Globus Medical Sees Robust Growth Amidst Challenges: Key Takeaways from Q2 Earnings Call.

Globus Medical reported Q2 sales of $745 million, an 18.4% increase YoY, driven by US spine business growth and strategic acquisitions. Non-GAAP EPS reached a record $0.86, up 14.1% YoY. The company achieved positive free cash flow of $31.3 million and showcased innovative product launches, but enabling technologies revenue declined 4.4% and international revenue was flat on a constant currency basis.

Globus Medical, Inc. (GMED) reported its second-quarter 2025 results, showcasing robust financial performance driven by significant growth in the U.S. spine business and strategic acquisitions. The company's adjusted earnings per share (EPS) reached a record high of $0.86, a 14.1% year-over-year (YoY) increase, which exceeded the Zacks Consensus Estimate by 13.16% [1][2][3]. This strong EPS performance was supported by a 14.1% YoY increase in non-GAAP EPS.

Revenue for the quarter stood at $745.3 million, representing an 18.4% YoY increase, which surpassed the Zacks Consensus Estimate by 0.49% [1][2][3]. The U.S. spine business contributed significantly to this growth, with sales in the United States rising 20.3% YoY to $600.8 million. The international market also saw growth, with revenues rising 11% YoY to $144.6 million, although this was flat on a constant currency basis.

The company's product-wise sales showed a mixed performance. Musculoskeletal Solutions generated revenues of $710.2 million, up 19.8% YoY, while Enabling Technologies saw a decline of 4.4% YoY to $35.2 million. The recently acquired Nevro contributed $95 million in revenues during the quarter.

Globus Medical's margin performance was also impressive. The gross profit rose 34.3% YoY to $496.6 million, with the gross margin expanding 792 basis points (bps) to 66.6%. SG&A expenses totaled $303.6 million, up 26.8% from the year-ago quarter's level. Research and development expenses climbed 5.9% to $40 million. The adjusted operating profit was $153 million, which rose 65.4% from the year-ago figure, and the adjusted operating margin surged 584 bps to 20.5%.

The company exited the second quarter with a combined cash and cash equivalents and short-term marketable securities of $229.4 million, compared to $461.3 million at the end of the first quarter. Net cash provided by operating activities at the end of the second quarter was $255.2 million compared to the year-ago figure of $106.6 million.

Globus Medical reaffirmed its full-year 2025 guidance. Net sales are projected to be in the range of $2.80-$2.90 billion, with adjusted EPS expected to be in the range of $3.00-$3.30. The Zacks Consensus Estimate is currently pegged at $2.85 billion for net sales and $3.22 for adjusted EPS [1][2][3].

In summary, Globus Medical's Q2 2025 results demonstrate strong financial performance, driven by growth in the U.S. spine business and strategic acquisitions. The company's focus on innovation, product launches, and deepening engagement with surgeon partners positions it well for continued growth in the coming quarters.

References:
[1] https://finance.yahoo.com/news/globus-medical-stock-q2-earnings-122200127.html
[2] https://seekingalpha.com/news/4481788-globus-medical-non-gaap-eps-of-0_86-beats-by-0_11-revenue-of-745_3m-beats-by-2_57m
[3] https://www.nasdaq.com/articles/globus-medical-stock-q2-earnings-revenue-beat-margins-expand