# EDGAR Filing Document

**Accession Number:** 0001606498
**File Stem:** 0001606498-26-000002
**Filing Date:** 2026-2
**Character Count:** 49682
**Document Hash:** f2e9f80fffb2c5d00f38bcdc0962dbe2
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001606498-26-000002.hdr.sgml**: 20260224

**ACCESSION NUMBER**: 0001606498-26-000002

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20260224

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260224

**DATE AS OF CHANGE**: 20260224

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** AVANOS MEDICAL, INC.
- **CENTRAL INDEX KEY:** 0001606498
- **STANDARD INDUSTRIAL CLASSIFICATION:** ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES [3842]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 464987888
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-36440
- **FILM NUMBER:** 26667424

**BUSINESS ADDRESS:**
- **STREET 1:** 5405 WINDWARD PARKWAY
- **STREET 2:** SUITE 100 SOUTH
- **CITY:** ALPHARETTA
- **STATE:** GA
- **ZIP:** 30004
- **BUSINESS PHONE:** 844-428-2667

**MAIL ADDRESS:**
- **STREET 1:** 5405 WINDWARD PARKWAY
- **STREET 2:** SUITE 100 SOUTH
- **CITY:** ALPHARETTA
- **STATE:** GA
- **ZIP:** 30004

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Avanos Medical, Inc.
- **DATE OF NAME CHANGE:** 20180702

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Halyard Health, Inc.
- **DATE OF NAME CHANGE:** 20140424

?xml version='1.0' encoding='ASCII'? avns-20260224

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K** 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

**Date of Report: February 24, 2026** 

(Date of earliest event reported)

![avanoslogoa08.jpg](avns-20260224_g1.jpg)

**AVANOS MEDICAL, INC.** 

(Exact name of registrant as specified in its charter)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Delaware** | **Delaware** | **001-36440** | **001-36440** | **001-36440** | **46-4987888** |
| (State or other jurisdiction of incorporation) | (State or other jurisdiction of incorporation) | (Commission file number) | (Commission file number) | (Commission file number) | (I.R.S. Employer Identification No.) |
| | **5405 Windward Parkway** | **5405 Windward Parkway** | **5405 Windward Parkway** | **5405 Windward Parkway** | **5405 Windward Parkway** |
| | **Suite 100 South** | **Suite 100 South** | **Suite 100 South** | **Suite 100 South** | **Suite 100 South** |
| | **Alpharetta,** | **Alpharetta,** | **Georgia** | **30004** | **30004** |
| | (Address of principal executive offices) | (Address of principal executive offices) | (Address of principal executive offices) | (Zip code) | (Zip code) |

---

**Registrant's telephone number, including area code: (844) 428-2667**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol | Name of exchange on which registered |
| **Common Stock - $0.01 Par Value** | **AVNS** | **New York Stock Exchange** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

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. ☐

------

**Item 2.02&nbsp;&nbsp;&nbsp;&nbsp;Results of Operation and Financial Condition**

On February 24, 2026, Avanos Medical, Inc. (the "Company") issued a press release announcing its results of operations for the three months and year ended December 31, 2025. A copy of the press release is furnished herewith as Exhibit 99.1.

The information contained in this Item 2.02 of this Current Report, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section. The information in Item 2.02 of this Current Report or Exhibit 99.1 shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.

**Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Exhibits.

&nbsp;&nbsp;&nbsp;&nbsp;The following exhibits are filed with this Current Report on Form 8-K:

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| <u>[99.1](avns4q2025form8-kex991.htm)</u> | <u>[Press Release issued by Avanos Medical, Inc. on February 24, 2026](avns4q2025form8-kex991.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the inline XBRL document) |

---

------

**<u>SIGNATURE</u>**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
| | | AVANOS MEDICAL, INC. | AVANOS MEDICAL, INC. |
| Date: | February 24, 2026 | By: | /s/ John J. Hurley |
|  |  |  | John J. Hurley<br>Controller |

---

## Exhibit 99.1

![avanoslogoa08.jpg](avanoslogoa08.jpg)<br>

---

| |
|:---|
| Investor Contact: Scott Galovan |
| Avanos Medical, Inc. |
| 470-562-2692 |
| Investor.Relations@Avanos.com |
| Media Contact: Katrine Kubis |
| Avanos Medical, Inc. |
| CorporateCommunications@Avanos.com |

---

**Avanos Medical, Inc. Announces Fourth Quarter and Full-Year 2025 Results**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exceeded full-year revenue and achieved the top end of full-year earnings-per-share guidance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Delivered full-year organic growth of 6% in strategic segments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expanded transformation initiatives expected to deliver $15 to $20 million of incremental annualized savings by the end of 2026

**ALPHARETTA, Ga., February 24, 2026/PRNewswire/** -- Avanos Medical, Inc. (NYSE: AVNS) today reported fourth quarter and full-year 2025 results.

"I'm very pleased with our fourth quarter and full-year results, which demonstrate meaningful progress on our strategic priorities," said David Pacitti, Avanos' chief executive officer. Pacitti continued, "Our organic growth remains healthy and positions us well for 2026. Our tariff mitigation efforts are on track, and we're beginning to see the impact of our cost management initiatives. I'm proud of our team's focus and commitment."

**Fourth Quarter 2025 Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Total fourth quarter net sales were $180.9 million, a 0.7% increase from the prior year period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating income in the quarter was $2.5 million compared to operating loss of $418.5 million in the prior year period. On an adjusted basis, operating income was $22.6 million compared to $23.9 million a year ago.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net loss for the quarter was $1.3 million, compared to net loss of $397.0 million in the prior year period. On an adjusted basis, fourth quarter net income was $13.4 million compared to $20.0 million in the prior year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fourth quarter diluted loss per share was $0.03 compared to diluted loss per share of $8.63 a year ago. On an adjusted basis, fourth quarter diluted earnings per share was $0.29 compared to $0.43 in the prior year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA for the quarter was $28.0 million compared to $28.6 million in the prior year period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fourth quarter free cash flow was $21.3 million compared to $53.1 million in the fourth quarter of last year.

*Specialty Nutrition Systems Segment*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Specialty Nutrition Systems ("SNS") segment delivered above-market results in the fourth quarter of 2025, achieving net sales of $115.1 million, an increase of 8.7% compared to the prior year period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating income in the SNS segment for the fourth quarter of 2025 was $20.5 million, or 17.8% of SNS net sales, a decrease of $4.5 million.

------

*Pain Management and Recovery Segment*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* Pain Management and Recovery ("PM&R") segment net sales for the fourth quarter of 2025 was $61.6 million, an increase of 1.3% compared to the prior year period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating income in the PM&R segment for the fourth quarter of 2025 was $5.2 million compared to $3.9 million last year.

**Full-Year 2025 Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales increased 1.9% to $701.2 million in 2025, compared to $687.8 million in 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating loss in 2025 was $61.6 million compared to operating loss of $396.2 million in the prior year. On an adjusted basis, operating profit was $67.1 million compared to $87.3 million in 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net loss in 2025 was $72.9 million, compared to net loss of $386.3 million in the prior year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For the full-year, adjusted EBITDA totaled $86.8 million, compared to $107.6 million in the prior year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 2025 diluted loss per share was $1.57 compared to diluted loss per share of $8.40 in the prior year. On an adjusted basis, diluted earnings per share was $0.94 compared to $1.35 in 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 2025 year-to-date free cash flow was $43.1 million compared to $82.9 million in 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As of December 31, 2025, our net debt was $10.7 million compared to $27.0 million in the prior year.

*Specialty Nutrition Systems Segment*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The SNS segment delivered above-market results in 2025, achieving net sales of $432.9 million, an increase of 9.2% compared to 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating income in the SNS segment in 2025 was $82.6 million, or 19% of SNS net sales, an increase of $1.8 million compared to 2024.

*Pain Management and Recovery Segment*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*•* PM&R segment net sales for 2025 was $237.8 million, an increase of 1.5% compared to 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating income in the PM&R segment for 2025 was $9.2 million compared to $2.7 million in 2024.

**Non-Cash Goodwill Impairment**

During the second quarter, due to downward pressure on our market capitalization, we assessed goodwill for impairment and recorded an impairment charge of $77.0 million associated with the PM&R segment.

**Cash Flow and Balance Sheet**

Cash from operations less capital expenditures, or free cash flow, for the fourth quarter of 2025 was $21.3 million, compared to $53.1 million a year ago. For 2025, free cash flow was $43.1 million, compared to $82.9 million in the prior year.

At year-end 2025, the Company's cash balance was $89.8 million compared to $107.7 million at year-end 2024. Total debt at the end of the fourth quarter totaled $100.5 million, consisting of borrowings on the Company's term loan facility.

**Sale of HA Product Line**

On July 31, 2025, we announced the divestiture of our HA product line to Channel-Markers Medical, LLC, a privately held company. This transaction aligns with our ongoing transformation, which is focused on advancing our strategic SNS and PM&R segments.

**2026 Outlook**

We expect 2026 net sales to be between $700 million and $720 million, and adjusted diluted earnings per share are expected to be between $0.90 and $1.10.

------

**Non-GAAP Financial Measures**

This press release and the accompanying tables include the following financial measures that have not been calculated in accordance with accounting principles generally accepted in the U.S., or GAAP, and are therefore referred to as non-GAAP financial measures:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted net income

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted diluted earnings per share

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted gross and operating profit

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted effective tax rate

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted selling, general and administrative expenses

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Free cash flow

These non-GAAP financial measures exclude the following items, as applicable, for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Certain acquisition and integration charges related to acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expenses associated with restructuring and transformation activities, including the divestiture of the Company's respiratory health business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expenses associated with European Union Medical Regulation ("EU MDR") compliance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The amortization of intangible assets associated with business acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Impairments of intangibles or goodwill;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The amortization of intangible assets associated with prior business acquisitions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The tax effects of certain adjusting items; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The positive or negative effect of changes in currency exchange rates during the year.

The Company provides these non-GAAP financial measures as supplemental information to our GAAP financial measures. Management and the Company's Board of Directors use net sales on a constant currency basis, adjusted net income, adjusted diluted earnings per share, adjusted operating profit, adjusted EBITDA, and free cash flow to (a) evaluate the Company's historical and prospective financial performance and its performance relative to its competitors, (b) allocate resources and (c) measure the operational performance of the Company's business units and their managers. Management also believes that the use of an adjusted effective tax rate provides improved insight into the tax effects of the Company's ongoing business operations.

Additionally, the Compensation Committee of the Company's Board of Directors will use certain of the non-GAAP financial measures when setting and assessing achievement of incentive compensation goals. These goals are based, in part, on the Company's net sales on a constant currency basis and adjusted EBITDA, which will be determined by excluding certain items that are used in calculating these non-GAAP financial measures.

Our competitors may define these non-GAAP financial measures differently, and as a result, our measure of these non-GAAP financial measures may not be directly comparable to those of other companies. Items excluded from these non-GAAP financial measures are significant components in understanding and assessing financial performance. These non-GAAP financial measures are supplemental measures of operating performance that do not represent, and should not be considered in isolation or as an alternative to, or substitute for, the financial statement data presented in our consolidated financial statements as indicators of financial performance. These non-GAAP financial measures have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. We compensate for these limitations by relying primarily on our GAAP results and using these non-GAAP financial measures as supplemental information.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the attached financial tables.

------

**Conference Call Webcast**

Avanos Medical, Inc. will host a conference call today at 9 a.m. ET. To instantly join the conference by phone, use the following link to register close to the start time: https://emportal.ink/46QTVgQ. After registering, the system will call you and automatically connect you to the conference call. Alternatively, you may join the call by dialing 1-646-357-8785 or 1-800-836-8184 in the United States. A simultaneous webcast of the call and presentation will be accessible via the Investors section of the Avanos Medical website, <u>[https://avanos.investorroom.com](#if59c143e9da44f33aa651bf6970ed13d_1)</u>. A replay of the call will be available at noon ET today by calling 1-646-517-4150 or 1-888-660-6345 in the United States and entering passcode 71930#. A webcast of the call will also be archived in the Investors section on the Avanos website.

**About Avanos Medical, Inc.**

Avanos Medical (NYSE: AVNS) is a medical device company focused on delivering clinically superior breakthrough solutions that will help patients get back to the things that matter. Headquartered in Alpharetta, Georgia, Avanos is committed to creating the next generation of innovative healthcare solutions which will address our most important healthcare needs, such as reducing the use of opioids while helping patients move from surgery to recovery. Avanos develops, manufactures and markets its recognized brands in more than 90 countries. For more information, visit <u>www.avanos.com</u> and follow Avanos Medical on Twitter (@AvanosMedical), LinkedIn and Facebook.

**Forward-Looking Statements**

This press release contains information that includes or is based on "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the use of words such as "may", "believe", "will", "expect", "project", "estimate", "anticipate", "plan", or "continue" and similar expressions, among others. Forward-looking statements are based on the current plans and expectations of management and are subject to various risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in such statements. Such factors include, but are not limited to: weakening of economic conditions that could adversely affect the level of demand for our products; pricing pressures generally, including cost-containment measures that could adversely affect the price of or demand for our products; shortages in drugs used in our Surgical Pain and Recovery products or other disruptions in our supply chain; the ongoing conflicts between Russia and Ukraine and in the Middle East; the impact of tariffs imposed to date; new or increased tariffs or other trade restrictions; our ability to successfully execute on or achieve the expected benefits of the transformation initiative or our divestiture, acquisition or merger transactions; inflationary pressures; rising interest rates; financial conditions affecting the banking system and the potential threats to solvency of commercial banks; changes in foreign exchange markets; legislative and regulatory actions; unanticipated issues arising in connection with clinical studies and otherwise that affect U.S. Food and Drug Administration approval of new products; changes in reimbursement levels or reimbursement coverage from third-party payors; product liability claims; the impact of investigative and legal proceedings and compliance risks; the impact of the federal legislation to reform the U.S. healthcare system; changes in financial markets; and changes in the competitive environment. The information contained in this press release speaks only as of the date of this release, and we undertake no obligation to update forward-looking statements, except as may be required by the securities laws. Additional information concerning these and other factors that may impact future results is contained in our filings with the U.S. Securities and Exchange Commission, including our most recent Form 10-K and Quarterly Reports on Form 10-Q.

------

 **AVANOS MEDICAL, INC.**

**CONDENSED CONSOLIDATED INCOME STATEMENTS**

**(unaudited)**

**(in millions, except per share amounts)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Net Sales** | $**180.9** | $179.6 | $**701.2** | $687.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of products sold | **94.9** | 81.6 | **347.3** | 306.5 |
| **Gross Profit** | **86.0** | 98.0 | **353.9** | 381.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development expenses | **6.1** | 5.7 | **23.3** | 26.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling and general expenses | **78.8** | 79.7 | **315.6** | 318.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill and intangibles impairment | **—** | 436.7 | **77.0** | 436.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other (income) expense, net | **(1.4)** | (5.6) | **(0.4)** | (3.9) |
| **Operating Income (Loss)** | **2.5** | (418.5) | **(61.6)** | (396.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | **0.6** | 0.8 | **3.2** | 5.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | **(1.9)** | (2.8) | **(7.8)** | (12.2) |
| **Income (Loss) Before Income Taxes** | **1.2** | (420.5) | **(66.2)** | (403.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax (provision) benefit | **(2.5)** | 23.5 | **(6.7)** | 17.0 |
| **Loss from Continuing Operations** | **(1.3)** | (397.0) | **(72.9)** | (386.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from discontinued operations, net of tax | **—** | (0.3) | **—** | (5.8) |
| **Net Loss** | $**(1.3)** | $(397.3) | $**(72.9)** | $(392.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net | **1.3** | 2.0 | **4.6** | 7.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax benefit (provision) | **2.5** | (23.4) | **6.7** | (18.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | **9.9** | 11.1 | **38.9** | 45.5 |
| **EBITDA** | $**12.4** | $(407.6) | $**(22.7)** | $(358.4) |
| **Loss Per Share** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing operations | $**(0.03)** | $(8.63) | $**(1.57)** | $(8.40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations | $**—** | $(0.01) | $**—** | $(0.13) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic Loss Per Share | $**(0.03)** | $(8.64) | $**(1.57)** | $(8.53) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing operations | $**(0.03)** | $(8.63) | $**(1.57)** | $(8.40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations | $**—** | $(0.01) | $**—** | $(0.13) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted Loss Per Share | $**(0.03)** | $(8.64) | $**(1.57)** | $(8.53) |
| **Common Shares Outstanding** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | **46.4** | 46.0 | **46.3** | 46.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | **46.4** | 46.0 | **46.3** | 46.0 |

---

------

**AVANOS MEDICAL, INC.**

**NON-GAAP RECONCILIATIONS**

**(unaudited)**

**(in millions, except per share amounts)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31, 2025** | **Three Months Ended December 31, 2025** | **Three Months Ended December 31, 2025** | **Three Months Ended December 31, 2025** | **Three Months Ended December 31, 2025** | **Three Months Ended December 31, 2025** |
| | **As reported** | **Acquisition and Integration**<sup>(a)</sup> | **Post-RH Divestiture Restructuring** | **Intangibles Amortization** | **Tax Effects** | **As Adjusted<br>Non-GAAP** |
| **Net Sales** | $**180.9** | $**—** | $**—** | $**—** | $**—** | $**180.9** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of products sold | **94.9** | **—** | **(9.0)** | **(1.6)** | **—** | **84.3** |
| **Gross Profit** | **86.0** | **—** | **9.0** | **1.6** | **—** | **96.6** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Gross Profit Margin* | ***47.5*** *%*** |  |  |  |  | ***53.4*** *%*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development expenses | **6.1** | **—** | **(0.5)** | **—** | **—** | **5.6** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling and general expenses | **78.8** | **(0.6)** | **(4.5)** | **(2.9)** | **—** | **70.8** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*SG&A as a percentage of revenue* | ***43.6*** *%*** |  |  |  |  | ***39.1*** *%*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other (income) expense, net | **(1.4)** | **(0.5)** | **(0.5)** | **—** | **—** | **(2.4)** |
| **Operating Income** | **2.5** | **1.1** | **14.5** | **4.5** | **—** | **22.6** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | **0.6** | **—** | **—** | **—** | **—** | **0.6** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | **(1.9)** | **—** | **—** | **—** | **—** | **(1.9)** |
| **Income Before Income Taxes** | **1.2** | **1.1** | **14.5** | **4.5** | **—** | **21.3** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax provision | **(2.5)** | **—** | **—** | **—** | **(5.4)** | **(7.9)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Effective Tax Rate* | ***(208.3)*** *%*** |  |  |  |  | ***(37.1)*** *%*** |
| **Net (Loss) Income** | $**(1.3)** | $**1.1** | $**14.5** | $**4.5** | $**(5.4)** | $**13.4** |
| Diluted (loss) earnings per share | $**(0.03)** |  |  |  |  | $**0.29** |

---

______________________________

(a)In the year ended December 31, 2025, $0.5 million in "Other (income) expense, net" is related to contingent consideration expense.

------

**AVANOS MEDICAL, INC.**

**NON-GAAP RECONCILIATIONS**

**(unaudited)**

**(in millions, except per share amounts)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31, 2024** | **Three Months Ended December 31, 2024** | **Three Months Ended December 31, 2024** | **Three Months Ended December 31, 2024** | **Three Months Ended December 31, 2024** | **Three Months Ended December 31, 2024** | **Three Months Ended December 31, 2024** | **Three Months Ended December 31, 2024** | **Three Months Ended December 31, 2024** | **Three Months Ended December 31, 2024** |
| | **As reported** | **Acquisition &<br>Integration** | **Restructuring & Transform.** | **Post-RH Divestiture<br>Transition** | **Post-RH Divestiture Restructuring** | **Goodwill & Intangibles Impairment** | **EU MDR Compliance** | **Intangibles Amortization** | **Tax Effects** | **As Adjusted Non-GAAP** |
| **Net Sales** | $179.6 | $— | $— | $— | $— | $— | $— | $— | $— | $179.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of products sold | 81.6 |  | (1.3) | (0.4) | (2.1) |  |  | (3.6) |  | 74.2 |
| **Gross Profit** | 98.0 |  | 1.3 | 0.4 | 2.1 |  |  | 3.6 |  | 105.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Gross Profit Margin* | *54.6 %* |  |  |  |  |  |  |  |  | *58.7 %* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | 5.7 |  |  |  |  |  |  |  |  | 5.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling and general | 79.7 | (0.1) | 0.4 | (0.2) | (0.4) |  | (1.8) | (2.8) |  | 74.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*SG&A as a percentage of revenue* | *44.4 %* |  |  |  |  |  |  |  |  | *41.6 %* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill and intangibles impairment | 436.7 |  |  |  |  | (436.7) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other (income) expense, net | (5.6) |  | 6.9 | (0.3) |  |  |  |  |  | 1.0 |
| **Operating (Loss) Income** | (418.5) | 0.1 | (6.0) | 0.9 | 2.5 | 436.7 | 1.8 | 6.4 |  | 23.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | 0.8 |  |  |  |  |  |  |  |  | 0.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (2.8) |  |  |  |  |  |  |  |  | (2.8) |
| **(Loss) Income Before Income Taxes** | (420.5) | 0.1 | (6.0) | 0.9 | 2.5 | 436.7 | 1.8 | 6.4 |  | 21.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax benefit (provision) | 23.5 |  |  |  |  |  |  |  | (25.4) | (1.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Effective tax rate* | *(5.6) %* |  |  |  |  |  |  |  |  | *(8.7) %* |
| **Net (Loss) Income from Continuing Operations** | (397.0) | 0.1 | (6.0) | 0.9 | 2.5 | 436.7 | 1.8 | 6.4 | (25.4) | 20.0 |
| Loss from Discontinued Operations, net of tax | (0.3) |  |  |  |  |  |  |  |  | (0.3) |
| **Net (Loss) Income** | $(397.3) | $0.1 | $(6.0) | $0.9 | $2.5 | $436.7 | $1.8 | $6.4 | $(25.4) | $19.7 |
| **Diluted (loss) earnings per share:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Continuing Operations | $(8.63) |  |  |  |  |  |  |  |  | $0.43 |
| &nbsp;&nbsp;&nbsp;&nbsp;Discontinued Operations | $(0.01) |  |  |  |  |  |  |  |  | $(0.01) |
| Diluted (loss) earnings per share | $(8.64) |  |  |  |  |  |  |  |  | $0.42 |

---

------

**AVANOS MEDICAL, INC.**

**NON-GAAP RECONCILIATIONS**

**(unaudited)**

**(in millions, except per share amounts)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** |
| | **As reported** | **Acquisition and Integration** | **Post-RH Divestiture<br>Restructuring** | **Goodwill and Intangibles Impairment** | **Litigation and Legal** | **Intangibles Amortization** | **Tax effects** | **As Adjusted Non-GAAP** |
| **Net Sales** | $**701.2** | $**—** | $**—** | $**—** | $**—** | $**—** | $**—** | $**701.2** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of products sold | **347.3** | **—** | **(19.5)** | **—** | **—** | **(9.5)** | **—** | **318.3** |
| **Gross Profit** | **353.9** | **—** | **19.5** | **—** | **—** | **9.5** | **—** | **382.9** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Gross Profit Margin* | ***50.5*** *%*** |  |  |  |  |  |  | ***54.6*** *%*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development expenses | **23.3** | **—** | **(0.5)** | **—** | **—** | **—** | **—** | **22.8** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling and general expenses | **315.6** | **(1.0)** | **(10.2)** | **—** | **—** | **(9.7)** | **—** | **294.7** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*SG&A as a percentage of Net Sales* | ***45.0*** *%*** |  |  |  |  |  |  | ***42.0*** *%*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill and intangibles impairment | **77.0** | **—** | **—** | **(77.0)** | **—** | **—** | **—** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other (income) expense, net | **(0.4)** | **(0.5)** | **(2.2)** | **—** | **1.4** | **—** | **—** | **(1.7)** |
| **Operating (Loss) Income** | **(61.6)** | **1.5** | **32.4** | **77.0** | **(1.4)** | **19.2** | **—** | **67.1** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | **3.2** | **—** | **—** | **—** | **—** | **—** | **—** | **3.2** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | **(7.8)** | **—** | **—** | **—** | **—** | **—** | **—** | **(7.8)** |
| **(Loss) Income Before Income Taxes** | **(66.2)** | **1.5** | **32.4** | **77.0** | **(1.4)** | **19.2** | **—** | **62.5** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax provision | **(6.7)** | **—** | **—** | **—** | **—** | **—** | **(12.4)** | **(19.1)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Effective tax rate* | **10.1%** |  |  |  |  |  |  | **(30.6)%** |
| **Net (Loss) Income** | $**(72.9)** | $**1.5** | $**32.4** | $**77.0** | $**(1.4)** | $**19.2** | $**(12.4)** | $**43.4** |
| Diluted (loss) earnings per share | $**(1.57)** |  |  |  |  |  |  | $**0.94** |

---

------

**AVANOS MEDICAL, INC.**

**NON-GAAP RECONCILIATIONS**

**(unaudited)**

**(in millions, except per share amounts)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| | **As reported** | **Acquisition and Integration** | **Restructuring and Transform.** | **Post-RH Divestiture Transition** | **Post-RH Divestiture Restructuring** | **Goodwill and intangibles impairment** | **EU MDR compliance** | **Intangibles amortization** | **Tax effects of adjusting items** | **As Adjusted Non-GAAP** |
| **Net Sales** | $687.8 | $— | $— | $— | $— | $— | $— | $— | $— | $687.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of products sold | 306.5 | (0.1) | (3.0) | (1.8) | (5.1) |  | (0.2) | (14.3) |  | 282.0 |
| **Gross Profit** | 381.3 | 0.1 | 3.0 | 1.8 | 5.1 |  | 0.2 | 14.3 |  | 405.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Gross profit margin* | *55.4 %* |  |  |  |  |  |  |  |  | *59.0 %* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development expenses | 26.2 | (0.1) | 0.2 |  |  |  |  |  |  | 26.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling and general expenses | 318.5 | (1.4) | (3.0) | (0.8) | (3.8) |  | (6.0) | (10.9) |  | 292.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*SG&A as a percentage of net sales* | *46.3 %* |  |  |  |  |  |  |  |  | *42.5 %* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill and intangibles impairment | 436.7 |  |  |  |  | (436.7) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other (income) expense, net | (3.9) | (2.6) | 6.6 | (0.5) |  |  |  |  |  | (0.4) |
| **Operating (Loss) Income** | (396.2) | 4.2 | (0.8) | 3.1 | 8.9 | 436.7 | 6.2 | 25.2 |  | 87.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | 5.1 |  |  |  |  |  |  |  |  | 5.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (12.2) |  |  |  |  |  |  |  |  | (12.2) |
| **(Loss) Income Before Income Taxes** | (403.3) | 4.2 | (0.8) | 3.1 | 8.9 | 436.7 | 6.2 | 25.2 |  | 80.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax benefit (provision) | 17.0 |  |  |  |  |  |  |  | (34.6) | (17.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Effective tax rate* | (4.2)% |  |  |  |  |  |  |  |  | (21.9)% |
| **Net (Loss) Income from Continuing Operations** | (386.3) | 4.2 | (0.8) | 3.1 | 8.9 | 436.7 | 6.2 | 25.2 | (34.6) | 62.6 |
| Loss from Discontinued Operations, net of tax | (5.8) | **—** | **—** | **—** | **—** | **—** | **—** | **—** |  | (5.8) |
| **Net (Loss) Income** | $(392.1) | $4.2 | $(0.8) | $3.1 | $8.9 | $436.7 | $6.2 | $25.2 | $(34.6) | $56.8 |
| **Diluted (loss) earnings per share:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Continuing Operations | $(8.40) |  |  |  |  |  |  |  |  | $1.35 |
| &nbsp;&nbsp;&nbsp;&nbsp;Discontinued Operations | $(0.13) |  |  |  |  |  |  |  |  | $(0.13) |
| Diluted (loss) earnings per share | $(8.53) |  |  |  |  |  |  |  |  | $1.22 |

---

------

**AVANOS MEDICAL, INC.**

**NON-GAAP RECONCILIATIONS**

**(unaudited)** 

**(in millions, except per share amounts)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **EBITDA** | **EBITDA** | **EBITDA** | **EBITDA** |
| | **Three Months Ended December 31, 2025** | **Three Months Ended December 31, 2024** | **Three Months Ended December 31, 2024** | **Three Months Ended December 31, 2024** |
| | **Three Months Ended December 31, 2025** | **Continuing<br>Operations** | **Discontinued Operations** | **Total** |
| Net loss | $**(1.3)** | $(397.0) | $(0.3) | $(397.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net | **1.3** | 2.0 |  | 2.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax benefit (provision) | **2.5** | (23.5) | 0.1 | (23.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | **5.4** | 4.7 |  | 4.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | **4.5** | 6.4 |  | 6.4 |
| EBITDA | **12.4** | (407.4) | (0.2) | (407.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition and integration-related charges | **1.1** | 0.1 |  | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring and transformation charges | **—** | (6.0) |  | (6.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Post-RH Divestiture transition charges | **—** | 0.9 |  | 0.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Post-RH Divestiture restructuring | **14.5** | 2.5 |  | 2.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill and intangibles impairment | **—** | 436.7 |  | 436.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;EU MDR Compliance | **—** | 1.8 |  | 1.8 |
| Adjusted EBITDA | $**28.0** | $28.6 | $(0.2) | $28.4 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **EBITDA** | **EBITDA** | **EBITDA** | **EBITDA** |
| | **Year Ended<br>December 31, 2025** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| | **Year Ended<br>December 31, 2025** | **Continuing<br>Operations** | **Disc. Operations** | **Total** |
| Net loss income | $**(72.9)** | $(386.3) | $(5.8) | $(392.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net | **4.6** | 7.1 |  | 7.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax benefit (provision) | **6.7** | (17.0) | (1.9) | (18.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | **19.7** | 20.3 |  | 20.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | **19.2** | 25.2 |  | 25.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EBITDA | **(22.7)** | (350.7) | (7.7) | (358.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition and integration-related charges | **1.5** | 4.2 |  | 4.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring and transformation charges | **—** | (0.8) |  | (0.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Post-RH Divestiture transition charges | **—** | 3.1 |  | 3.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Post-RH Divestiture restructuring | **32.4** | 8.9 |  | 8.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill and intangibles impairment | **77.0** | 436.7 |  | 436.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;EU MDR Compliance | **—** | 6.2 |  | 6.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Litigation and legal | **(1.4)** |  |  |  |
| Adjusted EBITDA | $**86.8** | $107.6 | $(7.7) | $99.9 |

---

------

**AVANOS MEDICAL, INC.**

**NON-GAAP RECONCILIATIONS**

**(unaudited)** 

**(in millions, except per share amounts)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Free Cash Flow** | **Free Cash Flow** | **Free Cash Flow** | **Free Cash Flow** |
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** | **2025** | **2024** |
| Cash provided by operating activities | $**28.2** | $57.9 | $**74.7** | $100.7 |
| Capital expenditures | **(6.9)** | (4.8) | **(31.6)** | (17.8) |
| Free Cash Flow | $**21.3** | $53.1 | $**43.1** | $82.9 |

---

**2026 OUTLOOK**

---

| | | | |
|:---|:---|:---|:---|
| | **Estimated Range** | **Estimated Range** | **Estimated Range** |
| Diluted earnings per share (GAAP) | $0.48 | to | $0.73 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangibles amortization | 0.28 | to | 0.26 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring and transformation charges | 0.08 | to | 0.06 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 0.06 | to | 0.05 |
| Adjusted diluted earnings per share (non-GAAP) | $0.90 | to | $1.10 |

---

------

**AVANOS MEDICAL, INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(unaudited)**

**(in millions)**

---

| | | |
|:---|:---|:---|
| | **As of December 31,** | **As of December 31,** |
| | **2025** | **2024** |
| **ASSETS** |  |  |
| **Current Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $**89.8** | $107.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net of allowances | **103.8** | 132.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | **148.0** | 138.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | **13.8** | 14.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Current Assets** | **355.4** | 393.4 |
| **Property, Plant and Equipment, net** | **113.4** | 110.7 |
| **Operating Lease Right of Use Assets** | **27.6** | 34.1 |
| **Goodwill** | **394.9** | 455.6 |
| **Other Intangible Assets, net** | **117.8** | 112.3 |
| **Deferred Tax Assets** | **33.1** | 24.9 |
| **Other Assets** | **31.5** | 23.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL ASSETS** | $**1073.7** | $1154.2 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| **Current Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term debt | $**10.2** | $9.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of operating lease obligation | **8.2** | 10.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade accounts payable | **55.5** | 54.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | **91.3** | 91.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Current Liabilities** | **165.2** | 165.9 |
| **Long-Term Debt** | **90.3** | 125.3 |
| **Operating Lease Obligation** | **20.4** | 24.6 |
| **Deferred Tax Liabilities** | **6.1** | 5.5 |
| **Other Long-Term Liabilities** | **13.5** | 4.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL LIABILITIES** | **295.5** | 325.7 |
| **Stockholders' Equity** | **778.2** | 828.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY** | $**1073.7** | $1154.2 |

---

------

**AVANOS MEDICAL, INC.**

**CONDENSED CONSOLIDATED CASH FLOW STATEMENTS**

**(unaudited)**

**(in millions)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Operating Activities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss | $**(1.3)** | $(397.3) | $**(72.9)** | $(392.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | **9.9** | 11.1 | **38.9** | 45.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill and intangibles impairment | **—** | 436.7 | **77.0** | 436.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss on asset dispositions | **3.6** | 0.8 | **9.3** | 1.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities | **24.5** | 45.0 | **20.2** | 35.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes and other | **(8.5)** | (38.4) | **2.2** | (25.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Cash Provided by Operating Activities** | **28.2** | 57.9 | **74.7** | 100.7 |
| **Investing Activities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | **(6.9)** | (4.8) | **(31.6)** | (17.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of assets | **—** |  | **4.0** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from RH divestiture post-closing settlement | **—** |  | **—** | 2.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of assets and businesses, net of cash acquired | **0.3** |  | **(28.0)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in non-affiliates | **(0.2)** | (2.8) | **(5.0)** | (11.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Cash Used in Investing Activities** | **(6.8)** | (7.6) | **(60.6)** | (27.5) |
| **Financing Activities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Secured debt repayments | **(2.4)** | (2.3) | **(9.4)** | (8.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revolving credit facility proceeds | **—** |  | **—** | 20.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revolving credit facility repayments | **—** | (25.0) | **(25.0)** | (45.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of treasury stock | **(0.3)** | (0.1) | **(3.3)** | (12.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the exercise of stock options | **—** |  | **0.7** | 1.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of contingent consideration liabilities | **—** |  | **—** | (3.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Cash Used in Financing Activities** | **(2.7)** | (27.4) | **(37.0)** | (49.1) |
| **Effect of Exchange Rate Changes on Cash and Cash Equivalents** | **0.6** | (4.2) | **5.0** | (4.1) |
| **Increase (Decrease) in Cash and Cash Equivalents** | **19.3** | 18.7 | **(17.9)** | 20.0 |
| **Cash and Cash Equivalents - Beginning of Period** | **70.5** | 89.0 | **107.7** | 87.7 |
| **Cash and Cash Equivalents - End of Period** | $**89.8** | $107.7 | $**89.8** | $107.7 |

---

------

**AVANOS MEDICAL, INC.**

**SELECTED BUSINESS SEGMENT DATA**

**(unaudited)**

**(in millions)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | | **Year Ended December 31,** | **Year Ended December 31,** | |
| | **2025** | **2024** |<br>**Change** | **2025** | **2024** |<br>**Change** |
| Specialty Nutrition Systems: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Enteral feeding | $**83.0** | $75 | 10.7% | $**314.7** | $289.7 | 8.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Neonate solutions | **32.1** | 30.9 | 3.9% | **118.2** | 106.7 | 10.8% |
| Total Specialty Nutrition Systems | **115.1** | 105.9 | 8.7% | **432.9** | 396.4 | 9.2% |
| Pain Management and Recovery: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Surgical pain and recovery | **24.7** | 26.7 | (7.5)% | **98.8** | 108.0 | (8.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Radiofrequency ablation | **36.9** | 34.1 | 8.2% | **139.0** | 126.2 | 10.1% |
| Total Pain Management and Recovery | **61.6** | 60.8 | 1.3% | **237.8** | 234.2 | 1.5% |
| Corporate and Other | **4.2** | 12.9 | (67.4)% | **30.5** | 57.2 | (46.7)% |
| **Total Net Sales** | $**180.9** | $179.6 | 0.7% | $**701.2** | $687.8 | 1.9% |
| **Operating Income (Loss)** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Specialty Nutrition Systems | **20.5** | 25.0 | (18.0)% | **82.6** | 80.8 | 2.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Pain Management and Recovery | **5.2** | 3.9 | 33.3% | **9.2** | 2.7 | N.M. |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate and Other<sup>(a)</sup> | **(23.2)** | (447.4) | N.M. | **(153.4)** | (479.7) | N.M. |
| **Total Operating Income (Loss)** | $**2.5** | $(418.5) | N.M. | $**(61.6)** | $(396.2) | N.M. |
| **Net Sales - percentage change - QTD** | **Total** | **Volume**<sup>(a)</sup> | **Pricing/Mix** | **Currency** | **Other**<sup>(b)</sup> |  |
| Specialty Nutrition Systems | 8.7% | 7.9% | 0.5% | 0.8% | (0.5)% |  |
| Pain Management and Recovery | 1.3% | 1.0% | 0.2% | 0.2% | (0.1)% |  |
| Corporate and Other | (67.4)% | 5.4% | —% | —% | (72.8)% |  |
| **Net Sales - percentage change - YTD** | **Total** | **Volume**<sup>(a)</sup> | **Pricing/Mix** | **Currency** | **Other**<sup>(b)</sup> |  |
| Specialty Nutrition Systems | 9.2% | 9.0% | 0.4% | 0.5% | (0.7)% |  |
| Pain Management and Recovery | 1.5% | 1.9% | 0.3% | 0.2% | (0.9)% |  |
| Corporate and Other | (46.7)% | (7.0)% | (9.5)% | —% | (30.2)% |  |

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______________________________

N.M.: Not Meaningful

(a)Corporate and Other operating loss for the year ended December 31, 2025 includes $77.0 million of goodwill impairment associated with our PM&R segment. Corporate and Other operating loss for the three months and year ended December 31, 2024 includes $436.7 million of goodwill and intangibles impairment.

(b)Other includes the effects of our withdrawal from certain revenue streams that did not meet our return criteria and rounding.

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