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- **Record Q3 Growth**: $769M revenue (+22.9% YoY), $1.18 non-GAAP EPS (+42.6%), and $213.9M free cash flow.
- **Base Business Strength**: 35.3% EBITDA margin, 7% day-adjusted U.S. Spine growth, and 17.2% Trauma revenue surge.
- **Nevro Turnaround**: 16.2% EBITDA margin vs. -1.4% Q2, with sequential sales growth and $8.5M free cash flow.
- **Updated Guidance**: FY25 revenue $2.86-2.9B (+13.5-15.1%), EPS $3.75-3.85 (+23.2-26.5%).
- **Strategic Shifts**: Flexible capital models (leases/PPC) to drive implant growth, 32 weeks of U.S. Spine momentum.

**【CEO Summary Section】**
- Q3 2025 revenue reached $769 million, up 22.9% YoY, driven by U.S. Spine growth (9.6%) and Nevro's $99.3 million contribution.
- Base business EBITDA margin expanded to 35.3%, with Nevro achieving 16.2% EBITDA margin, up from negative 1.4% in Q2.
- U.S. Spine logged 32 weeks of consecutive growth, fueled by competitive rep hiring and product portfolio expansion.
- Enabling Technologies revenue declined 27% due to slower EGPS sales, but pipeline strength remains.
- International Spine grew 5.6% on day-adjusted basis, with EMEA and APAC regions showing momentum.
- Trauma business hit record Q3 revenue, resolving prior manufacturing challenges.

**【CFO Financial Commentary】**
- GAAP net income: $119 million; non-GAAP EPS: $1.18 (42.6% YoY growth).
- Free cash flow: $213.9 million, highest quarterly level on record.
- Adjusted gross margin: 68.1%, up 160 bps YoY, driven by synergy execution.
- R&D/Sales: 4.9% (down 0.1% YoY); SG&A/Sales: 40.8% (up 2.4% YoY due to one-time litigation charges).
- Updated FY25 guidance: Revenue $2.86-2.9B (13.5-15.1% growth), EPS $3.75-3.85 (23.2-26.5% growth).

**【Q&A Key Highlights】**
- **U.S. Spine Sustainability**: 32 weeks of growth driven by implant pull-through, competitive rep hiring, and robotic adoption.
- **Nevro Margin Progression**: Sequential sales growth and 16.2% EBITDA margin; targeting mid-70s gross margin by 2026.
- **Capital Sales Strategy**: Shifting to leases/PPC models to accelerate implant growth, with 2025 Q3 showing higher rental/lease mix.
- **2026 Outlook**: Base business EBITDA near mid-30s, Nevro accretive to EPS, and international spine growth 10-15%.
- **Robot Pipeline**: ExcelsiusXR launch and FDA-cleared ExcelsiusGPS instruments for expanded interbody fusion use.

Globus Medical, Inc. (GMED) Q3 2025 Earnings Call Transcript

- **Record Q2 Growth**: 18.4% revenue growth to $745 million, driven by U.S. Spine (+5.7%) and Nevro ($95M contribution).
- **Strategic Integration Success**: Nevro near breakeven in Q2, with sales force alignment and cost actions underway.
- **Innovation Momentum**: DuraPro drill and Excelsius XR AR headset poised to accelerate growth in MIS and robotic-assisted procedures.
- **Gross Margin Target**: Mid-70s by 2026 through manufacturing in-sourcing and supply chain efficiency.
- **Tax Efficiency**: $34.8M one-time tax benefit from NOL utilization, reducing future cash tax burden.

**【CEO Summary Section】**
- **Q2 2025 Financial Highlights**: Revenue of $745 million (+18.4% YoY), non-GAAP EPS of $0.86 (+14.1% YoY), and free cash flow of $31.3 million (+18% YoY). U.S. Spine business grew 5.7% as reported and 7.4% day-adjusted, with 19 consecutive weeks of growth.
- **Strategic Acquisitions**: Integration of Nevro (acquired April 2025) progressing well, with $95 million in Q2 revenue. Focus on cross-selling Nevro's high-frequency spinal cord stimulation with Globus' spine portfolio.
- **Product Launches**: DuraPro oscillating drill system driving growth in MIS procedures; Excelsius XR AR headset received FDA clearance for Q3 launch.
- **Gross Margin Target**: Aiming for mid-70s adjusted gross profit margin by 2026 through manufacturing in-sourcing and supply chain optimization.

**【CFO Financial Commentary】**
- **GAAP Results**: Net income of $202.8 million (including $110.6 million bargain purchase gain), GAAP EPS of $1.49. Non-GAAP net income of $116.8 million, with adjusted EBITDA of 28%.
- **Cash Flow**: Operating cash flow of $77.9 million and free cash flow of $31.3 million. Ended Q2 with $229.4 million in cash, down from $956 million due to debt repayment and share buybacks.
- **Nevro Synergies**: Achieved near breakeven adjusted EBITDA in Q2, with cost actions reducing SG&A to 64.2% of Nevro sales.
- **Tax Benefits**: $34.8 million one-time tax benefit from NOL utilization, reducing future cash tax obligations.

**【Q&A Key Highlights】**
- **Nevro Integration**: Sales force energized by Globus stability; Q2 cost actions reduced OpEx, but full accretion expected by 2026. Q2 revenue of $95 million suggests $130 million H2 run rate.
- **Enabling Tech Growth**: Sequential 58% sales rebound to $35.2 million, driven by EGPS robot closures. Targeting double-digit growth in 2025 with pipeline of 110,000+ robotic procedures.
- **Gross Margin Progress**: Inventory step-up amortization declining, with manufacturing initiatives to drive mid-70s gross margin by 2026.
- **Share Repurchases**: Expanded $500 million buyback program, with $25 million executed in Q2 and $475 million remaining.


Globus Medical, Inc. (GMED) Q2 2025 Earnings Call Transcript

- **Q1 Revenue Mixed**: $598M (-0.8% YoY) due to supply chain and timing issues, but U.S. Spine +2% and free cash flow surging to $141M.
- **Nevro Acquisition**: $250M expansion into neuromodulation with high-frequency tech; targeting SG&A cost reductions and margin expansion.
- **Robotic Growth**: 100K+ procedures globally, Q2 robot deals closing faster than expected.
- **Financial Strength**: Debt-free status restored; 2025 EPS guidance lowered to $3.00-3.30 due to integration costs, but free cash flow records set.
- **Key Risks**: Neuromonitoring reimbursement headwinds, elongated sales cycles, and supply chain execution.

**【CEO Summary Section】**
- Q1 revenue of $598 million (-0.8% YoY on constant currency) impacted by softer enabling tech sales, supply chain disruptions, and delayed international orders. U.S. Spine grew 2% driven by product portfolio expansion and robotic procedure pull-through.
- Launched two new products: Cohere ALIF spacer and Reline eGPS fixation system, enhancing leadership in advanced material science and robotic integration.
- Q2 momentum strong with supply chain resolved, distributor orders filling, and robot deals closing. Free cash flow reached $141 million, returning to debt-free status after repaying $900 million merger debt.
- Completed Nevro acquisition for $250 million, expanding into $3 billion neuromodulation market with high-frequency technology for chronic pain treatment.

**【CFO Financial Commentary】**
- Q1 non-GAAP EPS of $0.68 (+9% YoY), driven by synergy capture and lower merger-related costs. GAAP net income $75.5 million vs. $1.1 billion prior year (due to one-time $0.06 EPS gain in 2024).
- Free cash flow $141.2 million (493% YoY growth), fueled by operational efficiency and $190 million share buybacks reducing deal dilution by 20%.
- Guidance reaffirmed for 2025 net sales ($2.8-2.9B) but EPS lowered to $3.00-3.30 due to Nevro integration costs. Targeting 30%+ EBITDA margin by year-end.

**【Q&A Key Highlights】**
- **Nevro Integration**: Focus on reducing SG&A expenses (currently too high for sales volume) and leveraging Globus scale to accelerate growth. Gross margin expansion expected over time.
- **Enabling Tech Pipeline**: Q2 off to strong start with robot deals closing. Elongated sales cycles due to market uncertainty, but pipeline remains robust.
- **Supply Chain Resolution**: Q1 supply chain disruptions resolved; trauma/NSO business returning to high growth in Q2.
- **Tariff Impact**: Minimal due to U.S.-based manufacturing and proactive cost mitigation strategies.
- **Share Repurchases**: $528 million spent since merger, buying back 20% of merger dilution. Open to opportunistic stock buys if market overreacts.

**【Risk & Outlook】**
- Neuromonitoring reimbursement challenges reduced Q1 EBITDA by 2%. Core spine growth resilient despite macro uncertainty.
- 2025 priorities: Integrate Nevro, maintain debt-free status, and drive profitable growth through U.S. Spine and enabling tech expansion.


Globus Medical, Inc. (GMED) Q1 2025 Earnings Call Transcript

- **Record Financial Performance**: 2024 revenue up 61% to $2.519B, with Q4 EPS of $0.84 (+40% YoY) and $405M free cash flow.
- **Innovation Surge**: 18 new products launched, including QUARTEX MIS and ExcelsiusFlex, driving U.S. Spine growth (+4% Q4).
- **Strategic Acquisition**: $250M Nevro deal to enter high-frequency neuromodulation, with accretion expected in 2026+.
- **Gross Margin Expansion**: 2025 target 67.5%-68.5%, long-term goal mid-70s via in-sourcing.
- **Enabling Tech Momentum**: Q4 Enabling Tech sales +44% YoY, with Excelsius 3D imaging adoption accelerating.
- **2025 Guidance**: $2.66-2.69B (standalone) / $2.8-2.9B (post-Nevro), with EPS of $3.40-3.50 / $3.10-3.40.


**【CEO Summary Section】**
- Full-year 2024 revenue reached $2.519 billion, a 61% increase YoY, driven by U.S. Spine growth and Enabling Tech placements.
- Q4 2024 revenue was $657 million, up 7% YoY, with Non-GAAP EPS of $0.84 (+40% YoY) and record free cash flow of $193 million.
- Launched 18 new products in 2024, including QUARTEX MIS, ALLEGIANCE Retractor, and ExcelsiusFlex robotic navigation.
- Acquired Nevro Corp. for $250 million to expand into high-frequency neuromodulation, targeting $2 billion addressable market.
- 2025 guidance: $2.66-2.69 billion in revenue (standalone) and $2.8-2.9 billion post-Nevro, with EPS of $3.40-3.50 (standalone) and $3.10-3.40 post-acquisition.

**【CFO Financial Commentary】**
- Full-year 2024 Non-GAAP net income: $419.6 million ($3.04 EPS), up 31% YoY.
- Adjusted EBITDA: 29.2%, with free cash flow of $405 million (+145% YoY).
- Q4 2024 GAAP gross margin: 57.2%, improving to 67.1% on an adjusted basis.
- 2025 gross margin target: 67.5%-68.5%, with long-term goal of mid-70s via in-sourcing.
- R&D spend: 6%-7% of sales in 2025, supporting product pipeline.
- SG&A expense target: 37.5%-38.5% of sales in 2025.

**【Q&A Highlights】**
- **Nevro Acquisition**: Expected to close Q2 2025, with $250 million purchase price funded by cash. Nevro's high-frequency tech integrates with Globus' enabling tech ecosystem, targeting synergies in spinal implants and navigation.
- **Competitive Dynamics**: No direct benefit from competitor's U.S. spine divestiture, but focus on innovation (e.g., QUARTEX MIS, ExcelsiusFlex) to drive market share.
- **Enabling Tech Growth**: Q4 Enabling Tech sales $47 million (+44% YoY), with record unit placements. Excelsius 3D imaging adoption accelerating, paired with ExcelsiusHub navigation.
- **Robot Placements**: 2025 focus on penetrating NuVasive accounts, with Q2/Q4 as key placement quarters.
- **Gross Margin Trajectory**: 2025 adjusted gross margin target 67.5%-68.5%, with 2026+ expansion via in-sourcing.
- **M&A Strategy**: No immediate plans beyond Nevro, but open to complementary deals post-integration.


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