8/6/2026

speaker
Operator
Call Operator

Hello and thank you for standing by. Ladies and gentlemen, welcome to Innova's second quarter 2026 earnings call. Please note that this call is being recorded. At this time, all participants are in listen-only mode. There will be some opening remarks followed by a question and answer session. If you wish to ask a question, please press star 1 on your telephone keypad. Thank you. I'd now like to turn the call over to Kyle Rose, Vice President, Investor Relations. Please go ahead.

speaker
Kyle Rose
Vice President, Investor Relations

Good morning, everyone, and thank you for joining us today for our second quarter 2026 earnings conference call. I'm Kyle Rose, Vice President of Investor Relations. Joining me on the call this morning are Damien McDonald, Chief Executive Officer, and Ben Berry, our Chief Financial Officer. Thank you for joining us. Future events and results. These forward-looking statements are subject to risks and uncertainties, including those set forth in the safe harbor language in today's earnings release and in our filings with the SEC. Actual results might differ materially from any forward-looking statements that we make today. The forward-looking statements speak only as of today, and we do not assume any obligation or intend to update them except as required by law. For further details regarding any non-GAAP financial measures referenced during the call today, The accompanying reconciliation information can be found in our earnings press release and in the appendix of today's slide presentation. With that, let me turn it over to Damien. Damien?

speaker
Damien McDonald
Chief Executive Officer

Hey, thanks, Kyle. And good morning, everyone, and thank you for joining us today. On today's call, I'll start with an overview of our second quarter results, discuss performance across our two operating segments, Recon and P&R. And Ben will then walk you through our financial results and outlook for Q3 and 2026. After that, I'll come back and highlight a few quick themes before we open the call for questions. Our second quarter results demonstrated the strength and stability of our diversified product portfolio, improving execution from our global teams, and the ongoing adoption of the one-a-novus mindset. We delivered organic growth of 5%, driven by 6% organic growth in recon and 3% organic growth in P&R. In U.S. recon, we grew 6% organically in the second quarter led by 8% organic growth in hips and knees. Our focus products of Nebula, ARG and Arvis continue to gain traction and we're excited about the momentum we're carrying into the second half of the year. In hips and knees, we continue to execute our commercial plans across the hospital and ASC settings and Nebula continues to be a driver of growth with over 80% of new instrumentation sets going to competitive users in Q2. Internationally, we grew 6% in recon on an organic basis, including double-digit growth in shoulders. We continue to strengthen our global portfolio and remain positioned to take market share. Innovation is a core pillar of our growth strategy at Inovus. We have a robust pipeline of new product introductions planned across our key markets and geographies. Arvus moved into full commercial launch in the US in the second quarter, and I'm excited about the early feedback from Surgeons, and the commercial teams. We're using this launch as an opportunity to strategically target new customers, and we expect to see continued adoption in shoulders as we move through the second half of 2026. Now, moving to P&R, this segment grew 3% on an organic basis year over year. Global bracing grew 4%, with mid-single-digit growth in the U.S. driven by revenue cycle management and spine bracing. Recovery Sciences and Bone Stim were another source of strength for the quarter, delivering mid-to-high single-digit growth, and new products are expected to start contributing more as we get into the later part of the year. So, we continue to execute across our businesses, and I'll pass it over to Ben to walk through the financial details.

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Investor presentation