AVNS AVANOS MEDICAL, INC.

Overview and Growth

AVANOS MEDICAL, INC. generated $701.20M of revenue in fiscal 2025, with net loss of $72.90M and an operating cash inflow of $74.70M. At $701.20M, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Revenue was 1.9% above fiscal 2024 revenue of $687.80M, marking a year-over-year increase. The company reported diluted EPS of -$1.57, adding a shareholder-level measure to the absolute income figures considered below. At period end, total assets were $1.07B, framing the scale of the company’s operating and financing commitments. Revenue equaled 0.65x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

After reported cost of revenue, the company retained $353.90M as gross profit before recognizing operating expenses and other items. Gross profit represented 50.5% of revenue, showing how much of the top line remained after direct costs. The company recorded an operating loss of $61.60M after the reported operating expense base. The operating loss equaled 8.8% of revenue, showing the scale of the operating deficit relative to sales. The company ended the period with a net loss of $72.90M, extending the operating result through all remaining items. Measured against revenue, the bottom-line deficit represented 10.4% after all recognized items. The company reported a pretax loss of $66.20M, before the effect of income taxes. Measured against revenue, the pretax deficit represented 9.4%. Income tax expense totaled $6.70M, providing the reported tax component that separates pretax and after-tax earnings. The loss-to-equity relationship was 9.4%, placing the bottom-line deficit against shareholder capital. The loss-to-assets relationship was 6.8%, placing the bottom-line deficit against the company’s resource base.

Liquidity and Capital Structure

At period end, the $1.07B asset base was financed through $295.50M of liabilities and $778.20M of equity. The near-term balance sheet paired $355.40M of current assets with $165.20M of current liabilities at the reporting date. At 2.15x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Cash and equivalents totaled $89.80M, identifying the most liquid reported component available within the broader current-asset balance. The cash balance equaled 54.4% of current liabilities, showing how much near-term coverage came from cash alone. Borrowings totaled $100.50M, adding a fixed financing obligation alongside the company’s equity capital. Debt equaled 0.13x of book equity, describing the relative scale of borrowing and shareholder capital. The debt-to-assets relationship was 9.4%, comparing borrowing with the total asset balance. Liabilities represented 27.5% of total assets, quantifying the liability-funded share of the company’s resource base. Measured against total assets, cash and equivalents represented 8.4%, a balance-sheet composition measure rather than a liquidity forecast. Total assets were 7.0% lower than fiscal 2024 assets of $1.15B, measuring the company’s own balance-sheet change. Reported equity changed 6.1% from $828.50M in fiscal 2024, placing the current capital base lower year over year.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $74.70M, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Capital expenditures used $31.60M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital spending absorbed 42.3% of operating cash flow, quantifying the share of cash from operations directed to investment. After capital spending, free cash flow was $43.10M, leaving cash available for debt reduction, shareholder returns, or further investment. Relative to revenue, free cash flow equaled 6.1%, showing how much sales converted into cash after investment. Free cash flow equaled 4.0% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.