Third quarter net sales of $2.001 billion increased 9.7% on a reported basis, 8.6% on a constant currency¹ basis and 5.0% on an organic constant currency¹ basis
Third quarter diluted earnings per share were $1.16; adjusted¹ diluted earnings per share were $1.90, an increase of 9.2%
For full-year 2025, Company maintains reported revenue growth guidance, reflecting the latest currency expectations, and narrows constant currency¹ and organic constant currency¹ revenue growth guidance

WARSAW, Ind., Nov. 5, 2025 /PRNewswire/ -- Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH) today reported financial results for the quarter ended September 30, 2025. The Company reported third quarter net sales of $2.001 billion, an increase of 9.7% over the prior year period, an increase of 8.6% on a constant currency¹ basis and an increase of 5.0% on an organic constant currency¹ basis. Net earnings for the third quarter were $230.9 million, or $377.0 million on an adjusted¹ basis.

Diluted earnings per share were $1.16 for the third quarter, and adjusted¹ diluted earnings per share were $1.90, an increase of 9.2%.

¹ Reconciliations of these measures to the corresponding U.S. generally accepted accounting principles measures are included in this press release.

"Our third quarter performance was anchored by 5.6% organic revenue growth in our critical U.S. business, driven by accelerated adoption of our key new products referred to as the 'Magnificent Seven,'" said Ivan Tornos, Chairman, President and CEO of Zimmer Biomet. "This is highly encouraging, especially as we prepare to launch a second round of new-to-the-world technologies, including the first fully autonomous robot in orthopedics and our iodine treated hip, the world's first orthopedic implant with Iodine Technology that inhibits bacterial adhesion and prevents biofilm formation to help address Periprosthetic Joint Infections. We are excited to launch our iodine treated hip in Japan soon, having received PMDA approval in September. All that said, our strong performance in the U.S. was partially offset by weakness in Latin America, Emerging Markets in Europe and non-core businesses, which emerged late in the quarter and are being addressed."

Recent Highlights

Completed the acquisition of Monogram Technologies, adding surgeon-guided semi- and fully autonomous robotic technology that will create the industry's broadest, most flexible portfolio of orthopedic robotics and navigation solutions.
Announced Japan PMDA approval of iTaperloc^®Complete and iG7 Hip System, the world's first orthopedic implants with iodine technology.
Launched two new foot and ankle solutions for complex trauma cases, continuing the track record of innovation from the Company's Paragon 28 business.
Recognized by Fortune as one of the best 100 companies to work for in Europe.
Showcased latest innovations at the American Association of Hip and Knee Surgeons Annual Meeting and the American Orthopedic Foot and Ankle Society Annual Conference.

Geographic and Product Category Sales

The following sales tables provide results by geography and product category for the three and nine-month periods ended September 30, 2025, as well as the percentage change compared to the applicable prior year period, on both a reported basis and a constant currency basis. Percentage change is also presented on an organic constant currency basis to exclude the impact on net sales from the April 2025 acquisition of Paragon 28, Inc. ("Paragon 28").

NET SALES - THREE MONTHS ENDED SEPTEMBER 30, 2025
(in millions, unaudited)


									Organic
						Constant			Constant
	Net					Currency			Currency
	Sales		% Change			% Change			% Change
Geographic Results
United States	$	1,164.0		10.6	%		10.6	%		5.6	%
International		837.3		8.5			5.9			4.2
Total	$	2,001.4		9.7	%		8.6	%		5.0	%
Product Categories
Knees
United States	$	440.1		3.5	%		3.5	%		3.5	%
International		352.3		10.2			7.8			7.8
Total		792.4		6.3			5.3			5.3
Hips
United States		264.7		4.0			4.0			4.0
International		241.5		6.4			3.6			3.6
Total		506.2		5.1			3.8			3.8
S.E.T. *		541.5		19.2			18.2			3.6
Technology & Data, Bone Cement and Surgical **		161.3		12.5			11.3			11.3
Total	$	2,001.4		9.7	%		8.6	%		5.0	%

* Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic
** Historically referred to as "Other"

NET SALES - NINE MONTHS ENDED SEPTEMBER 30, 2025
(in millions, unaudited)


									Organic
						Constant			Constant
	Net					Currency			Currency
	Sales		% Change			% Change			% Change
Geographic Results
United States	$	3,451.4		5.9	%		5.9	%		3.0	%
International		2,536.3		5.8			4.7			3.7
Total	$	5,987.7		5.9	%		5.4	%		3.3	%
Product Categories
Knees
United States	$	1,347.8		1.8	%		1.8	%		1.8	%
International		1,063.4		5.3			4.5			4.5
Total		2,411.2		3.3			3.0			3.0
Hips
United States		801.4		4.3			4.3			4.3
International		736.6		3.6			2.4			2.4
Total		1,538.1		4.0			3.4			3.4
S.E.T. *		1,562.6		13.5			13.1			4.5
Technology & Data, Bone Cement and Surgical **		475.9		2.2			1.5			1.5
Total	$	5,987.7		5.9	%		5.4	%		3.3	%

* Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic
** Historically referred to as "Other"

Amounts reported in millions are computed based on the actual amounts. As a result, the sum of the components reported in millions may not equal the total amount reported in millions due to rounding. Percentages presented are calculated from the underlying unrounded amounts.

Financial Guidance

The Company is maintaining reported revenue growth and adjusted² earnings per share guidance and narrowing full-year 2025 constant currency and organic constant currency¹ revenue growth guidance to reflect currency expectations:

Projected Year Ending December 31, 2025
	Previous Guidance	Updated Guidance
2025 Reported Revenue Change	6.7% - 7.7%	6.7% - 7.7%
Foreign Currency Exchange Impact	0.5 %	0.5% - 1.0%
2025 Constant Currency Revenue Change	6.2% - 7.2%	6.2% - 6.7%
2025 Organic Constant Currency Revenue Change⁽¹⁾	3.5% - 4.5%	3.5% - 4.0%
Adjusted Diluted EPS⁽²⁾	$8.10 - $8.30	$8.10 - $8.30

⁽¹⁾

Excludes the projected impact of the Paragon 28 acquisition. Reconciliation of this measure to the most directly comparable GAAP financial measure is included in this press release.

⁽²⁾

This measure is a non-GAAP financial measure for which a reconciliation to the most directly comparable GAAP financial measure is not available without unreasonable efforts. See "Forward-Looking Non-GAAP Financial Measures" below, which identifies the information that is unavailable without unreasonable efforts and provides additional information. It is probable that this forward-looking non-GAAP financial measure may be materially different from the corresponding GAAP financial measure.

Conference Call

The Company will conduct its third quarter investor conference call today, November 5, 2025, at 8:30 a.m. ET. The audio webcast can be accessed via Zimmer Biomet's Investor Relations website at https://investor.zimmerbiomet.com. It will be archived for replay following the conference call.

About the Company

Zimmer Biomet is a global medical technology leader with a comprehensive portfolio designed to maximize mobility and improve health. We seamlessly transform the patient experience through our innovative products and suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence.

With 90+ years of trusted leadership and proven expertise, Zimmer Biomet is positioned to deliver the highest quality solutions to patients and providers. Our legacy continues to come to life today through our progressive culture of evolution and innovation.

For more information about our product portfolio, our operations in 25+ countries and sales in 100+ countries or about joining our team, visit www.zimmerbiomet.com or follow on LinkedIn at www.linkedin.com/company/zimmerbiomet or X / Twitter at www.x.com/zimmerbiomet.

Website Information

We routinely post important information for investors on our website, www.zimmerbiomet.com, in the "Investor Relations" section. We use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts.

The information contained on, or that may be accessed through, our website or any other website referenced herein is not incorporated by reference into, and is not a part of, this document.

Note on Non-GAAP Financial Measures

This press release and our commentary in our investor conference call today include non-GAAP financial measures that differ from financial measures calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). These non-GAAP financial measures may not be comparable to similar measures reported by other companies and should be considered in addition to, and not as a substitute for, or superior to, other measures prepared in accordance with GAAP.

Net sales change information for the three and nine-month periods ended September 30, 2025 is presented on a GAAP (reported) basis and on a constant currency basis. Net sales change for those periods is also presented on an organic constant currency basis to exclude the impact on net sales from the April 2025 acquisition of Paragon 28. Constant currency percentage changes exclude the effects of foreign currency exchange rates. They are calculated by translating current and prior-period sales at the same predetermined exchange rate. The translated results are then used to determine year-over-year percentage increases or decreases. Projected revenue change information for the year ended December 31, 2025, is also presented on an organic constant currency basis. In addition to excluding the projected effects of foreign currency exchange rates, projected 2025 organic constant currency revenue change also excludes the projected impact on net sales from the April 2025 acquisition of Paragon 28.

Net earnings and diluted earnings per share for the three and nine-month periods ended September 30, 2025 and 2024 are presented on a GAAP (reported) basis and on an adjusted basis. These adjusted financial measures exclude the effects of certain items, which are detailed in the reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures presented later in the press release.

Free cash flow is an additional non-GAAP measure that is presented in this press release. Free cash flow is computed by deducting additions to instruments and other property, plant and equipment from net cash provided by operating activities.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this press release. This press release also contains supplemental reconciliations of additional non-GAAP financial measures that the Company presents in other contexts. These additional non-GAAP financial measures are computed from the most directly comparable GAAP financial measure as indicated in the applicable reconciliation.

Management uses non-GAAP financial measures internally to evaluate the performance of the business. Additionally, management believes these non-GAAP measures provide meaningful incremental information to investors to consider when evaluating the performance of the Company. Management believes these measures offer the ability to make period-to-period comparisons that are not impacted by certain items that can cause dramatic changes in reported income but that do not impact the fundamentals of our operations. The non-GAAP measures enable the evaluation of operating results and trend analysis by allowing a reader to better identify operating trends that may otherwise be masked or distorted by these types of items that are excluded from the non-GAAP measures. In addition, constant currency revenue, adjusted operating profit, adjusted diluted earnings per share and free cash flow are used as performance metrics in our incentive compensation programs.

Forward-Looking Non-GAAP Financial Measures

This press release and our commentary in our investor conference call today also include certain forward-looking non-GAAP financial measures for the year ending December 31, 2025. We calculate forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, we exclude the impact of certain charges related to initial compliance with the European Union Medical Device Regulation; restructuring and other cost reduction initiatives; acquisition, integration, divestiture and related; and certain legal and tax matters. We have not provided quantitative reconciliations of these forward-looking non-GAAP financial measures (other than projected 2025 organic constant currency revenue change) to the most directly comparable forward-looking GAAP financial measures because the excluded items are not available on a prospective basis without unreasonable efforts. For example, the timing of certain transactions is difficult to predict because management's plans may change. In addition, the Company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. It is probable that these forward-looking non-GAAP financial measures may be materially different from the corresponding GAAP financial measures.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding financial guidance, statements regarding macro pressures, including the impact of such pressures on our business, and any statements about our forecasts, expectations, plans, intentions, strategies or prospects. All statements other than statements of historical or current fact are, or may be deemed to be, forward-looking statements. Such statements are based upon the current beliefs, expectations and assumptions of management and are subject to significant risks, uncertainties and changes in circumstances that could cause actual outcomes and results to differ materially from the forward-looking statements. These risks, uncertainties and changes in circumstances include, but are not limited to: competition; pricing pressures; dependence on new product development, technological advances and innovation; changes in customer demand for our products and services caused by demographic changes, obsolescence, development of different therapies or other factors; our ability to attract, retain, develop and maintain adequate succession plans for the highly skilled employees, senior management, independent agents and distributors we need to support our business; shifts in the product category or regional sales mix of our products and services; the risks and uncertainties related to our ability to successfully execute our restructuring plans; control of costs and expenses; risks related to the ability to realize the anticipated benefits of our acquisitions, including the possibility that the expected benefits from such transactions will not be realized or will not be realized within the expected time period; the risk that acquired businesses will not be integrated successfully; the effects of business disruptions affecting us, our suppliers, customers or payors, either alone or in combination with other risks on our business and operations; the risks and uncertainties related to our ability to successfully integrate the operations, products, service providers, agents, employees, sales representatives and distributors of acquired companies; the effect of the potential disruption of management's attention from ongoing business operations due to integration matters related to mergers and acquisitions; the effect of mergers and acquisitions on our relationships with customers, suppliers and lenders and on our operating results and businesses generally; unplanned delays, disruptions and expenses attributable to our enterprise resource planning and other system updates; the ability to form and implement alliances; dependence on a limited number of suppliers for key raw materials and other inputs and for outsourced activities; the risk of disruptions in the supply of materials and components used in manufacturing or sterilizing our products; breaches or failures of our (or of our business partners' or other third parties') information technology systems or products, including by cyberattack, unauthorized access or theft; the outcome of government investigations; the impact of healthcare reform and cost containment measures, including efforts sponsored by government agencies, legislative bodies, the private sector and healthcare purchasing organizations, through reductions in reimbursement levels, repayment demands and otherwise; the impact of substantial indebtedness on our ability to service our debt obligations and/or refinance amounts outstanding under our debt obligations at maturity on terms favorable to us, or at all; changes in tax obligations arising from examinations by tax authorities and from changes in tax laws in jurisdictions where we do business, including as a result of the "base erosion and profit shifting" project undertaken by the Organisation for Economic Co-operation and Development and otherwise; challenges to the tax-free nature of the ZimVie Inc. spinoff transaction and the subsequent liquidation of our retained interest in ZimVie Inc.; the risk of additional tax liability due to the recategorization of our independent agents and distributors to employees; changes in tariffs relating to imports to the U.S. and other countries; the risk that material impairment of the carrying value of our intangible assets, including goodwill, could negatively affect our operating results; changes in general domestic and international economic conditions, including interest rate and currency exchange rate fluctuations; changes in general industry and market conditions, including domestic and international growth, inflation and currency exchange rates; the domestic and international business impact of political, social and economic instability, tariffs, trade restrictions and embargoes, sanctions, wars, disputes and other conflicts, including on our ability to operate in, export from or collect accounts receivable in affected countries; challenges relating to changes in and compliance with governmental laws and regulations affecting our U.S. and international businesses, including regulations of the U.S. Food and Drug Administration ("FDA") and other government regulators relating to medical products, healthcare fraud and abuse laws and data privacy and cybersecurity laws; the success of our quality and operational excellence initiatives; the ability to remediate matters identified in inspectional observations issued by the FDA and other regulators, while continuing to satisfy the demand for our products; product liability, intellectual property and commercial litigation losses; and the ability to obtain and maintain adequate intellectual property protection. A further list and description of these risks and uncertainties and other factors can be found in our Annual Report on Form 10-K for the year ended December 31, 2024, including in the sections captioned "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors," and our subsequent filings with the Securities and Exchange Commission (SEC). Copies of these filings are available online at www.sec.gov, www.zimmerbiomet.com or on request from us. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our filings with the SEC. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers of this press release are cautioned not to rely on these forward-looking statements since there can be no assurance that these forward-looking statements will prove to be accurate. This cautionary note is applicable to all forward-looking statements contained in this press release.

Note: Amounts reported in millions within this press release are computed based on the actual amounts. As a result, the sum of the components reported in millions may not equal the total amount reported in millions due to rounding. Certain columns and rows within tables may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying unrounded amounts.


ZIMMER BIOMET HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025 and 2024
(in millions, except per share amounts, unaudited)

	2025		2024
Net Sales	$	2,001.4	$	1,824.2
Cost of products sold, excluding intangible asset amortization		559.3		538.6
Intangible asset amortization		176.5		148.2
Research and development		115.9		111.6
Selling, general and administrative		811.4		709.7
Restructuring and other cost reduction initiatives		21.4		32.2
Acquisition, integration, divestiture and related		(34.4)		4.4
Operating expenses		1,650.1		1,544.7
Operating Profit		351.3		279.5
Other income, net		3.3		5.1
Interest expense, net		(75.4)		(54.3)
Earnings before income taxes		279.2		230.3
Provision (benefit) for income taxes		48.0		(18.9)
Net Earnings		231.2		249.2
Less: Net earnings attributable to noncontrolling interest		0.3		0.2
Net Earnings of Zimmer Biomet Holdings, Inc.	$	230.9	$	249.1

Earnings Per Common Share
Basic	$	1.17	$	1.23
Diluted	$	1.16	$	1.23
Weighted Average Common Shares Outstanding
Basic		198.1		202.3
Diluted		198.8		203.0


ZIMMER BIOMET HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 and 2024
(in millions, except per share amounts, unaudited)

	2025		2024
Net Sales	$	5,987.7	$	5,655.4
Cost of products sold, excluding intangible asset amortization		1,701.3		1,604.5
Intangible asset amortization		488.2		434.3
Research and development		339.8		328.9
Selling, general and administrative		2,384.9		2,182.9
Restructuring and other cost reduction initiatives		74.9		198.1
Acquisition, integration, divestiture and related		55.0		9.9
Operating expenses		5,044.1		4,758.6
Operating Profit		943.6		896.7
Other income, net		10.1		7.0
Interest expense, net		(220.9)		(156.1)
Earnings before income taxes		732.8		747.6
Provision for income taxes		165.6		82.5
Net Earnings		567.2		665.1
Less: Net earnings attributable to noncontrolling interest		1.4		0.8
Net Earnings of Zimmer Biomet Holdings, Inc.	$	565.8	$	664.3

Earnings Per Common Share
Basic	$	2.85	$	3.25
Diluted	$	2.84	$	3.24
Weighted Average Common Shares Outstanding
Basic		198.3		204.4
Diluted		199.0		205.2

ZIMMER BIOMET HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, unaudited)

	September 30,		December 31,
	2025		2024
Assets
Cash and cash equivalents	$	1,292.7	$	525.5
Receivables, net		1,598.3		1,480.7
Inventories		2,483.7		2,235.3
Other current assets		460.3		430.1
Total current assets		5,834.9		4,671.5
Property, plant and equipment, net		2,194.3		2,048.8
Goodwill		9,702.0		8,951.1
Intangible assets, net		4,739.7		4,598.4
Other assets		1,017.2		1,095.5
Total Assets	$	23,488.0	$	21,365.3
Liabilities and Stockholders' Equity
Current liabilities	$	1,802.9	$	1,587.9
Current portion of long-term debt		600.0		863.0
Other long-term liabilities		806.4		1,096.6
Long-term debt		7,512.6		5,341.6
Stockholders' equity		12,766.0		12,476.2
Total Liabilities and Stockholders' Equity	$	23,488.0	$	21,365.3

ZIMMER BIOMET HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 and 2024
(in millions, unaudited)

	2025		2024
Cash flows provided by (used in) operating activities
Net earnings	$	567.2	$	665.1
Depreciation and amortization		809.8		732.7
Share-based compensation		66.1		79.9
Changes in operating assets and liabilities, net of acquired assets and liabilities
Income taxes		(174.7)		(181.2)
Receivables		(15.6)		(40.1)
Inventories		(86.2)		(38.0)
Accounts payable and accrued liabilities		(11.1)		(204.7)
Other assets and liabilities		24.1		(20.5)
Net cash provided by operating activities		1,179.7		993.1
Cash flows provided by (used in) investing activities
Additions to instruments		(226.2)		(188.4)
Additions to other property, plant and equipment		(149.7)		(152.3)
Net investment hedge settlements		(5.3)		19.3
Business combination investments, net of acquired cash		(1,226.3)		(116.3)
Acquisition of intangible assets		(42.4)		(119.6)
Other investing activities		(3.8)		(39.7)
Net cash used in investing activities		(1,653.7)		(596.9)
Cash flows provided by (used in) financing activities
Net payments on revolving facilities		-		(50.0)
Proceeds from senior notes		2,492.1		700.0
Redemption of senior notes		(863.0)		-
Dividends paid to stockholders		(142.8)		(148.0)
Proceeds from employee stock compensation plans		38.0		81.6
Business combination contingent consideration payments		(25.0)		(3.5)
Debt issuance costs		(22.7)		(7.9)
Deferred business combination payments		-		(8.8)
Repurchase of common stock		(237.0)		(795.8)
Other financing activities		(16.6)		(11.5)
Net cash provided by (used in) financing activities		1,223.0		(243.9)
Effect of exchange rates on cash and cash equivalents		18.2		1.0
Change in cash and cash equivalents		767.2		153.3
Cash and cash equivalents, beginning of year		525.5		415.8
Cash and cash equivalents, end of period	$	1,292.7	$	569.0

ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF REPORTED NET SALES % CHANGE TO
CONSTANT CURRENCY AND ORGANIC CONSTANT CURRENCY % CHANGE
(unaudited)


	For the Three Months Ended
	September 30, 2025 vs. 2024
													Organic
				Foreign			Constant			Paragon			Constant
				Exchange			Currency			28			Currency
	% Change			Impact			% Change			Impact			% Change
Geographic Results
United States		10.6	%		-	%		10.6	%		5.0	%		5.6	%
International		8.5			2.6			5.9			1.7			4.2
Total		9.7	%		1.1	%		8.6	%		3.6	%		5.0	%
Product Categories
Knees
United States		3.5	%		-	%		3.5	%		-	%		3.5	%
International		10.2			2.4			7.8			-			7.8
Total		6.3			1.0			5.3			-			5.3
Hips
United States		4.0			-			4.0			-			4.0
International		6.4			2.8			3.6			-			3.6
Total		5.1			1.3			3.8			-			3.8
S.E.T.		19.2			1.0			18.2			14.6			3.6
Technology & Data, Bone Cement and Surgical		12.5			1.2			11.3			-			11.3
Total		9.7	%		1.1	%		8.6	%		3.6	%		5.0	%

ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF REPORTED NET SALES % CHANGE TO
CONSTANT CURRENCY AND ORGANIC CONSTANT CURRENCY % CHANGE
(unaudited)


	For the Nine Months Ended
	September 30, 2025 vs. 2024
													Organic
				Foreign			Constant			Paragon			Constant
				Exchange			Currency			28			Currency
	% Change			Impact			% Change			Impact			% Change
Geographic Results
United States		5.9	%		-	%		5.9	%		2.9	%		3.0	%
International		5.8			1.1			4.7			1.0			3.7
Total		5.9	%		0.5	%		5.4	%		2.1	%		3.3	%
Product Categories
Knees
United States		1.8	%		-	%		1.8	%		-	%		1.8	%
International		5.3			0.8			4.5			-			4.5
Total		3.3			0.3			3.0			-			3.0
Hips
United States		4.3			-			4.3			-			4.3
International		3.6			1.2			2.4			-			2.4
Total		4.0			0.6			3.4			-			3.4
S.E.T.		13.5			0.4			13.1			8.6			4.5
Technology & Data, Bone Cement and Surgical		2.2			0.7			1.5			-			1.5
Total		5.9	%		0.5	%		5.4	%		2.1	%		3.3	%

ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF PROJECTED FULL-YEAR 2025 REPORTED REVENUE CHANGE TO
ORGANIC CONSTANT CURRENCY REVENUE CHANGE
(unaudited)


	Projected
	Full-year 2025
Reported revenue change	6.7 - 7.7	%
Less: Foreign currency exchange impact	0.5 - 1.0
Less: Paragon 28	2.7
Organic constant currency revenue change	3.5 - 4.0	%

ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF REPORTED TO ADJUSTED RESULTS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025 and 2024
(in millions, except per share amounts, unaudited)


FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025
	Cost of products sold, excluding intangible asset amortization		Intangible asset amortization		Research and development		Selling, general and administrative		Restructuring and other cost reduction initiatives		Acquisition, integration, divestiture and related		Other income, net		Provision (benefit) for income taxes		Net Earnings of Zimmer Biomet Holdings, Inc.		Diluted earnings per common share
As Reported	$	559.3	$	176.5	$	115.9	$	811.4	$	21.4	$	(34.4)	$	3.3	$	48.0	$	230.9	$	1.16
Inventory and manufacturing- related charges⁽¹⁾		(10.9)		-		-		-		-		-		-		3.0		7.9		0.04
Intangible asset amortization⁽²⁾		-		(176.5)		-		-		-		-		-		34.3		142.2		0.72
Restructuring and other cost reduction initiatives⁽³⁾		-		-		-		-		(21.4)		-		-		0.3		21.1		0.11
Acquisition, integration, divestiture and related⁽⁴⁾		-		-		-		-		-		34.4		-		1.5		(35.9)		(0.18)
Litigation⁽⁵⁾		-		-		-		(0.8)		-		-		-		0.2		0.6		-
European Union Medical Device Regulation⁽⁶⁾		-		-		(4.7)		-		-		-		-		1.1		3.6		0.02
Other charges⁽⁷⁾		-		-		-		0.2		-		-		0.1		(0.1)		-		-
Other certain tax adjustments⁽⁸⁾		-		-		-		-		-		-		-		(6.6)		6.6		0.03
As Adjusted	$	548.5	$	-	$	111.1	$	810.8	$	-	$	-	$	3.4	$	81.7	$	377.0	$	1.90

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024
	Cost of products sold, excluding intangible asset amortization		Intangible asset amortization		Research and development		Selling, general and administrative		Restructuring and other cost reduction initiatives		Acquisition, integration, divestiture and related		Other income, net		Provision (benefit) for income taxes		Net Earnings of Zimmer Biomet Holdings, Inc.		Diluted earnings per common share
As Reported	$	538.6	$	148.2	$	111.6	$	709.7	$	32.2	$	4.4	$	5.1	$	(18.9)	$	249.1	$	1.23
Inventory and manufacturing- related charges⁽¹⁾		(9.4)		-		-		-		-		-		-		3.0		6.4		0.03
Intangible asset amortization⁽²⁾		-		(148.2)		-		-		-		-		-		33.2		115.0		0.57
Restructuring and other cost reduction initiatives⁽³⁾		-		-		-		-		(32.2)		-		-		(2.6)		34.8		0.17
Acquisition, integration, divestiture and related⁽⁴⁾		-		-		-		-		-		(4.4)		-		0.4		4.0		0.02
Litigation⁽⁵⁾		-		-		-		0.1		-		-		-		0.7		(0.8)		-
European Union Medical Device Regulation⁽⁶⁾		-		-		(7.6)		-		-		-		-		1.8		5.8		0.03
Other charges⁽⁷⁾		-		-		-		1.0		-		-		(1.7)		(0.6)		(2.1)		(0.01)
Other certain tax adjustments⁽⁸⁾		-		-		-		-		-		-		-		59.0		(59.0)		(0.29)
As Adjusted	$	529.2	$	-	$	104.0	$	710.7	$	-	$	-	$	3.4	$	76.0	$	353.2	$	1.74

ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF REPORTED TO ADJUSTED RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 and 2024
(in millions, except per share amounts, unaudited)

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025
	Cost of products sold, excluding intangible asset amortization		Intangible asset amortization		Research and development		Selling, general and administrative		Restructuring and other cost reduction initiatives		Acquisition, integration, divestiture and related		Other income, net		Interest expense, net		Provision for income taxes		Net Earnings of Zimmer Biomet Holdings, Inc.		Diluted earnings per common share
As Reported	$	1,701.3	$	488.2	$	339.8	$	2,384.9	$	74.9	$	55.0	$	10.1	$	(220.9)	$	165.6	$	565.8	$	2.84
Inventory and manufacturing- related charges⁽¹⁾		(34.1)		-		-		-		-		-		-		-		9.8		24.3		0.12
Intangible asset amortization⁽²⁾		-		(488.2)		-		-		-		-		-		-		95.1		393.1		1.98
Restructuring and other cost reduction initiatives⁽³⁾		-		-		-		-		(74.9)		-		-		-		11.4		63.5		0.32
Acquisition, integration, divestiture and related⁽⁴⁾		-		-		-		-		-		(55.0)		-		-		16.8		38.2		0.19
Litigation⁽⁵⁾		-		-		-		(0.8)		-		-		-		-		0.2		0.6		-
European Union Medical Device Regulation⁽⁶⁾		-		-		(13.4)		-		-		-		-		-		3.0		10.4		0.05
Other charges⁽⁷⁾		-		-		-		-		-		-		(0.4)		5.6		2.7		2.5		0.01
Other certain tax adjustments⁽⁸⁾		-		-		-		-		-		-		-		-		(50.9)		50.9		0.26
As Adjusted	$	1,667.2	$	-	$	326.4	$	2,384.1	$	-	$	-	$	9.7	$	(215.3)	$	253.7	$	1,149.3	$	5.78

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024
	Cost of products sold, excluding intangible asset amortization		Intangible asset amortization		Research and development		Selling, general and administrative		Restructuring and other cost reduction initiatives		Acquisition, integration, divestiture and related		Other income, net		Provision for income taxes		Net Earnings of Zimmer Biomet Holdings, Inc.		Diluted earnings per common share
As Reported	$	1,604.5	$	434.3	$	328.9	$	2,182.9	$	198.1	$	9.9	$	7.0	$	82.5	$	664.3	$	3.24
Inventory and manufacturing- related charges⁽¹⁾		(13.2)		-		-		-		-		-		-		5.0		8.2		0.04
Intangible asset amortization⁽²⁾		-		(434.3)		-		-		-		-		-		90.4		343.9		1.68
Restructuring and other cost reduction initiatives⁽³⁾		-		-		-		-		(198.1)		-		-		34.5		163.6		0.80
Acquisition, integration, divestiture and related⁽⁴⁾		-		-		-		-		-		(9.9)		-		1.4		8.5		0.04
Litigation⁽⁵⁾		-		-		-		-		-		-		-		0.7		(0.7)		-
European Union Medical Device Regulation⁽⁶⁾		-		-		(20.9)		-		-		-		-		4.9		16.0		0.08
Other charges⁽⁷⁾		-		-		-		0.9		-		-		4.7		1.3		2.5		0.01
Other certain tax adjustments⁽⁸⁾		-		-		-		-		-		-		-		38.5		(38.5)		(0.19)
As Adjusted	$	1,591.3	$	-	$	308.0	$	2,183.9	$	-	$	-	$	11.7	$	259.3	$	1,167.9	$	5.69


⁽¹⁾	Inventory and manufacturing-related charges include inventory step-up expense, excess and obsolete inventory charges on certain product lines we intend to discontinue, the acceleration of depreciation and fixed overhead costs expensed immediately related to a manufacturing plant shutdown, and other inventory and manufacturing-related charges or gains. Inventory step-up expense represents the incremental expense of inventory sold recognized at its fair value after business combination accounting is applied versus the expense that would have been recognized if sold at its cost to manufacture. Since only the inventory that existed at the business combination date was stepped-up to fair value, we believe excluding the incremental expense provides investors useful information as to what our costs may have been if we had not been required to increase the inventory's book value to fair value.
⁽²⁾	We exclude intangible asset amortization as well as deferred tax rate changes on our intangible assets from our non-GAAP financial measures because we internally assess our performance against our peers without this amortization. Due to various levels of acquisitions among our peers, intangible asset amortization can vary significantly from company to company.
⁽³⁾	In December 2019, 2021 and 2023, and in February 2025, we initiated global restructuring programs that included a reorganization of key businesses and an overall effort to reduce costs in order to accelerate decision-making, focus the organization on priorities to drive growth and, in the case of the December 2021 program, to prepare for the spinoff of ZimVie, Inc. ("ZimVie"). Restructuring and other cost reduction initiatives also include other cost reduction and optimization initiatives that have the goal of reducing costs across the organization. The costs include employee termination benefits; contract terminations for facilities and sales agents; and other charges, such as consulting fees, project management expenses, retention period salaries and benefits and relocation costs.
⁽⁴⁾	The acquisition, integration, divestiture and related gains and expenses we have excluded from our non-GAAP financial measures resulted from various acquisitions, post-separation costs we have incurred related to ZimVie and gains related to a transition services agreement for services we provide to ZimVie and a transition manufacturing and supply agreement for products we supply to ZimVie for a limited period. In the three and nine-month periods ended September 30, 2025, this line item includes $55.1 million and $62.8 million of gains, respectively, related to declines in the estimated fair values of contingent consideration due to updated forecasts of net sales from certain acquisitions. In the nine-month period ended September 30, 2025, this line item includes $43.4 million of compensation expense related to the discretionary accelerated vesting of Paragon 28 unvested restricted stock units as agreed upon as part of the merger agreement.
⁽⁵⁾	We are involved in patent litigation, product liability litigation, commercial litigation and other various litigation matters. We review litigation matters from both a qualitative and quantitative perspective to determine if excluding the losses or gains will provide our investors with useful incremental information. Litigation matters can vary in their characteristics, frequency and significance to our operating results. The litigation charges and gains excluded from our non-GAAP financial measures in the periods presented relate to commercial litigation, patent litigation and product liability litigation. Once the litigation matter has been excluded from our non-GAAP financial measures in a particular period, any additional expenses or gains from changes in estimates are also excluded, even if they are not significant, to ensure consistency in our non-GAAP financial measures from period-to-period.
⁽⁶⁾	The European Union Medical Device Regulation imposes significant additional premarket and postmarket requirements. The new regulations provided a transition period until May 2021 for previously-approved medical devices to meet the additional requirements. For certain devices, this transition period was extended until May 2024. A conditional extension of the transition period has been implemented until December 2027 and 2028 depending on the legacy medical device's risk class. We are excluding from our non-GAAP financial measures the incremental costs incurred to establish initial compliance with the regulations related to our previously-approved medical devices. The incremental costs primarily relate to temporary personnel and third-party professionals necessary to supplement our internal resources.
⁽⁷⁾	We have incurred other various expenses from specific events or projects that we consider highly variable or that have a significant impact to our operating results that we have excluded from our non-GAAP measures. These include gains and losses from changes in fair value on our equity investments, among other various costs. In addition, in February 2025 we issued senior notes in order to have the necessary cash-on-hand to acquire Paragon 28 once regulatory approval was received. We have excluded from our non-GAAP financial measures the interest on this debt related to the principal amount of the estimated purchase price and acquisition-related costs up through the acquisition date. Interest expense subsequent to the acquisition date has not been excluded.
⁽⁸⁾	Other certain tax adjustments are related to certain significant and discrete tax adjustments including intercompany transactions between jurisdictions, ongoing impacts of tax only amortization resulting from certain restructuring transactions, and impacts of significant tax reform including Swiss reform. In June 2025, we recognized tax expense related to certain unremitted foreign earnings that were previously expected to remain permanently reinvested in those foreign subsidiaries.

ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING
ACTIVITIES TO FREE CASH FLOW
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 and 2024
(in millions, unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Net cash provided by operating activities	$	418.7	$	395.7	$	1,179.7	$	993.1
Additions to instruments		(86.0)		(41.2)		(226.2)		(188.4)
Additions to other property, plant and equipment		(55.1)		(44.5)		(149.7)		(152.3)
Free cash flow	$	277.6	$	310.0	$	803.8	$	652.4

ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF GROSS PROFIT & MARGIN
TO ADJUSTED GROSS PROFIT & MARGIN
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 and 2024
(in millions, unaudited)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
Net Sales	$	2,001.4		$	1,824.2		$	5,987.7		$	5,655.4
Cost of products sold, excluding intangible asset amortization		559.3			538.6			1,701.3			1,604.5
Intangible asset amortization		176.5			148.2			488.2			434.3
Gross Profit	$	1,265.6		$	1,137.4		$	3,798.2		$	3,616.6

Inventory and manufacturing-related charges		10.9			9.4			34.1			13.2
Intangible asset amortization		176.5			148.2			488.2			434.3
Adjusted gross profit	$	1,452.9		$	1,295.0		$	4,320.5		$	4,064.1


Gross margin		63.2	%		62.4	%		63.4	%		63.9	%
Inventory and manufacturing-related charges		0.5			0.5			0.6			0.2
Intangible asset amortization		8.8			8.1			8.2			7.7
Adjusted gross margin		72.6	%		71.0	%		72.2	%		71.8	%

ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF OPERATING PROFIT & MARGIN TO ADJUSTED OPERATING PROFIT & MARGIN
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 and 2024
(in millions, unaudited)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
Operating profit	$	351.3		$	279.5		$	943.6		$	896.7
Inventory and manufacturing-related charges		10.9			9.4			34.1			13.2
Intangible asset amortization		176.5			148.2			488.2			434.3
Restructuring and other cost reduction initiatives		21.4			32.2			74.9			198.1
Acquisition, integration, divestiture and related		(34.4)			4.4			55.0			9.9
Litigation		0.8			(0.1)			0.8			-
European Union Medical Device Regulation		4.7			7.6			13.4			20.9
Other charges		(0.2)			(1.0)			-			(0.9)
Adjusted operating profit	$	531.0		$	480.2		$	1,610.0		$	1,572.3


Operating profit margin		17.6	%		15.3	%		15.8	%		15.9	%
Inventory and manufacturing-related charges		0.5			0.5			0.6			0.2
Intangible asset amortization		8.8			8.1			8.2			7.7
Restructuring and other cost reduction initiatives		1.1			1.8			1.3			3.5
Acquisition, integration, divestiture and related		(1.7)			0.2			0.9			0.2
European Union Medical Device Regulation		0.2			0.4			0.2			0.4
Other charges		-			(0.1)			-			-
Adjusted operating profit margin		26.5	%		26.3	%		26.9	%		27.8	%

ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF EFFECTIVE TAX RATE TO ADJUSTED EFFECTIVE TAX RATE
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 and 2024
(unaudited)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
Effective tax rate		17.2	%		(8.2)	%		22.6	%		11.0	%
Tax effect of adjustments made to earnings before taxes⁽¹⁾		3.0			0.3			2.4			2.1
Other certain tax adjustments ⁽²⁾		(2.4)			25.6			(6.9)			5.1
Adjusted effective tax rate		17.8	%		17.7	%		18.1	%		18.2	%

⁽¹⁾ Includes inventory and manufacturing-related charges; intangible asset amortization; restructuring and other cost reduction initiatives; acquisition, integration, divestiture and related; litigation; European Union Medical Device Regulation; and other charges
⁽²⁾ Other certain tax adjustments are related to certain significant and discrete tax adjustments including intercompany transactions between jurisdictions, ongoing impacts of tax only amortization resulting from certain restructuring transactions, and impacts of significant tax reform including Swiss reform. In June 2025 we recognized tax expense related to certain unremitted foreign earnings that were previously expected to remain permanently reinvested in those foreign subsidiaries.

ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF DEBT TO NET DEBT
AS OF SEPTEMBER 30, 2025 and DECEMBER 31, 2024
(in millions, unaudited)


	September 30, 2025		December 31, 2024
Debt, both current and long-term	$	8,112.6	$	6,204.6
Cash and cash equivalents		(1,292.7)		(525.5)
Net debt	$	6,819.9	$	5,679.1

Media	Investors
Troy Kirkpatrick	David DeMartino
614-284-1926	646-531-6115
troy.kirkpatrick@zimmerbiomet.com	david.demartino@zimmerbiomet.com

Kirsten Fallon	Zach Weiner
781-779-5561	908-591-6955
kirsten.fallon@zimmerbiomet.com	zach.weiner@zimmerbiomet.com

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SOURCE Zimmer Biomet Holdings, Inc.