What Management Said
Read the full Q2 2025 transcript ↗I also want to take a moment to thank Dan Scavilla for his contributions to Globus, as well as his guidance and mentorship to me over the past several years. The growth and evolution of the company remains second to none and highlights the strategic focus of living its mission. In short, I want everyone joining us today to know that Globus has many opportunities in the pipeline to fuel future organic growth and remain confident in our position within the market. At a top level, Globus delivered Q2 sales of $745 million and non-GAAP EPS of $0.86 per share, growing 18.4% and 14.1% respectively over the prior year quarter.
Free cash flow was $31.3 million, growing 18% despite the impact of the Nevro acquisition, as well as higher CapEx spending. Our base business delivered $651 million in revenue during Q2, growing 3.3% as reported and 4.9% day adjusted versus the prior year quarter, with one less selling day in the U.S. We will continue to ramp up our supply as we enter the back half of our year to accommodate for anticipated growth, including the normal Q4 seasonal bump. Every week in Q2 had shown growth versus the same week in the prior year, and we are now at 19 consecutive weeks of U.S.
spine implant growth, which includes a strong July and a great start to August. All of these factors are key to growth as we continue on the basics of launching new products, growing our sales force, and driving robotic pull-through. As Keith mentioned in his prior comments, on April 3rd, 2025, we closed our acquisition of Nevro Inc. Our Q2 2025 results include three months of legacy Globus financial information and three months of Nevro, reflective of the April 3rd acquisition closing date.
- Q2 sales were $745.3 million, growing 18.4% as reported (17.6% constant currency), with record non-GAAP EPS of $0.86 growing 14.1% over the prior year quarter.
- U.S. spine led commercially, growing 5.7% as reported and 7.4% on a day-adjusted basis, with every week of Q2 showing growth and 19 consecutive weeks of U.S. spine implant growth including a strong July and start to August.
- Enabling Technologies revenue of $35.2 million bounced back, growing 58.5% sequentially over Q1 2025 despite a 4.4% as-reported decline.
- The Nevro acquisition closed April 3, 2025 for $252.5 million in cash, contributing $94.6 million of revenue in the quarter and finishing near adjusted EBITDA breakeven.
- Legacy Globus adjusted EBITDA was 32.3% and the company generated $31.3 million of free cash flow (up 18%) despite the Nevro acquisition and higher CapEx.
- GAAP net income was $202.8 million including a $110.6 million bargain purchase gain, and the acquisition brought $141.5 million of usable deferred tax assets expected to generate cash tax savings over a prolonged period.
- Enabling Technologies revenue still declined 4.4% as reported year over year and continued to be impacted by extended timelines to close capital deals.
- Base business growth was modest at 3.3% as reported (4.9% day-adjusted), affected by one fewer U.S. selling day and two fewer days in Japan, and the prior Q1 was described as disappointing.
Guidance Changes
| Metric | Period | Current guidance |
|---|---|---|
| Total revenue | FY2025 | $2.8B-$2.9B (reiterated) |
| Non-GAAP EPS | FY2025 | $3.00-$3.30 (reiterated) |
| Nevro revenue | FY2025 | declined to break out; comfortable within overall range (withheld) |
Performance Breakdown
| Metric | YoY | Note |
|---|---|---|
| Total Q2 revenue | +18.4% as reported (+17.6% constant currency) | Above-market U.S. spine growth, enabling tech bounce back, and Nevro contribution |
| Base business revenue | +3.3% as reported (+4.9% day-adjusted) | U.S. spine growth offset by fewer selling days in U.S. and Japan |
| U.S. spine | +5.7% as reported (+7.4% day-adjusted) | Set/inventory availability, product conversions, competitive rep hiring, and surgeon engagement |
| Enabling Technologies | -4.4% as reported (+58.5% sequential) | Closing Q1 deals drove sequential bounce back, though extended deal timelines persisted |
| Legacy Globus musculoskeletal | +3.8% as reported | Driven by U.S. spine within the legacy portfolio |
| Non-GAAP EPS | +14.1% to $0.86 | Record EPS on sales growth and synergy execution |
Earnings Call Themes & Trends
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Leadership transition | Dan Scavilla as CEO | Keith Pfeil promoted to CEO effective July 18, 2025 with Kyle Kline as CFO | Transition |
| Enabling Technologies deal timelines | Soft Q1 with extended close timelines | Sequential bounce back but still elongated timelines; majority of robots still sold outright | Improving |
| Nevro integration | Just beginning cost and efficiency programs | Near EBITDA breakeven; large headcount actions taken at end of Q2; sales force energized | Early progress |
| Manufacturing in-sourcing to mid-70s gross margin | NuVasive synergy plan of $170M, year-three gross profit expansion | Inventory on balance sheet to flow through P&L in 2026, driving expanded gross profitability | On track |
Q&A Summary
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