Globus Medical Plunges 17.2% on Revenue Decline, Supply Chain Woes

On May 9, 2025, Globus Medical's stock experienced a significant drop of 17.2% in pre-market trading, reflecting investor concerns and market reactions to recent financial performance and strategic developments.

Globus Medical reported a slight decline in revenue for the first quarter of 2025, down 0.8% on a constant currency basis. This decrease was primarily attributed to softer enabling technology sales and supply chain disruptions resulting from the integration of NuVasive. The company's enabling technology sales decreased by 31% compared to the previous year, due to an elongated selling cycle and market uncertainty. Additionally, the international spine implant business grew only 1% in Q1, affected by the timing of distributor orders and supply chain issues. The combined trauma and NSO business also declined by 8% in Q1, primarily due to integration-related supply chain disruptions.

Despite these challenges, Globus Medical achieved a significant increase in free cash flow, reaching $141 million, which is a 493% increase compared to the previous year. The company successfully returned to a debt-free status by paying off nearly $900 million of debt inherited from the NuVasive merger. Globus Medical also launched two new products in Q1, which are expected to drive market penetration and enhance their product portfolio. The US spine business showed resilience with a 2% growth in Q1, driven by high retention rates and strong product offerings. The acquisition of Nevro Corporation is seen as a strategic move to expand into a $3 billion market space, enhancing Globus Medical's reach in the musculoskeletal market.