Bioventus Inc. Q4 FY2025 earnings call

• Rob started by highlighting fourth quarter performance with 10% organic revenue growth, $8 million increase in adjusted EBITDA, and record quarterly cash from operations. - Reviewed 2025 full-year performance against three priorities: above-market organic revenue growth across businesses, expanding profitability with 150 basis points adjusted EBITDA margin expansion, and accelerating free cash flow generation with nearly $75 million cash from operations. - Outlined 2026 objectives: accelerate growth drivers with $13 million incremental investment, drive profitability exceeding revenue growth, and strengthen cash flow. - For pain treatments, investing in P&S and PRP, with P&S getting largest share due to market potential. PRP leveraging existing HA team. - Surgical solutions investing in ultrasonics marketing, medical education, sales expansion. - Restorative therapies with targeted investments. - International segment with significant investments. Mark discussed fourth quarter headline results, quarterly revenue breakdown by segment, adjusted gross margin, operating expenses, cash flow, balance sheet, and 2026 financial guidance.

Fourth quarter revenue was $158 million, up 3% year-over-year. Organic growth was 10% after adjusting for the advanced rehabilitation divestiture. Pain treatments revenue advanced 15% in Q4, with HA growth driven by Duralane volume. Surgical solutions revenue grew 3%, impacted by tough comps for ultrasonics capital sales. Restorative therapies revenue declined 26% due to divestiture, but organic growth was 10% excluding divestiture. International segment revenue unchanged year-over-year, organic growth 10% for the year. Adjusted EBITDA was $37 million, up $8 million y-o-y, margin 23% expanding 490 basis points. Adjusted gross margin 76%, up 180 basis points y-o-y.

• Net sales expected to range from $600 million to $610 million. - Adjusted earnings per share expected 73 cents to 77 cents, outpacing revenue growth. - Cash from operations projected to range between $82 million and $87 million, increase of 10%-17%. - First quarter revenue growth expected below guidance range, accelerating in Q2 as PRP and P&S investments contribute. - Revenue and adjusted EBITDA lowest in first quarter, highest in fourth quarter. Guidance not assuming additional impact from U.S. dollar fluctuation.

Remarks contain forward-looking statements based on current expectations with inherent risks and uncertainties. Factors may differ from actual results, including those described in company's SEC filings, such as item 1A risk factors in form 10-K for year ended December 31st, 2025.

Q: Chase Knickerbocker asked about pain growth contribution from price, Jelson and Supart, Duralane volume.

A: Rob said business driven by volume, HA strong with Duralane, Q4 back half acceleration. Mark discussed segment assumptions for 2026 growth. Chase also asked about HA organic growth deceleration in 2026, Rob said due to selling days, normalizing inventories, intentional focus on profitable growth.

Q: Mike Potusky asked about favorable order timing tailwind in Q4, Mark said selling days and distributor dynamics contributed ~$2 million. Also asked about P&S pilot learnings, Rob said positive feedback on technology, power, size, ease of use, scaling business. Confirmed 200 basis point bump from P&S and PRP in 2026.

Q: Caitlin Roberts asked about ultrasonics near-term expectations, Rob said biggest focus in spine space, investment in sales presence, marketing, innovation. Also asked about P&S team building, Rob said moving fast, scaling business, new general manager Megan Rosengarten hired.