📊 AVNS Key Takeaways
Investment Thesis
Avanos Medical faces significant profitability challenges with negative operating margins (-8.8%) and net losses (-$72.9M) despite modest revenue growth of 1.9% YoY, indicating operational deterioration rather than temporary headwinds. While the company maintains adequate liquidity and generates positive free cash flow ($43.1M), the persistent inability to convert a healthy 50.5% gross margin into profitability suggests structural operational issues that require immediate attention.
AVNS Strengths
- Strong gross margin of 50.5% demonstrates pricing power and product quality in the medical device sector
- Positive free cash flow of $43.1M with 6.1% FCF margin provides operational runway despite net losses
- Solid balance sheet with low leverage (0.12x debt-to-equity ratio) and comfortable liquidity position (2.15x current ratio)
- Positive operating cash flow of $74.7M suggests underlying business generates cash despite accounting losses
AVNS Risks
- Severe profitability erosion with negative operating margin (-8.8%) and net margin (-10.4%), indicating unsustainable cost structure
- Negative return metrics (ROE -9.4%, ROA -6.8%) destroying shareholder value with cash burn exceeding operational efficiency gains
- Inability to control operating expenses relative to modest 1.9% revenue growth signals management execution concerns and potential market share pressure
- Negative interest coverage ratio (-19.9x) indicates company cannot service debt from operating earnings, relying on cash reserves
Key Metrics to Watch
- Operating margin trend - critical to confirm whether this represents temporary restructuring or chronic operational weakness
- Gross margin sustainability - must maintain 50% threshold while achieving operating leverage through expense control
- Free cash flow conversion - monitor ability to sustain positive FCF as current profitability gap widens
- Revenue growth acceleration - need to demonstrate topline growth exceeds 1.9% to justify operational structure
AVNS Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.15x current ratio provides a solid financial cushion.
AVNS Profitability Ratios
AVNS vs Default Sector
How AVANOS MEDICAL, INC. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
AVNS Balance Sheet & Liquidity
AVNS 5-Year Financial Trend
5-Year Trend Summary: AVANOS MEDICAL, INC.'s revenue has remained relatively flat over the 5-year period, with a 6% decline. The most recent EPS of $-1.32 indicates the company is currently unprofitable.
AVNS Growth Metrics (YoY)
AVNS Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $170.4M | -$1.4M | $-0.03 |
| Q2 2025 | $171.7M | $900.0K | $0.02 |
| Q1 2025 | $166.1M | -$900.0K | $-0.02 |
| Q3 2024 | $170.4M | -$3.7M | $-0.08 |
| Q2 2024 | $169.4M | $900.0K | $0.02 |
| Q1 2024 | $159.3M | -$500.0K | $-0.01 |
| Q3 2023 | $171.3M | -$3.7M | $-0.08 |
| Q2 2023 | $169.4M | $12.5M | $0.26 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AVNS Capital Allocation
AVNS SEC Filings
Access official SEC EDGAR filings for AVANOS MEDICAL, INC. (CIK: 0001606498)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AVNS
What is the AI rating for AVNS?
AVANOS MEDICAL, INC. (AVNS) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are AVNS's key strengths?
Strong gross margin of 50.5% demonstrates pricing power and product quality in the medical device sector. Positive free cash flow of $43.1M with 6.1% FCF margin provides operational runway despite net losses.
What are the risks of investing in AVNS?
Severe profitability erosion with negative operating margin (-8.8%) and net margin (-10.4%), indicating unsustainable cost structure. Negative return metrics (ROE -9.4%, ROA -6.8%) destroying shareholder value with cash burn exceeding operational efficiency gains.
What is AVNS's revenue and growth?
AVANOS MEDICAL, INC. reported revenue of $701.2M.
Does AVNS pay dividends?
AVANOS MEDICAL, INC. does not currently pay dividends.
Where can I find AVNS SEC filings?
Official SEC filings for AVANOS MEDICAL, INC. (CIK: 0001606498) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AVNS's EPS?
AVANOS MEDICAL, INC. has a diluted EPS of $-1.57.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.