Core Insights - Bioventus Inc. has received FDA 510(k) clearances for TalisMann™ and StimTrial™, enhancing its Peripheral Nerve Stimulation (PNS) solutions for chronic pain management [1][2][3] Company Developments - The FDA clearances represent a significant growth opportunity for Bioventus in the PNS market, which is projected to grow over 20% annually and exceed $500 million by 2029 [2] - Bioventus plans to initiate a limited commercial release of TalisMann™ and StimTrial™ in select U.S. markets in Q3 2025, with a broader rollout expected in early 2026 [5] Product Highlights - TalisMann™ utilizes patented electric field conduction technology combined with an integrated pulse generator, aimed at providing long-term relief from chronic nerve pain and improving physician lead placement [8] - StimTrial™ is designed as a trial lead to help physicians assess patient responses to PNS therapy, potentially facilitating adoption and reimbursement [8]

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]

Financial Data and Key Metrics Changes - First quarter revenue was $124 million, reflecting a 4% decline due to the divestiture of the Advanced Rehabilitation business, but organic growth was 5% [16][18] - Adjusted earnings per share increased by 33% to $0.08, supported by strong gross margins and lower interest expenses [7][20] - Adjusted EBITDA was over $19 million, down $3 million from the prior year, primarily due to the divestiture and a foreign currency loss [17][20] 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 over 50% compared to the prior year [17][18] - Pain treatments revenue increased by 4%, impacted by lower distributor purchases following higher orders at the end of the previous year [18] - Restorative therapies revenue declined by 35% 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 a significant opportunity in the PRP market, which is expected to synergize with existing sales channels [11][12] Company Strategy and Development Direction - The company aims to drive above-market revenue growth, expand profitability, and accelerate free cash flow generation [8][12] - A focus on enhancing the pain treatments portfolio with the addition of a PRP system is part of the growth strategy [10][11] - The company is committed to maintaining a strong cash flow and reducing leverage, targeting below 2.5 times by the end of 2025 [21][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth despite macroeconomic uncertainties, with no material impact from tariffs anticipated at this time [13][22] - The company expects a significant acceleration in cash flow starting in the second quarter, with a projected doubling of cash from operations compared to 2024 [21][22] - Management highlighted the importance of agility and resilience in navigating challenges and emphasized the potential for distinguishing the company from competitors [14][15] Other Important Information - The company reaffirmed its 2025 financial guidance, including organic revenue growth of 6% to 8% and adjusted EBITDA of $112 million to $116 million [22] - The company has established a solid foundation for growth, with a diverse portfolio of short, mid, and long-term growth drivers [14] Q&A Session Summary Question: Update on the pain market and competition - Management noted a shift from multi-injection to single-injection treatments, with strong clinical value propositions supporting growth [24][25] Question: Tougher Q2 comparisons for pain treatments - Management explained that last year's competitor supply challenges led to additional volume, which will not be present this year [28][29] Question: Exposure to pharmaceutical tariffs - Management stated that current pharmaceutical products are excluded from tariffs and emphasized vigilance in monitoring the situation [32] Question: Confidence in organic growth and EBITDA acceleration - Management expressed confidence in the second half of the year, expecting significant growth as unfavorable comparisons are cleared [37][42] Question: Plans for M&A opportunities - Management indicated a focus on reducing leverage while remaining open to synergistic M&A opportunities that align with growth goals [46][48] Question: Initiatives from the new OUS business manager - The new manager is expected to drive a focused growth strategy and improve commercial execution in international markets [52][53]

```markdown [Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Results%3A) Bioventus reported Q1 2025 revenue of $123.9 million, a 4.3% decline, with 5.0% organic growth and a narrowed net loss Q1 2025 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | Change | Organic Change* | | :--- | :--- | :--- | :--- | :--- | | **Worldwide Revenue** | $123.9M | $129.5M | -4.3% | +5.0% | | **Net Loss** | ($2.6M) | ($4.9M) | +46.9% | N/A | | **Loss per Share (GAAP)** | ($0.04) | ($0.08) | +50.0% | N/A | | **Non-GAAP EPS** | $0.08 | $0.06 | +33.3% | N/A | | **Adjusted EBITDA** | $19.2M | $22.6M | -15.0% | N/A | - The reported revenue decline was a direct result of the prior-year divestiture of the Advanced Rehabilitation Business. Excluding this, the company achieved positive organic growth across all business segments[3](index=3&type=chunk) [Revenue Analysis by Business Segment](index=2&type=section&id=Revenue%20By%20Business) Q1 2025 organic growth was positive across all segments, with Pain Treatments up 3.9% and Surgical Solutions up 7.0% Q1 2025 Revenue by Segment (in millions) | Segment | Q1 2025 Revenue | Change (Reported) | Key Driver | | :--- | :--- | :--- | :--- | | **Pain Treatments** | $58.9 | +3.9% | Double-digit growth in Durolane demand. | | **Surgical Solutions** | $45.2 | +7.0% | Double-digit growth from Ultrasonics capital equipment purchases in the U.S. | | **Restorative Therapies** | $19.7 | -35.3% | Grew 4.0% organically, driven by EXOGEN system sales execution. | Q1 2025 Revenue by Geography (in millions) | Geography | Q1 2025 Revenue | Change (Reported) | | :--- | :--- | :--- | | **U.S.** | $110.5 | -3.3% | | **International** | $13.4 | -12.0% | [Business Highlights and Full-Year 2025 Guidance](index=2&type=section&id=Recent%20Business%20Highlights) Bioventus reiterated its full-year 2025 guidance, projecting net sales of $560-$570 million and Adjusted EBITDA of $112-$116 million Full-Year 2025 Financial Guidance | Metric | Guidance Range | Implied Growth | | :--- | :--- | :--- | | **Net Sales** | $560M - $570M | ~6.1% to 8.0% (Organic) | | **Adjusted EBITDA** | $112M - $116M | ~100 bps margin growth | | **Non-GAAP EPS** | $0.64 - $0.68 | +30.6% to +38.8% | - Entered into a U.S. distribution agreement with APEX Biologix to distribute its XCELL PRP system, which expands the Pain Treatments portfolio[9](index=9&type=chunk) - Strengthened the executive leadership team with the addition of a Senior Vice-President for Surgical Solutions and a Vice-President for Strategic Accounts and Market Access[9](index=9&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Q1 2025, covering balance sheet, operations, and cash flows [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20balance%20sheets) As of March 29, 2025, total assets decreased to $691.4 million due to reduced cash, with liabilities also down and equity stable Balance Sheet Summary (in thousands) | Account | March 29, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $22,802 | $41,582 | | **Total current assets** | $249,367 | $275,610 | | **Total assets** | $691,414 | $727,956 | | **Total current liabilities** | $174,751 | $210,398 | | **Total liabilities** | $505,935 | $542,352 | | **Total stockholders' equity** | $185,479 | $185,604 | [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20statements%20of%20operations%20and%20comprehensive%20loss) Q1 2025 net sales were $123.9 million, with stable operating income and a reduced net loss of $2.6 million Statement of Operations Summary (in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net sales** | $123,876 | $129,457 | | **Gross profit** | $83,056 | $88,380 | | **Operating income** | $4,869 | $4,928 | | **Interest expense, net** | $7,509 | $10,339 | | **Net loss attributable to Bioventus Inc.** | ($2,637) | ($4,890) | | **Loss per share** | ($0.04) | ($0.08) | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20condensed%20statements%20of%20cash%20flows) Q1 2025 net cash used in operating activities was $19.3 million, ending the quarter with $22.8 million in cash Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net cash from operating activities** | ($19,331) | ($6,005) | | **Net cash from investing activities** | ($826) | ($1,000) | | **Net cash from financing activities** | $947 | ($4,242) | | **Net change in cash** | ($18,780) | ($11,791) | | **Cash at end of period** | $22,802 | $25,173 | [Non-GAAP Financial Measures and Reconciliations](index=11&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) This section defines and reconciles non-GAAP metrics, including Organic Revenue Growth and Adjusted EBITDA, for core operating performance insight [Use of Non-GAAP Financial Measures](index=11&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures_definitions) The company defines 'organic revenue' and 'Adjusted EBITDA' as non-GAAP measures for better performance trend analysis and operating evaluation - The company uses "organic revenue growth" to compare performance excluding the significant impact of acquisitions and divestitures, allowing for better evaluation of long-term trends[24](index=24&type=chunk) - Adjusted EBITDA is used by management for operating performance evaluation and planning, as it excludes certain cash and non-cash items not considered part of ongoing operations[26](index=26&type=chunk) [Reconciliation of Net Loss to Adjusted EBITDA](index=13&type=section&id=Reconciliation%20of%20Net%20(Loss)%20Income%20to%20Adjusted%20EBITDA%20(unaudited)) Q1 2025 GAAP net loss of $3.3 million reconciled to non-GAAP Adjusted EBITDA of $19.2 million, primarily adjusted for depreciation and equity compensation Reconciliation of Net Loss to Adjusted EBITDA (Q1 2025, in thousands) | Description | Amount | | :--- | :--- | | **Net loss** | **($3,322)** | | Interest expense, net | $7,509 | | Income tax benefit, net | ($95) | | Depreciation and amortization | $11,865 | | Equity compensation | $2,414 | | Other adjustments | $841 | | **Adjusted EBITDA** | **$19,212** | [Reconciliation of Other GAAP to Non-GAAP Measures](index=14&type=section&id=Reconciliation%20of%20Other%20Reported%20GAAP%20Measures%20to%20Non-GAAP%20Measures) This section reconciles Q1 2025 GAAP metrics to non-GAAP counterparts, including Gross Margin and Net Loss to Net Income Q1 2025 GAAP to Non-GAAP Reconciliation | Metric | Reported GAAP | Non-GAAP Measure | | :--- | :--- | :--- | | **Gross Profit** | $83.1M (67.0%) | $93.3M (75.3%) | | **Operating Income** | $4.9M (3.9%) | $17.7M (14.3%) | | **Net (Loss) Income** | ($3.3M) | $6.2M | | **EPS** | ($0.04) | $0.08 | [Forward-Looking Statements](index=4&type=section&id=Legal%20Notice%20Regarding%20Forward-Looking%20Statements) This section cautions that forward-looking statements are subject to risks, including tariffs, supply chain issues, and regulatory changes - The press release contains forward-looking statements about future performance and strategy, which are subject to inherent risks and uncertainties[14](index=14&type=chunk) - Key risks that could impact future results include tariffs, failure to realize benefits from the Advanced Rehabilitation Business divestiture, supply chain disruptions, debt covenants, and potential FDA reclassification of products[15](index=15&type=chunk)[16](index=16&type=chunk) ```

Core Viewpoint - Bioventus Inc. reported a decline in revenue for the first quarter of 2025, primarily due to the divestiture of its Advanced Rehabilitation Business, but achieved organic revenue growth across all business segments, indicating resilience in its strategic execution despite macroeconomic challenges [2][6]. Financial Performance - Worldwide revenue for Q1 2025 was $123.9 million, a decrease of 4.3% from $129.5 million in the same period last year, largely impacted by the divestiture [2][5]. - Organic revenue increased by 5.0%, reflecting positive growth across all three business segments [2][6]. - The net loss attributable to Bioventus Inc. was $2.6 million, an improvement from a net loss of $4.9 million in the prior-year period [3][4]. - Adjusted EBITDA for the quarter was $19.2 million, down from $22.6 million in the previous year, primarily due to the divestiture and planned growth investments [3][6]. Revenue Breakdown by Business - U.S. revenue from Pain Treatments was $52.7 million, up 4.0% year-over-year, while Surgical Solutions revenue increased by 6.5% to $40.8 million [5][8]. - Restorative Therapies revenue fell by 32.9% to $17.0 million, significantly affected by the divestiture of the Advanced Rehabilitation Business [5][9]. - International revenue totaled $13.4 million, a decline of 12.0%, with Pain Treatments and Surgical Solutions showing modest growth, while Restorative Therapies revenue dropped by 47.1% [5][9]. Strategic Developments - The company reiterated its financial guidance for 2025, expecting net sales between $560 million and $570 million, reflecting organic growth of approximately 6.1% to 8.0% when accounting for the divestiture [10][13]. - Adjusted EBITDA guidance for 2025 is set between $112 million and $116 million, indicating a potential increase in Adjusted EBITDA margin compared to 2024 [10][13]. - Non-GAAP EPS is projected to be between $0.64 and $0.68, representing a growth of 30.6% to 38.8% [10][13].

Core Viewpoint - Bioventus Inc. will report its financial results for Q1 of fiscal year 2025 on May 6, 2025, before market opening, followed by a conference call for discussion [1] Group 1: Financial Reporting - The financial results for the first quarter of fiscal year 2025 will be announced before the market opens on May 6, 2025 [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] Group 2: Conference Call Participation - Participants can join the conference call by dialing 1-833-636-0497 and referencing the Bioventus Inc. Conference Call [2] - A live webcast of the call will be available on the Company's Investor Relations website, with an archive for replay until May 5, 2026 [2] Group 3: Company Overview - Bioventus is a global leader in innovations for active healing, providing clinically proven and cost-effective products for quick and safe healing [3] - The company's mission focuses on helping patients resume active lives through offerings in Pain Treatments, Restorative Therapies, and Surgical Solutions [3] - Bioventus emphasizes high quality standards, evidence-based medicine, and ethical behavior, positioning itself as a trusted partner for physicians worldwide [3]

Industry Overview - The U.S. healthcare sector is facing challenges due to technological innovation, policy shifts, financial pressures, and changing consumer expectations [1] - The sector has underperformed compared to the S&P 500, growing only 2.5% in 2024 versus the benchmark's 23.3% increase [2] - Total U.S. healthcare spending has increased from $1.4 trillion in 2000 to $4.9 trillion in 2023, despite the healthcare sector's weighting in the S&P 500 dropping to a 25-year low of about 10% [3] Growth Drivers - An aging population and rising health issues like obesity and diabetes are contributing to sector growth [4] - Key areas such as telehealth, surgery, data analytics, and biotechnology are experiencing significant advancements [3] - The integration of AI in medical research is expected to drive long-term changes in the sector [5] Investment Opportunities - Stocks like Bioventus Inc. (BVS), Amicus Therapeutics, Inc. (FOLD), Rigel Pharmaceuticals, Inc. (RIGL), and The Ensign Group, Inc. (ENSG) are identified as having potential for growth [2] - Bioventus has an expected earnings growth rate of 34.7% for the current year, with a Zacks Consensus Estimate improvement of 43.5% [7] - Amicus Therapeutics shows an expected earnings growth rate of 116.7%, with a 20.9% improvement in earnings estimates [8] - Rigel Pharmaceuticals has an expected earnings growth rate of 20.2%, with a 13.3% improvement in earnings estimates [9] - Ensign Group has an expected earnings growth rate of 13.5%, with a 1.5% improvement in earnings estimates [10]