Bioventus Inc.

Bioventus reported second-quarter revenue of $153 million, up 4% year over year. Adjusted EBITDA was $35 million, increasing by over $1 million year over year, with adjusted EBITDA margin of 23%, up 20 basis points. Adjusted EPS was $0.22 versus $0.21 last year, and adjusted gross margin was 75%, down 90 basis points due mainly to higher freight costs and product mix. By segment, Pain Treatments revenue was $82 million, up 12%; Surgical Solutions was $50 million, down 5%; Restorative Therapies was $21 million, down 2%; and International was $19 million, down 1% or 2% in constant currency. For the full year, management reaffirmed guidance for revenue of $600 million to $610 million, adjusted EPS of $0.75 to $0.79, and cash from operations of $84 million to $89 million. Management also said adjusted EBITDA margin should remain at least 20% for the year.

Rob Claypoole framed the quarter as evidence that Bioventus is executing on its plan to grow revenue, expand earnings, and strengthen cash flow at the same time. He highlighted strong momentum in HA/DUROLANE, improving traction in PRP, PNS, Ultrasonics, and International, and said these leading indicators increase confidence in second-half acceleration. He also addressed the strategic review, saying the board committee will evaluate all options, including a sale or continued stand-alone execution, to maximize shareholder value.

Mark Singleton said the quarter reflected the combination of durable core growth and peer-leading gross margin, which is funding investment into four growth drivers. He reported $153 million of revenue, $35 million of adjusted EBITDA, 23% adjusted EBITDA margin, and $0.22 of adjusted EPS, plus adjusted gross margin of 75%, down 90 basis points year over year. On cash and leverage, he cited $20 million of operating cash flow, $29 million of cash on hand, $248 million of debt, $24 million of debt repayment in the quarter, and total debt paydown of $46 million year to date. He said the company expects cash from operations to roughly double in the second half versus the first half and reiterated full-year guidance for revenue, EPS, and cash flow.

Analysts pressed on HA pricing versus volume, competitive dynamics in single-injection therapy, and whether both Bioventus and a leading competitor can gain volume simultaneously; management said Q2 growth was led by double-digit volume growth for DUROLANE and emphasized clinical differentiation, broad private payer coverage, and commercial strength. Questions on Surgical Solutions focused on the $2 million timing shift and whether BGS business had been intentionally walked away from; management said there were proactive channel actions for profitable growth, plus strong sequential growth and traction in new accounts and disposables, but did not quantify the BGS impact. Analysts also asked about PRP, PNS evidence generation, EXOGEN payer mix and CMS pricing reversal, and the strategic review; management said PRP placements and reorders are accelerating, PNS is seeing strong adoption and conversion, EXOGEN should grow low to mid-single digits in the back half, and the strategic review was triggered by unsolicited interest and is now in the board’s hands.