CONMED Corp has recently released its 10-K report, providing a detailed look into its business operations. The company, a medical technology firm, specializes in developing, manufacturing, and selling devices and equipment for surgical procedures in the United States and internationally. CONMED offers a wide range of products, including orthopedic surgery products, general surgery products, endoscopic technologies, and patient monitoring equipment. The company markets its products directly to hospitals, surgery centers, and other healthcare institutions, as well as through medical specialty distributors. CONMED Corporation was incorporated in 1970 and is headquartered in Largo, Florida.
In the 10-K report, the company's management discussed the financial condition and results of operations for the years 2025 and 2024. The report highlighted that approximately 86% of CONMED's revenues are derived from the sale of single-use products, contributing to a recurring revenue stream. The company manufactures most of its products in facilities located in the United States and Mexico and markets its products both domestically and internationally. International sales accounted for approximately 44% of total sales in 2025.
The report also outlined the challenges faced by the company, including inflationary pressures, higher manufacturing and operating costs, ongoing supply chain challenges, and the impact of tariffs on imported goods to the United States. CONMED engaged a consulting firm in 2025 to evaluate and propose improvements in its manufacturing operations to mitigate these challenges.
Furthermore, the company performed a product portfolio review in 2025, resulting in the discontinuation of certain products and the cancellation of planned new product lines. Additionally, CONMED announced its intent to exit its gastroenterology product lines as part of its portfolio optimization strategy in December 2025.
The 10-K report also delved into CONMED's critical accounting policies, including the assessment of goodwill and intangible assets, contingent consideration related to acquisitions, and the management of its defined benefit pension plan.
In terms of financial performance, net sales for CONMED increased by 5.2% in 2025, driven by growth in both the orthopedic surgery and general surgery product lines. However, the cost of sales increased, leading to a decrease in gross profit margins. Selling and administrative expenses also rose in 2025 compared to the previous year, primarily due to fair value adjustments to contingent consideration.
The market has reacted to these announcements by moving the company's shares -2.3% to a price of $41.57. Check out the company's full 10-K submission here.
