Fubotv earnings beat by $0.10, revenue topped estimates
Introduction & Market Context
Bioventus Inc. (NYSE:NASDAQ:BVS) presented its second quarter 2025 financial results on August 6, 2025, highlighting organic growth across key segments despite a slight revenue decline due to a strategic divestiture. The medical device company, currently trading at $6.14 per share, has seen its stock decline 2.85% on August 5, 2025, reflecting ongoing market challenges despite operational improvements.
The company reported solid execution across its business units while achieving a significant regulatory milestone with FDA clearance for new peripheral nerve stimulation products. This comes as Bioventus continues its transformation toward higher-growth market segments while improving profitability and cash flow generation.
Quarterly Performance Highlights
Bioventus reported second quarter revenue of $148 million, representing a 2% year-over-year decline attributed to the divestiture of its Advanced Rehabilitation Business at the end of 2024. However, organic revenue growth reached 6%, demonstrating the underlying strength of the company’s core portfolio.
As shown in the following breakdown of performance by segment:
Surgical Solutions emerged as the standout performer with revenue increasing 11% to $53 million, driven by double-digit growth in Ultrasonics. Pain Treatments revenue increased modestly by 1% to $73 million, impacted by challenging prior-year comparisons. Restorative Therapies revenue declined 32% to $22 million due to the divestiture, though EXOGEN achieved impressive 11% organic growth within this segment.
The company delivered significant improvement in profitability metrics, with adjusted earnings per share of $0.21 representing a 31% increase year-over-year. Adjusted EBITDA remained stable at $34 million with a 23% margin, despite headwinds from the divestiture, unplanned foreign currency losses of $1.2 million, and more than $2 million in negative impact from foreign currency movements.
The following chart illustrates the company’s adjusted earnings performance:
Adjusted net income increased 45% to $18 million compared to $13 million in Q2 2024, primarily due to decreased interest expense and reduced employee equity-based compensation. Adjusted gross margin improved by 50 basis points to 76.3%, reflecting favorable product mix shifts.
Product Development and Growth Opportunities
A major highlight of the quarter was the FDA 510(k) clearance for StimTrial and TalisMann for Peripheral Nerve Stimulation (PNS), representing a significant growth opportunity in the non-opioid pain management market.
The following image shows these newly cleared products:
The PNS market is estimated to be growing above 20% annually in the U.S. and is expected to exceed $500 million by 2029, with an estimated total addressable market of approximately $2 billion. Bioventus plans to invest in a direct sales force in the second half of 2025, with a limited commercial release starting in Q3 2025 in select U.S. markets and a broader rollout expected in early 2026.
Management projects that these products have the potential to generate an estimated $100 million or more in revenue, significantly shifting the company’s portfolio toward higher-growth end markets. The StimTrial product enables physicians to evaluate patient response to PNS therapy before permanent implantation, while TalisMann combines patented electric field conduction technology with an integrated pulse generator to potentially reach deeper, larger nerves for long-term relief from chronic nerve pain.
Financial Position and Outlook
Bioventus ended the quarter with $33 million in cash and $341 million of debt outstanding. The company reported a significant acceleration in cash flow, with operating cash inflow of $26 million, marking a substantial improvement from the negative operating cash flow of $19 million reported in Q1 2025.
The company recently refinanced its credit facility with a new $300 million term loan and $100 million revolving credit facility, lowering the interest rate by 75 basis points and generating annual interest expense savings of over $2 million. The refinancing also improved liquidity by extending the term loan maturity to 2030 and increasing the revolver by $60 million, while reducing annual amortization from 10% to 5%.
Based on strong first-half performance and confidence in the remainder of the year, Bioventus reaffirmed its full-year 2025 guidance:
The company projects 2025 net sales of $560-570 million, representing organic growth of 6-8%, with adjusted EBITDA of $112-116 million and adjusted earnings per share of $0.64-0.68. This guidance incorporates approximately $5 million in combined impact from tariffs and foreign exchange expenses.
Management expects to nearly double cash from operations in 2025 compared to 2024 and reduce net leverage to below 2.5 times by year-end, driven by lower interest expense, reduced one-time cash costs, and operational efficiencies.
Forward-Looking Statements
Looking ahead, Bioventus is positioned to accelerate revenue growth, profitability, and cash flow in the second half of 2025. The company forecasts at least 100 basis points of adjusted EBITDA margin expansion for the full year despite negative foreign exchange impacts, driven by projected revenue growth acceleration and industry-leading gross margins.
Key growth drivers include the continued strong performance in Ultrasonics within Surgical Solutions, which benefits from enhanced precision and control for surgeons, reduced patient blood loss, and increased operating room efficiency. Additionally, Durolane is expected to serve as a platform for sustained above-market growth in hyaluronic acid treatments due to its clinical differentiation, dedicated commercial team, and strong private payer coverage.
The introduction of StimTrial and TalisMann represents perhaps the most significant long-term growth opportunity, potentially transforming Bioventus’s market position in the rapidly expanding peripheral nerve stimulation segment while diversifying the company’s revenue streams toward higher-growth markets.
Despite these positive developments, investors should note that Bioventus continues to face challenges, as evidenced by its stock performance. The share price has declined from $6.90 mentioned in the Q1 earnings reports to the current $6.14, suggesting ongoing market skepticism about the company’s transformation efforts despite operational improvements.
Full presentation:
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