Bioventus Inc. Q1 FY2026 earnings call

• Three priorities for the year: accelerate long-term revenue growth with increased investment, increase earnings while investing in future growth drivers, accelerate cash flow. - First quarter revenue growth 7% ahead of expectations, driven by strong core portfolio performance. - Increased investment in growth drivers like P&S, PRP, ultrasonics, international segment, including expanding commercial teams, marketing, physician training. - Adjusted EBITDA increased 24%, adjusted EPS 15 cents, nearly double last year. - Cash from operations increased $28 million, largest in first quarter since public company, with plan to use free cash flow to reduce debt.

First quarter revenue was $132 million, up 7%. Global pain treatments revenue grew 8%, driven by favorable rebate adjustment in HA. Global surgical solutions revenue grew 6%. Global restorative therapies revenue grew 5%. International revenue growth was 17% (11% on constant currency). Adjusted EBITDA was $24 million, up 24%, with adjusted EBITDA margin 18%, expanding 260 basis points. Adjusted EPS was $0.15, nearly double compared to first quarter last year. Cash from operations increased $28 million compared to first quarter last year, marking largest cash flow from operations in first quarter since public company status.

• Raised adjusted EPS guidance to range between 75 cents to 79 cents (up from prior 73 cents to 77 cents). - Raised cash from operations guidance to range between $84 million and $89 million (up $2 million from prior). - Reaffirmed 2026 revenue guidance of $600 million to $610 million. - Expect revenue, adjusted EBITDA, and adjusted earnings per share to accelerate from first half to second half of 2026 as leverage from investments.

Q: Clarification on rebate, revenue guidance, and update on PRP and Talisman launches.

A: Favorable rebate from one commercial payer partner, revenue guidance unchanged otherwise, encouraged by first quarter progress with PRP and Talisman, expect growth to ramp up.

Q: Quantify impact of rebates in pain, volume dynamics, and new launches in surgical.

A: Rebate impact in pain, volume growth had headwinds but normalized, new launches like P&S and PRP expected to accelerate.

Q: Details on ultrasonics education and training, and disclosure of P&S and PRP progress.

A: Heavy focus on surgeon training in ultrasonics, expect to have more specific disclosure on P&S and PRP by end of the year.

Q: Amount of investment in growth areas allocated and breakdown, and PNS progress.

A: $13 million investment 25% allocated so far, focused on sales force, clinical expertise, medical education in growth drivers; P&S and PRP out of pilot, ramping up with different dynamics, Megan Rosengarten leading P&S efforts to scale the business