Globus Medical Reports Second Quarter 2025 Results
Globus Medical (NYSE:GMED) reported strong Q2 2025 financial results with worldwide net sales of $745.3 million, up 18.4% year-over-year. The company achieved GAAP net income of $202.8 million, a remarkable 538.7% increase, largely driven by a $110.6 million bargain purchase gain and a $34.8 million tax benefit.
Key highlights include U.S. net sales growth of 20.3% and international sales growth of 11.0%. The U.S. Spine business showed particular strength, growing 5.7% (7.4% day-adjusted). GAAP diluted EPS reached $1.49, while non-GAAP diluted EPS was $0.86, up 14.1% from Q2 2024.
The company reaffirmed its 2025 guidance, projecting revenue between $2.80-$2.90 billion and non-GAAP EPS of $3.00-$3.30.
Globus Medical (NYSE:GMED) ha riportato risultati finanziari solidi nel secondo trimestre del 2025 con vendite nette mondiali pari a 745,3 milioni di dollari, in crescita del 18,4% rispetto all'anno precedente. L'azienda ha registrato un utile netto GAAP di 202,8 milioni di dollari, un aumento straordinario del 538,7%, principalmente grazie a un guadagno da acquisto vantaggioso di 110,6 milioni di dollari e a un beneficio fiscale di 34,8 milioni di dollari.
I punti salienti includono una crescita delle vendite nette negli Stati Uniti del 20,3% e una crescita delle vendite internazionali dell'11,0%. Il settore Spine negli Stati Uniti ha mostrato particolare forza, crescendo del 5,7% (7,4% aggiustato per i giorni). L'utile diluito per azione GAAP ha raggiunto 1,49 dollari, mentre l'utile diluito per azione non-GAAP è stato di 0,86 dollari, con un aumento del 14,1% rispetto al secondo trimestre 2024.
L'azienda ha confermato le previsioni per il 2025, prevedendo ricavi tra 2,80 e 2,90 miliardi di dollari e un utile per azione non-GAAP compreso tra 3,00 e 3,30 dollari.
Globus Medical (NYSE:GMED) reportó sólidos resultados financieros en el segundo trimestre de 2025 con ventas netas mundiales de 745,3 millones de dólares, un aumento del 18,4% interanual. La compañía logró un ingreso neto GAAP de 202,8 millones de dólares, un incremento notable del 538,7%, impulsado principalmente por una ganancia por compra ventajosa de 110,6 millones de dólares y un beneficio fiscal de 34,8 millones de dólares.
Los aspectos destacados incluyen un crecimiento de las ventas netas en EE.UU. del 20,3% y un crecimiento de ventas internacionales del 11,0%. El negocio de columna vertebral en EE.UU. mostró particular fortaleza, creciendo un 5,7% (7,4% ajustado por días). Las ganancias diluidas por acción GAAP alcanzaron 1,49 dólares, mientras que las ganancias diluidas por acción no GAAP fueron de 0,86 dólares, un aumento del 14,1% respecto al segundo trimestre de 2024.
La compañía reafirmó su guía para 2025, proyectando ingresos entre 2,80 y 2,90 mil millones de dólares y ganancias no GAAP por acción entre 3,00 y 3,30 dólares.
Globus Medical (NYSE:GMED)은 2025년 2분기 강력한 재무 실적을 보고했으며, 전 세계 순매출 7억 4,530만 달러로 전년 동기 대비 18.4% 증가했습니다. 회사는 GAAP 순이익 2억 280만 달러를 기록했으며, 이는 538.7%의 놀라운 증가로, 주로 1억 1,060만 달러의 우량 매입 이익과 3,480만 달러의 세금 혜택에 기인합니다.
주요 내용으로는 미국 내 순매출 20.3% 성장과 국제 매출 11.0% 성장입니다. 미국 척추 사업부는 특히 강세를 보이며 5.7%(일수 조정 시 7.4%) 성장했습니다. GAAP 희석 주당순이익은 1.49달러에 달했으며, 비-GAAP 희석 주당순이익은 0.86달러로 2024년 2분기 대비 14.1% 증가했습니다.
회사는 2025년 가이던스를 재확인하며 매출액을 28억~29억 달러, 비-GAAP 주당순이익을 3.00~3.30달러로 전망했습니다.
Globus Medical (NYSE:GMED) a annoncé de solides résultats financiers pour le deuxième trimestre 2025 avec des ventes nettes mondiales de 745,3 millions de dollars, en hausse de 18,4 % par rapport à l'année précédente. La société a réalisé un revenu net GAAP de 202,8 millions de dollars, soit une augmentation remarquable de 538,7 %, principalement grâce à un gain d'achat avantageux de 110,6 millions de dollars et un avantage fiscal de 34,8 millions de dollars.
Les points clés incluent une croissance des ventes nettes aux États-Unis de 20,3 % et une croissance des ventes internationales de 11,0 %. Le secteur de la colonne vertébrale aux États-Unis a montré une force particulière, avec une croissance de 5,7 % (7,4 % ajusté en fonction des jours). Le BPA dilué GAAP a atteint 1,49 $, tandis que le BPA dilué non-GAAP était de 0,86 $, en hausse de 14,1 % par rapport au deuxième trimestre 2024.
La société a confirmé ses prévisions pour 2025, prévoyant un chiffre d'affaires compris entre 2,80 et 2,90 milliards de dollars et un BPA non-GAAP entre 3,00 et 3,30 dollars.
Globus Medical (NYSE:GMED) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit weltweiten Nettoumsätzen von 745,3 Millionen US-Dollar, was einem Anstieg von 18,4 % im Jahresvergleich entspricht. Das Unternehmen erzielte einen GAAP-Nettogewinn von 202,8 Millionen US-Dollar, ein bemerkenswerter Anstieg von 538,7 %, der hauptsächlich auf einen günstigen Kaufgewinn von 110,6 Millionen US-Dollar und einen Steuervorteil von 34,8 Millionen US-Dollar zurückzuführen ist.
Zu den wichtigsten Highlights zählen ein Nettoumsatzwachstum in den USA von 20,3 % und ein internationales Umsatzwachstum von 11,0 %. Das US-amerikanische Wirbelsäulengeschäft zeigte besondere Stärke mit einem Wachstum von 5,7 % (7,4 % tagebereinigt). Das GAAP verwässerte Ergebnis je Aktie erreichte 1,49 US-Dollar, während das non-GAAP verwässerte Ergebnis je Aktie 0,86 US-Dollar betrug, ein Anstieg von 14,1 % gegenüber dem zweiten Quartal 2024.
Das Unternehmen bestätigte seine Prognose für 2025 und erwartet einen Umsatz zwischen 2,80 und 2,90 Milliarden US-Dollar sowie ein non-GAAP-Ergebnis je Aktie von 3,00 bis 3,30 US-Dollar.
- Record quarterly non-GAAP earnings per share achieved
- Worldwide net sales increased 18.4% to $745.3 million
- GAAP net income surged 538.7% to $202.8 million
- U.S. Spine business showed strong growth of 7.4% on a day-adjusted basis
- Successful closure of Nevro acquisition with synergy actions underway
- Enabling Technologies showed only modest improvement in Q2
- Integration efforts from recent M&A activity still ongoing
- Free cash flow decreased to $31.3 million in Q2 2025
Insights
Globus Medical reported strong Q2 with 18.4% revenue growth, impressive US Spine performance, and record non-GAAP EPS despite mixed Enabling Technologies results.
Globus Medical delivered $745.3 million in Q2 revenue, growing
GAAP net income surged to
Cash flow metrics show
The company completed its Nevro acquisition and has begun working on synergy identification and execution. While Enabling Technologies (likely referring to their robotic surgery platform) showed only "modest bounce back," management expressed commitment to accelerating deal timelines in this segment.
The results reflect Globus Medical's continued focus on their long-term strategy of new product launches, organic growth, competitive rep recruiting, and robotic account pull-through. Management's commentary suggests confidence in continued momentum through the second half of 2025, with emphasis on operational efficiency and profitable growth.
AUDUBON, Pa., Aug. 07, 2025 (GLOBE NEWSWIRE) -- Globus Medical, Inc. (NYSE: GMED), a leading musculoskeletal solutions company, today announced its financial results for the quarter ended June 30, 2025.
- Worldwide net sales were
$745.3 million , an increase of18.4% , or an increase of17.6% on a constant currency basis - GAAP net income for the quarter was
$202.8 million - GAAP diluted earnings per share (“EPS”) was
$1.49 and non-GAAP diluted EPS was$0.86
“Q2 results were led by our US Spine business, growing
“As we enter August, we continue to be encouraged by the momentum of our Globus base business, which posted above market growth in the second quarter. Our second quarter results are a testament of achieving operational efficiency, while focusing on long-term, profitable growth,” commented Kyle Kline, CFO. “We achieved record quarterly non-GAAP earnings per share this quarter, driven by the Globus base business. In addition, we closed the Nevro acquisition and began diligently working to identify and execute synergy actions. We remain well positioned to build on the strength of the second quarter and to deliver on our commitments in the second half of 2025.”
Worldwide net sales for the second quarter of 2025 were
GAAP net income for the second quarter of 2025 was
Net cash provided by operating activities was
Retrospectively, as of January 1, 2024, we no longer include acquisition of in-process research and development costs as an adjustment to non-GAAP Adjusted EBITDA or non-GAAP net income.
2025 Annual Guidance
The Company reaffirms its guidance for full-year 2025 revenue to be in the range of
Conference Call Information
Globus Medical will hold a teleconference to discuss its second quarter 2025 results with the investment community at 4:30 p.m. Eastern Time today. Participants may access the conference call live via webcast on the Investors page of Globus Medical’s website at http://www.investors.globusmedical.com/news-events/events-webcasts.
To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. The audio archive will be available after the call on the Investor page of the Globus Medical website.
About Globus Medical, Inc.
Globus Medical, Inc. is a leading global musculoskeletal company dedicated to solving unmet clinical needs and changing lives. We innovate with inspired urgency, provide world-class education and clinical support, and advance care throughout spine, orthopedic trauma, joint reconstruction, biomaterials and enabling technologies. Additional information can be accessed at www.globusmedical.com.
Non-GAAP Financial Measures
To supplement our financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”), management uses certain non-GAAP financial measures. For example, non-GAAP Adjusted EBITDA, which represents net income before interest income, net and other non-operating expenses, provision for income taxes, depreciation and amortization, stock-based compensation expense, provision for litigation, merger and acquisition related costs, restructuring related costs, certain foreign currency acquisition-related impacts, bargain purchase gains, and gains and losses from strategic investments, is useful as an additional measure of operating performance, and particularly as a measure of comparative operating performance from period to period, as it is reflective of changes in pricing decisions, cost controls and other factors that affect operating performance, and it removes the effect of our capital structure, asset base, income taxes and interest income and expense. We no longer include acquisition of in-process research and development as an adjustment to non-GAAP Adjusted EBITDA. Our management also uses non-GAAP Adjusted EBITDA for planning purposes, including the preparation of our annual operating budget and financial projections. Provision for litigation represents costs incurred for litigation settlements or unfavorable verdicts when the loss is known or considered probable and the amount can be reasonably estimated, or in the case of a favorable settlement, when income is realized. Merger and acquisition related costs represents the change in fair value of business-acquisition-related contingent consideration; costs related to integrating recently acquired businesses, including but not limited to costs to exit or convert contractual obligations, severance, retention bonus, duplicative costs and information system conversion; and specific costs related to the consummation of the acquisition process such as banker fees, legal fees, and other acquisition related professional fees. Restructuring related costs include severance, retention bonus, accelerated stock-based compensation expense, legal and tax fees for legal entity reorganization and costs associated with consolidating facilities. We also adjusted for certain foreign currency impacts related to the acquisition costs and gains/losses on strategic investments within other assets as we believe these impacts are not a measure of our operating performance.
In addition, for the period ended June 30, 2025 and for other comparative periods, we are presenting non-GAAP net income and non-GAAP Diluted Earnings Per Share, which represent net income and diluted earnings per share excluding the provision for litigation, amortization of intangibles, merger and acquisition related costs, restructuring related costs, certain foreign currency impacts, gains and losses from strategic investments, bargain purchase gains, certain valuation allowance releases on deferred tax assets, and the tax effects of all of the foregoing adjustments. We no longer include acquisition of in-process research and development as an adjustment to non-GAAP net income. We also present Non-GAAP gross profit, which excludes the impacts of any inventory acquisition-related costs within cost of goods sold. The tax effect adjustment represents the tax effect of the pre-tax non-GAAP adjustments excluded from non-GAAP net income. The tax impact of the non-GAAP adjustments is calculated based on the consolidated effective tax rate on a GAAP basis, applied to the non-GAAP adjustments, unless the underlying item has a materially different tax treatment, in which case the estimated tax rate applicable to the adjustment is used. We believe these non-GAAP measures are also useful indicators of our operating performance, and particularly as additional measures of comparative operating performance from period to period as they remove the effects of the foregoing items, which we believe are not reflective of underlying business trends. Additionally, for the period ended June 30, 2025 and for other comparative periods, we also define the non-GAAP measure of free cash flow as the net cash provided by operating activities, adjusted for the impact of restricted cash, less the cash impact of purchases of property and equipment. We believe that this financial measure provides meaningful information for evaluating our overall financial performance for comparative periods as it facilitates an assessment of funds available to satisfy current and future obligations and fund acquisitions. Furthermore, the non-GAAP measure of constant currency net sales growth is calculated by translating current year net sales at the same average exchange rates in effect during the applicable prior year period. We believe constant currency net sales growth provides insight to the comparative increase or decrease in period net sales, in dollar and percentage terms, excluding the effects of fluctuations in foreign currency exchange rates. We are also presenting base business sales and base Adjusted EBIDTA, excluding the contribution from the recently acquired Nevro, Inc and subsidiaries. We believe these provide insight to how the Company is performing without the impact of our most recent acquisition. Finally, we are also presenting a measure of sales on a day-adjusted basis. This represents a calculation of sales using a comparable number of selling days as in the previous period.
Non-GAAP adjusted EBITDA, non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP gross profit, free cash flow, constant currency net sales growth, base business sales, excluding the contribution from the recently acquired Nevro, Inc, and day-adjusted basis sales are not calculated in conformity with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for financial measures prepared in accordance with U.S. GAAP. These measures do not include certain expenses that may be necessary to evaluate our liquidity or operating results. Our definitions of these non-GAAP measures may differ from that of other companies and therefore may not be comparable.
Safe Harbor Statements
All statements included in this press release other than statements of historical fact are forward-looking statements and may be identified by their use of words such as “believe,” “may,” “might,” “could,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plan” and other similar terms. These forward-looking statements are based on our current assumptions, expectations and estimates of future events and trends. Forward-looking statements are only predictions and are subject to many risks, uncertainties and other factors that may affect our businesses and operations and could cause actual results to differ materially from those predicted. These risks and uncertainties include, but are not limited to, the risks and costs associated with the health epidemics, pandemics and similar outbreaks, factors affecting our quarterly results, our ability to manage our growth, our ability to sustain our profitability, demand for our products, our ability to compete successfully (including without limitation our ability to convince surgeons to use our products and our ability to attract and retain sales and other personnel), our ability to rapidly develop and introduce new products, our ability to develop and execute on successful business strategies, our ability to comply with laws and regulations that are or may become applicable to our businesses, our ability to safeguard our intellectual property, our success in defending legal proceedings brought against us, trends in the medical device industry, general economic conditions, and other risks. For a discussion of these and other risks, uncertainties and other factors that could affect our results, you should refer to the disclosure contained in our most recent annual report on Form 10-K filed with the U.S. Securities and Exchange Commission, including the sections labeled “Risk Factors” and “Cautionary Note Concerning Forward-Looking Statements,” and in our Forms 10-Q, Forms 8-K and other filings with the U.S. Securities and Exchange Commission. These documents are available at www.sec.gov. Moreover, we operate in an evolving environment. New risk factors and uncertainties emerge from time to time and it is not possible for us to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements contained in this press release speak only as of the date of this press release. We undertake no obligation to update any forward-looking statements as a result of new information, events or circumstances or other factors arising or coming to our attention after the date hereof.
| GLOBUS MEDICAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (In thousands, except per share amounts) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net sales | $ | 745,342 | $ | 629,691 | $ | 1,343,463 | $ | 1,236,357 | ||||||||
| Cost of Sales and Operating expenses: | ||||||||||||||||
| Cost of sales (exclusive of amortization of intangibles) | 248,765 | 260,040 | 444,162 | 501,527 | ||||||||||||
| Research and development | 39,954 | 37,698 | 73,016 | 94,966 | ||||||||||||
| Selling, general and administrative | 303,622 | 239,454 | 546,421 | 488,133 | ||||||||||||
| Amortization of intangibles | 30,189 | 29,709 | 58,991 | 59,385 | ||||||||||||
| Acquisition-related costs | 33,156 | 13,734 | 34,213 | 16,152 | ||||||||||||
| Restructuring costs | 13,547 | (566 | ) | 13,547 | 18,575 | |||||||||||
| Operating income/(loss) | 76,109 | 49,622 | 173,113 | 57,619 | ||||||||||||
| Other income/(expense), net | ||||||||||||||||
| Interest income/(expense), net | 693 | (2,335 | ) | 2,374 | (4,229 | ) | ||||||||||
| Foreign currency transaction gain/(loss) | 38 | (703 | ) | 4,308 | (16,074 | ) | ||||||||||
| Bargain purchase gain | 110,561 | — | 110,561 | — | ||||||||||||
| Other income/(expense) | 772 | 997 | 1,485 | 1,707 | ||||||||||||
| Total other income/(expense), net | 112,064 | (2,041 | ) | 118,728 | (18,596 | ) | ||||||||||
| Income/(loss) before income taxes | 188,173 | 47,581 | 291,841 | 39,023 | ||||||||||||
| Income tax provision/(benefit) | (14,673 | ) | 15,821 | 13,533 | 14,380 | |||||||||||
| Net income/(loss) | $ | 202,846 | $ | 31,760 | $ | 278,308 | $ | 24,643 | ||||||||
| Other comprehensive income/(loss), net of tax: | ||||||||||||||||
| Unrealized gain/(loss) on marketable securities | 2 | 492 | 317 | 871 | ||||||||||||
| Foreign currency translation gain/(loss) | 12,404 | (1,298 | ) | 16,783 | (2,530 | ) | ||||||||||
| Total other comprehensive income/(loss), net of tax | 12,406 | (806 | ) | 17,100 | (1,659 | ) | ||||||||||
| Comprehensive income/(loss) | $ | 215,252 | $ | 30,954 | $ | 295,408 | $ | 22,984 | ||||||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | 1.50 | $ | 0.23 | $ | 2.05 | $ | 0.18 | ||||||||
| Diluted | $ | 1.49 | $ | 0.23 | $ | 2.01 | $ | 0.18 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 135,205 | 135,195 | 135,981 | 135,276 | ||||||||||||
| Diluted | 136,499 | 136,979 | 138,137 | 136,836 | ||||||||||||
| GLOBUS MEDICAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | |||||||
| June 30, | December 31, | ||||||
| (In thousands, except share and per share values) | 2025 | 2024 | |||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 229,446 | $ | 784,438 | |||
| Short-term marketable securities | — | 105,619 | |||||
| Accounts receivable, net of allowances of | 611,565 | 557,697 | |||||
| Inventories | 772,131 | 659,233 | |||||
| Prepaid expenses and other current assets | 68,202 | 49,640 | |||||
| Income taxes receivable | 48,558 | 20,633 | |||||
| Total current assets | 1,729,902 | 2,177,260 | |||||
| Property and equipment, net of accumulated depreciation of | 587,505 | 561,909 | |||||
| Operating lease right of use assets | 61,587 | 49,647 | |||||
| Long-term marketable securities | — | 66,134 | |||||
| Intangible assets, net | 796,372 | 795,117 | |||||
| Goodwill | 1,434,983 | 1,432,387 | |||||
| Other assets | 74,843 | 75,096 | |||||
| Deferred income taxes | 275,897 | 94,200 | |||||
| Total assets | $ | 4,961,089 | $ | 5,251,750 | |||
| LIABILITIES AND EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 87,099 | $ | 75,118 | |||
| Accrued expenses | 281,747 | 260,591 | |||||
| Operating lease liabilities | 13,179 | 10,249 | |||||
| Income taxes payable | — | 10,725 | |||||
| Senior convertible notes | — | 443,351 | |||||
| Business acquisition liabilities | 18,619 | 33,739 | |||||
| Deferred revenue | 24,020 | 22,140 | |||||
| Total current liabilities | 424,664 | 855,913 | |||||
| Business acquisition liabilities, net of current portion | 86,353 | 89,496 | |||||
| Operating lease liabilities | 107,925 | 83,588 | |||||
| Deferred income taxes and other tax liabilities | 24,402 | 23,889 | |||||
| Other liabilities | 22,062 | 21,531 | |||||
| Total liabilities | 665,406 | 1,074,417 | |||||
| Equity: | |||||||
| Class A common stock; | 113 | 115 | |||||
| Class B common stock; | 22 | 22 | |||||
| Additional paid-in capital | 3,071,652 | 3,031,244 | |||||
| Accumulated other comprehensive income/(loss) | 10,239 | (6,861 | ) | ||||
| Retained earnings | 1,213,657 | 1,152,813 | |||||
| Total equity | 4,295,683 | 4,177,333 | |||||
| Total liabilities and equity | $ | 4,961,089 | $ | 5,251,750 | |||
| GLOBUS MEDICAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | ||||||||
| Six Months Ended | ||||||||
| June 30, | ||||||||
| (In thousands) | 2025 | 2024 | ||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 278,308 | $ | 24,643 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Bargain Purchase Gain | (110,561 | ) | — | |||||
| Acquired in-process research and development | — | 12,613 | ||||||
| Depreciation and amortization | 136,705 | 118,849 | ||||||
| Amortization of premiums on marketable securities | (421 | ) | (14 | ) | ||||
| Provision for excess and obsolete inventory | 10,933 | 10,498 | ||||||
| Amortization of inventory fair value step-up | 6,015 | 107,341 | ||||||
| Amortization of 2025 Notes fair value step-up | 6,658 | 13,315 | ||||||
| Stock-based compensation expense | 26,823 | 30,073 | ||||||
| Allowance for expected credit losses | 4,554 | 11,481 | ||||||
| Change in fair value of business acquisition liabilities | 5,389 | 12,739 | ||||||
| Change in deferred income taxes | (41,236 | ) | (65,275 | ) | ||||
| (Gain)/loss on disposal of assets, net | 6,131 | 464 | ||||||
| Payment of business acquisition-related liabilities | (15,764 | ) | (16,965 | ) | ||||
| Net (gain)/loss from foreign currency adjustment | (11,342 | ) | 6,558 | |||||
| (Increase) decrease in: | ||||||||
| Accounts receivable | 20,395 | (124,206 | ) | |||||
| Inventories | (11,722 | ) | (22,855 | ) | ||||
| Prepaid expenses and other assets | 852 | (2,001 | ) | |||||
| Increase (decrease) in: | ||||||||
| Accounts payable | (4,085 | ) | 11,561 | |||||
| Accrued expenses and other liabilities | (13,841 | ) | (28,951 | ) | ||||
| Income taxes payable/receivable | (38,626 | ) | 6,777 | |||||
| Net cash provided by/(used in) operating activities | 255,165 | 106,645 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of marketable securities | (1,750 | ) | (12,174 | ) | ||||
| Maturities of marketable securities | 58,630 | 21,709 | ||||||
| Sales of marketable securities | 115,608 | 7,404 | ||||||
| Purchases of property and equipment | (82,665 | ) | (56,366 | ) | ||||
| Acquisition of businesses, net of cash acquired and purchases of intangible and other assets | (252,546 | ) | (17,535 | ) | ||||
| Acquisition of intangible assets | (5,000 | ) | — | |||||
| Proceeds from credit facility | 20,000 | — | ||||||
| Repayment of borrowings from credit facility | (20,000 | ) | — | |||||
| Net cash provided by/(used in) investing activities | (167,723 | ) | (56,962 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Payment of business acquisition-related liabilities | (7,864 | ) | (33,921 | ) | ||||
| Net proceeds from exercise of stock options | 15,920 | 17,651 | ||||||
| Payments related to tax withholdings for share-based compensation | (2,953 | ) | (5,955 | ) | ||||
| Repurchase of common stock | (215,451 | ) | (84,787 | ) | ||||
| Repayment of senior convertible notes | (449,985 | ) | — | |||||
| Net cash provided by/(used in) financing activities | (660,333 | ) | (107,012 | ) | ||||
| Effect of foreign exchange rates on cash | 17,899 | 461 | ||||||
| Net increase/(decrease) in cash and cash equivalents | (554,992 | ) | (56,868 | ) | ||||
| Cash and cash equivalents at beginning of period | 784,438 | 467,292 | ||||||
| Cash and cash equivalents at end of period | $ | 229,446 | $ | 410,424 | ||||
| Supplemental disclosures of cash flow information: | ||||||||
| Income taxes paid, net | $ | 93,226 | $ | 71,586 | ||||
| Non-cash investing and financing activities: | ||||||||
| Accrued purchases of property and equipment | $ | 13,454 | $ | 9,508 | ||||
| Supplemental Financial Information Net Sales by Product Category: | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (In thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Musculoskeletal Solutions | $ | 710,182 | $ | 592,913 | $ | 1,286,115 | $ | 1,167,610 | ||||||||
| Enabling Technologies | 35,160 | 36,778 | 57,348 | 68,747 | ||||||||||||
| Total net sales | $ | 745,342 | $ | 629,691 | $ | 1,343,463 | $ | 1,236,357 | ||||||||
| Liquidity and Capital Resources: | ||||||||
| June 30, | December 31, | |||||||
| (In thousands) | 2025 | 2024 | ||||||
| Cash and cash equivalents | $ | 229,446 | $ | 784,438 | ||||
| Short-term marketable securities | — | 105,619 | ||||||
| Long-term marketable securities | — | 66,134 | ||||||
| Total cash, cash equivalents and marketable securities | $ | 229,446 | $ | 956,191 | ||||
The following tables reconcile GAAP to Non-GAAP financial measures.
As of September 30, 2024, we no longer include Acquisition of in-process research and development as an adjustment to the non-GAAP financial measures. As previously disclosed, the Company incurred
| Non-GAAP Adjusted EBITDA Reconciliation Table: | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| (In thousands, except percentages) | 2025 | 2024 | 2025 | 2024 | |||||||||||
| Net income/(loss) | $ | 202,846 | $ | 31,760 | $ | 278,308 | $ | 24,643 | |||||||
| Interest (income)/expense, net | (693 | ) | 2,335 | (2,374 | ) | 4,229 | |||||||||
| Provision for income taxes | (14,673 | ) | 15,821 | 13,533 | 14,380 | ||||||||||
| Depreciation and amortization | 70,631 | 63,588 | 136,705 | 118,849 | |||||||||||
| EBITDA | 258,111 | 113,504 | 426,172 | 162,101 | |||||||||||
| Stock-based compensation expense | 13,258 | 12,735 | 26,310 | 25,174 | |||||||||||
| Provision for litigation, net | (2,621 | ) | 1,335 | (3,908 | ) | 1,304 | |||||||||
| Merger and acquisition-related costs (1) | 40,393 | 67,613 | 41,499 | 124,000 | |||||||||||
| Net (gain) loss from strategic investments | (1,248 | ) | (490 | ) | (1,309 | ) | (267 | ) | |||||||
| Non-cash acquisition-related foreign currency impacts | (8,565 | ) | (4,633 | ) | (12,337 | ) | 6,558 | ||||||||
| Restructuring costs | 19,915 | 371 | 20,649 | 25,533 | |||||||||||
| Bargain Purchase Gain | (110,561 | ) | — | (110,561 | ) | — | |||||||||
| Adjusted EBITDA | $ | 208,682 | $ | 190,435 | $ | 386,515 | $ | 344,403 | |||||||
| Net income/(loss) as a percentage of net sales | 27.2 | % | 5.0 | % | 20.7 | % | 2.0 | % | |||||||
| Adjusted EBITDA as a percentage of net sales | 28.0 | % | 30.2 | % | 28.8 | % | 27.9 | % | |||||||
| (1) Merger and acquisition-related costs represent certain costs associated with acquisitions. These costs, presented on a before-tax effect basis, are included in Non-GAAP Merger and Acquisition-related Costs table. | |||||||||||||||
| Non-GAAP Merger and Acquisition-related Costs Table: | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (In thousands) | ||||||||||||||||
| Amortization of inventory fair value step up | $ | 5,967 | $ | 53,670 | $ | 6,016 | $ | 107,341 | ||||||||
| Change in fair value of business acquisition liabilities | 5,235 | 12,901 | 5,402 | 12,743 | ||||||||||||
| Employee-related costs (b) | 27,418 | — | 27,418 | 1,457 | ||||||||||||
| Other acquisition-related costs (a) | 1,773 | 1,042 | 2,663 | 2,459 | ||||||||||||
| Merger and acquisition-related costs | $ | 40,393 | $ | 67,613 | $ | 41,499 | $ | 124,000 | ||||||||
| (a) Primarily comprised of legal fees, advisory and consulting fees. | ||||||||||||||||
| (b) Primarily comprised of severance, share based compensation and termination fees. | ||||||||||||||||
| Non-GAAP Net Income Reconciliation Table: | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| (In thousands) | 2025 | 2024 | 2025 | 2024 | |||||||||||
| Net income/(loss) | $ | 202,846 | $ | 31,760 | $ | 278,308 | $ | 24,643 | |||||||
| Provision for litigation, net | (2,621 | ) | 1,335 | (3,908 | ) | 1,304 | |||||||||
| Amortization of intangibles | 30,189 | 29,709 | 58,991 | 59,385 | |||||||||||
| Merger and acquisition -related costs (1) | 40,393 | 67,613 | 41,499 | 124,000 | |||||||||||
| Net gain/(loss) on strategic investments | (1,248 | ) | (490 | ) | (1,309 | ) | (267 | ) | |||||||
| Non-cash acquisition-related foreign currency impacts | (8,565 | ) | (4,633 | ) | (12,337 | ) | 6,558 | ||||||||
| Restructuring Costs | 19,915 | 371 | 20,649 | 25,534 | |||||||||||
| Bargain Purchase Gain | (110,561 | ) | — | (110,561 | ) | — | |||||||||
| Provision for income tax benefit from release of valuation allowance on deferred tax assets | (34,815 | ) | — | (34,815 | ) | — | |||||||||
| Tax effect of adjusting items | (18,751 | ) | (22,941 | ) | (24,907 | ) | (52,947 | ) | |||||||
| Non-GAAP net income/(loss) | $ | 116,782 | $ | 102,724 | $ | 211,610 | $ | 188,210 | |||||||
| (1) see footnote 1 to the Non-GAAP Adjusted EBITDA Reconciliation Table above for the detail of these costs. | |||||||||||||||
| Non-GAAP Gross Profit Reconciliation Table: | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| (In thousands) | 2025 | 2024 | 2025 | 2024 | |||||||||||
| Net Sales | $ | 745,342 | $ | 629,691 | $ | 1,343,463 | $ | 1,236,357 | |||||||
| Cost of Sales (exclusive of amortization of intangibles) | 248,765 | 260,040 | 444,162 | 501,527 | |||||||||||
| Amortization of Intangibles | 24,643 | 22,228 | 46,851 | 42,752 | |||||||||||
| Gross Profit | $ | 471,934 | $ | 347,423 | $ | 852,450 | $ | 692,078 | |||||||
| Amortization of inventory fair value step up | 5,967 | 53,671 | 6,016 | 107,341 | |||||||||||
| Amortization of Intangibles | 24,643 | 22,228 | 46,851 | 42,752 | |||||||||||
| Adjusted Gross Profit | $ | 502,544 | $ | 423,322 | $ | 905,317 | $ | 842,171 | |||||||
| Gross Profit % of Net Sales | 63.3 | % | 55.2 | % | 63.5 | % | 56.0 | % | |||||||
| Adjusted Gross Profit % of Net Sales | 67.4 | % | 67.2 | % | 67.4 | % | 68.1 | % | |||||||
| Non-GAAP Diluted Earnings Per Share Reconciliation Table: | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| (In thousands) | 2025 | 2024 | 2025 | 2024 | |||||||||||
| Diluted earnings per share, as reported | $ | 1.49 | $ | 0.23 | $ | 2.01 | $ | 0.18 | |||||||
| Provision for litigation, net | (0.02 | ) | 0.01 | (0.03 | ) | — | |||||||||
| Amortization of intangibles | 0.22 | 0.22 | 0.43 | 0.43 | |||||||||||
| Merger and acquisition -related costs (1) | 0.29 | 0.49 | 0.30 | 0.91 | |||||||||||
| Net (gain) loss from strategic investments | (0.01 | ) | (0.00 | ) | (0.01 | ) | (0.00 | ) | |||||||
| Non-cash acquisition-related foreign currency impacts | (0.06 | ) | (0.03 | ) | (0.09 | ) | 0.05 | ||||||||
| Restructuring costs | 0.14 | 0.00 | 0.15 | 0.20 | |||||||||||
| Valuation Allowance Release | (0.26 | ) | — | (0.25 | ) | — | |||||||||
| Bargain Purchase Gain | (0.80 | ) | — | (0.80 | ) | — | |||||||||
| Tax effect of adjusting items | (0.14 | ) | (0.17 | ) | (0.18 | ) | (0.39 | ) | |||||||
| Non-GAAP diluted earnings per share | $ | 0.86 | $ | 0.75 | $ | 1.53 | $ | 1.38 | |||||||
| (1) see footnote 1 to the Non-GAAP Adjusted EBITDA Reconciliation Table above for the detail of these costs. | |||||||||||||||
| * amounts may not add due to rounding. | |||||||||||||||
| Non-GAAP Free Cash Flow Reconciliation Table: | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| (In thousands) | 2025 | 2024 | 2025 | 2024 | |||||||||||
| Net cash provided by operating activities | $ | 77,865 | $ | 54,258 | $ | 255,165 | $ | 106,645 | |||||||
| Purchases of property and equipment | (46,562 | ) | (27,798 | ) | (82,665 | ) | (56,366 | ) | |||||||
| Free cash flow | $ | 31,303 | $ | 26,460 | $ | 172,500 | $ | 50,279 | |||||||
| Non-GAAP Net Sales on a Constant Currency Basis Comparative Table: | ||||||||||||||||||||
| Three Months Ended June 30, | Reported Net Sales | Currency Impact on Current Period Net | Constant Currency Net Sales | |||||||||||||||||
| (In thousands, except percentages) | 2025 | 2024 | Growth | Sales | Growth | |||||||||||||||
| United States | $ | 600,784 | $ | 499,459 | 20.3 | % | $ | — | 20.3 | % | ||||||||||
| International | 144,558 | 130,232 | 11.0 | % | 4,569 | 7.5 | % | |||||||||||||
| Total net sales | $ | 745,342 | $ | 629,691 | 18.4 | % | $ | 4,569 | 17.6 | % | ||||||||||
| Six Months Ended June 30, | Reported Net Sales | Currency Impact on Current Period Net | Constant Currency Net Sales | |||||||||||||||||
| (In thousands, except percentages) | 2025 | 2024 | Growth | Sales | Growth | |||||||||||||||
| United States | $ | 1,084,641 | $ | 982,386 | 10.4 | % | $ | — | 10.4 | % | ||||||||||
| International | 258,822 | 253,971 | 1.9 | % | 770 | 1.6 | % | |||||||||||||
| Total net sales | $ | 1,343,463 | $ | 1,236,357 | 8.7 | % | $ | 770 | 8.6 | % | ||||||||||
| Net Sales Reconciliation of the Nevro Acquisition Table: | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (In thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net Sales of Nevro products | $ | 94,586 | $ | — | $ | 94,586 | $ | — | ||||||||
| Net Sales of base business | 650,756 | 629,691 | 1,248,877 | 1,236,357 | ||||||||||||
| Total net sales | $ | 745,342 | $ | 629,691 | $ | 1,343,463 | $ | 1,236,357 | ||||||||
| Adjusted EBIDTA Reconciliation of the Nevro Acquisition Table: | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (In thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Adjusted EBITDA of the acquired Nevro subsidiaries | $ | (1,310 | ) | $ | — | $ | (1,310 | ) | $ | — | ||||||
| Adjusted EBITDA of base business | 209,992 | 190,435 | 387,824 | 344,403 | ||||||||||||
| Total Adjusted EBITDA (1) | $ | 208,682 | $ | 190,435 | $ | 386,515 | $ | 344,403 | ||||||||
| (1) See Non-GAAP Adjusted EBITDA Reconciliation Table above for calculation | ||||||||||||||||
Contact:
Brian Kearns
Senior Vice President, Business Development and Investor Relations
Phone: (610) 930-1800
Email: investors@globusmedical.com
www.globusmedical.com
FAQ
What were Globus Medical's (GMED) Q2 2025 earnings results?
How much did Globus Medical's U.S. sales grow in Q2 2025?
What is Globus Medical's revenue guidance for 2025?
How did Globus Medical's international sales perform in Q2 2025?
What drove GMED's significant net income increase in Q2 2025?
