Financial Analysis

"COMMITMENTS AND CONTINGENCIES In consideration for certain technology, manufacturing, distribution, and selling rights and licenses granted to the Company, the Company has agreed to pay royalties on sales of certain products that it sells. The royalty payments that the Company made under these agreements were not significant for any of the periods presented. In the ordinary course of its business, the Company is involved in, from time to time, various legal actions, including any matters described below, involving product liability, employment, intellectual property and commercial disputes, shareholder related matters, environmental proceedings, tax disputes, and governmental proceedings and investigations, some of which have been settled by the Company. In the opinion of management, such matters are either adequately covered by insurance or otherwise indemnified, or are not expected, individually or in the aggregate, to result in a material, adverse effect on the Companys financial condition. However, it is possible that the Companys results of operations, financial position and cash flows in a particular period could be materially affected by these contingencies. The Company accrues for loss contingencies when it is deemed probable that a loss has been incurred and that loss is estimable. If the reasonable estimate of a probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is recorded. In most cases, s …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT Amendment to the Seventh Amended and Restated Credit Agreement On June 6, 2025, in response to the risks and uncertainties surrounding the Companys future results of operations due to tariffs, the Company entered into the June 2025 Amendment of the Senior Credit Facility with a syndicate of lending banks with Bank of America, N.A., as Administrative Agent. The June 2025 Amendment did not increase the Companys total indebtedness or extend the maturity date of the Senior Credit Facility. Under the terms of the June 2025 Amendment, the Companys Consolidated Total Leverage Ratio (defined, as of any date of determination, as the ratio of (a) Consolidated Funded Indebtedness as of such date (as defined in the Senior Credit Facility) less cash that is not subject to any restriction on the use or investment thereof to (b) Consolidated EBITDA (as defined in the Senior Credit Facility)) for the period of four consecutive fiscal quarters ending on such date was modified to the following: Fiscal Quarter Ending Maximum Consolidated Total Leverage Ratio June 30, 2025 through June 30, 2026 5.00 to 1.00 September 30, 2026 4.75 to 1.00 December 31, 2026 4.50 to 1.00 March 31, 2027 and the last day of each fiscal quarter thereafter 4.00 to 1.00 In addition to the foregoing, from the date of the June 2025 Amendment through the fiscal quarter ending December 31, 2026 (the Covenant Relief Period), the Amendment, among other things, also: (i) temporarily establishes, during the Covenant Relie …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents revenues disaggregated by the major sources of revenues for years-ended December 31, 2025, 2024, and 2023 (dollar amounts in thousands): Year Ended December 31, 2025 Year Ended December 31, 2024 Year Ended December 31, 2023 Neurosurgery $ 827,667 $ 803,816 $ 818,101 Instruments 206,472 204,177 203,617 ENT (1)(2) 166,372 135,643 37,275 Total Codman Specialty Surgical 1,200,511 1,143,636 1,058,993 Wound Reconstruction and Care 323,488 350,565 373,986 Private Label 111,246 116,326 108,594 Total Tissue Technologies 434,734 466,891 482,580 Total revenue $ 1,635,245 $ 1,610,527 $ 1,541,573 (1) See Note 4. Acquisitions and Divestitures for details surrounding the acquisition of Acclarent on April 1, 2024. (2) Prior period revenues included within our instruments business have been reclassified under the ENT business.

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STOCK-BASED COMPENSATION Stock-based compensation expense - all related to employees and members of the Board of Directors - recognized under the authoritative guidance was as follows: Years Ended December 31, Dollars in thousands 2025 2024 2023 Cost of goods sold $ 806 $ 649 $ 588 Research and development 2,250 2,697 2,071 Selling, general and administrative 15,527 21,031 17,483 Total stock-based compensation expense $ 18,583 $ 24,377 $ 20,142 Total estimated tax benefit related to stock-based compensation expense 2,826 4,677 5,223 Net effect on net income $ 15,757 $ 19,700 $ 14,919 EQUITY AWARD PLANS As of December 31, 2025, the Company had stock options, restricted stock awards, performance stock awards, contract stock awards and restricted stock unit awards outstanding under the Integra LifeSciences Holdings Corporation Fifth Amended and Restated 2003 Equity Incentive Plan (the 2003 Plan). In May 2010 and May 2017, the stockholders of the Company approved amendments to the 2003 Plan to increase by 3.5 million and 1.7 million, respectively, the number of shares of common stock that may be issued under the 2003 Plan. The Company has reserved 14.7 million shares under the 2003 Plan. The 2003 Plan permits the Company to grant incentive and non-qualified stock options, stock appreciation rights, restricted stock, contract stock, performance stock, or dividend equivalent rights to designated directors, officers, employees and associates of the Company. Stock options issued unde …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENTS FASB Topic 820, Fair Value Measurement (ASC 820) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. Valuation techniques used to measure fair value should maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 establishes a three-level hierarchy of the inputs (i.e., assumptions that market participants would use in pricing an asset or liability) used to measure fair value, giving the highest priority to quoted prices in active markets and the lowest priority to unobservable inputs in measuring fair value. The categorization within the valuation hierarchy is based on the lowest level of input that is significant to the entire fair value measurement. The three levels of the valuation hierarchy are defined as follows: Level 1 : Inputs to the valuation methodology are quoted prices in active markets for identical assets or liabilities. Level 2 : Inputs to the valuation methodology are other observable inputs, including quoted market prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not ac …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill In accordance with FASB Topic 350, IntangiblesGoodwill and Other (ASC 350), goodwill is not subject to amortization but is tested for impairment at the reporting unit level annually in the third quarter. Additionally, the Company may perform interim tests of goodwill for impairment if an event occurs or circumstances change that could potentially reduce the fair value of a reporting unit below its carrying amount. The carrying value of each reporting unit is determined by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those reporting units. An impairment loss is recognized when the reporting units carrying amount exceeds its estimated fair value. The Company tests for impairment by either performing a qualitative evaluation or a quantitative test. The qualitative evaluation is an assessment of factors, including reporting unit specific operating results as well as industry, market and general economic conditions, to determine whether it is more likely than not that the fair values of a reporting unit is less than its carrying amount, including goodwill. The Company may elect to bypass this qualitative evaluation for some or all of its reporting units and perform a quantitative test. The quantitative test uses a combination of both an income approach and a market approach to determine the fair value of the reporting unit. The income approach utilizes the estimated discounted cash flo …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES Income before income taxes consisted of the following: Years Ended December 31, Dollars in thousands 2025 2024 2023 United States operations $ (469,208) $ (172,273) $ (31,649) Foreign operations (94,294) 154,036 112,718 Total $ (563,502) $ (18,237) $ 81,069 A reconciliation of the U.S. Federal statutory rate to the Companys effective tax rate is as follows: Year Ended December 31, 2025 Amount Percent Federal statutory rate $ (118,345) 21.0 % State income taxes, net of federal tax benefit (1) $ (5,571) 1.0 % Foreign tax effects: Switzerland: Swiss IP Transfer $ 14,979 (2.7) % Federal statutory tax rate difference $ 7,377 (1.3) % Cantonal/communal rate difference $ (9,938) 1.8 % Other $ 5,492 (1.0) % Other foreign jurisdictions $ (2,381) 0.4 % Non-taxable or non-deductible items: Goodwill impairment $ 63,660 (11.3) % Other $ (2,063) 0.4 % Cross-border tax laws: Global intangible low-taxed income $ 2,235 (0.4) % Subpart F income $ 4,451 (0.8) % Tax credits: Foreign tax credit $ (1,792) 0.3 % Research and development credit $ (6,707) 1.2 % Valuation allowance $ 662 (0.1) % Worldwide changes in prior year unrecognized tax benefits $ 913 (0.2) % Effective Tax Rate $ (47,028) 8.3 % (1) State Taxes in California, Florida, Illinois, New Jersey, New York, and Tennessee made up the majority (greater than 50 percent) of the tax effect in this category. Years Ended December 31, 2024 2023 Federal statutory rate 21.0 % 21.0 % Increase (decrease) in income taxes resulting from: …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES AND RELATED PARTY LEASES The Company leases administrative, manufacturing, research and distribution facilities and vehicles through operating lease agreements. The Company has no material finance leases as of December 31, 2025. Many of the Companys leases include both lease (e.g., fixed payments including rent) and non-lease components (e.g., common-area or other maintenance costs). For vehicles, the Company has elected the practical expedient to group lease and non-lease components. Most facility leases include one or more options to renew. The exercise of lease renewal options is typically at the Companys sole discretion, therefore, the majority of renewals to extend the lease terms are not included in the Right of Use (ROU) assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates renewal options and when they are reasonably certain of exercise, the renewal period is included in the lease term. As most of the Companys leases do not provide an implicit rate, the Company uses a collateralized incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. Total operating lease expense for the year ended December 31, 2025 and 2024, was $23.9 million and $24.3 million, respectively, which includes $0.3 million, in related party operating lease expense. Supplemental balance sheet information related to operating leases at December 31, 2 …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

RECENT ACCOUNTING PRONOUNCEMENTS In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09) which enhances the transparency of income tax disclosures by expanding annual disclosure requirements related to the rate reconciliation and income taxes paid. The amendments are effective for fiscal years beginning after December 15, 2024. The amendments should be applied on a prospective basis. Retrospective application to all prior periods presented in the financial statements is permitted. The Company has adopted ASU 2023-09 for the annual period ended on December 31, 2025 on a prospective basis. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03), and in January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date (ASU 2025-01). ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement. The standard requires disclosures about specific types of expenses included in the expense captions presented in the income statement. This ASU is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after Decem …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

RETIREMENT BENEFIT PLANS DEFINED BENEFIT PLANS The Company has various defined benefit plans which covers certain employees in France, Japan, Germany and Switzerland. Net periodic benefit costs for the Companys defined benefit pension plans for the years ended December 31, 2025 and 2024 included the following (amounts in thousands): Year ended December 31, 2025 2024 2023 Service cost $ 3,578 $ 3,113 $ 2,226 Interest cost 757 866 1,157 Expected return on plan assets (2,117) (1,639) (1,450) Amortization of prior service cost (credit) (621) (585) (389) Settlements 1 (144) Actuarial losses (13) 6 (391) Net periodic benefit cost $ 1,585 $ 1,617 $ 1,153 The following weighted average assumptions were used to develop net periodic pension benefit costs and the actuarial present values of projected pension benefit obligations for the years ended December 31, 2025 and 2024, respectively: As of December 31, 2025 2024 2023 Discount rate 1.45 % 1.14 % 1.51 % Expected return on plan assets 3.70 % 3.65 % 3.67 % Rate of compensation increase 2.11 % 2.12 % 2.00 % Interest crediting rate for cash balance plans 1.00 % 1.00 % 1.00 % The Companys discount rates are determined by considering current yield curves representing high quality, long-term fixed income instruments. The resulting discount rates are consistent with the duration of plan liabilities. In 2025 and 2024, the discount rates were prescribed as the current yield on corporate bonds with an average credit rating of AA or AAA of equiv …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

REVENUES FROM CONTRACTS WITH CUSTOMERS Summary of Accounting Policies on Revenue Recognition Revenue is recognized upon the transfer of control of promised products or services to the customers in an amount that reflects the consideration the Company expects to receive in exchange for those products and services. Performance Obligations The Companys performance obligations consist mainly of transferring control of goods and services identified in the contracts, purchase orders, or invoices. The Company has no significant multi-element contracts with customers. Significant Estimates Usage-based royalties and licenses are estimated based on the provisions of contracts with customers and recognized in the same period that the royalty-based products are sold by the Companys strategic partners. The Company estimates and recognizes royalty revenue based upon communication with licensees, historical information, and expected sales trends. Differences between actual reported licensee sales and those that were estimated are adjusted in the period in which they become known, which is typically the following quarter. Historically, such adjustments have not been significant. The Company estimates returns, price concessions, and discount allowances using the expected value method based on historical trends and other known factors. Rebate allowances are estimated using the most likely method based on each customer contract. The Companys return policy, as set forth in its product catalogs a …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT AND GEOGRAPHIC INFORMATION The Company is organized primarily on the basis of products and operates two global reportable segments. Resources are allocated and performance is assessed by the Companys President and Chief Executive Officer, which the Company has determined to be the Chief Operating Decision Maker (CODM). The two reportable segments and their activities are described below. The Codman Specialty Surgical segment operations consist of (i) the Neurosurgery business, which sells a full line of products for neurosurgery and neuro critical care such as tissue ablation equipment, dural repair products, cerebral spinal fluid management devices, intracranial monitoring equipment, and cranial stabilization equipment; (ii) the Instruments business, which sells more than 40,000 instrument patterns and surgical and lighting products to hospitals, surgery centers, dental, podiatry, and veterinary offices; and (iii) the ENT business, which includes instrumentation, balloon technologies for sinus dilation and eustachian tube dilation, as well as surgical navigation systems. The Tissue Technologies segment operations consists of Wound Reconstruction and Care business, which sells offerings such as skin and wound repair, plastics and surgical reconstruction products and nerve and tendon repair products. The Tissue Technologies segment also includes the Companys private label business. The Corporate and Other category includes (i) various executive, finance, human resource …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION These financial statements and the accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America and conform to Regulation S-X under the Securities Exchange Act of 1934, as amended. PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. See Note 4. Acquisitions and Divestitures , for details of new subsidiaries included in the consolidation. USE OF ESTIMATES The preparation of consolidated financial statements is in conformity with generally accepted accounting principles in the United States (GAAP) which requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent liabilities, and the reported amounts of revenues and expenses. Significant estimates affecting amounts reported or disclosed in the consolidated financial statements include allowances for doubtful accounts receivable and sales returns and allowances; net realizable value of inventories; accounting for business combinations; valuation of goodwill and intangible assets including estimated projected cash flows, discount rates, and estimated useful lives used to value and test goodwill and intangible assets for impairment; income taxes and valuation allowa …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"Note 15. Commitments and Contingencies In consideration for certain technology, manufacturing, distribution, and selling rights and licenses granted to the Company, the Company has agreed to pay royalties on sales of certain products that it sells. The royalty payments that the Company made under these agreements were not significant for any of the periods presented. In the ordinary course of its business, the Company is involved in, from time to time, various legal actions, including any matters described below, involving product liability, employment, intellectual property and commercial disputes, shareholder related matters, environmental proceedings, tax disputes, and governmental proceedings and investigations, some of which have been settled by the Company. In the opinion of management, such matters are either adequately covered by insurance or otherwise indemnified, or are not expected, individually or in the aggregate, to result in a material, adverse effect on the Companys financial condition. However, it is possible that the Companys results of operations, financial position and cash flows in a particular period could be materially affected by these contingencies. The Company accrues for loss contingencies when it is deemed probable that a loss has been incurred and that loss is estimable. If the reasonable estimate of a probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is recorded. In most …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 5. Debt Amendment to the Seventh Amended and Restated Credit Agreement On March 24, 2023, the Company entered into the March 2023 Amendment of the Senior Credit Facility with a syndicate of lending banks with Bank of America, N.A., as Administrative Agent. The March 2023 Amendment of the Senior Credit Facility extended the maturity date to March 24, 2028, amended the contractual repayments of the term loan component, and amended the interest rate from LIBOR to SOFR-indexed interest. The Senior Credit Facility is collateralized by substantially all of the assets of the Companys U.S. subsidiaries, excluding intangible assets. The Senior Credit Facility is subject to various financial and negative covenants and, at June 30, 2026, the Company was in compliance with all such covenants. On June 6, 2025, in response to the risks and uncertainties surrounding the Companys future results of operations due to tariffs, the Company entered into the June 2025 Amendment of the Senior Credit Facility (the June 2025 Amendment) with a syndicate of lending banks with Bank of America, N.A., as Administrative Agent. The June 2025 Amendment did not increase the Companys total indebtedness or extend the maturity date of the Senior Credit Facility. Under the terms of the June 2025 Amendment, the Companys Consolidated Total Leverage Ratio (defined, as of any date of determination, as the ratio of (a) Consolidated Funded Indebtedness as of such date (as defined in the Senior Credit Facility) les …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents revenues disaggregated by the major sources of revenues for the three and six months ended June 30, 2026 and 2025 (dollar amounts in thousands): Three Months Ended June 30, 2026 Three Months Ended June 30, 2025 Six Months Ended June 30, 2026 Six Months Ended June 30, 2025 Neurosurgery $ 213,264 $ 208,992 $ 411,458 $ 399,904 Surgical Instruments 54,806 53,080 102,039 104,030 ENT Solutions 41,199 41,886 78,907 80,688 Total Specialty Surgery 309,269 303,958 592,404 584,622 Wound Reconstruction Solutions 81,305 84,747 160,952 159,526 Private Label 28,187 26,900 57,323 54,110 Total Tissue Reconstruction 109,492 111,647 218,275 213,636 Total Revenue $ 418,761 $ 415,605 $ 810,679 $ 798,258

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Note 7. Stock Based Compensation As of June 30, 2026, the Company had stock options, restricted stock awards, performance stock units and restricted stock units outstanding under the Integra LifeSciences Holdings Corporation Fifth Amended and Restated 2003 Equity Incentive Plan, as amended (the 2003 Plan). Stock options issued under the 2003 Plan become exercisable over specified periods, generally within four years from the date of grant for officers and employees, within one year from date of grant for directors which generally expire eight years from the grant date for employees, and from six to ten years for directors and certain executive officers, except in certain instances that result in accelerated vesting due to death, disability, retirement age or change-in-control provisions within their grant agreements. The Company values stock option grants using the binomial distribution model. Restricted stock issued under the 2003 Plan vests over specified periods, generally three years after the date of grant. The vesting of performance stock issued under the 2003 Plan is subject to service and performance conditions. Stock Options As of June 30, 2026, there were approximately $8.2 million of total unrecognized compensation costs related to unvested stock options. These costs are expected to be recognized over a weighted-average period of approximately three years. There were 765,840 stock options granted during the six months ended June 30, 2026. For the six months ended J …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Note 16. Fair Value Measurements FASB Topic 820, Fair Value Measurement (ASC 820) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. Valuation techniques used to measure fair value should maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 establishes a three-level hierarchy of the inputs (i.e., assumptions that market participants would use in pricing an asset or liability) used to measure fair value, giving the highest priority to quoted prices in active markets and the lowest priority to unobservable inputs in measuring fair value. The categorization within the valuation hierarchy is based on the lowest level of input that is significant to the entire fair value measurement. The three levels of the valuation hierarchy are defined as follows: Level 1 : Inputs to the valuation methodology are quoted prices in active markets for identical assets or liabilities. Level 2 : Inputs to the valuation methodology are other observable inputs, including quoted market prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that a …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 4. Goodwill and Other Intangible Assets Goodwill Changes in the carrying amount of goodwill for the six-month period ended June 30, 2026 were as follows: Dollars in thousands Specialty Surgery Tissue Reconstruction Total Goodwill at December 31, 2025 $ 344,167 $ 270,990 $ 615,157 Foreign currency translation (2,245) (1,767) (4,012) Goodwill at June 30, 2026 $ 341,922 $ 269,223 $ 611,145 In accordance with FASB Topic 350, IntangiblesGoodwill and Other (ASC 350), goodwill is not subject to amortization but is tested for impairment at the reporting unit level annually in the third quarter. Additionally, the Company may perform interim tests of goodwill for impairment if an event occurs or circumstances change that could potentially reduce the fair value of a reporting unit below its carrying amount. The carrying value of each reporting unit is determined by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those reporting units. An impairment loss is recognized when the reporting units carrying amount exceeds its estimated fair value. The Company tests for impairment by either performing a qualitative evaluation or a quantitative test. The qualitative evaluation is an assessment of factors, including reporting unit specific operating results as well as industry, market and general economic conditions, to determine whether it is more likely than not that the fair values of a reporting unit is less than its carrying amount, includ …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Note 11. Income Taxes The following table provides a summary of the Companys effective tax rate: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Reported tax rate 5.5 % 8.8 % 105.7 % 9.2 % The Companys effective income tax rates for the three months ended June 30, 2026 and 2025 were 5.5% and 8.8%, respectively. The 2026 effective tax rate was primarily impacted by tax benefits associated with returns filed in certain foreign jurisdictions, as well as the jurisdictional mix of income, including its impact on the Companys net Controlled Foreign Corporation tested income (NCTI) inclusion, formerly referred to as Global Intangible Low Taxed Income (GILTI). The 2025 effective tax rate was primarily impacted by a partially non-deductible goodwill impairment charge, NCTI, and additional taxes related to global minimum tax requirements in certain foreign jurisdictions, partially offset by tax benefits from operating losses in certain jurisdictions. The Companys effective income tax rates for the six months ended June 30, 2026 and 2025 were 105.7% and 9.2%, respectively. The 2026 effective tax rate was primarily impacted by tax expense related to a shortfall from stock-based compensation due to market conditions, partially offset by a tax benefit from returns filed in certain foreign jurisdictions. The 2025 effective tax rate was primarily impacted by a partially non-deductible goodwill impairment charge, GILTI, and additional taxes related to global minimum …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Note 9. Leases and Related Party Leases The Company leases administrative, manufacturing, research and distribution facilities, equipment and vehicles through operating lease agreements. The Company has no finance leases as of June 30, 2026. Many of the Companys facility leases include both lease (e.g., fixed payments including rent) and non-lease components (e.g., common-area or other maintenance costs). For vehicles, the Company has elected the practical expedient to group lease and non-lease components. Most facility leases include one or more options to renew. The exercise of lease renewal options is typically at the Companys sole discretion, therefore, the majority of renewals to extend the lease terms are not included in the Right of Use (ROU) assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates renewal options and when they are reasonably certain of exercise, the renewal period is included in the lease term. As most of the Companys leases do not provide an implicit rate, the Company uses a collateralized incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. Total operating lease expense for the six months ended June 30, 2026 and June 30, 2025 was $13.0 million and $11.9 million, respectively, which includes $0.1 million in related party operating lease expense. Supplemental balance sheet information related to operating …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03), and in January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date (ASU 2025-01). ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement. The standard requires disclosures about specific types of expenses included in the expense captions presented in the income statement. This ASU is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. The requirements should be applied on a prospective basis while retrospective application is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its disclosures. In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06), which removes all references to software development project stages and requires entities to start capitalizing software costs when both of the following occur: (i) management has authorized and committed to funding the software projec …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 8. Retirement Plans The Company has various defined benefit plans which cover certain employees in France, Japan, Germany and Switzerland. Net periodic benefit costs for the Companys defined benefit pension plans for the three and six months ended June 30, 2026 were $0.4 million and $0.9 million. The components of the net periodic benefit costs other than the service cost component of $1.0 million and $2.0 million for the three and six months ended June 30, 2026 are included in other income, net in the consolidated statements of operations. Net periodic benefit costs for the Companys defined benefit pension plans for the three and six months ended June 30, 2025 were $0.4 million and $0.7 million. The components of the net periodic benefit costs other than the service cost component of $0.8 million and $1.6 million for the three and six months ended June 30, 2025 are included in other income, net in the consolidated statements of operations. The estimated fair values of plan assets were $69.7 million and $71.7 million as of June 30, 2026 and December 31, 2025, respectively. The net plan assets of the pension plans are invested in common trusts as of June 30, 2026 and December 31, 2025. Common trusts are classified as Level 2 in the fair value hierarchy. The fair value of common trusts is valued at the net asset value based on the fair values of the underlying investments of the trusts as determined by the sponsor of the trusts. The investment strategy of the Companys defi …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Note 2. Revenue From Contracts with Customers Summary of Accounting Policies on Revenue Recognition Revenue is recognized upon the transfer of control of promised products or services to the customers in an amount that reflects the consideration the Company expects to receive in exchange for those products and services. Performance Obligations The Companys performance obligations consist mainly of transferring control of goods and services identified in the contracts, purchase orders, or invoices. The Company has no significant multi-element contracts with customers. Significant Estimates Usage-based royalties and licenses are estimated based on the provisions of contracts with customers and recognized in the same period that the royalty-based products are sold by the Companys strategic partners. The Company estimates and recognizes royalty revenue based upon communication with licensees, historical information, and expected sales trends. Differences between actual reported licensee sales and those that were estimated are adjusted in the period in which they become known, which is typically the following quarter. Historically, such adjustments have not been significant. The Company estimates returns, price concessions, and discount allowances using the expected value method based on historical trends and other known factors. Rebate allowances are estimated using the most likely method based on each customer contract. The Companys return policy, as set forth in its product cat …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Note 14. Segment and Geographic Information The Company is organized primarily on the basis of products and operates two global reportable segments. Resources are allocated and performance is assessed by the Companys President and Chief Executive Officer, which the Company has determined to be the CODM. During the six months ended June 30, 2026, the Company renamed its two reportable segments to better align with the reportable segments business activities, structures, and strategies. The reportable segment name change did not result in any change to the composition of the reportable segments and has no impact on previously reported financial information. The two reportable segments and their activities are described below. The Specialty Surgery reportable segment operations consist of (i) the Neurosurgery business, which sells a full line of products for neurosurgery and neuro critical care such as tissue ablation equipment, dural repair products, cerebral spinal fluid management devices, intracranial monitoring equipment, and cranial stabilization equipment; (ii) the Surgical Instruments business, which sells more than 40,000 instrument patterns and surgical and lighting products to hospitals, surgery centers, dental, podiatry, and veterinary offices; and (iii) the ENT Solutions business, which includes instrumentation, balloon technologies for sinus dilation and eustachian tube dilation, as well as surgical navigation systems. The Tissue Reconstruction reportable segment o …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 17. Subsequent Events On July 17, 2026, the Companys manufacturing facility in Cincinnati, Ohio sustained flood damage as a result of severe weather conditions. The flooding caused damage to the facility, equipment, inventory and other assets and resulted in operational disruptions at the site. The Company is currently evaluating the extent of the damage and has not completed its assessment of the financial impact of the event. At the date the financial statements were issued, the Company is unable to reasonably estimate the total losses that may be incurred. The Company maintains insurance coverage for property damage and business interruption losses and is actively working with its insurance carriers to assess available coverage and potential recoveries. Because the event occurred after the balance sheet date, the accompanying condensed consolidated financial statements do not reflect any adjustments related to this event. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing