cfx-20250404

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM			10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 4, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-34045

Enovis Corporation

(Exact name of registrant as specified in its charter)


Delaware		54-1887631
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

2711 Centerville Road,	Suite 400
Wilmington,	Delaware	19808
(Address of principal executive offices)		(Zip Code)


(302)			252-9160
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	ENOV	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☑ Accelerated filer ☐ Non-accelerated filer ☐

Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of May 2, 2025, there were 57,123,051 shares of the registrant’s common stock, par value $.001 per share, outstanding.

TABLE OF CONTENTS


			Page
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements			2
Condensed Consolidated Statements of Operations			2
Condensed Consolidated Statements of Comprehensive Income (Loss)			3
Condensed Consolidated Balance Sheets			4
Condensed Consolidated Statements of Equity			5
Condensed Consolidated Statements of Cash Flows			6
Notes to Condensed Consolidated Financial Statements			7
Note 1. General			7
Note 2. Recently Issued Accounting Pronouncements			7

Note 3. Acquisitions and Investments			7
Note 4. Revenue			8
Note 5. Net Loss Per Share from Continuing Operations			9
Note 6. Income Taxes			10
Note 7. Equity			11
Note 8. Inventories, Net			12
Note 9. Debt			12
Note 10. Accrued Liabilities			14
Note 11. Financial Instruments and Fair Value Measurements			14
Note 12. Commitments and Contingencies			18
Note 13. Segment Information			18

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			21
Item 3. Quantitative and Qualitative Disclosures About Market Risk			34
Item 4. Controls and Procedures			36

PART II - OTHER INFORMATION
Item 1. Legal Proceedings			37
Item 1A. Risk Factors			37
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			37
Item 3. Defaults Upon Senior Securities			37
Item 4. Mine Safety Disclosures			37
Item 5. Other Information			37
Item 6. Exhibits			38

SIGNATURES			38

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

ENOVIS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Dollars in thousands, except per share amounts

(Unaudited)


	Three Months Ended
	April 4, 2025		March 29, 2024
Net sales	$	558,834	$	516,266
Cost of sales	226,605		218,370
Gross profit	332,229		297,896
Selling, general and administrative expense	269,019		255,691
Research and development expense	28,528		23,377
Amortization of acquired intangibles	41,812		40,931
Purchase of royalty interest	35,777		—
Restructuring and other charges	3,862		12,911
Operating loss	(46,769)		(35,014)

Interest expense, net	9,188		19,996



Other expense, net	1,392		24,235
Loss from continuing operations before income taxes	(57,349)		(79,245)
Income tax benefit	(1,769)		(7,404)
Net loss from continuing operations	(55,580)		(71,841)



Loss from discontinued operations, net of taxes	(125)		—
Net loss	(55,705)		(71,841)
Less: net income attributable to noncontrolling interest from continuing operations - net of taxes	261		157

Net loss attributable to Enovis Corporation	$	(55,966)	$	(71,998)
Net income (loss) per share - basic and diluted
Continuing operations	$	(0.98)	$	(1.32)
Discontinued operations	$	—	$	—
Consolidated operations	$	(0.98)	$	(1.32)

See Notes to Condensed Consolidated Financial Statements.

ENOVIS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Dollars in thousands

(Unaudited)


	Three Months Ended
	April 4, 2025		March 29, 2024
Net loss	$	(55,705)	$	(71,841)
Other comprehensive income (loss):
Foreign currency translation	104,928		(65,490)
Unrealized gain (loss) on hedging activities, net of tax expense (benefit) of $(13,055) and $7,701	(41,493)		24,791


Amounts reclassified from Accumulated other comprehensive loss:
Amortization of pension net actuarial gain (loss), net of tax expense (benefit) of $(12) and $(7)	(26)		(35)


Reclassification of hedging gain (loss), net of tax expense (benefit) of $(118) and $58	(385)		186
Other comprehensive income (loss)	63,024		(40,548)
Comprehensive income (loss)	7,319		(112,389)
Less: comprehensive income attributable to noncontrolling interest	383		106
Comprehensive income (loss) attributable to Enovis Corporation	$	6,936	$	(112,495)

See Notes to Condensed Consolidated Financial Statements.

ENOVIS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

Dollars in thousands, except share amounts

(Unaudited)


	April 4, 2025		December 31, 2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	38,460	$	48,167

Trade receivables, less allowance for credit losses of $26,846 and $24,466	435,618		407,031
Inventories, net	585,911		547,120
Prepaid expenses	42,494		36,246
Other current assets	115,698		107,882
Total current assets	1,218,181		1,146,446
Property, plant and equipment, net	426,288		404,500
Goodwill	1,733,334		1,692,709
Intangible assets, net	1,344,547		1,317,429
Lease asset - right of use	65,949		68,915
Other assets	86,735		88,778
Total assets	$	4,875,034	$	4,718,777

LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt	$	20,028	$	20,027
Accounts payable	188,149		179,098
Accrued liabilities	269,246		329,873
Total current liabilities	477,423		528,998
Long-term debt, less current portion	1,367,537		1,309,473
Non-current lease liability	49,161		52,461
Other liabilities	360,695		263,516
Total liabilities	2,254,816		2,154,448
Equity:
Common stock, $0.001 par value; 133,333,333 shares authorized; 57,118,641 and 55,876,517 shares issued and outstanding as of April 4, 2025 and December 31, 2024, respectively	57		56
Additional paid-in capital	3,021,690		2,973,121
Accumulated deficit	(338,989)		(283,023)
Accumulated other comprehensive loss	(64,990)		(127,892)
Total Enovis Corporation equity	2,617,768		2,562,262
Noncontrolling interest	2,450		2,067
Total equity	2,620,218		2,564,329
Total liabilities and equity	$	4,875,034	$	4,718,777

See Notes to Condensed Consolidated Financial Statements.

ENOVIS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

Dollars in thousands, except share amounts

(Unaudited)


	Common Stock			Additional Paid-In Capital	(Accumulated Deficit) Retained Earnings		Accumulated Other Comprehensive Loss		Noncontrolling Interest		Total
	Shares	Amount
Balance at December 31, 2024	55,876,517	$	56		$	2,973,121	$	(283,023)	$	(127,892)	$	2,067	$	2,564,329
Net income (loss)	—	—			—		(55,966)		—		261		(55,705)

Other comprehensive income, net of tax benefit of $(13,185)	—	—			—		—		62,902		122		63,024
Common stock issued for acquisition	971,343	1			44,409		—		—		—		44,410
Payments of tax withholding for stock-based awards	—	—			(3,447)		—		—		—		(3,447)
Common stock-based award activity	270,781				7,607		—		—		—		7,607
Balance at April 4, 2025	57,118,641	$	57		$	3,021,690	$	(338,989)	$	(64,990)	$	2,450	$	2,620,218


	Common Stock			Additional Paid-In Capital	(Accumulated Deficit) Retained Earnings		Accumulated Other Comprehensive Loss		Noncontrolling Interest		Total
	Shares	Amount
Balance at December 31, 2023	54,597,142	$	55		$	2,900,747	$	542,471	$	(24,881)	$	2,309	$	3,420,701
Net income (loss)	—	—			—		(71,998)		—		157		(71,841)

Other comprehensive loss, net of tax of $7,752	—	—			—		—		(40,497)		(51)		(40,548)

Payments of tax withholding for stock-based awards	—	—			(4,772)		—		—		—		(4,772)
Common stock-based award activity	243,439	—			7,302		—		—		—		7,302
Balance at March 29, 2024	54,840,581	$	55		$	2,903,277	$	470,473	$	(65,378)	$	2,415	$	3,310,842

See Notes to Condensed Consolidated Financial Statements.

ENOVIS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Dollars in thousands

(Unaudited)


	Three Months Ended
	April 4, 2025		March 29, 2024
Cash flows from operating activities:
Net loss	$	(55,705)	$	(71,841)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	71,435		73,404

Stock-based compensation expense	7,407		6,431
Non-cash interest expense	1,348		1,245
Fair value loss on contingent acquisition shares	1,787		13,443
Loss on currency hedges	—		11,123


Deferred income tax benefit	(1,769)		(9,966)
(Gain) loss on sale of property, plant and equipment	(527)		265

Changes in operating assets and liabilities:
Trade receivables, net	(15,977)		(12,009)
Inventories, net	(23,295)		(11,051)
Accounts payable	4,189		(11,752)
Other operating assets and liabilities	9,511		(25,448)
Net cash used in operating activities	(1,596)		(36,156)
Cash flows from investing activities:
Purchases of property, plant and equipment and intangibles	(43,262)		(36,928)

Payments for acquisitions, net of cash received, and investments	(18,858)		(760,914)
Cash received upon settlement of derivatives	1,601		—


Net cash used in investing activities	(60,519)		(797,842)
Cash flows from financing activities:
Proceeds from borrowings on term credit facility	—		400,000
Repayments of borrowings under term credit facility	(5,000)		(5,000)
Proceeds from borrowings on revolving credit facilities and other	72,000		480,000
Repayments of borrowings on revolving credit facilities and other	(10,438)		(1,956)

SEC Form 10-Q filed by Enovis Corporation