Q2 2025 Globus Medical Inc Earnings Call Transcript
Key Points
- Globus Medical Inc (GMED) reported strong Q2 sales of $745 million, growing 18.4% year-over-year, with non-GAAP EPS of $0.86, up 14.1%.
- The US spine business showed robust growth, increasing 5.7% as reported and 7.4% on a day-adjusted basis, driven by new product launches and increased surgeon engagement.
- The company successfully integrated Nevro, contributing $95 million in revenue, and achieved near break-even adjusted EBITDA for Nevro, indicating effective cost management.
- Globus Medical Inc (GMED) remains debt-free, generating strong free cash flow of $31.3 million, and has a solid balance sheet with $229.4 million in cash and equivalents.
- The company received FDA clearance for its Excelsius XR augmented reality navigation headset, enhancing its Excelsius ecosystem and positioning it as a leader in surgical technology.
- Enabling technologies revenue declined 4.4% year-over-year, despite a 58% sequential improvement, indicating challenges in closing deals and extended sales cycles.
- International revenue growth was modest at 1.4% as reported, with a decline of 1.8% on a constant currency basis, impacted by supply chain issues and distributor transitions.
- The LatAm region faced sales shortfalls, particularly in Brazil, due to a slowing market and supply issues, affecting overall international performance.
- SG&A expenses increased to 40.7% of sales, driven by higher sales compensation costs and third-party spending, impacting overall profitability.
- The integration of Nevro presents ongoing challenges, with potential risks to sales as cost actions and strategic changes are implemented.
Welcome to Globus Medical second quarter 2025 earnings call. (Operator Instructions)
I'll now turn the call over to Brian Kearns, Senior Vice President of Business Development and Investor Relations. Mr. Kearns, please go ahead.
Thank you, Hailey, and thank you everyone for joining in with us today. Joining today's call from Globus Medical will be David Paul, Globus's Founder and Executive Chairman; Keith Pfeil, President and Chief Executive Officer; and Kyle Klein, Chief Financial Officer.
This review is being made available via webcast, accessible through the Investor Relations section of the Globus Medical website at www.globusmedical.com.
Before we begin, let me remind you that some of the statements made during this review are or may be considered forward-looking statements. Our Form 10-K for the 2024 fiscal year and our subsequent filings with the Securities and Exchange Commission identify certain
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