ZimVie (ZIMV -0.16%), a medical technology company focused on dental implant systems, released its earnings results on July 30, 2025. The company reported a clear improvement in profitability, with adjusted diluted EPS of $0.26 -- beating the consensus estimate of $0.21 (non-GAAP). Revenue (GAAP) was $116.7 million, a decrease of (0.1)% from Q2 2024, just under last year but higher than expected. Revenue held steady at $116.7 million, representing a small decline of (0.1)% from Q2 2024, but beat forecasts by $3.9 million (3.4%). While total sales held steady, ZimVie posted a smaller net loss and a higher adjusted EBITDA margin compared to the prior year. The quarter showed progress on cost management and operational efficiency, even as market conditions remained slow.
| Metric | Q2 2025 | Q2 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS – Diluted (Non-GAAP) | $0.26 | $0.21 | $0.13 | 100.0 % |
| Revenue | $116.7 million | $112.8 million | $116.8 million | -0.1 % |
| Net Loss | $(3.8) million | $(9.6) million | Lower loss | |
| Adjusted EBITDA | $17.5 million | $15.8 million | 10.8 % | |
| Adjusted EBITDA Margin | 15.0 % | 13.5 % | 1.5 pp |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Strategic Focus
ZimVie is a dental technology firm specializing in dental implant systems, biomaterials (materials used to regenerate bone and soft tissue), and digital dentistry solutions such as surgical planning and workflow software. Following the sale of its spine business, the company has focused resources exclusively on dental markets, aiming to grow in faster-expanding segments by leveraging innovation and a broad catalog of products. Its primary customers are dental professionals globally, served through a combination of direct sales teams and specialized distributor partners.
Recently, ZimVie placed special emphasis on tightening its product focus, improving operational efficiency, and deepening its penetration in premium markets. Success for the company now depends on delivering clinical innovation in dental implants and digital dentistry, managing regulatory requirements (including U.S. Food and Drug Administration and European standards), and extending its global distribution reach. Cost discipline and product mix have played a central role in supporting recent financial improvements.
Key Developments and Financial Highlights for the Quarter
Profitability improved meaningfully even as overall sales remained flat. Adjusted EPS was double that of the second quarter of 2024 and topped analyst expectations by 23.8% (non-GAAP). The net loss (GAAP) narrowed to $3.8 million, which was about $5.7 million less than the prior-year period. Adjusted EBITDA was $17.5 million, an increase of $1.6 million versus the second quarter of 2024. The company’s adjusted EBITDA margin reached 15.0%, up from 13.5% for Q2 2024.
Revenue (GAAP) held steady at $116.7 million, representing a small decline of (0.1)% from Q2 2024, but beat forecasts by $3.9 million (3.4%). Sales in the United States, its largest market, decreased 2.0%, while international sales grew 2.5% year over year on a reported basis. However, currency effects meant that in constant or local-currency terms, both regions posted a drop. Management cited ongoing volume and market softness in the U.S. implant business, but highlighted that commercial initiatives and better sales mix helped offset these trends.
Operationally, ZimVie showed further progress in cost efficiency. Adjusted selling, general, and administrative costs fell 5.0% to $59.2 million, or 50.8% of sales versus Q2 2024, as the company streamlined functions and continued to invest in higher-margin digital and implant offerings. Adjusted research and development costs declined as a percentage of sales, reaching 4.9% versus 5.4% in Q2 2024. Adjusted cost of products sold improved to 35.2% of sales from 37.0%.
On the product side, ZimVie launched a new Immediate Molar Implant system, which falls under its dental implant product family. The initial response outpaced internal projections, contributing to a stronger sales mix. Its biomaterials business showed growth in the prior quarter, and its digital dentistry offerings (such as realGUIDE workflow software and implant concierge service) grew at a high single-digit to mid-teens rate. These innovation-driven segments are seen as important for driving long-term growth, especially as the company broadens international offerings like the implant concierge launch in Japan.
The quarter also saw ZimVie build on its global sales capabilities, completing the acquisition of a distributor partner in Costa Rica. This move is expected to help margins by bringing more sales under direct control and deepening exposure in a market known for dental tourism. The U.S. remains the company’s largest and most profitable sales territory. However, increased price competition was noted in the Iberian region (specifically, Portugal), and management continues to monitor and adapt strategies for value-oriented or low-cost markets.
From a regulatory standpoint, the company maintained its focus on compliance with the U.S. and European device standards while continuing to navigate tariff-related costs. Actions to adjust supply chain and manufacturing sites helped mitigate about $3 million in annual tariff exposure, according to previous company statements. Cash flow (GAAP) remained negative for the first half, with $70.2 million in cash as of quarter-end and $220.8 million in debt at quarter-end. Stockholders' equity rose to $412.8 million.
Outlook and Investor Considerations
Given that ZimVie announced its pending acquisition by ARCHIMED for $19.00 per share, expected to close by year-end, management has withdrawn previous financial guidance. Earlier guidance, now retracted, had called for low-single-digit revenue growth and continued improvement in profitability. For investors, this means fewer forward-looking statements and less visibility, aside from the fixed acquisition price through deal closing. No new forward estimates were provided this quarter.
Key areas to watch moving forward include the company’s ability to sustain cost discipline and navigate competitive pressures in both mature and emerging markets. The focus and investments around dental innovation and digital dentistry remain central to the company’s future prospects, regardless of ownership. ZIMV does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
