Globus Medical (GMED) Q4 2024 earnings summary

Executive summary

• Achieved record full-year revenue of $2.52B, up 61% year-over-year, with Q4 sales of $657.3M, up 6.6%, driven by strong NuVasive integration and robust new product launches.

• Non-GAAP EPS reached a record $3.04 for the year, up 31%, and $0.84 for Q4, up 40% year-over-year.

• Free cash flow hit an all-time high of $405.2M for the year and $193.2M for Q4, supporting a return to debt-free status in Q1 2025.

• Launched 18 new products in 2024, including five in Q4, and achieved record placements in enabling technology and robotics.

• Announced acquisition of Nevro Corp for $250M to expand into the neuromodulation market, expected to close late Q2 2025.

Financial highlights

• Full-year revenue: $2.52B, up 60.6% as reported and 61.1% constant currency; pro forma sales growth 5.2% as reported.

• Net income: $103M (GAAP), $419.6M (non-GAAP); non-GAAP EPS $3.04, up 31.2% despite 20.3% higher share count.

• Q4 revenue: $657.3M, up 6.6% as reported; Q4 net income $26.5M (GAAP), $117.4M (non-GAAP); Q4 non-GAAP EPS $0.84, up 40.1%.

• Adjusted EBITDA: 29.2% for the year, 30% for Q4.

• Free cash flow: $405.2M for the year, $193.2M for Q4; cash and equivalents: $956.2M at year-end, up $363M.

Outlook and guidance

• 2025 standalone revenue guidance: $2.66B–$2.69B; non-GAAP EPS $3.40–$3.50.

• With Nevro acquisition (expected close late Q2 2025): 2025 net sales $2.8B–$2.9B; non-GAAP EPS $3.10–$3.40.

• Nevro expected to be accretive to earnings in the second year.

• Adjusted gross margin expected to improve to 67.5%–68.5% in 2025.

• R&D expense expected at 6%–7% of net sales; SG&A at 37.5%–38.5%; capital expenditures projected at 5%–6% of sales.