for a total of $43.7 million. We continue to expect to allocate approximately $61.8 million to share repurchase in 2026. I'll now turn the call back to Pat to discuss our financial guidance.

Thanks, John. Beginning with a review of our 2026 financial guidance, which we updated in today's press release. We updated our net sales guidance range to reflect our second quarter results, our updated expectations for revenue contributions from product sales and MSA agreements related to our strategic exits from our GI product offerings in 2026, and to a lesser extent, updated assumptions regarding the impact on our revenue results from changes in foreign currency exchange rates. Specifically, Our full year 2026 revenue guidance now assumes GI revenue in the range of $20 million to $22 million compared to our prior guidance range of $14.5 million to $17.5 million. We now expect changes in foreign currency exchange rates to represent a tailwind to GAAP results up between $7 million to $7.5 million compared to our prior expectation of a tailwind from FX of between $4.4 million to $7.4 million. On an organic constant currency basis, we now expect net sales growth of 5% to 6% compared to our prior expectation of 5% to 6.5%. Our updated full year 2026 revenue guidance reflects both our performance in the second quarter and updated outlook for the balance of the year. We have reaffirmed our low-end expectations of 5% organic constant currency growth this year and our level of confidence in the team's ability to deliver at least 5% growth in 2026 has not wavered. The high end of our organic growth range continues to reflect the expectation that we'll see improving growth trends on a sequential basis in the third and fourth quarters, respectively. However, our updated guidance now reflects a more measured base of improvement and growth trends over the second half of the year. With respect to profitability guidance for 2026, We now expect non-GAAP adjusted diluted earnings per share in the range of $4.48 to $4.60 compared to our prior guidance range of $4.30 to $4.45. The increase in our non-GAAP EPS guidance range was driven by the better than expected results in the second quarter, a lower expected headwind to EPS from our GI product line exits, and higher expected contribution to EPS from share repurchase activity to date offset partially by higher interest expense and tax rate assumptions for the full year 2026 period. For modeling purposes, our updated financial guidance for 2026 includes the following assumptions. Adjusted gross margin of approximately 57.5% to 58% inclusive of the tariff benefit. Adjusted interest expense of approximately $33 million in 2026 compared to our prior expectation of $25 million to $27 million. Adjusted effective tax rate of approximately 25% compared to 24.5% previously We expect to generate free cash flow of approximately $115 million compared to approximately $125 million previously. Lastly, as it relates to the third quarter of 2026, we expect GAAP net sales of between $334 million and $339 million. Third quarter organic constant currency growth is expected to be in the range of 6.4% to 7.6%, excluding expected GI revenue in the range of $3 to $3.6 million and an FX impact of approximately 10 basis points. We expect adjusted EPS in the third quarter to be between $0.98 and $1.03. Stepping back, this was a quarter of real progress. We delivered financial performance that exceeded our expectations, advanced our key growth platforms, completed the exit of our GI products, refinanced a portion of our debt, and added exceptional talent to our board and leadership team. I'm proud of our team's accomplishments in quarter two, and I remain confident that our focused portfolio and differentiated growth drivers positioned ConMed to deliver durable, long-term growth and value for our shareholders as we look forward. I'd like to conclude by thanking everyone on the ConMed team for their efforts this past quarter. Thanks as well to our customers, suppliers, shareholders and those on today's call for your support. Operator, we will now open the call for questions.

Thank you. If you'd like to ask a question, please signal by pressing star 1 1 on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. We do ask that you limit yourself to one question and one follow up. One moment for questions. And our first question comes from Lawrence Beagleson with Wells Fargo. You may proceed. Hi, thanks for taking our questions.

Starting off, could you provide color on what you believe drove AirSeal below expectations? And based upon your comments, is it fair to assume high single growth this year versus low double digit?

Thanks for the question. Again, I'm going to remind us, we're pleased with our gen surgery growth in quarter two, 5.3% year over year organic. I also commented in the script AirSeal was our top contributor to our general surgery growth in the quarter. This is a growth franchise for us. We also shared we grew both capital and disposables in quarter two. Our AirSeal trends improved sequentially and I continue to expect sequential improvements in the second half. From a long-term growth trajectory of AirSeal, we continue to believe and I continue to believe it is a high single digit. low double digit grower.

Okay, understood. And then maybe looking at BioBrace RC, is there any way you can quantify or at least qualitatively talk to the penetration level there? And do you have any insights on the retention rate for users that have used it a handful of times?

Yeah, here's what I would say on BioBrace RC. It improves the surgeon's ability to repeatedly deliver rotator cuff repairs consistently. We're continuing to see a strong uptake in it. We're continuing to see an increase in new users. And we're continuing to see those users that use BioBrace RC have durable attachment with us. They continue to use it over and over again. We're pleased with the BioBrace RC launch.

Thank you.

Thank you. Our next question goes on Travis Feet with Bank of America Securities. You may proceed.

Hey, thanks for the question. Maybe a higher-level question to start. You've got a new CFO. You've announced some pretty well-regarded board members. And just kind of curious how you think that the strategy of ConMed might change or how you think about creating shareholder value differently going forward.

Yeah, I think going forward as I think about ConMed strategy, we're focused on our strongest growth opportunities. Minimally invasive robotic and laparoscopic surgery, smoke evacuation, and surgical treatment of orthopedic soft tissue repair. I'm excited to have John as our new CFO. We talked about our balance sheet being strong and being able to look at both an M&A and an organic approach to an offense on innovation. and excited to have two new board members that bring strong, solid, intense industry experience with innovative technology medical device companies. And I like where we're at. I'm excited about the discoveries we've made through our strategic review and like our path towards success.

Great. Makes sense. And then I did want to ask on kind of EPS margins in the second half. The tariff refund was 21 cents in the quarter. Beat Earnings, $0.66x the tariff-free fund, but the full-year guide only went up $0.17. So I just want to make sure I understand kind of the delta between the beat tariff-free fund and the change in the full-year guide and if the offset was just the air-sill piece.

Yeah, this is John. So happy to be here, of course, and thanks for your question that included me as a part of it. But the So let me do the bridge on EPS. So at the low end, what we're seeing is an $0.18 increase. And the stair steps on that are $0.21 related to the tariff refund, as you called out. We have better than expected operational results in Q2, which is worth about $0.08. Then on the GI product line, so we have less of a headwind there. So that's worth $0.05 of an increase. as well as some tailwind from share repo activity of two cents. Then partially offsetting that is interest expense, which is minus 15 pennies, as well as we made an adjustment to the tax rate a little bit higher, which is worth about three cents. So that's what bridges it. It's not related to Air Seal. It's more related to financing activities.

Makes sense. That's helpful. Thank you. and I look forward to working with you.

Likewise. Thank you.

Thank you. Our next question comes from Yong Lee with Jefferies. You may proceed.

All right. Great. Thanks for taking our questions. I guess, you know, John, looking forward to working with you. Congrats. First question is, you know, AeroSeal you mentioned is a lot different channels and opportunities that you can expand into US Lab, ASCs, OUS channels. I guess I'm kind of curious, you know, what do you need to do to get those markets going? You know, more data, more rep training, things like that. And, you know, when can we see some inflections and growth from those differentiated channels?

Yeah, Young, can I remind you, and I know you know this, we grew in quarter one, we grew faster in quarter two. We have multiple growth trajectories in AirSeal. First of all, robotic. We have AirSeal insufflaters around the world in multiple robotic companies' systems. and in the United States in ASCs. So the advancing of the robotic opportunity is in practice. In addition, we're continuing to advance that cause in laparoscopy and we've stated we're in between six and seven percent of the three million laparoscopic procedures. What we're advancing is stronger clinical relationships and data in those key areas of laparoscopy like colorectal and gynecology which can benefit from the advancement of clinical insufflation. So we are advancing those strongly and you're going to continue to see AirSeal to continue to grow faster and more consistently going forward along that trajectory.

All right, got it. Very helpful. I guess another question is kind of higher level, just a utilization question in general. It's a topic of debate, but just kind of curious, are you seeing any impacts from lower ACA exchange enrollments or trade downs in some of the plans? Or do you have expectations of some impacts in the second half of the year or beyond?

We are not seeing our procedure volumes and patient volumes changing, quite honestly. They're consistent to procedures we support and the, you know, the approach of patients globally to come to us through their healthcare system. We have not seen any volume changes.

All right, great. Thank you. Thank you. Our next question comes from Vic Chopra with BMO Capital Markets. You may proceed.

Good evening, Pat. Hi, John. It's Anton on for Vic. Thanks for taking our questions. Maybe first on Airsteel, maybe just help us think through this now expanded compatibility with DV5 a bit more. How meaningful is the expanded DV5 hex cannula indication from a revenue standpoint? Will this increase your current 10% to 20% attachment rate on DV5, and how quickly could that happen?

First of all, I'd say we are excited for this new indication. It is a positive signal to customers, patients, and clinicians around the world that these two companies, ConMed and Intuitive, are focused on surgeon choice and patient outcomes. So we're excited about that. I would also say we knew this was coming and it has been included in our guidance. It is a good thing. It's in our guidance, and it's one of the many things that's going to help us continue to grow our business faster in the AirSeal franchise.

Great. And then maybe another question on international. The performance was really impressive, better than we were kind of expecting across across the board. Can you talk a bit more about what was driving the performance there? Is there anything one time and how should we be thinking about that momentum heading into the second half as comps get a little bit more challenging?

Yeah, a couple things I would say. You'd remember we had a very strong quarter for 2025. Correspondingly, we had a slower quarter internationally in quarter one, and we've had a really strong quarter here, and it was across both general surgery and orthopedics. The growth drivers internationally are the same as they are in the United States. Air seal, biobrace, and smoke evacuation. We have a really strong team internationally excited about where we're at and where we're going. We know it can be a little more dynamic with growth rates as we work through distributors and some of their own supply chain challenges as they order products from us in a different time frame can cause our sales to go up and down a little bit more but quarterly directionally we feel good about the business there and continue to feel optimistic about our growth trajectories. Great, thanks again. Thank you.

Thank you. Our next question comes from Mike Mattson with Needham & Company. You may proceed.

Yeah, thanks. So just with regard to AirSeal, you know, I know that Intuitive and DaVinci is pretty dominant and, you know, most of the robots out there are, you know, one of theirs. But, you know, there are a lot of emerging companies out there, Medtronic, J&J have robots now, and there's a bunch of Chinese companies, et cetera. So are there any plans to make AirSeal compatible with any of these other robots, particularly in the ASC setting? I know there's a few companies targeting ASCs with different types of robots that may be a little more suitable for that setting.

Great, great question Mike. I was at the Surgical Robotics Society meeting last week in Florida and it is, I was at the meeting also last year in Strasburg and this is a really dynamic meeting and the ConMed Insufflation booth was loud and proud in the middle of a number of outstanding robotic companies. It was excited to be there and I would tell you every robotic that surgery system needs an insufflator. Con Med's focus is continuing to be the best and our clinically superior info insufflation system is proving to be that. We can be used in any robot and I want to confirm we've had air seals installed around the world on multiple robotic platforms and I commented earlier, that includes the US and the ASC environment.

Okay, got it. I just wanted to make sure that, you know, there wasn't any FDA clearances or anything like that required to make it compatible with those other systems.

No, there is not any. Most robotic systems actually have to have an independent insufflator used with them.

Okay. All right. I saw the tariff rebate and it's great that you got that, but there's also been some changes to the tariff rates lately. What's the outlook for the latest tariff rates? Is it basically similar to what you were expecting before?

It is. Hey, it's John here. Thanks for the question. The expectation continues to be the same on tariffs for the year as far as we had cooked in 35 cents of full year 2026 EPS headwind related to tariff. Now the refund that we received of course was separate and was related to the previous year. So the 35 cents remains intact and the update that we had to the guidance was related to the refund that we received related to tariffs paid in 2025. Okay, thank you.

Thank you. Our next question comes from Robbie Marcus with JP Morgan. You may proceed.

Oh, great. I'll also offer my welcome and congratulations on the role. I was wondering, I don't think anyone asked yet the lowering of the organic sales growth rate at the high end of the guide. Just maybe walk us through the rationale and what prompted that.

Yeah, Robbie, if you think about it, at the end of quarter one, we had a second half guide of growth to be in the, I'm pulling up my numbers here for the second half, to be between, I want to say almost 9%, Robbie. and you know after a second quarter that we grew six percent and we knew that we had a second half that was going to have to accelerate but I thought it was prudent to lower the second half top end what was a billion 350 to a billion 344. So we actually lowered the top end by six million. We have a second half guidance that says we've got to grow and the 6% plus range. We've just grown 6%. We believe we have a strong approach towards the 6% in the second half and I remain confident in our ability for the total year to grow 5%.

Great. The other one I wanted to ask on was free cash flow. It's down about 20 million year over year. There are a couple of cash costs you're excluding in the adjustments. How are you thinking about free cash flow for the year and what's the right conversion rate for the business moving forward? Thanks a lot.

Yeah, thanks. So on free cash flow, it's primarily working capital that's driving the down year on year and versus the previously guided number. So that's the primary driver. We also have interest expense and some movement on the tax rate. It's early days for me. I don't have what the typical conversion is on free cash flow, but what I've seen certainly in the two weeks that I've been here is we've got a strong cash flow organization. is likely some opportunity as we look at working capital inventory at the company. And that's certainly an area of focus. But overall, the strong cash flow of the company is helpful in supporting the deleveraging efforts that we've had underway.

Yeah, Robbie, we've also talked about our focus on taking care of our customers and ensuring we didn't allow inventory to hold us back from doing that. I also commented that now our operations team is focused on optimization and improving some of those areas and so you should expect inventory going forward to improve.

Thanks a lot.

Thank you. Our next question comes from Matthew O'Brien with Piper Sandler. You may proceed.

Great. Hi, this is Anna on for Matt. Thanks for taking your questions here. Just two from us. Firstly, on ORSO, you know, the headline number was nice, but seems like domestically things were a bit short of what you're expecting. So just if you could elaborate a bit more on some of the puts and takes there, and then maybe within that, any additional comments you could provide on on a shift in mix maybe between ASCs and the inpatient setting.

Gotcha. Good question. So again, let's level set ourselves. Ortho sales increased 6.8% globally. International was 10.8 and domestic was essentially flat or US. I also want to give you some context. Our US orthopedic business has grown mid-single digits five of the last eight quarters and three of the last four. This is one out of the three of the four that we didn't grow. In the second quarter, our U.S. business had some strategic activities where we were looking to strengthen our commercial organization to position for growth. So we took some actions. It caused our growth to pause. We are on offense and we expect it to continue to grow. And your thoughts on ASC growth and volume versus the acute care hospital setting? you're right on there. More and more sports medicine procedures and more and more total joint orthopedic procedures are moving to the ASC setting. We continue to see that.

Great, thank you. And then I guess just to double down on the volume commentary that you provided earlier, appreciate you said nothing's changed to date that you're seeing, but what are your expectations for surgical volumes for the rest of the year and just sort of how that's implemented into the guide. Thanks.

Yeah, our expectation is surgical volumes will continue to be as they were. Again, we see the news and the publications that come out and some would challenge surgical volumes are going to go lower, some challenge surgical volumes are going up, but we continue to see healthy trends from our customers.

Thank you.

I would now like to turn the call back over to Pat Beyer for any closing remarks.

Thank you very much. I want to reiterate, ConMed had a strong second quarter. Our financial results were strong and we accomplished a lot operationally and organizationally to continue to advance our cause to improve patient outcomes and to deliver long-term shareholder value. I want to thank you all for joining us on this call today.

Thank you. That concludes our conference call for today. Thank you for your participation.