Dentsply Sirona (XRAY -3.33%), a major player in dental products and technologies, released its second quarter results on August 7, 2025. The company reported GAAP revenue of $936 million and adjusted earnings per share of $0.52. Both figures narrowly beat analyst expectations, which stood at $935.05 million for GAAP revenue and $0.51 for non-GAAP adjusted EPS. Despite margin improvements and Adjusted earnings per share were $0.52 in the second quarter of 2025, compared to $0.49 in the second quarter of 2024, the quarter was overshadowed by a sharp revenue drop of 18.3% in the United States, significant asset impairments (GAAP), and a dramatic slowdown in cash generation. Overall, while the results cleared the low bar of consensus estimates, underlying trends signal persistent challenges for the business.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.52 | $0.51 | $0.49 | 6.1% |
| Revenue | $936 million | $935.05 million | $984 million | (4.9%) |
| Adjusted EBITDA Margin | 21.1% | 17.5% | 3.6 pp | |
| Adjusted Gross Margin | 55.9% | 55.3% | 0.6 pp | |
| Adjusted Free Cash Flow | $16 million | $156 million | (89.7%) |
Source: Analyst estimates for the quarter provided by FactSet.
About Dentsply Sirona and Its Recent Focus
Dentsply Sirona designs, manufactures, and sells clinical and digital dental products globally, including imaging equipment, CAD/CAM systems for dental restoration, and a range of consumables such as restorative materials and endodontic tools. Its offerings support dental professionals with technologies like intraoral scanners, 3D printers, and workflow management software.
The company has prioritized innovation and digital transformation, with investments in products like the DS Core cloud platform and SureSmile, its clear aligner system, supporting its push into digital dentistry and connected workflows. Recent quarters have highlighted a need to balance these advances with supply chain efficiency, geographic strength, and strong compliance in regulated markets.
Quarterly Results: Key Movements, Segment Trends, and One-Time Events
The quarter saw Non-GAAP adjusted EPS of $0.52 and revenue (GAAP) of $936 million, narrowly exceeding consensus on both metrics (non-GAAP EPS and GAAP revenue). However, the apparent headline beat was largely due to foreign currency tailwinds; Constant currency revenue actually fell 6.7%. US net sales declined 18.3% year over year. Management attributed this to lower volumes in implants and equipment and competitive pressures, especially impacting the Orthodontic & Implant Solutions segment.
Orthodontic & Implant Solutions, which covers dental implants and aligners such as the SureSmile system, saw its revenue drop to $226 million, a decrease of 19.4% in constant currency. Connected Technology Solutions, which includes digital equipment and cloud-based offerings like DS Core, also declined 5.9% on a constant currency basis to $243 million. Essential Dental Solutions, which features recurring consumables such as filling materials, was the only segment to grow, rising 1.1% in constant currency and reaching $387 million. The company noted that a 3.2% hit to net sales stemmed from decreased sales in its Byte direct-to-consumer orthodontics offering.
Profitability improved, with the adjusted EBITDA margin reaching 21.1%, up from 17.5% in Q2 2024. Gross margin (GAAP) also edged higher to 52.4%, compared to 51.9% in Q2 2024. However, on a cash basis, the result was starkly different. Operating cash flow plunged from $208 million in Q2 2024 to $48 million, while adjusted free cash flow fell to $16 million, just 15% of adjusted net income (non-GAAP). Management referenced unfavorable working capital and a large tax refund received in the prior year as main reasons, but the near 90% drop in adjusted free cash flow is a sharp contrast to margin growth on paper.
The company recorded a $214 million non-cash impairment primarily in the Connected Technology and Orthodontic & Implant segments. Management cited tariffs, softening implant and prosthetic volumes, and competitive challenges for these write-downs. On the capital side, Dentsply Sirona issued $550 million of junior subordinated notes at 8.375% to pay off a short-term bridge loan and to support general operations. Net long-term debt increased, and interest expense rose accordingly. No new product launches or significant customer wins were cited for the period in the release.
Quarterly R&D expense was $37 million, or 4.0% of sales (GAAP), compared to $41 million in Q2 2024. The company highlights its digital and innovation focus but did not provide updated figures for adoption of digital platforms or new technology milestones. Leadership transitions also marked the quarter, with Dan Scavilla becoming CEO on August 1, 2025, and Matt Garth appointed CFO in May.
Outlook and What to Watch
Management reaffirmed its full-year 2025 guidance, projecting total net sales (GAAP) between $3.60 billion and $3.70 billion, which implies a 4% to 2% decline in constant currency terms. The adjusted EPS outlook remains $1.80 to $2.00, assuming ongoing cost control and margin stability. No new GAAP earnings targets were disclosed, and management acknowledged ongoing risks from tariffs and trade policies.
Investors will want to monitor growth outside core consumables, as it has stalled, and the recent impairments underscore competitive pressure in digital and implant segments. The company's unchanged quarterly dividend was set at $0.16 per share.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
