Executive Summary

Q1 2025 net sales were $112.0M, down 5.2% YoY (4.1% CC), while adjusted EBITDA rose to $17.6M with a 15.7% margin, surpassing the post-spine-sale margin target; GAAP diluted EPS from continuing ops was $(0.09) and adjusted diluted EPS was $0.27 .
Against Wall Street consensus, ZimVie delivered an EPS beat and a slight revenue miss; EBITDA came in below SPGI’s EBITDA consensus definition, reflecting differing GAAP vs non-GAAP treatments; estimates detail below.*
Management reiterated FY 2025 guidance (Net sales $445–$460M, adj. EBITDA $65–$70M, adj. EPS $0.80–$0.95) and guided Q2 net sales to $112–$114M with ~15% adj. EBITDA margin, noting tariff mitigation plans around ~$3M annualized impact .
Narrative catalysts: margin execution ahead of plan, initial success of the immediate molar implant launch, improving digital adoption, and signs of implant unit upticks in April; management emphasized data-driven U.S. commercial execution and supply-chain flexibility .

What Went Well and What Went Wrong

What Went Well

Adjusted EBITDA margin expanded 520 bps YoY to 15.7%, exceeding the 15%+ target one year post spine divestiture, driven by manufacturing efficiencies and favorable mix toward implants/digital over low-margin scanners .
Immediate molar implant system launch (mid-March) exceeded internal growth expectations; RealGUIDE software sales grew mid-teens and Implant Concierge grew 11% YoY, underpinning digital traction and workflow benefits .
International operational actions and supply-chain flexibility (Florida/Valencia manufacturing nodes, OUS distribution node shifts) bolster tariff mitigation within guidance and support confidence in logistical resilience .

Quotes:

“We achieved adjusted EBITDA margin of 15.7%, over 500 basis points of improvement over the first quarter of 2024.”
“Immediate molar implant…has exceeded internal expectations for growth.”
“We have supply chain and manufacturing flexibility…which will allow us to absorb these possible [tariff] costs.”

What Went Wrong

Revenue declined 5.2% YoY (4.1% CC) with reported U.S. net sales down 2.8% and International down 8.5%; headwinds included FX, fewer selling days, expiration of a transition manufacturing agreement, and lower China sales .
Mix pressure from deemphasized scanner sales (low margin) reduced top-line, though improved profitability; implant sales declined low single digits amid macro softness, particularly in higher-cost specialist cases .
Cash from operations was negative in Q1 as working capital movements overshadowed profitability improvements, with operating cash outflow of $(13.9)M .

Financial Results

Consolidated Key Metrics by Quarter

Metric	Q3 2024	Q4 2024	Q1 2025
Net Sales ($USD Millions)	$103.2	$111.5	$112.0
GAAP Diluted EPS – Continuing Ops ($)	$(0.11)	$(0.35)	$(0.09)
Adjusted Diluted EPS ($)	$0.12	$0.27	$0.27
Adjusted EBITDA ($USD Millions)	$13.1	$18.4	$17.6
Adjusted EBITDA Margin (%)	12.7%	16.5%	15.7%
Adjusted Cost of Products Sold (% of Sales)	34.4%	35.0%	33.6%

Notes: Adjusted metrics per company non-GAAP definitions and reconciliations.

Geography (Q1 YoY and CC)

Geography	Q1 2024 Net Sales ($USD Millions)	Q1 2025 Net Sales ($USD Millions)	YoY Change (%)	Constant Currency Change (%)
United States	$67.7	$65.8	(2.8%)	(2.8%)
International	$50.4	$46.2	(8.5%)	(5.9%)
Total	$118.2	$112.0	(5.2%)	(4.1%)

KPIs and Operating Metrics

KPI	Q4 2024	Q1 2025
Adjusted R&D ($USD Millions; % of Sales)	$5.8; 5.2%	$5.4; 4.8%
Adjusted SG&A ($USD Millions; % of Sales)	$57.2; 51.3%	$58.7; 52.4%
Weighted Avg Diluted Shares (Millions)	27.6	27.7
Cash & Equivalents ($USD Millions)	$75.0	$66.8
Gross Debt – Non-current ($USD Millions)	$220.5	$220.6
Net Debt ($USD Millions)	$145.5	~$153

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales ($USD Millions)	FY 2025	$445–$460	$445–$460	Maintained
Adjusted EBITDA ($USD Millions)	FY 2025	$65–$70	$65–$70	Maintained
Adjusted EPS ($)	FY 2025	$0.80–$0.95	$0.80–$0.95	Maintained
Net Sales ($USD Millions)	Q2 2025	N/A	$112–$114	New
Adjusted EBITDA Margin (%)	Q2 2025	N/A	~15%	New
Tariff Impact (annual)	FY 2025	Assumed non-material	~$3M absorbed within guidance	Updated detail

Earnings Call Themes & Trends

Topic	Q3 2024 (Prev Mentions)	Q4 2024 (Prev Mentions)	Q1 2025 (Current)	Trend
Margin optimization & manufacturing	Improved manufacturing efficiencies; adj. EBITDA margin 12.7%	Adj. EBITDA margin 16.5%; cost reductions	15.7% adj. margin; >500 bps YoY; streamlined ops	Improving vs YoY; stable vs Q4
Digital adoption & workflow	Digital revenue growth; RealGUIDE momentum	Record year for digital ex scanners; +39% RealGUIDE in FY24	RealGUIDE mid-teens; Implant Concierge +11% YoY; Japan launch in Q2	Sustained growth
Implant market softness & mix	Revenue down; U.S. slight growth; International down	Specialist case softness; stable singles	Implants declined low single digits; April unit uptick; premium pricing selectivity	Stabilizing signs
Tariffs & supply chain flexibility	—	Guidance assumed non-material tariff impact	~$3M annualized tariff cost mitigated via manufacturing/distribution nodes	Risk managed
Regional trends & China	International down; OUS pressures	—	OUS headwinds: FX 260 bps, TMA expiration 270 bps, 1 less selling day 100 bps, China -60 bps; normalized OUS -1.6% CC	Mixed; normalized declines modest

Management Commentary

“Our team delivered over 350 basis points reduction in adjusted total cost of products sold… adjusted EBITDA margin of 15.7%… ahead of our previously announced goal.”
“Immediate molar implant…expands our TSX and T3 PRO implant systems… simplifying challenging clinical scenarios… and shortening treatment times.”
“We are reiterating our full year 2025 revenue guidance… $445M to $460M… adjusted EBITDA $65M to $70M… adjusted EPS $0.80 to $0.95.”
“We have supply chain and manufacturing flexibility… to absorb [tariff] costs… roughly $3 million per year.”
“Cash was $67 million. Gross debt… ~$220 million… yielding net debt of approximately $153 million.”

Q&A Highlights

April implant units showed uptick; focus on same-store sales improvement, with new launch (immediate molar) outperforming internal expectations .
Pricing: Premium market less price-competitive; selective price actions by segment; capacity to offset some tariff impacts with targeted pricing and portfolio packaging .
International decline drivers quantified: FX (~260 bps), TMA expiration (~270 bps), 1 less selling day (~100 bps), China (~60 bps); normalized OUS decline ~1.6% CC .
Japan opportunity: strong foundational position; mid-single digit growth in Q1; Implant Concierge expected to be a top-3 growth driver locally .
Supply chain confidence: dual manufacturing sites (Florida, Valencia); OUS distribution node moves to mitigate U.S. tariffs; reduced reliance on China and in-sourcing benefits .

Estimates Context

Metric (Q1 2025)	Consensus (SPGI)	Actual	Result vs Consensus
Primary EPS Consensus Mean ($)	0.210*	0.27	Bold beat
Revenue Consensus Mean ($USD Millions)	113.41*	112.00	Slight miss
EBITDA Consensus Mean ($USD Millions)	15.72*	11.12 GAAP EBITDA; 17.56 adj. EBITDA	Below SPGI EBITDA; above on adjusted basis

Disclaimer: *Values retrieved from S&P Global. Company-reported adjusted metrics differ from SPGI GAAP-based definitions.

Where estimates may adjust:

Street likely revisits EBITDA trajectories given sustained margin execution versus soft topline, and incorporates tariff mitigation disclosures and early April unit upticks .

Key Takeaways for Investors

Margin story intact and ahead of plan: 15.7% adjusted EBITDA margin with 520 bps YoY expansion, supported by manufacturing efficiencies and mix shift away from low-margin scanners .
Top-line softness persists but shows stabilization: implants down low single digits; biomaterials +~1%; digital momentum continues with mid-teens RealGUIDE and +11% Implant Concierge growth .
FY25 guidance maintained; Q2 guide implies normalized flat to ±1% sales excluding order-timing/TMA headwinds; ~15% adj. EBITDA margin targeted .
Tariffs: ~$3M annualized impact incorporated and mitigated via flexible manufacturing/distribution; reduces risk of guidance disruption .
Commercial execution: new VP Americas Sales, data-driven focus in U.S.; April implant unit uptick and immediate molar launch offer near-term catalysts .
Balance sheet: cash ~$67M, gross debt ~$220M, net debt ~$153M; seller note ($60M) compounding through 2029 offers optionality .
Watch for specialist case recovery and Japan Implant Concierge launch as potential inflection points for H2 unit growth .

Additional Relevant Press Releases (Q1 2025)

Board leadership changes: CEO Vafa Jamali appointed Chairman effective May 7, 2025; David King retiring; Vinit Asar appointed Lead Independent Director .
Scientific study publication: ZimVie implant surface engineered to reduce bacterial adhesion while maintaining crestal bone—supporting premium implant positioning .

Appendix: Q1 2025 Detailed Financial Disclosures

Consolidated Statements: net sales $111,997; GAAP net loss from continuing ops $(2,625); adjusted net income $7,371; adjusted diluted EPS $0.27 .
Cash flow from operations: $(13,911) .
Geographic reconciliation and constant currency changes: detailed above .
FY25 guidance reiterated (Net Sales $445–$460M; Adjusted EBITDA $65–$70M; Adjusted EPS $0.80–$0.95) .

ZimVie Inc. (ZIMV)·Q1 2025 Earnings Summary