Globus Medical (GMED 2.48%), a spinal and musculoskeletal medical device company, reported its Q2 2025 earnings on August 7, 2025. The main highlight was a jump in headline net income (GAAP) in Q2 2025, driven by unique, non-operational items such as a major acquisition gain and a one-time tax benefit. Reported revenue (GAAP) was $745.3 million, surpassing the analyst estimate of $741.1 million. Non-GAAP earnings per share (EPS) landed at $0.86, outpacing the $0.75 estimate. Under the surface, core U.S. Spine business delivered growth of 5.7% (as reported), Enabling Technologies revenue (GAAP) dipped, and adjusted profit margins (non-GAAP, as a percentage of net sales) compressed somewhat. The company reaffirmed its annual guidance for fiscal 2025, projecting revenue in the range of $2.80 to $2.90 billion and non-GAAP fully diluted EPS between $3.00 and $3.30, signaling management’s continued confidence, but did not provide an upward revision following the modest beat this period.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.86 | $0.75 | $0.75 | 14.7% |
| Revenue (GAAP) | $745.3 million | $741.1 million | $629.7 million | 18.4% |
| Adjusted EBITDA (Non-GAAP) | $208.7 million | $190.4 million | 9.6% | |
| Free Cash Flow (Non-GAAP) | $31.3 million | $26.5 million | 18.1% | |
| Gross Margin (Non-GAAP) | 67.4% | 67.2% | 0.2 pp |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q2 2025 earnings report.
Company Overview and Recent Areas of Focus
Globus Medical develops and sells devices for treating musculoskeletal disorders, with a focus on spinal surgeries and orthopedic problems. Its core business includes spinal implants, surgical instruments, robotics, and enabling technologies for navigation and planning.
The company’s growth centers on three key areas: accelerating new product development, expanding its commercial sales team both in the United States and internationally, and pursuing strategic acquisitions. Innovation, sales force strength, and integrating acquired businesses are all critical factors for success in the competitive medical device market. Regulatory compliance and the ability to secure reimbursement from insurers are also ongoing priorities.
Quarterly Highlights: Revenue Growth, Acquisition Impacts, and Segment Performance
The period saw revenue (GAAP) total $745.3 million, up 18.4% compared to the prior-year quarter and modestly above analyst expectations. This included $94.6 million of revenue from newly acquired Nevro products. Stripping out Nevro, the core base business grew 3.3% year over year. The main revenue driver was U.S. Spine, which grew 5.7% as reported and 7.4% on a day-adjusted basis. International markets added $144.6 million, reflecting 11.0% GAAP growth, but trailed domestic sales, highlighting the company’s stronger foothold in the United States.
Headline profits jumped sharply in Q2 2025, primarily due to unique, non-recurring gains: a $110.6 million bargain purchase gain from the Nevro acquisition and a $34.8 million tax benefit. These items drove GAAP net income significantly higher, but do not reflect ongoing operations. On a non-GAAP basis, net income was up 14.1% versus the same quarter last year. Adjusted EBITDA (non-GAAP) increased 9.6% year over year, but adjusted EBITDA margin narrowed to 28.0%, down from 30.2% for Q2 2024.
The company's Musculoskeletal Solutions segment, which covers spinal implants and related technologies, was the largest contributor, reaching $710.2 million in GAAP sales. The Enabling Technologies segment, which supplies robotics, navigation, and imaging hardware for surgical procedures, recorded $35.16 million in GAAP net sales, down 4.4% year over year. This marks a soft patch for enabling tech, despite management describing a "modest bounce back."
Globus Medical closed the Nevro acquisition during the quarter, using a portion of its cash and eliminating all senior convertible notes from its balance sheet. Integration costs affected profitability, as Nevro's contribution to adjusted EBITDA was negative $1.3 million. Increased “selling, general and administrative” expenses (GAAP), up $64.2 million from last year, were attributed to expanded sales teams and merger-related activities. In line with the company’s aim to enhance its sales force and accelerate product launches, these investments are meant to drive future growth even as they weigh on current margins.
Looking Forward: Guidance and Areas to Watch
For the full year 2025, management maintained its revenue projection of $2.80 to $2.90 billion and non-GAAP EPS range of $3.00 to $3.30. This indicates that, while the company modestly outperformed in Q2 2025, management views the current run rate as consistent with plan. There were no changes to forward guidance, and no dividend has been declared or raised. GMED does not currently pay a dividend.
Investors watching Globus Medical in upcoming quarters will be focused on how quickly the company integrates its new acquisitions, particularly Nevro and NuVasive, and drives operational efficiency. Sustained performance in the core U.S. Spine business, as well as renewed growth in Enabling Technologies, could be important for maintaining momentum. The company’s shrinking cash position from acquisitions and share repurchases is a trend to monitor, as are future margin developments given integration costs. These areas remain important context for future periods.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
