Globus Medical, Inc. Q4 FY2025 earnings call

• Momentum continued in 2025 with record Q4 performance. • Base business grew organically 8.8% in second half of 2025. • Sixth consecutive quarter of adjusted gross margin rate expansion. • Launched 6 spine products in 2025, including CREO Traction, etc. • Enabling Technologies saw growth driven by EGPS systems. • Trauma business grew driven by legacy trauma line and product launches. • Integration of Nevro ongoing with focus on profitable growth. • Synergy execution with NuVasive achieving $200M of synergies ahead of plan, Nevro accretive to earnings earlier than expected.

Full year 2025 revenue was $2.939 billion, non-GAAP EPS $3.98, growing 16.7% and 30.8% respectively. Q4 revenue $826.4 million, up 25.7% y/y, non-GAAP EPS $1.28, up 52.1% y/y. Base business revenue ex-Nevro grew 5% full year, Nevro added $293.6M. U.S. Spine grew 10% in Q4, Enabling Technologies sales $55.6M in Q4, up 18.5% y/y. Trauma business grew ~27% in Q4. Nevro had $99.7M revenue in Q4 with 21.2% adjusted EBITDA.

• Reaffirms full year 2026 revenue guidance of $3.18 billion to $3.22 billion, up from 2025. • Increases non-GAAP fully diluted earnings per share guidance to $4.40 to $4.50 from $4.30 to $4.40. • Expect at least 100-basis point improvement on adjusted gross profit in 2026 with full year adjusted gross margin in 69% to 70% range. • Expect R&D expense in 5% to 6% of net sales in 2026. • Expect SG&A expense in 38% to 39% of net sales in 2026. • Expect CapEx in 5% to 6% of net sales in 2026.

Q: Shagun Singh Chadha asked about base business growth and margins.

A: Keith Pfeil and Kyle Kline discussed sales growth momentum, margin improvement plans.

Q: Namratha on behalf of Vik Chopra asked about market share and spine market strength.

A: Keith Pfeil talked about U.S. Spine growth above market and view of spine market as healthy.

Q: Richard Newitter asked about Enabling Technologies performance and operating lease strategy.

A: Keith Pfeil and Kyle Kline talked about Enabling Tech lumpy year, more aggressive deal structuring including operating leases.

Q: Travis Steed asked about U.S. Spine growth sustainability and competitor Enabling Tech robot.

A: Keith Pfeil said U.S. Spine growth is durable, competitors' offerings reinforce Excelsius.

Q: Mathew Blackman asked about Nevro growth and international business.

A: Keith Pfeil talked about Nevro growth plans and international business focus on deeper penetration.

Q: Matthew Miksic asked about leverage and competition.

A: Kyle Kline talked about leverage from base business growth, Keith Pfeil talked about monitoring competition.

Q: Anna Runci asked about Nevro synergy optimization.

A: Kyle Kline said focused on G&A synergy, looking to grow sales volume for leverage.

Q: Caitlin Cronin asked about Enabling Tech deals and Nevro lower acuity strategy.

A: Keith Pfeil talked about Enabling Tech deal timelines and Nevro cross-sell strategy.

Q: David Saxon asked about gross margin path and Nevro manufacturing.

A: Kyle Kline and Keith Pfeil talked about gross margin improvement and Nevro manufacturing optimization.

Q: Ryan Zimmerman asked about guidance composition and EBITDA margins.

A: Keith Pfeil and Kyle Kline talked about guidance components and R&D investment impact on margins.

Q: Keith Hinton asked about Enabling Tech leases and cash deployment.

A: Keith Pfeil talked about lease smoothing and cash deployment priorities.

Q: Thomas Stephan asked about U.S. spine surgery environment.

A: Keith Pfeil talked about market growth and positioning to grow above market