Globus Medical(US:GMED)2025-11-06 21:25Financial Performance - Q3 2025 revenue increased by 23% to $769.0 million, with U.S. Spine business growing by 10%[3] - GAAP net income for Q3 2025 was $119.0 million, a 129.5% increase year-over-year, driven by higher sales of $143.3 million[4] - Non-GAAP diluted EPS for Q3 2025 was $1.18, up 42.6% compared to $0.83 in Q3 2024[4] - Net income for Q3 2025 reached $118,966,000, a significant increase from $51,836,000 in Q3 2024, representing a growth of 129%[24] - The company reported a net income of $397.274 million for the nine months ended September 30, 2025, compared to $76.479 million in 2024, marking a significant increase of 419.5%[18] - The company’s diluted earnings per share for the nine months ended September 30, 2025, was $2.90, compared to $0.56 in 2024[18] Cash Flow and Guidance - Record non-GAAP free cash flow of $213.9 million in Q3 2025, a 24% increase quarter-over-quarter[3] - The company raised its full-year 2025 revenue guidance to $2.86 to $2.90 billion from $2.80 to $2.90 billion[6] - Non-GAAP fully diluted EPS guidance for 2025 increased to $3.75 to $3.85 from $3.00 to $3.30[6] - Free cash flow for the nine months ended September 30, 2025, was $386,378,000, an increase from $211,981,000 in the same period of 2024[38] Sales and Market Performance - International net sales grew by 16.5% year-over-year, with a 13.5% increase on a constant currency basis[3] - The Nevro acquisition contributed $99.3 million to sales, exceeding expectations and supporting future growth[4] - Base business net sales, excluding Nevro, were $669.8 million, reflecting a 7.0% increase[7] - Net sales for Q3 2025 reached $769.048 million, a 22.9% increase from $625.705 million in Q3 2024[20] - The company’s musculoskeletal solutions segment generated $741.009 million in sales for Q3 2025, up from $587.402 million in Q3 2024[20] - Net sales of Nevro products for Q3 2025 were $99,254,000, contributing to the overall sales growth[41] Profitability Metrics - Adjusted EBITDA for Q3 2025 was $252,601,000, compared to $193,691,000 in Q3 2024, reflecting a year-over-year increase of 30.4%[24] - Gross profit margin for Q3 2025 improved to 64.2%, compared to 53.0% in Q3 2024[33] - The adjusted gross profit for Q3 2025 was $523,472,000, with an adjusted gross profit margin of 68.1%[33] - The company reported a net income margin of 15.5% for Q3 2025, compared to 8.3% in Q3 2024[24] Expenses and Liabilities - Research and development expenses increased to $111.083 million for the nine months ended September 30, 2025, from $130.346 million in the same period of 2024[18] - Cash and cash equivalents decreased to $371.769 million as of September 30, 2025, down from $784.438 million at the end of 2024[21] - Total current assets were $1.924 billion as of September 30, 2025, compared to $2.177 billion at the end of 2024[17] - The company’s total liabilities decreased to $696.815 million as of September 30, 2025, from $1.074 billion at the end of 2024[17] - The company incurred merger and acquisition-related costs of $4,678,000 in Q3 2025, down from $61,160,000 in Q3 2024[28] Operating Performance - Operating income for the nine months ended September 30, 2025, was $310.476 million, compared to $105.717 million for the same period in 2024, representing a 194.5% increase[18] - Comprehensive income for the nine months ended September 30, 2025, was $415.062 million, compared to $79.708 million in 2024[18]