Globus Medical (GMED) Q4 2024 earnings summary

Executive summary

• Achieved record full-year revenue of $2.52B, up 61% year-over-year, with strong sales growth and profitability following the NuVasive merger and robust new product launches in 2024.

• Worldwide net sales for Q4 2024 were $657.3M, up 6.6% year-over-year; international net sales grew 79.9% for the year.

• Launched 18 new products in 2024, including five in Q4, strengthening innovation and market expansion.

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

• Record operating cash flow and disciplined cost management contributed to improved profitability.

Financial highlights

• Full-year non-GAAP EPS reached $3.04, up 31% year-over-year, despite a 20% increase in diluted shares.

• Free cash flow hit a record $405.2M for the year, up 145%, and $193M in Q4, up 136% year-over-year.

• Q4 revenue was $657M, up 7% year-over-year; Q4 non-GAAP EPS was $0.84, up 40%.

• Net income for 2024 was $103M, with $281M in pre-tax M&A and restructuring costs; non-GAAP net income was $420M.

• Adjusted EBITDA margin was 29.2% for the year and 30% in Q4.

Outlook and guidance

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

• With Nevro acquisition, 2025 net sales expected at $2.8B–$2.9B; non-GAAP EPS: $3.10–$3.40.

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

• Adjusted gross margin expected to improve to 67.5%–68.5% in 2025, with long-term goal of mid-70s.

• R&D expense projected at 6%–7% of net sales; SG&A at 37.5%–38.5% for base business.