SHERIDAN, WYOMING – May 09, 2025 – Globus Medical, Inc. (NYSE: GMED), a leading provider of musculoskeletal solutions, has announced its financial results for the first quarter of 2025. The company reported worldwide net sales of $598.1 million, reflecting a 1.4% decrease year-over-year, primarily driven by a slowdown in Enabling Technology deal closures and temporary supply chain disruptions. Despite these challenges, Globus Medical saw notable growth in its core U.S. spine business and remains optimistic about its future prospects.
Key Financial Results
- Net Sales: $598.1 million, down 1.4% compared to Q1 2024. U.S. sales rose by 0.2%, while international sales declined by 7.7%.
- GAAP Net Income: $75.5 million, up significantly from a net loss in the previous year.
- GAAP Diluted Earnings Per Share (EPS): $0.54, compared to a loss of $0.05 in Q1 2024.
- Non-GAAP Diluted EPS: $0.68, marking an 8.5% increase from $0.63 in the same period last year.
Dan Scavilla, President and CEO of Globus Medical, commented, "Our first-quarter results were impacted by softer Enabling Technology deal closures, temporary integration-related supply chain disruptions, and the timing of international distributor orders. However, we are encouraged by the strong performance in April and are confident in our ability to achieve above-market growth moving forward."
Operational Highlights and Strategic Investments
During the first quarter, Globus Medical achieved several key operational milestones, positioning the company for long-term growth:
- Debt-Free Status: Globus Medical paid off the remaining $450 million of debt from the NuVasive merger, further solidifying its strong financial position.
- Record Free Cash Flow: The company generated record free cash flow of $141.2 million, which will be reinvested in scaling operations, including investments in machinery and internal manufacturing.
Keith Pfeil, COO and CFO, emphasized the company’s focus on sustainable growth: "We are driving long-term value through strategic investments in equipment and internal manufacturing capabilities. Our goal is to continue strengthening our financial foundation while advancing our innovation pipeline."
Guidance for 2025
Globus Medical has reaffirmed its 2025 revenue guidance in the range of $2.80 to $2.90 billion. The company has also updated its non-GAAP diluted EPS forecast, now expected to be between $3.00 and $3.30, down slightly from the previous range of $3.10 to $3.40.
Despite the softer-than-expected first-quarter performance, Globus Medical remains well-positioned to leverage its core strengths, particularly in the U.S. spine market, and to execute on its growth strategy throughout the remainder of 2025.
Focus on Musculoskeletal Solutions and Enabling Technologies
For the first quarter of 2025, sales in the musculoskeletal solutions category totaled $575.9 million, with Enabling Technologies contributing $22.2 million. The decrease in Enabling Technologies sales was a key factor in the overall decline in net sales, driven by fewer unit sales during the quarter.
Looking ahead, Globus Medical plans to further expand its musculoskeletal solutions portfolio while focusing on advancing its Enabling Technologies segment, which plays a critical role in the company’s long-term strategy to improve surgical outcomes and patient care.
Strong Cash Flow and Operational Efficiency
In the first quarter of 2025, Globus Medical reported net cash provided by operating activities of $177.3 million, a significant increase from $52.4 million in Q1 2024. The company’s ability to generate strong cash flow underscores its operational efficiency and financial discipline, positioning it for continued investments in growth and innovation.
Conclusion and Call to Action
Despite the challenges faced in the first quarter, Globus Medical's solid financial performance and continued strategic investments reflect its commitment to long-term growth and market leadership. As the company moves forward, it remains focused on driving innovation and delivering value to its shareholders.
To learn more about Globus Medical's initiatives and future developments, visit www.globusmedical.com.