Revenue growth is nearly flat at 0.1% in 2026Q2, but gross margin recovered to 57.5% from a 46.7% trough in 2025Q3, while operating margin of 10.6% remains below the 20.7% peak in 2024Q3, reflecting persistent earnings volatility.
CONMED Corporation (CNMD) annual income statement — 30-year revenue, gross profit & net income history
| 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 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 1.37B | 1.37B | 1.31B | 1.24B | 1.05B | 1.01B | 862.46M | 955.1M | 859.63M | 796.39M | 763.52M | 719.17M | 734.47M | 756.75M | 767.14M | 725.08M | 713.72M | 694.74M | 742.18M | 694.29M | 646.81M | 617.3M | 558.39M | 497.13M | 453.06M | 428.72M | 392.23M | 372.6M | 336.4M | 138.3M | 125.6M |
| Revenue Growth % | 3.58% | 5.16% | 5% | 19.06% | 3.45% | 17.18% | -9.7% | 11.11% | 7.94% | 4.31% | 6.17% | -2.08% | -2.95% | -1.35% | 5.8% | 1.59% | 2.73% | -6.39% | 6.9% | 7.34% | 4.78% | 10.55% | 12.32% | 9.73% | 5.68% | 9.3% | 5.27% | 10.76% | 143.24% | 10.11% | 26.1% |
| Cost of Goods Sold | 620.4M | 649.12M | 573.98M | 568.5M | 474.23M | 442.6M | 402.16M | 430.38M | 390.52M | 365.35M | 355.19M | 337.47M | 336M | 350.29M | 361.3M | 350.14M | 348.34M | 357.41M | 359.8M | 345.16M | 333.97M | 304.28M | 271.5M | 237.43M | 215.89M | 204.37M | 158.74M | 152.8M | 146M | 67.2M | 59M |
| COGS % of Revenue | - | 47.23% | 43.92% | 45.67% | 45.36% | 43.79% | 46.63% | 45.06% | 45.43% | 45.88% | 46.52% | 46.92% | 45.75% | 46.29% | 47.1% | 48.29% | 48.81% | 51.44% | 48.48% | 49.71% | 51.63% | 49.29% | 48.62% | 47.76% | 47.65% | 47.67% | 40.47% | 41.01% | 43.4% | 48.59% | 46.97% |
| Gross Profit | 752.19M | 725.38M | 733.03M | 676.25M | 571.25M | 568.04M | 460.3M | 524.72M | 469.11M | 431.04M | 408.33M | 381.7M | 398.47M | 406.47M | 405.84M | 374.93M | 365.38M | 337.33M | 382.38M | 349.13M | 312.85M | 313.02M | 286.89M | 259.7M | 237.17M | 224.35M | 233.49M | 219.8M | 190.4M | 71.1M | 66.6M |
| Gross Margin % | 54.8% | 52.77% | 56.08% | 54.33% | 54.64% | 56.21% | 53.37% | 54.94% | 54.57% | 54.12% | 53.48% | 53.08% | 54.25% | 53.71% | 52.9% | 51.71% | 51.19% | 48.56% | 51.52% | 50.29% | 48.37% | 50.71% | 51.38% | 52.24% | 52.35% | 52.33% | 59.53% | 58.99% | 56.6% | 51.41% | 53.03% |
| Gross Profit Growth % | - | -1.04% | 8.4% | 18.38% | 0.56% | 23.41% | -12.28% | 11.85% | 8.83% | 5.56% | 6.98% | -4.21% | -1.97% | 0.15% | 8.24% | 2.61% | 8.32% | -11.78% | 9.53% | 11.6% | -0.06% | 9.11% | 10.47% | 9.5% | 5.72% | -3.92% | 6.23% | 15.44% | 167.79% | 6.76% | 27.59% |
| Operating Expenses | 604.1M | 584.24M | 532.71M | 555.64M | 501.19M | 458.32M | 414.29M | 445.6M | 397.81M | 384.11M | 370.65M | 330.53M | 345.68M | 349.96M | 340.63M | 306.36M | 308.29M | 309.06M | 307.12M | 266.31M | 317.45M | 249.27M | 223.73M | 171.84M | 157.82M | 155.39M | 169.03M | 145M | 129.2M | 45.3M | 41M |
| OpEx % of Revenue | - | 42.51% | 40.76% | 44.64% | 47.94% | 45.35% | 48.04% | 46.66% | 46.28% | 48.23% | 48.55% | 45.96% | 47.07% | 46.24% | 44.4% | 42.25% | 43.19% | 44.49% | 41.38% | 38.36% | 49.08% | 40.38% | 40.07% | 34.57% | 34.83% | 36.24% | 43.09% | 38.92% | 38.41% | 32.75% | 32.64% |
| Selling, General & Admin | 543.47M | 528.36M | 478.28M | 503.04M | 454.04M | 414.75M | 373.82M | 400.14M | 355.62M | 351.8M | 338.4M | 303.09M | 293.94M | 310.73M | 302.47M | 277.71M | 276.46M | 266.31M | 272.44M | 240.54M | 234.83M | 216.69M | 183.18M | 157.45M | 141.74M | 140.56M | 124.67M | 107.2M | 93.6M | 35.3M | 31.6M |
| SG&A % of Revenue | - | 38.44% | 36.59% | 40.41% | 43.43% | 41.04% | 43.34% | 41.9% | 41.37% | 44.17% | 44.32% | 42.14% | 40.02% | 41.06% | 39.43% | 38.3% | 38.74% | 38.33% | 36.71% | 34.65% | 36.31% | 35.1% | 32.81% | 31.67% | 31.28% | 32.79% | 31.79% | 28.77% | 27.82% | 25.52% | 25.16% |
| Research & Development | 60.63M | 55.88M | 54.43M | 52.6M | 47.15M | 43.56M | 40.47M | 45.46M | 42.19M | 32.31M | 32.25M | 27.44M | 27.78M | 25.83M | 28.21M | 28.65M | 29.65M | 31.84M | 33.11M | 30.4M | 30.71M | 25.47M | 20.2M | 17.31M | 16.09M | 14.83M | 14.87M | 12.1M | 12M | 3M | 3M |
| R&D % of Revenue | - | 4.07% | 4.16% | 4.23% | 4.51% | 4.31% | 4.69% | 4.76% | 4.91% | 4.06% | 4.22% | 3.82% | 3.78% | 3.41% | 3.68% | 3.95% | 4.15% | 4.58% | 4.46% | 4.38% | 4.75% | 4.13% | 3.62% | 3.48% | 3.55% | 3.46% | 3.79% | 3.25% | 3.57% | 2.17% | 2.39% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.94M | 0 | 7.32M | 8.75M | 7.2M | 0 | 2.18M | 10.92M | 1.58M | -4.63M | 51.9M | 7.12M | 20.34M | -2.92M | 0 | 0 | 29.49M | 25.7M | 23.6M | 7M | 6.4M |
| Operating Income | 148.09M | 141.13M | 200.33M | 120.6M | 70.05M | 109.72M | 46.01M | 79.11M | 71.31M | 46.94M | 37.68M | 51.17M | 52.79M | 56.51M | 65.21M | 8.27M | 57.09M | 28.27M | 75.26M | 80.99M | -4.6M | 63.75M | 63.16M | 79.95M | 79.35M | 68.96M | 64.46M | 74.8M | 61.2M | 25.8M | 25.6M |
| Operating Margin % | 10.79% | 10.27% | 15.33% | 9.69% | 6.7% | 10.86% | 5.33% | 8.28% | 8.29% | 5.89% | 4.93% | 7.12% | 7.19% | 7.47% | 8.5% | 1.14% | 8% | 4.07% | 10.14% | 11.67% | -0.71% | 10.33% | 11.31% | 16.08% | 17.51% | 16.08% | 16.44% | 20.08% | 18.19% | 18.66% | 20.38% |
| Operating Income Growth % | - | -29.55% | 66.1% | 72.16% | -36.15% | 138.46% | -41.84% | 10.95% | 51.92% | 24.58% | -26.38% | -3.05% | -6.59% | -13.34% | 688.13% | -85.51% | 101.96% | -62.44% | -7.08% | 1859.53% | -107.22% | 0.93% | -21% | 0.76% | 15.07% | 6.97% | -13.82% | 22.22% | 137.21% | 0.78% | 36.17% |
| EBITDA | 214.94M | 193.47M | 272.18M | 192.48M | 119.81M | 180.46M | 118.64M | 151.44M | 133.11M | 105.48M | 92.98M | 95.05M | 98.52M | 104.38M | 111.83M | 50.96M | 98.9M | 69.55M | 107.59M | 112.53M | 25.25M | 94.53M | 90.03M | 104.81M | 101.72M | 99.11M | 93.95M | 100.5M | 84.8M | 32.8M | 32M |
| EBITDA Margin % | 15.66% | 14.08% | 20.82% | 15.46% | 11.46% | 17.86% | 13.76% | 15.86% | 15.48% | 13.25% | 12.18% | 13.22% | 13.41% | 13.79% | 14.58% | 7.03% | 13.86% | 10.01% | 14.5% | 16.21% | 3.9% | 15.31% | 16.12% | 21.08% | 22.45% | 23.12% | 23.95% | 26.97% | 25.21% | 23.72% | 25.48% |
| EBITDA Growth % | -7.94% | -28.92% | 41.41% | 60.65% | -33.61% | 52.11% | -21.66% | 13.77% | 26.19% | 13.44% | -2.18% | -3.52% | -5.61% | -6.66% | 119.43% | -48.47% | 42.2% | -35.36% | -4.38% | 345.68% | -73.29% | 5% | -14.1% | 3.04% | 2.64% | 5.49% | -6.52% | 18.51% | 158.54% | 2.5% | 34.45% |
| D&A (Non-Cash Add-back) | 66.85M | 52.34M | 71.86M | 71.87M | 49.76M | 70.74M | 72.63M | 72.32M | 61.8M | 58.55M | 55.31M | 43.88M | 45.73M | 47.87M | 46.62M | 42.69M | 41.81M | 41.28M | 32.34M | 31.53M | 29.85M | 30.79M | 26.87M | 24.85M | 22.37M | 30.15M | 29.49M | 25.7M | 23.6M | 7M | 6.4M |
| EBIT | 113.15M | 102.2M | 200.33M | 120.6M | -41.96M | 108.59M | 45.66M | 73.93M | 71.31M | 46.94M | 34.73M | 51.17M | 52.79M | 56.24M | 65.21M | 8.27M | 57.01M | 25.24M | 72.38M | 82.81M | -4.6M | 63.75M | 79.56M | 87.86M | 79.35M | 68.96M | 64.46M | 74.8M | 61.2M | 25.8M | 25.6M |
| Net Interest Income | -22.04M | -31.09M | -37.3M | -39.77M | -28.91M | -35.48M | -44.05M | -42.7M | -20.65M | -18.2M | -15.36M | -6.03M | -6.11M | -5.61M | -5.73M | -10.58M | -11.36M | -7.09M | -10.37M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 29.92M | 31.09M | 37.3M | 39.77M | 28.91M | 35.48M | 44.05M | 42.7M | 20.65M | 18.2M | 15.36M | 6.03M | 6.11M | 5.61M | 5.73M | 6.68M | 7.11M | 7.09M | 10.37M | 16.23M | 19.12M | 15.58M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -64.86M | -70.01M | -37.3M | -39.77M | -140.92M | -36.61M | -44.41M | -47.89M | -20.65M | -18.2M | -18.3M | -6.03M | -6.11M | -5.88M | -5.73M | -59.4M | -11.44M | -10.11M | -6M | -13.43M | -19.8M | -15.58M | -13.6M | -26.95M | -25.99M | -30.82M | -34.29M | -32.3M | -30.9M | -36.5M | -100K |
| Pretax Income | 83.23M | 71.12M | 163.03M | 80.83M | -70.86M | 73.11M | 1.6M | 31.23M | 50.65M | 28.73M | 19.38M | 45.14M | 46.67M | 50.63M | 59.48M | -2.31M | 45.66M | 18.16M | 69.26M | 64.76M | -24.4M | 48.17M | 49.56M | 53.01M | 54.84M | 38.13M | 30.18M | 42.5M | 30.3M | -10.7M | 25.5M |
| Pretax Margin % | 6.06% | 5.17% | 12.47% | 6.49% | -6.78% | 7.23% | 0.19% | 3.27% | 5.89% | 3.61% | 2.54% | 6.28% | 6.35% | 6.69% | 7.75% | -0.32% | 6.4% | 2.61% | 9.33% | 9.33% | -3.77% | 7.8% | 8.88% | 10.66% | 12.1% | 8.89% | 7.69% | 11.41% | 9.01% | -7.74% | 20.3% |
| Income Tax | 26.73M | 24.06M | 30.61M | 16.37M | 9.72M | 10.56M | -7.91M | 2.6M | 9.8M | -26.75M | 4.71M | 14.65M | 14.48M | 14.69M | 19M | -3.06M | 15.31M | 6.02M | 24.7M | 23.3M | -11.89M | 16.18M | 16.1M | 20.93M | 19.74M | 13.73M | 10.86M | 15.3M | 10.9M | -3.6M | 9.2M |
| Effective Tax Rate % | 32.12% | 33.83% | 18.77% | 20.25% | -13.72% | 14.45% | -493.7% | 8.34% | 19.35% | -93.12% | 24.31% | 32.44% | 31.03% | 29.02% | 31.94% | 132.62% | 33.53% | 33.15% | 35.66% | 35.98% | 48.74% | 33.58% | 32.48% | 39.48% | 36% | 36% | 36% | 36% | 35.97% | 33.64% | 36.08% |
| Net Income | 56.5M | 47.05M | 132.42M | 64.46M | -80.58M | 62.54M | 9.52M | 28.62M | 40.85M | 55.49M | 14.66M | 30.5M | 32.19M | 35.94M | 40.48M | 752K | 30.35M | 12.14M | 44.56M | 41.46M | -12.51M | 31.99M | 33.47M | 32.08M | 34.15M | 24.41M | 19.31M | 27.2M | 17.8M | -7.1M | 16.3M |
| Net Margin % | 4.12% | 3.42% | 10.13% | 5.18% | -7.71% | 6.19% | 1.1% | 3% | 4.75% | 6.97% | 1.92% | 4.24% | 4.38% | 4.75% | 5.28% | 0.1% | 4.25% | 1.75% | 6% | 5.97% | -1.93% | 5.18% | 5.99% | 6.45% | 7.54% | 5.69% | 4.92% | 7.3% | 5.29% | -5.13% | 12.98% |
| Net Income Growth % | -48.73% | -64.47% | 105.44% | 179.99% | -228.84% | 557.16% | -66.75% | -29.95% | -26.37% | 278.39% | -51.92% | -5.26% | -10.43% | -11.22% | 5283.11% | -97.52% | 150.03% | -72.76% | 7.49% | 431.46% | -139.09% | -4.4% | 4.31% | -6.06% | 39.93% | 26.36% | -28.99% | 52.81% | 350.7% | -143.56% | 49.54% |
| Net Income (Continuing) | 56.5M | 47.05M | 132.42M | 64.46M | -80.58M | 62.54M | 9.52M | 28.62M | 40.85M | 55.49M | 14.66M | 30.5M | 32.19M | 35.94M | 40.48M | 752K | 30.35M | 12.14M | 44.56M | 41.46M | -12.51M | 31.99M | 33.47M | 32.08M | 34.15M | 24.41M | 19.31M | 27.2M | 19.4M | -7.1M | 16.3M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.88 | 1.51 | 4.26 | 2.04 | -2.68 | 1.94 | 0.32 | 0.97 | 1.41 | 1.97 | 0.52 | 1.09 | 1.16 | 1.28 | 1.41 | 0.03 | 1.05 | 0.42 | 1.52 | 1.43 | -0.45 | 1.08 | 1.11 | 1.10 | 1.23 | 1.00 | 0.83 | 1.17 | 0.77 | -0.31 | 0.75 |
| EPS Growth % | -47.53% | -64.55% | 108.82% | 176.12% | -238.14% | 506.25% | -67.01% | -31.21% | -28.43% | 278.85% | -52.29% | -6.03% | -9.38% | -9.22% | 5261.22% | -97.5% | 150% | -72.37% | 6.29% | 417.78% | -141.67% | -2.7% | 0.91% | -10.57% | 23% | 20.48% | -29.06% | 51.95% | 348.39% | -141.33% | 19.05% |
| EPS (Basic) | - | 1.52 | 4.29 | 2.10 | -2.68 | 2.14 | 0.33 | 1.01 | 1.45 | 1.99 | 0.53 | 1.10 | 1.17 | 1.30 | 1.43 | 0.03 | 1.06 | 0.42 | 1.55 | 1.46 | -0.45 | 1.09 | 1.13 | 1.11 | 1.25 | 1.02 | 0.84 | 1.19 | 0.79 | -0.31 | 0.77 |
| Diluted Shares Outstanding | 30.12M | 31.15M | 31.11M | 31.55M | 30.04M | 32.22M | 29.46M | 29.5M | 28.89M | 28.17M | 27.96M | 27.86M | 27.77M | 28.11M | 28.65M | 28.63M | 28.91M | 29.14M | 29.23M | 28.99M | 27.79M | 29.62M | 30.15M | 29.17M | 27.77M | 24.41M | 23.27M | 23.17M | 23.02M | 22.65M | 21.82M |
| Basic Shares Outstanding | 30.07M | 31.04M | 30.85M | 30.67M | 30.04M | 29.16M | 28.58M | 28.32M | 28.12M | 27.94M | 27.8M | 27.65M | 27.4M | 27.72M | 28.3M | 28.25M | 28.71M | 29.07M | 28.8M | 28.39M | 27.79M | 29.35M | 29.62M | 28.9M | 27.32M | 23.93M | 22.99M | 22.91M | 22.63M | 22.65M | 21.07M |
| Dividend Payout Ratio | - | 52.59% | 18.62% | 38.01% | - | 37.18% | 239.76% | 78.97% | 54.93% | 40.2% | 151.48% | 72.48% | 68.21% | 46.46% | 31.77% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying CNMD stock.
For fiscal year 2025, CONMED Corporation (CNMD) reported total revenue of $1.37B. This represents a 994.3% increase compared to $125.6M in 1996.
CONMED Corporation (CNMD) is profitable, generating $47.1M in net income for the fiscal year ending 2025 with a net profit margin of 3.4%.
CONMED Corporation (CNMD) reported an operating income of $141.1M, resulting in an operating profit margin of 10.3%. This margin reflects the operational efficiency of the business before interest and taxes.
CONMED Corporation (CNMD) generated $725.4M in gross profit for the year, representing a gross profit margin of 52.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin volatility and EPS swings
Metrics are mathematically derived from official filings.
Stable Revenue, Uneven Growth
Revenue growth has been modest, averaging around 3-4% annually, with recent quarters showing near-flat performance. According to the latest income statement data, 2026Q2 revenue grew only 0.1% year-over-year, suggesting a mature portfolio.
The company's revenue trajectory appears stable but unexciting, with quarterly growth rates ranging from -0.7% to 8.0% over the past ten quarters. The most recent quarter (2026Q2) saw essentially flat growth, which may indicate market saturation or competitive pressures. Investors should monitor whether new product launches can reaccelerate growth, as the current pace is below the peer average of around 8-10%.
Gross Margin Resilience Amid Fluctuations
Gross margin has been volatile, dipping to 46.7% in 2025Q3 but recovering to 57.5% by 2026Q2. Based on reported figures, the average gross margin over the last four quarters is approximately 53.5%, below the peer median of 61%.
The gross margin shows significant quarter-to-quarter swings, with a notable trough in 2025Q3 (46.7%) followed by a recovery. This volatility may indicate product mix shifts or one-time cost issues. The current level of 57.5% is below peers like Hologic (61%) and AtriCure (74.4%), suggesting potential pricing pressure or higher input costs. Management's ability to sustain margins above 55% will be critical for profitability.
Operating Leverage Inconsistent
Operating income growth has not consistently outpaced revenue growth, with operating margin swinging from 3.6% to 20.7% over the past ten quarters. As reported in financial statements, 2026Q2 operating margin of 10.6% is below the 2024Q3 peak of 20.7%.
The company exhibits limited operating leverage, as SG&A expenses have grown roughly in line with revenue, while R&D remains stable. The wide range in operating margin suggests that fixed costs are not being efficiently absorbed during periods of slower growth. The 2025Q3 quarter saw operating margin collapse to 5.7% despite only a 6.9% revenue decline, indicating that cost control may be challenged. Investors should watch for SG&A discipline as revenue growth remains tepid.
Earnings Volatility and SBC Impact
Net income and EPS have been highly volatile, with EPS swinging from $0.09 in 2025Q3 to $1.57 in 2024Q3. Stock-based compensation averaged around $6M per quarter, representing a meaningful drag on reported earnings.
The quality of earnings appears mixed, as net income fluctuations are not fully explained by revenue changes. For instance, 2025Q3 net income of $2.9M on $338.6M revenue implies a net margin of only 0.8%, while 2024Q3 achieved a 15.5% net margin on similar revenue. This suggests non-operating items or tax effects are influencing results. SBC of $5-14M per quarter reduces reported EPS, and investors should adjust for this to assess true cash earnings.
COGS and SG&A Drive Profitability
COGS and SG&A are the primary cost drivers, with SG&A averaging around $130M per quarter, roughly 40% of revenue. According to the income statement data, SG&A spiked to $145.6M in 2026Q2, pressuring operating margins.
The cost structure is dominated by COGS (around 45-50% of revenue) and SG&A (around 40% of revenue), leaving limited room for operating profit. SG&A has been creeping upward, with 2026Q2 SG&A at $145.6M, the highest in the period, despite flat revenue. This suggests that the company may be investing in sales and marketing to defend market share, but it is compressing margins. R&D remains modest at around 4-5% of revenue, which may limit long-term innovation.
2025Q3 Margin Collapse and Recovery
The most significant inflection occurred in 2025Q3, when gross margin fell to 46.7% and operating margin to 5.7%, followed by a recovery to 57.5% and 10.6% by 2026Q2. This suggests a temporary disruption rather than a structural shift.
The 2025Q3 quarter stands out as a clear inflection point, with a sharp deterioration in profitability across all metrics. The subsequent recovery in 2025Q4 and 2026Q2 indicates that the issues were likely transitory, possibly related to inventory write-downs or supply chain disruptions. However, the fact that operating margin in 2026Q2 (10.6%) remains below the 2024Q3 peak (20.7%) suggests that the company has not fully regained its prior profitability level. Investors should assess whether this is a new normal or a temporary setback.
What Could Invalidate the Base Case
The most significant risk is the recurrence of margin compression, as seen in 2025Q3, which could signal structural issues rather than a one-off. According to the data, gross margin dropped to 46.7% in that quarter, and EPS fell to $0.09.
Short-sellers might argue that the 2025Q3 margin collapse was not purely transitory, given that operating margin in 2026Q2 (10.6%) remains well below the 2024Q3 peak (20.7%). The elevated SG&A in 2026Q2, despite flat revenue, suggests that cost discipline may be weakening. If revenue growth remains near zero and margins fail to recover to historical highs, the stock could face de-rating. Investors should monitor whether the company can sustain gross margins above 55% and control SG&A growth, as any further deterioration would challenge the current valuation.