Adjusted EBITDA margin for legacy Globus was 32.3%, up 210 basis points from prior year quarter; Nevro finished near breakeven adjusted EBITDA.
Free cash flow was $31.3 million, growing 18% despite higher CapEx and acquisition impacts; operating cash flow was $77.9 million.
GAAP gross profit improved to 63.3% from 55.2% prior year, driven by lower inventory step-up amortization; adjusted gross profit was 67.4%.
Globus Medical reported Q2 2025 revenue of $745.3 million, an 18.4% increase year-over-year, including $94.6 million from the Nevro acquisition.
Legacy Globus business revenue grew 3.3% as reported and 4.9% on a day-adjusted basis, driven primarily by U.S. Spine and trauma segments.
Non-GAAP EPS grew 14.1% to $0.86, with GAAP EPS at $1.49, boosted by a $110.6 million bargain purchase gain from Nevro acquisition.
R&D expenses decreased to 5.4% of sales from 6%, reflecting synergy capture and lower headcount in legacy Globus.
SG&A expenses increased to 40.7% of sales due to higher sales compensation, third-party spend, and employee benefits, partially offset by lower bad debt.
Adjusted net income for Q2 was $20.5 million or $0.26 per share, compared to $19.3 million or $0.25 per share in the prior year quarter.
Net debt increased to $1.9 billion at June 30, 2025, primarily due to $100 million cash paid to terminate the Rotech acquisition, with operating cash flow improving to $38 million in Q2.
Second quarter 2025 revenue was $682 million, up 3.3% year-over-year, with adjusted EBITDA of $96.6 million representing a 14.2% margin, improved from 13.8% in Q2 2024.
Year-to-date revenue reached $1.36 billion, a 4.5% increase over the first half of 2024, driven by strong growth in sleep, ostomy, and urology categories.
Dafinchi