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# Envista's $508.3 Million Quarterly Profit Rests On A $428.1 Million Non-Cash Currency Gain
- URL: https://www.bullished.co/envistas-508-3-million-quarterly-profit-rests-on-a-428-1-million-non-cash-currency-gain-339160fa/
- Published: 2026-11-04T22:51:46.000Z
- Updated: 2026-11-04T22:51:46.000Z
- Description: Adjusted EBITDA rose to $105.8 million from $97.1 million, while the 10-Q also shows a $34.2 million headquarters lease and $28.2 million of tariff refunds.
- Author: Matteo Parrino
- Tags: SEC Filings, NVST, Industry: Healthcare

[Envista](https://www.bullished.co/tag/nvst/), which makes dental implants, braces, imaging systems and consumables, [reported third-quarter net income of $508.3 million](https://www.sec.gov/Archives/edgar/data/0001757073/000175707326000087/nvst-20261002.htm?ref=bullished.co), against a $30.3 million loss a year earlier. Most of the swing came from a $428.1 million non-cash gain tied to dissolving legal entities, according to its 10-Q filed Wednesday.

## A gain that never touched cash

Shutting down several legal entities in the quarter let Envista book a $428.1 million cumulative foreign currency translation gain, previously parked in other comprehensive income, as earnings. Operating profit came to $515.2 million, compared with $57.5 million a year earlier.

In its [earnings release](https://www.sec.gov/Archives/edgar/data/0001757073/000175707326000085/nvst-ex991x10226xworkingfi.htm?ref=bullished.co), Envista said the gain reflects its legal entity simplification efforts and had no cash impact. It also had no effect on adjusted EBITDA, adjusted operating income or adjusted diluted earnings per share.

On the adjusted measures, adjusted EBITDA was $105.8 million versus $97.1 million, and adjusted diluted EPS was [$0.40 versus $0.32](https://seekingalpha.com/news/4665613-envista-non-gaap-eps-of-0%5F40-beats-by-0%5F04-revenue-of-691%5F5m-beats-by-2%5F77m?ref=bullished.co). Diluted GAAP EPS was $3.11, of which the release attributes $2.62 to the gain before tax effects.

## Tax rate and cash flow

The effective tax rate was (1.6)% for the quarter, against 160.7% a year earlier. The filing ties the difference partly to the nontaxable translation gain, and also cites a valuation allowance against certain U.S. interest carryforwards.

Operating cash flow for the quarter was $77.9 million, against $78.7 million a year earlier. For the first nine months it was $193.8 million, up from $167.7 million. Accumulated other comprehensive loss stood at $646.3 million at quarter end.

## Tariff refunds lift margins

Envista had received about $28.2 million of tariff refunds through the nine months, recorded as a reduction in cost of sales, of which $15.6 million came in the third quarter. The [prior quarter's 10-Q](https://www.sec.gov/Archives/edgar/data/0001757073/000175707326000066/nvst-20260703.htm?ref=bullished.co) described a claim of roughly $15 million.

The refunds flatter segment margins. Specialty Products & Technologies margin rose to 12.2% from 11.1%, with about 130 basis points coming from refunds. Equipment & Consumables margin jumped to 25.1% from 17.4%, with about 415 basis points from refunds.

[Sales rose 3.2%](https://seekingalpha.com/news/4665613-envista-non-gaap-eps-of-0%5F40-beats-by-0%5F04-revenue-of-691%5F5m-beats-by-2%5F77m?ref=bullished.co) to $691.5 million, and core sales, which exclude acquisitions and currency effects, grew 2.7%.

## A new Irvine headquarters

The 10-Q discloses a September 2 agreement to lease space in Irvine, California for a new corporate headquarters. Fixed payments are expected to total about $34.2 million, before rent abatement and other provisions, and are to begin October 1, 2028.

The lease is expected to start in early 2028, so no lease asset, liability or expense has been recognized yet.

Envista now guides full-year adjusted diluted EPS to $1.54 to $1.58, up from $1.50 to $1.55.

### Sources

- [10-Q Filing — Envista Holdings (NVST)](https://www.sec.gov/Archives/edgar/data/0001757073/000175707326000087/nvst-20261002.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — Envista Holdings (NVST), Q2 FY2026 filed 2026-08-05 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0001757073/000175707326000066/nvst-20260703.htm?ref=bullished.co) — SEC EDGAR
- [Earnings release (8-K Item 2.02, nvst-ex991x10226xworkingfi.htm) — Envista Holdings, filed 2026-11-04](https://www.sec.gov/Archives/edgar/data/0001757073/000175707326000085/nvst-ex991x10226xworkingfi.htm?ref=bullished.co) — SEC EDGAR
- [Envista: Q3 Earnings Snapshot](https://finance.yahoo.com/markets/stocks/articles/envista-q3-earnings-snapshot-213456735.html?ref=bullished.co) — Associated Press
- [Envista Non-GAAP EPS of $0.40 beats by $0.04, revenue of $691.5M beats by $2.77M | Seeking Alpha](https://seekingalpha.com/news/4665613-envista-non-gaap-eps-of-0%5F40-beats-by-0%5F04-revenue-of-691%5F5m-beats-by-2%5F77m?ref=bullished.co) — seekingalpha.com
- [Envista (NYSE:NVST) reports Q3 2026 in line with expectations](https://finance.yahoo.com/markets/stocks/articles/envista-nyse-nvst-reports-q3-211039373.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [Envista: Q3 Earnings Snapshot | wusa9.com](https://www.wusa9.com/article/syndication/associatedpress/envista-q3-earnings-snapshot/616-4f0f9044-3f3e-4b39-8907-11d47128bbbc?ref=bullished.co) — Associated Press
- [Envista: Q3 Earnings Snapshot | 11alive.com](https://www.11alive.com/article/syndication/associatedpress/envista-q3-earnings-snapshot/616-4f0f9044-3f3e-4b39-8907-11d47128bbbc?ref=bullished.co) — Associated Press

### More on Envista Holdings

- [Envista Raises 2026 Earnings Outlook To $1.54-$1.58 A Share After Adjusted Profit Climbs 25%](https://www.bullished.co/envista-raises-2026-earnings-outlook-to-1-54-1-58-a-share-after-adjusted-profit-climbs-25-f26a3c7b/)
- [Envista Says Waste Fell 40% And Water Use 19% In 2025 Sustainability Report](https://www.bullished.co/envista-says-waste-fell-40-and-water-use-19-in-2025-sustainability-report-139294e8/)

[All Envista Holdings (NVST) coverage →](https://www.bullished.co/tag/nvst/)