Company Performance - Bioventus reported quarterly earnings of $0.21 per share, missing the Zacks Consensus Estimate of $0.22 per share, but showing an increase from $0.19 per share a year ago, resulting in an earnings surprise of -4.55% [1] - The company posted revenues of $147.66 million for the quarter ended June 2025, which was below the Zacks Consensus Estimate by 0.26% and a decrease from year-ago revenues of $151.22 million [2] - Over the last four quarters, Bioventus has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Bioventus shares have declined approximately 41.5% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [3] - The current Zacks Rank for Bioventus is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $137.39 million, and for the current fiscal year, it is $0.66 on revenues of $566.43 million [7] - The outlook for the Medical - Drugs industry, to which Bioventus belongs, is currently in the top 34% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Financial Data and Key Metrics Changes - Second quarter revenue was $148 million, reflecting a 2% decrease compared to 2024, but organic growth was 6% when adjusting for the divestiture of the Advanced Rehabilitation business [19][21] - Adjusted earnings per share increased by 31% to $0.21, while adjusted EBITDA margin was 23%, indicating strong gross margin stability [8][22] - Adjusted net income rose 45% to $18 million, driven by lower interest expenses and reduced employee equity-based compensation [23] Business Line Data and Key Metrics Changes - Surgical Solutions revenue grew by 11%, with strong double-digit growth in Ultrasonics [21] - Restorative Therapies experienced a 32% decrease in revenue due to the divestiture, but organic growth was 11% when excluding this impact [22] - Pain Treatments revenue increased by 1%, with organic growth estimated at 4% to 5% [21][36] Market Data and Key Metrics Changes - International segment revenue increased by 12%, with organic growth climbing 24% [22] - The pain treatment market is expected to grow above 20% annually in the US, with a total addressable market of approximately $2 billion [12] Company Strategy and Development Direction - The company aims to drive above-market revenue growth, expand profitability, and accelerate free cash flow generation [8][18] - Focus on expanding the PNS market with the recent clearance of StimTrial and Telesman, which are expected to generate significant revenue [12][15] - Plans for a limited commercial release of new products in the third quarter, with broader rollout expected in early 2026 [15][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year revenue and adjusted EBITDA guidance, despite challenges from foreign exchange and tariffs [28][29] - The company is well-positioned for sustained growth, with expectations for cash flow from operations to nearly double compared to the previous year [24][25] Other Important Information - The company was recognized as one of the top 10 companies to work for in North Carolina, highlighting positive employee engagement [18] - Recent refinancing of credit facilities improved liquidity and reduced annual interest expenses [27] Q&A Session Summary Question: Can you remind us what growth would have been year over year on an organic basis if not for that favorable rebate adjustment in 2Q 2024? - Management indicated that normalized growth would be around 4% to 5% [32][33] Question: What was the volume growth for Duralane in the quarter? - Management noted that Duralane continues to be a strong driver, with performance slightly above market growth in the mid-single digits [36] Question: What was BGS growth in the quarter? - BGS experienced high single-digit growth in the second quarter, with expectations for continued acceleration [40][42] Question: Can you provide more color on Exagen's strength in the quarter? - Growth in Exagen was attributed to improved commercial effectiveness and stronger execution from the sales team [48][50] Question: What are the expectations for R&D spending in the future? - R&D investment is expected to ramp up as the company focuses on expanding its Ultrasonics and PNS platforms [56][58] Question: What drove the increase in tariff expectations? - The expected tariff impact increased to approximately $3 million, primarily affecting the back half of the year [67][68]

Second Quarter 2025 Performance - Second quarter revenue reached $148 million, with organic revenue growth of 6%[13] - Adjusted Earnings Per Share (EPS) increased 31% to $0.21, and Adjusted EBITDA margin increased 23%[13] - Surgical Solutions revenue increased 11% compared to the prior year quarter, driven by double-digit growth in Ultrasonics[39] - Restorative Therapies revenue declined 32% compared to the prior year quarter due to the divestiture of the Advanced Rehabilitation Business, while EXOGEN grew 11%[39] - Pain Treatments revenue increased 1% compared to the prior year quarter[39] Financial Metrics and Guidance - Adjusted Gross Margin increased 50 basis points due to improved product mix[40] - The company ended the second quarter with $33 million in cash and $341 million in debt outstanding[48] - Cash from operations was an inflow of $26 million in the second quarter[48] - The company reaffirms its 2025 financial guidance, projecting net sales in the range of $560 million to $570 million, representing organic growth of 6% to 8%[52] - Adjusted EBITDA is expected to be in the range of $112 million to $116 million, and Adjusted Earnings Per Share is projected to be in the range of $0.64 to $0.68[52] Strategic Initiatives and Future Outlook - The company received FDA 510(k) clearance for StimTrial and TalisMann, Peripheral Nerve Stimulation (PNS) products, targeting the chronic peripheral pain market[18, 20] - The PNS market is estimated to be growing above 20% annually in the U S and is expected to exceed $500 million by 2029, with an expected total addressable market of approximately $2 billion[20] - The company plans to invest in a direct sales force in the second half of 2025 and expects TalisMann and StimTrial to potentially generate $100 million or more of revenue[27] - The company forecasts at least 100 basis points of Adjusted EBITDA margin expansion in 2025[30] - The company expects cash from operations in 2025 to nearly double compared to 2024 and expects to reduce net leverage to below 2 5 times by the end of 2025[30, 48]

Company Overview & Executive Summary Bioventus reported strong Q2 performance with organic revenue growth, improved profitability, and positive cash flow, reaffirming guidance [CEO Statement](index=1&type=section&id=CEO%20Statement) Bioventus CEO Rob Claypoole highlighted strong Q2 performance, anticipated accelerated growth, and new FDA approvals - The company demonstrated strong performance in Q2, with anticipated acceleration in revenue growth, profitability, and cash flow in the second half of the year[3](index=3&type=chunk) - Recent FDA approvals for TalisMann and StimTrial for chronic peripheral nerve pain treatment are expected to drive new growth[3](index=3&type=chunk) [Q2 2025 Key Financial Highlights](index=1&type=section&id=Q2%202025%20Key%20Financial%20Highlights) Bioventus achieved 6.2% organic revenue growth, positive diluted EPS, 31% non-GAAP EPS growth, and a 71% increase in operating cash flow Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | Change | Change Rate | Source | | :--- | :--- | :--- | :--- | :--- | :--- | | Reported Revenue | **$147.7 million** | **$151.2 million** | **-$3.5 million** | **-2.4%** | chunk_num 4, 7 | | Organic Revenue | - | - | - | **+6.2%** | chunk_num 4, 7 | | Diluted EPS | **$0.11** | **($0.40)** | **+$0.51** | Significant Improvement | chunk_num 6, 7 | | Non-GAAP EPS | **$0.21** | **$0.16** | **+$0.05** | **+31%** | chunk_num 6, 7 | | Operating Cash Flow | **$25.9 million** | **$15.2 million** | **+$10.7 million** | **+71%** | chunk_num 7, 25 | - The company reaffirmed its full-year 2025 guidance for revenue, Adjusted EBITDA, and non-GAAP EPS[7](index=7&type=chunk) Second Quarter 2025 Financial Results Bioventus reported a 2.4% revenue decrease due to divestitures, but achieved 6.2% organic growth and significant net income improvement [Overall Financial Performance](index=1&type=section&id=Overall%20Financial%20Performance) Bioventus reported a 2.4% revenue decrease to $147.7 million in Q2 2025, driven by divestitures, but achieved 6.2% organic growth and a $7.5 million net profit Q2 2025 Overall Financial Performance | Metric | Q2 2025 | Q2 2024 | Change | Change Rate | Source | | :--- | :--- | :--- | :--- | :--- | :--- | | Global Revenue | **$147.7 million** | **$151.2 million** | **-$3.5 million** | **-2.4%** | chunk_num 4 | | Organic Revenue Growth | - | - | - | **+6.2%** | chunk_num 4 | | Net Income (Loss) Attributable to Bioventus Inc. | **$7.5 million** | **($25.7) million** | **+$33.2 million** | Significant Improvement | chunk_num 5 | | Adjusted EBITDA | **$33.8 million** | **$34.5 million** | **-$0.7 million** | **-2.0%** | chunk_num 5 | | Diluted EPS | **$0.11** | **($0.40)** | **+$0.51** | Significant Improvement | chunk_num 6 | | Non-GAAP EPS | **$0.21** | **$0.16** | **+$0.05** | **+31%** | chunk_num 6 | - The decrease in reported revenue was primarily due to the divestiture of the Advanced Rehabilitation business[4](index=4&type=chunk)[5](index=5&type=chunk) - Non-GAAP EPS increased by **31%**, primarily driven by lower interest expenses and equity compensation costs[6](index=6&type=chunk) [Revenue by Business Segment](index=2&type=section&id=Revenue%20by%20Business%20Segment) In Q2 2025, Surgical Solutions revenue grew 11.4%, Pain Treatments 1.5%, and Restorative Therapies declined 31.6% (11.2% organically) due to divestiture Q2 2025 Revenue by Business Segment | Business Segment | Q2 2025 Revenue ($ million) | Q2 2024 Revenue ($ million) | Change ($ million) | Change Rate | Organic Change Rate | Source | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Pain Treatments | **$73.308** | **$72.260** | **$1.048** | **1.5%** | **1.3% (constant currency)** | chunk_num 8 | | Surgical Solutions | **$52.716** | **$47.337** | **$5.379** | **11.4%** | **11.2% (constant currency)** | chunk_num 8 | | Restorative Therapies | **$21.636** | **$31.620** | **($9.984)** | **(31.6%)** | **11.2%** | chunk_num 8, 10 | | **Total Net Sales** | **$147.660** | **$151.217** | **($3.557)** | **(2.4%)** | **-** | chunk_num 8 | - Pain Treatments revenue increased by **1.5%**, driven by strong demand for Durolane, partially offset by lower average selling prices[8](index=8&type=chunk) - Surgical Solutions revenue grew by **11.4%**, primarily driven by increased volume in the U.S. ultrasound business[9](index=9&type=chunk) - Restorative Therapies revenue decreased by **31.6%**, reflecting the divestiture of the Advanced Rehabilitation Business in late 2024, but organic revenue grew **11.2%** due to improved commercial efficiency and sales execution for the EXOGEN bone stimulation system[10](index=10&type=chunk) [Revenue by Geographic Region](index=2&type=section&id=Revenue%20by%20Geographic%20Region) In Q2 2025, U.S. revenue decreased 4.2% due to divestitures but saw 4.0% organic growth, while international revenue increased 12.4% (24.0% organically) Q2 2025 Revenue by Geographic Region | Region | Q2 2025 Revenue ($ million) | Q2 2024 Revenue ($ million) | Change ($ million) | Change Rate | Organic Change Rate | Source | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | United States | **$128.775** | **$134.409** | **($5.634)** | **(4.2%)** | **4.0%** | chunk_num 10 | | International | **$18.885** | **$16.808** | **$2.077** | **12.4%** | **24.0%** | chunk_num 10, 11 | | **Total Net Sales** | **$147.660** | **$151.217** | **($3.557)** | **(2.4%)** | **-** | chunk_num 10 | - U.S. revenue decline primarily reflects the divestiture of the Advanced Rehabilitation Business, though Surgical Solutions and Restorative Therapies achieved double-digit organic growth[10](index=10&type=chunk) - International revenue growth was driven by increased demand for Pain Treatments and Surgical Solutions, partially offset by the divestiture of the Advanced Rehabilitation Business[11](index=11&type=chunk) Recent Business Highlights & 2025 Financial Guidance Bioventus secured FDA approvals for new PNS systems and a new credit agreement, while reaffirming its full-year 2025 financial guidance [Strategic Achievements](index=4&type=section&id=Strategic%20Achievements) Bioventus received FDA 510(k) approvals for two innovative PNS systems and secured a new credit agreement, saving over $2 million in annual interest - Received FDA 510(k) clearance for TalisMann, an innovative peripheral nerve stimulation (PNS) system designed to provide long-term relief for chronic nerve pain[16](index=16&type=chunk) - Received FDA 510(k) clearance for StimTrial, allowing physicians to evaluate patient response to PNS therapy before permanent implantation[16](index=16&type=chunk) - The combination of TalisMann and StimTrial represents an exciting expansion opportunity for non-opioid, minimally invasive solutions in chronic pain management, with an estimated U.S. total addressable market of approximately **$2 billion**[16](index=16&type=chunk) - Executed a new credit agreement for a **$300 million** term loan and **$100 million** revolving credit facility, expected to save over **$2 million** in annual interest expense, increase liquidity, and extend debt maturity to July 2030[16](index=16&type=chunk) - Recognized by U.S. News & World Report as one of the Best Companies to Work For in North Carolina for 2025[16](index=16&type=chunk) [Full Year 2025 Financial Guidance](index=4&type=section&id=Full%20Year%202025%20Financial%20Guidance) Bioventus reaffirmed its 2025 full-year guidance, projecting net sales of $560-570 million, 6.1-8.0% organic growth, and non-GAAP EPS of $0.64-0.68 Full Year 2025 Financial Guidance | Metric | 2025 Guidance | Growth/Margin | Source | | :--- | :--- | :--- | :--- | | Net Sales | **$560 million - $570 million** | Organic growth of approximately **6.1% - 8.0%** | chunk_num 16 | | Adjusted EBITDA | **$112 million - $116 million** | Adjusted EBITDA margin growth of **100 basis points** (compared to 19.0% in 2024) | chunk_num 16 | | Non-GAAP EPS | **$0.64 - $0.68** | Growth of **30.6% - 38.8%** | chunk_num 16 | - Guidance assumes the company will continue to successfully offset **$5 million** in foreign exchange expenses incurred in the first half and the anticipated full-year impact of current tariffs[16](index=16&type=chunk) Consolidated Financial Statements Bioventus's Q2 2025 consolidated financial statements show a decrease in total assets and liabilities, with an increase in shareholders' equity [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of June 28, 2025, Bioventus reported total assets of $706.8 million, a decrease from year-end 2024, while total liabilities decreased and shareholders' equity increased Consolidated Balance Sheet Summary | Metric | June 28, 2025 ($ million) | December 31, 2024 ($ million) | Change ($ million) | Change Rate | Source | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | **$706.788** | **$727.956** | **($21.168)** | **-2.9%** | chunk_num 21 | | Cash and Cash Equivalents | **$32.910** | **$41.582** | **($8.672)** | **-20.9%** | chunk_num 21 | | Total Liabilities | **$505.489** | **$542.352** | **($36.863)** | **-6.8%** | chunk_num 21 | | Equity Attributable to Bioventus Inc. Stockholders | **$161.242** | **$147.940** | **$13.302** | **+9.0%** | chunk_num 21 | - Current liabilities decreased from **$210.4 million** to **$185.7 million**, primarily due to a reduction in the current portion of contingent consideration[21](index=21&type=chunk) [Consolidated Statements of Operations and Comprehensive Income (Loss)](index=8&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) In Q2 2025, Bioventus reported net sales of $147.7 million, a 2.4% decrease, with gross profit of $102.1 million and a significant improvement to $7.5 million net income Q2 2025 Consolidated Statements of Operations and Comprehensive Income (Loss) Summary | Metric | Q2 2025 ($ million) | Q2 2024 ($ million) | Change ($ million) | Change Rate | Source | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Sales | **$147.660** | **$151.217** | **($3.557)** | **-2.4%** | chunk_num 23 | | Cost of Sales | **$45.570** | **$47.578** | **($2.008)** | **-4.2%** | chunk_num 23 | | Gross Profit | **$102.090** | **$103.639** | **($1.549)** | **-1.5%** | chunk_num 23 | | Operating Income (Loss) | **$18.368** | **($31.473)** | **+$49.841** | Significant Improvement | chunk_num 23 | | Net Income (Loss) | **$9.272** | **($34.217)** | **+$43.489** | Significant Improvement | chunk_num 23 | | Net Income (Loss) Attributable to Bioventus Inc. | **$7.459** | **($25.682)** | **+$33.141** | Significant Improvement | chunk_num 23 | | Diluted EPS | **$0.11** | **($0.40)** | **+$0.51** | Significant Improvement | chunk_num 23 | - Selling, general, and administrative expenses decreased by **18.2%** from **$96.7 million** to **$79.1 million**, positively impacting operating income improvement[23](index=23&type=chunk) - The prior year period included **$31.9 million** in asset impairment charges, with no such charges in the current period[23](index=23&type=chunk) [Consolidated Condensed Statements of Cash Flows](index=9&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) In Q2 2025, Bioventus reported net cash from operating activities of $25.9 million, a 71% increase, with cash outflows from investing and financing activities Q2 2025 Consolidated Condensed Statements of Cash Flows Summary | Metric | Q2 2025 ($ million) | Q2 2024 ($ million) | Change ($ million) | Change Rate | Source | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | **$25.938** | **$15.162** | **+$10.776** | **+71.1%** | chunk_num 25 | | Net Cash from Investing Activities | **($1.369)** | **($0.077)** | **($1.292)** | Significant Increase in Outflow | chunk_num 25 | | Net Cash from Financing Activities | **($14.663)** | **($7.845)** | **($6.818)** | Significant Increase in Outflow | chunk_num 25 | | Cash and Cash Equivalents, End of Period | **$32.910** | **$31.994** | **+$0.916** | **+2.9%** | chunk_num 25 | - The increase in operating cash flow was primarily driven by improved net income and positive changes in working capital[25](index=25&type=chunk) - Increased cash outflow from financing activities was mainly due to **$10.8 million** in contingent consideration payments and **$5 million** in revolving credit facility repayments[25](index=25&type=chunk) Non-GAAP Financial Measures Bioventus utilizes various non-GAAP financial measures, including organic revenue growth and Adjusted EBITDA, to provide a clearer view of core business performance [Definitions of Non-GAAP Measures](index=10&type=section&id=Definitions%20of%20Non-GAAP%20Measures) Bioventus uses non-GAAP metrics like organic revenue growth, Adjusted EBITDA, and non-GAAP EPS to assess performance by excluding non-recurring or non-cash items - Organic revenue growth: Revenue excluding the impact of business acquisitions and divestitures, used to measure core business performance[26](index=26&type=chunk) - Adjusted EBITDA: Net income (loss) adjusted for depreciation, amortization, income tax, and interest expense, further adjusted for non-cash and non-recurring items such as acquisition/divestiture costs, equity compensation, and asset impairment[28](index=28&type=chunk) - Non-GAAP gross profit, operating income, net income, and EPS: Adjusted for items like depreciation, amortization, acquisition/divestiture costs, equity compensation, and asset impairment to provide a clearer understanding of the company's long-term core business performance[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) - The company does not provide forward-looking GAAP financial measures due to the inability to reasonably determine the impact and timing of acquisition and divestiture-related expenses, accounting fair value adjustments, and certain other adjusting items[12](index=12&type=chunk)[38](index=38&type=chunk) [Reconciliation of Net Income (Loss) to Adjusted EBITDA](index=12&type=section&id=Reconciliation%20of%20Net%20Income%20(Loss)%20to%20Adjusted%20EBITDA) Bioventus's Q2 2025 Adjusted EBITDA was $33.8 million, a slight decrease from $34.5 million in the prior year, derived by adjusting net income for non-GAAP items Reconciliation of Net Income (Loss) to Adjusted EBITDA | Item | Q2 2025 ($ million) | Q2 2024 ($ million) | Source | | :--- | :--- | :--- | :--- | | Net Income (Loss) | **$9.272** | **($34.217)** | chunk_num 41 | | Interest Expense, Net | **$7.494** | **$9.924** | chunk_num 41 | | Income Tax Expense (Benefit), Net | **$1.041** | **($7.339)** | chunk_num 41 | | Depreciation and Amortization | **$12.049** | **$13.090** | chunk_num 41 | | Equity Compensation | **$3.643** | **$5.777** | chunk_num 41 | | Asset Impairment | — | **$31.870** | chunk_num 41 | | Other Adjusting Items | **$0.272** | **$1.347** | chunk_num 41 | | **Adjusted EBITDA** | **$33.751** | **$34.452** | chunk_num 41 | - Q2 2024 included **$31.9 million** in asset impairment charges, with no such charges in the current period[41](index=41&type=chunk) - Equity compensation expense decreased from **$5.8 million** in Q2 2024 to **$3.6 million** in Q2 2025[41](index=41&type=chunk) [Reconciliation of Other Reported GAAP Measures to Non-GAAP Measures](index=13&type=section&id=Reconciliation%20of%20Other%20Reported%20GAAP%20Measures%20to%20Non-GAAP%20Measures) In Q2 2025, Bioventus reported non-GAAP gross profit of $112.7 million, operating income of $30.6 million, net income of $18.5 million, and diluted EPS of $0.21 Q2 2025 GAAP to Non-GAAP Measures Reconciliation | Metric | GAAP Reported Value ($ million) | Non-GAAP Adjustments ($ million) | Non-GAAP Measure ($ million) | Source | | :--- | :--- | :--- | :--- | :--- | | Gross Profit | **$102.090** | **$10.603 (Depreciation & Amortization)** | **$112.693** | chunk_num 47 | | Operating Expenses | **$80.550** | **($1.578) (Multiple Adjustments)** | **$78.972** | chunk_num 47 | | Research and Development Expenses | **$3.172** | **($0.096) (Multiple Adjustments)** | **$3.076** | chunk_num 47 | | Operating Income | **$18.368** | **$12.277 (Multiple Adjustments)** | **$30.645** | chunk_num 47 | | Net Income | **$9.272** | **$9.213 (Multiple Adjustments)** | **$18.485** | chunk_num 47 | | Diluted EPS | **$0.11** | **$0.10 (Multiple Adjustments)** | **$0.21** | chunk_num 47 | - Non-GAAP gross margin improved from **69.1%** (GAAP) to **76.3%**, and non-GAAP operating margin increased from **12.4%** (GAAP) to **20.8%**[47](index=47&type=chunk) - Adjustments include depreciation and amortization, shareholder litigation costs, financial restructuring costs, loss on business disposition, and other strategic transaction-related expenses[47](index=47&type=chunk) Additional Information This section provides legal disclaimers regarding forward-looking statements, details on the earnings conference call, and an overview of Bioventus's mission and product portfolio [Legal Notice Regarding Forward-Looking Statements](index=5&type=section&id=Legal%20Notice%20Regarding%20Forward-Looking%20Statements) This press release contains forward-looking statements about future financial performance, business strategy, and market opportunities, subject to inherent risks and uncertainties - Forward-looking statements cover future financial performance, liquidity, business strategy, regulatory approvals, product commercialization, sales trends, and market opportunities[17](index=17&type=chunk) - Key risk factors include tariffs, benefits from the Advanced Rehabilitation Business divestiture, FDA regulatory processes, new product commercialization capabilities, growth management, talent retention, supply chain issues, debt covenants, additional capital needs, financial controls, acquisition integration, cybersecurity, government regulatory compliance, product liability claims, product demand fluctuations, and intellectual property[18](index=18&type=chunk)[19](index=19&type=chunk) [Earnings Conference Call Details](index=4&type=section&id=Earnings%20Conference%20Call%20Details) Bioventus management hosted an earnings conference call on August 6, 2025, at 8:30 AM ET, with webcast and materials available on the investor relations website - The conference call was held on August 6, 2025, at 8:30 AM ET, to discuss the company's financial results and provide business updates[14](index=14&type=chunk) - A live webcast and accompanying materials are available on the company's investor relations website at https://ir.bioventus.com/, with an archive available until August 5, 2026[15](index=15&type=chunk) [About Bioventus](index=4&type=section&id=About%20Bioventus) Bioventus is a global leader in active healing innovation, providing clinically proven, cost-effective products across pain treatments, surgical solutions, and restorative therapies - Bioventus is dedicated to providing clinically proven, cost-effective products that help patients heal quickly and safely, with a mission to help patients resume and enjoy active lives[13](index=13&type=chunk) - The company's innovative product portfolio spans pain treatments, surgical solutions, and restorative therapies[13](index=13&type=chunk) - Built on high-quality standards, evidence-based medicine, and strong ethical conduct, the company is a trusted partner for physicians worldwide[13](index=13&type=chunk)

Core Viewpoint - Bioventus Inc. has secured a $400 million Senior Secured Credit Agreement, which includes a $300 million term loan and a $100 million revolving credit facility, aimed at enhancing liquidity and financial flexibility [1][2][3]. Group 1: Credit Agreement Details - The new Credit Agreement increases the revolving credit facility from $40 million to $100 million compared to the previous 2019 Credit Agreement [2]. - The interest margin has been reduced by 75 basis points, resulting in over $2 million in annual interest expense savings [2]. - The annual amortization on the term loan has been lowered from 10% to 5% for the duration of the loan [2]. Group 2: Financial Impact and Use of Proceeds - The proceeds from the Credit Agreement were utilized to repay the outstanding loan balance of $333 million under the 2019 Credit Agreement [3]. - The repayment was accomplished using $30 million drawn from the new revolving credit facility, $3 million in cash from the balance sheet, and the new $300 million term loan [3]. Group 3: Company Overview - Bioventus is recognized for delivering clinically proven, cost-effective products that facilitate quick and safe healing, with a mission to help patients resume active lives [4]. - The company focuses on innovations for active healing, including pain treatments, restorative therapies, and surgical solutions [4].

These two clearances mark an important step forward for Bioventus and represent a substantial growth opportunity as the Company looks to expand in the PNS market, which is currently estimated to be growing above 20 percent annually and expected to exceed $500 million by 2029. With TalisMann™ and StimTrial™ now FDA-cleared, Bioventus offers a comprehensive PNS portfolio that empowers physicians to potentially treat a broader spectrum of patients—from initial assessment to long-term therapy—with greater confi ...

Core Insights - Bioventus Inc. will report its financial results for Q2 of fiscal year 2025 on August 6, 2025, before market opening [1] - A conference call will be held at 8:30 a.m. Eastern Time on the same day to discuss the results and provide a business update [1] Company Overview - Bioventus is a global leader in innovations for active healing, delivering clinically proven and cost-effective products that aid in quick and safe healing [3] - The company's mission focuses on helping patients resume and enjoy active lives through its offerings 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 worldwide [3]

Core Viewpoint - Bioventus reported quarterly earnings of $0.08 per share, exceeding the Zacks Consensus Estimate of $0.06 per share, and showing an increase from $0.07 per share a year ago, indicating a positive earnings surprise of 33.33% [1] Financial Performance - The company achieved revenues of $123.88 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.72%, although this represents a decline from $129.46 million in the same quarter last year [2] - Over the last four quarters, Bioventus has exceeded consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - Bioventus shares have declined approximately 33.1% since the beginning of the year, contrasting with the S&P 500's decline of 3.9% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.24 on revenues of $148.6 million, and for the current fiscal year, it is $0.66 on revenues of $565.01 million [7] - The estimate revisions trend for Bioventus is currently favorable, leading to a Zacks Rank 2 (Buy), suggesting that the shares are expected to outperform the market in the near future [6] Industry Context - The Medical - Drugs industry, to which Bioventus belongs, is currently ranked in the top 22% of over 250 Zacks industries, indicating a favorable outlook for stocks within this sector [8]

Financial Data and Key Metrics Changes - First quarter revenue was $124 million, reflecting a 5% organic growth, which was in line with internal expectations despite a 4% decline due to the divestiture of the Advanced Rehabilitation business [7][16] - Adjusted earnings per share increased by 33% to $0.08, supported by a strong gross margin and lower interest expenses [8][20] - Adjusted EBITDA was over $19 million, a decrease of $3 million from the prior year, primarily due to the divestiture and a foreign currency loss [17][19] Business Line Data and Key Metrics Changes - Surgical solutions revenue grew by 7%, driven by double-digit growth in ultrasonics, with capital sales in the US up by more than 50% compared to the prior year [9][17] - Pain treatments revenue increased by 4%, impacted by lower distributor purchases following higher orders in the previous quarter [18] - Restorative therapies experienced a 35% decline in revenue due to the divestiture, but organic growth was 4% [18] Market Data and Key Metrics Changes - International segment revenue declined by 12%, with organic growth at 1% [18] - The company noted that the macroeconomic environment has become more dynamic, but does not foresee a material impact from tariffs at this time [13][22] Company Strategy and Development Direction - The company aims to drive above-market revenue growth, expand profitability, and accelerate free cash flow generation [9][12] - A new platelet-rich plasma (PRP) system was added to the pain treatments portfolio, expected to enhance competitive advantage [10][11] - The company is focused on maintaining a strong clinical value proposition and leveraging its dedicated sales force to drive growth [26][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth despite macroeconomic uncertainties, with a strong focus on disciplined execution [8][14] - The company expects to nearly double cash from operations in 2025 compared to 2024, with a significant acceleration in cash flow anticipated starting in the second quarter [13][21] - Full-year 2025 guidance includes organic revenue growth of 6% to 8%, adjusted EBITDA of $112 million to $116 million, and EPS of $0.64 to $0.68 [22] Other Important Information - The company has enhanced its financial liquidity and cash flow generation, positioning itself as a market leader in large growing markets [14] - The management team is focused on reducing leverage to below 2.5 times by the end of 2025 [44] Q&A Session Summary Question: Update on the pain market and competition - Management noted a shift from multi-injection to single-injection treatments, with Duralane showing strong growth and profitability [26][27] Question: Tougher Q2 comparisons for pain treatments - Management indicated that unfavorable comparisons from the previous year would ease in the second half, supporting growth acceleration [30][42] Question: Confidence in organic growth and EBITDA acceleration - Management expressed confidence in revenue and EBITDA growth in the second half, driven by recent account wins and improved sales execution [39][42] Question: Plans for M&A opportunities - The company is focused on reducing leverage and pursuing synergistic opportunities that align with its growth strategy [47][49] Question: Initiatives from the new OUS business manager - The new manager is expected to drive a focused growth strategy in international markets, prioritizing specific countries and products [51][52]

First Quarter 2025 Performance - Revenue was $124 million, a 4% decrease due to the divestiture of the Advanced Rehabilitation business[22] - Organic growth reached 5%, demonstrating solid performance across all three business segments[22] - Adjusted EPS increased 33% to $008[12] - Adjusted EBITDA was $19 million, a $3 million decrease compared to the prior year quarter, impacted by the Advanced Rehabilitation divestiture and a $11 million foreign currency loss[22] Segment Performance - Surgical Solutions revenue increased by 7%, driven by double-digit growth in Ultrasonics with U S capital sales up more than 50%[15,29] - Pain Treatments revenue increased by 4%, with growth impacted by a 3% to 4% reduction in distributor buying following higher purchases at the end of last year[26,29] - Restorative Therapies revenue declined by 35% due to the divestiture of the Advanced Rehabilitation business, while Exogen grew by 4%[28,29] Financial Guidance and Priorities - The company reaffirms its 2025 financial guidance, with net sales expected to be in the range of $560 million to $570 million, representing organic growth of 6% to 8%[40] - Adjusted EBITDA is projected to be in the range of $112 million to $116 million, and Adjusted Earnings Per Share is expected to be in the range of $064 to $068[40] - The company forecasts at least 100 basis points of Adjusted EBITDA margin expansion in 2025[17]