Contradictions in Focus: Analyzing Globus Medical's 2025 Q1 Earnings Call Insights on Spine Market and Nevro Integration

Spine market growth and procedural health, Nevro integration and operational impact, supply chain and order fulfillment, Nevro synergies and integration expectations, U.S. spine business recovery are the key contradictions discussed in Globus Medical's latest 2025Q1 earnings call.



Revenue and Profitability:
- Globus Medical reported flat quarter in Q1 with revenue of $598 million, negative 0.8% growth versus prior year on a constant currency basis.
- Despite the revenue decline, the company delivered a meaningful expansion in profitability, with non-GAAP EPS increasing 9%.
- The decline in revenue was attributed to softer enabling technology sales, supply chain disruptions, and timing of international distributor orders.

Neuromodulation Acquisition:
- Globus Medical completed the acquisition of Nevro for $250 million, expanding its reach into the $3 billion neuromodulation market.
- The acquisition aligns with Globus' strategy to expand its continuum of care and leverage the clinical superiority of paresthesia-free pain relief.
- The integration of Nevro is expected to enhance profitability and cash flow, with Globus focusing on operational expense reductions to drive profitability.

U.S. Spine Performance:
- The U.S. Spine segment grew 2%, driven by gains across product portfolios like expandables, MIS screws, and ACDF platforms.
- Growth was supported by high retention rates in field sales teams and increased product cross-selling.
- Temporary integration-related supply chain disruptions and a planned reduction in third-party biologic sales impacted results.

Supply Chain and Enabling Technology Challenges:
- Enabling technology sales decreased 31%, with a $22 million revenue, due to softer capital sales and market uncertainty.
- Supply chain disruptions, primarily affecting legacy NuVasive products, were largely resolved by the end of Q1, with production resuming and orders being filled.
- The company anticipates that these challenges have eased and expects to recover the lost sales as the backorder issues are resolved.