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    GMED
    Earnings call· Jun 2026(Q2 FY26)

    GLOBUS MEDICAL Q2 FY26 earnings call GMED

    Aug 6, 2026 Source

    Executive summary

    Globus Medical Q2 FY26 — Strong Spine Growth and Margin Expansion Drive EPS Beat

    Globus Medical delivered a strong second quarter, driven by robust U.S. and International Spine performance and significant margin expansion, leading to an upward revision of full-year non-GAAP EPS guidance. While Nevro and Enabling Technologies faced headwinds, the company is strategically integrating Nevro and shifting its capital deployment model for long-term implant pull-through. Management remains focused on organic product development, sales force expansion, and operational efficiency to sustain above-market growth.

    Highlights

    5

    • Q2 revenue of $789.6 million grew 6% as reported, with base business (ex-Nevro) growing 9%.

    • Fully diluted non-GAAP EPS was $1.34, growing 56% YoY, exceeding prior guidance.

    • Adjusted EBITDA margin expanded by 740 basis points to 35.4%.

    • U.S. Spine grew 7% and International Spine grew 14% (12% constant currency), driven by competitive recruiting and product launches.

    • Adjusted gross profit margin reached 69.4%, a 200 basis point improvement YoY, marking the seventh consecutive quarter of expansion.

    Concerns

    3

    • Nevro revenue declined 14.3% YoY and saw a $1.7 million sequential sales decline from Q1 to Q2 2026.

    • Enabling Technologies revenue declined 25.8% to $26.1 million due to a shift towards flexible capital acquisition models.

    • U.S. Spine growth of 7% stepped down from prior quarters, with tougher comps expected in H2 FY26.

    Guidance & targets

    10
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $3.18 billion to $3.22 billion
    high materiality
    High
    Full-year 2026 Non-GAAP Fully Diluted EPS
    $4.95 to $5.05
    high materiality
    High
    Full-year 2026 Revenue Growth
    8.2% to 9.6%
    high materiality
    High
    Full-year 2026 Non-GAAP EPS Growth
    24.4% to 26.9%
    high materiality
    High
    Full-year 2026 Adjusted Gross Profit Margin
    69% to 70%
    medium materiality
    High
    Full-year 2026 R&D Expense
    5% to 6% of net sales
    medium materiality
    High
    Full-year 2026 Non-GAAP Tax Rate
    23% to 24%
    medium materiality
    High
    International Spine Growth
    sustained double-digit growth
    medium materiality
    High
    Nevro Trial Volume Recovery
    by the end of this year
    medium materiality
    Medium
    Adjusted Gross Profit Margin
    mid-70s
    high materiality
    High

    Segment performance

    10
    SegmentRevenueYoYQoQMargin
    Musculoskeletal
    Grew despite the decline in Nevro.
    		$763.5 million7.5%——
    Base business Globus musculoskeletal
    		—10.9%——
    Enabling Technologies
    Softer quarter in sales dollars due to continued shift towards alternative capital acquisition models.
    		$26.1 million-25.8%——
    U.S. revenue
    Growth led by U.S. Spine, neuromonitoring, and trauma businesses, partially offset by declines in Nevro and enabling technologies.
    		$619.1 million3%——
    International revenue
    Growth seen across the board due to focus on deeper penetration within existing markets.
    Constant currency growth: 16.2%
    		$170.5 million18%——
    U.S. Spine
    Strong procedural volumes, competitive recruiting, pull-through from robotics, and product launches continue to fuel growth. Double-digit growth seen in SABLE, ELSA, HEDRON C, Reline C, and Reline Open.
    		—7%——
    International Spine
    Led by mid-teens growth across key EMEA markets (Italy, Spain, Poland) and broad-based APAC growth. Latin America growth mainly from Brazil and Colombia.
    Constant currency growth: 12%
    		—14%——
    Trauma
    Driving share growth in core trauma line, returning to normal supply in precise product line, and attracting top sales talent.
    		—31%18%—
    Neuromonitoring
    Achieved 4 straight quarters of double-digit sales growth.
    		—over 30%——
    Nevro
    Essentially flat to Q1, consistent with expectations, with a sequential sales decline from Q1 to Q2 2026.
    		—-14.3%-$1.7 million sequential decline—

    Operational metrics

    31
    Total Revenue Growth
    5.9%YoY
    Q2 FY26
    Total Revenue Growth
    5.6%YoY
    Q2 FY26
    Non-GAAP Net Income
    $184.3 million
    Q2 FY26
    Non-GAAP EPS Growth
    55.8%YoY
    Q2 FY26
    Base Business Globus Sales
    $708.6 million
    Q2 FY26

    Excluding Nevro.

    Base Business Globus Sales Growth
    8.9%YoY
    Q2 FY26

    Excluding Nevro.

    Base Business Globus Sales Growth
    9%YoY
    Q2 FY26

    Excluding Nevro, with same number of selling days in U.S. and international, 1 less in Japan.

    Base Business Globus Sales Growth
    8.5%YoY
    Q2 FY26

    Excluding Nevro.

    GAAP Gross Profit Margin
    66.8%vs 63.3% in prior year
    Q2 FY26
    Adjusted Gross Profit Margin
    69.4%vs 67.4% in prior year
    Q2 FY26

    Seventh straight quarter of expansion.

    Net Interest Income
    $7.1 millionvs $0.7 million in prior year
    Q2 FY26

    Favorable change of $6.4 million driven by an increase in interest income from cash reserves.

    GAAP Tax Rate
    20.1%vs -7.8% in prior year
    Q2 FY26

    Prior year quarter GAAP tax rate was impacted by a $34.8 million one-time tax benefit.

    Non-GAAP Tax Rate
    20.9%vs 25% in prior year
    Q2 FY26

    Favorably impacted by stock option exercise benefits.

    One-time Tax Benefit
    $34.8 million
    Q2 FY25

    Primarily driven by the discrete nature of the release of a valuation allowance against previously reserved R&D credits acquired in the NuVasive merger.

    Share Repurchases
    $136.1 million
    Q2 FY26
    Share Repurchases
    $110 million
    FY25

    Under a $500 million share repurchase program announced in Q2 2025.

    Share Repurchase Authorization Remaining
    $253.9 million
    as of June 30, 2026

    Under the current share repurchase program.

    Total Share Repurchases
    $747 million
    since September 2023

    Since closing the NuVasive merger.

    Share Repurchases as % of Free Cash Flow
    40%
    YTD FY26
    Capital Expenditures
    $72.8 million
    H1 FY26
    R&D Expense
    $36.3 millionvs $40 million in prior year
    Q2 FY26
    SG&A Expenses
    $286.8 millionvs $303.6 million in prior year
    Q2 FY26
    Nevro Adjusted EBITDA Margin
    22.4%vs -1.4% in prior year quarter
    Q2 FY26

    Highlighting lasting and sustainable impact of cost control actions taken in 2025.

    Base Business Globus Adjusted EBITDA Margin
    36.9%vs 32.3% in prior year quarter
    Q2 FY26
    Total Company Adjusted EBITDA Margin
    35.4%vs 28% in prior year quarter
    Q2 FY26
    EGPS and e-hub Units Deployed Growth
    11%sequential
    Q2 FY26

    Validating demand for Excelsius technology despite revenue decline.

    Robotic Procedures Performed
    137,000
    cumulative

    Utilizing Excelsius technology.

    Competitive Hires
    doublevs Q1
    Q2 FY26

    Strategic focus on competitive recruiting for growth.

    International Spine Business Growth
    14.5%YoY
    H1 FY26
    International Spine Business Growth
    10.6%YoY
    H1 FY26
    Cash, Cash Equivalents and Marketable Securities
    $840.5 millionvs $629.1 million at December 31, 2025
    as of June 30, 2026

    Increase driven by operating cash flow, partially offset by share repurchases and capital expenditures.

    Industry KPIs

    6
    MetricValueDetails
    New product launch rampAUTOBAHN hip fastener, TENSOR suture button system, Reline 1
    Procedure volume growth137,000procedures
    FCF conversion leverage guidance40%%
    Installed base system placements11%%
    Segment franchise organic growth7%%
    Sales force commercial capacity builddoubleamount

    Product announcements

    3
    ProductTypeDetails
    AUTOBAHN hip fastenerlaunch
    TENSOR suture button systemlaunch
    Reline 1launch

    Risks & headwinds

    3
    Nevro sales declineQ2 FY26

    Q2 revenue declined 14.3% YoY; $1.7 million sequential sales decline from Q1 to Q2 2026.

    Mitigation: Rapidly integrating Nevro into Globus business model, focusing on sales force recruiting and training, expecting trial volume recovery by year-end 2026.

    Enabling Technologies revenue declineQ2 FY26

    Q2 revenue declined 25.8% as-reported to $26.1 million.

    Mitigation: Shifting towards greater flexibility in capital acquisition models (leasing/rental) to drive long-term implant pull-through, disposables, and service revenue.

    Tougher U.S. Spine comps in H2H2 FY26

    U.S. Spine growth of 7% in Q2 stepped down from prior quarters.

    Mitigation: Maintaining confidence in the U.S. Spine business, continuing competitive recruiting, leveraging robotics pull-through, and new product launches to fuel growth.

    What to watch in Q3 FY26

    5

    Nevro Trial Volume Recovery

    Q3 and Q4 FY26
    Currentflat to Q1, $1.7M sequential decline
    Targetimprovement, return to historical levels

    Why it matters

    Crucial for Nevro's return to growth and overall neuromodulation segment performance.

    Our near-term goals are focused around driving trial volumes higher, where we expect to see improvement as we move through the back half of the year with the goal of returning to historical trial levels late in Q4.

    Q&A highlights

    6

    Competitors seeing softness in Europe due to transient headwinds; did Globus experience this, and is a seasonally soft Q3 expected?

    Keith Pfeil stated that performance across EMEA was in line with expectations, with double-digit growth in Q2. Kyle Klin added that they expect the international business to be a strong grower in H2.

    “Generally speaking, our performance across the was pretty in line with expectations. Countries go up and down from quarter-to-quarter. But when I look at EMEA, I look at it in the aggregate and what I see is a business that's moving forward.”

    asked by Ross (Wells Fargo) · answered by Keith Pfeil

    1 min read5 chapters

    Detailed Narrative

    01

    Strategic Focus and Integration

    Globus Medical has more than tripled its top line and earnings since 2022, leveraging the NuVasive merger and Nevro acquisition. The company's strategy emphasizes organic growth, expanding commercial distribution, and disciplined financial execution to drive earnings accretion and increased returns on capital. This approach aims to deliver long-term value creation for shareholders.

    02

    Product Development and Innovation

    The company has launched over 25 products in the past 36 months and currently has over 60 projects in process, demonstrating a strong commitment to organic product development. Investment in the in-house development team is expanding to manage increasing project complexity and accelerate the launch of new products that address unmet clinical needs across spine, trauma, and neuromodulation.

    03

    Enabling Technologies Strategy Shift

    Globus Medical is transitioning its capital acquisition model for Enabling Technologies (EGPS and e-hub units) towards greater flexibility, including leasing and rental options. While this shift led to a revenue decline in Q2, deployed units grew 11% sequentially and 25% year-over-year, validating demand. The long-term goal is to drive pull-through revenue from implant technology, disposables, and services.

    04

    Nevro Integration and Outlook

    Following significant structural changes in 2025, the integration of Nevro is on track. The company expects trial volume recovery by year-end 2026, with a goal of returning to historical trial levels in late Q4. Despite a Q2 revenue decline, Nevro's adjusted EBITDA margin expanded sequentially from 11.8% in Q1 to 22.4% in Q2, reflecting the positive impact of cost control actions.

    05

    Surgical Intelligence Ecosystem Development

    Globus Medical is developing a surgical intelligence ecosystem that integrates data, analytics, and AI to enhance patient selection, proceduralization of surgical techniques, and overall surgical outcomes. This initiative combines implants, instruments, and enabling technology with surgeon-centric design and planning processes, aiming for continuous learning and improvement in spine procedures.

    AI-generated summary of the company’s earnings call. Not investment advice.