I also want to take a moment to thank Dan Scavilla for his contributions to Globus, as well as his guidance and mentorship to me over the past several years. The growth and evolution of the company remains second to none and highlights the strategic focus of living its mission. In short, I want everyone joining us today to know that Globus has many opportunities in the pipeline to fuel future organic growth and remain confident in our position within the market. At a top level, Globus delivered Q2 sales of $745 million and non-GAAP EPS of $0.86 per share, growing 18.4% and 14.1% respectively over the prior year quarter.
Free cash flow was $31.3 million, growing 18% despite the impact of the Nevro acquisition, as well as higher CapEx spending. Our base business delivered $651 million in revenue during Q2, growing 3.3% as reported and 4.9% day adjusted versus the prior year quarter, with one less selling day in the U.S. We will continue to ramp up our supply as we enter the back half of our year to accommodate for anticipated growth, including the normal Q4 seasonal bump. Every week in Q2 had shown growth versus the same week in the prior year, and we are now at 19 consecutive weeks of U.S.
spine implant growth, which includes a strong July and a great start to August. All of these factors are key to growth as we continue on the basics of launching new products, growing our sales force, and driving robotic pull-through. As Keith mentioned in his prior comments, on April 3rd, 2025, we closed our acquisition of Nevro Inc. Our Q2 2025 results include three months of legacy Globus financial information and three months of Nevro, reflective of the April 3rd acquisition closing date.
| Metric | Period | Current guidance |
|---|---|---|
| Total revenue | FY2025 | $2.8B-$2.9B (reiterated) |
| Non-GAAP EPS | FY2025 | $3.00-$3.30 (reiterated) |
| Nevro revenue | FY2025 | declined to break out; comfortable within overall range (withheld) |
| Metric | YoY | Note |
|---|---|---|
| Total Q2 revenue | +18.4% as reported (+17.6% constant currency) | Above-market U.S. spine growth, enabling tech bounce back, and Nevro contribution |
| Base business revenue | +3.3% as reported (+4.9% day-adjusted) | U.S. spine growth offset by fewer selling days in U.S. and Japan |
| U.S. spine | +5.7% as reported (+7.4% day-adjusted) | Set/inventory availability, product conversions, competitive rep hiring, and surgeon engagement |
| Enabling Technologies | -4.4% as reported (+58.5% sequential) | Closing Q1 deals drove sequential bounce back, though extended deal timelines persisted |
| Legacy Globus musculoskeletal | +3.8% as reported | Driven by U.S. spine within the legacy portfolio |
| Non-GAAP EPS | +14.1% to $0.86 | Record EPS on sales growth and synergy execution |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Leadership transition | Dan Scavilla as CEO | Keith Pfeil promoted to CEO effective July 18, 2025 with Kyle Kline as CFO | Transition |
| Enabling Technologies deal timelines | Soft Q1 with extended close timelines | Sequential bounce back but still elongated timelines; majority of robots still sold outright | Improving |
| Nevro integration | Just beginning cost and efficiency programs | Near EBITDA breakeven; large headcount actions taken at end of Q2; sales force energized | Early progress |
| Manufacturing in-sourcing to mid-70s gross margin | NuVasive synergy plan of $170M, year-three gross profit expansion | Inventory on balance sheet to flow through P&L in 2026, driving expanded gross profitability | On track |