ZimVie Inc.

First-quarter 2025 net sales were $112 million, down 5.2% reported and 4.1% in constant currency; when normalized for the expired transition manufacturing agreement, one less selling day, and the shift away from oral scanners in China, constant-currency net sales declined 1.4%. U.S. sales were $65.8 million, down 2.8%, and outside the U.S. sales were $46.2 million, down 8.5% reported and 5.9% constant currency. Adjusted cost of products sold was 33.6% of sales, versus 37.2% a year ago, and adjusted EBITDA was $17.6 million with a 15.7% margin, versus $12.5 million and 10.5% last year. Adjusted EPS from continuing operations was $0.27 versus $0.08 last year. For full year 2025, ZimVie reiterated revenue guidance of $445 million to $460 million, adjusted EBITDA of $65 million to $70 million, and adjusted EPS of $0.80 to $0.95. For Q2 2025, the company expects revenue of $112 million to $114 million and adjusted EBITDA margin of approximately 15% of sales.

Vafa Jamali emphasized that the company is seeing tangible benefits from its strategy to streamline manufacturing and supply chain, cut corporate overhead, and focus sales and R&D on proprietary premium implants. He said the commercial reset is beginning to play out, with better same-store sales trends, a stronger-than-expected immediate molar launch, and continued growth in biomaterials and digital dentistry excluding scanners. His tone was confident and upbeat, but grounded in a still-soft market and a need for continued execution.

Richard Heppenstall highlighted the key financial drivers behind the margin improvement: adjusted cost of products sold fell to 33.6% of sales, adjusted SG&A declined to $58.7 million from $60.3 million, and adjusted R&D fell to $5.4 million from $6.3 million. He noted adjusted EBITDA of $17.6 million and GAAP operating income and pretax income positivity in the quarter, while cash was $67 million, gross debt was about $220 million, and net debt was about $153 million. He also said the company funded the Costa Rica distributor acquisition with $3.3 million in cash, remains undrawn on its $175 million revolver, and will continue prioritizing debt reduction while staying open to tuck-in deals.

Analysts pressed on April implant unit improvement, pricing, regional weakness outside the U.S., Japan, and tariff/supply-chain exposure. Management said April showed improved same-store sales, the immediate molar launch is outperforming expectations, and pricing discipline remains selective because ZimVie operates mainly in the premium segment. On Japan, management said the market is healthy, ZimVie has a strong position there, and implant concierge could become one of the top growth drivers, while on tariffs they reiterated that manufacturing flexibility and node shifts should allow them to absorb roughly $3 million of annual cost within guidance.