Bioventus Q3 Earnings Call Highlights

Key Points

• Q3 revenue rose 3% to $142 million, while adjusted EBITDA increased to $28 million and adjusted EPS grew 13% to $0.17. Growth in Pain Treatments, Ultrasonics and international markets offset weakness in bone graft substitutes (BGS).
• Bioventus is investing in peripheral nerve stimulation, platelet-rich plasma, Ultrasonics and international expansion. Pain Treatments revenue grew 6%, international revenue increased 16%, and management expects continued momentum in these areas.
• The company lowered its 2026 revenue outlook to $590 million–$595 million because of weaker BGS expectations, while reaffirming adjusted EPS guidance of $0.75–$0.79. Bioventus also repaid $19 million of debt and said its strategic-alternatives review remains ongoing.

Bioventus NASDAQ: BVS reported third-quarter revenue growth of 3% as strength in its Pain Treatments business, Ultrasonics operation and international markets was partly offset by softness in bone graft substitutes, or BGS, within Surgical Solutions.

Revenue totaled $142 million for the quarter. Adjusted EBITDA was $28 million, nearly $2 million higher than a year earlier, while adjusted EBITDA margin expanded 70 basis points to 20%. Adjusted earnings per diluted share rose 13% to $0.17.

President and CEO Rob Claypoole said the company continued to invest in four identified growth drivers: peripheral nerve stimulation, platelet-rich plasma, Ultrasonics and international business. The company also disclosed that its review of strategic alternatives remains underway following an unsolicited acquisition proposal and multiple expressions of interest.

“The process is ongoing, and we will continue to take the time necessary to fully assess all options and determine the best path forward for our shareholders,” Claypoole said. Management said it would not provide further details or answer questions concerning the review.

Pain Treatments and Growth Drivers

Global Pain Treatments revenue increased 6% year over year to $71 million and was up 9% through the first nine months of 2026. The company attributed the performance to its hyaluronic acid portfolio, Durolane, and early traction in platelet-rich plasma, or PRP, and peripheral nerve stimulation, or PNS.

Claypoole said PRP capital placements increased sequentially and disposable-kit reorders accelerated. During the third quarter, PRP disposable-kit revenue exceeded revenue from capital placements, which he described as an indicator of future growth. Bioventus also secured exclusive rights from PRP partner APEX Biologix to offer its PRP solution in sports medicine accounts.

In PNS, the company said trial-to-permanent conversion rates exceeded plan, the time between trial and permanent implant placement declined, and physicians trained increased more than 50% sequentially. Claypoole said clinician feedback on the TalisMann product has been encouraging. The company expanded its commercial infrastructure, added a marketing leader and increased its presence at medical congresses and industry meetings.

Management said PRP and PNS were tracking somewhat below the 200-basis-point growth contribution target discussed earlier in the year, though Claypoole said the company remained encouraged by progress and would provide a full-year update after the year concludes. He said Bioventus expects to scale its PNS business to more than $100 million in revenue in coming years.

Surgical Solutions Faces BGS Pressure

Surgical Solutions revenue rose 1% to $51 million. Ultrasonics delivered double-digit revenue growth, supported by capital placements, surgeon adoption, disposable-volume growth and new account wins. Management said it expects Ultrasonics momentum to continue in the fourth quarter and into 2027.

BGS revenue, however, came in below company expectations. Claypoole cited competitive dynamics in the synthetic market, modest softness in spine procedures and temporary delays in adding distributors. He said the company took actions late in the third quarter and was seeing positive results in October, which was tracking ahead of expectations.

Claypoole said the competitive impact was primarily concentrated in the synthetic category, while slower procedures and distributor additions affected the broader portfolio. He reiterated management’s confidence in its strategy with integrated delivery networks, or IDNs, saying larger accounts are increasingly evaluating products through proposal processes that consider clinical and economic value.

Chief Financial Officer Mark Singleton said BGS would be lower than originally expected in the fourth quarter but should show sequential growth acceleration. He also noted that the BGS business has the company’s lowest variable margin, limiting the profit impact of its revenue shortfall relative to other businesses.

International Growth and EXOGEN Recovery

International revenue grew 16% to $18 million, or 18% on a constant-currency basis, driven mainly by double-digit growth in Ultrasonics and hyaluronic acid products. Bioventus expects international revenue to grow more than 20% in the fourth quarter and said it sees continued strong growth potential in 2027.

Restorative Therapies revenue declined 3% to $21 million. Singleton said the decline reflected higher vacancies in the EXOGEN sales force, which have since been filled. Management expects EXOGEN growth to improve in the fourth quarter, though the business is expected to post low-single-digit growth for the full year before returning to a low- to mid-single-digit growth range thereafter.

Cash Flow, Debt Reduction and Updated Outlook

Cash flow from operations was $21 million in the quarter. Bioventus used the cash generation to repay an additional $19 million of its term loan, bringing year-to-date debt repayments to $65 million. The company ended the quarter with $31 million in cash, $230 million in outstanding debt and net debt below $200 million.

Singleton said Bioventus continues to expect its net leverage ratio to be below 1.5 times by year-end. The company increased planned growth-driver investments from $13 million to nearly $15 million for the year, with more than half allocated to PNS, according to Claypoole.

Bioventus reaffirmed full-year adjusted earnings guidance of $0.75 to $0.79 per diluted share. It reduced its 2026 revenue outlook to $590 million to $595 million, primarily reflecting lower BGS expectations. The company expects mid-single-digit revenue growth in the fourth quarter.

The company also updated its cash-from-operations guidance to $84 million to $89 million and introduced adjusted cash-from-operations guidance in the same range, excluding the cash-flow effect of its strategic-alternatives review.

About Bioventus (NASDAQ:BVS)

Bioventus Inc is a medical device and biologics company focused on developing and commercializing products that support bone healing, joint health and surgical recovery. Its portfolio is designed to help healthcare professionals treat musculoskeletal conditions and improve patient outcomes through noninvasive therapies, injectable products and biologic solutions.

The company's offerings include bone stimulation systems such as EXOGEN, which is used to support fracture healing, as well as injectable osteoarthritis treatments including DUROLANE and GELSYN-3.

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