Key Takeaways Globus Medical's Q2 adjusted EPS rose 14.1% to $0.86, topping estimates by 13.16%.GMED's revenues grew 18.4% to $745.3M, with Nevro adding $95M in the quarter.Globus Medical's gross margin expanded 792 bps to 66.6% as the cost of sales fell 4.3%.Globus Medical, Inc. (GMED) reported second-quarter 2025 adjusted earnings per share (EPS) of 86 cents, which surpassed the Zacks Consensus Estimate by 13.16%. The figure increased 14.1% year over year.Adjusted EPS excludes certain non-recurring expens ...

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]

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 Viewpoint - Globus Medical reported a decline in revenue and earnings for the quarter ended March 2025, missing Wall Street expectations, indicating potential challenges in financial performance [1][2]. Financial Performance - Revenue for the quarter was $598.12 million, down 1.4% year-over-year, and below the Zacks Consensus Estimate of $628.32 million by 4.81% [1]. - Earnings per share (EPS) were $0.68, a decrease from $0.72 in the same quarter last year, and fell short of the consensus estimate of $0.74 by 8.11% [1]. Geographic Revenue Breakdown - International revenue was reported at $114.26 million, which is 7.7% lower than the three-analyst average estimate of $127.52 million [4]. - U.S. revenue stood at $483.86 million, slightly up by 0.2% year-over-year, but below the average estimate of $510.72 million [4]. Product Category Performance - Net sales from Enabling Technologies were $22.19 million, significantly lower than the estimated $38.79 million, reflecting a year-over-year decline of 30.6% [4]. - Musculoskeletal Solutions generated $575.93 million in sales, which was marginally above the year-ago figure by 0.2%, but still below the estimated $598.85 million [4]. Stock Performance - Shares of Globus Medical have returned -3.7% over the past month, contrasting with the Zacks S&P 500 composite's increase of 11.3% [3]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3].

Core Insights - Globus Medical reported a net sales of $598.1 million for Q1 2025, reflecting a decrease of 1.4% compared to Q1 2024, with U.S. sales slightly increasing by 0.2% while international sales decreased by 7.7% [2][9][42] - The company achieved a GAAP net income of $75.5 million, a significant improvement from a loss of $7.1 million in the same period last year, with diluted EPS rising to $0.54 from a loss of $0.05 [3][9][18] - The company reaffirmed its full-year 2025 revenue guidance in the range of $2.80 to $2.90 billion, while adjusting its non-GAAP diluted EPS guidance down to $3.00 to $3.30 from a previous range of $3.10 to $3.40 [5] Financial Performance - The decrease in worldwide net sales was primarily attributed to fewer enabling technology unit sales, with international net sales decreasing by 4.6% on a constant currency basis [2][9][42] - Non-GAAP diluted EPS for Q1 2025 was reported at $0.68, an increase of 8.5% from $0.63 in Q1 2024 [3][9][38] - The company generated a record free cash flow of $141.2 million for the quarter, with net cash provided by operating activities amounting to $177.3 million [4][40] Debt and Cash Management - Globus Medical returned to a debt-free status by paying off the remaining $450 million of debt from the NuVasive merger [2][4] - As of March 31, 2025, the company had cash and cash equivalents of $461.3 million, down from $784.4 million at the end of 2024 [20][28] Product Performance - The musculoskeletal solutions segment generated $575.9 million in sales, while enabling technologies sales were $22.2 million, down from $32.0 million in the previous year [25][9] - The company continues to focus on innovation and investment in advanced products to enhance patient care [2][5]