Globus Medical (GMED) investor relations material

Executive summary

• Q2 2026 revenue reached $789.6 million, up 5.9% year-over-year, with U.S. sales up 3% and international sales up 18%, driven by strong U.S. and international spine growth and robust trauma performance.

• Fully diluted non-GAAP EPS was $1.34, up 55.8% year-over-year, with adjusted EBITDA margin at 35.4%, a 740 basis point improvement.

• GAAP net income was $151.6 million ($1.10 per share), down from $202.8 million in Q2 2025 due to the absence of a prior-year bargain purchase gain.

• Share repurchases totaled $136 million for 1.6 million shares in Q2, with $253.9 million authorization remaining.

• Integration of NuVasive and Nevro continues, with focus on organic growth, product launches, and expanding commercial reach.

Financial highlights

• Adjusted gross profit margin improved to 69.4%, up 200 basis points year-over-year.

• Operating income rose to $182.4 million, and adjusted EBITDA was $279.8 million (35.4% of net sales).

• Operating cash flow for H1 2026 was $412.1 million; cash, cash equivalents, and marketable securities stood at $840.5 million as of June 30, 2026.

• R&D expenses were $36.3 million (4.6% of sales), and SG&A was $286.8 million (36.3% of sales), both down as a percentage of sales.

• No outstanding borrowings under the $400 million credit facility as of June 30, 2026.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $3.18–$3.22 billion, implying 8.2%–9.6% growth over 2025.

• Non-GAAP EPS guidance raised to $4.95–$5.05, reflecting 24.4%–26.9% growth.

• Adjusted gross margin expected in the 69%–70% range for 2026, with a path to mid-70s in the next 1–2 years.

• Non-GAAP tax rate guidance lowered to 23%–24%.

• Management expects continued growth in Musculoskeletal Solutions and Enabling Technologies, with international expansion as a key driver.