Bioventus (BVS) - 2025 Q2 - Quarterly Results

Company Overview & Executive Summary Bioventus reported strong Q2 performance with organic revenue growth, improved profitability, and positive cash flow, reaffirming guidance CEO Statement 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] - Recent FDA approvals for TalisMann and StimTrial for chronic peripheral nerve pain treatment are expected to drive new growth[3] Q2 2025 Key Financial Highlights 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] 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 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 | +$0.05 | +31% | chunk_num 6 | - The decrease in reported revenue was primarily due to the divestiture of the Advanced Rehabilitation business[4][5] - Non-GAAP EPS increased by 31%, primarily driven by lower interest expenses and equity compensation costs[6] Revenue by Business Segment In Q2 2025, Surgical Solutions revenue grew 11.4%, Pain Treatments 1.5%, and Restorative Therapies declined 31.6% (11.2% organically) due to divestiture Q2 2025 Revenue by Business Segment | Business Segment | Q2 2025 Revenue ($ 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 | ($3.557) | (2.4%) | - | chunk_num 8 | - Pain Treatments revenue increased by 1.5%, driven by strong demand for Durolane, partially offset by lower average selling prices[8] - Surgical Solutions revenue grew by 11.4%, primarily driven by increased volume in the U.S. ultrasound business[9] - Restorative Therapies revenue decreased by 31.6%, reflecting the divestiture of the Advanced Rehabilitation Business in late 2024, but organic revenue grew 11.2% due to improved commercial efficiency and sales execution for the EXOGEN bone stimulation system[10] Revenue by Geographic Region In Q2 2025, U.S. revenue decreased 4.2% due to divestitures but saw 4.0% organic growth, while international revenue increased 12.4% (24.0% organically) Q2 2025 Revenue by Geographic Region | Region | Q2 2025 Revenue ($ 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] - 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] 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 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] - Received FDA 510(k) clearance for StimTrial, allowing physicians to evaluate patient response to PNS therapy before permanent implantation[16] - 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] - 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] - Recognized by U.S. News & World Report as one of the Best Companies to Work For in North Carolina for 2025[16] Full Year 2025 Financial Guidance 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] 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 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] Consolidated Statements of Operations and Comprehensive Income (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] - The prior year period included $31.9 million in asset impairment charges, with no such charges in the current period[23] Consolidated Condensed Statements of Cash Flows 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] - 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] 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 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] - 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] - 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][30][31][34][35] - 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][38] Reconciliation of Net Income (Loss) to Adjusted EBITDA 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] - Equity compensation expense decreased from $5.8 million in Q2 2024 to $3.6 million in Q2 2025[41] Reconciliation of Other Reported GAAP Measures to Non-GAAP Measures 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] - Adjustments include depreciation and amortization, shareholder litigation costs, financial restructuring costs, loss on business disposition, and other strategic transaction-related expenses[47] 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 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] - 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][19] Earnings Conference Call Details 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] - 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] About Bioventus 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] - The company's innovative product portfolio spans pain treatments, surgical solutions, and restorative therapies[13] - Built on high-quality standards, evidence-based medicine, and strong ethical conduct, the company is a trusted partner for physicians worldwide[13]