AUDUBON, Pa., Feb. 20, 2025 (GLOBE NEWSWIRE) -- Globus Medical, Inc. (NYSE:GMED), a leading musculoskeletal technology company, today announced its financial results for the fourth quarter and year ended December 31, 2024.

Fourth Quarter 2024:

Worldwide net sales were $657.3 million, an increase of 6.6% on an as-reported basis and an increase of 6.9% on a constant currency basis
GAAP net income for the quarter was $26.5 million
GAAP diluted earnings per share ("EPS") was $0.19 and non-GAAP diluted EPS was $0.84
Non-GAAP adjusted EBITDA was $196.9 million, or 30.0% of net sales

Full Year 2024:

Worldwide net sales were $2,519.4 million, an increase of 60.6% on an as-reported basis and an increase of 61.1% on a constant currency basis
GAAP net income for the year was $103.0 million
GAAP diluted EPS was $0.75 and non-GAAP diluted EPS was $3.04
Non-GAAP adjusted EBITDA was $735.0 million, or 29.2% of net sales

"I'm proud of our team at Globus Medical, delivering incredible results for 2024. We made significant progress integrating the business and creating a strong foundation for future growth while remaining focused on improving patient outcomes. Our spine sales force is the most dedicated and talented team in the market. Our innovation engine delivered a record amount of new product launches in 2024 and remains unmatched in our industry." said Dan Scavilla, President and CEO. "The potential for Globus has never been greater, as we continue to redefine spine surgery and address unmet clinical needs with procedural solutions built around enabling technology."

"Our financial results demonstrate the potential of our combined organization and the growing value creation from the merger", commented Keith Pfeil, COO-CFO. "Despite the complexities of integration, we delivered record fourth quarter and full year sales, while maintaining our disciplined approach to operational excellence and cost management. Our team executed against the strategic objectives to drive integration success, which has unlocked tremendous value, as demonstrated in our financial results, which include record operating cash flow for the fourth quarter and full year. Looking ahead, we remain well positioned to unlock operational efficiencies, while delivering innovation and market leadership."

Worldwide net sales for the fourth quarter were $657.3 million, an as-reported increase of 6.6% over the fourth quarter of 2023, and an increase of 6.9% on a constant currency basis. U.S. net sales for the fourth quarter of 2024 increased by 6.3% compared to the fourth quarter of 2023. International net sales increased by 7.7% over the fourth quarter of 2023 on an as-reported basis, and an increase of 8.9% on a constant currency basis. Net Sales increases were driven by the addition of NuVasive, as well as increased spine products and enabling technology volume.

Worldwide net sales for the full year of 2024 were $2,519.4 million, an increase of 60.6% as compared to the full year of 2023 on an as-reported basis, and an increase of 61.1% on a constant currency basis. U.S. net sales for the full year of 2024 increased by 56.3% compared to the full year of 2023. International net sales increased by 79.9% over the full year of 2024 on an as-reported basis, and an increase of 82.7% on a constant currency basis.

GAAP net income for the fourth quarter was $26.5 million, an increase of 76.3% over the same period in the prior year, driven primarily by higher net sales as a result of the Merger. Diluted EPS for the fourth quarter was $0.19, compared to $0.11 for the fourth quarter of 2023. Non-GAAP net income for the fourth quarter was $117.4 million, an increase of 40.6% over the same period in the prior year, driven primarily by higher net sales as a result of the Merger. Non-GAAP diluted EPS for the fourth quarter of 2024 was $0.84, compared to $0.60 in the fourth quarter of 2023, an increase of 35.7% driven by higher net sales.

Net cash provided by operating activities was $520.6 million, and non-GAAP free cash flow was $405.2 million for the full year of 2024.

2025 Annual Guidance

On a stand-alone basis, Globus Medical reaffirms its full year 2025 revenue guidance range of $2.66 billion to $2.69 billion and fully diluted non-GAAP earnings per share range between $3.40 to $3.50. Following the consummation of the Nevro, Inc. acquisition, which we expect to close in the late second quarter of 2025, Globus Medical anticipates 2025 net sales of $2.80 billion to $2.90 billion and fully diluted non-GAAP earnings per share range between $3.10 to $3.40.

Conference Call Information

Globus Medical will hold a teleconference to discuss its 2024 fourth quarter and full year results with the investment community at 4:30 p.m. Eastern Time today.

Participants may access the conference call live via webcast on the Investors page of Globus Medical's website at https://www.investors.globusmedical.com/news-events/events-webcasts.

To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. The audio archive will be available after the call on the Investor page of the Globus Medical website.

About Globus Medical, Inc.

Based in Audubon, Pennsylvania, Globus Medical, Inc. was founded in 2003 by an experienced team of professionals with a shared vision to create products that enable surgeons to promote healing in patients with musculoskeletal disorders. Additional information can be accessed at www.globusmedical.com.

Non-GAAP Financial Measures

To supplement our financial statements prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"), management uses certain non-GAAP financial measures. For example, non-GAAP Adjusted EBITDA, which represents net income before interest income, net and other non-operating expenses, provision for income taxes, depreciation and amortization, stock-based compensation expense, provision for litigation, merger and acquisition related costs, restructuring related costs, certain foreign currency acquisition-related impacts, and gains and losses from strategic investments, is useful as an additional measure of operating performance, and particularly as a measure of comparative operating performance from period to period, as it is reflective of changes in pricing decisions, cost controls and other factors that affect operating performance, and it removes the effect of our capital structure, asset base, income taxes and interest income and expense. As of December 31, 2024, we no longer include acquisition of in-process research and development as an adjustment to non-GAAP Adjusted EBITDA. Our management also uses non-GAAP Adjusted EBITDA for planning purposes, including the preparation of our annual operating budget and financial projections. Provision for litigation represents costs incurred for litigation settlements or unfavorable verdicts when the loss is known or considered probable and the amount can be reasonably estimated, or in the case of a favorable settlement, when income is realized. Merger and acquisition related costs represents the change in fair value of business-acquisition-related contingent consideration; costs related to integrating recently acquired businesses, including but not limited to costs to exit or convert contractual obligations, severance, retention bonus, duplicative costs and information system conversion; and specific costs related to the consummation of the acquisition process such as banker fees, legal fees, and other acquisition related professional fees. Restructuring related costs include severance, retention bonus, accelerated stock-based compensation expense, and costs associated with consolidating facilities. We also adjusted for certain foreign currency impacts related to the acquisition costs and gains/losses on strategic investments within other assets as we believe these impacts are not a measure of our operating performance.

In addition, for the period ended December 31, 2024 and for other comparative periods, we are presenting non-GAAP net income and non-GAAP Diluted Earnings Per Share, which represent net income and diluted earnings per share excluding the provision for litigation, amortization of intangibles, merger and acquisition related costs, restructuring related costs, certain foreign currency impacts, gains and losses from strategic investments, the impact of dilution attributable to the Convertible Notes, and the tax effects of all of the foregoing adjustments. As of December 31, 2024, we no longer include acquisition of in-process research and development as an adjustment to non-GAAP net income. We also present Non-GAAP gross profit, which excludes the impacts of any inventory acquisition-related costs within cost of goods sold. The tax effect adjustment represents the tax effect of the pre-tax non-GAAP adjustments excluded from non-GAAP net income. The tax impact of the non-GAAP adjustments is calculated based on the consolidated effective tax rate on a GAAP basis, applied to the non-GAAP adjustments, unless the underlying item has a materially different tax treatment, in which case the estimated tax rate applicable to the adjustment is used. We believe these non-GAAP measures are also useful indicators of our operating performance, and particularly as additional measures of comparative operating performance from period to period as they remove the effects of the foregoing items, which we believe are not reflective of underlying business trends. Additionally, for the period ended December 31, 2024, and for other comparative periods, we also define the non-GAAP measure of free cash flow as the net cash provided by operating activities, adjusted for the impact of restricted cash, less the cash impact of purchases of property and equipment. We believe that this financial measure provides meaningful information for evaluating our overall financial performance for comparative periods as it facilitates an assessment of funds available to satisfy current and future obligations and fund acquisitions. Furthermore, the non-GAAP measure of constant currency net sales growth is calculated by translating current year net sales at the same average exchange rates in effect during the applicable prior year period. We believe constant currency net sales growth provides insight to the comparative increase or decrease in period net sales, in dollar and percentage terms, excluding the effects of fluctuations in foreign currency exchange rates..

Non-GAAP adjusted EBITDA, non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP gross profit, free cash flow and constant currency net sales growth are not calculated in conformity with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for financial measures prepared in accordance with U.S. GAAP. These measures do not include certain expenses that may be necessary to evaluate our liquidity or operating results. Our definitions of non-GAAP adjusted EBITDA, non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP gross profit, free cash flow and constant currency net sales growth may differ from that of other companies and therefore may not be comparable.

Safe Harbor Statements

All statements included in this press release other than statements of historical fact are forward-looking statements and may be identified by their use of words such as "believe," "may," "might," "could," "will," "aim," "estimate," "continue," "anticipate," "intend," "expect," "plan" and other similar terms. These forward-looking statements are based on our current assumptions, expectations and estimates of future events and trends. Forward-looking statements are only predictions and are subject to many risks, uncertainties and other factors that may affect our businesses and operations and could cause actual results to differ materially from those predicted. These risks and uncertainties include, but are not limited to, the risks and costs associated with the integration of the NuVasive business and Globus Medical, Inc.'s ability to successfully integrate and achieve anticipated synergies with the NuVasive business, our ability to complete the acquisition of and successfully integrate the Nevro, Inc. business, health epidemics, pandemics and similar outbreaks, factors affecting our quarterly results, our ability to manage our growth, our ability to sustain our profitability, demand for our products, our ability to compete successfully (including without limitation our ability to convince surgeons to use our products and our ability to attract and retain sales and other personnel), our ability to rapidly develop and introduce new products, our ability to develop and execute on successful business strategies, our ability to comply with laws and regulations that are or may become applicable to our businesses, our ability to safeguard our intellectual property, our success in defending legal proceedings brought against us, trends in the medical device industry, general economic conditions, and other risks. For a discussion of these and other risks, uncertainties and other factors that could affect our results, you should refer to the disclosure contained in our most recent annual report on Form 10-K filed with the U.S. Securities and Exchange Commission, including the sections labeled "Risk Factors" and "Cautionary Note Concerning Forward-Looking Statements," and in our Forms 10-Q, Forms 8-K and other filings with the U.S. Securities and Exchange Commission. These documents are available at www.sec.gov. Moreover, we operate in an evolving environment. New risk factors and uncertainties emerge from time to time and it is not possible for us to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements contained in this press release speak only as of the date of this press release. We undertake no obligation to update any forward-looking statements as a result of new information, events or circumstances or other factors arising or coming to our attention after the date hereof.

GLOBUS MEDICAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (unaudited)

	Three Months Ended								Year Ended
	December 31,								December 31,
*(In thousands, except per share amounts)*	2024			2023			2022		2024			2023			2022
Net sales	$	657,293		$	616,534		$	274,498	$	2,519,355		$	1,568,476		$	1,022,843

Cost of Sales and Operating expenses:
Cost of Sales (exclusive of amortization of intangibles)		263,437			265,486			70,591		1,035,479			548,174			263,725
Research and development		33,408			52,253			19,507		163,754			124,010			73,015
Selling, general and administrative		253,481			244,718			118,075		981,048			643,410			432,117
Provision for litigation, net		(314	)		250			—		314			434			2,341
Amortization of intangibles		29,912			28,122			4,506		119,373			51,032			17,735
Acquisition-related costs		17,088			15,581			7,791		29,623			68,274			5,959
Restructuring cost		6			—			—		23,773			—			—
Operating income/(loss)		60,275			10,124			54,028		165,991			133,142			227,951
Other income/(expense), net
Interest income/(expense), net		815			(2,581	)		5,315		(4,189	)		20,130			14,233
Foreign currency transaction gain/(loss)		(37,491	)		19,908			2,688		(43,285	)		14,259			(1,020	)
Other income/(expense)		1,069			(2,456	)		85		2,205			(2,138	)		1,855
Total other income/(expense), net		(35,607	)		14,872			8,088		(45,269	)		32,251			15,068
Income/(loss) before income taxes		24,668			24,995			62,116		120,722			165,393			243,019
Income tax provision		(1,837	)		9,960			12,051		17,738			42,520			52,850
Net income/(loss)	$	26,505		$	15,035		$	50,065	$	102,984		$	122,873		$	190,169

Other comprehensive income/(loss), net of tax:
Unrealized gain/(loss) on marketable securities		(238	)		8,893			4,199		1,545			13,231			(14,040	)
Foreign currency translation gain/(loss)		340			(18	)		3,397		1,786			1,207			(3,818	)
Total other comprehensive income/(loss), net of tax		102			8,875			7,596		3,331			14,438			(17,858	)
Comprehensive income/(loss)	$	26,607		$	23,910		$	57,661	$	106,315		$	137,311		$	172,311

Earnings per share:
Basic	$	0.19		$	0.11		$	0.50	$	0.76		$	1.09		$	1.89
Diluted	$	0.19		$	0.11		$	0.49	$	0.75		$	1.07		$	1.85
Weighted average shares outstanding:
Basic		136,729			137,883			99,967		135,726			113,087			100,469
Diluted		139,711			139,021			102,209		137,863			114,630			102,643

GLOBUS MEDICAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (unaudited)

	December 31,			December 31,
*(In thousands, except share and per share values)*	2024			2023
ASSETS
Current assets:
Cash and cash equivalents	$	784,438		$	467,292
Short-term marketable securities		105,619			50,497
Accounts receivable, net of allowances of $15,505 and $8,934, respectively		557,697			503,235
Inventories		659,233			848,135
Prepaid expenses and other current assets		49,640			44,580
Income taxes receivable		20,633			1,635
Total current assets		2,177,260			1,915,374
Property and equipment, net of accumulated depreciation of $545,786 and $425,695, respectively		561,909			586,932
Operating lease right of use assets		49,647			59,931
Long-term marketable securities		66,134			75,428
Intangible assets, net		795,117			924,603
Goodwill		1,432,387			1,434,540
Other assets		75,096			78,590
Deferred income taxes		94,200			10,685
Total assets	$	5,251,750		$	5,086,083

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	75,118		$	56,671
Accrued expenses		260,591			240,460
Operating lease liabilities		10,249			11,967
Income taxes payable		10,725			3,845
Senior convertible notes		443,351			—
Business acquisition liabilities		33,739			61,035
Deferred revenue		22,140			18,369
Total current liabilities		855,913			392,347
Business acquisition liabilities, net of current portion		89,496			78,323
Operating lease liabilities		83,588			91,037
Senior convertible notes		—			417,400
Deferred income taxes and other tax liabilities		23,889			84,421
Other liabilities		21,531			24,596
Total liabilities		1,074,417			1,088,124

Equity:
Class A common stock; $0.001 par value. Authorized 500,000,000 shares; issued and outstanding 114,990,219 and 113,905,565 shares at December 31, 2024 and December 31, 2023, respectively		115			114
Class B common stock; $0.001 par value. Authorized 275,000,000 shares; issued and outstanding 22,430,097 and 22,430,097 shares at December 31, 2024 and December 31, 2023, respectively		22			22
Additional paid-in capital		3,031,244			2,870,749
Accumulated other comprehensive income/(loss)		(6,861	)		(10,192	)
Retained earnings		1,152,813			1,137,266
Total equity		4,177,333			3,997,959
Total liabilities and equity	$	5,251,750		$	5,086,083

GLOBUS MEDICAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

	Year Ended
	December 31,
*(In thousands)*	2024			2023			2022
Cash flows from operating activities:
Net income	$	102,984		$	122,873		$	190,169
Adjustments to reconcile net income to net cash provided by operating activities:
Acquired in-process research and development		12,613			—			150
Depreciation and amortization		254,024			144,733			68,252
Amortization of premiums on marketable securities		(635	)		793			5,389
Provision for excess and obsolete inventory		23,359			10,959			6,400
Amortization of inventory fair value step-up		215,420			71,656			—
Amortization of 2025 Notes fair value step-up		26,630			8,176			—
Stock-based compensation expense		54,191			52,742			32,810
Allowance for expected credit losses		16,986			3,658			(1	)
Change in fair value of business acquisition liabilities		26,521			17,434			5,132
Change in deferred income taxes		(125,902	)		(57,789	)		(22,223	)
(Gain)/loss on disposal of assets, net		5,552			1,541			299
Payment of business acquisition-related liabilities		(18,763	)		(3,005	)		(2,647	)
Net (gain)/loss from foreign currency adjustment		25,212			(13,674	)		—
(Increase) decrease in:
Accounts receivable		(78,062	)		(49,914	)		(50,843	)
Inventories		(29,860	)		(70,328	)		(61,745	)
Prepaid expenses and other assets		1,059			1,148			(10,292	)
Increase (decrease) in:
Accounts payable		17,663			(14,223	)		14,418
Accrued expenses and other liabilities		5,023			17,127			6,087
Income taxes payable/receivable		(13,377	)		(408	)		(2,887	)
Net cash provided by/(used in) operating activities		520,638			243,499			178,468
Cash flows from investing activities:
Purchases of marketable securities		(113,504	)		(100,643	)		(419,534	)
Maturities of marketable securities		58,666			240,190			312,221
Sales of marketable securities		11,851			537,723			102,433
Purchases of property and equipment		(115,429	)		(78,274	)		(74,047	)
Acquisition of businesses, net of cash acquired and purchases of intangible and other assets		(17,635	)		(296,028	)		(31,435	)
Net cash provided by/(used in) investing activities		(176,051	)		302,968			(110,362	)
Cash flows from financing activities:
Payment of business acquisition-related liabilities		(45,619	)		(8,039	)		(7,185	)
Net proceeds from exercise of stock options		110,439			12,397			41,716
Payments related to tax withholdings for share-based compensation		(6,729	)		(10,617	)		—
Repurchase of common stock		(85,787	)		(225,562	)		(144,493	)
Net cash provided by/(used in) financing activities		(27,696	)		(231,821	)		(109,962	)
Effect of foreign exchange rates on cash		255			2,180			(747	)
Net increase/(decrease) in cash and cash equivalents		317,146			316,826			(42,603	)
Cash and cash equivalents at beginning of period		467,292			150,466			193,069
Cash and cash equivalents at end of period	$	784,438		$	467,292		$	150,466

Supplemental disclosures of cash flow information:
Income taxes paid, net	$	158,508		$	100,593		$	77,823
Non-cash investing and financing activities:
Equity issued in conjunction with the NuVasive Merger	$	—		$	2,153,860		$	—
Accrued purchases of property and equipment	$	9,281		$	7,100		$	7,423

Supplemental Financial Information
Net Sales by Product Category:

	Three Months Ended						Year Ended
	December 31,						December 31,
*(In thousands)*	2024		2023		2022		2024		2023		2022
Musculoskeletal Solutions	$	610,341	$	583,820	$	244,999	$	2,365,352	$	1,448,260	$	926,703
Enabling Technologies		46,952		32,714		29,499		154,003		120,216		96,140
Total net sales	$	657,293	$	616,534	$	274,498	$	2,519,355	$	1,568,476	$	1,022,843

Liquidity and Capital Resources:

	December 31,		December 31,
*(In thousands)*	2024		2023
Cash and cash equivalents	$	784,438	$	467,292
Short-term marketable securities		105,619		50,497
Long-term marketable securities		66,134		75,428
Total cash, cash equivalents and marketable securities	$	956,191	$	593,217

The following tables reconcile GAAP to Non-GAAP financial measures.

As of September 30, 2024, we no longer include Acquisition of in-process research and development as an adjustment to the non-GAAP financial measures. As previously disclosed, the Company incurred $12.6 million in the twelve months ended December 31, 2024 for the Acquisition of in-process research and development, which, when it was previously included, resulted in an impact for the year ended December 31, 2024 of 0.5% on Adjusted EBITDA as a percentage of net sales and $0.09 on Non-GAAP diluted earnings per share.

Non-GAAP Adjusted EBITDA Reconciliation Table:

	Three Months Ended									Year Ended
	December 31,									December 31,
*(In thousands, except percentages)*	2024			2023			2022			2024			2023			2022
Net income/(loss)	$	26,505		$	15,035		$	50,065		$	102,984		$	122,873		$	190,169
Interest (income)/expense, net		(815	)		2,581			(5,315	)		4,189			(20,130	)		(14,233	)
Provision for income taxes		(1,838	)		9,960			12,051			17,738			42,520			52,850
Depreciation and amortization		68,228			71,162			16,911			254,024			144,733			68,252
EBITDA		92,080			98,737			73,712			378,935			289,996			297,038
Stock-based compensation expense		11,756			11,577			8,507			48,286			38,995			32,810
Provision for litigation, net		(314	)		250			—			314			434			2,341
Merger and acquisition-related costs⁽¹⁾		64,561			76,431			7,791			249,721			148,498			6,854
Acquisition of in-process research and development		—			—			150			—			—			150
Net (gain) loss from strategic investments		1,098			(460	)		—			831			(192	)		—
Non-cash acquisition-related foreign currency impacts		27,566			(16,572	)		—			25,212			(13,674	)		—
Restructuring costs		132			—			—			31,674			—			—
Adjusted EBITDA	$	196,879		$	169,963		$	90,160		$	734,973		$	464,057		$	339,193

Net income/(loss) as a percentage of net sales		4.0	%		2.4	%		18.2	%		4.1	%		7.8	%		18.6	%
Adjusted EBITDA as a percentage of net sales		30.0	%		27.6	%		32.8	%		29.2	%		29.6	%		33.2	%
(1) Merger and acquisition-related costs represent certain costs associated with acquisitions. These costs, presented on a before-tax effect basis, include the following:

	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
*(In thousands)*
Amortization of inventory fair value step up	$	47,323	$	52,591	$	215,420	$	71,656
Change in fair value of business acquisition liabilities		16,966		12,684		25,575		17,259
Employee-related costs		—		8,545		5,031		42,857
Other acquisition-related costs^(a)		272		2,612		3,695		16,725
Merger and acquisition-related costs	$	64,561	$	76,432	$	249,721	$	148,498
(a) Primarily comprised of legal fees, investment banking and consulting fees.

Non-GAAP Net Income Reconciliation Table:

	Three Months Ended									Year Ended
	December 31,									December 31,
*(In thousands)*	2024			2023			2022			2024			2023			2022
Net income/(loss)	$	26,505		$	15,034		$	50,065		$	102,984		$	122,873		$	190,169
Provision for litigation, net		(314	)		250			—			314			434			2,341
Amortization of intangibles		29,912			28,123			4,506			119,373			51,032			17,735
Merger and acquisition -related costs⁽¹⁾		64,561			76,431			7,791			249,721			148,498			6,854
Acquisition of in-process research and development		—			—			150			—			—			150
Non-cash acquisition-related foreign currency impacts		27,566			(16,572	)		—			25,212			(13,674	)		—
Restructuring Costs		132			—						31,674			—
Net gain/(loss) on strategic investments		1,098			(460	)		—			831			(192	)		—
Tax effect of adjusting items		(32,042	)		(19,310	)		(2,415	)		(110,496	)		(42,570	)		(5,695	)
Non-GAAP net income/(loss)	$	117,418		$	83,496		$	60,097		$	419,613		$	266,401		$	211,554
(1) see footnote 1 to the Non-GAAP Adjusted EBITDA Reconciliation Table above for the detail of these costs.

Non-GAAP Gross Profit Reconciliation Table:

	Three Months Ended									Year Ended
	December 31,									December 31,
*(In thousands)*	2024			2023			2022			2024			2023			2022
Net Sales	$	657,293		$	616,534		$	274,498		$	2,519,355		$	1,568,476		$	1,022,843
Cost of Sales (exclusive of amortization of intangibles)		263,437			265,486		—	70,591			1,035,479			548,174			263,725
Amortization of Intangibles		17,585			9,526			4,506			84,079			15,408			17,735
Gross Profit		376,271			341,522			188,225			1,399,797			1,004,893			718,879
Amortization of inventory fair value step up		47,323			52,591			—			215,420			71,656			—
Amortization of Intangibles		17,585			9,526			4,506			84,079			15,408			17,735
Adjusted Gross Profit	$	441,179		$	403,639		$	192,731		$	1,699,296		$	1,091,957		$	736,614

Gross Profit % of Net Sales		57.2	%		55.4	%		68.6	%		55.6	%		64.1	%		70.3	%
Adjusted Gross Profit % of Net Sales		67.1	%		65.5	%		70.2	%		67.4	%		69.6	%		72.0	%

Non-GAAP Diluted Earnings Per Share Reconciliation Table:

	Three Months Ended									Year Ended
	December 31,									December 31,
*(In thousands)*	2024			2023			2022			2024			2023			2022
Diluted earnings per share, as reported	$	0.19		$	0.11		$	0.49		$	0.75		$	1.07		$	1.85
Dilution attributable to Convertible Notes		—			—			—			—			—			—
Provision for litigation, net		(0.00	)		—			—			—			—			0.02
Amortization of intangibles		0.21			0.20			0.04			0.87			0.45			0.17
Merger and acquisition -related costs⁽¹⁾		0.46			0.55			0.08			1.81			1.30			0.07
Acquisition of in-process research and development		—			—			—			—			—			—
Net (gain) loss from strategic investments		0.01			—			—			0.01			(0.00	)		—
Non-cash acquisition-related foreign currency impacts		0.20			(0.12	)		—			0.18			(0.12	)		—
Tax reform impact		—			—			—			—			—			—
Restructuring costs		0.00			—			—			0.23			—			—
Tax effect of adjusting items		(0.23	)		(0.14	)		(0.02	)		(0.80	)		(0.37	)		(0.06	)
Non-GAAP diluted earnings per share	$	0.84		$	0.60		$	0.59		$	3.04		$	2.32		$	2.06
(1) see footnote 1 to the Non-GAAP Adjusted EBITDA Reconciliation Table above for the detail of these costs.
* amounts may not add due to rounding.

Non-GAAP Free Cash Flow Reconciliation Table:

	Three Months Ended									Year Ended
	December 31,									December 31,
*(In thousands)*	2024			2023			2022			2024			2023			2022
Net cash provided by operating activities	$	210,338		$	104,674		$	63,975		$	520,638		$	243,499		$	178,468
Purchases of property and equipment		(17,111	)		(22,881	)		(18,340	)		(115,429	)		(78,274	)		(74,047	)
Free cash flow	$	193,227		$	81,793		$	45,635		$	405,209		$	165,225		$	104,421

Non-GAAP Net Sales on a Constant Currency Basis Comparative Table:

	Three Months Ended				Reported			Currency Impact on			Constant Currency
	December 31,				Net Sales			Current			Net Sales
*(In thousands, except percentages)*	2024		2023		Growth			Period Net Sales			Growth
United States	$	521,892	$	490,841		6.3	%	$	—			6.3	%
International		135,401		125,693		7.7	%		(1,490	)		8.9	%
Total net sales	$	657,293	$	616,534		6.6	%	$	(1,490	)		6.9	%

	Year Ended				Reported			Currency Impact on			Constant Currency
	December 31,				Net Sales			Current			Net Sales
*(In thousands, except percentages)*	2024		2023		Growth			Period Net Sales			Growth
United States	$	2,000,067	$	1,279,765		56.3	%	$	—			56.3	%
International		519,288		288,711		79.9	%		(8,090	)		82.7	%
Total net sales	$	2,519,355	$	1,568,476		60.6	%	$	(8,090	)		61.1	%

Contact:

Brian Kearns

Senior Vice President, Business Development and Investor Relations

Phone: (610) 930-1800

Email: investors@globusmedical.com

www.globusmedical.com

Globus Medical Reports Fourth Quarter and Full Year 2024 Results