Globus Medical — Second Quarter 2026 Earnings Summary

Financial Performance

• Worldwide net sales for the quarter ended June 30, 2026, were $789.6 million, an increase of 5.9% (5.6% on a constant currency basis) compared to the prior year.
• U.S. net sales increased 3.0%, while International net sales increased 18.0% (16.2% constant currency).
• GAAP net income was $151.6 million, a 25.3% decrease year-over-year, primarily due to a $110.5 million bargain purchase gain recognized in the prior year quarter related to the Nevro acquisition.
• GAAP diluted EPS was $1.10, a 26.2% decrease from $1.49 in the prior year quarter.
• Non-GAAP diluted EPS was $1.34, a 55.8% increase from $0.86 in the prior year quarter.
• Non-GAAP net income was $184.3 million.
• Adjusted EBITDA was $279.8 million, compared to $208.7 million in the prior year quarter.
• Adjusted EBITDA as a percentage of net sales was 35.4%, up from 28.0% in the prior year.
• Adjusted gross profit was $548.2 million, with an adjusted gross margin of 69.4%, an expansion of 200 basis points from the prior year.
• Net cash provided by operating activities for the six months ended June 30, 2026, was $412.1 million.
• Free cash flow for the six months ended June 30, 2026, was $339.3 million.
• Cash, cash equivalents, and marketable securities totaled $840.5 million as of June 30, 2026.
• Deferred revenue was $27.98 million as of June 30, 2026.

Guidance and Future Outlook

• Reaffirmed full-year 2026 revenue guidance of $3.18 billion to $3.22 billion.
• Updated full-year 2026 non-GAAP diluted EPS guidance to $4.95 to $5.05, increasing from the previous range of $4.70 to $4.80.

Business Segments and Product Lines

• US Spine grew 7% as-reported, marking the fifth straight quarter of above-market revenue growth.
• International Spine grew 14% as-reported (12% constant currency).
• Base business revenue growth (excluding Nevro) was 9%.
• Musculoskeletal Solutions net sales were $763.5 million, while Enabling Technologies net sales were $26.1 million.
• The company reported share gains across a majority of its underlying businesses.

Market and Competitive Landscape

• The company noted continued momentum and share gains across underlying businesses.
• US Spine performance was described as above-market revenue growth for five consecutive quarters.
• Management highlighted the company's exclusive selling model and depth of product portfolio as competitive advantages.

Risks and Challenges

• The press release includes standard forward-looking statement risks regarding health epidemics, regulatory compliance, intellectual property, and integration of acquired businesses, but no specific new risks or challenges unique to the quarter were detailed beyond the prior year's bargain purchase gain impact.

Management Commentary and Tone

• Keith Pfeil, President and CEO, stated momentum continued into the second quarter with 6% overall revenue growth, attributing success to share gains and the company's ecosystem approach to surgical intelligence.
• Kyle Kline, CFO, highlighted record second-quarter non-GAAP net income and EPS driven by disciplined execution, margin expansion, operating leverage, and synergy realization.
• Management expressed confidence in delivering sustained earnings growth and enhanced shareholder returns.

Analyst Questions and Answers

• No specific analyst questions and answers are included in the provided text.

Other Key Points

• The company acquired Nevro Corp. in 2025, and a $110.5 million bargain purchase gain related to this acquisition was recognized in the prior year quarter, significantly impacting year-over-year GAAP comparisons.
• The company held a conference call to discuss results on August 6, 2026.
• Non-GAAP measures used include Adjusted EBITDA, Non-GAAP Net Income, Non-GAAP Diluted EPS, Non-GAAP Gross Profit, and Free Cash Flow.