Financial Performance - For the full year 2025, the company reported revenue of $2.939 billion, representing a growth of 16.7% year-over-year, and non-GAAP earnings per share of $3.98, growing 30.8% [5][24] - In Q4 2025, revenue totaled $826.4 million, growing 25.7% compared to Q4 2024, with non-GAAP EPS at $1.28, a growth of 52.1% [6][25] - The base business revenue for Q4 was $726.7 million, growing 10.6% year-over-year, with a consolidated Adjusted EBITDA margin of 33.9% [6][25] Business Line Performance - The U.S. spine business grew 10% in Q4 compared to the prior year quarter, continuing a trend of above-market growth [7][28] - Enabling Technologies revenue reached $55.6 million in Q4, growing 18.5% year-over-year, driven by increased sales of EGPS systems [11][27] - The trauma business delivered approximately 27% growth in Q4, supported by the uptake of the legacy trauma line and new product launches [15][16] Market Performance - U.S. revenue in Q4 was $665.3 million, growing 27.5% year-over-year, while international revenue was $161.1 million, growing 19% [27][28] - The international spine business faced challenges earlier in the year but showed incremental improvement, culminating in a record sales quarter in Q4 2025 [29][28] - Growth in international markets was led by enabling technologies and the spine business, particularly in the UK, Australia, Germany, Brazil, Mexico, and Poland [28] Company Strategy and Industry Competition - The company aims to penetrate and launch new programs while fostering utilization and service excellence across its install base, with a focus on innovation in product development [15][18] - The integration of Nevro is expected to enhance the company's portfolio, allowing entry into adjacent markets while driving differentiation in legacy businesses [18][17] - The company remains competitive in the evolving market landscape, emphasizing the unique capabilities of its ExcelsiusGPS platform [12][14] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of U.S. spine growth, citing product launches and an expanded sales force as key drivers [70] - The company anticipates continued margin expansion, with a target of achieving a gross profit margin in the range of 69%-70% for 2026 [32][43] - Management acknowledged the challenges faced in international markets but remains optimistic about returning to double-digit growth rates as the year progresses [81][80] Other Important Information - The company repurchased approximately 4.3 million shares during 2025, with a new share repurchase program of $500 million announced [38][39] - Full-year 2025 SG&A expenses were $1.178 billion, or 40% of sales, with expectations for 2026 to be in the range of 38%-39% [36][43] - The company achieved $200 million in synergies from the NuVasive acquisition, exceeding initial targets [41][42] Q&A Session Summary Question: Can you bridge the growth expectations for the base business from 2025 to 2026? - Management noted that 2025 was a tale of two halves, with significant growth in the latter half driven by product launches and sales force expansion [49][50] Question: How did the company perform in terms of market share and the strength of the spine market? - Management believes the U.S. spine business is growing above market, with evidence from consistent growth rates [56][57] Question: What contributed to the recovery in enabling technology performance? - Management indicated that the fourth quarter saw a closure of delayed pipeline deals, contributing to the improved performance [62][63] Question: How sustainable is the U.S. spine growth, especially with new competition? - Management expressed confidence in the durability of U.S. spine growth, emphasizing ongoing product launches and competitive strategies [70][71] Question: What are the challenges and growth prospects for the international business? - Management highlighted the potential for 12%-15% growth in international markets, focusing on deeper penetration rather than expansion into new countries [81][80]

Financial Performance - For the full year 2025, Globus Medical reported revenue of $2.939 billion, representing a growth of 16.7% year-over-year, and non-GAAP earnings per share of $3.98, up 30.8% [6][24] - In Q4 2025, revenue reached $826.4 million, growing 25.7% compared to Q4 2024, with non-GAAP EPS at $1.28, a 52.1% increase [7][25] - The adjusted gross margin for Q4 was 69.2%, compared to 67.1% in the prior year quarter, driven by favorable sales mix and synergy execution [30][31] Business Line Performance - The U.S. spine business grew 10% in Q4 2025 compared to the prior year quarter, continuing a trend of above-market growth [8][28] - Enabling Technologies revenue was $55.6 million in Q4, growing 18.5% year-over-year, driven by increased sales of EGPS systems [12][27] - The trauma business delivered approximately 27% growth in Q4, supported by the legacy trauma line and new product launches [16][17] Market Performance - U.S. revenue in Q4 2025 was $665.3 million, growing 27.5% year-over-year, while international revenue was $161.1 million, growing 19% [27][28] - The international spine business faced challenges earlier in the year but showed improvement, culminating in record sales in Q4 2025 [29][83] Company Strategy and Industry Competition - The company aims to expand its core spine business while growing other segments, positioning itself as a procedure-enabling medtech platform integrating imaging, navigation, robotics, and implants [19][20] - The competitive landscape is evolving, with new robotic navigation systems entering the market, but the company believes its ExcelsiusGPS system remains a strong option for customers [13][73] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in sustained growth momentum, particularly in the U.S. spine business, and anticipates continued above-market growth in 2026 [9][71] - The company expects to achieve a full-year adjusted gross margin of 69%-70% in 2026, reflecting ongoing improvements in manufacturing initiatives [32][43] Other Important Information - The company repurchased approximately 4.3 million shares for $300.5 million during 2025, with a new share repurchase program of $500 million announced [39] - Full-year 2025 SG&A expenses were $1.178 billion, or 40% of sales, with expectations for 2026 to be in the range of 38%-39% [36] Q&A Session Summary Question: Can you bridge the growth expectations for the base business into 2026? - Management noted that 2025 was a tale of two halves, with significant growth in the latter half driven by product launches and sales force expansion [49][50] Question: How do you view market share and the strength of the spine market? - Management believes the U.S. spine business is growing above market and views the overall spine market as relatively healthy [58] Question: What changed in the enabling technology environment? - Management indicated that enabling technology performance was lumpy throughout the year, with a strong Q4 driven by closing delayed pipeline deals [62][63] Question: How sustainable is the U.S. spine growth? - Management sees the growth as durable, supported by ongoing product launches and competitive rep conversions [71][72] Question: What are the headwinds in the international market? - Management identified challenges in the APAC region, particularly Japan, but believes there are ample opportunities for growth in existing markets [82][83]

Financial Performance - For the full year 2025, Globus Medical reported revenue of $2.939 billion, representing a growth of 16.7% year-over-year, and non-GAAP earnings per share (EPS) of $3.98, up 30.8% [4][22] - In Q4 2025, revenue reached $826.4 million, a 25.7% increase compared to Q4 2024, with non-GAAP EPS of $1.28, growing 52.1% year-over-year [5][23] - The base business revenue for Q4 was $726.7 million, reflecting a 10.6% growth compared to the same quarter last year [5][25] - Adjusted EBITDA margin for Q4 was 35.7%, while the full year margin was 33.4% [6][24] Business Line Performance - The U.S. spine business grew by 10% in Q4 compared to the prior year quarter, continuing a trend of above-market growth [6][27] - Enabling Technologies revenue was $55.6 million in Q4, growing 18.5% year-over-year, driven by increased sales of EGPS systems [11][26] - The trauma business experienced approximately 27% growth in Q4, supported by the legacy trauma line and precise limb lengthening products [15][16] Market Performance - U.S. revenue in Q4 was $665.3 million, growing 27.5% year-over-year, while international revenue was $161.1 million, reflecting a 19% increase [26][27] - The international spine business faced supply chain challenges earlier in the year but showed improvement, culminating in record sales in Q4 2025 [28][80] Company Strategy and Industry Competition - The company aims to penetrate and launch new programs while fostering utilization and service excellence across its install base [14] - Globus Medical is focused on expanding its core spine business while also growing adjacent markets through innovation and product development [18][19] - The company views competition in the enabling technology space as evolving but believes its ExcelsiusGPS system remains a strong offering [12][69] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of U.S. spine growth, citing product launches and a robust sales force as key drivers [68] - The company anticipates continued margin expansion and has set a long-term goal for mid-seventies adjusted gross profit percentage [30][43] - Management acknowledged the challenges faced in international markets but remains optimistic about returning to double-digit growth rates [80] Other Important Information - The company repurchased approximately 4.3 million shares during 2025, with a remaining authorization of $390 million under its share repurchase program [37][38] - Research and development expenses for Q4 were $36.2 million, or 4.4% of sales, reflecting a decrease from the prior year [30][32] Q&A Session Summary Question: Can you bridge the growth expectations for the base business into 2026? - Management noted that 2025 was a tale of two halves, with significant growth in the latter half driven by product launches and sales force expansion [47][48] Question: How do you view market share and the strength of the spine market? - Management believes the U.S. spine business is growing above market and views the overall spine market as relatively healthy [54] Question: What changed in the enabling technology environment? - Management indicated that enabling technology performance was lumpy throughout the year, with a strong Q4 driven by closing delayed pipeline deals [59][60] Question: How sustainable is the U.S. spine growth? - Management sees the growth as durable, supported by ongoing product launches and competitive rep conversions [68][69] Question: What are the headwinds in the international market? - Management highlighted that the international business can grow 12%-15% long-term, with a focus on deepening existing markets rather than expanding into new ones [80]