Bioventus NASDAQ: BVS reported second-quarter 2026 revenue growth of 4% and reiterated its full-year financial outlook, citing double-digit expansion in its Pain Treatments business, continued debt reduction and increased investment in platelet-rich plasma, peripheral nerve stimulation, Ultrasonics and international operations.
The company also said its board formed a committee of independent directors to evaluate strategic options after receiving multiple expressions of interest and an unsolicited acquisition proposal. President and CEO Rob Claypoole said the alternatives could include a sale of the company or continued execution of Bioventus’ standalone plan. The committee is being advised by Evercore.
“We have built a strong foundation for growth and success at Bioventus,” Claypoole said, adding that the committee would evaluate options intended to maximize shareholder value. The company did not provide additional details regarding the proposal or review process during its call.
Quarterly Results and Guidance
Second-quarter revenue totaled $153 million, up 4% from the prior-year period. Adjusted EBITDA was $35 million, an increase of more than $1 million year over year, while adjusted EBITDA margin expanded 20 basis points to 23% despite increased investment in growth initiatives.
Adjusted earnings were $0.22 per diluted share, compared with $0.21 a year earlier. Chief Financial Officer Mark Singleton said adjusted net income rose to $20 million from $19 million in the prior-year quarter, supported by revenue growth, stable gross margins and lower interest expense.
Adjusted gross margin was 75%, down 90 basis points from the prior year, primarily reflecting higher freight costs and product mix. Adjusted operating and research-and-development expenses increased by $4 million as the company expanded spending on its growth drivers.
Bioventus reaffirmed its 2026 guidance:
- Revenue of $600 million to $610 million.
- Adjusted earnings per diluted share of $0.75 to $0.79.
- Cash from operations of $84 million to $89 million.
Singleton said the company expects revenue growth in the second half to exceed first-half growth by more than 300 basis points. About half of that acceleration is expected to come from Surgical Solutions, including some order timing shifts from the second quarter, while the remainder is expected to come from faster growth in PRP and PNS.
Pain Treatments Led Growth
Global Pain Treatments revenue increased 12% to $82 million. The company attributed the result primarily to growth in hyaluronic acid therapies, led by its single-injection DUROLANE product. Claypoole said DUROLANE posted double-digit volume growth during the first half and continued to gain volume in existing accounts while adding new customers.
Management pointed to DUROLANE’s clinical differentiation, broad private-payer coverage, dedicated sales force and disciplined pricing as factors supporting growth above the broader market. Claypoole said performance in the pain business was driven by volume growth rather than pricing.
Bioventus also reported positive contributions from PRP and PNS, with both businesses expected to ramp in the second half. In PRP, the company said capital placements accelerated and disposable reorders became both larger and more frequent. Management said it is leveraging its HA sales force to support PRP adoption, with PRP also creating opportunities to win additional HA business.
For PNS, Bioventus cited faster surgeon adoption, more StimTrial placements and high conversion rates to permanent TalisMann implants. Claypoole said the company expanded its PNS team during the quarter and is receiving favorable market feedback on the technology’s differentiation. He described PNS as an approximately $200 million market that could reach $500 million over the next several years, and said Bioventus aims to scale its PNS business to more than $100 million.
Surgical and Restorative Business Trends
Surgical Solutions revenue declined 5% year over year to $50 million, though it increased 5% sequentially. Singleton said results were affected by a difficult prior-year comparison and the timing of certain Ultrasonics capital placements and international orders. Those timing shifts moved about $2 million of revenue into the second half, representing more than 100 basis points of impact at the company level.
Management said Ultrasonics disposable sales are accelerating, alongside increased surgeon adoption, new customer wins and additional placements. Claypoole said the timing of capital placements alone represented nearly a 400-basis-point impact on Surgical Solutions growth. The company expects early indicators, including new wins with larger accounts and integrated delivery networks, to support second-half growth.
Revenue from bone graft substitutes was also pressured by a difficult comparison and deliberate portfolio actions intended to prioritize higher-margin opportunities. Management did not quantify the revenue impact of those actions but said it had gained new large accounts and was seeing early penetration at recently won customers.
Restorative Therapies revenue declined 2% to $21 million, driven by a shift in payer mix involving fewer Medicare orders and a difficult prior-year comparison. Claypoole said volume grew in the quarter and that Bioventus expects EXOGEN to return to low- to mid-single-digit growth in the second half. He said a CMS pricing reversal was not expected to have a material impact.
Cash Flow and Deleveraging
Cash flow from operations was $20 million in the quarter. Bioventus ended the period with $29 million in cash and $248 million in outstanding debt, after repaying an additional $24 million of its term loan. Total debt repayment for the first half was $46 million.
The company said net leverage fell below 2 times and is expected to be below 1.5 times by year-end. Singleton said cash from operations is expected to approximately double in the second half compared with the first half as Bioventus continues to prioritize debt repayment and balance-sheet strength.
About Bioventus (NASDAQ:BVS)
Bioventus, headquartered in Durham, North Carolina, is a global medical device company specializing in orthobiologic solutions aimed at accelerating healing and improving patient outcomes in musculoskeletal conditions. The company develops and commercializes a portfolio of non‐surgical therapies designed to address bone healing, osteoarthritis pain management and soft tissue repair. Its flagship EXOGEN® Ultrasound Bone Healing System utilizes low‐intensity pulsed ultrasound technology to stimulate bone growth and has been widely used in the management of delayed fractures and nonunions.
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