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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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

GMED

GMED fundamentals

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