DENTSPLY SIRONA Inc. 10-Q

Item 1 – Financial Statements DENTSPLY SIRONA INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net sales $ 898 $ 936 $ 1,778 $ 1,815 Cost of products sold 405 446 858 859 Gross profit 493 490 920 956 Selling, general, and administrative expenses 364 342 715 700 Research and development expenses 45 37 89 73 Goodwill and intangible asset impairments — 235 — 235 Restructuring and other costs 2 4 69 13 Operating income (loss) 82 ( 128 ) 47 ( 65 ) Other income and expenses: Interest expense, net 22 24 46 43 Other (income) expense, net ( 12 ) 1 ( 29 ) 1 Income (loss) before income taxes 72 ( 153 ) 30 ( 109 ) Provision (benefit) for income taxes 36 ( 109 ) 4 ( 84 ) Net income (loss) 36 ( 44 ) 26 ( 25 ) Less: Net (loss) income attributable to noncontrolling interest ( 1 ) 1 ( 1 ) — Net income (loss) attributable to Dentsply Sirona $ 37 $ ( 45 ) $ 27 $ ( 25 ) Earnings (loss) per common share attributable to Dentsply Sirona: Basic $ 0.18 $ ( 0.22 ) $ 0.14 $ ( 0.13 ) Diluted $ 0.18 $ ( 0.22 ) $ 0.14 $ ( 0.13 ) Weighted average common shares outstanding: Basic 199.7 199.3 199.8 199.2 Diluted 200.5 199.3 200.8 199.2 See accompanying Notes to Unaudited Interim Consolidated Financial Statements. 4 DENTSPLY SIRONA INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in millions) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net income (loss) $ 36 $ ( 44 ) $ 26 $ ( 25 ) Other comprehensive (loss) income, net of tax: Foreign currency translation (loss) gain ( 6 ) 106 ( 23 ) 193 Net gain (loss) on derivative financial instruments 5 ( 88 ) 6 ( 104 ) Total other comprehensive (loss) income, net of tax ( 1 ) 18 ( 17 ) 89 Total comprehensive income (loss) 35 ( 26 ) 9 64 Less: Comprehensive (loss) income attributable to noncontrolling interests ( 1 ) 1 ( 1 ) — Total comprehensive income (loss) attributable to Dentsply Sirona $ 36 $ ( 27 ) $ 10 $ 64 See accompanying Notes to Unaudited Interim Consolidated Financial Statements. 5 DENTSPLY SIRONA INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in millions, except share and per share amounts) (unaudited) June 30, 2026 December 31, 2025 Assets Current Assets: Cash and cash equivalents $ 239 $ 326 Accounts and notes receivable-trade, net 620 688 Inventories, net 665 642 Prepaid expenses and other current assets 404 367 Total Current Assets 1,928 2,023 Property, plant, and equipment, net 845 861 Operating lease right-of-use assets, net 129 139 Identifiable intangible assets, net 870 974 Goodwill 1,138 1,148 Other noncurrent assets 294 284 Total Assets $ 5,204 $ 5,429 Liabilities and Equity Current Liabilities: Accounts payable $ 260 $ 300 Accrued liabilities 664 700 Income taxes payable 33 30 Notes payable and current portion of long-term debt 228 313 Total Current Liabilities 1,185 1,343 Long-term debt 1,996 2,015 Operating lease liabilities 88 93 Deferred income taxes 79 94 Other noncurrent liabilities 505 544 Total Liabilities 3,853 4,089 Commitments and contingencies (Note 14) Equity: Preferred stock, $ 1.00 par value; 0.25 million shares authorized; no shares issued — — Common stock, $ 0.01 par value; 3 3 400.0 million shares authorized, and 264.5 million shares issued at June 30, 2026 and December 31, 2025 199.2 million and 199.6 million shares outstanding at June 30, 2026 and December 31, 2025 Capital in excess of par value 6,619 6,644 Accumulated deficit ( 1,537 ) ( 1,564 ) Accumulated other comprehensive loss ( 656 ) ( 639 ) Treasury stock, at cost, 65.3 million and 64.9 million shares at June 30, 2026 and December 31, 2025, respectively ( 3,078 ) ( 3,105 ) Total Dentsply Sirona Equity 1,351 1,339 Noncontrolling interests — 1 Total Equity 1,351 1,340 Total Liabilities and Equity $ 5,204 $ 5,429 See accompanying Notes to Unaudited Interim Consolidated Financial Statements. 6 DENTSPLY SIRONA INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (in millions, except per share amounts) (unaudited) Common Stock Capital in Excess of Par Value Accumulated Deficit Accumulated Other Comprehensive Loss Treasury Stock Total Dentsply Sirona Equity Noncontrolling Interests Total Equity Balance at December 31, 2025 $ 3 $ 6,644 $ ( 1,564 ) $ ( 639 ) $ ( 3,105 ) $ 1,339 $ 1 $ 1,340 Net loss — — ( 10 ) — — ( 10 ) — ( 10 ) Other comprehensive (loss) income — — — ( 16 ) — ( 16 ) — ( 16 ) Stock-based compensation expense — 8 — — — 8 — 8 Funding of employee stock purchase plan — ( 5 ) — — 6 1 — 1 Restricted stock unit distributions — ( 31 ) — — 27 ( 4 ) — ( 4 ) Balance at March 31, 2026 $ 3 $ 6,616 $ ( 1,574 ) $ ( 655 ) $ ( 3,072 ) $ 1,318 $ 1 $ 1,319 Net income (loss) — 37 — — 37 ( 1 ) 36 Other comprehensive (loss) income — — — ( 1 ) — ( 1 ) — ( 1 ) Stock-based compensation expense — 9 — — — 9 — 9 Treasury shares purchased — — — — ( 12 ) ( 12 ) — ( 12 ) Restricted stock unit distributions — ( 6 ) — — 6 — — — Balance at June 30, 2026 $ 3 $ 6,619 $ ( 1,537 ) $ ( 656 ) $ ( 3,078 ) $ 1,351 $ — $ 1,351 Common Stock Capital in Excess of Par Value Accumulated Deficit Accumulated Other Comprehensive Loss Treasury Stock Total Dentsply Sirona Equity Noncontrolling Interests Total Equity Balance at December 31, 2024 $ 3 $ 6,640 $ ( 835 ) $ ( 730 ) $ ( 3,136 ) $ 1,942 $ 1 $ 1,943 Net income (loss) — — 20 — — 20 ( 1 ) 19 Other comprehensive loss — — — 71 — 71 — 71 Stock-based compensation expense — 10 — — — 10 — 10 Funding of employee stock purchase plan — ( 3 ) — — 5 2 — 2 Restricted stock unit distributions — ( 17 ) — — 14 ( 3 ) — ( 3 ) Restricted stock unit dividends — 1 ( 1 ) — — — — — Cash dividends declared ($ 0.16 per share) — — ( 32 ) — — ( 32 ) — ( 32 ) Balance at March 31, 2025 $ 3 $ 6,631 $ ( 848 ) $ ( 659 ) $ ( 3,117 ) $ 2,010 $ — $ 2,010 Net loss — — ( 45 ) — — ( 45 ) 1 ( 44 ) Other comprehensive income — — — 18 — 18 — 18 Stock-based compensation expense — 9 — — — 9 — 9 Restricted stock unit distributions — ( 2 ) — — 2 — — — Cash dividends declared ($ 0.16 per share) — — ( 32 ) — — ( 32 ) — ( 32 ) Balance at June 30, 2025 $ 3 $ 6,638 $ ( 925 ) $ ( 641 ) $ ( 3,115 ) $ 1,960 $ 1 $ 1,961 See accompanying Notes to Unaudited Interim Consolidated Financial Statements. 7 DENTSPLY SIRONA INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited) Six Months Ended June 30, 2026 2025 Cash flows from operating activities: Net income (loss) $ 26 $ ( 25 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation 74 68 Amortization of intangible assets 90 99 Goodwill asset impairment — 156 Indefinite-lived intangible asset impairment — 79 Deferred income taxes ( 42 ) ( 136 ) Stock-based compensation expense 17 19 Other non-cash (income) expense ( 13 ) 19 Gain on disposal of assets ( 6 ) — Changes in operating assets and liabilities: Accounts and notes receivable-trade, net 56 ( 31 ) Inventories, net ( 32 ) ( 47 ) Prepaid expenses and other current assets ( 11 ) 26 Other noncurrent assets ( 2 ) 1 Accounts payable 16 ( 10 ) Accrued liabilities ( 38 ) ( 35 ) Income taxes 4 ( 55 ) Other noncurrent liabilities — ( 73 ) Net cash provided by operating activities 139 55 Cash flows from investing activities: Capital expenditures ( 96 ) ( 51 ) Cash received on derivative contracts — 1 Cash paid on derivative contracts — ( 2 ) Net investment hedge settlements ( 8 ) — Proceeds from sale of property, plant, and equipment 5 1 Other investing activities 7 — Net cash used in investing activities ( 92 ) ( 51 ) Cash flows from financing activities: Cash paid for treasury stock ( 12 ) — Proceeds from 364-day bridge loan — 435 Repayment of 364-day bridge loan — ( 435 ) Repayments on short-term borrowings ( 50 ) ( 413 ) Cash dividends paid ( 32 ) ( 64 ) Proceeds from long-term borrowings — 550 Repayments on long-term borrowings ( 31 ) ( 2 ) Cash paid for deferred financing costs — ( 13 ) Other financing activities, net ( 5 ) ( 3 ) Net cash (used in) provided by financing activities ( 130 ) 55 Effect of exchange rate changes on cash and cash equivalents ( 4 ) 28 Net (decrease) increase in cash and cash equivalents ( 87 ) 87 Cash and cash equivalents at beginning of period 326 272 Cash and cash equivalents at end of period $ 239 $ 359 Supplemental disclosures of cash flow information: Interest paid, net of amounts capitalized $ 43 $ 43 Non-cash investing activities: Property, plant and equipment in accounts payable at end of period $ 19 $ 25 Exchange of inventory for naming and other rights $ — $ 14 See accompanying Notes to Unaudited Interim Consolidated Financial Statements. 8 DENTSPLY SIRONA Inc. and Subsidiaries NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – BUSINESS AND BASIS OF PRESENTATION Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and the rules of the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the results for interim periods have been included. Certain prior period amounts have been reclassified to conform to current year presentation. Results for interim periods should not be considered indicative of results for a full year. These financial statements and related notes contain the accounts of DENTSPLY SIRONA Inc. and subsidiaries (“Dentsply Sirona” or the “Company”) on a consolidated basis and should be read in conjunction with the consolidated financial statements and notes included in the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026 (the “2025 Form 10-K”). All significant intercompany accounts and transactions are eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ materially from those estimates. Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU No. 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) Disaggregation of Income Statement Expenses,” which requires disaggregated disclosure of income statement expenses for public business entities (“PBEs”). In January 2025, the FASB issued ASU No. 2025-01 “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40),” which clarified the effective date for ASU No. 2024-03. These amendments are intended to provide more information about types of expenses in commonly presented expense captions. The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within fiscal years beginning after December 15, 2027, and early adoption is permitted. The Company does not expect to adopt this ASU before the required effective date. This ASU contains new disclosure requirements and will not impact results of operations, financial position, or cash flow. In September 2025, the FASB issued ASU No. 2025-06, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40),” which amends certain aspects of ASC 350-40 related to the accounting and disclosure of internally developed software costs. This amendment is intended to provide further guidance on how to evaluate whether the probable-to-complete recognition threshold has been met to capitalize costs for internal-use software. The amendments in this update are effective for annual reporting periods beginning after December 15, 2027, including interim reporting periods within those annual reporting periods. Early adoption is permitted in an interim or annual reporting period for which financial statements have not been issued or made available for issuance. Entities may apply the guidance prospectively, retrospectively, or via a modified prospective transition method. The Company is currently evaluating the impact on its consolidated financial statements and related disclosures. In September 2025, the FASB issued ASU No. 2025-07, “Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606),” which refines the scope of the guidance on derivatives in ASC 815 and clarifies the guidance on share-based payments from a customer in ASC 606. The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, including interim reporting periods within those annual reporting periods. Early adoption is permitted in an interim or annual reporting period for which financial statements have not been issued or made available for issuance. Entities may apply the guidance prospectively or on a modified retrospective basis. As of 9 June 30, 2026, the Company is not party to any arrangements that fall within the scope of this ASU. Accordingly, adoption of the ASU is not expected to have an impact on the Company’s consolidated financial statements or related disclosures at this time. The Company will continue to monitor its arrangements for applicability of the ASU in future periods. In November 2025, the FASB issued ASU No. 2025-09, “Derivatives and Hedging (Topic 815),” which amends certain aspects of the hedge accounting guidance in ASC 815. The amendments are intended to more closely align hedge accounting with the economics of an entity’s risk management activities. The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, including interim reporting periods within those annual reporting periods. Early adoption is permitted in any interim or annual period after the ASU’s issuance. Entities should apply the guidance prospectively. As of June 30, 2026, the Company is not party to any arrangements that fall within the scope of this ASU. Accordingly, adoption of the ASU is not expected to have an impact on the Company’s consolidated financial statements or related disclosures at this time. The Company will continue to monitor its arrangements for applicability of the ASU in future periods. Seasonality The Company’s business is subject to quarterly fluctuations in demand due to seasonality, which can impact the timing of the Company’s consolidated net sales, net income, and cash flows. Demand can fluctuate based on the timing of dental trade shows and variability in dental patient traffic, which can be exacerbated by seasonal or severe weather patterns. Some dental practices in certain countries may also delay purchasing equipment and restocking consumable products until year-end due to income tax benefits or for other financial planning reasons. In addition, the timing of holidays and vacations, particularly throughout Europe, may shift demand across quarters. Sales for the industry and the Company are generally stronger in the second and fourth quarters and weaker in the first and third quarters, due to the effects of the items noted above. Because of the seasonal nature of the Company’s business, the results of operations for any fiscal quarter will not necessarily be indicative of results to be expected for other quarters or a full fiscal year. NOTE 2 - REVENUE RECOGNITION Revenues are derived primarily from the sale of dental equipment and dental and healthcare consumable products. Revenues are measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. Net sales disaggregated by product category were as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2026 2025 2026 2025 Equipment & Instruments $ 137 $ 136 $ 272 $ 270 CAD/CAM 102 107 213 208 Connected Technology Solutions 239 243 $ 485 $ 478 Essential Dental Solutions 376 387 $ 726 $ 740 Orthodontics 40 63 $ 85 $ 122 Implants & Prosthetics 157 163 311 321 Orthodontic and Implant Solutions 197 226 $ 396 $ 443 Wellspect Healthcare 86 80 $ 171 $ 154 Total net sales $ 898 $ 936 $ 1,778 $ 1,815 The Company’s geographic regions for reporting net sales consist of countries in (i) North and South America (“Americas”), (ii) Europe, the Middle East, and Africa (“EMEA”), and (iii) Asia Pacific (“APAC”). Prior period net sales amounts have been recast to conform to the current period presentation, reflecting a shift to a regional geographic presentation, 10 which aligns with how the Company manages commercial activities and reports net sales internally. The change in regional geographic presentation was effective as of January 1, 2026. This change did not impact the Company’s consolidated financial statements. Net sales disaggregated by geographic region were as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2026 2025 2026 2025 Americas $ 316 $ 354 $ 646 $ 718 EMEA 452 450 887 857 APAC 130 132 245 240 Total net sales $ 898 $ 936 $ 1,778 $ 1,815 Contract Assets and Liabilities The Company does not typically have contract assets in the course of its business. Contract liabilities, which represent billings in excess of revenue recognized, are primarily related to deferred revenue associated with advanced billings for customer orthodontic treatments where the performance obligation has not yet been satisfied. The Company recorded deferred revenue of $ 71 million and $ 31 million in Accrued liabilities and Other noncurrent liabilities, respectively, in the Consolidated Balance Sheets at June 30, 2026. The Company recorded deferred revenue of $ 74 million and $ 33 million in Accrued liabilities and Other noncurrent liabilities, respectively, in the Consolidated Balance Sheets at December 31, 2025. During the three and six months ended June 30, 2026, the Company recognized approxima te ly $ 14 million and $ 50 million of net sales, respectively, which were previously deferred as of December 31, 2025. During the three and six months ended June 30, 2025, the Company recognized approximately $ 29 million and $ 70 million of net sales, respectively, which were previously deferred as of December 31, 2024. The Company expects to recognize most of the remaining deferred revenue in net sales within the next twelve months. Allowance for Doubtful Accounts Accounts and notes receivable-trade, net are stated net of allowances for doubtful accounts and trade discounts, which were $ 12 million at June 30, 2026 and $ 12 million at December 31, 2025. For the three and six months ended June 30, 2026 and 2025, changes to the provision for doubtful accounts, including write-offs of accounts receivable that were previously reserved, were not significant. Changes to this provision are included in Selling, general, and administrative expenses in the Consolidated Statements of Operations. NOTE 3 – STOCK-BASED COMPENSATION The amounts of stock-based compensation expense recorded in the Company’s Consolidated Statements of Operations were as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2026 2025 2026 2025 Cost of products sold $ — $ — $ 1 $ 1 Selling, general, and administrative expense 8 8 15 17 Research and development expense 1 1 1 1 Total stock-based compensation expense $ 9 $ 9 $ 17 $ 19 11 NOTE 4 – COMPREHENSIVE LOSS Changes in Accumulated other comprehensive income (loss) (“AOCI”), net of tax, by component for the six months ended June 30, 2026 and 2025 were as follows: (in millions) Foreign Currency Translation Loss Gain (Loss) on Cash Flow Hedges Gain (Loss) on Net Investment and Fair Value Hedges Pension Liability Loss Total Balance, net of tax, at December 31, 2025 $ ( 434 ) $ ( 7 ) $ ( 188 ) $ ( 10 ) $ ( 639 ) Other comprehensive (loss) income before reclassifications and tax impact ( 15 ) — 8 — ( 7 ) Tax expense ( 2 ) — ( 8 ) — ( 10 ) Other comprehensive loss, net of tax, before reclassifications ( 17 ) — — — ( 17 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax — 1 — — 1 Net (decrease) increase in other comprehensive loss ( 17 ) 1 — — ( 16 ) Balance, net of tax, at March 31, 2026 $ ( 451 ) $ ( 6 ) $ ( 188 ) $ ( 10 ) $ ( 655 ) Other comprehensive income (loss) before reclassifications and tax impact ( 1 ) — 7 — 6 Tax expense ( 5 ) — ( 2 ) — ( 7 ) Other comprehensive income (loss) before reclassifications and tax impact ( 6 ) — 5 — ( 1 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax — — — — — Net (decrease) increase in other comprehensive loss ( 6 ) — 5 — ( 1 ) Balance, net of tax, at June 30, 2026 $ ( 457 ) $ ( 6 ) $ ( 183 ) $ ( 10 ) $ ( 656 ) 12 (in millions) Foreign Currency Translation Gain (Loss) Loss on Cash Flow Hedges Gain (Loss) on Net Investment and Fair Value Hedges Pension Liability Loss Total Balance, net of tax, at December 31, 2024 $ ( 619 ) $ ( 10 ) $ ( 70 ) $ ( 31 ) $ ( 730 ) Other comprehensive income (loss) before reclassifications and tax impact 75 — ( 21 ) — 54 Tax benefit 12 — 5 — 17 Other comprehensive income (loss), net of tax, before reclassifications 87 — ( 16 ) — 71 Amounts reclassified from accumulated other comprehensive income (loss), net of tax — — — — — Net increase (decrease) in other comprehensive loss 87 — ( 16 ) — 71 Balance, net of tax, at March 31, 2025 $ ( 532 ) $ ( 10 ) $ ( 86 ) $ ( 31 ) $ ( 659 ) Other comprehensive income (loss) before reclassifications and tax impact 75 — ( 115 ) — ( 40 ) Tax benefit 31 — 27 — 58 Other comprehensive income (loss), net of tax, before reclassifications 106 — ( 88 ) — 18 Amounts reclassified from accumulated other comprehensive income (loss), net of tax — — — — — Net increase (decrease) in other comprehensive loss 106 — ( 88 ) — 18 Balance, net of tax, at June 30, 2025 $ ( 426 ) $ ( 10 ) $ ( 174 ) $ ( 31 ) $ ( 641 ) At June 30, 2026 and December 31, 2025, the cumulative tax adjustments were $ 161 million and $ 178 million, respectively, primarily related to foreign currency translation adjustments. The cumulative foreign currency translation adjustments included translation losses of $ 325 million and $ 289 million at June 30, 2026 and December 31, 2025, respectively, and cumulative losses on loans designated as hedges of net investments of $ 132 million and $ 145 million at June 30, 2026 and December 31, 2025, respectively. Reclassifications out of AOCI to the Consolidated Statements of Operations for the three and six months ended June 30, 2026 and 2025 were not significant. 13 NOTE 5 – EARNINGS (LOSS) PER COMMON SHARE The computations of basic and diluted earnings (loss) per common share were as follows: Basic earnings (loss) per common share Three Months Ended June 30, Six Months Ended June 30, (in millions, except per share amounts) 2026 2025 2026 2025 Net income (loss) attributable to Dentsply Sirona $ 37 $ ( 45 ) $ 27 $ ( 25 ) Weighted average common shares outstanding 199.7 199.3 199.8 199.2 Basic earnings (loss) per common share $ 0.18 $ ( 0.22 ) $ 0.14 $ ( 0.13 ) Diluted earnings (loss) per common share Three Months Ended June 30, Six Months Ended June 30, (in millions, except per share amounts) 2026 2025 2026 2025 Net income (loss) attributable to Dentsply Sirona $ 37 $ ( 45 ) $ 27 $ ( 25 ) Weighted average common shares outstanding 199.7 199.3 199.8 199.2 Incremental weighted average shares from assumed exercise of dilutive options from stock-based compensation awards 0.8 — 1.0 — Total weighted average diluted shares outstanding 200.5 199.3 200.8 199.2 Diluted earnings (loss) per common share $ 0.18 $ ( 0.22 ) $ 0.14 $ ( 0.13 ) Weighted average shares excluded from diluted common shares outstanding due to reported net loss for the period — 0.5 — 0.7 Weighted average shares excluded from diluted common shares outstanding due to antidilutive nature 11.9 5.7 10.3 4.6 On November 7, 2023, the Board of Directors approved an increase to the authorized share repurchase program of $ 1.0 billion. Share repurchases may be made through open market purchases, Rule 10b5-1 plans, accelerated share repurchases, privately negotiated transactions or other transactions in such amounts and at such times as the Company considers appropriate based upon prevailing market and business conditions and other factors. At June 30, 2026, the Company had authorization to repurchase $ 1.2 billion in shares of common stock remaining under the share repurchase program. For the three and six months ended June 30, 2026, the Company repurchased approximately 1.3 million shares of common stock outstanding through open market purchases at a cost of $ 12 million. NOTE 6 – SEGMENT INFORMATION The Company has four operating segments, organized primarily by product, which are also the Company’s reportable segments. These are (i) Connected Technology Solutions, (ii) Essential Dental Solutions, (iii) Orthodontic and Implant Solutions, and (iv) Wellspect Healthcare. These operating segments are identified in accordance with how the Company’s chief operating decision maker (“CODM”) regularly reviews financial results and uses this information to evaluate the Company’s performance and allocate resources. The Company’s CODM is the Chief Executive Officer. 14 The Company’s reportable segment information was as follows: Three Months Ended June 30, (in millions) 2026 Connected Technology Solutions Essential Dental Solutions Orthodontic and Implant Solutions Wellspect Healthcare Total Net sales $ 239 $ 376 $ 197 $ 86 $ 898 Adjusted cost of products sold (a) 148 119 86 36 Adjusted selling expenses (b) 53 72 59 15 Adjusted general and administrative (“G&A”) expenses (b) 20 20 18 8 Adjusted research and development (“R&D”) expenses (c) 20 7 13 3 Segment adjusted operating income $ ( 2 ) $ 158 $ 21 $ 24 $ 201 Reconciling items (income) expense: Unallocated corporate costs (d) $ 68 Interest expense, net 22 Other income ( 12 ) Restructuring and other costs 2 Amortization of intangibles 48 Depreciation resulting from the fair value step-up of property, plant, and equipment from business combinations 1 Income before income taxes $ 72 (a) Adjusted cost of products sold represents expenses adjusted to exclude intangible amortization expense, step-up depreciation expense, and other restructuring costs. (b) Adjusted selling and adjusted G&A expenses represent expenses adjusted to exclude intangible amortization expense, other acquisition costs, step-up depreciation expense, and other restructuring costs. (c) Adjusted R&D expenses represent expenses adjusted to exclude other restructuring costs. (d) Unallocated corporate costs consist of general corporate expenses including corporate headcount costs, depreciation and amortization, certain professional service fees, and other operating costs which are not assigned to a specific segment. 15 Three Months Ended June 30, (in millions) 2025 Connected Technology Solutions Essential Dental Solutions Orthodontic and Implant Solutions Wellspect Healthcare Total Net sales $ 243 $ 387 $ 226 $ 80 $ 936 Adjusted cost of products sold (a) 140 138 98 33 Adjusted selling expenses (b) 54 72 54 13 Adjusted G&A expenses (b) 20 20 17 7 Adjusted R&D expenses (c) 17 6 12 2 Segment adjusted operating income $ 12 $ 151 $ 45 $ 25 $ 233 Reconciling items (income) expense: Unallocated corporate costs (d) $ 68 Interest expense, net 24 Other income 1 Goodwill and intangible asset impairments 235 Restructuring and other costs 4 Amortization of intangibles 54 Loss before income taxes $ ( 153 ) (a) Adjusted cost of products sold represents expenses adjusted to exclude intangible amortization expense, step-up depreciation expense, and other restructuring costs. (b) Adjusted selling and adjusted G&A expenses represent expenses adjusted to exclude intangible amortization expense, other acquisition costs, step-up depreciation expense, and other restructuring costs. (c) Adjusted R&D expenses represent expenses adjusted to exclude other restructuring costs. (d) Unallocated corporate costs consist of general corporate expenses including corporate headcount costs, depreciation and amortization, certain professional service fees, and other operating costs which are not assigned to a specific segment. 16 Six Months Ended June 30, (in millions) 2026 Connected Technology Solutions Essential Dental Solutions Orthodontic and Implant Solutions Wellspect Healthcare Total Net sales $ 485 $ 726 $ 396 $ 171 $ 1,778 ​ Adjusted cost of products sold (a) 304 251 190 73 Adjusted selling expenses (b) 106 141 113 29 Adjusted G&A expenses (b) 43 40 39 16 Adjusted R&D expenses (c) 40 15 25 6 Segment adjusted operating income $ ( 8 ) $ 279 $ 29 $ 47 $ 347 Reconciling items (income) expense: Unallocated corporate costs (d) $ 140 Interest expense, net 46 Other income ( 29 ) Restructuring and other costs 69 Amortization of intangibles 90 Depreciation resulting from the fair value step-up of property, plant, and equipment from business combinations 1 Income before income taxes $ 30 (a) Adjusted cost of products sold represents expenses adjusted to exclude intangible amortization expense, step-up depreciation expense, and other restructuring costs. (b) Adjusted selling and adjusted G&A expenses represent expenses adjusted to exclude intangible amortization expense, other acquisition costs, step-up depreciation expense, and other restructuring costs. (c) Adjusted R&D expenses represent expenses adjusted to exclude other restructuring costs. (d) Unallocated corporate costs consist of general corporate expenses including corporate headcount costs, depreciation and amortization, certain professional service fees, and other operating costs which are not assigned to a specific segment. 17 Six Months Ended June 30, (in millions) 2025 Connected Technology Solutions Essential Dental Solutions Orthodontic and Implant Solutions Wellspect Healthcare Total Net sales $ 478 $ 740 $ 443 $ 154 $ 1,815 Adjusted cost of products sold (a) 275 262 191 60 Adjusted selling expenses (b) 112 142 108 26 Adjusted G&A expenses (b) 38 38 39 13 Adjusted R&D expenses (c) 34 11 23 5 Segment adjusted operating income $ 19 $ 287 $ 82 $ 50 $ 438 Reconciling items (income) expense: Unallocated corporate costs (d) $ 155 Interest expense, net 43 Other expense (income), net 1 Goodwill and intangible asset impairments 235 Restructuring and other costs 13 Amortization of intangibles 99 Depreciation resulting from the fair value step-up of property, plant, and equipment from business combinations 1 Loss before income taxes $ ( 109 ) (a) Adjusted cost of products sold represents expenses adjusted to exclude intangible amortization expense, step-up depreciation expense, and other restructuring costs. (b) Adjusted selling and adjusted G&A expenses represent expenses adjusted to exclude intangible amortization expense, other acquisition costs, step-up depreciation expense, and other restructuring costs. (c) Adjusted R&D expenses represent expenses adjusted to exclude other restructuring costs. (d) Unallocated corporate costs consist of general corporate expenses including corporate headcount costs, depreciation and amortization, certain professional service fees, and other operating costs which are not assigned to a specific segment. Depreciation and Amortization Three Months Ended June 30, Six Months Ended June 30, (in millions) 2026 2025 2026 2025 Connected Technology Solutions $ 30 $ 46 $ 67 $ 89 Essential Dental Solutions 8 8 16 17 Orthodontic and Implant Solutions 36 23 58 42 Wellspect Healthcare 5 5 11 7 All other (a) 6 6 12 12 Total $ 85 $ 88 $ 164 $ 167 (a) Includes unallocated corporate costs for depreciation and amortization. 18 NOTE 7 – INVENTORIES Inventories, net were as follows: (in millions) June 30, 2026 December 31, 2025 Raw materials and supplies $ 177 $ 199 Work-in-process 96 82 Finished goods 392 361 Inventories, net $ 665 $ 642 The Company’s inventory reserve for excess and obsolete inventory was $ 91 million and $ 95 million at June 30, 2026 and December 31, 2025, respectively. NOTE 8 – RESTRUCTURING AND OTHER COSTS Restructuring and other costs were recorded in the Consolidated Statements of Operations as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2026 2025 2026 2025 Selling, general, and administrative expenses — — — 1 Restructuring and other costs 2 4 69 13 Total restructuring and other costs $ 2 $ 4 $ 69 $ 14 Restructuring and other costs of $ 69 million recorded in the first six months of 2026 consisted primarily of employee severance benefits and other restructuring costs for various restructuring actions, including for the plan approved by the Board of Directors of the Company on February 24, 2026 (the “2026 Plan”). With the 2026 Plan, the Company seeks to improve operational performance and drive stockholder value creation. As of June 30, 2026, the Company has incurred $ 57 million in non-recurring restructuring charges under the 2026 Plan, primarily related to severance payments, employee benefits, and employee transition. In total, the Company expects to incur non-recurring charges in the approximate range of $ 60 million to $ 65 million related to the 2026 Plan, the majority of which will be expensed and paid in cash in 2026 and 2027. The liabilities associated with the Company’s restructuring plans are recorded in Accrued liabilities and Other noncurrent liabilities in the Consolidated Balance Sheets. Activity in the Company’s restructuring accruals at June 30, 2026 was as follows: Severance (in millions) 2024 and Prior Plans 2026 Plan Other Actions Total Balance at December 31, 2025 $ 3 $ — $ 7 $ 10 Provisions — 59 10 69 Amounts applied ( 2 ) ( 15 ) ( 4 ) ( 21 ) Change in estimates — ( 3 ) ( 2 ) ( 5 ) Balance at June 30, 2026 $ 1 $ 41 $ 11 $ 53 19 Other Restructuring Costs (in millions) 2024 and Prior Plans 2026 Plan Other Actions Total Balance at December 31, 2025 $ — $ — $ 2 $ 2 Provisions — 1 4 5 Amounts applied — ( 1 ) ( 3 ) ( 4 ) Balance at June 30, 2026 $ — $ — $ 3 $ 3 The cumulative amounts for the provisions and adjustments and amounts applied for all the plans by segment were as follows: (in millions) December 31, 2025 Provisions Amounts Applied Change in Estimates June 30, 2026 Connected Technology Solutions $ 1 $ 24 $ ( 4 ) $ ( 2 ) $ 19 Essential Dental Solutions 4 19 ( 10 ) ( 3 ) 10 Orthodontic and Implant Solutions 3 20 ( 7 ) 1 17 Wellspect Healthcare 2 5 — ( 1 ) 6 All Other 2 6 ( 4 ) — 4 Total $ 12 $ 74 $ ( 25 ) $ ( 5 ) $ 56 NOTE 9 – FINANCIAL INSTRUMENTS AND DERIVATIVES Derivative Instruments and Hedging Activities The Company’s activities expose it to a variety of market risks, which primarily include the risks related to the effects of changes in foreign currency exchange rates and interest rates. These financial exposures are monitored and managed by the Company as part of its overall risk management program. The objective of this risk management program is to reduce the volatility that these market risks may have on the Company’s operating results and cash flows. The Company employs derivative financial instruments to hedge certain anticipated transactions, firm commitments, or assets and liabilities denominated in foreign currencies. Additionally, the Company utilizes interest rate swaps to convert fixed rate debt into variable rate debt or vice versa. The Company does not hold derivative instruments for trading or speculative purposes. The following summarizes the notional amounts of hedges of net investments, fair value hedges, and derivative instruments not designated as hedges for accounting purposes by derivative instrument type at June 30, 2026 and the notional amounts expected to mature during the next 12 months. 20 (in millions) Aggregate Notional Amount Aggregate Notional Amount Maturing within 12 Months Hedges of Net Investments Foreign exchange forward contracts $ 765 $ 147 Cross currency basis swaps 1,405 — Total derivative instruments designated as hedges of net investments $ 2,170 $ 147 Fair Value Hedges Interest rate swaps $ 150 $ — Total derivative instruments designated as fair value hedges $ 150 $ — Derivative Instruments not Designated as Hedges Foreign exchange forward contracts $ 980 $ 980 Total derivative instruments not designated as hedges $ 980 $ 980 Hedges of Net Investments in Foreign Operations The Company has significant investments in foreign subsidiaries. The net assets of these subsidiaries are exposed to volatility in foreign currency exchange rates. The Company employs both derivative and non-derivative financial instruments to hedge a portion of these exposures. The derivative instruments consist of foreign exchange forward contracts and cross-currency basis swaps. The non-derivative instruments consist of foreign currency-denominated debt held at the parent company level. Translation gains and losses related to the net assets of the foreign subsidiaries are offset by gains and losses in the aforementioned instruments, which are designated as hedges of net investments, and the intrinsic value changes in these instruments are recorded on AOCI, net of tax effects. The time value component of the derivative instrument’s fair value is amortized on a straight-line basis and recognized in Other (income) expense, net in the Consolidated Statements of Operations over the term of the hedge. Cash flows associated with these instruments are generally presented within investing activities in the Consolidated Statements of Cash Flows. However, cash flows attributable to other-than-insignificant financing elements are presented within financing activities. The fair value of the foreign currency exchange forward contracts and cross-currency basis swaps is the estimated amount the Company would receive or pay at the reporting date, taking into account the effective interest rates and foreign exchange rates. The effective portion of the change in the value of these derivatives is recorded in AOCI, net of tax effects. In January 2026, the Company settled Swiss franc foreign exchange forward contracts designated as net investment hedges with an aggregate notional amount of 100 million Swiss francs, resulting in a net cash payment of approximately $ 7 million. The effective portion of the hedge was recognized in AOCI. The Company subsequently entered into Swiss franc foreign exchange forward contracts with an aggregate notional amount of 200 million Swiss francs that are designated as net investment hedges and mature through October 2029. These contracts include excluded components, primarily forward points, for which gains and losses are recognized in earnings as incurred and presented within the operating activities section of the Consolidated Statement of Cash Flows. Derivative Instruments Not Designated as Hedges The Company enters into derivative instruments with the intent to partially mitigate the foreign exchange revaluation risk associated with recorded assets and liabilities that are denominated in a non-functional currency. The Company primarily uses foreign exchange forward contracts to hedge these risks. The gains and losses on these derivative transactions offset the gains and losses generated by the revaluation of the underlying non-functional currency balances and are recorded in Other (income) expense, net in the Consolidated Statements of Operations. Any cash flows associated with these instruments are included in operating activities in the Consolidated Statements of Cash Flows. Derivative Instrument Activity 21 The effects of derivative hedging instruments on the Consolidated Statements of Operations and Consolidated Statements of Comprehensive Loss were as follows: Three Months Ended June 30, 2026 2025 (in millions) Cost of products sold Interest expense, net Other (income) expense, net Cost of products sold Interest expense, net Other (income) expense, net Total amounts of line items presented in the Statement of Operations in which the effects of cash flow, net investment or fair value hedges are recorded $ 405 $ 22 $ ( 12 ) $ 446 $ 24 $ 1 (Gain) loss on Hedges of Net Investment Cross currency basis swaps $ — $ — $ ( 10 ) $ — $ — $ ( 2 ) Foreign exchange forward contracts — — ( 7 ) — — ( 6 ) (Gain) loss on Fair Value Hedges: Interest rate swaps $ — $ 2 $ — $ — $ 2 $ — Foreign exchange forward contracts — — — — — — (Gain) loss on Derivative Instruments not Designated as Hedges Foreign exchange forward contracts $ — $ — $ ( 3 ) $ — $ — $ 13 Amount of Gain or (Loss) Recognized in AOCI Amount of Gain or (Loss) Reclassified from AOCI into Income Three Months Ended June 30, Consolidated Statements of Operations Location Three Months Ended June 30, (in millions) 2026 2025 2026 2025 Hedges of Net Investments Cross currency basis swaps $ 2 $ ( 24 ) Other expense (income), net $ — $ — Foreign exchange forward contracts 5 ( 91 ) Other expense (income), net — — 22 Six Months Ended 2026 2025 (in millions) Cost of products sold Interest expense, net Other expense (income), net Cost of products sold Interest expense, net Other expense (income), net Total amounts of line items presented in the Statement of Operations in which the effects of cash flow, net investment or fair value hedges are recorded $ 858 $ 46 $ ( 29 ) $ 859 $ 43 $ 1 (Gain) loss on Hedges of Net Investment Cross currency basis swaps $ — $ — $ ( 21 ) $ — $ — $ ( 2 ) Foreign exchange forward contracts — — ( 12 ) — — ( 12 ) (Gain) loss on Fair Value Hedges: Interest rate swaps $ — $ 3 $ — $ — $ 3 $ — Foreign exchange forward contracts — — — — — — (Gain) loss on Derivative Instruments not Designated as Hedges Foreign exchange forward contracts $ — $ — $ ( 5 ) $ — $ — $ 12 Amount of Gain or (Loss) Recognized in AOCI Amount of Gain or (Loss) Reclassified from AOCI into Income Six Months Ended Consolidated Statements of Operations Location Six Months Ended (in millions) 2026 2025 2026 2025 Hedges of Net Investments Cross currency basis swaps $ 4 $ ( 29 ) Other expense (income), net $ — $ — Foreign exchange forward contracts 11 ( 107 ) Other expense (income), net — — 23 Consolidated Balance Sheets Location of Derivative Fair Values The fair value and the financial statement presentation of the Company’s derivatives in the Consolidated Balance Sheets were as follows: June 30, 2026 (in millions) Prepaid Expenses and Other Current Assets Other Noncurrent Assets Accrued Liabilities Other Noncurrent Liabilities Designated as Hedges: Foreign exchange forward contracts $ — $ 5 $ 7 $ 20 Interest rate swaps — — 4 11 Cross currency basis swaps 43 — — 70 Total $ 43 $ 5 $ 11 $ 101 Not Designated as Hedges: Foreign exchange forward contracts $ 12 $ — $ 22 $ — Total $ 12 $ — $ 22 $ — December 31, 2025 (in millions) Prepaid Expenses and Other Current Assets Other Noncurrent Assets Accrued Liabilities Other Noncurrent Liabilities Designated as Hedges: Foreign exchange forward contracts $ — $ — $ 21 $ 40 Interest rate swaps — — 3 11 Cross currency basis swaps 42 — — 73 Total $ 42 $ — $ 24 $ 124 Not Designated as Hedges: Foreign exchange forward contracts $ 8 $ — $ 6 $ — Total $ 8 $ — $ 6 $ — Balance Sheet Offsetting Substantially all of the Company’s derivative contracts are subject to netting arrangements, whereby the right to offset occurs in the event of default or termination in accordance with the terms of the arrangements with the counterparty. While these contracts contain the enforceable right to offset through netting arrangements with the same counterparty, the Company elects to present them on a gross basis in the Consolidated Balance Sheets. 24 Offsetting of financial assets and liabilities under netting arrangements at June 30, 2026 was as follows: Gross Amounts Not Offset in the Consolidated Balance Sheets (in millions) Gross Amounts Recognized Gross Amount Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received/Pledged Net Amount Assets Foreign exchange forward contracts $ 17 $ — $ 17 $ ( 17 ) $ — $ — Cross currency basis swaps 43 — 43 ( 43 ) — — Total assets $ 60 $ — $ 60 $ ( 60 ) $ — $ — Liabilities Foreign exchange forward contracts $ 49 $ — $ 49 $ ( 20 ) $ — $ 29 Interest rate swaps 15 — 15 ( 3 ) — 12 Cross currency basis swaps 70 — 70 ( 37 ) — 33 Total liabilities $ 134 $ — $ 134 $ ( 60 ) $ — $ 74 Offsetting of financial assets and liabilities under netting arrangements at December 31, 2025 was as follows: Gross Amounts Not Offset in the Consolidated Balance Sheets (in millions) Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received/Pledged Net Amount Assets Foreign exchange forward contracts $ 8 $ — $ 8 $ ( 8 ) $ — $ — Cross currency basis swaps 42 — 42 ( 42 ) — — Total assets $ 50 $ — $ 50 $ ( 50 ) $ — $ — Liabilities Foreign exchange forward contracts $ 67 $ — $ 67 $ ( 18 ) $ — $ 49 Commodity contracts Interest rate swaps 14 — 14 — — 14 Cross currency basis swaps 73 — 73 ( 32 ) — 41 Total liabilities $ 154 $ — $ 154 $ ( 50 ) $ — $ 104 25 NOTE 10 – FAIR VALUE MEASUREMENT The estimated fair and carrying values of the Company’s total debt were $ 2,159 million and $ 2,224 million, respectively, at June 30, 2026. At December 31, 2025, the estimated fair and carrying values were $ 2,217 million and $ 2,329 million, respectively. The fair value of long-term debt is determined by discounting future cash flows using interest rates available at June 30, 2026 and December 31, 2025 and interest rates for companies with similar credit ratings for issuances with similar terms and maturities. It is considered a Level 2 fair value measurement for disclosure purposes. Assets and liabilities measured at fair value on a recurring basis The Company’s financial assets and liabilities set forth by level within the fair value hierarchy that were accounted for at fair value on a recurring basis were as follows: June 30, 2026 (in millions) Total Level 1 Level 2 Level 3 Assets Interest rate swap asset related to long-term debt $ 15 $ — $ 15 $ — Cross currency basis swaps $ 43 $ — $ 43 $ — Foreign exchange forward contracts $ 17 $ — $ 17 $ — Total assets $ 75 $ — $ 75 $ — Liabilities Interest rate swaps $ 15 $ — $ 15 $ — Cross currency basis swaps 70 — 70 — Foreign exchange forward contracts 49 — 49 — Total liabilities $ 134 $ — $ 134 $ — December 31, 2025 (in millions) Total Level 1 Level 2 Level 3 Assets Interest rate swap asset related to long-term debt $ 14 $ — $ 14 $ — Foreign exchange forward contracts 8 — 8 — Total assets $ 22 $ — $ 22 $ — Liabilities Interest rate swaps $ 14 $ — $ 14 $ — Cross currency basis swaps 31 — 31 — Foreign exchange forward contracts 67 — 67 — Total liabilities $ 112 $ — $ 112 $ — Derivative valuations are based on observable inputs to the valuation model including interest rates, foreign currency exchange rates, and credit risks. There were no transfers between fair value measurement levels during the six months ended June 30, 2026. NOTE 11 – INCOME TAXES The effective tax rates for the three months ended June 30, 2026 and 2025 were 50.0 % and 71.2 %, respectively. The effective tax rates for the six months ended June 30, 2026 and 2025 were 13.8 % and 76.9 %, respectively. The decrease in the effective tax rate is primarily driven by impairments which were recorded in the three and six months ended June 30, 2025, as well as changes in valuation allowances in 2025 and 2026. 26 NOTE 12 – FINANCING ARRANGEMENTS The Company has a five-year senior unsecured multi-currency revolving facility, for an aggregate principal amount of $ 700 million, that expires on May 12, 2028. The Company also has a $ 700 million commercial paper program. The $ 700 million multi-currency revolving credit facility serves as a back-up to the commercial paper facility, resulting in an aggregate of $ 700 million as the total available credit under the commercial paper facility and the multi-currency revolving credit facility. The Company had $ 35 million in outstanding borrowings under the commercial paper facility at June 30, 2026 and $ 82 million in outstanding borrowings under the commercial paper facility at December 31, 2025, and the Company had no outstanding borrowings under the multi-currency revolving credit facility at June 30, 2026 and December 31, 2025. The Company also has access to $ 18 million in uncommitted short-term financing available under lines of credit from various financial institutions, which is reduced by other outstanding short-term borrowings of less than $ 1 million. At June 30, 2026, the weighted-average interest rate for short-term debt was 4.6 %. At June 30, 2026, the Company had $ 683 million of borrowings available under lines of credit, including lines available under its short-term arrangements and revolving credit facility. In February 2026, the Company repaid in full € 26 million aggregate principal amount of its 2.1 % private placement notes upon their scheduled maturity. The repayment was funded with available cash. No amounts were outstanding under these notes at June 30, 2026. The repayment is reflected in cash flows used in financing activities for the six months ended June 30, 2026. The Company’s private placement notes and revolving credit facility contain financial covenants, including maximum Total Leverage Ratio and maximum Senior Leverage Ratio requirements. At June 30, 2026, the Company was in compliance with all of its covenants. Interest expense, net includes interest income of $ 4 million and $ 3 million for the three months ended June 30, 2026 and 2025, respectively. Interest expense, net includes interest income of $ 6 million and $ 7 million for the six months ended June 30, 2026 and 2025, respectively. Interest income primarily relates to interest-bearing cash and cash equivalents and, for the three and six months ended June 30, 2026, includes approximately $ 2 million worth of interest associated with tariff refunds. NOTE 13 – GOODWILL AND INTANGIBLE ASSETS The Company’s policy is to assess goodwill and indefinite-lived intangible assets for impairment annually as of April 1, with more frequent assessments if events or changes in circumstances indicate a given asset might be impaired. For the April 1, 2026 annual goodwill impairment assessment, the Company performed a qualitative assessment for Essential Dental Solutions and Wellspect Healthcare, the two reporting units with goodwill balances. Based on the totality of the factors considered, the Company concluded that the fair value of each reporting unit was expected to exceed its carrying amount and no goodwill impairment charges were recognized. Indefinite-lived intangible assets were assessed either through a computation of fair value using an income approach, specifically a relief from royalty method for acquired trade names and trademarks, or through a qualitative assessment for in-process research and development (“R&D”). The Company’s significant assumptions in the relief from royalty method include, but were not limited to, discount rates (ranging from 12 % to 16 %), revenue growth rates (including perpetual growth rates) and royalty rates, all of which were determined using the judgment of management. These assumptions for indefinite-lived intangible asset tests were developed in consideration of current market conditions and future expectations which include, but are not limited to, impact from competition and new product developments. Based on these assessments, the Company concluded that the fair values of its indefinite-lived intangible assets exceeded their respective carrying values, and therefore no impairment charges were recognized as a result of the annual impairment testing performed as of April 1, 2026. There is a risk of future impairment charges if there is a decline in the fair value of the reporting units or indefinite-lived intangible assets as a result of, among other things, actual financial results that are lower than forecasts, an adverse change in valuation assumptions, a decline in equity valuations, increases in interest rates, or changes in the use of intangible assets. There can be no assurance that the Company’s future asset impairment testing will not result in a material charge to earnings. 27 A reconciliation of changes in the Company’s goodwill by reportable segment is as follows: (in millions) Connected Technology Solutions Essential Dental Solutions Orthodontic and Implant Solutions Wellspect Healthcare Total Balance at December 31, 2025 Goodwill $ 291 $ 860 $ 1,298 $ 288 $ 2,737 Accumulated impairment losses ( 291 ) — ( 1,298 ) — ( 1,589 ) Goodwill, net at December 31, 2025 — 860 — 288 1,148 Translation — ( 6 ) — ( 4 ) ( 10 ) Impairment — — — — — Goodwill, net at June 30, 2026 $ — $ 854 $ — $ 284 $ 1,138 Accumulated impairment losses at June 30, 2026 ( 291 ) — ( 1,298 ) — ( 1,589 ) Identifiable definite-lived and indefinite-lived intangible assets were as follows: June 30, 2026 December 31, 2025 (in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology and patents $ 1,749 $ ( 1,359 ) $ 390 $ 1,783 $ ( 1,334 ) $ 449 Trade names and trademarks 83 ( 78 ) 5 84 ( 79 ) 5 Licensing agreements 40 ( 27 ) 13 42 ( 29 ) 13 Customer relationships 1,082 ( 868 ) 214 1,098 ( 847 ) 251 Total definite-lived 2,954 ( 2,332 ) 622 3,007 ( 2,289 ) 718 Indefinite-lived trade names and trademarks $ 243 $ — $ 243 $ 251 $ — $ 251 In-process R&D 5 — 5 5 — 5 Total indefinite-lived 248 — 248 256 — 256 Total identifiable intangible assets $ 3,202 $ ( 2,332 ) $ 870 $ 3,263 $ ( 2,289 ) $ 974 During the second quarter of 2026, following updates to the Company’s technology strategy made during the quarter, management reassessed the remaining useful life of the developed technology intangible asset associated with the Byte acquisition. Based on the expected migration of certain functionality to the DS Core platform, management concluded that the remaining period over which the asset is expected to provide economic benefit had shortened. Accordingly, the Company revised the asset’s remaining useful life, and its remaining carrying value is being amortized through February 2028. The revision was accounted for prospectively as a change in accounting estimate and increased amortization expense by approximately $ 14 million during the quarter ended June 30, 2026. 28 NOTE 14 – COMMITMENTS AND CONTINGENCIES Contingencies On June 2, 2022, the Company was named as a defendant in a putative class action filed in the U.S. District Court for the Southern District of Ohio captioned City of Miami General Employees’ & Sanitation Employees’ Retirement Trust v. Casey, Jr. et al., No. 2:22-cv-02371, and on July 28, 2022, the Company was named as a defendant in a putative class action filed in the U.S. District Court for the Southern District of New York (the “SDNY Court”) captioned San Antonio Fire and Police Pension Fund v. Dentsply Sirona Inc. et al., No. 1:22-cv-06339 (together, the “Securities Litigation”). The complaints in the Securities Litigation are substantially similar and both allege that, during the period from June 9, 2021 through May 9, 2022, the Company, Mr. Donald M. Casey Jr., the Company’s former Chief Executive Officer, and Mr. Jorge Gomez, the Company’s former Chief Financial Officer, violated U.S. securities laws by, among other things, making materially false and misleading statements or omissions, including regarding the manner in which the Company recognized revenue tied to distributor rebate and incentive programs. On March 27, 2023, the Court in the Southern District of Ohio ordered the transfer of the putative class action to the SDNY Court. On June 1, 2023, the SDNY Court consolidated the two separate actions under case No. 1:22-cv-06339 and appointed as lead plaintiffs for the putative class the City of Birmingham Retirement and Relief System, the El Paso Firemen & Policemen’s Pension Fund, and the Wayne County Employees’ Retirement System (collectively, the “Lead Plaintiffs”). Lead Plaintiffs filed an amended class action complaint on July 28, 2023 (the “Amended Complaint”). In addition to asserting the same claims against the Company, Mr. Casey, and Mr. Gomez, the Amended Complaint added the Company’s former Chief Accounting Officer, Mr. Ranjit S. Chadha, as a defendant (collectively, “Defendants”). On October 10, 2023, Defendants filed a motion to dismiss the Amended Complaint. Lead Plaintiffs opposed the motion. On May 1, 2024, the SDNY Court granted the motion to dismiss as to Mr. Chadha and granted in part and denied in part the motion to dismiss as to the Company, Mr. Casey, and Mr. Gomez. The Company’s answer to the Amended Complaint was filed on May 21, 2024. On November 15, 2024, Lead Plaintiffs filed a motion to certify the matter as a class action, to appoint Lead Plaintiffs as class representatives, and to appoint class counsel. Defendants opposed the motion. On July 10, 2025, the SDNY Court granted Lead Plaintiffs’ motion for class certification, appointed the Lead Plaintiffs as class representatives, and appointed counsel for Lead Plaintiffs as class counsel. On November 3, 2025, Defendants and Lead Plaintiffs cross-moved for partial summary judgment. The motions for partial summary judgment were fully briefed on January 19, 2026. The Company has recognized a liability as of June 30, 2026, with an offsetting insurance receivable, resulting in no impact to the Consolidated Statements of Operations in the three and six months ended June 30, 2026. Separately, on July 13, 2023, Company stockholder George Presura filed a stockholder derivative suit in the Delaware Court of Chancery captioned George Presura, Derivatively on Behalf of Nominal Defendant Dentsply Sirona Inc. v. Donald M. Casey Jr. et al. and Dentsply Sirona, Inc., No. 2023-0708-NAC (the “Presura Derivative Litigation”). The complaint, filed derivatively on behalf of the Company, asserts claims against current and former members of the Company’s Board of Directors and current and former executive officers, including Messrs. Casey and Gomez. The derivative complaint in this case contains allegations similar to those in the Securities Litigation, and it alleges that during the period from June 9, 2021 through July 13, 2023, various of the defendants breached fiduciary duties, committed corporate waste, and misappropriated information to conduct insider trading by making materially false and misleading statements or omissions regarding the Company’s recognition of revenue tied to distributor rebate and incentive programs and distributor inventory levels. On August 4, 2023, the Delaware Court of Chancery stayed the Presura Derivative Litigation until the earlier of public announcement of a settlement of the Securities Litigation or resolution of the pending motion to dismiss in the Securities Litigation. Additionally, on March 26, 2024, Company stockholder Calvin Snee filed a stockholder derivative suit in the Delaware Court of Chancery captioned Calvin Snee, derivatively on behalf of Dentsply Sirona Inc. v. Donald M. Casey Jr., et al. and Dentsply Sirona Inc, No. 2024-0308 (the “Snee Derivative Litigation”). The complaint, filed derivatively on behalf of the Company, asserts claims against current and former members of the Company’s Board of Directors and current and former executive officers, including Messrs. Casey and Gomez. The derivative complaint in this case contains allegations similar to those in the Presura Derivative Litigation and the Securities Litigation, and it alleges that beginning in 2021, various of the defendants breached fiduciary duties, misappropriated information to conduct insider trading, and were unjustly enriched by making materially false and misleading statements or omissions regarding the Company’s recognition of revenue tied to distributor rebate and incentive programs and distributor inventory levels. On May 2, 2024, the Delaware Court of Chancery issued an order consolidating and staying the Presura Derivative Litigation and Snee Derivative Litigation. On July 19, 2024, Company stockholder Frank Manfre filed a stockholder derivative suit in the Delaware Court of Chancery captioned Frank Manfre, derivatively on behalf of nominal defendant Dentsply Sirona Inc. v. Donald M. Casey Jr. et 29 al. and Dentsply Sirona Inc., No. 2024-0763 (the “Manfre Derivative Litigation”). The complaint asserts claims against current and former members of the Company’s Board of Directors and current and former executive officers, including Messrs. Casey and Gomez. The complaint in this case contains allegations similar to those in the Snee Derivative Litigation, the Presura Derivative Litigation, and the Securities Litigation, and it alleges that beginning in 2021, various of the defendants breached fiduciary duties, misappropriated information to conduct insider trading, and were unjustly enriched by making materially false and misleading statements or omissions regarding the Company’s recognition of revenue tied to distributor rebate and incentive programs and distributor inventory levels. On September 19, 2024, the Delaware Court of Chancery issued an order consolidating and staying the Manfre Derivative Litigation, Presura Derivative Litigation, and Snee Derivative Litigation. On November 26, 2024, the Company was named as a defendant in a putative class action filed in the SDNY Court captioned North Collier Fire Control and Rescue District Firefighters’ Retirement Plan v. Dentsply Sirona Inc., et al., No. 1:24-cv-09083 (the “North Collier Action”). On December 18, 2024, the Company was named as a defendant in a putative class action filed in the SDNY Court captioned Calvin v. Dentsply Sirona Inc., et al., No. 1:24-cv-09764 (the “Calvin Action”), and on December 19, 2024, the Company was named as a defendant in a putative class action filed in the SDNY Court captioned Key West Police & Fire Pension Fund v. Dentsply Sirona Inc., et al., No. 1:24-cv-09819 (the “Key West Action”). The complaints in these three cases allege that, for different alleged class periods over the period from May 6, 2021 through November 6, 2024, the Company and certain then-current and former officers violated U.S. securities laws by, among other things, making materially false and misleading statements or omissions, including regarding the performance of the Company’s Byte aligners business, following the Company’s acquisition of Byte LLC in December 2020. On February 21, 2025, the SDNY Court entered an order consolidating the North Collier Action, the Calvin Action, and the Key West Action under the caption In re Dentsply Sirona, Inc. Securities Litigation, No. 24-cv-9083 (the “2024 Securities Litigation”), and appointed lead plaintiffs and lead counsel for the consolidated case. An amended complaint was filed on May 9, 2025 naming the Company and Simon Campion, Glenn Coleman, Andreas Frank, Erania Brackett, Neeraj Gunsagar, Donald Casey, and Jorge Gomez as defendants and alleging a class period that runs from January 4, 2021 through February 26, 2025. On July 8, 2025, the Company and the individual defendants filed motions to dismiss the amended complaint. On January 16, 2026, the SDNY Court granted the motion to dismiss as to Mr. Gomez and granted in part and denied in part the motions to dismiss as to the Company and all other defendants. On February 26, 2026, counsel for Mr. Casey filed a notice with the SDNY Court indicating that Mr. Casey was recently deceased. On April 7, 2026, the Company and the remaining individual defendants answered the amended complaint. The action is currently in fact discovery. Separately, on March 18, 2025, Company stockholder Kevin O’Connor filed a stockholder derivative suit in the SDNY Court captioned Kevin O’Connor, derivatively on behalf of Dentsply Sirona Inc. v. Simon D. Campion, et al. and Dentsply Sirona Inc., No. 1:25-cv-02246 (the “O’Connor Derivative Litigation”). The complaint, filed derivatively on behalf of the Company, asserts claims against current and former members of the Company’s Board of Directors and then-current and former executive officers. The derivative complaint in this case contains allegations similar to those in the 2024 Securities Litigation, and it alleges that during the period from December 1, 2022 through November 6, 2024, various of the defendants breached fiduciary duties by, among other things, causing or allowing the Company to issue or make materially false and misleading statements concerning the Company’s financial condition and business operations as related to the acquisition of Byte LLC. Additionally, on April 9, 2025, Company stockholder William Andreotti filed a stockholder derivative suit in the SDNY Court captioned William Andreotti, Derivatively on Behalf of Dentsply Sirona, Inc. v. Simon D. Campion, et al. and Dentsply Sirona, Inc., No. 1:25-cv-02931 (the “Andreotti Derivative Litigation”). The complaint, filed derivatively on behalf of the Company, asserts claims against current and former members of the Company’s Board of Directors and then-current and former executive officers. The derivative complaint in this case contains allegations similar to those in the O’Connor Derivative Litigation and the 2024 Securities Litigation, and it alleges that beginning on December 1, 2022, various of the defendants breached fiduciary duties and were unjustly enriched by disseminating or approving materially false and misleading statements or omissions related to the acquisition of Byte LLC. On April 29, 2025, the SDNY Court issued an order consolidating and staying the O’Connor Derivative Litigation and the Andreotti Derivative Litigation. On February 24, 2026, Company stockholder Derrick Chua filed a stockholder derivative suit in the U.S. District Court for the Western District of North Carolina captioned Derrick Chua, derivatively on behalf of Dentsply Sirona Inc. v. Simon D. Campion, et al. and Dentsply Sirona Inc., No. 3:26-cv-00148. The complaint, filed derivatively on behalf of the Company, 30 asserts claims against current and former members of the Company’s Board of Directors and former executive officers. The derivative complaint in this case contains allegations similar to those in the O’Connor Derivative Litigation, the Andreotti Derivative Litigation, and the 2024 Securities Litigation, and it alleges that during the period from December 1, 2022 through November 6, 2024, various of the defendants violated federal securities laws and breached fiduciary duties by, among other things, causing the Company to repurchase its stock at prices that were artificially inflated due to alleged misrepresentations. On March 21, 2023, Mr. Carlo Gobbetti filed a claim in the Milan Chamber of Arbitration against Dentsply Sirona Italia S.r.l. (“DSI”), Italy, a wholly owned subsidiary of the Company, seeking a total of € 28 million for the alleged failure to pay a portion of the purchase price pursuant to a Share Purchase Agreement, dated October 8, 2012 (the “SPA”), in which Sirona Dental Systems, S.r.l., which at the time of execution of the SPA was a wholly-owned subsidiary of Sirona Dental Systems, Inc., acquired all of the shares of MHT S.p.A., an Italian corporation, from Mr. Gobbetti, and various other sellers. Sirona Dental Systems S.r.l. merged into Dentsply Italia S.r.l. in 2018 (the surviving entity is now DSI). Under the SPA, a portion of the purchase price equal to € 7 million was required to be deposited into an escrow account (the “Escrow Account”) and released to Mr. Gobbetti and the other sellers upon the satisfaction of certain conditions, including the delivery by July 2013 of a new prototype of an MHT S.p.A. camera which had to meet certain specifications. In connection with the closing of the share purchase transaction, the SPA was supplemented by a Facility Agreement, also dated October 8, 2012 (the “FA”), which specifically set out the mechanics of payment and release of the proceeds of the Escrow Account. The Austrian notary public, Mr. Gottfried Schachinger, acting as escrow agent, Mr. Gobbetti, and SIRONA Holdings GmbH, an affiliate of Sirona Dental Systems, Inc. which paid the € 7 million into the Escrow Account, were parties to the FA. The FA is subject to Austrian law and to the jurisdiction of the Court of Salzburg in Austria. Mr. Gobbetti claims that he is entitled to receive the € 7 million outstanding balance of the purchase price under the SPA, plus € 21 million for damages incurred as a consequence of the failure to make the payment. Mr. Gobbetti claims that he has a right to receive the full purchase price under the SPA even if the conditions set out in the SPA to deliver a prototype of the MHT S.p.A. camera by July 2013 were not met. On May 15, 2023, DSI filed its initial statement of defense denying that Mr. Gobbetti and the other sellers were entitled to receive the funds deposited in the Escrow Account and further disputing the allegations. Following the constitution of the arbitral tribunal, hearings were held on September 13, 2023 and January 19, 2024, to illustrate and discuss the positions of the parties. The parties also developed their arguments in several rounds of defensive briefs. The final submissions were completed on April 15, 2024, and the final hearing for discussion took place on May 8, 2024. On July 22, 2024, the arbitral tribunal rejected all of Mr. Gobbetti’s claims, ruling that the Company had met its contractual obligations under the SPA, particularly regarding the balance of the purchase price. The arbitral tribunal also dismissed Mr. Gobbetti’s claims in tort and those pertaining to the FA for lack of jurisdiction and lack of capacity for the Company to be sued. The arbitral tribunal observed that such claims should have been brought against SIRONA Holdings GmbH, which is a party to the FA but not to the SPA, before the Court of Salzburg in Austria based on the jurisdictional clause of the FA. Mr. Gobbetti appealed the ruling of the arbitral tribunal on December 2, 2024 before the Court of Appeals of Milan, Italy (the “Court of Appeals”) arguing that the ruling is null and void. According to Mr. Gobbetti, the arbitral tribunal did not grant him appropriate defense rights under the Italian Civil Code and did not fully address the merits of his claims, despite acknowledging jurisdiction. Mr. Gobbetti asked the Court of Appeals to directly sentence DSI to pay the € 7 million, plus damages of € 21 million and interest accruing until the time of payment. On April 17, 2025, DSI filed its statement of defense, asking the Court of Appeals to reject Mr. Gobbetti’s appeal and confirm the arbitral award in its entirety. A final discussion hearing took place before the Court of Appeals on March 4, 2026, and on May 26, 2026, the Court of Appeals announced its decision in which it rejected Mr. Gobbetti’s appeal and ordered him to pay legal costs to DSI based on an official Italian legal tariff. On July 28, 2026, DSI served the decision of the Court of Appeals on Gobbetti, who will have until October 27, 2026 to appeal to the Supreme Court of Cassation, the highest court of appeal. Except as noted above, no specific amounts of damages have been alleged in these lawsuits. The Company will continue to incur legal fees in connection with these pending cases, including expenses for the reimbursement of legal fees of present and former officers and directors under indemnification obligations. The expense of continuing to defend such litigation may be significant. The Company intends to defend these lawsuits vigorously, although the Company may elect to settle certain litigation matters, but there can be no assurance that the Company will be successful in any defense or that matters can be settled on terms favorable to the Company. If any of the lawsuits are decided adversely, the Company may be liable for significant damages directly or under its indemnification obligations, which could adversely affect the Company’s business, results of operations and cash flows. At this stage, the Company has accrued losses which are deemed probable, along with related insurance receivables, but the Company is unable to assess whether any incremental material loss or adverse effect is reasonably possible as a result of these lawsuits or estimate the range of any potential loss. 31 The Internal Revenue Service (“IRS”) is conducting an examination of the Company’s U.S. federal income tax returns for the tax years 2015 and 2016. The Company received a Notice of Proposed Adjustment in April 2023 and a Revenue Agent Report in January 2024 from the IRS examination team proposing an adjustment related to an internal reorganization completed in 2016 with respect to the integration of certain operations of Sirona Dental Systems, Inc. following its acquisition in 2016. Although the proposed adjustment does not result in any additional federal income tax liability for the internal reorganization, if sustained, the proposed adjustment would result in the Company owing additional federal income taxes on a distribution of $ 451 million related to a stock redemption that occurred after the internal reorganization was completed in 2016. The proposed adjustment, if sustained, would also result in a loss of foreign tax credits carried forward to later tax years. The Company believes that it accurately reported the federal income tax consequences of the internal restructuring and stock redemption in its tax returns and in April 2024, submitted an administrative protest with the IRS Independent Office of Appeals contesting the examination team’s proposed adjustments. The IRS examination team provided the Company with a rebuttal to the Company’s administrative protest during August 2024 and informed the Company that the dispute would be forwarded to the IRS Independent Office of Appeals. The General Public Prosecutor’s Office Frankfurt am Main is investigating a series of intercompany loans implemented in 2016 and 2017 as part of the post-merger integration activities of DENTSPLY International Inc. and Sirona Dental Systems, Inc. The Company is cooperating with the investigation. The Company believes that the transactions at issue complied with all applicable German laws. No charges have been filed against the Company or any individuals. Concurrent with the investigation, the Company is also under audit in Germany for fiscal years 2014 through 2021, a portion of which overlaps with the period and subject of investigation. The final resolution of these matters remains uncertain. An unfavorable outcome could have a material adverse effect on our financial condition, results of operations, and cash flows. The Company intends to vigorously defend its positions and pursue related appeals in the above-described pending matters and believes it is more likely than not that its positions will be sustained, although the Company may elect to settle certain matters. Unless otherwise disclosed herein, the Company has not accrued losses for these matters because the Company does not believe the risk of loss is probable and cannot estimate the range of any potential loss with any reasonable degree of accuracy. In addition to the matters disclosed above, the Company is, from time to time, subject to a variety of litigation and similar proceedings incidental to its business. These legal matters primarily involve claims for damages arising out of the use of the Company’s products and services and claims relating to intellectual property matters including patent infringement, employment matters, tax matters, commercial disputes, competition, sales, and trading practices, personal injury, and insurance coverage. The Company may also become subject to lawsuits as a result of past or future acquisitions or as a result of liabilities retained from, or representations, warranties or indemnities provided in connection with, divested businesses. Some of these lawsuits may include claims for punitive and consequential, as well as compensatory, damages. Except as otherwise noted, the Company generally cannot predict what the eventual outcome of the above-described pending matters will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss, fines or penalties related to each pending matter may be. Based upon the Company’s experience, current information, and applicable law, it does not believe that these proceedings and claims will have a material adverse effect on its consolidated results of operations, financial position, or liquidity. However, in the event of unexpected further developments, it is possible that the ultimate resolution of these matters, or other similar matters, if unfavorable, may be materially adverse to the Company’s business, financial condition, results of operations, or liquidity. While the Company maintains general, product, property, workers’ compensation, automobile, cargo, aviation, crime, fiduciary, cyber, and directors’ and officers’ liability insurance up to certain limits that cover certain of these claims, this insurance may be insufficient or unavailable to cover such losses. In addition, while the Company believes it is entitled to indemnification from third parties for some of these claims, these rights may also be insufficient or unavailable to cover such losses. 32 Commitments Purchase Commitments The Company has certain non-cancelable future commitments primarily related to long-term supply contracts for key components and raw materials. At June 30, 2026, non-cancelable purchase commitments were as follows: (in millions) 2026 $ 68 2027 69 2028 40 2029 — 2030 — Thereafter — Total $ 177 The above information should be read in conjunction with Part II, Item 7 “Contractual Obligations” and Part II, Item 8, Note 21, Commitments and Contingencies, in the 2025 Form 10-K. The table above includes commitments with a cloud services provider supporting the Company’s digital platform which requires minimum cumulative purchases totaling $ 58 million through 2028. Off-Balance Sheet Arrangements As of June 30, 2026, the Company had no material off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on the Company’s consolidated financial condition, results of operations, liquidity, capital expenditures or capital resources other than certain items disclosed in the sections above. Indemnification In the normal course of business to facilitate sales of the Company’s products and services, the Company indemnifies certain parties, including customers, vendors, lessors, services providers, and others, with respect to certain matters, including, but not limited to, services to be provided by or for the Company, and intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with its current and former directors and officers that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. Several of these agreements limit the time within which an indemnification claim can be made and the amount of the claim. It is not possible to make a reasonable estimate of the maximum potential amount of indemnification under these indemnification agreements due to the unique facts and circumstances involved in the various matters which give rise to indemnification claims and the particular terms of each agreement. However, to the extent that valid indemnification claims arise in the future, future payments by the Company could be significant and could have a material adverse effect on the Company’s results of operations or cash flows in a particular period. 33