Net Sales

-4% (Q1 2025: $123.876M vs Q1 2024: $129.457M)

Overall net sales declined 4% YoY, primarily due to a 35% drop in Restorative Therapies (from $30.474M to $19.724M) which more than outweighed modest gains in Pain Treatments and Surgical Solutions. " " " " " "

Pain Treatments

Increase (from $56.689M in Q1 2024 to $58.918M in Q1 2025)

Pain Treatments experienced modest revenue growth likely driven by continued volume increases and sustained market performance building on prior investments. " "

Surgical Solutions

+7% (from $42.294M in Q1 2024 to $45.234M in Q1 2025)

Surgical Solutions improved significantly due to strong volume performance and potential benefits from product reclassification or strategic focus, continuing the momentum seen in previous periods. " " " "

Restorative Therapies

-35% (from $30.474M in Q1 2024 to $19.724M in Q1 2025)

Restorative Therapies sharply declined by 35% YoY as a result of strategic divestitures and reduced volume, dramatically affecting its contribution relative to the higher baseline in the previous period. " " " "

Gross Profit

-6% (from $88.380M in Q1 2024 to $83.056M in Q1 2025)

Gross profit fell by 6% in alignment with lower overall net sales and a less favorable product mix, particularly due to the reduced output from the high-margin Restorative Therapies segment. " "

Operating Income

-8.6% (from $5.327M in Q1 2024 to $4.869M in Q1 2025)

Operating income decreased by 8.6% because the decline in gross profit margins combined with persistent fixed costs put pressure on operating performance compared to the previous period. " "

Net Loss

44% reduction (loss narrowed from $(5.982)M in Q1 2024 to $(3.322)M in Q1 2025)

Net loss improved by 44% YoY, indicating that cost-control measures or favorable non-operating adjustments partially offset the operating challenges despite lower sales and margins. " "

R&D Expenses

+16% (from $2.597M in Q1 2024 to $3.011M in Q1 2025)

R&D expenses increased by 16%, reflecting an intentional ramp-up in investments to drive innovation and future revenue growth, building on a stable baseline from prior periods. " "

Net Cash from Operating Activities

More negative by approximately $13.326M (from –$6.005M in Q1 2024 to –$19.331M in Q1 2025)

Operating cash flow deteriorated significantly, likely due to increased working capital requirements (e.g., higher inventory purchases) and rising operating costs, contrasting sharply with the less negative figures in Q1 2024. " "

Organic Revenue Growth

FY 2025

no prior guidance

6% to 8% "

no prior guidance

Adjusted EBITDA

FY 2025

$112 million to $116 million "

$112 million to $116 million "

no change

EPS

FY 2025

$0.64 to $0.68 "

$0.64 to $0.68 "

no change

Clinical differentiation

Emphasized across Q2 (noting DUROLANE’s clinical edge " " " ), Q3 (highlighting its role in market share gains and double‐digit growth " " " ), and Q4 (underscoring clinical differentiation as a key competitive advantage " " " " )

Q1 2025 continues to stress the clinical differentiation of DUROLANE, HA therapies, and Pain Treatments with emphasis on strong contract presence and double-digit growth " "

Consistent emphasis with sustained positive sentiment and clearer account validation.

Double-digit growth targets and revenue guidance performance

Q2, Q3 and Q4 detailed robust revenue growth targets, upgraded guidance and multiple segments (Surgical Solutions, Pain Treatments, Exogen) delivering double-digit or above‐market growth " " " "

Q1 2025 highlighted double-digit growth in segments like Surgical Solutions and Pain Treatments and provided nuanced revenue guidance with an expected acceleration in H2 " " " "

Steady focus with a forward‐looking note emphasizing second‐half acceleration.

Margin pressures and pricing vulnerabilities

Q2 reported margin improvements driven by a favorable product mix " " , Q3 noted stable margins with minor pricing tailwinds " " " , Q4 stressed high gross margins and disciplined pricing management " "

Q1 2025 reported a 70‑basis‑point decline in adjusted gross margin driven by channel mix and higher freight costs with caution around DUROLANE pricing dynamics " " " "

A shift toward acknowledging near‑term margin pressures and pricing vulnerabilities despite continued confidence in long‑term profitability.

Supply chain challenges in Bone Graft Substitutes segment

Q2 and Q3 acknowledged supply challenges and temporary distributor adjustments " " " while Q4 reported overcoming earlier challenges with improved onboarding and productivity "

Q1 2025 did not mention any supply chain challenges for BGS, suggesting the issue has been resolved "

The topic has effectively receded, indicating resolution and improved supply chain stability.

Strategic investments in R&D, sales force, and commercial execution

Q2 emphasized targeted and ROI‑driven investments in R&D and commercial execution " " , Q3 outlined expanded sales force collaboration and R&D initiatives to drive innovation " " " " , and Q4 detailed strategic investments improving sales force execution and medical education " " " " "

Q1 2025 did not dwell on new strategic investment details, though it briefly referenced enhanced sales force execution and new international leadership " " " "

A slight de‐emphasis in detailed discussion in Q1, indicating either successful implementation or a shift in focus toward operational execution.

Divestiture and portfolio optimization of lower‑margin businesses

Q2 described the intent and rationale for divesting the Advanced Rehabilitation business " " , Q3 detailed the divestiture agreement and strategic focus on core, higher‑margin businesses " " , and Q4 reported the successful divestiture and debt reduction benefits " "

Q1 2025 discussed the impact of the divestiture with noted revenue and EBITDA adjustments as part of portfolio optimization " " "

Consistent execution with clear communication of benefits streamlining the portfolio towards higher‑growth areas.

International expansion challenges and low‑margin impacts

Q2 mentioned delayed shipments impacting international growth and noted potential margin headwinds due to mix changes " " " , Q3 expressed optimism but acknowledged foundational work needed " " " , and Q4 focused on targeted geographic expansion with new leadership coming on board "

Q1 2025 reiterated that the international business remains small, introducing a new international business manager to refine the go‑to‑market strategy, while also noting lower margins from channel mix and higher freight costs " "

Ongoing challenge with renewed leadership and targeted strategy, reflecting both opportunity and near‑term margin concerns.

Ultrasonics business growth

Q2 emphasized strong growth with doubled generator sales and transformational opportunities " " " , Q3 celebrated double‑digit growth and early market penetration in a $1B opportunity " " " , and Q4 highlighted more than 20% revenue growth and a revolutionary product proposition " " " "

Q1 2025 reported robust double‑digit growth with capital sales in the US increasing by over 50% year‑over‑year, underscoring strong market momentum " "

A consistently strong growth narrative, with Q1 demonstrating particularly dynamic performance.

Balance sheet improvements and financial strength initiatives

Q2 noted increased operating cash flow and reduced net leverage " " , Q3 stressed liquidity improvements and reduction of net leverage below 3x along with healthy operational cash flows " " " , and Q4 showcased significant debt repayment, improved cash on hand, and reduced leverage to near 3x " " "

Q1 2025 focused on leverage reduction targets, improved cash flow expectations (despite a short-term outflow due to annual expenses), and plans to further lower leverage below 2.5x by year‑end " " " "

A continuous strong focus with incremental improvements and clear forward guidance, underscoring financial resiliency.

Reliance on second‑half rebound factors and account wins

Q2 and Q3 did not prominently mention these factors; Q4 mentioned second‑half growth expectations more indirectly through improved BGS onboarding and sustained overall momentum " "

Q1 2025 explicitly highlighted reliance on a strong second‑half rebound and recent account wins as key drivers for sustained growth, particularly in pain treatments " " "

A new emphasis in Q1 underscoring confidence in H2 performance and a more account‑win–oriented strategy.