Globus Medical Q2 Earnings Call Highlights

Key Points

• Q2 revenue rose 6% to $789.6 million, while record non-GAAP EPS increased 56% to $1.34 and adjusted EBITDA margin expanded to 35.4%. Spine and trauma growth offset declines in enabling technologies and Nevro.
• Musculoskeletal revenue grew 8%, led by 7% U.S. spine growth, 12% constant-currency international spine growth and a 31% increase in trauma revenue. Robotic-equipment placements also increased despite lower reported enabling-technologies revenue as the company shifts toward leasing and rental models.
• Globus reaffirmed 2026 revenue guidance of $3.18 billion to $3.22 billion but raised its adjusted EPS outlook to $4.95-$5.05. The company also repurchased $136.1 million of stock during the quarter, while continuing efforts to improve Nevro’s sales execution and margins.

Globus Medical NYSE: GMED reported second-quarter 2026 revenue of $789.6 million, up 6% from a year earlier, as growth in its spine and trauma businesses helped offset declines in enabling technologies and Nevro sales. The company reaffirmed its full-year revenue outlook while raising its adjusted earnings forecast, citing margin expansion and operating leverage in the first half.

Fully diluted GAAP earnings per share were $1.10, while non-GAAP diluted earnings per share reached a quarterly record of $1.34, up 56% from the prior-year quarter. Adjusted EBITDA margin increased to 35.4% from 28.0% a year earlier.

“We completed an exceptional Q2, positioning us for a strong 2026 as we move into the second half of the year,” President and Chief Executive Officer Keith Pfeil said on the company’s earnings call.

Spine and Trauma Drive Musculoskeletal Growth

Musculoskeletal revenue totaled $763.5 million, rising 8% year over year and 4% sequentially. Excluding Nevro, the company’s base business grew 9%, led by 7% growth in U.S. spine revenue and 14% reported growth in international spine revenue.

Pfeil said U.S. spine growth reflected procedural volumes, competitive sales-force recruiting, robotic pull-through and product launches. The company said competitive hires in the second quarter were double the first-quarter level and represented its second-highest onboarding total in eight quarters.

Several U.S. spine products posted double-digit growth, including SABLE, ELSA, HEDRON C, Reline-C and Reline Open, according to management. Its DuraPro power tools product grew more than 250% during the quarter.

International spine revenue rose 12% on a constant-currency basis. The company cited mid-teens growth in Italy, Spain and Poland, along with broad-based growth in Asia-Pacific markets and gains in Brazil and Colombia. Pfeil said improved set deliveries and inventory availability supported deeper penetration in markets where Globus already operates.

Trauma revenue increased 31% year over year and 18% sequentially. Management attributed the performance to share gains in its core trauma portfolio and normalized supply for the PRECICE product line, which enabled the company to meet U.S. demand and expand availability in markets outside the United States.

The company launched three products in the quarter: the AUTOBAHN Hip Fastener and TENSOR Suture Button System for trauma procedures, as well as Reline 1 for minimally invasive spine procedures.

Capital Model Shift Pressures Enabling Technologies Revenue

Enabling Technologies revenue was $26.1 million, down 26% year over year. Chief Financial Officer Kyle Kline said the decline was tied to Globus’ strategy of offering customers more flexible ways to acquire capital equipment rather than relying principally on cash sales.

While revenue from the segment declined, management said placements of ExcelsiusGPS and ExcelsiusHub units—whether sold, leased or rented—rose 11% sequentially and 25% from a year earlier. More than 137,000 procedures have now been performed using the company’s robotic technology.

Pfeil said the company views 2026 as a transition year for the capital-acquisition strategy. The longer-term objective is to increase implant, disposable and service revenue after equipment is installed and customers are trained.

“The goal here is to drive enduring musculoskeletal growth,” Pfeil said, specifically pointing to U.S. and international spine opportunities.

Nevro Integration Continues

Nevro revenue declined 14.3% year over year and $1.7 million sequentially, though Pfeil said second-quarter sales were essentially flat with the first quarter and in line with the company’s expectations. Globus acquired Nevro in 2025 and has been integrating its pain-management business into its operating model.

Management said it filled roughly 75% of open Nevro sales roles during the second quarter. Its near-term focus is on recruiting, training and raising trial volumes, which Pfeil said are expected to improve through the second half and return to historical levels late in the fourth quarter.

Kline said Nevro’s adjusted EBITDA margin improved to 22.4% in the second quarter from 11.8% in the first quarter and negative 1.4% in the prior-year quarter, reflecting cost-control and synergy actions implemented during 2025.

Management said it expects trial-volume recovery by year-end and believes the business can improve its top-line performance by the end of 2026, but it did not provide a separate outlook for Nevro.

Margins Improve as Company Raises Earnings Outlook

GAAP gross margin was 66.8%, compared with 63.3% a year earlier. Adjusted gross margin rose 200 basis points to 69.4%, marking the company’s seventh consecutive quarter of expansion. Kline attributed the improvement to higher sales, favorable mix, manufacturing and supply-chain initiatives, and merger-related synergies, partly offset by higher freight costs.

Globus reiterated its expectation for 2026 adjusted gross margin of 69% to 70%. Kline said the company expects to reach the low-70% range by the end of the year and targets a return to a mid-70% gross-margin profile in 2027.

The company plans to increase research and development investment in the second half, with full-year R&D expense expected to be 5% to 6% of sales. Pfeil said the investments will span spine, trauma, joints, neuro, pain and software capabilities.

Globus expects to launch its patient-specific SCRIPT lumbar spacers and rods later in the third quarter. Pfeil said the products can be produced in approximately seven to 10 days and will integrate with the company’s Excelsius technology platform and spinal implant systems.

Guidance and Capital Allocation

Globus reaffirmed 2026 revenue guidance of $3.18 billion to $3.22 billion, representing projected growth of 8.2% to 9.6% over 2025. Kline said the company remained cautious on the second half because of the enabling-technology business model transition, the ongoing Nevro recovery and more difficult comparisons in spine.

The company raised its full-year non-GAAP diluted earnings-per-share forecast to $4.95 to $5.05 from $4.70 to $4.80. The revised range implies growth of 24.4% to 26.9% from 2025.

Cash, cash equivalents and marketable securities totaled $840.5 million at June 30, up from $629.1 million at year-end 2025. During the quarter, Globus repurchased $136.1 million of stock, or 1.6 million shares, leaving $253.9 million under its existing repurchase authorization.

Management said its capital-allocation priorities remain internal product development, investments in manufacturing and commercial infrastructure, share repurchases, and evaluation of complementary acquisitions.

About Globus Medical (NYSE:GMED)

Globus Medical, Inc NYSE: GMED is a leading medical device company specializing in musculoskeletal solutions for spine and orthopaedic applications. Founded in 2003 by David C. Paul and headquartered in Audubon, Pennsylvania, the company develops, manufactures and markets implantable devices and surgical instruments designed to treat spinal disorders and promote bone healing. Its product portfolio encompasses solutions for minimally invasive and open surgical procedures, including interbody fusion devices, pedicle screw systems, and biologics used to enhance fusion outcomes.

In addition to its core spine business, Globus Medical has expanded into robotics and navigation systems to support precision and efficiency in the operating room.

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