Core Insights - Bioventus reported a solid Q4 performance with revenue of $158 million, reflecting a 3% increase year-over-year and a 10% organic growth after adjusting for the Advanced Rehabilitation divestiture [7][11]. - The company highlighted strong performance in Pain Treatments, which grew 15% in Q4, driven by the DUROLANE product and a shift towards single-injection therapies [4][9]. - Management provided guidance for 2026, projecting net sales of $600–610 million and adjusted EPS of $0.73–0.77, indicating expected growth in both revenue and profitability [10][21]. International Performance - International revenue remained unchanged year-over-year in Q4, but organic growth was reported at 11% for the full year, attributed to improved commercial execution and talent additions [1]. - The timing of distributor orders impacted Q4 growth, which was noted by management [1]. Restorative Therapies - Revenue in Restorative Therapies declined by 26% due to the divestiture of Advanced Rehabilitation, but organic growth was still 10%, largely driven by strong performance from the EXOGEN product [2][9]. Surgical Solutions - Surgical Solutions saw a revenue growth of 3%, with Ultrasonics facing tough comparisons against a record high from the previous year [3]. - Generator revenue in Q4 was noted as the third-highest total ever for the company, indicating a solid foundation for future growth [3]. Pain Treatments - Pain Treatments revenue advanced by 15% in Q4, with a strong emphasis on the hyaluronic acid franchise and favorable demographics for knee osteoarthritis [4]. - The performance was significantly driven by volume, with DUROLANE leading the results [4]. Financial Performance - Adjusted EBITDA for the quarter was $37 million, a 30% increase year-over-year, with an adjusted EBITDA margin of 23%, up 490 basis points from the previous year [6][11]. - The company reported a quarterly record for cash from operations at $38 million, nearly double the prior-year quarter, contributing to a full-year cash flow of nearly $75 million, a 92% increase [13][14]. Balance Sheet and Leverage - Bioventus ended the quarter with $51 million in cash and $294 million in outstanding debt, with a reduction of $29 million in debt during the quarter [15]. - The net leverage ratio declined to below 2.5x, with expectations to be well below 2x by the end of 2026 [15]. 2026 Strategy and Investments - The company plans to allocate approximately $13 million in incremental investments across growth drivers such as PNS, PRP, Ultrasonics, and international expansion [17][18]. - Management expects the combination of PNS and PRP to contribute at least 200 basis points of growth in 2026, with further acceleration anticipated in 2027 [19]. Guidance and Expectations - For 2026, management expects Q1 to be below the implied guidance range, with growth anticipated to accelerate in Q2 and the second half of the year [22]. - The company does not anticipate any additional impact from U.S. dollar fluctuations for the year [25].

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $158 million, a 3% increase compared to the prior year, with organic growth at 10% after adjusting for the Advanced Rehabilitation divestiture [23][24] - Adjusted EBITDA increased by $8 million to $37 million, representing a 30% increase year-over-year, with an Adjusted EBITDA margin of 23%, expanding by 490 basis points [24][27] - Cash flow from operations totaled $38 million, nearly doubling compared to the fourth quarter last year, contributing to a full-year cash flow increase of 92% [28] Business Line Data and Key Metrics Changes - In the pain treatments segment, revenue grew by 15% in Q4, driven by strong volume growth of DUROLANE and account wins [25] - Surgical solutions revenue grew by 3%, with Ultrasonics facing tough comparisons to prior year capital sales [25] - Restorative therapies revenue declined by 26% due to the divestiture, but organic growth was 10% excluding this impact, driven by strong performance from EXOGEN [26] Market Data and Key Metrics Changes - The international segment's revenue remained unchanged year-over-year, but organic growth was 10%, with an overall growth of 11% for the year [26] - The company expects to continue its positive momentum in international markets due to talent additions and improved commercial execution [26] Company Strategy and Development Direction - The company aims to accelerate revenue growth while strengthening earnings power and expanding capital allocation options through consistent growth in free cash flow [6][7] - In 2026, the company plans to invest approximately $13 million in growth drivers, including PNS, PRP, Ultrasonics, and international business [13][16] - The focus will be on driving above-market growth, expanding profitability, and strengthening cash flow, with an expected EBITDA margin of approximately 20% for 2026 [19][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's transformation and its ability to deliver above-market revenue growth while increasing investments in growth drivers [20][66] - The company anticipates earnings growth to outpace revenue growth, driven by strong gross margins and disciplined resource allocation [19][30] Other Important Information - The company has refinanced its term loan, enhancing liquidity and driving interest expense savings [12] - The company expects cash from operations to range between $82 million and $87 million in 2026, an increase of approximately 10%-17% [30] Q&A Session Summary Question: Growth contribution year-over-year from price and thoughts on GELSYN-3 and SUPARTZ FX - Management indicated that growth was primarily driven by volume, with DUROLANE leading performance [34][36] Question: Assumptions by segment for 2026 growth - Pain treatments are expected to see mid to high single-digit growth, while restorative therapies are projected to grow low to mid-single digits [38][39] Question: Tailwind from favorable order timing in Q4 - Management estimated that favorable order timing contributed approximately $2 million to growth in Q4 [46] Question: Learnings from the PNS pilot phase and confirmation of 200 basis point growth - Positive feedback was received on the technology's power and ease of use, and management reaffirmed the expectation of a minimum of 200 basis points growth from PNS and PRP [48][50]

Financial Data and Key Metrics Changes - The company reported Q4 revenue of $158 million, a 3% increase year-over-year, with organic growth at 10% after adjusting for the Advanced Rehabilitation divestiture [24][30] - Adjusted EBITDA increased by $8 million to $37 million, representing a 30% increase, with an adjusted EBITDA margin of 23%, expanding by 490 basis points compared to the prior year [25][28] - Cash flow from operations reached approximately $38 million, nearly doubling compared to Q4 last year, contributing to a full-year cash flow increase of 92% [29] Business Line Data and Key Metrics Changes - In the pain treatments segment, revenue grew by 15% in Q4, driven by strong volume growth of DUROLANE and account wins [26] - Surgical solutions revenue increased by 3%, although Ultrasonics faced tough comparisons to prior year capital sales [26] - Restorative therapies revenue declined by 26% due to the divestiture, but organic growth was 10% when excluding this impact [27] Market Data and Key Metrics Changes - The international segment's revenue remained unchanged year-over-year, but organic growth climbed 10%, with a full-year growth of 11% [27] - The company noted that the pain treatments business is expected to continue growing above market rates, with a focus on volume-driven growth [36][42] Company Strategy and Development Direction - The company aims to build a $1 billion leading med tech company by focusing on accelerating revenue growth and expanding capital allocation options through strong free cash flow [6][20] - Key objectives for 2026 include targeted investments in growth drivers, driving profitability that exceeds revenue growth, and strengthening cash flow [13][19] - The company plans to allocate approximately $13 million towards growth drivers such as PNS, PRP, Ultrasonics, and international business expansion [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver above-market revenue growth while improving earnings and cash flow [67] - The company anticipates that earnings growth will outpace revenue growth, supported by a leading gross margin and disciplined resource allocation [20][31] - Management highlighted the importance of a long-term approach to profitable growth, particularly in the HA business [42] Other Important Information - The company refinanced its term loan, enhancing liquidity and reducing interest expenses, which is expected to continue benefiting the company in 2026 [13] - The company is focused on maintaining an EBITDA margin of approximately 20% for 2026 while investing in future growth [20] Q&A Session Summary Question: Growth contribution year-over-year from price and thoughts on GELSYN-3 and SUPARTZ FX - Management indicated that growth was primarily driven by volume, with DUROLANE leading performance [36] Question: Assumptions by segment for 2026 guidance - Management expects low to mid-single digit growth for restorative therapies, mid to high single digit growth for pain treatments, and double-digit growth for surgical solutions [39][40] Question: Tailwind from favorable order timing in Q4 - Management estimated that favorable order timing contributed approximately $2 million to growth in Q4 [48] Question: Learnings from PNS pilot phase and confirmation of 200 basis point growth - Management confirmed positive feedback from the PNS pilot and reaffirmed the expectation of a minimum of 200 basis points growth from PNS and PRP combined [52] Question: Near-term expectations for Ultrasonics and team building for PNS - Management emphasized a focus on the spine space for Ultrasonics and noted the hiring of a dedicated general manager for PNS to drive growth [61]

Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $158 million, a 3% increase compared to the prior year, with organic growth at 10% after adjusting for the impact of the Advanced Rehabilitation divestiture [20][21] - Adjusted EBITDA for the quarter was $37 million, an increase of $8 million or 30% year-over-year, with an Adjusted EBITDA margin of 23%, expanding by 490 basis points compared to the previous year [21][22] - Cash flow from operations totaled approximately $38 million, nearly doubling compared to the fourth quarter last year, contributing to a full year objective of nearly doubling cash flow from operations, achieving a 92% increase for the year [26][28] Business Line Data and Key Metrics Changes - In the pain treatments segment, revenue grew by 15% in Q4, driven by strong volume growth of DUROLANE and account wins [23] - Surgical solutions revenue increased by 3%, with Ultrasonics facing tough comparisons to prior year capital sales [23] - Restorative therapies revenue declined by 26% due to the divestiture of the Advanced Rehabilitation business, but organic growth was 10% excluding this impact [24] Market Data and Key Metrics Changes - The international segment's revenue remained unchanged compared to the prior year, with organic growth climbing 10% [24] - The international segment achieved 11% organic growth for the year, supported by a new team and improved commercial execution [24] Company Strategy and Development Direction - The company aims to accelerate revenue growth while strengthening earnings power and expanding capital allocation options through consistent growth in free cash flow [5][10] - In 2026, the company plans to invest approximately $13 million in growth drivers such as PNS, PRP, Ultrasonics, and international business [11][12] - The focus will be on driving above-market growth across core businesses, particularly the HA franchise, while also investing in marketing and R&D to support growth [11][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's transformation and strong foundation, indicating a focus on becoming a $1 billion leading med tech company [5][18] - The company anticipates earnings growth to outpace revenue growth, maintaining an EBITDA margin of approximately 20% for 2026 [17][18] - Management highlighted the importance of leveraging profitable growth to fund future growth drivers, emphasizing a long-term approach to business [40] Other Important Information - The company refinanced its term loan, enhancing liquidity and driving interest expense savings [10] - The company expects net sales for 2026 to range from $600 million to $610 million, with adjusted earnings per share projected at $0.73 to $0.77 [27][28] Q&A Session Summary Question: Growth contribution year-over-year from price in pain treatments - Management indicated that growth was primarily driven by volume, with DUROLANE leading performance [34][35] Question: Assumptions by segment for 2026 growth - Management expects low to mid-single digit growth in restorative therapies and mid to high single digit growth in the pain portfolio, with double-digit growth anticipated in surgical solutions [36][38] Question: Impact of favorable order timing in Q4 - Management estimated that favorable order timing contributed approximately $2 million to growth in Q4 [45] Question: Learnings from the PNS pilot phase - Positive feedback was received regarding the technology's power, size, and ease of use, with plans to scale the business aggressively based on these insights [48][50]

Agenda and Speakers Rob Claypoole President and Chief Executive Officer Update on Business and 2026 Priorities Fourth Quarter 2025 Financial Results March 5, 2026 Mark Singleton Senior Vice-President and Chief Financial Officer Q4 2025 Results 2026 Financial Guidance 2 Forward Looking Statements and Use of Estimates Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Ex ...

Market Strategy and Product Development - The company plans to strengthen its market share in differentiated HA, BGS, and Fracture Care products, which currently account for the majority of sales[22] - The company aims to initiate full commercial launches of StimTrial and Talismann, with the PRP system being sold through the existing HA sales force[22] - The Ultrasonics platform business will be further developed, with a focus on establishing BoneScalpel as a standard of care for spine applications[22] - The company is strategically focusing on international markets with the greatest growth opportunities, aiming for profitable growth over time[22] - The company is focused on expanding its Surgical Solutions portfolio to meet market demand and surgeon needs[45] - New product launches are expected to contribute an additional $30 million in revenue over the next year[4] - The company is expanding its market presence in Europe, targeting a 25% increase in market share by 2025[5] - A strategic acquisition of a smaller competitor was completed for $50 million, expected to enhance product offerings[6] Regulatory Approvals and Compliance - The company received FDA 510(k) clearances for TalisMann and StimTrial in July 2025, marking a significant growth opportunity in the PNS market[31] - The FDA's 510(k) clearance process typically takes between three to twelve months, but often extends beyond that timeframe[71] - If a device is deemed "not substantially equivalent," it is classified as a Class III device, requiring more rigorous PMA requirements[72] - The PMA process necessitates extensive data, including preclinical studies and human clinical trials, to demonstrate safety and effectiveness[74] - The FDA has 180 days to complete its review of a PMA, although actual review times can extend to several years[75] - Post-approval conditions may include restrictions on labeling and the requirement for long-term follow-up data from clinical studies[76] - The FDA may issue a Complete Response Letter (CRL) detailing deficiencies in a BLA or NDA, which can delay or refuse approval[82] - Once approved, the FDA may withdraw product approval if compliance with pre- and post-marketing requirements is not maintained[83] - Manufacturers must continue to comply with cGMP and other regulatory requirements, which include periodic inspections and reporting of adverse events[84] - The FDA may withdraw marketing authorizations for drugs and medical devices if compliance with regulatory requirements is not maintained, potentially leading to product recalls and fines[85] - The EU Medical Devices Regulation (MDR) became effective on May 26, 2021, establishing a uniform regulatory framework across the EU for medical devices[93] - The transition period for certain medical devices to comply with the MDR has been extended until December 31, 2027, or December 31, 2028, depending on the device classification[95] - Manufacturers must register devices and submit identification information to Eudamed, including a unique identifier for each device to ensure better traceability[98] - The EU medical device vigilance system requires manufacturers to report serious incidents and Field Safety Corrective Actions (FSCAs) to relevant authorities[99] Financial Performance and Outlook - The company reported a significant increase in revenue, with a year-over-year growth of 15% to $150 million in Q3 2023[1] - User data showed a 20% increase in active users, reaching 1.2 million by the end of the quarter[2] - The company provided an optimistic outlook, projecting a revenue growth of 10-12% for the next fiscal year[3] - Research and development expenses increased by 18% to $20 million, focusing on innovative technologies[7] - The company plans to implement cost-cutting measures, aiming for a 5% reduction in operational expenses[8] - Customer satisfaction ratings improved to 90%, reflecting the effectiveness of recent service enhancements[9] Leadership and Management - Robert E. Claypoole joined Bioventus as President and CEO in January 2024, previously managing a $1.2 billion business at Mölnlycke Health Care[127] - Mark L. Singleton has been the CFO since March 2022, with prior experience at Teleflex and Lenovo, focusing on financial leadership roles[128] Market Risks and Economic Factors - The company is exposed to foreign currency risks as it bills most direct sales outside the U.S. in local currencies, with expectations of increased foreign currency sales in the future[476] - The company does not currently have foreign currency hedges but may use forward contracts or derivatives for foreign exchange risk management in the future[476] - Inflation has not had a material effect on the company's results of operations during the periods presented[477] - The company is subject to various market risks, including interest rate and foreign exchange rate fluctuations, which could result in potential losses[473]

Financial Performance - Fourth quarter 2025 worldwide revenue totaled $157.9 million, a 10.0% increase on an organic basis, driven by double-digit growth in Pain Treatments and Surgical Solutions [4]. - Net income for Q4 2025 was $14.8 million, compared to a net loss of $0.4 million in the prior-year period, marking a significant turnaround [5]. - Adjusted EBITDA for Q4 2025 was $36.7 million, a 30% increase from $28.3 million in the prior-year period, attributed to higher organic revenue growth and improved gross margins [5]. - Full-year 2025 worldwide revenue was $568.1 million, a decrease of 0.9% compared to the prior year, but organic revenue grew by 7.5% [7]. - Full-year 2025 net income was $22.7 million, a recovery from a net loss of $36.1 million in the previous year [8]. - Fourth quarter cash from operations reached $38.0 million, a remarkable 97% increase compared to the prior-year period [10]. - For the three months ended December 31, 2025, net sales were $157.9 million, compared to $153.6 million for the same period in 2024 [37]. - The company reported a net income of $14.8 million for the three months ended December 31, 2025, compared to a net loss of $0.4 million for the same period in 2024 [37]. - Net income for the three months ended December 31, 2025, was $17,318 thousand, compared to a loss of $603 thousand in the same period of 2024, marking a significant turnaround [39]. - Adjusted EBITDA for the three months ended December 31, 2025, was $36,710 thousand, compared to $28,250 thousand in the same period of 2024, reflecting a year-over-year increase of 30.1% [55]. - The company reported a net income of $17.3 million for the three months ended December 31, 2025, resulting in a diluted EPS of $0.21 [60]. - For the year ended December 31, 2025, the reported GAAP gross profit was $388.2 million, with a gross margin of 68.3% [62]. - The non-GAAP net income for the year ended December 31, 2025, was $58.7 million, leading to an adjusted EPS of $0.68 [62]. Revenue Breakdown - Pain Treatments revenue for Q4 2025 was $79.7 million, reflecting a 15.1% increase driven by strong demand for hyaluronic acid therapies [12]. - Surgical Solutions revenue for Q4 2025 was $55.5 million, a 3.4% increase due to higher U.S. demand for Bone Graft Substitutes [12]. - Net sales for the year are projected to be between $600 million and $610 million, reflecting a growth of approximately 6% to 7% [29]. - Adjusted EPS is expected to be between $0.73 and $0.77, indicating an increase of approximately 7% to 13% [29]. - Cash from operations is projected to be between $82 million and $87 million [29]. Cash Flow and Liquidity - Bioventus reduced its debt by $29 million in Q4 2025, strengthening its balance sheet and improving liquidity [22]. - Total assets as of December 31, 2025, were $683.6 million, down from $728.0 million as of December 31, 2024 [34]. - Total liabilities decreased to $455.1 million as of December 31, 2025, from $542.4 million as of December 31, 2024 [34]. - The company reported a total cash and cash equivalents balance of $51,238 thousand at the end of the period, up from $41,582 thousand at the end of the previous year [39]. - Net cash from operating activities increased to $37,968 thousand for the three months ended December 31, 2025, up from $19,322 thousand in the prior year, representing a growth of 96.5% [39]. - The company’s net cash from investing activities was $(580) thousand for the three months ended December 31, 2025, compared to $24,104 thousand in the prior year, indicating a significant decrease due to fewer business sales [39]. - The company’s net cash from financing activities was $(28,447) thousand for the three months ended December 31, 2025, compared to $(42,855) thousand in the same period of 2024, showing an improvement in cash flow management [39]. Operational Efficiency - The company strengthened its executive leadership team with the addition of Megan Rosengarten as Senior Vice-President and General Manager of Peripheral Nerve Stimulation [29]. - The company recognized losses related to the refinancing of long-term debt, impacting overall financial performance [59]. - The company incurred a non-cash impairment charge of $33.9 million for intangible assets related to the divestiture of the Advanced Rehabilitation Business [59]. - Restructuring costs in 2025 were primarily associated with severance and consolidation of administrative functions, totaling $2.2 million [59]. - The company reported a change in working capital of $6,207 thousand for the three months ended December 31, 2025, compared to a negative change of $(2,108) thousand in the same period of 2024, indicating improved operational efficiency [39]. Risks and Challenges - Bioventus faces various risks including regulatory challenges, supply chain issues, and competition that could impact future growth and product commercialization [31].

Core Viewpoint - Bioventus Inc. reported strong financial results for Q4 and full-year 2025, highlighting above-market growth, improved margins, and a strengthened balance sheet, while providing optimistic guidance for 2026 [2][20]. Fourth Quarter 2025 Financial Results - Worldwide revenue for Q4 2025 was $157.9 million, a 10.0% increase on an organic basis, driven by double-digit growth in Pain Treatments and Surgical Solutions [3][9]. - Net income attributable to Bioventus was $14.8 million, compared to a net loss of $0.4 million in the prior-year period [4][34]. - Adjusted EBITDA for Q4 was $36.7 million, a 30% increase from $28.3 million in the prior-year period [4]. - GAAP earnings per diluted share improved to $0.21 from $0.00 in the prior-year period, while adjusted EPS was $0.24, slightly down from $0.26 [5]. Full-Year 2025 Financial Results - Total worldwide revenue for 2025 was $568.1 million, a decrease of 0.9% compared to the prior year, primarily due to the divestiture of the Advanced Rehabilitation Business; however, organic revenue grew by 7.5% [6][15]. - Full-year net income attributable to Bioventus was $22.7 million, a significant improvement from a net loss of $36.1 million in the previous year [7][34]. - Adjusted EBITDA for the full year was $116.3 million, up 6.8% from $108.9 million [7]. - GAAP earnings per diluted share for the year were $0.33, compared to a loss of $0.56 in the prior year, while adjusted EPS was $0.68, reflecting a 21.4% increase [8]. Revenue by Business Segment - Pain Treatments generated $79.7 million in Q4, a 15.1% increase, driven by strong demand for hyaluronic acid therapies for knee osteoarthritis [10][15]. - Surgical Solutions revenue was $55.5 million, up 3.4%, attributed to higher U.S. demand for Bone Graft Substitutes [11]. - Restorative Therapies revenue was $22.7 million, reflecting a 26.0% decline due to the divestiture of the Advanced Rehabilitation Business, but showed 10.3% organic growth [11][16]. Geographic Revenue Breakdown - U.S. revenue for Q4 was $139.5 million, a 3.2% increase, with organic growth of 10.1% [13]. - International revenue was $18.4 million, a slight decrease of 0.1%, but increased 9.5% on an organic basis [13][19]. 2026 Financial Guidance - Bioventus expects 2026 revenue between $600 million and $610 million, reflecting growth of approximately 6% to 7% [22]. - Adjusted EPS is projected to be between $0.73 and $0.77, indicating an increase of approximately 7% to 13% [22].

Core Viewpoint - Bioventus Inc. will report its financial results for the fourth quarter of fiscal year 2025 on March 5, 2026, and will host a conference call to discuss these results and provide a business update [1]. Group 1 - The financial results will be announced before the market opens on March 5, 2026 [1]. - A conference call will take place at 8:30 a.m. Eastern Time on the same day to discuss the results [1]. - Participants can join the conference call by dialing 1-833-636-0497 and referring to the Bioventus Inc. Conference Call [2]. Group 2 - Bioventus is focused on delivering clinically proven, cost-effective products that aid in quick and safe healing [3]. - The company's mission is to help patients resume and enjoy active lives through its innovations in Pain Treatments, Restorative Therapies, and Surgical Solutions [3]. - Bioventus emphasizes high quality standards, evidence-based medicine, and strong ethical behavior, positioning itself as a trusted partner for physicians globally [3].

Group 1 - Top Wall Street analysts have revised their outlook on several prominent companies, indicating a shift in market sentiment [1] - The article suggests that investors should consider buying NOK stock based on analysts' recommendations [1]