Revenue growth remains inconsistent, fluctuating between a 4.6% contraction and an 8.8% expansion, while gross margins have compressed from 57.1% in 2024Q1 to 51.7% in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 715.9M | 701.2M | 687.8M | 673.3M | 684.1M | 744.6M | 714.8M | 697.6M | 652.3M | 611.6M | 566.2M | 1.57B | 1.67B | 1.68B | 1.68B |
| Revenue Growth % | 3.87% | 1.95% | 2.15% | -1.58% | -8.13% | 4.17% | 2.47% | 6.94% | 6.65% | 8.02% | -64.04% | -5.84% | -0.32% | -0.39% | - |
| Cost of Goods Sold | 362.5M | 352.2M | 306.5M | 293.6M | 289.9M | 364.7M | 324.2M | 295.4M | 261.4M | 274.7M | 269M | 1.04B | 1.06B | 1.07B | 1.08B |
| COGS % of Revenue | - | 50.23% | 44.56% | 43.61% | 42.38% | 48.98% | 45.36% | 42.35% | 40.07% | 44.91% | 47.51% | 66.23% | 63.6% | 63.51% | 64.22% |
| Gross Profit | 353.4M | 349M | 381.3M | 379.7M | 394.2M | 379.9M | 390.6M | 402.2M | 390.9M | 336.9M | 297.2M | 531.6M | 608.6M | 612.2M | 602.5M |
| Gross Margin % | 49.36% | 49.77% | 55.44% | 56.39% | 57.62% | 51.02% | 54.64% | 57.65% | 59.93% | 55.08% | 52.49% | 33.77% | 36.4% | 36.49% | 35.78% |
| Gross Profit Growth % | - | -8.47% | 0.42% | -3.68% | 3.76% | -2.74% | -2.88% | 2.89% | 16.03% | 13.36% | -44.09% | -12.65% | -0.59% | 1.61% | - |
| Operating Expenses | 333.3M | 410.6M | 341.3M | 314.7M | 352.3M | 293.1M | 319.7M | 407.6M | 356M | 352.9M | 366.6M | 376.8M | 297.1M | 389.3M | 376M |
| OpEx % of Revenue | - | 58.56% | 49.62% | 46.74% | 51.5% | 39.36% | 44.73% | 58.43% | 54.58% | 57.7% | 64.75% | 23.93% | 17.77% | 23.21% | 22.33% |
| Selling, General & Admin | 218.9M | 218.3M | 315.1M | 287.5M | 323.1M | 260.8M | 284.8M | 369.9M | 314.2M | 314.7M | 328.2M | 344.5M | 263.5M | 351.4M | 343M |
| SG&A % of Revenue | - | 31.13% | 45.81% | 42.7% | 47.23% | 35.03% | 39.84% | 53.02% | 48.17% | 51.46% | 57.97% | 21.88% | 15.76% | 20.95% | 20.37% |
| Research & Development | 22.9M | 23.1M | 26.2M | 27.2M | 30.6M | 32.3M | 34.9M | 37.7M | 41.8M | 38.2M | 38.4M | 32.3M | 33.6M | 37.9M | 33M |
| R&D % of Revenue | - | 3.29% | 3.81% | 4.04% | 4.47% | 4.34% | 4.88% | 5.4% | 6.41% | 6.25% | 6.78% | 2.05% | 2.01% | 2.26% | 1.96% |
| Other Operating Expenses | 1000K | 169.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -60M | -61.6M | 40M | 65M | 41.9M | 86.8M | 70.9M | -5.4M | 34.9M | -16M | -69.4M | 154.8M | 311.5M | 222.9M | 226.5M |
| Operating Margin % | -8.38% | -8.78% | 5.82% | 9.65% | 6.12% | 11.66% | 9.92% | -0.77% | 5.35% | -2.62% | -12.26% | 9.83% | 18.63% | 13.29% | 13.45% |
| Operating Income Growth % | - | -254% | -38.46% | 55.13% | -51.73% | 22.43% | 1412.96% | -115.47% | 318.13% | 76.95% | -144.83% | -50.3% | 39.75% | -1.59% | - |
| EBITDA | -20.5M | -32.6M | 85.5M | 108.5M | 83M | 125.1M | 113.8M | 31.5M | 68.4M | 24M | -28.4M | 220.8M | 396.5M | 292.1M | 284.1M |
| EBITDA Margin % | -2.86% | -4.65% | 12.43% | 16.11% | 12.13% | 16.8% | 15.92% | 4.52% | 10.49% | 3.92% | -5.02% | 14.02% | 23.71% | 17.41% | 16.87% |
| EBITDA Growth % | -121.29% | -138.13% | -21.2% | 30.72% | -33.65% | 9.93% | 261.27% | -53.95% | 185% | 184.51% | -112.86% | -44.31% | 35.74% | 2.82% | - |
| D&A (Non-Cash Add-back) | 39.5M | 29M | 45.5M | 43.5M | 41.1M | 38.3M | 42.9M | 36.9M | 33.5M | 40M | 41M | 66M | 85M | 69.2M | 57.6M |
| EBIT | -70.2M | -62.2M | -391.1M | 7.1M | 36.7M | 10.6M | -44.9M | -49M | 3.5M | -40.6M | -106.5M | -377.4M | 97.2M | 227.9M | 230.6M |
| Net Interest Income | -4M | -800K | -7.1M | -12.1M | -8.8M | -3.1M | -14.4M | -8.3M | -18.6M | -29.1M | -32.1M | -32.8M | -3.1M | 2.5M | 1.8M |
| Interest Income | 1.9M | 3.2M | 5.1M | 2.9M | 1.2M | 200K | 1.2M | 6.7M | 7.8M | 2.5M | 600K | 300K | 2.9M | 2.6M | 2.6M |
| Interest Expense | 4.2M | 4M | 12.2M | 15M | 10M | 3.3M | 15.6M | 15M | 26.4M | 31.6M | 32.7M | 33.1M | 6M | 100K | 800K |
| Other Income/Expense | -8.3M | -4.6M | -443.3M | -72.9M | -15.2M | -79.5M | -131.4M | -58.6M | -53M | -56.2M | -69.8M | -565.3M | -220.3M | 4.9M | 3.3M |
| Pretax Income | -68.3M | -66.2M | -403.3M | -7.9M | 26.7M | 7.3M | -60.5M | -64M | -18.1M | -72.2M | -139.2M | -410.5M | 91.2M | 227.8M | 229.8M |
| Pretax Margin % | -9.54% | -9.44% | -58.64% | -1.17% | 3.9% | 0.98% | -8.46% | -9.17% | -2.77% | -11.81% | -24.59% | -26.07% | 5.45% | 13.58% | 13.65% |
| Income Tax | -3.9M | 1.7M | -17M | 2M | 5.2M | 1M | -33.3M | -18.1M | -9.6M | -40.1M | -55.9M | 15.8M | 64.1M | 73.2M | 77.2M |
| Effective Tax Rate % | 5.71% | -2.57% | 4.22% | -25.32% | 19.48% | 13.7% | 55.04% | 28.28% | 53.04% | 55.54% | 40.16% | -3.85% | 70.29% | 32.13% | 33.59% |
| Net Income | -69.4M | -67.9M | -392.1M | -61.8M | 50.5M | 6.3M | -27.2M | -45.9M | 57.5M | 79.3M | 39.8M | -426.3M | 27.1M | 154.6M | 152.6M |
| Net Margin % | -9.69% | -9.68% | -57.01% | -9.18% | 7.38% | 0.85% | -3.81% | -6.58% | 8.82% | 12.97% | 7.03% | -27.08% | 1.62% | 9.22% | 9.06% |
| Net Income Growth % | 81.96% | 82.68% | -534.47% | -222.38% | 701.59% | 123.16% | 40.74% | -179.83% | -27.49% | 99.25% | 109.34% | -1673.06% | -82.47% | 1.31% | - |
| Net Income (Continuing) | -69.4M | -67.9M | -386.3M | -9.9M | 21.5M | 6.3M | -27.2M | -45.9M | -8.5M | -32.1M | -83.3M | -426.3M | 27.1M | 154.6M | 152.6M |
| Discontinued Operations | 0 | 0 | -5.8M | -51.9M | 29M | 0 | 0 | 0 | 66M | 111.4M | 123.1M | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.50 | -1.46 | -8.53 | -1.33 | 1.07 | 0.13 | -0.57 | -0.96 | 1.22 | 1.69 | 0.85 | -9.15 | 0.58 | 3.32 | 3.28 |
| EPS Growth % | 82.07% | 82.88% | -541.35% | -224.3% | 723.08% | 122.81% | 40.63% | -178.69% | -27.81% | 98.82% | 109.29% | -1677.59% | -82.53% | 1.22% | - |
| EPS (Basic) | - | -1.46 | -8.53 | -1.33 | 1.08 | 0.13 | -0.57 | -0.96 | 1.22 | 1.69 | 0.85 | -9.15 | 0.58 | 3.32 | 3.28 |
| Diluted Shares Outstanding | 46.4M | 46.4M | 46M | 46.6M | 47.3M | 48.6M | 47.8M | 47.6M | 47.2M | 46.8M | 47M | 46.59M | 46.54M | 46.51M | 46.51M |
| Basic Shares Outstanding | 46.4M | 46.4M | 46M | 46.6M | 46.9M | 48.1M | 47.8M | 47.6M | 47.2M | 46.52M | 46.6M | 46.59M | 46.54M | 46.51M | 46.51M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | 2509.23% | - | - |
Persistent operating margin volatility
According to recent quarterly filings, Avanos Medical's revenue growth has remained inconsistent, fluctuating between a 4.6% contraction and an 8.8% expansion, suggesting that the company's core product lines are struggling to achieve a sustained, predictable upward trajectory in a competitive medical device landscape.
The revenue profile appears heavily reliant on the essential nature of its Chronic Care segment, yet the lack of consistent growth suggests that the Pain Management segment is failing to capture significant market share. Investors should monitor whether the recent 8.8% growth in 2026Q1 represents a durable shift or merely a temporary recovery from previous periods of stagnation.
As reported in financial statements, the company's gross margin has experienced notable compression, falling from a peak of 57.1% in 2024Q1 to 51.7% in 2026Q1, which indicates that rising input costs or pricing competition may be eroding the company's historical competitive advantage.
The decline in gross margin suggests that the specialized clinical solutions, such as the Mic-Key feeding tubes, may be facing increased pricing pressure or higher manufacturing costs that the company cannot fully pass on to customers. This trend warrants further investigation into whether the company's product mix is shifting toward lower-margin offerings or if supply chain inefficiencies are becoming structural.
Based on the provided income statement data, Avanos has struggled to demonstrate meaningful operating leverage, as evidenced by the erratic operating margin which swung from a 12.8% high in 2023Q4 to a significant -49.4% loss in 2025Q4, highlighting a failure to scale SG&A expenses efficiently.
The inability to maintain positive operating income despite revenue growth suggests that the company's cost structure is burdened by excessive overhead or ineffective sales force deployment. This lack of scalability implies that the current transformation efforts have yet to yield the intended operational efficiencies, leaving the bottom line highly vulnerable to revenue fluctuations.
Analysis of the company's historical performance reveals that net income is frequently distorted by large, non-recurring charges, as seen in the massive $397.3 million loss in 2024Q4, which complicates the assessment of the firm's true underlying profitability and operational health.
The frequent appearance of significant bottom-line swings suggests that investors should focus on adjusted metrics rather than GAAP net income to gauge performance. The recurring nature of these charges implies that the company's restructuring process is either more protracted than anticipated or that the business model is inherently prone to significant non-operating adjustments.
Data from the income statement suggests that the company's current business model may be fundamentally misaligned with its cost structure, as the persistent inability to generate consistent operating income despite a 50% gross margin profile raises questions about the long-term viability of its current strategy.
Short-sellers may focus on the fact that the company has failed to achieve sustained profitability despite its niche market position in enteral feeding. This suggests that the 'standard of care' moat may not be sufficient to offset the high costs of maintaining a specialized sales force, potentially necessitating further divestitures or a more aggressive consolidation of the business.
Quick answers to the most common questions about buying AVNS stock.
For fiscal year 2025, Avanos Medical, Inc. (AVNS) reported total revenue of $701.2M. This represents a 58.4% decline compared to $1.68B in 2012.
Avanos Medical, Inc. (AVNS) reported a net loss of $67.9M for the fiscal year ending 2025.
Avanos Medical, Inc. (AVNS) reported an operating income of $-61.6M, resulting in an operating profit margin of -8.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Avanos Medical, Inc. (AVNS) generated $349.0M in gross profit for the year, representing a gross profit margin of 49.8%. This demonstrates the company's core pricing power and production efficiency.