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% versus prior year.

• Non-GAAP EPS reached $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 $405M for the year and $193M for Q4, enabling a return to debt-free status in Q1 2025.

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

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

Financial highlights

• Full-year revenue grew 60.6% as reported and 61.1% constant currency; pro forma sales growth was 5.2%.

• Net income was $103M, with $281.4M in pre-tax M&A and restructuring costs; non-GAAP net income was $419.6M.

• Q4 revenue was $657.3M, up 6.6% as reported; Q4 net income was $26.5M, up 76.3% year-over-year.

• Q4 adjusted EBITDA was 30%; full-year adjusted EBITDA was 29.2%.

• Q4 GAAP gross profit margin was 57.2%, adjusted gross profit margin was 67.1%.

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 for 2025 expected at 67.5%–68.5%.

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