Financial Data and Key Metrics Changes - Globus Medical reported Q3 2025 sales of $769 million, a 22.9% increase year-over-year, with non-GAAP diluted earnings per share of $1.18, growing 42.6% compared to the prior year quarter [4][19][35] - Free cash flow reached a record $213.9 million for the quarter, contributing to a strong cash flow generation profile [4][33] - Adjusted EBITDA margin for the base Globus business was 35.3%, an increase of 435 basis points from the prior year quarter [5][21] Business Line Data and Key Metrics Changes - The U.S. spine business grew 9.6% as reported, continuing a trend of 32 weeks of consecutive growth [6][24] - Trauma business achieved a strong growth of 17.2%, marking the highest quarterly revenue since its inception [13][22] - Enabling technologies revenue declined 26.8% to $28 million, primarily due to lower sales of eGPS systems [8][22] Market Data and Key Metrics Changes - International spine business grew 5.6% as reported, with notable growth in EMEA and Asia-Pacific regions [11][12] - U.S. revenue during Q3 2025 was $617.6 million, growing 24.6% as reported, driven by strong performance in spine, trauma, and neuromonitoring [24][25] - Nevro contributed $99.3 million in revenue, growing 4.9% sequentially, indicating positive integration progress [15][23] Company Strategy and Development Direction - The company remains focused on partnering with surgeons to address unmet clinical needs and drive operational excellence [16] - There is a strategic shift towards flexible capital acquisition models, moving away from traditional cash sales to leasing and rental options [11][42] - The integration of Nevro is expected to enhance growth and profitability, with a focus on driving new product development and expanding the sales force [15][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the U.S. spine market and anticipates continued growth in both domestic and international markets [70] - The company expects to achieve revenue growth in the range of 13.5% to 15.1% for 2025, with non-GAAP earnings per share guidance increased to between $3.75 and $3.85 [34][35] - Management highlighted the importance of maintaining operational excellence while pursuing organic growth opportunities [72] Other Important Information - The company has been active in share repurchases, spending $40 million in Q3 2025, with a total of $256 million year-to-date [5][31] - Research and development expenses were $38.1 million, or 4.9% of sales, reflecting a decline due to synergy capture [27] - SG&A expenses included one-time litigation charges of $28.3 million, impacting the overall expense ratio [29] Q&A Session Summary Question: What is driving the strength and acceleration in U.S. Core Spine? - Management noted 32 weeks of consecutive sales growth, with broad strength across all categories, driven by competitive recruiting and new product launches [38][39] Question: What are the expectations for Nevro's margin progression? - Nevro's EBITDA margin was 16.2%, with plans to drive efficiency and growth through better product development and sales force integration [46][48] Question: How is the enabling tech business expected to perform in Q4? - Management expressed confidence in the pipeline, indicating potential for strong revenue generation despite recent slower sales [50][51] Question: What are the plans for Nevro's product portfolio? - Future developments may include expanding into peripheral nerve treatments and addressing conditions like diabetic neuropathy and Parkinson's tremors [55][56] Question: What is the strategy regarding flexible payment models? - The company is seeing an increase in requests for flexible capital acquisition models, which may affect revenue recognition timing [42][57]

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]