Globus Medical (NYSE:GMED) Q3 2025 Earnings Call November 06, 2025 04:30 PM ET Speaker1Welcome to Globus Medical's third quarter 2025 earnings call. At this time, all lines will be on mute, and a Q&A session will be held after the prepared remarks. To ask a question during the session, you will need to press Star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press Star 11 again. Please be advised that today's conference is being ...

Sales Performance - Total net sales for the three months ended September 30, 2025, were $769.0 million, an increase of $143.3 million or 22.9% compared to $625.7 million in the same period of 2024[159]. - Net sales in the United States increased by $121.8 million, or 24.6%, driven by Nevro sales of $83.3 million and Musculoskeletal Solutions and Neuromonitoring sales of $48.4 million[159]. - International net sales increased by $21.5 million, or 16.5%, primarily due to Nevro sales of $15.9 million and an increase in Musculoskeletal Solutions spine product sales of $6.0 million[160]. - Total net sales increased by $250.4 million, or 13.5%, to $2.1 billion for the nine months ended September 30, 2025, driven by a $224.1 million increase in U.S. sales[173]. - International net sales rose by $26.3 million, or 6.9%, for the nine months ended September 30, 2025, with significant contributions from the Europe and Middle East region[174]. Cost and Expenses - Cost of sales decreased by $18.0 million, or 6.6%, to $252.5 million, with the percentage of net sales dropping to 32.8% from 43.2%[162]. - Cost of sales decreased by $75.3 million, or 9.8%, to $696.7 million for the nine months ended September 30, 2025, resulting in a cost of sales percentage of 33.0%[175]. - Research and development expenses increased by $2.7 million, or 7.6%, to $38.1 million, representing 4.9% of net sales[163]. - Research and development expenses decreased by $19.3 million, or 14.8%, to $111.1 million for the nine months ended September 30, 2025, representing 5.3% of net sales[176]. - Selling, general and administrative expenses rose by $73.6 million, or 30.6%, to $313.6 million, accounting for 40.8% of net sales[164]. - Selling, general and administrative expenses increased by $131.8 million, or 18.1%, to $860.0 million for the nine months ended September 30, 2025, accounting for 40.7% of net sales[177]. - Acquisition-related costs surged by $18.9 million, or 151.3%, to $31.5 million for the nine months ended September 30, 2025, primarily due to costs associated with the Nevro Merger[179]. - Restructuring costs decreased by $9.9 million, or 41.5%, to $13.9 million for the nine months ended September 30, 2025, representing 0.7% of net sales[180]. Income and Tax - A bargain purchase gain of $3.8 million was recorded due to adjustments related to the Nevro Merger, representing 0.5% of net sales[168]. - The company reported a bargain purchase gain of $114.4 million for the nine months ended September 30, 2025, attributed to the Nevro Merger[181]. - The income tax provision increased by $19.8 million, or 381.7%, to $25.0 million for the three months ended September 30, 2025, with an effective tax rate of 17.4%[170]. Cash Flow and Financing - Net cash provided by operating activities for the nine months ended September 30, 2025, was $504.86 million, an increase of $194.56 million compared to $310.30 million in 2024[187]. - Cash used in investing activities increased by $171.64 million, primarily due to acquisition-related costs of $234.9 million[189]. - Net cash used in financing activities was $692.38 million, largely due to the repayment of senior convertible notes amounting to $450 million[190]. - The company reported a net income increase of $320.8 million, contributing to higher cash from operating activities[188]. - The effect of foreign exchange rate changes on cash was an increase of $18.41 million for the nine months ended September 30, 2025[187]. - The company experienced a decrease in cash and cash equivalents of $412.67 million for the nine months ended September 30, 2025[187]. - The company has no outstanding borrowings under the September 2023 Credit Agreement as of September 30, 2025[186]. - The company is subject to financial covenants, including a funded net indebtedness to adjusted EBITDA ratio[186]. Mergers and Acquisitions - The Nevro Merger was completed on April 3, 2025, with Nevro's common stock converted into cash at $5.85 per share[150]. - The company entered into a revolving credit facility of up to $400 million with a termination date of September 27, 2028[186]. - The company acquired additional obligations and commitments related to the NuVasive and Nevro mergers, including contingent consideration arrangements and senior convertible notes[192]. - International net sales accounted for approximately 19.4% of total net sales during the nine months ended September 30, 2025[155]. - The company plans to expand its U.S. sales force to strengthen its market position[154].

We can dig further into the company’s sales dynamics by analyzing its constant currency revenue, which excludes currency movements that are outside their control and not indicative of demand. Over the last two years, its constant currency sales averaged 58.8% year-on-year growth. Because this number is better than its normal revenue growth, we can see that foreign exchange rates have been a headwind for Globus Medical.We at StockStory place the most emphasis on long-term growth, but within healthcare, a hal ...

"We are pleased with the strength of our overall results and continued progress throughout the company," commented Keith Pfeil, President and Chief Executive Officer. "Q3 revenue rose 23%, driven by 10% growth in our US Spine business, as momentum accelerated during the quarter with broad based demand across our products and geographies. Our recently acquired Nevro business continued to exceed expectations, underscoring the strength of our integration strategy, as we position this business for future growth ...

AUDUBON, Pa., Nov. 06, 2025 (GLOBE NEWSWIRE) -- Globus Medical, Inc. (NYSE: GMED), a leading musculoskeletal solutions company, today announced its financial results for the quarter ended September 30, 2025. Worldwide net sales were $769.0 million, an increase of 22.9%, or an increase of 22.3% on a constant currency basisBase business, excluding Nevro, net sales were $669.8 million, an increase of 7.0%, or an increase of 6.5% on a constant currency basisGAAP net income for the quarter was $119.0 millionGAAP ...

Core Viewpoint - Wall Street analysts predict that Globus Medical (GMED) will report quarterly earnings of $0.79 per share, reflecting a year-over-year decline of 4.8%, while revenues are expected to reach $733.45 million, marking a 17.2% increase compared to the same quarter last year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been revised downward by 1.3%, indicating a collective reassessment by covering analysts [2]. - Revisions to earnings estimates are crucial as they serve as significant indicators for predicting potential investor actions regarding the stock [3]. Revenue Projections - Analysts expect 'Net Sales by Product Category - Enabling Technologies' to be $40.23 million, showing a year-over-year increase of 5% [5]. - The consensus for 'Net Sales by Product Category - Musculoskeletal Solutions' is projected at $693.98 million, reflecting an 18.1% increase from the prior-year quarter [5]. - The average prediction for 'Geographic Revenues - International' is $144.37 million, indicating an 11.1% increase from the year-ago quarter [6]. - 'Geographic Revenues - United States' are forecasted to reach $589.84 million, representing a 19% increase from the prior-year quarter [6]. Stock Performance - Globus Medical shares have increased by 4% over the past month, outperforming the Zacks S&P 500 composite, which has seen a 1% increase [6]. - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [6].

Company Overview - Globus Medical (GMED) is currently trading approximately 33% below its 1-year high and has a price-to-sales (PS) multiple that is below the average of the past 3 years, indicating potential value [2] - The company specializes in healthcare solutions for musculoskeletal disorders and orthopedic trauma treatment, offering products such as fracture plates, compression screws, intramedullary nails, and external fixation systems globally [3] Financial Performance - The company has demonstrated reasonable revenue growth, with a last twelve months (LTM) growth rate of 17.4% and a 3-year average growth rate of 44.7% [6] - GMED has a free cash flow margin of almost 19.9% and an operating margin of 13.2% for the LTM, showcasing its cash-generative capabilities [6] - The stock is trading at a price-to-earnings (PE) multiple of 23.8, which is considered modest given its encouraging fundamentals [6] Market Comparison - Compared to the S&P 500, GMED shows a lower valuation, enhanced revenue growth, but reduced margins, suggesting a competitive position in the market [6] - The average forward returns for GMED are 12.7% over 6 months and 25.8% over 12 months, with a win rate of over 70% for both periods [7] Historical Volatility - The stock has experienced significant declines in the past, including a 34% drop during the 2018 correction, a 41% decline during the Covid pandemic, and a nearly 48% fall during the inflation shock, indicating susceptibility to market downturns [8] - Despite strong fundamentals, the stock can be adversely impacted during tumultuous periods, highlighting the importance of market conditions in stock performance [8]

Core Insights - Globus Medical, Inc. has launched the ANTHEM™ Elbow Fracture System, a comprehensive plating portfolio aimed at treating a wide range of elbow fractures [1][4] - The system is designed to simplify surgical workflows and offers versatility with anatomically contoured plates for various fracture types [2][4] - The ANTHEM™ Elbow Fracture System includes 14 plate families, screw options of 2.7mm and 3.5mm, and anatomy-specific reduction instruments, enhancing the ability to address complex fracture patterns [2][3] Product Features - The plates feature polyaxial locking technology, allowing for fixed-angle trajectories or screw placement within a 40º cone of angulation, providing flexibility in fixation strategies [3] - The system is designed to minimize disruption to surrounding tissues, as noted by a clinical user who highlighted its practical and reliable design [4] Company Commitment - The launch of the ANTHEM™ Elbow Fracture System is part of Globus Medical's ongoing commitment to advancing trauma care and innovation in musculoskeletal solutions [4][5] - The company aims to equip surgeons with intuitive tools to enhance patient care and streamline surgical procedures [4]

Core Insights - The article discusses the advancements and market potential of spinal surgery robots, highlighting their role in enhancing surgical precision and safety through integrated technologies [1][16]. Market Overview - The global spinal surgery robot market is projected to reach $900 million by 2031, with a compound annual growth rate (CAGR) of 19.6% in the coming years [1]. - The leading manufacturers in the spinal surgery robot market include Medtronic, Globus Medical, Zimmer Biomet, Tianzhihang, and Brainlab, with the top four companies holding approximately 94.0% of the market share in 2024 [5]. Product Segmentation - Guided surgical robots dominate the market, accounting for about 99.0% of the total market share [8]. - Minimally invasive surgery is the largest application segment, representing approximately 80.7% of the demand [10]. Market Drivers - Key drivers for the spinal surgery robot market include technological innovation, increasing clinical demand, and the ongoing digital transformation in the healthcare sector [16]. - The aging global population and the rise in spinal degenerative diseases are contributing to the growing need for precise and minimally invasive surgical solutions [16]. Challenges - The market faces challenges such as high equipment procurement and maintenance costs, which create economic pressure on smaller hospitals [17]. - There is a need for extensive training and integration with existing imaging and navigation systems, which can hinder adoption in underdeveloped regions [17]. Future Trends - The spinal surgery robot industry is expected to accelerate towards greater intelligence, integration, and minimally invasive techniques [18]. - Future robots will likely incorporate advanced technologies such as AI, big data, and machine vision for improved decision-making and surgical planning [18].

Core Insights - Globus Medical, Inc. (GMED) is experiencing strong demand for its Musculoskeletal Solutions products, with a series of product launches expected to drive growth in upcoming quarters [1][4] - The company has faced a 16.6% decline in stock value over the past year, compared to a 15.2% decline in the industry and a 17.4% increase in the S&P 500 [2] - GMED has a market capitalization of $7.94 billion and an earnings yield of 5.4%, significantly higher than the industry's -4.9% yield [2] Tailwinds for GMED Stock - The U.S. Spine business has shown a year-over-year growth of 5.7% in the second quarter, contributing positively to GMED's market share in musculoskeletal solutions [4] - The core trauma product portfolio has experienced a remarkable 35% year-over-year growth, driven by new investments and an expansion strategy [4] - The recent acquisition of Nevro opens up a $2.5 billion market opportunity, enhancing GMED's presence in the musculoskeletal market [5] - New product launches, including DuraPro and Verzera, demonstrate GMED's commitment to research and development [6][9] Headwinds for GMED Stock - GMED is exposed to currency exchange rate fluctuations, with international sales accounting for approximately 19.4% of total net sales in the second quarter of 2025 [10] - The competitive landscape in the musculoskeletal devices market is intense, requiring GMED to continuously innovate and acquire new products to maintain market share [11] Financial Estimates - The Zacks Consensus Estimate for GMED's 2025 earnings per share (EPS) has increased by 1.3% to $3.21, while the revenue estimate is projected at $2.85 billion, indicating a 13% rise from the previous year [12]