Core Viewpoint - Globus Medical, Inc. has won a patent infringement case against Life Spine, Inc., affirming the strength of its intellectual property and innovation in expandable spinal fusion implants [1][2][3] Group 1: Legal Outcome - A Delaware jury found that Life Spine's Prolift family of implants infringed several claims of a valid Globus patent [2] - The jury awarded Globus both lost profits and reasonable royalty damages [2] Group 2: Company Statements - The CEO of Globus expressed satisfaction with the jury's decision, highlighting the company's role as a leading innovator in the musculoskeletal field [3] - The company is committed to protecting its intellectual property and continues to focus on innovation that benefits patients globally [3] Group 3: Ongoing Litigation - Globus has a separate patent infringement litigation pending against Alphatec, Inc. involving expandable implant and retractor technology [3] Group 4: Company Overview - Globus Medical, Inc. is dedicated to solving unmet clinical needs and advancing care in various areas including spine, orthopedic trauma, and joint reconstruction [4]

Core Insights - Globus Medical, Inc. (GMED) reported second-quarter 2025 adjusted earnings per share (EPS) of 86 cents, exceeding the Zacks Consensus Estimate by 13.16% and reflecting a year-over-year increase of 14.1% [1][9] - The company's revenues for the quarter reached $745.3 million, marking an 18.4% increase year over year and surpassing the Zacks Consensus Estimate by 0.49% [3][9] - GMED's gross profit rose 34.3% year over year to $496.6 million, with a gross margin expansion of 792 basis points to 66.6% [6][9] Revenue Performance - Worldwide sales increased to $745.3 million, driven by a $95 million contribution from the recently acquired Nevro [3][9] - U.S. net sales grew 20.3% year over year to $600.8 million, while international revenues rose 11% to $144.6 million [4] Product Performance - Musculoskeletal Solutions generated revenues of $710.2 million, up 19.8% year over year, while Enabling Technologies saw a decline of 4.4% to $35.2 million [5] Margin and Profitability - Adjusted operating profit was $153 million, a 65.4% increase from the previous year, with an adjusted operating margin of 20.5% [7] - SG&A expenses increased by 26.8% to $303.6 million, while research and development expenses rose 5.9% to $40 million [6] Cash Position - At the end of Q2 2025, GMED had combined cash and cash equivalents of $229.4 million, down from $461.3 million at the end of Q1 [8] - Net cash provided by operating activities was $255.2 million, compared to $106.6 million in the prior year [8] Guidance - GMED reaffirmed its full-year 2025 guidance, projecting net sales between $2.80 billion and $2.90 billion, with adjusted EPS expected in the range of $3.00 to $3.30 [10] Market Position - The company experienced strong momentum in the U.S. Spine business, achieving its highest sequential revenue growth since Q2 2022, with notable growth in the EMEA region [11] - GMED is increasing investment and output to enhance product delivery and engagement with surgeon partners [12]

Core Insights - Globus Medical reported revenue of $745.34 million for the quarter ended June 2025, marking an 18.4% year-over-year increase and exceeding the Zacks Consensus Estimate of $741.7 million by 0.49% [1] - The company's EPS for the same period was $0.86, up from $0.75 a year ago, and also surpassed the consensus EPS estimate of $0.76 by 13.16% [1] Revenue Breakdown - International revenues reached $144.56 million, exceeding the average estimate of $140.52 million, reflecting an 11% year-over-year increase [4] - U.S. revenues totaled $600.78 million, surpassing the average estimate of $586.71 million, with a year-over-year growth of 20.3% [4] Product Category Performance - Net sales from Enabling Technologies were $35.16 million, below the five-analyst average estimate of $37.43 million, representing a decline of 4.4% year-over-year [4] - Net sales from Musculoskeletal Solutions amounted to $710.18 million, exceeding the average estimate of $679.67 million, with a year-over-year increase of 19.8% [4] Stock Performance - Shares of Globus Medical have declined by 7.8% over the past month, contrasting with the Zacks S&P 500 composite's increase of 1.2% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Company Performance - Globus Medical reported quarterly earnings of $0.86 per share, exceeding the Zacks Consensus Estimate of $0.76 per share, and up from $0.75 per share a year ago, representing an earnings surprise of +13.16% [1] - The company posted revenues of $745.34 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.49%, and an increase from $629.69 million year-over-year [2] - Over the last four quarters, Globus Medical has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance and Outlook - Globus Medical shares have declined approximately 36.1% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.81 on revenues of $732.08 million, and for the current fiscal year, it is $3.17 on revenues of $2.84 billion [7] Industry Context - The Medical - Instruments industry, to which Globus Medical belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]

Financial Data and Key Metrics Changes - Globus Medical reported Q2 sales of $745 million, with non-GAAP EPS of $0.86, reflecting growth of 18.4% and 14.1% respectively compared to the prior year quarter [14][42] - Free cash flow was $31.3 million, growing 18% despite the impact of the Nevro acquisition and higher CapEx spending [14][36] - Adjusted EBITDA margins for the base Globus business were 32.3%, growing 210 basis points over the prior year quarter [36][52] Business Line Data and Key Metrics Changes - The base business generated $651 million in revenue during Q2, growing 3.3% as reported and 4.9% day adjusted [14][46] - Nevro contributed $95 million in revenue during the quarter, with operational challenges largely subsided [15][47] - The U.S. Spine business grew 5.7% as reported or 7.4% on a day adjusted basis, driven by key procedures and consistent growth [16][17] Market Data and Key Metrics Changes - U.S. revenue during Q2 was $600.8 million, growing 20.3% as reported [49] - International revenue was $144.6 million, growing 11% as reported and 7.5% on a constant currency basis [51] - The EMEA region saw growth led by the UK, Spain, Germany, Ireland, and Italy, while the APAC region focused on Japan and Australia [21][23] Company Strategy and Development Direction - The company aims to become the preeminent musculoskeletal technology company, focusing on improving clinical outcomes and addressing unmet clinical needs [10][11] - There is a strong emphasis on integrating merged and acquired entities, accelerating product development, and maintaining financial discipline [12][13] - The strategy includes expanding the product portfolio and enhancing the sales force through competitive rep conversions [12][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position in the market and the potential for organic growth, particularly in the U.S. Spine business [12][34] - The integration of Nevro is expected to drive top-line growth while rightsizing profitability [59] - The leadership transition is viewed as an inflection point for growth, with confidence in the new CEO and CFO [88][90] Other Important Information - The company remains debt-free while generating strong free cash flow and investing in business growth [36][57] - The acquisition of Nevro was seen as a strategic opportunity, enhancing the product portfolio and addressing a broader continuum of care [30][45] - The company has launched 21 new products since the beginning of 2024, with a focus on innovation and filling gaps in the product portfolio [32][33] Q&A Session Summary Question: Progress with Nevro - Management expressed cautious optimism about the integration of Nevro, highlighting energized sales force and early benefits from cost containment activities [66][70] Question: Enabling Technology and Robots - Enabling Technologies saw a bounce back in Q2, with the pipeline remaining active and no significant loss of deals to competition [71][73] Question: Investor Communication Strategy - The company plans to enhance investor outreach and will hold an Investor Day in the future [78][79] Question: Augmented Reality Headset Launch - The launch plan for the augmented reality headset is underway, with a focus on integrating it into the Excelsius ecosystem [81][83] Question: Leadership Transition - Management reassured investors about the continuity in leadership and the depth of the leadership bench, emphasizing stability and strategic focus [87][88] Question: Nevro's Growth Strategy - The strategy for Nevro includes stability in approach, honing product development, and consistent commercial strategy to ensure long-term growth [91][93]

PART I. FINANCIAL INFORMATION This section presents the company's unaudited condensed consolidated financial statements, detailed notes, management's discussion, market risk disclosures, and internal controls [Financial Statements](index=3&type=section&id=Financial%20Statements) This section presents Globus Medical's unaudited condensed consolidated financial statements, including Balance Sheets, Statements of Operations, Equity, and Cash Flows, for specified interim periods | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--------------------------------- | :----------------------------- | :------------------------------- | | Total Assets | $4,961,089 | $5,251,750 | | Total Liabilities | $665,406 | $1,074,417 | | Total Equity | $4,295,683 | $4,177,333 | | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net sales | $745,342 | $629,691 | $1,343,463 | $1,236,357 | | Operating income | $76,109 | $49,622 | $173,113 | $57,619 | | Net income | $202,846 | $31,760 | $278,308 | $24,643 | | Basic EPS | $1.50 | $0.23 | $2.05 | $0.18 | | Diluted EPS | $1.49 | $0.23 | $2.01 | $0.18 | | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Operating Activities | $255,165 | $106,645 | | Investing Activities | $(167,723) | $(56,962) | | Financing Activities | $(660,333) | $(107,012) | | Cash & Cash Equivalents (End) | $229,446 | $410,424 | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section provides detailed notes to the unaudited condensed consolidated financial statements, covering accounting policies, acquisitions, and specific financial statement line items [NOTE 1. BACKGROUND](index=8&type=section&id=NOTE%201.%20BACKGROUND) This note outlines Globus Medical's business as a medical device company and details the acquisition of Nevro Corp. on April 3, 2025 - Globus Medical, Inc. is a medical device company focused on developing and commercializing healthcare solutions to improve the quality of life for patients with musculoskeletal disorders, including robotic guidance and navigation systems and orthopedic trauma products[18](index=18&type=chunk) - On April 3, 2025, Globus Medical completed the acquisition of Nevro Corp. (Nevro Merger), with Nevro becoming a wholly-owned subsidiary, and Globus was deemed the accounting acquirer, which may impact comparability of prior period financial statements[22](index=22&type=chunk)[23](index=23&type=chunk) [NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=8&type=section&id=NOTE%202.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note describes the company's financial statement preparation, revenue recognition policies, and recent accounting standard updates - The financial statements are prepared in conformity with U.S. GAAP for interim financial statements, with certain information condensed or omitted per SEC rules, and management's estimates are used for areas like revenue recognition, intangible assets, and income taxes[24](index=24&type=chunk)[25](index=25&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) - Revenue is disaggregated into Musculoskeletal Solutions (implants, disposables, neuromonitoring services) and Enabling Technologies (advanced hardware and software systems), with Musculoskeletal Solutions revenue mostly recognized at a point in time, while Enabling Technologies often involve multiple performance obligations recognized as fulfilled[30](index=30&type=chunk)[31](index=31&type=chunk) - The company adopted ASU No. 2023-07 (Segment Reporting) as of January 1, 2024, applied retrospectively, and is evaluating the impact of recently issued ASUs 2025-01 and 2024-03 (Expense Disaggregation Disclosures) and 2023-09 (Income Tax Disclosures)[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) [NOTE 3. ASSET ACQUISITIONS AND BUSINESS COMBINATIONS](index=13&type=section&id=NOTE%203.%20ASSET%20ACQUISITIONS%20AND%20BUSINESS%20COMBINATIONS) This note details the Q1 2025 license agreement and the financial impact of the Nevro Merger, including the bargain purchase gain - In Q1 2025, the Company entered a license agreement for spine medical device technology patents for **$5.0 million**, recording it as an intangible asset with a 10.1-year useful life[64](index=64&type=chunk) - The Nevro Merger, completed on April 3, 2025, involved an aggregate consideration of **$252.5 million**, including cash for Nevro common stock and repayment of Braidwell Term Loans/Warrants, resulting in a bargain purchase gain of **$110.6 million**, primarily due to deferred tax assets[71](index=71&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) - Nevro contributed **$94.6 million** in revenues and a net loss of **$50.0 million** to the Company's financial statements for the period from April 3, 2025, to June 30, 2025[82](index=82&type=chunk) [NOTE 4. NET SALES](index=16&type=section&id=NOTE%204.%20NET%20SALES) This note provides a breakdown of net sales by product category for the three and six months ended June 30, 2025 and 2024 | Product Category (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Musculoskeletal Solutions | $710,182 | $592,913 | $1,286,115 | $1,167,610 | | Enabling Technologies | $35,160 | $36,778 | $57,348 | $68,747 | | Total Net Sales | $745,342 | $629,691 | $1,343,463 | $1,236,357 | [NOTE 5. MARKETABLE SECURITIES](index=16&type=section&id=NOTE%205.%20MARKETABLE%20SECURITIES) This note highlights the significant change in marketable securities holdings from December 31, 2024, to June 30, 2025 - As of June 30, 2025, the Company had **no holdings** of short-term or long-term marketable securities, a significant change from December 31, 2024, when it held **$105.6 million** in short-term and **$66.1 million** in long-term marketable securities[37](index=37&type=chunk)[84](index=84&type=chunk) [NOTE 6. FAIR VALUE MEASUREMENTS](index=17&type=section&id=NOTE%206.%20FAIR%20VALUE%20MEASUREMENTS) This note details fair value measurements for cash equivalents and business acquisition liabilities, including Level 3 inputs | Item (in thousands) | June 30, 2025 (Fair Value) | December 31, 2024 (Fair Value) | | :------------------ | :------------------------- | :----------------------------- | | Cash equivalents | $34,085 | $496,676 | | Business acquisition liabilities | $104,972 | $123,235 | - Business acquisition liabilities are measured at fair value using Level 3 unobservable inputs, including revenue risk premium (**1.8%-5.8%**), revenue volatility (**14.0%-15.8%**), and discount rate (**5.1%-8.5%**)[86](index=86&type=chunk)[87](index=87&type=chunk) | Business Acquisition Liabilities (in thousands) | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :-------------------------------------------- | :------------------------------- | :----------------------------- | | Beginning balance | $118,055 | $123,235 | | Contingent cash payments | $(17,725) | $(23,628) | | Changes in fair value | $5,222 | $5,389 | | Ending balance | $104,972 | $104,972 | [NOTE 7. INVENTORIES](index=18&type=section&id=NOTE%207.%20INVENTORIES) This note provides a breakdown of inventory categories, the Nevro Merger inventory step-up, and adjustments to cost of sales | Inventory Category (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Raw materials | $153,311 | $121,984 | | Work in process | $60,448 | $45,775 | | Finished goods | $558,372 | $491,474 | | Total inventories | $772,131 | $659,233 | - A **$17.9 million** inventory step-up was recorded as part of the Nevro Merger, with **$6.0 million** amortized to cost of sales during the three months ended June 30, 2025, leaving a remaining balance of **$11.9 million**[90](index=90&type=chunk) - Net adjustments to cost of sales for excess and obsolete inventory were **$5.0 million** for Q2 2025 (vs. $6.6 million in Q2 2024) and **$10.9 million** for H1 2025 (vs. $10.5 million in H1 2024)[91](index=91&type=chunk)[92](index=92&type=chunk) [NOTE 8. PROPERTY AND EQUIPMENT](index=19&type=section&id=NOTE%208.%20PROPERTY%20AND%20EQUIPMENT) This note details the composition of property and equipment, net of accumulated depreciation, and related depreciation expense | Category (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Land | $9,765 | $9,731 | | Buildings & improvements| $119,793 | $100,128 | | Equipment | $234,958 | $215,100 | | Instruments, modules, cases | $764,645 | $741,125 | | Other | $60,097 | $41,611 | | Accumulated depreciation| $(601,753) | $(545,786) |\n| Total, net | $587,505 | $561,909 | | Depreciation Expense (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Depreciation | $40,442 | $33,880 | $77,713 | $59,464 | [NOTE 9. GOODWILL AND INTANGIBLE ASSETS](index=19&type=section&id=NOTE%209.%20GOODWILL%20AND%20INTANGIBLE%20ASSETS) This note presents the changes in goodwill and the net balances of various intangible assets, confirming no impairments | Goodwill (in thousands) | Amount | | :---------------------- | :----- | | December 31, 2024 | $1,432,387 | | Foreign exchange | $2,596 | | June 30, 2025 | $1,434,983 | | Intangible Assets (in thousands) | June 30, 2025 (Net) | December 31, 2024 (Net) | | :------------------------------- | :------------------ | :---------------------- | | Customer relationships & other | $261,814 | $266,467 | | Developed technology | $516,597 | $523,588 | | Patents | $8,735 | $3,966 | | Trade Names | $9,226 | $1,096 | | Total Intangible Assets | $796,372 | $795,117 | - No impairments were recorded for goodwill, finite-lived intangible assets, or in-process research and development (IPR&D) during the three and six months ended June 30, 2025[48](index=48&type=chunk) [NOTE 10. ACCRUED EXPENSES](index=20&type=section&id=NOTE%2010.%20ACCRUED%20EXPENSES) This note provides a breakdown of accrued expenses by category as of June 30, 2025, and December 31, 2024 | Accrued Expense Category (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------------------- | :------------ | :---------------- | | Compensation and other employee-related | $155,737 | $151,819 | | Legal and other settlements | $7,689 | $6,746 | | Accrued non-income taxes | $38,860 | $34,088 | | Royalties | $9,065 | $10,612 | | Rebates | $38,199 | $33,105 | | Other | $32,197 | $24,221 | | Total Accrued Expenses | $281,747 | $260,591 | [NOTE 11. DEBT](index=20&type=section&id=NOTE%2011.%20DEBT) This note details the company's revolving credit facility, the payoff of senior convertible notes, and outstanding warrants - The Company has an unsecured revolving credit facility of up to **$400.0 million**, with no outstanding borrowings as of June 30, 2025, and is in compliance with all covenants[98](index=98&type=chunk) - The **$450.0 million** 0.375% Senior Convertible Notes due 2025 were paid off on March 15, 2025, resulting in no outstanding convertible senior notes as of June 30, 2025[100](index=100&type=chunk) - The 2025 Warrants, exercisable into Class A Common stock, have **3,075,210 shares** still outstanding with a strike price of **$170.45**, expiring between July and October 2025[102](index=102&type=chunk) [NOTE 12. EQUITY](index=21&type=section&id=NOTE%2012.%20EQUITY) This note covers the expansion of the share repurchase program, details on common stock classes, and earnings per share - The share repurchase program was expanded by an additional **$500.0 million** on May 15, 2025, with the Company repurchasing **0.4 million shares** for **$25.0 million** in Q2 2025 and **2.8 million shares** for **$215.4 million** in H1 2025[104](index=104&type=chunk) - Class A Common Stock holders have one vote per share, while Class B Common Stock holders have 10 votes per share, with Class B shares convertible to Class A and voting together as one class[107](index=107&type=chunk) | EPS Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic EPS | $1.50 | $0.23 | $2.05 | $0.18 | | Diluted EPS| $1.49 | $0.23 | $2.01 | $0.18 | [NOTE 13. STOCK-BASED AWARDS](index=23&type=section&id=NOTE%2013.%20STOCK-BASED%20AWARDS) This note summarizes stock option activity, intrinsic value of exercised options, and total stock-based compensation costs | Stock Options Activity (thousands) | Shares | Weighted Average Exercise Price | | :--------------------------------- | :----- | :------------------------------ | | Outstanding at Dec 31, 2024 | 10,959 | $55.47 | | Granted | 1,898 | $87.99 | | Exercised | (386) | $41.41 | | Forfeited | (320) | $63.58 | | Outstanding at June 30, 2025 | 12,151 | $60.75 | - Total intrinsic value of stock options exercised was **$1.2 million** for Q2 2025 (vs. $7.1 million in Q2 2024) and **$13.5 million** for H1 2025 (vs. $9.9 million in H1 2024)[117](index=117&type=chunk) | Stock-Based Compensation (in thousands) | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :-------------------------------------- | :------------------------------- | :----------------------------- | | Stock-based compensation expense | $13,617 | $26,823 | | Stock-based compensation in Acquisition-Related Costs | $27,192 | $27,192 | | Net capitalized into inventory | $(226) | $(345) | | Total stock-based compensation cost | $40,583 | $53,670 | [NOTE 14. INCOME TAXES](index=26&type=section&id=NOTE%2014.%20INCOME%20TAXES) This note presents the effective income tax rates and explains the factors contributing to their decrease in 2025 | Effective Income Tax Rate | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Rate | (7.8%) | 33.2% | 4.6% | 36.9% | - The decrease in the effective tax rate for Q2 and H1 2025 was primarily due to a **$34.8 million** state valuation allowance release and the **$110.6 million** non-taxable bargain purchase gain from the Nevro Merger[125](index=125&type=chunk) [NOTE 15. RESTRUCTURING AND OTHER COSTS](index=26&type=section&id=NOTE%2015.%20RESTRUCTURING%20AND%20OTHER%20COSTS) This note details employee termination benefits and restructuring costs incurred under the 2024 Synergy and 2025 Strategic Integration Plans - The Company recorded employee termination benefits under the 2024 Synergy Plan and 2025 Strategic Integration Plan to optimize organizational structure and streamline operations[126](index=126&type=chunk)[127](index=127&type=chunk) | Restructuring Costs (in thousands) | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--------------------------------- | :------------------------------- | :----------------------------- | | 2024 Synergy Plan | $3,419 | $3,573 | | 2025 Strategic Integration Plan | $10,489 | $10,489 | | Total Restructuring Costs | $13,908 | $14,062 | [NOTE 16. LEASES](index=27&type=section&id=NOTE%2016.%20LEASES) This note provides a breakdown of lease liabilities and expenses, along with weighted-average lease terms and discount rates | Lease Liabilities (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------- | :------------ | :---------------- | | Operating lease liability (current) | $13,179 | $10,249 | | Finance lease liability (current) | $132 | $233 | | Operating lease liability (long-term) | $107,925 | $83,588 | | Finance lease liability (long-term) | $173 | $298 | | Total Lease Liabilities | $121,409 | $94,368 | | Lease Expense (in thousands) | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--------------------------- | :------------------------------- | :----------------------------- | | Operating lease expense | $5,017 | $8,516 | | Finance lease expense | $46 | $123 | | Total Lease Expense | $5,063 | $8,639 | - Weighted-average remaining lease term for operating leases is **8.1 years** (vs. 9.1 years in 2024) and for financing leases is **2.8 years** (vs. 2.4 years in 2024), with weighted-average discount rates of **7.5%** for operating leases (vs. 5.3% in 2024) and **5.7%** for financing leases (vs. 5.0% in 2024)[134](index=134&type=chunk) [NOTE 17. COMMITMENTS AND CONTINGENCIES](index=30&type=section&id=NOTE%2017.%20COMMITMENTS%20AND%20CONTINGENCIES) This note discusses ongoing litigation, including patent infringement and breach of contract suits, and warranty obligations - The Company is involved in ongoing litigation, including the Moskowitz Family LLC patent infringement suit (defense verdict in favor of Globus, appealed by Moskowitz) and the Pimenta Litigation (breach of contract, trial scheduled for August 8, 2025 or later), with outcomes and potential losses currently undetermined or unestimable[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) | Warranty Obligations (in thousands) | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :---------------------------------- | :------------------------------- | :----------------------------- | | Acquired in Nevro Merger | $3,083 | $3,083 | | Provision for Warranty | $912 | $912 | | Utilization | $(974) | $(974) | | Ending Balance | $3,021 | $3,021 | [NOTE 18. SEGMENT AND GEOGRAPHIC INFORMATION](index=31&type=section&id=NOTE%2018.%20SEGMENT%20AND%20GEOGRAPHIC%20INFORMATION) This note outlines the company's two operating segments and provides a breakdown of net sales by geographic region - The Company operates two segments: Musculoskeletal Solutions and Enabling Technologies, which are aggregated into one reportable segment based on economic similarity and other factors, with CEO Daniel T. Scavilla (as of June 30, 2025) using revenue, gross profit, and operating income to assess performance[139](index=139&type=chunk)[140](index=140&type=chunk) | Net Sales by Geography (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | United States | $600,784 | $499,459 | $1,084,641 | $982,386 | | International | $144,558 | $130,232 | $258,822 | $253,971 | | Total | $745,342 | $629,691 | $1,343,463 | $1,236,357 | [NOTE 19. SUBSEQUENT EVENTS](index=33&type=section&id=NOTE%2019.%20SUBSEQUENT%20EVENTS) This note reports on the enactment of the One Big Beautiful Bill Act and recent changes in the company's executive leadership - On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, introducing significant changes to U.S. federal income tax law, which the Company is currently evaluating for impact[143](index=143&type=chunk) - Effective July 18, 2025, Daniel T. Scavilla resigned as President and CEO, and Keith Pfeil was appointed as President, CEO, and CODM, with Kyle Kline appointed as CFO[144](index=144&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section offers management's analysis of financial condition and results, covering business overview, the Nevro Merger, product categories, geographic sales, and liquidity - Globus Medical is an engineering-driven medical device company focused on musculoskeletal disorders, offering a comprehensive portfolio of innovative technologies across Musculoskeletal Solutions and Enabling Technologies[146](index=146&type=chunk)[147](index=147&type=chunk) - The Nevro Merger, completed on April 3, 2025, involved converting Nevro common stock into cash at **$5.85 per share**, making Nevro a wholly-owned subsidiary[148](index=148&type=chunk) - U.S. net sales increased by **20.3%** for Q2 2025 and **10.4%** for H1 2025, primarily driven by Nevro sales and other musculoskeletal solutions, while international net sales increased by **11.0%** for Q2 2025 and **1.9%** for H1 2025, also benefiting from Nevro sales[157](index=157&type=chunk)[158](index=158&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk) Key Financial Performance Changes (YoY) | Metric (in thousands) | Q2 2025 vs Q2 2024 Change ($) | Q2 2025 vs Q2 2024 Change (%) | H1 2025 vs H1 2024 Change ($) | H1 2025 vs H1 2024 Change (%) | | :-------------------------------------- | :---------------------------- | :---------------------------- | :---------------------------- | :---------------------------- | | Net Sales | $115,651 | 18.4% | $107,106 | 8.7% | | Cost of Sales (excl. amortization) | $(11,275) | (4.3%) | $(57,365) | (11.4%) | | Research and Development | $2,256 | 6.0% | $(21,950) | (23.1%) | | Selling, General and Administrative | $64,168 | 26.8% | $58,288 | 11.9% | | Amortization of Intangibles | $480 | 1.6% | $(394) | (0.7%) | | Acquisition-Related Costs | $19,422 | 141.4% | $18,061 | 111.8% | | Restructuring Costs | $14,113 | — | $(5,028) | (27.1%) | | Bargain Purchase Gain | $110,561 | 100.0% | $110,561 | 100.0% | | Other Income/(Expense), Net | $3,544 | (173.7%) | $26,763 | (143.9%) | | Income Tax Provision/(Benefit) | $(30,494) | (192.7%) | $(847) | (5.9%) | - Cash provided by operating activities increased significantly in H1 2025 to **$255.2 million** (vs. $106.6 million in H1 2024), driven by higher net income and favorable changes in accounts receivable, partially offset by lower non-cash expense add-backs[183](index=183&type=chunk)[184](index=184&type=chunk) - Cash used in investing activities increased to **$167.7 million** in H1 2025 (vs. $57.0 million in H1 2024), primarily due to **$235 million** in acquisition-related costs, partially offset by increased sales of marketable securities[183](index=183&type=chunk)[185](index=185&type=chunk) - Cash used in financing activities increased to **$660.3 million** in H1 2025 (vs. $107.0 million in H1 2024), mainly due to the repayment of **$450.0 million** in senior convertible notes and increased Class A common stock repurchases[183](index=183&type=chunk)[186](index=186&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section reports no significant changes to market risk disclosures since the 2024 Annual Report on Form 10-K - No significant changes to market risk disclosures were reported compared to the 2024 Annual Report on Form 10-K[193](index=193&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2025, with no material changes in internal control, excluding Nevro due to merger timing - The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025[194](index=194&type=chunk) - No material changes in internal control over financial reporting occurred during the six months ended June 30, 2025[195](index=195&type=chunk) - Nevro was excluded from the assessment of internal controls over financial reporting, representing approximately **8.9%** of total assets and **7.0%** of revenues for the six months ended June 30, 2025[196](index=196&type=chunk) PART II. OTHER INFORMATION This section covers legal proceedings, risk factors, equity security sales, defaults, mine safety, other information, and a list of exhibits [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 17 for details on ongoing legal proceedings, highlighting their uncertain outcomes and potential financial impact - The company is involved in legal proceedings, with outcomes uncertain and potential for material adverse impact on financial results, as detailed in Note 17[201](index=201&type=chunk) [Item 1A. Risk Factors](index=44&type=page&id=Item%201A.%20Risk%20Factors) This section reports no material changes to risk factors since the 2024 Annual Report on Form 10-K and the March 31, 2025 Form 10-Q - No material changes to risk factors were reported compared to the 2024 Annual Report on Form 10-K and the March 31, 2025 Form 10-Q[204](index=204&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the expanded $500.0 million share repurchase program and summarizes Q2 2025 repurchase activity - The share repurchase program was expanded by an additional **$500.0 million** on May 15, 2025, with no time limit[205](index=205&type=chunk)[207](index=207&type=chunk) | Period | Total shares purchased (thousands) | Average price paid per share | Approximate dollar value of shares that may yet be purchased (thousands) | | :------------------------- | :--------------------------------- | :--------------------------- | :----------------------------------------------------------------------- | | April 1, 2025 - April 31, 2025 | — | — | — | | May 1, 2025 - May 30, 2025 | 411 | $60.81 | $475,000 | | June 1, 2025 - June 30, 2025 | — | — | $475,000 | | Total | 411 | | | [Item 3. Defaults Upon Senior Securities](index=44&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item states that there are no defaults upon senior securities to report - Not applicable; no defaults upon senior securities[208](index=208&type=chunk) [Item 4. Mine Safety Disclosures](index=45&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item states that there are no mine safety disclosures to report - Not applicable; no mine safety disclosures[209](index=209&type=chunk) [Item 5. Other Information](index=45&type=section&id=Item%205.%20Other%20Information) This section confirms no Rule 10b5-1 or non-Rule 10b5-1 trading arrangement changes by directors or officers in Q2 2025 - No directors or officers adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2025[210](index=210&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the Nevro Merger Agreement, Equity Incentive Plans, and officer certifications - Key exhibits include the Nevro Merger Agreement, 2021 Equity Incentive Plan, certifications by principal officers, and XBRL documents[211](index=211&type=chunk)[212](index=212&type=chunk) SIGNATURES This section contains the official signatures of the company's principal executive and financial officers, certifying the report's accuracy - The report was signed by Keith Pfeil, President and Chief Executive Officer, and Kyle Kline, Chief Financial Officer, on August 7, 2025[218](index=218&type=chunk)

Core Insights - Globus Medical, Inc. reported strong financial results for Q2 2025, with worldwide net sales reaching $745.3 million, an increase of 18.4% year-over-year [2][7]. - The U.S. Spine business was a significant contributor, growing by 5.7% as reported and 7.4% on a day-adjusted basis, marking the highest sequential revenue growth since Q2 2022 [2][3]. - The company achieved a GAAP net income of $202.8 million, a remarkable increase of 538.7% compared to the same period last year, primarily due to a bargain purchase gain of $110.6 million [3][7]. Financial Performance - Q2 2025 non-GAAP diluted EPS was $0.86, up 14.1% from $0.75 in Q2 2024, while GAAP diluted EPS was $1.49 compared to $0.23 in the prior year [3][39]. - Operating cash flow for Q2 2025 was $77.9 million, with non-GAAP free cash flow at $31.3 million [4][41]. - The company reaffirmed its full-year 2025 revenue guidance in the range of $2.80 to $2.90 billion and non-GAAP fully diluted EPS guidance of $3.00 to $3.30 [5]. Business Strategy - The company is focused on accelerating deal timelines from its pipeline to establish robotic-assisted surgery as the standard of care [2]. - Investment in new product launches and competitive recruiting for the sales force remains a priority to drive organic growth [2][3]. - The integration of the recently acquired Nevro, Inc. is underway, with efforts to identify and execute synergy actions [3]. Market Position - The company reported above-market growth in its base business during Q2 2025, indicating strong operational efficiency and a focus on long-term profitable growth [2][3]. - International net sales increased by 11.0% year-over-year, with a 7.5% increase on a constant currency basis [2][7]. Product Performance - Musculoskeletal Solutions generated $710.2 million in sales for Q2 2025, up from $592.9 million in Q2 2024 [25]. - Enabling Technologies saw a slight decline in sales, with Q2 2025 sales at $35.2 million compared to $36.8 million in Q2 2024 [25]. Liquidity and Capital Resources - As of June 30, 2025, cash and cash equivalents were reported at $229.4 million, down from $784.4 million at the end of 2024 [19][27]. - The total cash, cash equivalents, and marketable securities amounted to $229.4 million, significantly lower than $956.2 million at the end of 2024 [27].

Core Insights - Wall Street analysts forecast that Globus Medical (GMED) will report quarterly earnings of $0.76 per share, reflecting a year-over-year increase of 1.3% and revenues of $741.7 million, which is an increase of 17.8% compared to the previous year [1] Earnings Estimates - Over the last 30 days, there has been a downward revision of 0.7% in the consensus EPS estimate for the quarter, indicating a collective reconsideration by covering analysts [2] - Changes in earnings estimates are crucial for predicting potential investor reactions, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock price performance [3] Revenue Projections - Analysts project 'Net Sales by Product Category- Enabling Technologies' at $37.43 million, suggesting a year-over-year change of +1.8% [5] - The consensus estimate for 'Net Sales by Product Category- Musculoskeletal Solutions' is $679.67 million, indicating a year-over-year change of +14.6% [5] - 'Geographic Revenues- International' is expected to reach $140.52 million, reflecting a change of +7.9% from the year-ago quarter [5] - 'Geographic Revenues- United States' is projected to be $586.71 million, suggesting a year-over-year change of +17.5% [6] Stock Performance - Shares of Globus Medical have experienced a change of -5.2% in the past month, contrasting with the +0.5% move of the Zacks S&P 500 composite [6] - With a Zacks Rank 4 (Sell), GMED is expected to underperform the overall market in the near future [6]

Core Viewpoint - The recent leadership changes at Globus Medical, including the departure of CEO Daniel Scavilla and the appointment of Keith Pfeil as the new CEO, are significant for the company's future direction and performance in the spinal technology market [1][6][8]. Leadership Changes - Daniel Scavilla, with over 30 years of experience in the medical industry, has been pivotal in Globus Medical's growth since joining in 2015 and becoming CEO in 2022 [2][5]. - Scavilla will transition to Dentsply Sirona as CEO starting August 1, 2025, after serving on its board since February 2025 [4]. - Keith Pfeil, who has been with Globus since 2019 and served as CFO, will take over as President and CEO on July 18, 2025 [6][8]. Company Performance - Globus Medical reported preliminary sales of $745.3 million for Q2 2025, marking an 18.4% year-over-year increase, surpassing Wall Street expectations [8]. - The company reaffirmed its 2025 sales forecast, projecting annual sales between $2.8 billion and $2.9 billion, with adjusted earnings per share expected between $3.00 and $3.30 [8]. Market Position and Strategy - Under Scavilla's leadership, Globus Medical acquired NuVasive for $3 billion, positioning itself as the second-largest spinal technology company globally [5]. - The company is transitioning from a traditional implant supplier to a comprehensive musculoskeletal technology solutions provider [5]. - Pfeil's leadership is expected to align with Globus's strategic goals of becoming a leading global musculoskeletal technology company [8]. Analyst Insights - Analysts have expressed concerns about potential structural issues within Globus's core business, despite the positive preliminary sales results [9]. - The spinal business showed a 7.4% year-over-year growth in Q2 2025, indicating a recovery trend post-NuVasive merger [9].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 18, 2025 GLOBUS MEDICAL, INC. (Exact name of registrant as specified in charter) DELAWARE 001-35621 04-3744954 (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.) 2560 GENERAL ARMISTEAD AVENUE, AUDUBON, PA 19403-5214 (Address of princip ...