Earnings call transcript: Bonesupport Holding AB reports strong Q2 2025 growth

Bonesupport Holding AB delivered robust Q2 2025 results, with net sales increasing 29% year-over-year to SEK 284.4 million, or 40% in constant currency, maintaining a strong 95% gross margin. This performance was largely driven by an 84% surge in U.S. sales of its flagship Cerement G product. Despite a marginal 0.13% stock price dip post-earnings, the company reaffirmed its full-year sales growth guidance above 40% (constant exchange rates) and is strategically expanding its portfolio with the planned December 2025 launch of Cerement BVF in the spine segment and anticipated H1 2026 FDA approval for Cerement V, underscoring continued strong growth prospects in the orthopedic bone graft market.

Analysis

Bonesupport Holding AB (BONEX) reported a robust Q2 2025, characterized by significant operational momentum that was partially obscured by adverse foreign exchange effects. Net sales grew 29% to SEK 284.4 million, which translates to a more indicative 40% growth in constant currency, reaffirming the company's full-year guidance of over 40% growth. The primary driver remains the strong U.S. market penetration of Cerement G, which saw sales surge 84% in constant currency. Profitability metrics are exceptionally strong, with a stable gross margin of approximately 95% and an FX-adjusted operating margin that expanded to 26%, up from 16.8% a year prior, demonstrating substantial operating leverage. Despite these strong results, the stock saw a negligible 0.13% decline, suggesting the market may be discounting the performance due to currency headwinds or awaiting further catalysts. Key future growth drivers are well-defined: the planned launch of Cerement BVF into the U.S. spine market in December 2025 and the anticipated H1 2026 launch of Cerement V, which is currently navigating the FDA approval process. While regulatory timelines for Cerement V and temporary market softness in Germany present manageable risks, the company's strong execution, expanding distributor network, and clear product pipeline support a positive outlook.

Key Decisions for Investors

• Investors should look beyond the muted stock reaction and negative FX impact to the underlying operational strength, evidenced by 40% constant currency sales growth and a 26% FX-adjusted operating margin, which supports a bullish thesis.
• It is crucial to monitor key near-term catalysts, particularly the execution of the Cerement BVF spine launch in December 2025 and any FDA communications regarding the H1 2026 approval timeline for Cerement V.
• Consider the long-term growth potential from market expansion initiatives, such as the new specialized distributor network targeting trauma and prosthetic joint infections, which could unlock significant portions of the addressable market.
• While the outlook is strong, it is prudent to monitor potential risks, including temporary sales disruption in Germany and any adverse changes to U.S. reimbursement policies or unexpected delays in FDA timelines.