Globus Medical, Inc. Class A

and a Q&A session will be held after the prepared remarks. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. I will now turn the call over to Brian Kearns, Senior Vice President of Business Development and Investor Relations. Mr. Kearns, please go ahead.

Thank you, Brianna, and thank you, everyone, for being with us today. Joining today's call from Globus Medical will be Dan Scavilla, President and CEO, and Keith Feil, Chief Operating Officer and Chief Financial Officer. This review is being made available via webcast, accessible through the investor relations section of the Globus Medical website at globusmedical.com. Before we begin, let me remind you that some of the statements made during this review are or may be considered forward-looking statements. Our Form 10-K for the 2024 fiscal year and our subsequent filings with the Securities and Exchange Commission identify certain factors that could cause our actual results to differ materially from those projected in any forward-looking statements made today. Our SEC filings, including the 10-K, are available on our website. We do not undertake to update any forward-looking statements as a result of new information or future events or developments. Our discussion today will also include certain financial measures that are not calculated in accordance with generally accepted accounting principles or GAAP. We believe these non-GAAP financial measures provide additional information pertinent to our business performance. These non-GAAP financial measures should not be considered replacements for and should be read together with the most directly comparable GAAP financial measures. Reconciliations to the most directly comparable GAAP measures are available in the schedules accompanying the press release and on the Investor Relations section of the Globus Medical website. With that, I will now turn the call over to Dan Scavilla, our President and CEO.

Thanks, Brian, and good afternoon, everyone. Globus had a flat quarter in Q1, finishing slightly down in sales with negative 0.8% growth versus prior year on a constant currency basis. Drivers were softer enabling tech sales against difficult comp, temporary integration-related supply chain disruption, and timing of international distributor orders partially offset by continued strengthening momentum of the U.S. spine business. Revenue for the quarter was $598 million. Non-GAAP EPS was 68 cents, increasing 9% versus prior year against higher diluted shares and a 6 cents one-time 2024 EPS gain not repeated in 2025. Free cash flow was $141 million, increasing $117 million, were 493% versus prior year. We returned to debt-free status in Q1, paying off the remainder of the nearly $900 million debt inherited from the NuVasive merger and generating enough cash to pay for the Q2 Neverill acquisition while investing in the ongoing business without interruption. In addition, we launched two new products in Q1 that will aid in driving market penetration. Since the NuVasive deal closed in September of 2023, We've cumulatively added over $1 billion in incremental sales, generated $650 million in free cash flow, and executed over $500 million of share repurchases, reducing deal dilution more than 20%. While Q1 sales were flat, we're already seeing stronger results in Q2 throughout the business as we remediate supply chain disruptions, fill open distributor orders, and close robot deals. We will continue to focus on the long game, investing in sustained profitable growth and using our financial strength and discipline to accelerate the top line results while continuing to deliver strong EPS and free cash flow. Moving into the performance of our business areas, US Spine grew 2% in Q1 with gains across our product portfolio in expandables, MIS screws, lateral, and ACDF platforms. The core Spine growth is driven by several factors, including a high retention rate at all levels of our field sales team, the strength of our combined product offering, increased product cross-selling, and implant pull-through from robotic procedures. USQ1 results were impacted by temporary integration-related supply chain disruption and a planned reduction in third-party biologics sales resulting from expected changes in the reimbursement landscape for wound care products, including some of our tissue products. The reduction in third-party biologics was included in our annual guidance, and the supply chain continues to strengthen in Q2. Exiting April, we delivered above-market growth in our U.S. spine business and feel positive about the quarters ahead. Competitive rep recruiting was strong in Q1, and the overall recruiting pipeline remains active as we enter Q2, positioning us for another meaningful recruiting year. As mentioned earlier, we launched two new products in Q1. The Cohere ALIF spacer with integrated screw fixation builds on the clinical success of our Cohere line. now offering surgeons a porous peak solution for anterior lumbar interbody fusion procedures. Our Cohere proprietary porous architecture supports bone ingrowth and reduces fibrous encapsulation while maintaining the radiolicency needed for precise interoperative placement and postoperative fusion visualization. The Cohere ALS Spacer meets surgeon demands for improved osseointegration without sacrificing imaging clarity or mechanical performance. This expansion further establishes our leadership in advanced material science. The ReLine eGPS fixation system delivers solutions for open, minimally invasive, and hybrid procedures with pre-assembled and modular implants paired with versatile instruments to address both degenerative conditions and complex deformities effortlessly and efficiently. The integration of the ReLine fixation system with the Excelsis Enabling Technology Suite creates a powerful synergy of trusted reliability and innovation delivering a comprehensive solution for surgeons while advancing our mission to help improve patient lives. The following Reline systems are now compatible with Excelsis technologies. Reline Open, Modular, Mass, Mass Reduction, Small Stature, Mass Midline, and Reline Cervical. The R&D pipeline remains rich, and I look forward to another year of meaningful launches improving outcomes as we strive to develop solutions to address unmet clinical needs. Moving to enabling technology, sales for the quarter were $22 million, a decrease of 31% against a record prior year comp. Capital sales tend to fluctuate among quarters, with Q1 historically being slower, but we didn't close the deals we planned on in Q1 in the face of market uncertainty. To our knowledge, we did not lose any pipeline deals to competition and expect to close active deals in the upcoming quarters. The deal pipeline is robust and Q2 is off to a good start with several robot and imaging system deals closed in April and May. Robotic procedures performed since launch surpassed 100,000 procedures globally in Q1 and continue to accelerate, growing 6% versus prior year, continuing to create increased implant pull-through. Our international spine implant business grew 1% in Q1 on a constant currency basis, impacted by the timing of distributor orders and temporary supply chain disruptions. We are accelerating growth in Q2 as we reduce the back orders in several key markets. The combined trauma and NSO business declined 8% in Q1, driven by integration-related supply chain disruption related to facility validations. This was partially offset by continued strength in the core trauma, which did deliver 34% growth for the quarter. The supply chain disruptions have been remedied and product is being released for sale to the markets. We're seeing the overall trauma and NSO growth return to high levels in Q2. In April, We completed the purchase of all shares of the Nevro Corporation for an all-cash transaction of $250 million. The acquisition of Nevro further expands our reach into the musculoskeletal market, adding an additional $3 billion market space for us to compete in and grow. We believe that paresthesia-free pain relief enabled by high-frequency technology offers a clinically superior solution that is altering the standard of care for patients suffering from chronic pain. Nevro technology has potential beyond its current application to benefit our cranial, enabling technology, next-generation spinal implants, adaptive AI, painful diabetic neuropathy, and other areas of our business. The Nevro patent portfolio strengthens our already best-in-class musculoskeletal innovation suite, while Globus' scale and customer base will accelerate market penetration of the differentiated high-frequency technology. We see this move as an expansion of our continuum of care and complementary to our current spinal portfolio offering. The strong and dedicated neuromodulation sales force will be able to leverage our existing spine team to drive uptake and penetration, while our spine team can offer more solutions to their surgeons. Globus's financial strength will accelerate investments in neuromodulation to expand existing product reach and future product development. Combining Nevro into Globus's existing infrastructure will improve the profitability and cash flow of the Nevro business, generating more cash for future investments and growth. I believe the potential for Globus has never been greater. It's up to us to harness our resources and shape the future of our markets. We have at our fingertips everything we need to realize this. I want to thank the Globus team worldwide for your dedication and support building the pathway to becoming the preeminent musculoskeletal technology company in the world. I will now turn the call over to Keith.