Bioventus Inc. Q3 FY2025 earnings call

• Third quarter revenue of $139 million advanced 8% organically, accelerating from the first half. - Pain treatments: HA therapies outpaced market growth with DUROLANE's account wins, clinical differentiation, etc. Surgical solutions: Bone graft substitutes and ultrasonics showed growth. Restorative therapies: Exogen had double-digit organic revenue growth. - Highlighted growth drivers: Peripheral nerve stimulation (PNS) limited launch of StimTrial and TalisMann is tracking ahead of expectations, and platelet-rich plasma (PRP) Excel system training of sales team with expected sales increase. - Adjusted EBITDA was $27 million, up 13%, with adjusted EBITDA margin at 19% expanding 220 basis points. - Cash from operations in third quarter nearly tripled vs last year, with year-to-date cash from operations up 88% and on pace to nearly double full year compared to last year.

Third quarter revenue was $139 million, advancing 8% organically. Pain treatments: HA therapies like DUROLANE saw growth due to clinical differentiation, commercial team execution, private payer coverage, and geographic expansion opportunities. Surgical solutions: Bone graft substitutes showed growing momentum, and ultrasonics had double-digit growth year-to-date. Restorative therapies: Organic revenue growth was double digits again, thanks to Exogen team's focus and execution. The 3 largest products (HA, DGS, Exogen) demonstrate portfolio strength. Revenue contribution: Pain treatments, surgical solutions, and restorative therapies each contributed to overall revenue with specific organic growth patterns.

• Reiterates 2025 financial guidance: organic revenue growth 6%-8%, adjusted EBITDA $112 million-$116 million, EPS $0.64-$0.68. - Guidance incorporates full year impact of $5 million tariffs and year-to-date foreign exchange rates, and does not assume additional impact from U.S. dollar fluctuation in fourth quarter.

• Remarks contain forward-looking statements with inherent risks and uncertainties, including those described in the company's filings with the Securities and Exchange Commission, such as Item 1A Risk Factors of the Form 10-K for the year ended December 31, 2024.

Q: Chase Knickerbocker with Craig-Hallum asked about pain growth, specifically DUROLANE and legacy businesses in pain.

A: Robert Claypoole and Mark Singleton responded on pain business acceleration, DUROLANE's growth, market fluctuations, and legacy business dynamics.

Q: Chase Knickerbocker with Craig-Hallum asked about surgical business acceleration into Q4 and distributor productivity.

A: Robert Claypoole spoke on bone graft substitutes' growth driven by distributor partners and clinical/economic value proposition, and ultrasonics' double-digit growth.

Q: Chase Knickerbocker with Craig-Hallum asked about TalisMann's competitiveness and clinical data.

A: Robert Claypoole discussed scaling TalisMann commercially, building commercial organization, and increasing market awareness.

Q: Ross Osborn with Cantor Fitzgerald asked about ultrasonics penetration and profitability balance.

A: Robert Claypoole and Mark Singleton spoke on ultrasonics penetration through raising awareness and balancing growth with profitability.

Q: Caitlin Cronin with Canaccord Genuity asked about guidance philosophy and Exogen's strength.

A: Mark Singleton and Robert Claypoole responded on maintaining 2025 guidance, Exogen's consistent commercial execution driving double-digit growth.