Globus Medical, Inc. (GMED) Business Profile

What it does

Globus Medical develops and sells medical devices and related services for treating musculoskeletal disorders. Founded in 2003 and headquartered in Audubon, Pennsylvania, it is led by President and Chief Executive Officer Keith W. Pfeil. Its customers include hospitals, ambulatory surgery centers and physicians.

Its Musculoskeletal Solutions business supplies implants, instruments, biologic materials and other products used in spine, orthopedic and neurosurgical procedures. Spine products include implants that stabilize or replace parts of the spine. Its orthopedic portfolio includes products for repairing fractures and replacing hips and knees. The company also provides nerve-monitoring services during surgery and implantable spinal cord stimulation therapy for chronic pain.

Globus also sells Enabling Technologies: imaging, navigation and robotic systems that help surgeons plan and perform procedures. Its ExcelsiusGPS platform guides surgeons during procedures involving screws and spinal implants. Other products include surgical planning software, an imaging system and a robotic system for knee replacement.

The company groups its products and services into those two categories and manages them within one reportable segment. Its product range is designed for different patient anatomies, conditions and surgeons’ preferences. Globus develops products with input from surgeons and uses its own facilities for research, testing and manufacturing.

How it makes money

Globus generates revenue by selling implants and related disposable products, surgical technologies and services. It sells implants and disposables primarily to hospitals for use by surgeons. The company generally recognizes revenue from these products when they are implanted or used in a procedure. It also sells some surgical instruments and implant sets directly, although those sales are not a material part of the business.

For many customers, Globus makes sets of implants and instruments available to meet surgery schedules. It generally does not receive separate payment specifically for the instrument sets. Used products are replenished, and instrument sets may be returned and prepared for other surgeries. The company also earns revenue from neuromonitoring services and spinal cord stimulation treatment therapy.

Enabling Technologies revenue comes from imaging, navigation and robotic systems. Globus offers capital sales and leasing arrangements, and it expects more rental, lease and volume-based arrangements as it changes how customers acquire its equipment. It generally recognizes revenue from imaging, navigation and robotics products when control transfers to the customer, typically at shipment or delivery; some payment may be recognized later as maintenance and support obligations are fulfilled.

FY2025 reportable segment revenue was $2.9 billion; Q3 2026 revenue was $763.7 million.

Musculoskeletal Solutions generated $2.8 billion in FY2025, or 95.2% of revenue. Enabling Technologies contributed $141.0 million. In Q3 2026, the company’s revenue declined 0.7% on an as-reported basis. Globus attributed the decline to the effects of changes at Nevro, delayed U.S. spine product launches and lower contributions from competitive recruiting.

Customers and how it sells

Globus sells primarily to hospitals, with surgeons using its products in procedures. It also serves ambulatory surgery centers and physicians. Its sales representatives help ensure that the necessary implants and instruments are available for surgery, including a range of sizes for different patient anatomies.

The company sells through a combination of its own representatives and exclusive independent distributors. In the United States, distributor representatives generally receive a commission based on a percentage of sales. Globus has dedicated sales teams for spinal implants, orthopedic trauma and Enabling Technologies; it sells hip and knee products primarily through independent sales agents.

The United States accounted for $2.4 billion, or 80.6%, of FY2025 revenue. International revenue was $571.3 million, or 19.4%. As of December 31, 2025, Globus had a direct or distributor sales presence in the United States and 64 other countries.

Implant representatives are present in the operating room during most U.S. surgeries using the company’s products and in many other countries where it sells them. Globus also provides surgeon education through in-person courses and virtual content.

Suppliers and costs

Globus manufactures implants at facilities in Pennsylvania and Ohio, processes most of its regenerative biologics in Texas and Pennsylvania, and assembles Excelsius robotic systems in Massachusetts. Its Costa Rica facility manufactures spinal cord stimulation products, including the HFX platform.

Products not manufactured in-house are generally made through third-party suppliers. Globus generally uses a small number of suppliers for each key product and relies on several tissue banks for allograft tissue implants. It also uses a limited number of suppliers for certain components of its Enabling Technologies and nerve-monitoring platforms and is developing backup sources for critical components.

Cost of sales includes in-house manufacturing, products bought from suppliers, excess and obsolete inventory charges, depreciation of surgical instruments and cases, royalties, shipping and inspection. Research and development spending includes engineering, clinical and regulatory work, research activities and personnel costs. Selling, general and administrative expenses include employee costs and commissions to sales representatives and distributors.

Globus expects research and development costs to rise as it expands its product pipeline and adds personnel. It also expects selling, general and administrative expenses to increase as it expands its sales force and commercializes products.

Competitive position

Globus identifies Medtronic, DePuy Synthes, Stryker, Zimmer Biomet and Smith + Nephew as significant competitors. It also names Alphatec Holdings, Orthofix, Integra LifeSciences, ZimVie, VB Spine and Boston Scientific among its competitors. These companies compete with Globus in products and treatments for musculoskeletal disorders. Globus says it competes mainly against Medtronic in robotics.

Globus develops products with surgeon input and trains surgeons in its techniques. Its representatives also help provide implants and instruments in the operating room. The company integrates implants with imaging, navigation and robotic systems, and protects its products through patents and other intellectual property rights.

Our reading: Surgeon relationships, training and operating-room support can make the sales model harder to replicate, but surgeons and hospitals may be hesitant to change their existing practices or products. Our reading: The combination of implants and surgical technologies may reinforce customer relationships, although competing equipment and treatments give customers alternatives. Our reading: Patents provide another defense, but competitors can develop and patent products or obtain regulatory approvals earlier.

Globus notes that many larger competitors have advantages including greater resources, established provider relationships and an ability to cross-sell products. It also competes for scientific, management and sales personnel and for complementary technologies.

Growth opportunities

Globus plans to develop new products, expand its direct and distributor sales force, enter additional geographic territories and selectively pursue acquisitions. It launched 9 products in 2025 and expects to continue regular launches. The company also expects adoption of Enabling Technologies to rise as they become more integrated with its implants and other Musculoskeletal Solutions.

In Q3 2026, Globus made its Scrip patient-specific implants and rods available. Surgeons can customize implants to patient specifications using the company’s software. Globus is also introducing its EIQ fixation suite, which combines implants and instruments with planning software, neuromonitoring and its robotic, navigation and imaging systems.

The company acquired Higgs-Boson and the Synaptive assets in Q3 2026. It plans to use Higgs-Boson technology for patient data and analytics within its surgical intelligence platform, while the Synaptive assets are intended to support expansion into cranial neurosurgery. Globus estimates that approximately 2 million cranial procedures are performed annually.

Globus plans to introduce HFX Elite, a spinal cord stimulation product, in the first half of 2027. It expects new spine products and sales-force execution to contribute to growth, while working to recover Nevro sales volume. In November 2026, the company lowered its full-year 2026 revenue guidance to $3.09 billion, citing short-term pressure from Nevro and a limited contribution from newly launched products during the year.

Structural risks

• Product adoption: Globus must convince surgeons and hospitals to use its products instead of competing products or existing treatments. Customers may hesitate because of training time, limited experience with a technology, perceived liability, purchase costs or reimbursement availability.

• Competition and innovation: Larger competitors may have greater resources, established provider relationships and broader intellectual property portfolios. Competitors may develop or patent products, or obtain regulatory clearance, before Globus does.

• Regulation and reimbursement: Medical devices and tissue products are subject to regulation in the United States and abroad. Globus may fail to obtain or maintain foreign approvals, while payors can deny coverage or change policies governing procedures that use its products.

• Supply and manufacturing: The company uses a limited number of suppliers for some technology components. Globus says it has worked through structural manufacturing issues but continues to address smaller issues.

• Acquisitions and execution: Acquisitions carry risks, and the recovery of lost Nevro sales volume has taken longer than Globus previously expected. The company also attributed slower U.S. spine growth in Q3 2026 to delayed launches and lower contributions from competitive recruiting.

• Technology disruption: Globus relies on its information systems for research, sales, financial functions, inventory management and product development. Those systems are vulnerable to failures, cyberattacks, human error and other interruptions.

Bottom line

Our reading

Globus is primarily an implant and surgical-products business, with equipment and services that connect it to surgeons and hospitals across procedures. [item1] Our reading: Its sales relationships and integrated product range support that model, but adoption, reimbursement and competition remain material constraints. [item1; item1a] The recent Nevro recovery delay and slower U.S. spine growth show that execution can affect results even as the company invests in new products and markets. [call_prepared]