Q2 2025 Bioventus Inc Earnings Call
Carly: Thank you for standing by. My name is Carly, and I will be your conference operator today. At this time, I would like to welcome everyone to the Bioventus Inc. second quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Dave Crawford, Vice President, Investor Relations. Please go ahead.
Thank you for standing by. My name is Carli and I will be your conference operator. Today at this time I would like to welcome everyone to the bioventus Inc. Second quarter 2025 earnings conference call all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again,
thank you. I would now like to turn the call over to Dave. Crawford, vice president investor relations. Please go ahead.
Dave Crawford: Thanks, Carly. Good morning, everyone. Thanks for joining us. It's my pleasure to welcome you to the Bioventus 2025 second quarter earnings conference call. With me this morning are Rob Claypoole, President, CEO, and Mark Singleton, Senior Vice President and CFO. Rob will begin his remarks with an update on our business and our 2025 priorities. Mark will then review our second quarter results and discuss our outlook, including our 2025 financial guidance. We will finish the call with Q&A. The presentation for today's call is available on the investors section of our website, bioventus.com.
Thanks, Carly. Good morning everyone and thanks for joining us. It's my pleasure to welcome you to the bioventus 2025 second quarter earnings conference call.
With me, this morning are Rob playful, president CEO and Mark Singleton senior vice president and CFO.
Bravo, again, his remarks with an update on our business, and our 2025 priorities, then, Mark will review our second quarter results and discuss our Outlook, including our 2025 Financial guidance.
We will finish the call with Q&A.
Dave Crawford: Before we begin, I would like to remind everyone that our remarks today contain forward-looking statements that are based on the current market expectations of management and involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated, including the risks and uncertainties described in the company's filings with the Securities and Exchange Commission, including item 1A risk factors of the company's Form 10-K for the year ended December 31, 2024. As such factors may be updated from time to time in the company's other filings made with the Securities and Exchange Commission. We are cautioned not to place undue reliance on any forward-looking statements, which speak only as to the date made.
A presentation for today's call is available on the investor section of our website bioventus.com.
But before we begin, I would like to remind everyone that our remarks today contain forward-looking statements that are based on the current market. Expectations of management and involving inherent risks and uncertainties that could cause actual results to differ materially from those indicated, including the risks and uncertainties described in the company's filings with the Securities and Exchange Commission. Including item 1A risk factors of the companies form 10K for the year. Ended December 31st 2024
As such factors may be updated from time to time in the company's other filings made with the Securities and Exchange Commission.
Dave Crawford: Although the company may voluntarily do so from time to time, it undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable securities laws. This call will also include reference to certain financial measures that are not calculated in accordance with U.S. generally accepted accounting principles or GAAP. We generally refer to these as non-GAAP or adjusted financial measures. Important disclosures about and definitions and reconciliations of those non-GAAP financial measures to the most comparable measures calculated and presented in accordance with GAAP are available in the earnings press release on the investors section of our website at bioventus.com. I will now turn the call over to Rob.
Your caution not to place. Undue Reliance on any forward-looking statements which speak only as of the date made, although the company made a voluntarily do so from time to time and undertakes, no commitment to update or revise, the forward-looking statements whether as a result of new information future events or otherwise except as required by applicable. Securities laws.
This call also include reference to certain Financial measures that are not calculated in Parts. With us generally accepted accounting principles for Gap.
Rob Claypoole: Thank you, Dave. Good morning, everyone, and thanks for joining our call today. I am pleased to report that Bioventus delivered another quarter of solid financial results, driven by our team's disciplined execution. As we move into the second half of the year, we are well positioned to accelerate revenue growth, profitability, and cash flow as we help patients recover so they can live life to the fullest. Second quarter revenue of $148 million was in line with our expectations and reflected the strength of our portfolio's diversity as we drove above market organic growth of 6%, even with challenging prior year comparisons and pain treatments. Adjusted earnings of $0.21 per share increased 31% compared to the prior year, while our adjusted EBITDA margin of 23% for the quarter exemplifies the stability of our pure leading gross margin and disciplined investment in key growth strategies.
We generally refer to these as non-gaap or adjusted Financial measures is important disclosures about and definitions and reconciliations. But those non-gaap financial measures to the most comparable measures calculated and presented in accordance, with gaap are available in the earnings press release on the investor section of our website at bioventus.com. And now, I will turn the call over to Rob
Thank you, Dave. Good morning, everyone, and thanks for joining our call. Today, I'm pleased to report that Bioventus delivered another quarter of solid financial results, driven by our team's disciplined execution.
As we move into the second half of the year, we are well, positioned to accelerate Revenue growth profitability and cash flow. As we help patients recover, so they can live life to the fullest.
Second quarter of Revenue of 148 million was in line with our expectations and reflected the strength of our portfolio's diversity. As we drove above Market organic growth of 6%, even with challenging prior year comparisons and pain treatments,
Rob Claypoole: As a result of a solid first half and strong outlook for the remainder of the year, we are reiterating our full year revenue, adjusted EBITDA, and adjusted earnings per share guidance. Now let's take a closer look at our second quarter highlights and provide an update on our business across the three priorities I introduced at the start of the year: driving above market revenue growth, continuing to expand our profitability, and accelerating free cash flow generation. With respect to our first priority, driving above market revenue growth, let me share a few highlights, starting with our surgical solutions business, where we delivered strong double-digit growth in Ultrasonics. We are well positioned for sustained above market revenue growth as we continue to broaden awareness in the market of our Ultrasonics value proposition of enhanced precision and control for surgeons, reduced patient blood loss, and increased operating room efficiency.
Adjusted earnings of 21 cents, per share, increased 31% compared to the prior year while our adjusted Evita margin of 23% for the quarter. Exemplified the stability of our Pure leading gross margin and disciplined investment in key growth strategies.
As a result of a solid first half, and strong outlook for the remainder of the year, we are reiterating our full year of Revenue adjusted, Evita and adjusted earnings per share guidance.
Now, let's take a closer look at our second quarter highlights and provide an update on our business across the 3. Priorities, I introduced at the start of the year,
Driving above Market Revenue growth.
Continuing to expand our profitability and accelerating free cash flow generation.
With respect to our first priority driving above Market Revenue growth, let me share a few highlights. Starting with our Surgical Solutions business, where we delivered strong double-digit growth and Ultrasonics.
We are well positioned for sustained above Market Revenue growth, as we continue to broaden awareness in the market of our ultrasonic value proposition of enhanced precision and control. For surgeons reduced patient, blood loss and increased operating room efficiency.
Rob Claypoole: Switching to our restorative therapies business, Exogen accelerated and achieved double-digit growth for the quarter. This performance validates our approach to drive success across all of our product categories at Bioventus. Tighter focus, the right strategy, targeted investments, and disciplined commercial execution, which we believe will enable us to deliver strong above market growth. In our pain treatments business, as expected, growth temporarily slowed as a result of difficult comparisons to the prior year period. In the second half of this year, we expect pain treatments growth to accelerate as comparisons normalize, and we drive traction with our focused strategy on large accounts, including IDNs. Powered by DUROLANE, we have a solid platform for sustained above market growth in HA with our clinical differentiation, dedicated commercial team, strength about private payer coverage, and significant opportunities for geographic expansion.
Accelerated and achieved double-digit growth for the quarter. This performance validates our approach to drive success across all of our product categories at bioventus fighter Focus, the right strategy, targeted Investments, and disciplined commercial execution, which we believe will enable us to deliver strong above market growth.
And in our pain treatments business as expected growth temporarily slowed as a result of difficult comparisons to the prior year period. In the second half of this year, we expect pain treatments growth to accelerate as comparisons normalized. And we drive traction with our focused strategy, on large accounts, including idms
Rob Claypoole: Let me take a moment to discuss a key development within our pain treatment business: our recent 510K clearance of both StimTrial and Talisman for peripheral nerve stimulation, or PNS, for the treatment of chronic peripheral pain. In many cases, patients suffer from debilitating chronic pain that limits their life or work activities on a daily basis. This therapy uses PNS products to deliver electrical pulses to specific peripheral nerves to provide non-opioid relief from chronic pain. The clearance of both StimTrial and Talisman represents a very attractive growth opportunity for Bioventus as we look to expand aggressively in the fast-growing PNS market, which is currently estimated to be growing above 20% annually in the U.S., with revenue expected to exceed $500 million by 2029.
Powered by Durolane, we have a solid platform for sustained above-market growth in HA, with our clinical differentiation, dedicated commercial team strength, private payer coverage, and significant opportunities for geographic expansion.
Let me take a moment to discuss a key development. Within our pain treatment business, our recent 5, 10K clearance, for of both stem trial, and Talisman for peripheral nerve, simulation or pns for the treatment of chronic peripheral pain.
In many cases, patients suffer from debilitating, chronic pain.
That limits their life or work activities on a daily basis.
This therapy uses pns products to deliver electrical pulses to specific peripheral nerves to provide non-opioid relief from chronic pain.
Rob Claypoole: With an expected total addressable market of approximately $2 billion, this represents an exciting expansion opportunity for Bioventus to advance non-opioid minimally invasive solutions for chronic pain management. For those of you who are unfamiliar with our PNS business, our focus until now has centered on our R&D efforts to bring this new technology to market. We have had limited investment and commercial focus for this business, with only a few million dollars in annual revenue from its legacy product offering. With StimTrial, we bring to market our first-ever trial lead designed to allow physicians the ability to evaluate a patient's response to PNS therapy. The lack of a trial lead in our portfolio has significantly limited adoption by physicians historically because physicians often prefer to validate the effectiveness of the treatment before considering a permanent implant, and because a trial assessment is required by some payers for reimbursement.
The clearance of both stem trial and Talisman represents a very attractive growth opportunity for bioventus. As we look to expand aggressively in the fast. Growing pns Market, which is currently estimated to be growing above 20% annually. In the US with Revenue, expected to exceed 500 million by 2029
With an expected total addressable Market of approximately 2 billion dollars, this represents an exciting expansion opportunity for biovent to advance non-opioid minimally, invasive solutions for chronic pain management.
For those of you who are unfamiliar with our pns business, our focused until now has centered on our R&D efforts to bring this new technology to Market.
We've had limited investment and Commercial Focus for this business. With only a few million dollars in annual revenue from its Legacy product offering
With stim trial, we bring to Market, our first ever trial lead designed to allow Physicians the ability to evaluate a patient's response to pns therapy.
The lack of a trial lead in our portfolio has significantly limited adoption by physicians historically, because Physicians often prefer to validate the effectiveness of the treatment before considering a permanent implant.
And because a trial assessment is required by some payers for reimbursement.
Rob Claypoole: This is complemented by our new Talisman PNS system, which combines our patented electric field conduction technology with an integrated pulse generator to potentially reach deeper, larger nerves. This combination is designed to provide long-term relief from chronic nerve pain for patients, potentially increasing the number of patients who respond to neuromodulation therapy. From a physician's perspective, the increase in power allows for easier lead placement and potentially broadens addressable nerves. Our innovative technology also has a user-friendly interface for both clinicians and patients. This technology reflects our team's world-class R&D capabilities as we bring leapfrog innovation to the market. Over the past few years, we have had a small direct sales force for PNS, which we plan to invest in more over the second half of this year and going forward. We plan a limited commercial release of StimTrial and Talisman in select U.S.
And this is complemented by our new Talisman pmf system, which combines our patented electric field, conduction technology with an integrated pulse generator to potentially reach deeper larger nerves.
This combination is designed to provide long-term relief from chronic nerve pain. For patients, potentially increasing the number of patients who respond to neuromodulation therapy.
From a physician's perspective, the increase in power allows for easier lead placement and potentially broadens addressable nerves.
Our Innovative technology also has a user-friendly interface for both clinicians and patients.
This technology reflects our team's world-class R&D capabilities as we bring LeapFrog innovation to the market.
Over the past few years. We have had a small direct sales force for pns which we plan to invest in more over the second half of this year and going forward.
Rob Claypoole: markets starting in this third quarter, with a broader rollout expected in early 2026. For Bioventus, StimTrial and Talisman represent an opportunity to accelerate our growth rate as we see a path to generating an estimated $100 million or more of revenue. We expect the combination of our PNS portfolio with the double-digit growth of our market-leading Ultrasonics platform to continue to shift our Bioventus portfolio to higher growth and markets where we can sustainably grow our revenues at above market rates with differentiated proprietary technology platforms. Before I shift from discussing revenue growth, I'll mention that this was the seventh quarter in a row of at least mid-single-digit growth for Bioventus. While our aspiration and our expectation is much higher, this consistent performance demonstrates the stability and strength of our diverse portfolio.
We plan on a limited commercial release of Stem Trial and Talisman in select U.S. markets, starting in this third quarter.
With a broader role out. Expected in early 2026.
For bioventus stim, trial and Talisman represent an opportunity to accelerate our growth rate. As we see a path to generating an estimated $100 million or more of Revenue. And we expect the combination of our pns portfolio, with the double digit growth of our market-leading ultrasonic platform. To continue to shift our biovent portfolio to higher growth and markets where we can sustainably grow our revenues at above Market rates with differentiated proprietary technology platforms.
Before I before I shift from discussing Revenue growth, I'll mention that this was the seventh quarter in a row of at least mid single digit growth for bioventus.
And while our aspiration and our expectation is much higher. This consistent performance demonstrates the stability and strength of our diverse portfolio.
Rob Claypoole: Turning to our second focus area, expanding profitability, we continue to strongly believe that our pure leading gross margin, combined with acceleration of revenue growth in the second half of the year, will enable us to achieve 100 basis points of adjusted EBITDA margin expansion for the year, despite the negative impact from foreign exchange that Mark will discuss. With respect to our third focus area, as anticipated, we generated a significant acceleration in cash flow this quarter. We expect this performance to continue into the second half of the year as we benefit from our deleveraging, greater business efficiencies, and reduced extraordinary expenditures to nearly double cash flow from operations compared to the prior year.
Expanding profitability. We continue to strongly believe that our peer-leading gross margin combined with acceleration of Revenue growth in the second half of the year will enable us to achieve 100 basis points of adjusted Evita margin expansion for the year despite the negative impact from foreign exchange that Mark will discuss
And with respect to our third Focus area as anticipated, we generated a significant acceleration in cash flow, this quarter. We expect this performance to continue into the second half of the year as we benefit from our deleveraging greater business, efficiencies and reduced, extraordinary expenditures to nearly double cash flow from operations compared to the prior year.
Rob Claypoole: In conclusion, we made significant progress this quarter to deliver on our three priorities, and we achieved an important milestone with the 510K clearance of StimTrial and Talisman, which creates a very attractive long-term growth opportunity for Bioventus Inc.. I will also mention that we were recently recognized by U.S. News and World Report as one of the top 10 companies to work for in North Carolina. The combination of very positive employee engagement and improved business performance demonstrates the exciting advancement of our company and that with the right focus, prioritization, and disciplined execution, we will continue marching toward becoming a $1 billion high growth, high margin, high cash flow company that generates significant value for all of our stakeholders. Now I'll turn the call over to Mark Singleton.
In conclusion, we made significant progress, this quarter to deliver on our 3 Priority and we achieved an important Milestone with the 510k clearance of stem, trial and Talisman, which creates a very attractive long-term growth opportunity for bioventus.
I'll also mention that we were recently recognized by US News and World Report as 1 of the top 10 companies to work for in North Carolina.
The combination of very positive Employee Engagement and improved business performance, demonstrates the exciting advancement of our company. And that with the right focus prioritization and disciplined execution, we will continue marching toward becoming a 1 billion dollar, high growth, high margin, High cash flow company that generates significant value for all of our stakeholders. I'll turn
The call over to mark.
Mark Singleton: Thanks, Rob, and good morning, everyone. Let me begin by saying that I am pleased with our results and progress through the first half of the year as we work to constantly improve and strengthen our company and our performance. Turning to our headline result for the second quarter, revenue of $148 million was 2% lower than 2024, reflecting the impact of our advanced rehabilitation divestiture at the end of last year. Adjusting for the divestiture, organic growth was 6%, highlighted by strong performance across surgical solutions and restorative therapies. Adjusted EBITDA of nearly $34 million was $1 million higher than the prior year due to the divestiture and $1 million of foreign currency expense due to the U.S. dollar weakening. Similar to last quarter, the majority of this FX loss resulted from the settlement of payables on our balance sheet.
Thanks Rob and good morning everyone. Let me Begin by saying that I am pleased with our results and progress through the first half of the year as we work to constantly improve and our company and our performance.
Turning to our headline results. For the second quarter revenue of 148 million was 2% lower than 2024 reflecting the impact of our advanced rehabilitation that messager at the end of last year. Adjusting for the nesting. Organic growth was 6% highlighted by strong performance across Surgical Solutions and restorative therapies adjusted. EBA dive. Nearly 34 million was 1 million dollars higher than the prior year, due to the investor and 1 million dollars of foreign dictionary currency expense due to the US dollar weakening.
Mark Singleton: On a year-to-date basis, we have now absorbed more than $2 million in impacts from unplanned foreign currency exchange rate movements. Now let me provide some additional commentary on our quarterly revenue. Surgical solutions revenue grew by 11%, driven by strong double-digit growth in Ultrasonics. We are also encouraged by the acceleration in growth in Bone Graft Substitutes, which we expect to continue into the second half of the year as new distributors ramp up and existing ones continue to access new customers. In pain treatments, revenue increased 1% as we lacked challenging comparisons to the prior year period. Excluding these items, pain treatments grew an estimated 4% to 5%. Shifting to restorative therapies, the divestiture of advanced rehabilitation business resulted in a 32% decrease in revenue.
Similar to last quarter, the majority of this FX loss resulted from the settlement of payables, on our balance sheet.
On a year-to-date basis. We've now absorbed more than $2 million in impacts from unplanned foreign currency exchange rate movements.
Now, let me provide some additional commentary on our quarterly Revenue.
Surgical Solutions, Revenue, grew by 11% driven by strong double-digit growth and Ultrasonics.
We are also encouraged by the acceleration and growth in phone graph substitutes which we expect to continue into the second half of the year as new Distributors ramp up in existing ones continue to access new customers in pain. Pain treatments revenue of increased 1%. As we lacked challenging comparisons to the prior year period, excluding these items pain treatments, grew an estimated 4 to 5%.
Mark Singleton: Excluding the impact of the divestiture, organic growth was 11% as we accelerated growth in Exogen, which demonstrated improvement in commercial effectiveness and salesforce execution, along with the timing of international distributor orders. We are optimistic we will be able to deliver high single to double-digit organic growth for the remainder of the year. Finally, revenue from our international segment increased 12% compared to the prior year, while organic growth climbed 24%. Organic growth was fueled by double-digit growth across surgical solutions and pain treatments. Moving down the income statement, adjusted gross margin of 76% was 50 basis points higher than last year, driven by improved product mix. Adjusted total operating expenses declined $4 million as increased investment in our growth initiatives was more than offset by direct expense savings related to the advanced rehabilitation divestiture. Now for the additional detail on our bottom line financial metrics.
Shifting to restorative therapies, but a messenger of advanced rehabilitation business resulted in a 32%, decrease in Revenue.
Excluding the impact of the adventure organic growth was 11% as we accelerated growth and oxygen which demonstrated Improvement and Commercial Effectiveness in Salesforce execution, along with the timing of international distributor orders.
We are optimistic, we will be able to deliver High single to double digit, organic growth for the remainder of the year.
Finally revenue from our International segment. Increased 12% compared to the prior year. While organic growth climbs 24%, organic growth was fueled by double-digit growth across Surgical Solutions and pain treatments.
Moving down the income statement, adjusted gross margin of 76% was 50 basis points higher than last year, driven by improved product mix.
Adjusted total operating expenses declined, $4 million, as increased investment in our growth, initiatives was more than offset by direct expense savings related to the advanced rehabilitation deve.
Mark Singleton: Adjusted operating income increased $2 million compared to the prior year to $31 million. Adjusted net income of $18 million increased 45% compared to $13 million in the prior year. The growth is a result of our lower interest expense as we continue to pay down debt and benefit from the reduced employee equity-based compensation. Finally, adjusted earnings of $0.21 per share for the quarter, an increase of $0.05 compared to the prior year. Now shifting to the balance sheet and cash flow statement, we ended the quarter with $33 million in cash on hand and $341 million in outstanding debt, which included $5 million drawn on a revolving credit facility. Consistent with our planning assumptions, we realized a significant acceleration in cash flow. Cash flow from operations totaled $26 million, representing an increase of $11 million compared to the prior year.
Now for the additional detail, on our bottom line, Financial metrics, adjusted operating income increased 2 million dollars compared to the prior year to 31 million.
Adjusted net income of 18, million dollars increased 45% compared to 13 million in the prior year.
And finally adjusted earnings of 21 cents per share for the quarter and increase of 5 cents compared to the prior year.
Now shifting to the balance sheet and cash flow statement. We ended the quarter with 33 million in cash on hand and 341 million in outstanding debt.
Which included Millions drawn on a revolving credit facility?
Mark Singleton: The stronger cash flow is driven by lower interest expense and a reduction in one-time cash costs. We are confident in our ability to generate significant cash from operations for the remainder of the year, and we continue to expect cash from operations in 2025 to nearly double compared to 2024. Given the projected strong cash flow and increase in adjusted EBITDA, we expect our net leverage will fall to below two and a half times by the end of 2025. Our strong financial performance and growing cash flow enabled us to recently refinance our credit facility. We entered into a new $300 million five-year term loan agreement and $100 million revolving credit facility with our lenders. We realized several benefits as a result of this refinancing. First, we lowered the interest rate on our debt by 75 basis points, generating annual interest expense savings of over $2 million.
Consistent with our planning assumptions. We realized a significant acceleration in cash, flow cash flow from operations, total 26 million representing, an increase of 11 million, compared to the prior year. The stronger cash flow is driven by lower interest expense and a reduction in 1-time cash costs.
we are confident in our ability to generate significant cash from operations, for the remainder of the year and we continue to expect cash from operations in 2025, to nearly double compared to 2024
Given the projected strong cash flow and increase in adjusted debt, we expect our net leverage to fall to below 2.5 times by the end of 2025.
Our strong financial performance and growing cash flow enabled us to recently refinance our credit facility.
We entered into a new hundred million dollar 5 year Term Loan agreement and 100 million revolving, credit facility with our lenders.
Mark Singleton: Second, we improved our liquidity and financial flexibility by extending the maturity of our loan to 2030 and increasing the size of our revolver by $60 million. Finally, the annual amortization on the term loan was reduced from 10% to 5% per year for the tenor of the loan. This reduces our annual debt repayment by $15 million, enabling greater opportunity for capital deployment moving forward. To complete the refinancing, we initially drew $30 million on the new revolver and plan to use cash generated in the second half of the year to repay the borrowing on the revolver. By borrowing $30 million on a revolver, we reduced our net debt by an additional $11 million since the end of the second quarter. We believe these are all positive developments for our long-term strategy.
We realized several benefits as a result of this rep financing first, we lowered the interest rate on our debt, by 75 basis points. Generating annual interest expense Savings of over million dollars. Second, we improved our liquidity and financial flexibility by extending the maturity of our loan to 2030 an increase in the size of our Revolver, by 60 million.
Finally, the annual amortization on the term loan was reduced from 10% to 5% per year, for the tenor of the loan.
This reduces our annual debt repayment by 15 million enabling greater opportunity for Capital deployment moving forward.
To complete. The refinancing we initially Drew 30 million dollars on the new revolver and plan to use cash generated in the second half of the year to repay the borrowing on the revolver.
By borrowing $30 million on a revolver. We reduced our net debt by an additional 11 million.
Mark Singleton: Finally, as Rob mentioned, we are pleased to reaffirm our 2025 financial guidance, which we initially provided on March 11. This includes organic revenue growth of 6% to 8%, adjusted EBITDA of $112 million to $116 million, and EPS of $0.64 to $0.68. Our guidance incorporates the full year impact of $5 million of the current expectation of tariffs in 2025 and the year-to-date impact related to foreign exchange. We now expect the impact of current tariffs to be approximately $3 million in 2025. In addition, we have been successful in offsetting over $2 million related to foreign exchange expense through the first half of the year, and our guidance does not assume additional impact from the U.S. dollar fluctuation in the second half of the year.
Since the end of the second quarter, we believe these are all positive developments for our long-term strategy.
Finally, as Rob mentioned, we are pleased to reaffirm our 2025 Financial guidance which we initially provided on March 11th.
This includes organic Revenue growth of 6% to 8% adjusted. Ibaa of 112 million to 116 million, and EPS of 64 cents to 68 cents.
Our guidance incorporates the full year impact of 5 million of the current expectation of tariffs in 2025 and the year to date impact of related to Foreign Exchange.
Mark Singleton: In closing, we continue to execute our business plan and believe we are well positioned to create shareholder value through strengthening our growth, profitability, and cash flow over the coming quarters in the long term. Operator, please open the line for questions.
We now expect the impact of current tariffs to be approximately 3 million dollars in 2025. In addition we have been successfully in offsetting over $2 million related to Foreign Exchange expense through the first half of the year. And our guidance does not assume additional impact from the US dollar fluctuation in the second half of the year.
In closing, we continue to execute our business plan and believe we are well positioned to create shareholder value through strengthening our growth.
Profitability and cash flow over the coming, quarters in the long term.
Operator. Please open the line for questions.
Carly: At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. We will pause for just a moment to compile the Q&A roster. Your first question comes from Chase Knickerbocker with Craig-Hallum.
At this time, I would like to remind everyone in order to ask a question. Press star, then the number 1 on your telephone keypad, we'll pause for just a moment to compile the Q&A roster.
Your first question comes from Chase Knickerbocker with Craig helm.
Chase Knickerbocker: Good morning. Congrats on the solid quarter and thanks for the questions. I wanted to start on pain. Can you remind us what growth would have been year over year on an organic basis if not for that favorable rebate adjustment in Q2 2024? Along those same lines, can you kind of walk through the pluses and minuses in pain in the quarter? It sounds like DUROLANE volume was a plus. What was the volume growth there for DUROLANE? You had mentioned kind of price being a bit of a detractor. Was that for DUROLANE or was that the multi-shot portfolio? If you could just kind of give us your overall thoughts on kind of Jellison and Supartz and kind of the competitive environment for those products as well. Thanks.
Good morning. Uh, congrats on the solid quarter, and uh, thanks for the question.
I wanted to start on pain. Um, can you? I might have missed this, I'm sorry, but can you remind us the what growth would have been year-over-year on an organic basis? If not, for that favorable rebate adjustment in 2q, uh, 24 and then along those same lines, just can you kind of walk through the pluses and minuses and pain in the quarter? You know sounds like Durling volume was a plus uh what was the volume growth there for durlain and then you had mentioned kind of price being a bit of a distractor was that Ford durolane or was that the multi-shot portfolio. And then if you could just kind of
Products as well.
Thanks.
Mark Singleton: Thanks, Chase. That was a lot of questions, so we'll try to get through. I'll start with the first one and hand it over to Rob. I think when you look at our normalized growth, I talked about that in the script, and essentially it'd be 4% to 5% versus the 1% that we reported.
Thanks, chase. That was a, that was a lot of questions. So, we'll, uh, we'll try to get through. I'll start with the with the first, first 1 and, and hand it over to Rob. I think, when you look at our normalized growth, I talked about that in the script and essentially, to be, you know, 4 to 5% versus the 1%. That we reported
Rob Claypoole: Yeah, Chase, for the business overall, you know, feel free to elaborate on your question if this doesn't touch on it, but I think it's important just to keep in mind last year we grew about 4X the market. We shared in the beginning of this year, didn't expect that to continue, but really confident that we can grow above the market given the factors we've talked about before with our clinical differentiation, large dedicated commercial team, and our private payer contract strength. As it relates to the competition, this market's been competitive for a long time, and we've been driving above market growth in that environment and expect to continue to do so.
Rob Claypoole: In terms of across the portfolio, naturally, DUROLANE continues to be the strongest driver in that portfolio, both with our focus on that and our clinical differentiation, and also as the category continues to shift to single injection. Let us know which aspects of your question we didn't cover there.
Yeah, Chase for the business overall. And, you know, feel free to elaborate on your question if this doesn't touch on it. But, um, uh, I think it's important, just keep in mind last year, we grew about 4X, the market. And, uh, so we shared in the beginning of this year, didn't expect that to continue. But, uh, really confident that we can grow above the market, given the factors we talked about before, with our clinical differentiation large dedicated commercial team, and our private payer contract strength. And, um, as for as it relates to the competition, you know, as markets been competitive for a long time and we've been driving above market growth and that environment and expect to continue to do so. Um, so um, in terms of the cross the portfolio naturally Durling continues to be the strongest driver in that portfolio. Both with our focus on that and our clinical differentiation and also as the category continues to shift uh to single injection, um, let us know which aspects of your question uh we didn't cover there.
Chase Knickerbocker: Yeah, I threw a lot at you. Sorry. Maybe just specifically on DUROLANE volume growth, if you could elaborate what that was in the quarter. What I am trying to get at is in the back half of the year here, you will have to kind of step up organic growth on a year-over-year basis, even from kind of that 4% to 5% range. You know, call it certainly in the high single digits in pain, at least kind of in my model to get to the guidance. Can you just kind of elaborate on the drivers of that acceleration?
Yeah, through a lot of sorry, uh, maybe just specifically on, um, on durolane, volume growth. If you could elaborate, what that was in the quarter and then, basically, what I'm trying to get at is, um, in the back half of the Year here. Um, you will have to kind of Step Up um organic growth on a year-over-year basis. Even from kind of that for 4 to 5% range, you know, call it certainly in the high single digits and pain at least kind of in my model to get to the guidance. Can you just kind of elaborate on uh, kind of the drivers of that acceleration?
Mark Singleton: Yeah, Chase, when you think about volume, you know, we just talk about above market growth from our HA business. You think about the market growth from a single injection for DUROLANE, which I think is what you are asking about. We think that market grows in the mid-single digits. We were slightly above that for our performance in the second quarter. When you look at the back half of the year, I mean, really, I guess, from a pain, but overall perspective, when you normalize for the kind of the first half unfavorable compares, we are going to make up half of that, more than half of that growth just with the kind of the one-time compares. Then we get into the growth drivers in the back half is going to be HA and BGS.
Mark Singleton: I know your question is just about HA specifically, but we have a clear line of sight to some new account wins that have been coming on board over the last few months, and then some new IDN accounts as well that we are looking to accelerate in the back half of the year. We feel confident about it. Just remind you in that, you know, we, from an EBITDA perspective, again, not just about pain, but we have absorbed $5 million of cost and headwinds, between foreign exchange and our tariffs. That is all absorbed in the guidance and feel good about where we are.
Yeah, um, Chase when you think about volume, um, you know, we always talk about above Market um growth from our ha business. And you think about um, the the market growth from a single injection, for girl, in which I think is what you're asking about. So, you know, we think that market grows in the mid single digits, we were slightly above that for our performance and in second quarter, then when you look at the back half of the year, I mean really, you know, I guess, you know, from a pain but overall perspective, you know, when you, when you normalize for the, um, kind of the first half unfavorable Compares, you know, we're going to make up half of that, you know, more than half of that growth just with the kind of the 1 time Compares. And then we get into, you know, the growth drivers in the back apps going to be ha and bgs and I know your question is just about ha specifically, but you know, we have clear line of sight to some new account wins under the wind coming on board over the last uh, you know, few months and then some um, a new idea and um, accounts as well that we're looking to accelerate and and
Rob Claypoole: Chase, Rob, I will just elaborate on that a bit to specify a few points to your question. First, when you look at the first half of the year, we grew about 5.5%. To your point, when you look at our full year guidance, it implies an acceleration of about 300 bps in the second half versus the first half. As Mark touched on, more than half of that leap will come from just getting past the unfavorable comps that we have been talking about. Then also, as he touched on, we have BGS, both Bone Graft Substitutes and HA acceleration happening in the second half with new business that we already have visibility to in our pipeline. Just from that combination, let alone the momentum across the rest of our business, that is why we are confident in our revenue guidance for the back half.
Back after the year. So you know, we feel confident about it and just remind you in that, you know, we, you know, from an email perspective again, not just about paying, but, you know, we've absorbed 5 million dollars of of, uh, of cost and headwinds, you know, between foreign exchange and our tariffs. And so that's all absorbed in the guidance and and feel good about, um, where we are.
And Chase is Rob, I'll just elaborate on that a bit to to specify a few points uh, to your question. So first, uh, and when you look at the first half of the year, we grew about 5 and a half percent. And, and to your point, when you look at our full year guidance, it implies an acceleration of about 300 basis points and the second half versus the first half. And as Mark touched on more than half of that, at least half will come from just getting past the unfavorable comps that we've been talking about. Um, and then also, as he touched on, we have a bgs, both photograph substitute and ha acceleration, uh, happening in the second half with new business that we already have visibility to in our pipeline. Uh, so just from that combination, let alone the momentum across the rest of our business. That's why we're confident in our Revenue guidance for the back half.
Chase Knickerbocker: That was really helpful, guys. Thanks. Then maybe just one more on surgical. Can you, what was BGS growth in the quarter? Then kind of piecing all this commentary together with Ultrasonics, that continuing to do very well and BGS expected to accelerate. Should we be expecting accelerating year-over-year growth from surgical franchise as a whole as we look at the Q3 and Q4 year-over-year growth number compared to Q2?
That was really helpful, guys. Thanks. Uh, and then maybe just 1 more on surgical. Um, can you, you know, what was bgs growth in the quarter and then kind of piecing, all this commentary together, um, with Ultrasonics, you know, that continuing to do very well in bgs expected to accelerate. Um, should we be expecting, you know, accelerating year-over-year growth from surgical franchise as a whole. As we look at the Q3 and Q4 year-over-year growth number compared to Q2.
Mark Singleton: Yeah, Chase, I will just look at your BGS question that you had. I think, in the first quarter, we had really low single digits. When we look at the second quarter, we had pretty much a high single-digit growth in the second quarter for BGS. We would look for that business to continue to accelerate as we have been talking about since the beginning of the year and still on track for that. From an overall surgical portfolio as well, overall, we feel confident in the growth. Ultrasonics, great portfolio, as you have heard us talk about before. With BGS, accelerating it overall, we feel good about the second half of the year for that business.
The, the beginning of the year and um, still on track for that.
Rob Claypoole: Chase, I will also touch on this one, just to remind you that it is in line with expectations. We are seeing that nice acceleration in Bone Graft Substitutes that we expected, that we have been talking about for a couple of quarters now, and expect that to continue again in the second half as we bring new customers online. Ultrasonics, important to say, was another very strong quarter of growth. We have this world-class technology, and we believe we can change the standard of care in this space. We are seeing excellent capital placements again, which is a leading indicator of market development, as you know. We expect our momentum to continue in the second half and then ramp from there in 2026 and beyond. Expect surgical to continue to be a very attractive growth driver for us.
From an overall surgical, um, you know, portfolio as well. Um, overall we sell confident in the growth, I mean Ultrasonics, you know, great portfolio, as you've heard us talk about before. So, with the bgs, you know, accelerating and overall, um, you know, but we feel good about the the second half of the year for that business.
Chase, I'll also touch on this 1. Just, you know, make sure that you remind you that it's in line with expectations. So we're seeing that nice acceleration in bone graft substitutes that we expected, uh, that we've been talking about for a couple of quarters now. And expect that to continue again in the second half as as we bring new customers online and and Ultrasonics uh, important to say it was another very strong quarter of growth. We had this world-class technology and we believe, we can change the standard of care in this space. So we're we're seeing excellent Capital placements again uh which is a leading indicator of Market development as you know, and we expect our momentum to continue in the second half and and then ramp from there in 2026 and Beyond. Uh so expect surgical to continue to be a very attractive growth driver for us.
Chase Knickerbocker: Very helpful. Congrats again on the execution here, guys.
Rob Claypoole: Thanks, Chase.
Very helpful. Uh, congrats. Again, on the execution here guys.
Thanks Chase.
Carly: Our next question comes from Ross Osborne with Cantor Fitzgerald.
Your next question comes from Ross Osborne with Cantor Fitzgerald.
Robbie Marcus: Hey guys, this is Robbie Marcus for Ross today. Thanks for taking the questions. Maybe starting with Exogen, I was hoping to get some more color on what drove strength in the quarter, and I guess your confidence in your ability to sustain growth levels here.
Hey, guys, this is Matthew Park on for Ross today. Thanks for taking the questions. Um, I guess maybe starting with oxygen. Um, was hoping to get some more color and what drove straight in the quarter and I guess your confidence in your ability to sustain growth levels here.
Rob Claypoole: Thanks, Matthew. Well, in Exogen and our restorative therapies business, as mentioned, we generated double-digit growth for restorative therapies in the second quarter. So we are very excited about that. That is from a combination of the focus that we are putting on the business, fantastic leadership and team. Can't say enough about that team. The right strategy, smart investments, and really stronger commercial execution. That stronger execution is in turn demonstrating a favorable ROI on the investments that we have made in the business. That growth is coming from a combination of previous customers that we lost, existing customers driving more volume, and from new customers. We are looking forward to keeping this going. I think it is helpful for everybody online to remind them that, as we look forward, this market has an extremely large TAM or total available market.
Rob Claypoole: So it is up to us to go help the unaware and the non-believers so that they can help their patients with what we consider to be remarkable non-invasive technology. So we plan on continuing to drive that. We may not be counting on double-digit growth in this business by the quarter, but we do believe we can generate sustained growth in the mid-single-digit range or above, while always aiming for higher. Last, Matthew, for your perspective, as you may know, this business used to be over $100 million in size, and we believe we can get it back over $100 million in size with the momentum that we have.
Matthew. Yeah, well but then uh exigen and our restorative therapies business as mentioned that we generated double digit growth uh for restorative Therapies in the second quarter. So we're very excited about that. And, you know, that's from a a combination of the focus that we're putting on the business, fantastic leadership and team can say enough about that team, the right strategy, smart Investments, and really stronger commercial execution. And that stronger execution, is in turn demonstrating a favorable Roi on the Investments that we've made in the business. And you know, that growth is coming from a combination of previous customers that we had lost existing customers, driving, more volume, and from new customers. And um, looking forward to keeping this going, I think a helpful for everybody online to remind them that, you know, as we look forward this, this Market has an extremely large Tam or available uh Market total available market. And so it's up to us to, to go help the unaware and the non-believers uh so that they can help their patients with
You know, we considered to be remarkable non-invasive technology. And um, so we plan on continuing to drive that, you know, we may not be counting on Double Digit growth, you know, in this business by the quarter. But we do believe we can generate sustained growth in the mid single digit range or above while always aiming for higher, you know, and then last Matthew for your perspective, you know, as you may know, this business used to be over 100 million dollars in size and we believe we can get it back over a hundred million dollars in size with the momentum that we have.
Robbie Marcus: Got it. Super helpful. Maybe one more from me. I guess, how should we think about OpEx spend in the back half of the year, especially as you begin to roll out Talisman and Sitra and build a sales force there?
It super helpful and then maybe 1 more from me I guess how should we think about Opex then in the back half of the Year especially as you begin to roll out Talisman and travel and build a sales force today.
Mark Singleton: Yeah, thanks for the question. When you look at the back half of the year, we will see a slight increase in spend on commissions as our BGS revenue ramps. Then, we are going to start to do some additional investing in PNS and PRP in the second half of the year. So, it will slightly increase, but I think, you know, if you look at our P&L going from Q1 to Q2, it is really about delivering on the revenue, as Rob and myself walked you through that, and our confidence in that. When the revenue grows, the EBITDA will come, and we have historically done a good job of being disciplined in managing our spending, and we will continue to do so.
Yeah. Thanks for the for the question. When you look at the back half of the year, we'll, you know, see a, a slight increase in spend on commissions as our bgs Revenue, uh, ramps. And then we're going to start to, to do some additional investing in in the pns and and PRP in the second half of the year. So it'll it'll slightly increase but I think, you know, we look at our p&l going from 1 key to 2 Q. It's really about delivering on the revenue as Rob and myself walked you through that. And our confidence in that, um, in the revenue grows, we're the, the IBA will come and we've been historically done a good job of, uh, being disciplined, and managing our spending, and we'll continue to do so.
Robbie Marcus: Got it. Super helpful. Congrats on the quarter, guys.
Mark Singleton: Thanks, Matthew.
Super helpful. Congrats on the quarter, guys.
Carly: Your next question comes from Robbie Marcus with J.P. Morgan.
Thanks Matthew.
Your next question comes from. Robbie Marcus with JP Morgan.
Chase Knickerbocker: Oh, great. Good morning, and thanks for taking the questions. First for me, I want to ask on R&D, both the absolute dollar spend and percentage of sales, and how you're thinking about that over the future as you start adding more innovative products.
Oh great. Uh, good morning and thanks for taking the questions. Um, first for me. I want to ask on R&D uh both the absolute dollar spent and percentage of sales and how you're thinking about that over the future, as you start adding more Innovative products.
Rob Claypoole: Hey, Robbie. It's Rob. We have moderate investment, I'd say, and from an R&D standpoint, that's ramping up with what we've been doing both within our Ultrasonics platform and with PNS. For those two businesses, we have what we believe are the best world-class R&D teams internally. That's why, while we're excited about the existing platforms for both of those, we have strong capabilities to continue to expand those platforms organically. That's where the majority of our R&D dollars are going right now. We expect in both of those businesses for that to increase because, even though we've now launched this very exciting technology with StimTrial and Talisman and PNS, we still have the opportunity to significantly expand that portfolio. We're very committed to that business.
Rob Claypoole: In Ultrasonics, we've made a number of changes both in terms of our growth aspirations, what our strategy is to get there, and how our portfolio plays into that. That's included putting stronger resources from an upstream marketing standpoint that are developing our long-term portfolio strategy coming from our overall growth strategy, and that leads to an increase in the R&D spend that we're putting against that business. So moderate so far, but it has been ramping and expected to go up from here as we continue to drive those high-growth businesses.
About the existing platforms for both of those. Um, we have uh, strong capabilities to continue to expand those platforms organically and that's where the majority of our. Uh, our R&D dollars are going right now and and we expect in both of those businesses uh for that to to increase because, you know, even though we've now launched this very exciting technology with Sim trial and Talisman and pns. We still have the opportunity to uh, significantly expand that portfolio. We're very committed to that business and and um, and Ultrasonics. We've made a number of changes both in terms of our growth aspirations, what our strategy is to get there and how our portfolio plays into that and that's included. Putting uh, Stronger resources from an upstream marketing standpoint that are developing our long-term, um, portfolio strategy coming from our overall growth strategy and that leads to an increase in the R&D spend that we're putting against that business. So moderate. Um, so far, uh,
Mark Singleton: I would just add, I agree with Rob's comments. If you really break it down as you look at R&D in total, it might seem on the lower end, but when you break down PNS and Ultrasonics portfolio and the amount we are investing in those as a percentage of revenue in the individual portfolios, it is much more a material amount of what you would expect from a device investment.
But we it has been ramping and expected to go up from here as we um as we continue to drive those high growth businesses and that, that just that I agree with with Rob's comments and if you really, but if you break it down and you look at R&D in total and you know, might seem on the lower end but or, you know, to the moderate. But when you break down pns and ultrasonic portfolio and the amount we're investing in those as a percentage of Revenue in the individual portfolios that you know, it's it's much more material amount of what you would expect from a med device.
Chase Knickerbocker: Great. Just another question on OpEx. It is a little difficult to tease out what is underlying given the sale of the business. You grew about 6% organic. How should we think about what Q2 and 2025 OpEx growth looks like on an underlying organic basis? Thanks a lot.
Uh, investment.
Great. Um,
just a another question on Opex. Um, it's a little difficult to tease out what's underlying, uh, given the the, um,
the sale of the business you grew about 6% organic. How should we think about what second quarter and 2025 Opex growth looks like on an underlying organic basis? Thanks a lot.
Mark Singleton: Yeah, I think, you know, our revenues, you know, growing faster than our OpEx overall. When you think about the OpEx that we had with our rehabilitation business, it is about $6 million overall from a quarter perspective. So that comes down, then other expenses ramp up. But overall, you know, we are continuing to bring OpEx down overall from an operational perspective, driving, you know, back to our commitment on the 100 basis points margin expansion, you know, it is obviously both the revenue growth with the pure leading gross margin that we are driving, then scaling our OpEx, and making sure that the revenue is growing faster than the expense.
Yeah, I think, you know, our revenue is, um, you know, growing faster faster than our our Opex overall. When you think about the the Optics that we had with our, um,
Chase Knickerbocker: Great. Thanks a lot.
Rehabilitation business is about 6 million dollars, um, overall from a, from a quarter perspective. So that comes down and then other other expenses, uh, ramp up. But overall, you know, we're continuing to to bring, uh, Opex down overall, from a, from an operational perspective and driving, you know, back to our commitment on the 100%, it's obviously both the revenue growth with the pure leading, gross margin that we're driving and then scaling our offex and making sure that the revenue is growing faster than the expense.
Great. Uh, thanks a lot.
Mark Singleton: Thanks, Robbie.
Thanks Robbie.
Carly: Your next question comes from Caitlin Cronin with Canaccord.
Your next question comes from Caitlyn Cronin with canaccord.
Robbie Marcus: Great. Thanks for taking the questions. Just on Talisman StimTrial, any more color on the launch and early commercialization strategy? When do you expect this PNS portfolio to become a more significant contributor to revenue?
Great. Thanks for taking the questions.
You know, just on Talisman Sim trial any more color on the launch and an early, commercialization strategy. And then, you know, when do you expect kind of this pmf portfolio to become a more significant contributor to revenue?
Rob Claypoole: Hi, Caitlin. Thanks for the question. We are really excited about this business. A reminder that it is a very fast-growing market and a new platform that you referred to there. It is going to help patients who are coping with this unbearable chronic peripheral pain. I think it is important to keep in mind why. We have patented electric field conduction technology with the integrated pulse generator that potentially reaches those deeper, larger nerves, which could be easier for the doctor and beneficial for the patient. To your question, in the back half of this year, we will do a limited launch, and then we will rapidly ramp in 2026. While we are not giving guidance on next year, I will broaden it a little bit.
Really excited about.
Rob Claypoole: Our initial thoughts are that this business, combined with our new PRP platform, that those two alone have the potential to generate 200 bps of growth next year for the company overall and ramp from there. That gives you a feel for when we believe this will start being a more meaningful contributor to our growth profile. Of course, we will update you and set expectations as we learn more in the early stages of both of those launches.
That it's a very fast growing market and a new platform that referred to there. It's going to help patients. Who are coping with this unbearable, chronic peripheral pain. I think it's important to keep in mind and and um, and why, because, you know, we have a patented electric field conduction technology with the integrated pulse generator, that potentially reaches those deeper larger nerves, which could be easier for the doctor and beneficial for the patient. So, uh, to your question in the back, half of this year, we'll do a limited launch and then we'll rapidly ramp in 2026. Um, and you know, while we're not giving guidance on next year, I'll broaden it a little bit. Our initial thoughts are that, uh, this business combined with our new PRP platform, uh, that those 2 alone have the potential to generate, uh, 200 basis points of growth next year, for the company overall and ramp from there. So that that gives you a feel for
Or when we believe this will start feeding a more meaningful contributor to our growth profile. And uh, and of course, we'll, we'll update you and set expectations as we learn more in the early stages of both of those launches.
Robbie Marcus: That is great. Thanks. Then updates to the tariff expectations. I mean, what of the increase, any updates to any potential impact to HA?
That's great. Thanks and then updates to the Tariff expectations. I mean what? Um drove the increase, any updates to any potential impacts to to ha.
Mark Singleton: Yeah, thanks, Caitlin. I think when we talked about this in the first quarter, it was roughly like $1 million of tariff impacts. Today, as we said in the prepared remarks, we see about $3 million of an impact. That, with all of the news that we know through yesterday, obviously this is a very volatile situation and changes day to day. Overall, between tariffs and FX, we have absorbed $5 million of those headwinds and maintained our guidance. We will continue to monitor this and be responsible with engaging and managing the P&L accordingly. Again, $3 million is what we expect. That is really going to be coming in the back half of the year. We have had a little bit in the first half, but most of the tariff headwinds will be in the back half of the year.
Mark Singleton: The FX headwind is already behind us here today to about $2 million that we have all contained within the guidance that we have provided.
This is a, a very volatile situation and, you know, changes day to day. And and uh, so overall between tariffs and FX, we've absorbed 5 million dollars of those headwinds and, and maintained our guidance. And, um, so we're continuing to monitor this and, uh, be responsible with, uh, you know, engaging and and managing the p&l importantly, but again, 3 million dollars, what we expect and that's really going to be coming in the back, half of the year, we've had a little bit in the first half, but most of the, um, tariff headwinds will be in the back half of the year. And the FX headwind is is already behind us here today, of about 2 million dollars that we've all
Rob Claypoole: Yeah, Caitlin, I will just add that I think this speaks to the power of our P&L, of the strength and agility that we have. As Mark Singleton mentioned, FX and tariffs combined have created that $5 million headwind, but we believe we can manage through that and deliver on our goals, which, again, speaks to the power of our P&L.
contained, within the guidance that we've provided,
Yeah, and Kaitlin I'll just add that I I think this speaks to the power of our p&l of of the strength and Agility that we have, you know, as Mark mentioned, FX and tariffs combined have created that 5 million dollar headwind, but we believe we can manage through that and deliver on our goals, which, you know, again, speaks to the power of our pnl.
Robbie Marcus: Great. Thanks for taking the questions.
Great. Thanks for taking the questions.
Rob Claypoole: Thank you, Caitlin.
Thank you, Caitlin.
Carly: That concludes our Q&A session. I will now turn the conference back over to Rob Claypoole for closing remarks.
That concludes our Q&A session. I'll now turn the conference back over to Rob Claypool for closing remarks.
Rob Claypoole: All right, thanks everyone for your interest in Bioventus. Once again, we delivered a solid performance throughout our business in the second quarter, and we are confident in our ability to build on our momentum to deliver above market revenue growth, improve profitability, and accelerate our cash flow to create significant shareholder value. Thanks for joining the call.
All right, thanks everyone for your interest in bioventus once again, we delivered a solid performance throughout our business in the second quarter. And we are confident in our ability to build on our momentum to deliver above Market Revenue growth, improved, profitability and accelerate, our cash flow to to create significant shareholder value. Thanks for joining the call.
Carly: This concludes today's conference call. You may now disconnect.
this concludes today's conference call, you may now disconnect