Integra LifeSciences Holdings Corporation reported third-quarter 2026 revenues of $411.2 million, a 2.3% increase on a reported basis and 2.5% on an organic basis compared to the prior year. The results included an approximate $7 million revenue impact from flood damage at the company's Cincinnati facility, a disruption that Chairman and Chief Executive Officer Stuart Essig noted partially offset stronger performance in the Specialty Surgery segment.
The company generated GAAP net income of $14.9 million, or $0.19 per diluted share, reversing a net loss in the same quarter of 2025. Adjusted net income reached $46.4 million, or $0.59 per diluted share, up from $41.6 million, or $0.54 per diluted share, in the prior year period. GAAP gross margin stood at 51.0%, down from 51.5% in the third quarter of 2025, while adjusted gross margin decreased to 61.1% from 62.9%.
Specialty Surgery, which accounts for approximately 70% of total revenues, generated $304.1 million in sales, representing organic growth of 4.2%. Within this segment, Neuro sales increased 6.5% on an organic basis, driven by growth in CereLink, Certas Plus, Bactiseal, DuraSeal, and recovery in cranial perforators. Conversely, Instruments sales declined 0.9% on an organic basis due to order timing, and ENT sales fell 1.1%, largely attributable to a low-single digit decline in sinus balloons.
Tissue Reconstruction, representing roughly 30% of revenues, saw total sales of $107.1 million compared to the third quarter of 2025. Wound reconstruction experienced a low-single digit decline, with strong growth in DuraSorb and PriMatrix offset by drops in MicroMatrix and Integra Skin. The company stated that it has renamed its Private Label business to Corporate Partnerships to better reflect the nature of these customer relationships; this segment was approximately flat compared to the prior year.
In the balance sheet and capital allocation update, Integra reported operating cash flow of $96.0 million and reduced its consolidated total leverage ratio to 3.8x. Net debt at the end of the quarter was $1.5 billion, with total liquidity of approximately $559 million, including $311.9 million in cash and short-term investments.
Subsequent to quarter-end, on October 19, 2026, the company completed a $2.1 billion debt refinancing to extend debt maturities and enhance financial flexibility. The transaction consisted of a $1.65 billion senior secured credit facility and $450 million in aggregate principal amount of 9.5% senior secured notes due 2033. The new credit facility includes a $600 million Term Loan A, a $600 million revolving credit facility, and a $450 million Term Loan B. Amended debt covenants temporarily increase the maximum allowable net leverage ratio before scheduled step-downs to 4.25x during 2027, an increase from the previous covenant step-down of 4.0x for that year.
The company expects its effective interest rate to be near the high end of the previously communicated 100- to 200-basis-point range. For full-year 2026, Integra maintains revenue guidance between $1.634 billion and $1.654 billion with adjusted earnings per share between $2.30 and $2.40, matching the outlook released on October 2, 2026.