What Zimmer Biomet Holdings, Inc. told the SEC could break it.

US tariffs reduced 2025 gross margin by 0.4 percentage points (gross margin fell to 61.6% from 63.8%), a quantified hit to a globally manufactured device portfolio.

“Inventory step-up (0.4 ) - U.S. tariffs (0.4 ) - Intangible asset amortization (0.4 ) (0.1 ) Current year gross margin 61.6 % 63.8 %”

Demand depends on third-party payor reimbursement of customers; declining or reduced reimbursement and US/foreign cost-containment measures create pricing pressure on Zimmer Biomet's implants.

“If third-party payors decline to reimburse our customers for our products or reduce reimbursement levels, the demand for our products may decline and our ability to sell our products profitably may be harmed. In addition, we are subject to cost containment measures in the United States and other countries, resulting in pricing pressures, which could have a material adverse effect on our business, results of operations, and cash flows.”

Certain materials, components and outsourced manufacturing activities can only be obtained from a single or limited number of sources due to quality, expertise, cost or regulatory constraints, and replacement suppliers may not be establishable in a timely manner.

“We purchase many of the materials and components used in manufacturing our products from third-party suppliers, and we outsource some key manufacturing activities. Certain of these materials and components and outsourced activities can only be obtained from a single source or a limited number of sources due to quality considerations, expertise, costs or constraints resulting from regulatory requirements.”