see opportunity, as Damien mentioned, through commercial execution, they continue to build muscle here. It's going to take a little bit of time, but we're excited marrying the innovation pipeline that we have with the opportunities that are in front of us with regards to still having low market share. So overall, we're confident in the direction that this business is heading and look forward to see how it continues to perform throughout the course of the year. Vijay Kumar: And maybe, Ben, one for you on the margin performance in the quarter. I know you spoke about the reclassification on EBITDA. Just to clarify, that doesn't have any free cash flow impact, right? No changes to free cash and how we think of margin cadence given the Q1 performance? Phillip Berry: Yes. Thanks, Vijay. There's a good slide in the appendix of the presentation materials that we put that lay out the inventory step-up that would have occurred in the prior year. Again, this is acquisition related as we brought Lima on, it's the difference between the acquired inventory and the fair market value assessment. So it's really just accounting change that's onetime in nature. So we feel it's appropriate to look at it both ways, and you have all the information there. But underlying performance, as I said in my prepared remarks, of 40 bps of gross margin improvement and slightly backwards on EBITDA, but that was partially because we had a really strong start last year with the extra days. Vijay Kumar: And sorry, margin cadence, how to think of margin cadence for back half? Phillip Berry: Yes. Margin cadence for the back half, I think, will continue to improve. Operator: The next question comes from Jeff Johnson from Baird. Jeffrey Johnson: Just wanted to stick on the Arvis questions. Damien, it sounds like placements here in the first quarter got off to a good start. I guess as you're thinking more about that placement model, should we think about that being a long-term benefit maybe to pricing in your Recon business, you can lock these guys in at more consistent pricing. Does it maybe bring some more stability to your Hip and Knees business and maybe the Extremities business? Again, if you can lock these guys in, you don't have to worry about any kind of customer attrition or anything like that. Just what are the benefits besides just having a good technology out there that is appealing to these surgeons? What are some other benefits we should be thinking about with Arvis over the next year or 2? Damien McDonald: Yes. Thanks, Jeff. So our focus out of the gate is on shoulder and then knee. I think if you think about what this offers competitively is a chance to have conversations with competitive surgeons and bring them over to our portfolio. So there's a competitive conversion opportunities and market share gain and, obviously, volume attached with that. And I think, again, what we're offering is a very flexible model. You can -- capital purchase, you can lease, you can fee per case with a volume commitment. So we also believe that we're offering a scalable, portable model that allows people to work between multiple venues. And as you know, a lot of our customers work in multiple venues and can take this technology with them. So we think that ease of use, portability, scalability is an opportunity for us to lock in people that are current customers, but also importantly, competitive conversions. Phillip Berry: Yes. And Jeff, I'd just jump in there. I mean we didn't really see, I'd say, any material revenue from Arvis in the first quarter. So we would expect this to continue to build as we gain momentum with the launch. Jeffrey Johnson: And then, Ben, maybe just one clarifying question because I am getting a couple of questions from investors. I just want to make sure I understand. On the reclass that you talked about today on the EBITDA side, was that driven by a change in your own philosophy? It sounds like you mentioned on the prepared remarks that maybe it was in conjunction with the SEC. Is that a new recommendation from the SEC more broadly for the market? Just want to understand, just given that this kind of makes last year's margins or the margin performance this year look better. Just want to understand the timing on what drove this decision. Phillip Berry: Yes, Jeff, I mean, as we had put in our 10-K last year, we had a couple of open questions from the SEC through the comment letter process. So we had some good robust dialogues with the staff. So like we had good alignment on most things. This one for us, we still feel that the onetime nature of inventory step-up, especially when you acquire a Recon business that has lots of inventory really does distort the numbers. So we felt it was responsible for us to show comparability. SEC staff had a difference of opinion here, and we had to conform -- we chose to conform to their dialogue here. So we would expect that to continue across the market based on our dialogue with them, but I can't speak for other companies in their dialogues. Operator: The next question comes from the line of Xuyang Li from Jefferies. Young Li: I guess to start, maybe just on OUS Recon a little bit. It doesn't get as much attention, but I would say pretty solid strength of double-digit growth recently. And then this quarter, there's some Middle East noise, maybe some OUS market softness. Can you maybe just expand a little bit on the market softness comment and the pathway forward for sustained above-market growth for the rest of the year? Damien McDonald: Yes. So we were just with that team last week and talking through a lot of the dynamics there. Look, it was definitely a slower start to the year compared with our Q4 momentum. And that's a challenge. But I would say, and you alluded to this, there's a lot of market volatility. There's doctor strikes, nurses strikes, pharmacy strikes, waiting list increases. And still with all of that, we outgrew the market. And that's with third-party market data. And I'd say the team executed really well in a very dynamic market situation. So we still believe, based on our modeling that we're going to outgrow the market through the next 3 quarters for the full year. But we do recognize it's pretty challenging, and Ben outlined what we think the impact of the Middle East is on our quarterly run rate. Young Li: And I guess I was wondering if you can maybe give us an update on your ASC market share currently, where you are versus the industry? It seems like momentum there continues for the industry? Phillip Berry: Yes, I'll take that one, Xuyang. We continue to see our penetration in ASCs increase. So I think if you look at where we are at on the knee side, primary knees over 25% now in the ASC, shoulders continue to climb now closer to the teens. And I'd say in between the 2 is where we're at in hip. So again, I don't know what's being published out there with competition. I don't see good data on this, but we believe that we're slightly ahead of the market in terms of the mix of ASC of our business versus where some of the competitors are. Operator: The next question comes from the line of Robbie Marcus from JP Morgan. Robert Marcus: Maybe to start, you do your best to answer given the market share. But given all the disruption in the first quarter and a lot of investor fears around weather and ACA subsidies and Medicaid. How do you feel about your end market growth? And I don't know if you're willing to put what you think growth rates are on the different ortho and bracing markets where you participate now? And how do you feel about some of these headwinds that investors are concerned about? And are you see them materializing? Because I'd venture to say the answer is no, not really. But I would love to hear your take on end market growth and some of the headwinds. And I'll leave it at that. Kyle Rose: Hello, Robbie, this is Kyle. Yes, I mean, I think the way we've seen the year start, I mean, look, there's obviously some weather. There's been disruptions with things like cyberattacks on some competitors. We've got salesforce restructuring with another competitor. I think overall, we think underlying market demand and procedure volumes are stable and healthy as we've seen over the last several years. We don't think that there's as much of a pent-up demand with respect to what we saw coming out of COVID. I think that's broadly been worked through. But when we think about the overall market growth, and this is more of a U.S. comment, we think about U.S. hips in the 3% to 4% range, U.S. knees in the 4% to 5%. We think about shoulders, 5% to 7%. But when you think about the shoulder market, we've got more exposure to the reverse side of that market, which we think is growing at the higher end of that prior range. And in the international markets as a whole, we think that, that's from a recon perspective, growing in the 4% to 6% in the last several years. As Damien outlined, a little bit slower start to the international market to start the year. But there's nothing that we're seeing in our end markets that suggests that we've seen any material changes in the fundamentals from a demand perspective. Phillip Berry: Yes. And I'd just jump in there, too, a little bit, Robbie. I mean I think procedural demand trends are still very robust. So we believe the need to have products like ours for the macro needs of patients are going to continue to drive growth in the market from now into the future. So we feel pretty good about that. I mean, of course, we went through all of the similar things with some of the weather and some of the other things that Kyle talked about. But overall, I think we think the end markets are still robust from a demand standpoint. Pricing for us is a little bit back to norm on the Recon side, so a little bit down. We think that continues. We also think the shift to ASCs puts a little bit of pressure there on pricing. But overall, we think in terms of demand drivers, those are still pretty robust. Operator: Our next question comes from the line of Priya Sachdeva from UBS. Priya Sachdeva: I'd love to just go back to guidance really quickly and specifically thinking about some of the macro dynamics that are going on, and how you're thinking about low end versus high end of guidance, and what you're baking in for either side of the range? I guess maybe we're just trying to understand how derisked 2026 guide is from some of these dynamics. And then just one follow-up. Phillip Berry: Hello, Priya, thanks for the question. I think the way we think about guidance is generally point people towards the midpoint. So good start to the year for us. Again, Damien laid it out, there's still a lot of uncertainty. So we're trying to be prudent with regards to seeing how more of the year plays out before we make any changes there. So overall, I think we feel like we got off to a good start. We do think Q2 will have some impacts on it from the war-related impacts. But overall, we still feel comfortable that we can perform within the ranges that we set at the beginning of the year. Priya Sachdeva: And then maybe just one quickly on P&R. You did call out some of these tailwinds that are on the horizon for this segment. So if you could just maybe walk us through some of these potential drivers of growth and where you could really see this business is growing sustainably once those are fully realized. Phillip Berry: Yes. I really like how the teams are starting to execute here. And we've reshaped the portfolio. I think they've got a great competitive offering. We've been taking market share and growing above market for multiple quarters, both in the U.S. and internationally. I like the Swagger of the BaaS team in the U.S. I think they're doing a great job there, selling our differentiated portfolio. We've got new products coming in that segment as well. So the opportunity, I think, is really for us to take. These tailwinds that we alluded to with cold therapy and the NOPAIN Act. That's an education opportunity for us, and the team is taking advantage of that account-by-account. The OA opportunity, I think, is another thing for us. We know OA is an increasingly complex disease state with a lot of pain associated with it, where we think we've got good competitive offerings to support it. So I like how that team is executing in the U.S. And internationally, there's a lot going on. The French team, I think, are really killing it, which is tremendous to see. And we've still got opportunities to improve our performance in several geographies and the leadership over there is very focused on that. Operator: Our next questions come from the line of Keith Hinton from Freedom Capital Markets. Keith Hinton: I just have a question on P&R on the gross margin side. So it looks like it was up about 100 bps year-over-year. Can you just talk about sort of the tariff impact for P&R in the quarter? How much of that you were able to offset with price or other mitigation efforts? And kind of how we should think about going forward, the ability to expand gross margins in P&R in a more stable tariff environment or how much the exposure is to continued volatility in tariffs? And then I have a follow-up. Phillip Berry: Yes. Thanks. We're excited about the progress that we continue to make in P&R. I think what we've talked about in terms of now having over 50% of the portfolio growing mid-single digits. A lot of those products that are growing faster come with higher gross margins. So we're getting some mix benefit on the P&R side. We also have been longer at driving the business system within P&R to really start to see the fruits of that read out with regards to some productivity that are offsetting some of these tariff headwinds that I mentioned. I mentioned in my prepared remarks that we paid another $4 million of tariffs in the quarter. That is mostly all in the P&R side of the business. So we're overcoming that, and we see a long runway here of gross margin improvement opportunities within P&R as we continue to shape that portfolio. So we're going to continue to work at it. We're continuing to mitigate as much as we can some of these inflation headwinds that are coming our way. We have increased prices in some cases to drive offsets. We continue to drive the shifting of production to lower cost areas to offset some of the price changes as well from the supplier side. So overall, we have a pretty robust offense to drive productivity to offset inflation that we see every year. Keith Hinton: And then just in terms of the conflict in the Middle East, can you talk about that less from a revenue perspective and more from a cost perspective in terms of volatility in the price of oil, just how much of COGS is oil exposed either from freight or petroleum derivatives involved in packaging? And have you seen any issues with traveling based on disruptions to flights and just how any of these things are sort of baked into guidance? Phillip Berry: Yes. We're seeing a little bit of that in all aspects of what you described. I think the most impact we see in our direct results is with the freight inflation. Overall, we feel pretty well that our supply chain as a company is diverse and somewhat protected to where we can drive alternative measures to offset some of these challenges, but there is some inflation that's hitting us that we're having to offset. But all -- as I mentioned in my prepared remarks, we believe that we'll be able to offset or absorb within the guidance that we've provided. Keith Hinton: And just very quickly, clarifying. In terms of the inventory turn for the different businesses, when might we start to see more of an impact from a quarterly basis on P&R versus Recon in terms of higher freight? Phillip Berry: Well, on the P&R side of the business, we turn inventories in, call it, 4 to 6 months. So that generally reads through relatively quickly. P&R side -- or on the Recon side, it's longer. It's a little over a year. But overall, a lot of our freight runs through the period costs as well. So I'd say it's a little bit of a blend of what gets amortized versus what rolls through on a period standpoint. Operator: The next question comes from the line of Caitlin Roberts from Canaccord Genuity. Unknown Analyst: It's [ Michaela ] on for Caitlin. Maybe just going back to Arvis, you talked a little bit about this, but can you maybe give some more color on what the surgeon and hospital reception has been like? And maybe if you can talk to shoulder specifically? Damien McDonald: Yes. I think this has been one of the really encouraging things for us. The early limited market release where we were working with in friends and family was very positive. The case numbers were filled very rapidly in multiple centers. I had a chance to see some of our partners working on it at the Mayo Clinic right at the end of the year. So just the form factor is considerably different with the Gen2, which I think makes a big difference. The software improvements have been really tremendous in terms of anatomy registration and the acuity of the visualization. So we're very encouraged by what we're hearing from the initial limited market release and now the demand for application in the field. So I think this is exciting for us. Operator: The next question comes from the line of Mike Matson from Needham & Co. Michael Matson: I have a follow-up question on cash flow -- free cash flow. So it looks like your operating cash flow improved significantly year-over-year, which is great. But when I look at the CapEx or purchase of property, plant, equipment and intangibles, that was about $10 million larger than last year. So negative $53 million. So can you maybe just talk about what's in that number? I mean, how much of that is kind of like instrument sets and things like that versus integration expenses or other components? Phillip Berry: Mike, thanks for the question. It's mostly instrumentation. As you know, we're investing to grow the Recon business and a little over half or about half of our CapEx is instrumentation driven. And I'd say this year is a little bit more front half loaded there. So I'd say that's the major drivers that we're just investing for growth. We do have, as I've laid out in the past, some investment that's happening with regards to manufacturing integration. So those costs are reading through as well, which are driving some of the increase. But overall, I'd say it's Recon driven, primarily instrumentation with a little bit of ops for manufacturing integration. Michael Matson: And then just want to ask one on the foot and ankle part of your Extremities business. I didn't hear any comments there, but I know that market has been kind of challenged. So maybe just comment on your business and what you're seeing in the market. Damien McDonald: Yes. I gave a bit of a shout out in one of my earlier answers on this. I think the -- we saw a slight rebound in the market in the U.S. We've talked about the challenges in that space and so are some of the competitors, particularly in the elective procedures. I think, again, what matters here is a focus on innovation and a focus on being very responsive to customers, and that's reading through. And I think that's why the team had a really solid quarter. Operator: [Operator Instructions] Our next question comes from the line of Steve Lichtman from William Blair. Steven Lichtman: I guess first, just going back to the ASC opportunity. In what ways are you able to leverage the Arvis relaunch and, of course, the product offerings you can provide across both Recon and P&R to continue to expand in what's obviously an important growing market. Damien McDonald: Yes. I think one of the things for us, Steven, good morning, is the opportunity there at the continuum of care. Often, patients aren't seen as a whole patient. They're seen as episodic in one particular implant or [ BES ] or recovery sciences portfolio. I think one of our key opportunities is to expand that aperture so that people do think about the whole patient. And that's certainly a conversation we're having. I think Arvis is a great accelerator for that. It makes us very visible. It gives us every reason to be a partner with the ASCs, whether it's a corporate ASC or an owner-operated ASC. And one of our focus areas for the team is how to materially change the trajectory of our full offering in those facilities. It's a strategic question for us. We're seeing the early parts of that read through. We've got a number of interesting opportunities that are already starting to materialize. But for us, thinking about how to really action this over the next 3 to 5 years is a key opportunity. Steven Lichtman: And then just going back to cash, good to see some of the costs coming down as you talked about heading into the year. What is your outlook for the strategic transactions cost line as you look out over the next few quarters? Phillip Berry: Yes, I would expect them to improve year-over-year, Steve. And again, this -- like I've mentioned before, this is the third year of really a heavy -- year 3 of a heavy integration of the Lima business that we acquired. So I would see those costs to continue to step down pretty significantly as we enter next year and beyond. But overall, we're still making some investments to finish the integration there. Operator: Our next question comes from the line of Ryan Zimmerman from BTIG. Ryan Zimmerman: Sorry, I just didn't get enough. I had to ask a follow-up. Just 2 quick ones for me. I didn't hear, Ben, do you get those selling days back? I think the annual is a net neutral. And when do you get those selling days back? And then 2, I didn't hear anything on tax refund or tariff refunds. And so what are you assuming -- and again, I apologize if I missed that, but what are you assuming for tariff refunds at this point or not assuming? Phillip Berry: Yes. No problem, Ryan. So we get 1 day back in Q2 and 1 day back in Q4. So that's really how it plays out. That's more like half a day actually in Q2. And so, from a tariff refund standpoint, we've submitted all our claims with regards to tariffs paid, but our assumption is that we will not get any refunds for tariffs that we've paid and that we'll continue to pay tariffs at the rate that we're currently seeing. That's what's embedded in our current outlook. Operator: Thank you. We have reached the end of the Q&A session. I will now turn the call back over to Damien, CEO, for closing remarks. Please go ahead. Damien McDonald: Thanks, everyone, for joining us today. With a solid start to the year, but we cannot lose sight of continuous improvement and winning each day. We're operating in an increasingly dynamic macroeconomic and geopolitical environment, and it's more important than ever that we remain focused on disciplined execution. Next week marks my 1-year anniversary at Enovis, and I'm inspired, very inspired by the opportunities ahead of us and the strength of our team. I'd like to thank all of our employees for their ongoing commitment, focus, and dedication to supporting our customers and improving patients' lives. We really appreciate your continued interest, and we support your forward-looking updating models and look forward to the progress throughout the year. Operator: Thank you so much, ladies and gentlemen. This concludes today's call. Thank you all for joining. You may now disconnect. Before you buy stock in Enovis, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Enovis wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $475,926!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,296,608!* Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 205% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 8, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Enovis (ENOV) Q1 2026 Earnings Transcript was originally published by The Motley Fool