BVS

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 8:30 a.m. ET President and Chief Executive Officer - Rob Claypoole Senior Vice President and Chief Financial Officer - Mark Singleton Investor Relations - Dave Crawford Operator: Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Bioventus Inc. Second Quarter 2026 Earnings Conference Call. [Operator Instructions] I'd now like to hand today's conference over to Dave Crawford. Please go ahead. David Crawford: Thanks, Regina, and good morning, everyone, and thanks for joining us. It is my pleasure to welcome you to the Bioventus 2026 Second Quarter Earnings Conference Call. With me this morning are Rob Claypoole, President and CEO; and Mark Singleton, Senior Vice President and CFO. Rob will provide an update on our 2026 priorities and the second quarter highlights, and then Mark will review second quarter results and discuss our 2026 financial guidance. We will finish the call with Q&A. A presentation for today's call is available on the Investors section of our website, bioventus.com. Before we begin, I would like to remind everyone that our remarks today contain forward-looking statements that are based on the current expectations of management and involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated, including the risks and uncertainties described in the company's filings with the SEC, including Item 1A Risk Factors in the company's Form 10-K for the year ended December 31, 2025, as such factors may be updated from time to time in the company's filings made with the SEC. You are cautioned not to place undue reliance upon any forward-looking statements, which may speak only as of the date made. Although the company may voluntarily do so from time to time, it undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. This call will also include references to certain financial measures that are not calculated in accordance with U.S. generally accepted accounting principles or GAAP. We generally refer to these as non-GAAP or adjusted financial measures. Important disclosures about the definitions and reconciliations of those non-GAAP financial measures to the most comparable measures calculated and presented in accordance with GAAP are available in the earnings press release on the Investors section of our website at bioventus.com. And now, I'll turn the call over to Rob. Robert Claypoole: Thank you, Dave. Good morning, everyone, and thanks for joining our call today. Bioventus continued its positive momentum in the second quarter, delivering solid financial results across our business. As we continue to strengthen our commercial, operational and financial fundamentals, we are seeing encouraging leading indicators that reinforce our confidence in our future growth drivers. As such, we are reiterating our full year guidance on all metrics and are confident that our long-range growth prospects will drive enhanced value for our shareholders. Before going through the details on the second quarter, I'd like to take a moment to address the strategic review we disclosed this morning. As you saw in our press release, following receipt of multiple expressions of interest and an unsolicited acquisition proposal, our Board has formed a committee of independent directors that will evaluate a range of strategic options. Importantly, these options include, but are not limited to, a sale of the company or the continued execution of our stand-alone plan. We have built a strong foundation for growth and success at Bioventus, and I'm confident that the committee, with the assistance of Evercore as financial adviser, will take the time it needs to carefully evaluate all options to maximize value for our shareholders. Turning to the quarter, I'll update you on the 3 priorities we outlined at the start of the year: one, accelerating long-term revenue growth with increased investment in our business; two, increasing earnings even with the higher level of investment; and three, continuing to strengthen our robust cash flow and enhance capital allocation optionality. Let me expand on each priority, starting with accelerating revenue growth and increasing investments into our business. Second quarter revenue grew 4% as we continue to capitalize on the opportunities to grow our core business, led by strong double-digit growth in our Pain Treatments business. Within Pain Treatments, our HA franchise, led by DUROLANE, our market-leading single-injection therapy, continues to be a durable strength for Bioventus, consistently growing well above the market. Our performance is driven by strong commercial focus, the experience of our dedicated sales force, DUROLANE's clinical differentiation and broad private payer coverage. In the second quarter, this compelling combination helped us expand volume in existing accounts and win new ones. We believe our go-to-market approach and disciplined pricing strategy positions us for sustainable above-market revenue growth in HA. Year-to-date, the HA business has outperformed our expectations, allowing us to deploy the significant operating profit generated by this franchise to invest in our key growth drivers, including PRP, PNS, Ultrasonics and International. During the second quarter, we continued to increase investments in these businesses by expanding our commercial team, raising awareness of our differentiated solutions and enhancing physician training programs. I'm pleased to report that these initiatives are generating valuable data-driven insights while producing positive traction across several leading performance indicators. These insights help us determine the optimal mix of future investment and commercial actions to maximize growth and returns. Let me highlight a few examples, starting with platelet-rich plasma. Our momentum is building in PRP, and as capital placements continue to accelerate, we are seeing both larger and more frequent disposable reorders. These leading indicators demonstrate that our PRP system is efficient, customizable solution is gaining traction and beginning to displace competitive offerings. We are also beginning to realize the benefits of leveraging our HA sales force to drive PRP adoption, which helps us win new PRP accounts and creates additional opportunities to expand our HA customer base. With respect to PNS, our world-class differentiated technology, combined with strong commercial execution has created excellent momentum, including increased velocity in surgeon adoption and StimTrial placements with high conversion rates to permanent TelisMann implants, resulting in a growing base of new business. In addition, surgeons consistently expressed strong appreciation and clear recognition of our differentiation, which is translating into competitive conversions and meaningful inroads with larger institutions. The strength of these leading indicators confirms our continued focus on expanding sales force coverage, enhancing clinical support and investing in clinical evidence generation to further augment our differentiation. In Ultrasonics, our technology, combined with our investments in marketing and surgeon training is driving encouraging traction with key leading indicators, particularly increased surgeon adoption, accelerating disposables growth and new wins with larger accounts and market-leading IDNs. We expect these early indicators to translate into revenue acceleration in the second half of this year and beyond. Finally, in our International business, momentum continues to build, following the addition of new talent and the team's greater focus on select markets with the best growth opportunities. We are encouraged by the speed of execution, the depth of our opportunity pipeline and our customer win rates. Together, these indicators give us confidence in delivering strong double-digit growth in the second half and for the full year. Turning to our second priority, increasing earnings even as we invest in our future growth drivers. The second quarter was a powerful demonstration of how we have enhanced the earnings power of the business. Despite accelerating investments, we delivered an adjusted EBITDA margin of 23%. And for the full year, we expect to maintain a margin of at least 20%. Our operating profitability, combined with significant interest expense savings generated adjusted EPS of $0.22 in the quarter. And year-to-date, we have increased our adjusted EPS by 24% compared to the prior year. Looking ahead to the second half of the year, we expect to further accelerate our investments while continuing to grow earnings and deliver on our full year financial guidance. We are able to achieve this by leveraging the earnings power generated from our durable above-market revenue growth and stable peer-leading gross margin. Turning to our third priority, accelerating cash flow. We delivered another strong quarter with cash from operations of $20 million. We used our strong cash generation to repay an additional $24 million of our term loan. We also achieved an important financial milestone, reducing our net leverage to below 2x. And we expect our net leverage to be below 1.5x by the end of the year, reflecting our disciplined capital allocation. We plan to continue to prioritize strengthening our balance sheet by using our strong free cash flow to further reduce debt this year, thereby creating significant capital deployment optionality for the future. Overall, we continue to execute with discipline and deliver strong results against our strategic priorities. We are entering the back half of the year with significant momentum, increased conviction in our strategy and growing confidence in the strength of our portfolio and investment approach. Before I turn the call over to Mark, I'd like to highlight another important milestone. Bioventus was recently recognized by U.S. News & World Report as a Best Company to Work For. This recognition is a testament to the talent, commitment and culture of our world-class team, and it further strengthens our resolve as we continue our journey to build Bioventus into a leading $1 billion medtech company that delivers exceptional value for our customers, employees, shareholders and all other stakeholders. Now I'll turn the call over to Mark. Mark Singleton: Thank you, Rob, and good morning, everyone. Let me start by highlighting that our performance this quarter reflects the strength of our strategy and our disciplined execution against the investment thesis we outlined. The combination of durable growth and momentum in our core business and peer-leading gross margin is enabling us to fund the investment into our 4 growth drivers. In the near term, each of these 4 areas of growth are generating encouraging evidence and increasing our confidence in future revenue acceleration. At the same time, we continue to deliver on our commitment to improve profitability and generate strong cash flow. This powerful combination sets us apart and positions us to create meaningful long-term value for our stakeholders. Turning to our headline results for the second quarter. Revenue of $153 million increased 4% compared to the prior year period. Growth was driven by significant strength in our Pain Treatments business, which was partially offset by a few factors, including a challenging comparison to the prior year in Surgical Solutions and Restorative Therapies and a shift in timing of some orders, which we will discuss in a moment. Adjusted EBITDA of $35 million increased over $1 million compared to the prior year and grew faster than revenue growth. Adjusted EBITDA margin of 23% expanded 20 basis points compared to the second quarter last year, even with our increased investment. And adjusted earnings were $0.22 per diluted share for the quarter compared to $0.21 in the prior year period. Now let me provide some additional commentary on our quarterly revenue. In Global Pain Treatments, we delivered double-digit growth with revenue of $82 million, representing a 12% increase compared to the prior year. As Rob highlighted, the ongoing durability of our performance continues to be driven by strong growth in HA from volume gains with our differentiated single-injection DUROLANE therapy and favorable customer mix. This success reflects the intense focus and strategic collaboration across our sales force, corporate accounts and pricing teams. Additionally, we saw positive contributions from PRP and PNS, and we continue to expect both to ramp in the second half of the year as we have previously discussed. Moving to Surgical Solutions. Revenue in Q2 totaled $50 million, which was a decline of 5% compared to the prior year, although it reflects 5% growth sequentially. In addition to the challenging prior year comparison, performance was impacted by the timing of certain Ultrasonics capital placements and International orders, shifting approximately $2 million of revenue or more than 100 basis points for the company into the second half. Revenue in BGS was also impacted by a challenging prior year comparisons and deliberate portfolio actions to prioritize higher-margin profitable growth opportunities. It is important to note that Ultrasonic disposables performance is accelerating, and we are gaining significant traction within BGS with new large accounts and IDNs, which will propel second half and longer-term profitable growth. In Restorative Therapies, revenue of $21 million declined 2%, resulting from a change in mix, specifically with Medicare patients in addition to a difficult comparison to the prior year. We expect growth to resume based on current business opportunities and the execution that the EXOGEN team has demonstrated over the past 2 years. Finally, International revenue of $19 million was lower than the prior year by 1% or 2% on a constant currency basis, primarily due to the timing of distributor orders, which is consistent with the business. The fundamental growth in International continues to be strong. And given our increased strategic focus, talent additions and improved commercial execution, we expect to generate strong double-digit growth in the second half of the year and for the full year. Moving down the income statement. Adjusted gross margin of 75% was 90 basis points lower than the prior year period as expected, primarily due to higher freight costs and product mix. Additional adjusted total operating expenses and R&D expenses increased by $4 million as we continue to strategically invest in our key growth drivers to accelerate future revenue growth and expand the long-term earning potential. At the same time, we have demonstrated disciplined cost management by controlling expenses and finding efficiencies across the business. Adjusted net income of $20 million increased $1 million compared to the prior year period. This improvement reflects the benefit of continued revenue growth, stable gross margins and lower interest expense, demonstrating the leverage in our business model and the impact of our ongoing focus on operational execution. Adjusted net income was also impacted by an increase in our effective tax rate compared to the prior year due to the removal of the valuation allowance, and we expect to have a higher effective tax rate for the year. Turning to the balance sheet and cash flow statement. We continue to generate strong cash flow driven by our robust profitability, disciplined working capital management and capital-light business model. Cash flow from operations totaled $20 million during the quarter, and we ended the period with $29 million of cash on hand and $248 million of outstanding debt. During the quarter, we reduced debt by an additional $24 million, bringing total debt repayment for the year to $46 million as we continue to prioritize deleveraging and repayment of our term loan. This strengthens our financial position and is expected to drive further interest expense savings while enhancing our ability to strategically deploy capital towards our highest value opportunities. Through the first 6 months of the year, we have achieved 5% revenue growth, 12% adjusted EBITDA growth, 24% adjusted EPS growth and $22 million of growth in cash from operations. Importantly, we expect year-over-year revenue growth to increase in the second half compared to the first half by over 300 basis points, half of which comes from acceleration in our Surgical Solutions business with a portion related to the shift in timing from the second quarter into the second half and the other half from revenue acceleration in both PNS and PRP. In addition, cash from operations is expected to approximately double in the second half compared to the first half of this year. As a result of strong progress to date and our outlook for the business, we are reaffirming our full year financial guidance. We continue to expect 2026 revenue to be in the range of $600 million to $610 million, adjusted earnings per share to be between $0.75 to $0.79 per diluted share and cash from operations to range between $84 million and $89 million. In closing, we are off to a strong start to the year and remain focused on executing our strategy to invest in our 4 growth drivers. We believe we possess a powerful combination of growth, operational discipline and financial strength to position us well as we build a leading medtech company and create meaningful long-term value for our shareholders. Operator, please open the line for questions. Operator: Our first question will come from the line of Chase Knickerbocker with Craig-Hallum. Chase Knickerbocker: So just first on Pain. It's clear that both you and kind of your leading competitor in the single-injection market are growing volumes here in the first half of the year. Maybe just a couple parter there. Can you give us an idea of kind of volume versus price performance in the quarter, again, focusing particularly on DUROLANE? And then kind of just help us with kind of a little bit of characterization around the competitive dynamics that are currently out there in the single-injection market, how kind of both and again, your leading competitor could be kind of grabbing volumes and taking share at the same time? Robert Claypoole: Chase, this is Rob. Yes, thanks for the question, and we'll try to provide you some insights on that. First, just to reiterate that we've had a great first half, even better than our expectations. And to your question there, it was led by double-digit volume growth for DUROLANE. Again, you know, this is our single injection therapy. And look, I believe our first half performance shows again that HA is a very strong, durable, profitable growth driver for us. So that's a -- we've talked about it before, but it's favorable movement in the market, but that's really due to our clinical differentiation, our broad private payer base, and our overall commercial strength. So we're looking forward to the back half of the year, not just for HA, but for pain overall. And again, whether you're talking about the first half of this year or the second half going forward, our progress and growth in this space is really driven by volume growth. Chase Knickerbocker: Helpful, Rob. Maybe just on kind of going to Surgical. Can you just discuss your visibility into that capital kind of getting pushed into the second half and kind of staying there? And then just to follow up on that, even if you kind of place that $2 million in the second quarter, Surgical would have still been essentially flat. Can you maybe just peel back the layers a bit around kind of breaking down growth by Ultrasonics and BGS? And then if you wouldn't kind of talk -- wouldn't mind talking about kind of capital in Ultrasonics versus kind of handpiece growth. I think that would be really helpful for us to just kind of think about that business. Robert Claypoole: Yes. This is Rob again. There's a lot to unpack there from the question. So maybe I'll broaden it to Surgical and just kind of give you overall perspective on it and also touch on both the capital and disposable pieces that you mentioned. So first, we feel great about the long-term outlook for both Ultrasonics and BGS and for Surgical overall. I think it's important to note that despite a difficult comparison in Ultrasonics in Q2 and the transitory impact of the timing that you mentioned with respect to capital placements, and that alone was nearly a 400 basis point impact for Surgical. The Surgical business grew 5% sequentially in the second quarter. And more importantly, we saw great traction in Ultrasonics with our leading indicators from our investments, including new accounts, new users, capital placements and accelerated sequential growth with disposables. So we're really looking forward to the second half of the year. And in BGS, look, we're constantly managing our business with operating discipline to drive profitable growth. And to that end, we took some proactive actions in the channel in the second quarter that had a temporary impact on our performance. But there, we also saw in Q2, very positive traction with new large account acquisitions and early penetration with accounts that we've recently won, which gives us clear line of sight to acceleration in the back half of the year. So again, a lighter quarter, less than our expectations for known reasons. And part of that was that shift in timing that you alluded to. And we fully expect to see a strong acceleration for our Surgical business in the back half of the year. Chase Knickerbocker: And then just last for me, Rob, if I could sneak one more in. I appreciate all the context there. I know you won't kind of specifically comment on the strategic alternatives process, but maybe could you just help us contextualize it just a little bit as far as kind of where we are? Is this kind of -- is this fresh? Is this kind of brand new? Or is this something we've been kind of working on in the background before announcing it publicly here over the course of the quarter? Robert Claypoole: Yes. Thanks for that question, Chase. As mentioned, we made the announcement today given the unsolicited acquisition proposal that we received along with multiple expressions of interest. And beyond that, we can't provide a lot of detail beyond what we've already shared. But I will say we continue to be really excited about our significant progress and about the enormous potential ahead. And we have a lot of confidence that the committee that I mentioned is committed to evaluating the full range of options to maximize shareholder value. So we'll leave it at that for now, and we'll keep you updated on anything that we can as time goes on. Operator: [Operator Instructions] Our next question will come from the line of Larry Solow with CJS Securities. Lawrence Solow: I guess just a little more color, Rob, just on PRP and PNS and [ I know it's unlikely ] you're ready to give us any numbers, but it sounds like that 2% of $12 million number, it sounds like you're headed in the right direction there. But maybe just a little color just on customer reception, just early on anecdotally, how things are going. And I guess, particularly on PRP, I guess it sounds like you're building some capital placements, which will drive more sales too in the back half of the year. Robert Claypoole: Yes. Thanks, Larry. Great question. So I'll start off with PRP. And look, we're really encouraged by what we saw in Q2, including velocity of new customers, accelerating capital placements which you mentioned there, both an acceleration and an increase in the size of our reorders, all of which further validated the market opportunity in front of us with our differentiated technology. And I'll also point out that we're really starting to leverage our established HA commercial team from PRP in a very synergistic way. And that not only makes this a good profitability driver for Bioventus, but I think it's also important to highlight that HA is helping us win PRP and PRP is now helping us win new HA business. So it's very exciting. And we're looking forward to turning this business into a strong growth driver for Bioventus in the back half of this year and beyond. I'll touch on PNS briefly, too, since you mentioned it. It's -- we're really excited about what we saw in PNS in Q2 as well. It included an expansion of our PNS team, an acceleration of new customers and new trials and a great conversion rate to new implants, and we're receiving really positive feedback from the market. And when it comes to PNS, look, it's roughly a $200 million market today, could reach $500 million over the next handful of years. And we're confident that our highly differentiated technology and our go-to-market strategy positions us very well to scale this business to over $100 million. As to the other part of your question, yes, as expected, still tracking towards the 200 basis points for this year. So again, really looking forward to the back half for both PRP and PNS and the years beyond. Lawrence Solow: Great. If I could just follow up a question for Mark. Sales growth, 5% you mentioned 5% in the first half and EBITDA actually grew 12%, which showed some margin expansion. Curious, I know when we started the year with the investments -- enhanced investments into the business, we thought EBITDA would be roughly flattish on a margin basis. Is that still your assumption? Because I think sales growth you mentioned was a little bit less than expected, but you saw some nice margin expansion there. Any thoughts on that as you look into the back half? Mark Singleton: Yes. Thanks for the question. We feel really good about our -- the control we have with our P&L and the peer-leading gross margins that we have. Overall, our expectations, as we mentioned in our prepared remarks, are pretty consistent with what we've communicated for the full year around the 20%. 2Q EBITDA margin was 23%. So it's just a reflection of the powerful P&L that we have and the ability to control it. But with those really strong performance numbers, we are continuing to invest in our growth drivers. As we mentioned in the beginning of the year, we had highlighted a $13 million of investments actually going to be a little bit more than that as we go into the back half of the year. PNS will get the majority of those drivers because of how Rob just articulated the confidence that we have in that product and our ability to be successful there. So we'll continue to invest in the second half. There'll be more investments into the second half than there was in the first half and very confident about the team's ability to provide a return on investment for those. Operator: Our next question will come from the line of Caitlin Roberts with Canaccord. Caitlin Cronin: I think just starting with EXOGEN, maybe a little bit more color on the change in customer mix and any more color that you guys have on the CMS pricing reversal and how that fits into your expectations? Robert Claypoole: Sure, Caitlin. This is Rob. I'll provide you with some insights on that. First, yes, we saw volume grow in the quarter. We saw a shift for the quarter in the customer payer mix with fewer Medicare orders. And a -- so a little bit lighter quarter, but teams on top of it doing a nice job of growing volume and still see EXOGEN growing low to mid-single digits in the back half of the year, while, as you know, driving great profit and cash flow for the company. On the CMS part of your question, while it was -- when it was initially announced, we communicated that it was not a material change. So we're pleased to see the reversal, and we don't see that as a material change either. Caitlin Cronin: Great. And then just on the PNS portfolio and potential data generation, are you thinking about data generation going forward? And have surgeons in the early days been focusing on that as a point for you guys to work on? Robert Claypoole: Yes. Thanks. And just to clarify, I think what you're referring to is the evidence generation. And yes, that's been a part of our plan, and we continue to pursue that just to further augment our differentiation in the space. What we're seeing initially in the market is a very strong reception to our technology given its differentiation. But it's natural for us to continue to develop evidence just to further augment that differentiation. Operator: [Operator Instructions] And our next question will come from the line of Michael Petusky with Barrington Research. Michael Petusky: I apologize in advance because I've missed part of this call, hopping 3 calls. BGS, did you guys walk away from some business in the quarter? And if so, did you quantify it? Robert Claypoole: Yes. I'll touch on it, Michael. We mentioned it a little bit earlier, but look, for BGS, constantly managing our business with operating discipline to drive that profitable growth. And to your question, that's why we highlighted that. We took some proactive actions in the channel during the second quarter that had a temporary impact on our business. So -- and I also pointed out earlier that while that was the case, we also saw a very positive traction with BGS, with new account acquisitions and early penetration with accounts that we recently won. And so those give us clear insight -- line of sight to acceleration in the back half. So sorry for there's a little bit of repeat there, but that's what took place in BGS in the second quarter, Michael. Michael Petusky: Can I just try to press on that a little bit? You did quantify the impact of the shift in Ultrasonics. I mean, would you be willing to quantify how much business maybe you decided to jettison there in BGS? Robert Claypoole: Yes. I don't think we'll get into the details on it, Mike, but it was significant enough for us to call it out as, again, positive traction with our leading indicators, but that's why we made a point of mentioning that we took those actions in the quarter consciously and proactively. But I want to really emphasize that the focus there was just the driving of profitable growth, the same operating discipline that you've seen us take in other businesses like HA, where we mentioned that end of last year and this year as well, transparent about our efforts to constantly play the long game and make sure that we have that operating discipline to drive really healthy profitable growth. So that's why we highlighted it for the quarter. Michael Petusky: Okay. And again, I apologize in advance if you covered this in the first 5, 7 minutes of the call, but I'm just curious, on the strategic review to the extent you can, I'm just curious, has the PNS asset and what you guys have sort of been able to do there in terms of the regulatory approvals in just very early days, has that been a significant factor, do you believe, in the current strategic review? Robert Claypoole: Yes. Thanks for the question. So we touched on it briefly before you were able to join and -- so I won't go over those details again. I think to your specific question, look, we have a really strong business overall. We've made a ton of progress, and we have enormous potential ahead. I'd say we -- overall, we have strength, we have momentum and we have potential. And it's natural that, that gets attention from others. PNS is a really exciting part of the portfolio. And of course, there's high valuation of the PNS space overall in the market. But we're also getting a lot of positive feedback from the market about our overall business. When you look at year-to-date, what Mark mentioned earlier, 5% growth overall just for this year, 12% EBITDA, 24% in EPS growth, debt paydown of $46 million, now lower than 2x leverage with line of sight to 1.5. And so again, just tremendous strength, momentum and potential. And of course, what we're building in PNS is a really exciting part of the overall company. Operator: And that concludes the question-and-answer session. I'll hand the call back over to Rob Claypoole for any closing comments. Robert Claypoole: All right. Thanks, everyone, for your interest in Bioventus. Once again, we delivered solid results in the second quarter and are confident in our ability to deliver above-market revenue growth, increase earnings and accelerate cash flow to create significant shareholder value. Operator: This concludes today's call. Thank you all for joining. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Bioventus (BVS) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Bioventus stock has delivered strong share price gains over the past few years, yet current valuation checks still suggest it screens as relatively cheap on several metrics. That combination of a big historical return with an apparently supportive valuation is what current and prospective shareholders are trying to interpret. Over the last 3 years Bioventus has returned about 198%, which puts a spotlight on whether the current price already reflects much of the good news that investors expect. Future expectations for revenue growth and cash generation can support the present share price, while any pressure on margins or difficulty converting sales into sustainable cash flow may limit how much investors are willing to pay. Bioventus scores highly on Simply Wall St's valuation checks and is assessed as undervalued in 5 of 6 areas, which means the broader set of measures leans toward the stock still looking inexpensive. The issue now is whether Bioventus's recent share price strength has already used up most of that apparent undervaluation or if there is still room for further upside based on the current metrics. Bioventus delivered 103.8% returns over the last year. See how this stacks up to the rest of the Medical Equipment industry. The P/E ratio is a useful way to see what investors are currently paying for each dollar of Bioventus earnings. Bioventus trades on about 17.7x earnings, which is well below the Medical Equipment industry average of roughly 26.1x and the peer group average of about 66.2x. The tailored fair P/E ratio for Bioventus is estimated at around 19.7x, which reflects factors such as its industry, size and risk profile. The current P/E sits under this fair level as well as the broader industry yardsticks. This difference indicates that the market price may not fully reflect what the model implies investors might typically be willing to pay for Bioventus earnings on these assumptions. On the P/E multiple, Bioventus stock currently appears undervalued relative to both its industry and its modelled fair ratio. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Bioventus act as the bridge between the valuation puzzle above and the assumptions that sit behind it. They set out in plain terms what would need to happen to Bioventus' growth, margins and earnings for the stock to be worth materially more or less than today's price. Where a single ratio or model gives one figure, they unpack the future that figure relies on so you can monitor whether it plays out. Community views on Bioventus sit far apart, with some investors focused on product growth potential and others zeroed in on structural pressures. Bull case: 22% undervalued Read the full Bull Case to see why Bioventus could be undervalued Bear case: 9% overvalued Read the full Bear Case to see why Bioventus could be overvalued Do you think there's more to the story for Bioventus? Head over to our Community to see what others are saying! Bioventus screens as undervalued on market multiples, with its current P/E below both industry benchmarks and the tailored fair P/E estimate. That points to a market that still prices in some caution, despite the stronger valuation checks. For you, the key question is whether Bioventus can sustain healthy earnings growth and margins that justify even a partial re rating. The crux of the bull versus bear debate is whether that discount reflects an opportunity in a misunderstood business, or a fair cushion for reimbursement and pricing risks that may cap how far the multiple can stretch. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BVS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

In early August 2026, Bioventus Inc. reported second-quarter sales of US$153.21 million and net income of US$33.44 million, sharply higher than a year earlier, and reaffirmed its full-year 2026 net sales guidance of US$600 million to US$610 million. The combination of rising sales, a substantial jump in earnings per share, and management’s confidence in its 2026 outlook highlights improved operational performance and profitability momentum across Bioventus’ portfolio. Now we’ll examine how Bioventus’ sharply higher quarterly earnings and reaffirmed full-year guidance influence the company’s existing investment narrative. Find 52 companies with promising cash flow potential yet trading below their fair value. To own Bioventus, you need to believe it can translate its pain management and orthobiologic portfolio into sustained, profitable growth while managing a still-heavy debt load. The sharp Q2 2026 earnings jump and reaffirmed US$600 million to US$610 million sales outlook support the near term catalyst around improving margins and cash generation. At the same time, they do little to resolve the key risk that elevated leverage and external cost pressures could still squeeze future flexibility. The most relevant update here is Bioventus’ August 2026 decision to reaffirm its full year 2026 net sales guidance of US$600 million to US$610 million, implying about 6 to 7 percent growth. Against the backdrop of higher Q2 and first half profits, holding this target steady suggests management still sees its core drivers PNS launches, ultrasonics, and Exogen tracking to plan, even as currency moves, tariffs, and reimbursement dynamics remain potential headwinds to that catalyst. Yet investors should also weigh how persistent reimbursement pressure could eventually affect Bioventus’ pricing power across key products and what that might mean for... Read the full narrative on Bioventus (it's free!) Bioventus' narrative projects $697.6 million revenue and $47.7 million earnings by 2029. This requires 6.6% yearly revenue growth and a $19.2 million earnings increase from $28.5 million today. Uncover how Bioventus' forecasts yield a $14.80 fair value, a 5% upside to its current price. Some of the most optimistic analysts were already assuming Bioventus could reach about US$716 million in revenue by 2029 with earnings near US$43 million, which is far more upbeat than consensus, and the latest earnings beat plus reaffirmed 2026 outlook could either reinforce that view or prompt a rethink of how realistic such aggressive growth assumptions really are. Explore 3 other fair value estimates on Bioventus - why the stock might be worth 40% less than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Bioventus research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Our free Bioventus research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Bioventus' overall financial health at a glance. Opportunities like this don't last. These are today's most promising picks. Check them out now: The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 16 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. AI is about to change healthcare. These 43 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. Rare earth metals are the new gold rush. Find out which 28 stocks are leading the charge. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BVS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is utilizing the significant operating profit from the core HA franchise, specifically DUROLANE, to self-fund investments in high-growth areas like PNS, PRP, and Ultrasonics. Performance in the Pain Treatments segment was driven by double-digit volume growth and favorable customer mix, reflecting clinical differentiation and broad private payer coverage. Surgical Solutions experienced a temporary decline due to a challenging prior-year comparison and the timing of approximately $2 million in capital placements and international orders shifting to the second half. The company took proactive, disciplined actions in the Bone Graft Substitutes (BGS) channel to prioritize higher-margin profitable growth opportunities over lower-margin volume. International momentum is building following a strategic pivot to focus on select markets with the highest growth potential and the addition of new commercial talent. Operational efficiency and disciplined cost management allowed for a 23% adjusted EBITDA margin despite accelerating investments in commercial team expansion and physician training. Management expects revenue growth to accelerate by over 300 basis points in the second half of the year compared to the first half, driven by Surgical Solutions and the ramp of PNS and PRP. Cash from operations is projected to approximately double in the second half of the year, supporting a target net leverage ratio below 1.5x by year-end. The company plans to deploy more investment capital in the second half than the first, with the majority directed toward the Peripheral Nerve Stimulation (PNS) business due to high adoption confidence. Guidance assumes EXOGEN will return to low-to-mid single-digit growth in the back half of the year as the team executes on current business opportunities. Strategic review options include a potential sale of the company or continued execution of the stand-alone plan to maximize shareholder value following unsolicited interest. The Board formed a committee of independent directors to evaluate strategic options following receipt of an unsolicited acquisition proposal and multiple expressions of interest. A shift in Medicare patient mix impacted Restorative Therapies revenue, though management views the recent CMS pricing reversal as non-material to the overall business trajectory. The effective tax rate is expected to be higher for the full year following the removal of a valuation allowance. Net leverage was reduced to below 2x during the quarter, reflecting a prioritized focus on debt repayment and balance sheet strengthening. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth is primarily driven by double-digit volume increases for DUROLANE rather than pricing adjustments. Management attributes market share gains to clinical differentiation and a robust private payer base that insulates the product from some competitive pressures. The $2 million revenue shift in Ultrasonics represented a nearly 400 basis point impact on the Surgical segment's quarterly performance. Leading indicators, including new account acquisitions and accelerating disposable reorders, provide management with high confidence in second-half acceleration. The company is successfully leveraging the established HA sales force to drive PRP adoption, creating a 'virtuous cycle' where each product helps win accounts for the other. PRP momentum is evidenced by accelerating capital placements and an increase in both the size and frequency of disposable reorders. Management believes the PNS business can scale to over $100 million in a market projected to reach $500 million in the coming years. While not explicitly linking it to the acquisition proposal, management noted that the high market valuation of the PNS space is a key component of the company's overall momentum.

This article first appeared on GuruFocus. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Bioventus Inc (NASDAQ:BVS) delivered solid Q2 results with 4% revenue growth, led by strong double-digit growth in its pain treatments business. The HA franchise, particularly Durolane, continues to be a durable strength, consistently growing well above the market and driving volume gains. Adjusted EBITDA margin expanded to 23% despite increased investments, demonstrating enhanced earnings power and operational discipline. The company achieved a key financial milestone by reducing net leverage to below 2 times, with expectations to be below 1.5 times by year-end. Strong cash flow generation enabled the company to repay $24 million of debt in Q2, bringing total debt repayment for the year to $46 million. Leading indicators in growth drivers like PRP, PNS, and ultrasonics show positive traction, including increased capital placements, surgeon adoption, and new account wins. The company reaffirmed its full-year 2026 guidance, expecting revenue acceleration in the second half by over 300 basis points compared to the first half. Surgical solutions revenue declined 5% year-over-year due to challenging prior year comparisons and timing shifts of approximately $2 million in ultrasonics capital placements and international orders. Restorative therapies revenue declined 2% due to a shift in customer mix, specifically with fewer Medicare orders, and a difficult prior year comparison. Adjusted gross margin decreased by 90 basis points year-over-year, primarily due to higher freight costs and product mix. International revenue was slightly lower year-over-year due to the timing of distributor orders, although the company expects strong double-digit growth in the second half. The company took proactive actions in the BGS channel that had a temporary negative impact on performance, though it expects acceleration in the back half. Adjusted EPS growth was modest at $0.22 per share, up only $0.01 from the prior year, impacted by a higher effective tax rate due to the removal of the valuation allowance. Warning! GuruFocus has detected 7 Warning Sign with BVS. Is BVS fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide insight into the strategic review announced this morning, including whether it was a fresh development or something worked on in the background?A: Rob Claypool (President and CEO) stated that the announcement follows receipt of an unsolicited acquisition proposal and multiple expressions of interest. The board has formed a committee of independent directors, with Evercore as financial advisor, to evaluate a full range of strategic options, including a sale or continued execution of the standalone plan. He declined to provide further details but expressed confidence in the committee's commitment to maximizing shareholder value. Q: Can you break down the volume versus price performance in the pain treatments business, particularly for Durolane, and characterize the competitive dynamics in the single-injection market?A: Rob Claypool (President and CEO) noted that the strong first-half performance was led by double-digit volume growth for Durolane, driven by clinical differentiation, broad private payer coverage, and commercial strength. He emphasized that growth in the HA space is primarily volume-driven, and the company remains confident in its ability to sustain above-market growth through disciplined pricing and a strong go-to-market approach. Q: What is the visibility into the $2 million of surgical revenue shifted to the second half, and can you break down growth between Ultrasonics and BGS, including capital versus disposable performance?A: Rob Claypool (President and CEO) explained that the shift was transitory, impacting surgical growth by nearly 400 basis points. Despite this, surgical grew 5% sequentially, with strong traction in Ultrasonics evidenced by new accounts, capital placements, and accelerated disposable growth. In BGS, proactive channel actions temporarily impacted performance, but new large account wins and early penetration provide clear line of sight to acceleration in the back half. Q: Can you provide more color on PRP and PNS momentum, including customer reception and the progress toward the 200 basis points contribution for the year?A: Rob Claypool (President and CEO) highlighted encouraging Q2 results in PRP, including accelerated capital placements, larger and more frequent reorders, and synergy with the HA sales force. For PNS, he noted team expansion, increased trials, high conversion rates to implants, and positive market feedback. He reaffirmed that both businesses are on track to contribute 200 basis points to growth this year, with PNS positioned to scale to over $100 million in a market expected to reach $5 billion. Q: Given the 5% revenue growth and 12% EBITDA growth in the first half, is the full-year margin assumption still around 20%, and how should we think about investments in the back half?A: Mark Singleton (SVP and CFO) confirmed that full-year adjusted EBITDA margin expectations remain consistent with prior guidance of at least 20%. He noted that Q2 margin of 23% reflects strong P&L control and peer-leading gross margins. Investments will increase in the second half, exceeding the initial $13 million plan, with PNS receiving the majority of incremental funding due to high confidence in its growth potential. Q: Can you provide more color on the change in customer mix in restorative therapies and the impact of the CMS pricing reversal?A: Rob Claypool (President and CEO) explained that volume grew in the quarter, but a shift in payer mix with fewer Medicare orders impacted revenue. He expects exogen to resume low-to-mid single-digit growth in the back half while continuing to generate strong profit and cash flow. Regarding CMS, he noted the initial announcement was not material, and the reversal is also not expected to have a material impact. Q: Did you walk away from some BGS business in the quarter, and can you quantify the impact?A: Rob Claypool (President and CEO) confirmed that proactive actions were taken in the BGS channel during Q2, which had a temporary impact on performance. He declined to quantify the impact but emphasized that the focus was on driving profitable growth with operating discipline, similar to actions taken in other businesses. Positive traction with new account acquisitions and recent wins provides confidence in back-half acceleration. Q: Has the PNS asset and its regulatory progress been a significant factor in the strategic review?A: Rob Claypool (President and CEO) acknowledged that PNS is an exciting part of the portfolio with high market valuation, but emphasized that the overall business strength5% revenue growth, 12% EBITDA growth, 24% EPS growth, and debt reduction to below 2x leveragehas attracted attention. He reiterated confidence in the company's momentum and potential across the entire portfolio. Q: Can you elaborate on the revenue acceleration expected in the second half, particularly the 300 basis points improvement and the drivers behind it?A: Mark Singleton (SVP and CFO) explained that second-half revenue growth is expected to accelerate by over 300 basis points compared to the first half. Half of this comes from the surgical solutions business, including the timing shift from Q2, and the other half from acceleration in PNS and PRP. Cash from operations is also expected to approximately double in the second half. Q: What are the key leading indicators in Ultrasonics, and how do they translate into revenue acceleration in the second half?A: Rob Claypool (President and CEO) highlighted increased surgeon adoption, accelerating disposables growth, and new wins with larger accounts and IDNs as key leading indicators. These early signs, combined with investments in marketing and surgeon training, are expected to translate into revenue acceleration in the second half of the year and beyond. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Q2 reported revenue of $153.2 million increased 4% Q2 GAAP earnings of $0.47 per diluted share compared to the prior-year period earnings of $0.11 per diluted share Non-GAAP earnings* of $0.22 per diluted share compared to $0.21 per diluted share in the prior-year period Cash from operations totaled $19.9 million Company reaffirms revenue, Adjusted Diluted EPS* and cash from operations guidance for the full year 2026 Company initiates review of strategic alternatives DURHAM, N.C., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Bioventus Inc. (Nasdaq: BVS) (“Bioventus” or the “Company”), a global leader in innovations for active healing, today reported financial results for the three and six months ended June 27, 2026. "Bioventus continued its positive momentum in the second quarter, with solid performance that positions us well for continued success in the second half of the year,” said Rob Claypoole, Bioventus President and Chief Executive Officer." We remain focused on disciplined execution while continuing to invest in our four growth drivers. We believe this compelling combination will accelerate revenue growth, strengthen profitability and earnings power, and drive significant free cash flow." “The Bioventus Board of Directors has full confidence in the business and management team and is excited about the future prospects of the Company,” Claypoole continued. “At the same time, in light of the external interest we have received, the Board has formed a committee of independent directors, which has determined it is the right time to initiate a review of strategic alternatives. This decision reflects our steadfast commitment to exploring all opportunities to maximize value for our shareholders.” Second Quarter 2026 Financial Results For the second quarter, worldwide revenue of $153.2 million advanced 4%, driven by double-digit growth in Pain Treatments. Net income attributed to Bioventus Inc. was $33.4 million, compared to $7.5 million in the prior-year period. In addition to higher operating profit driven by an increase in revenue, net income attributable to Bioventus Inc. benefited from the removal of the $24.6 million valuation allowance associated with the Company's deferred tax asset. Adjusted EBITDA* of $35.3 million advanced 4% from $33.8 million in the prior-year period due to higher revenue growth, which was partially offset by increased investment to fund future growth. GAAP earnings of $0.47 per diluted share of Class A common stock improved from $0.11 per diluted share in the prior-year period. Non-GAAP earnings of Class A common stock* of $0.22 per diluted share reflects an increase of 5% from $0.21 per diluted share in the prior-year period, driven by improved operating profit and lower interest expense. Revenue By Business The following tables represent net sales by business and geographic region for the three months ended June 27, 2026 and June 28, 2025: Pain Treatments: Global revenue of $81.7 million increased 11.5%, reflecting strong volume growth in the Company's Durolane hyaluronic acid therapy along with favorable customer mix relative to the second quarter of 2025. Surgical Solutions: Global revenue of $50.4 million decreased 4.5%, due to a challenging prior-year comparison, and a shift in timing of certain Ultrasonics capital placements and international orders to the second half of the year. Restorative Therapies: Global revenue of $21.1 million decreased 2.4% due to a change in customer mix, specifically with Medicare patients, for the EXOGEN Bone Stimulation System in addition to a challenging comparison to the prior year. U.S.: Revenue of $134.5 million increased 4.4% driven by Pain Treatments, reflecting strong volume growth in the Company's Durolane hyaluronic acid therapy along with favorable customer mix relative to the second quarter of 2025. International: Revenue of $18.7 million decreased 0.8%, was essentially unchanged compared to the prior-year period, which was partially attributable to a shift in timing of orders to the second half of the year. Recent Business Highlights Bioventus continues to advance its strategic priorities with key achievements, including making a discretionary principal prepayment of $20.0 million on its term loan during the second quarter, funded by strong operating cash flows. The reduction in long-term debt lowers future interest payments and borrowing costs with the improved financial metrics in the Company's credit agreement. 2026 Financial Guidance Bioventus is reaffirming its 2026 Financial Guidance provided on May 6, 2026. For the twelve months ending December 31, 2026, the Company expects: Net sales of $600 million to $610 million. This reflects growth of approximately 6% to 7%. Adjusted EPS* of $0.75 to $0.79. Cash from Operations of $84 million to $89 million. The Company does not provide U.S. GAAP financial measures, other than net sales and cash from operations, on a forward-looking basis, because the Company is unable to predict with reasonable certainty the impact and timing of strategic transaction related expenses, accounting fair-value adjustments, and certain other reconciling items without unreasonable efforts. These items are uncertain, depend on various factors, and could be material to the Company’s results computed in accordance with U.S. GAAP. Review of Potential Strategic Alternatives Following receipt of a recent unsolicited acquisition proposal and multiple other expressions of interest, Bioventus today announced that it has initiated a review of strategic alternatives. The Bioventus Board of Directors continues to have strong confidence in the Company’s management team and its strategy as a standalone company, and today’s quarterly update demonstrates continued performance and momentum in the business. However, in light of the acquisition proposal and other indications of interest the Company has received, the Board has established a committee of independent directors, which, with the assistance of Evercore as financial advisor and Latham & Watkins as legal counsel, is evaluating a range of strategic options, including but not limited to a sale of the company, or continued execution of the Company’s standalone plan, aimed at maximizing value for shareholders. The Company has not set a timetable for the completion of strategic alternatives review process and there can be no assurance that the Company’s review will result in any transaction or other strategic outcome. Bioventus does not intend to disclose further developments unless and until it determines that such disclosure is appropriate or necessary. *See below under “Use of Non-GAAP Financial Measures” for more details. About Bioventus Bioventus delivers clinically proven, cost-effective products that help people heal quickly and safely. Its mission is to make a difference by helping patients resume and enjoy active lives. The Innovations for Active Healing from Bioventus include offerings for Pain Treatments, Surgical Solutions and Restorative Therapies. Built on a commitment to high quality standards, evidence-based medicine and strong ethical behavior, Bioventus is a trusted partner for physicians worldwide. For more information, visit www.bioventus.com and follow the Company on LinkedIn and X. Bioventus and the Bioventus logo are registered trademarks of Bioventus LLC. Second Quarter 2026 Earnings Conference Call Management will host a conference call to discuss the Company’s financial results and provide a business update, with a question and answer session, at 8:30 a.m. Eastern Time on August 5, 2026. Those who would like to participate in the conference call may dial 1-800-715-9871 (Conference ID 8813117) and refer to the Bioventus Inc. Conference Call. A live webcast of the call and any accompanying materials will also be provided on the investor relations section of the Company's website at https://ir.bioventus.com/. The webcast will be archived on the Company’s website at https://ir.bioventus.com/ and available for replay until August 4, 2027. Legal Notice Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements concerning the review of potential strategic alternatives; the potential outcomes, impact and timing thereof; our business position and operations; our future financial results and liquidity; and expected sales trends, opportunities, market position and growth In some cases, you can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “predict,” “potential,” “positioned,” “seek,” “should,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Important factors that may cause actual results to differ materially from current expectations include, among other things: whether the objectives of the Company's strategic alternatives review process will be achieved; the terms, structure, timing, benefits and costs of any strategic transaction; whether any such transaction will be consummated at all; the risk that the strategic alternatives review process and its announcement could have an adverse effect on the ability of the Company to retain customers and retain and hire key personnel and maintain relationships with customers, suppliers, employees, stockholders and other business relationships and on its operating results and business generally; the risk that the strategic alternatives review process could divert the attention and time of the Company’s management; the risk of costs or expenses resulting from the strategic alternatives review process; the risk of any litigation relating to the strategic alternatives review process; the risks related to unexpected increases in the volume of rebate claims; the risks related to tariffs and unexpected changes in tariffs, trade barriers and regulatory requirements, export licensing requirements or other restrictive actions by the United States or retaliatory tariffs and other actions taken by foreign governments; the U.S. Food and Drug Administration (“FDA”) regulatory process is expensive, time-consuming and uncertain, and the failure to obtain and maintain required regulatory clearances and approvals could prevent us from commercializing our products; we may be unable to successfully commercialize newly developed or acquired products or therapies within expected timeframes; if clinical studies of our future product candidates do not produce results necessary to support regulatory clearance or approval in the United States or elsewhere, we will be unable to expand the indications for or commercialize these products; if we fail to properly manage growth or scale our business processes, systems, or data management, our business could suffer; our ability to maintain our competitive position depends on our ability to attract, retain and motivate our senior management team and highly qualified personnel necessary to execute our strategic plans; demand for our products may decrease as a result of healthcare cost-containment and drug pricing initiatives by the federal government, which could negatively impact the commercial success of affected products; we may face issues with respect to the supply of our products or their components due to product quality and regulatory compliance issues, including increased costs, disruptions of supply, shortages, contamination or mislabeling; we might not meet certain of our debt covenants under our 2025 Credit Agreement and might be required to repay our indebtedness on an accelerated basis; there are restrictions on operations and other costs associated with our indebtedness; we might require additional capital to fund our current financial obligations and support business growth; failure to establish and maintain effective financial controls could adversely affect our business and stock price; we might not be able to complete acquisitions or successfully integrate new businesses, products or technologies in a cost-effective and non-disruptive manner; our cash is maintained at financial institutions, often in balance that exceed federally insured limits; we are subject to securities class action litigation and may be subject to similar or other litigation, in the future, which will require significant management time and attention, result in significant legal expenses or costs not covered by our insurers, and may result in unfavorable outcomes; we are highly dependent on a limited number of products; our long-term growth depends on our ability to develop, acquire and commercialize new products, line extensions or expanded indications; demand for our existing portfolio of products and any new products, line extensions or expanded indications depends on the continued and future acceptance of our products by physicians, patients, third-party payers and others in the medical community; the FDA’s reclassification of non-invasive bone growth stimulators, including our EXOGEN system, by the FDA could increase future competition for bone growth stimulators and otherwise adversely affect the Company’s sales of EXOGEN; failure to achieve and maintain adequate levels of coverage and/or reimbursement for our products or future products, the procedures using our products, such as our EXOGEN system in light of the FDA’s reclassification and our hyaluronic acid viscosupplements, or future products we may seek to commercialize; pricing and other competitive factors; governments outside the United States might not provide coverage or reimbursement of our products; we compete and may compete in the future against other companies, some of which have longer operating histories, more established products or greater resources than we do; if our HA products are reclassified from medical devices to drugs in the United States by the FDA, it could negatively impact our ability to market these products and may require that we conduct costly additional clinical studies to support current or future indications for use of those products; our failure to properly manage our anticipated growth and strengthen our brands; risks related to product liability claims; fluctuations in demand for our products; issues relating to the supply of our products or their components due to product quality and regulatory compliance issues, including increased costs, disruptions of supply, shortages, contamination or mislabeling; our reliance on a limited number of third-party manufacturers to manufacture certain of our products; if our facilities are damaged or become inoperable, we will be unable to continue to research, develop and manufacture certain of our products; economic, political, regulatory and other risks related to international sales, manufacturing and operations; failure to maintain contractual relationships; security breaches, unauthorized access to or disclosure of information, cyberattacks, or other incidents, or the perception that confidential information in our or our vendors’ or service providers’ possession or control is not secure; failure of key information technology and communications systems, process or sites; risks related to our future capital needs; failure to comply with extensive governmental regulation relevant to us and our products; we may be subject to enforcement action if we engage in improper claims submission practices and resulting audits or denials of our claims by government agencies could reduce our net sales or profits; unstable political or economic conditions, including due to government shutdowns; legislative or regulatory reforms; our business might experience adverse impacts due to public health outbreaks; risks related to intellectual property matters; the dilution of our Class A common stockholders upon an exchange of the outstanding common membership interests in Bioventus LLC could adversely affect the market price of our Class A common stock and the resale of such shares could cause the market price of our Class A common stock to fall; and the other risks identified in our Annual Report on Form 10-K for the year ended December 31, 2025 as such factors may be updated from time to time in Bioventus’ other filings with the SEC which are accessible on the SEC’s website at www.sec.gov and the Investor Relations page of Bioventus’ website at https://ir.bioventus.com. Except to the extent required by law, the Company undertakes no obligation to update or review any estimate, projection, or forward-looking statement. Actual results may differ materially from those set forth in the forward-looking statements. Use of Non-GAAP Financial Measures Organic Revenue Growth The Company defines the term “organic revenue” as revenue in the stated period excluding the impact from business acquisitions and divestitures. The Company uses the related term “organic revenue growth” or "organic growth" to refer to the financial performance metric of comparing the stated period's organic revenue with the comparable reported revenue of the corresponding period in the prior-year. The Company believes that these non-GAAP financial measures, when taken together with GAAP financial measures, allow the Company and its investors to better measure the Company’s performance and evaluate long-term performance trends. Organic revenue growth also facilitates easier comparisons of the Company’s performance with prior and future periods and relative comparisons to its peers. The Company excludes the effect of acquisitions and divestitures because these activities can have a significant impact on the Company's reported results, which the Company believes makes comparisons of long-term performance trends difficult for management and investors. Adjusted EBITDA, Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Income, Non-GAAP Operating Expenses, Non-GAAP R&D, Non-GAAP Operating Margin, Non-GAAP Net Income, and Adjusted Earnings per Share of Class A Common Stock We present Adjusted EBITDA, Non-GAAP Gross Profit, Non-GAAP (or Adjusted) Gross Margin, Non-GAAP Operating Income, Non-GAAP Operating Expenses, Non-GAAP R&D, Non-GAAP Operating Margin, Non-GAAP Net Income, and Adjusted Earnings per Share of Class A common stock, all non-GAAP financial measures, to supplement our GAAP financial reporting because we believe these measures are useful indicators of our operating performance. We define Adjusted EBITDA as net income before depreciation and amortization, provision of income taxes and interest expense, net, adjusted for the impact of certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include strategic transaction costs, such as acquisition and divestiture related costs, certain shareholder litigation costs, impairment of assets, restructuring costs, equity-based compensation expense, debt refinancing, loss on extinguishment of debt and other items. See the table below for a reconciliation of Net Income to Adjusted EBITDA. Our management uses Adjusted EBITDA principally as a measure of our operating performance and believes that Adjusted EBITDA is useful to our investors because it is frequently used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies in industries similar to ours. Our management also uses Adjusted EBITDA for planning purposes, including the preparation of our annual operating budget and financial projections. Our management uses Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Income, Non-GAAP Operating Expense, Non-GAAP Operating Margin and Non-GAAP Net Income principally as measures of our operating performance and believes that these non-GAAP financial measures are useful to better understand the long term performance of our core business and to facilitate comparison of our results to those of peer companies. Our management also uses these non-GAAP financial measures for planning purposes, including the preparation of our annual operating budget and financial projections. We define Non-GAAP Gross Profit as gross profit, adjusted for the impact of certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include depreciation and amortization included in the cost of goods sold and strategic transaction costs, such as acquisition and divestiture related costs in the cost of goods sold. We define Non-GAAP Gross Margin as Non-GAAP Gross Profit divided by net sales. See the table below for a reconciliation of gross profit and gross margin to Non-GAAP Gross Profit and Non-GAAP Gross Margin. We define Non-GAAP Operating Income as operating income, adjusted for the impact of certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include depreciation and amortization, strategic transaction costs, such as acquisition and divestiture related costs, certain shareholder litigation costs, impairment of assets, restructuring costs, debt refinancing and other items. Non-GAAP Operating Margin is defined as Non-GAAP Operating Income divided by net sales. See the table below for a reconciliation of operating income and operating margin to Non-GAAP Operating Income and Non-GAAP Operating Margin. We define Non-GAAP Operating Expenses as operating expenses, adjusted to exclude certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include depreciation and amortization, strategic transaction costs, such as acquisition and divestiture related costs, certain shareholder litigation costs, impairment of assets, restructuring costs, debt refinancing and other items. See the table below for a reconciliation of operating expenses to Non-GAAP Operating Expenses. We define Non-GAAP R&D as research and development, adjusted to exclude certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include depreciation and amortization, strategic transaction costs, such as acquisition and divestiture related costs, restructuring costs, and other items. See the table below for a reconciliation of operating expenses to Non-GAAP R&D. We define Non-GAAP Net Income as Net Income, adjusted for the impact of certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include depreciation and amortization, strategic transaction costs, such as acquisition and divestiture related costs, certain shareholder litigation costs, restructuring costs, impairment of assets, debt refinancing, loss on extinguishment of debt, other items, the tax effect of adjusting items and discrete tax items. Discrete tax items include the tax impact related to significant transactions that are not part of our ongoing operating performance, and current and deferred income tax expense commensurate with Non-GAAP Net Income. See the table below for a reconciliation of Net Income to Non-GAAP Net Income. We define Adjusted Earnings per Class A share as Earnings per Class A share, adjusted for the impact of certain cash, non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include depreciation and amortization, strategic transaction costs, such as acquisition and divestiture related costs, certain shareholder litigation costs, restructuring costs, impairment of assets, debt refinancing, loss on extinguishment of debt, other items, and the tax effect of adjusting items divided by weighted average number of shares of Class A common stock outstanding during the period. We also modify Adjusted Earnings per Class A share for discrete tax items as discussed above. These discrete tax items are recorded at the Bioventus Inc. parent company level and therefore are not adjusted to remove the impact of noncontrolling interest. See the table below for a reconciliation of loss per Class A share to Non-GAAP Earnings per Class A share. Net Sales, International Net Sales Growth and Constant Currency Basis Net Sales, International Net Sales Growth and Constant Currency Basis are non-GAAP measures, which are calculated by translating current and prior-year results at the same foreign currency exchange rate. Constant currency can be presented for numerous GAAP measures, but is most commonly used by management to facilitate the comparison of sales in foreign currencies to prior periods and analyze net sales performance without the impact of changes in foreign currency exchange rates. Limitations of the Usefulness of Non-GAAP Measures Non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for, or as superior to, the financial information prepared and presented in accordance with GAAP. These measures might exclude certain normal recurring expenses. Therefore, these measures may not provide a complete understanding of the Company's performance and should be reviewed in conjunction with the GAAP financial measures. Additionally, other companies might define their non-GAAP financial measures differently than we do. Investors are encouraged to review the reconciliation of the non-GAAP measures provided in this press release, including in the tables below, to their most directly comparable GAAP measures. Additionally, the Company does not provide GAAP financial measures on a forward-looking basis because the Company is unable to predict with reasonable certainty the impact and timing of strategic transaction related expenses, accounting fair-value adjustments and certain other reconciling items without unreasonable efforts. These items are uncertain, depend on various factors, and could be material to the Company’s results computed in accordance with GAAP. (a)   Includes for the three and six months ended June 27, 2026 and June 28, 2025, respectively, depreciation and amortization of $9.9 million, $10.6 million, $20.0 million, $20.9 million in cost of sales and $1.1 million, $1.4 million, $2.2 million, $3.0 million in operating expenses presented in the consolidated condensed statements of operations and comprehensive income. The year ended December 31, 2025 includes depreciation and amortization of $41.3 million in cost of sales and $5.7 million in operating expenses. (b)   Restructuring costs primarily resulted from severance associated with the elimination of certain positions and the consolidation of certain administrative functions and roles, as well as reversals resulting from severance contract cancellations. (c)   Includes compensation expense resulting from awards granted under our equity-based compensation plans. (d)   Costs incurred as a result of certain shareholder litigation unrelated to our ongoing operations. (e)   Consisted of third-party fees associated with our 2025 Credit Agreement. (f)    Losses recognized in connection with the refinancing of long-term debt. (g)   Represents the loss on the disposal of the Advanced Rehabilitation Business. (h)   Other items during the three and six months ended June 27, 2026 primarily consisted of strategic transaction costs. Other items during the three months ended June 28, 2025 consisted of individually immaterial items that are not indicative of the Company’s ongoing operating performance. Other items during six months ended June 28, 2025 primarily consisted of $0.5 million of expenses related to the divestiture of the Advanced Rehabilitation Business, which was completed on December 31, 2024. During the year ended December 31, 2025, other items primarily consisted of $0.5 million of expenses related to the divestiture of the Advanced Rehabilitation Business, which was completed on December 31, 2024. (a)   The "Reported GAAP Measure" under the "Operating Expenses" column is a sum of all GAAP operating expense line items, excluding research and development. (b)   Includes for the three and six months ended June 27, 2026 and June 28, 2025, respectively, depreciation and amortization of $9.9 million, $10.6 million, $20.0 million, $20.9 million in cost of sales and $1.1 million, $1.4 million, $2.2 million, $3.0 million in operating expenses presented in the consolidated condensed statements of operations and comprehensive income. (c)   Restructuring costs primarily resulted from severance associated with the elimination of certain positions and the consolidation of certain administrative functions and roles, as well as reversals resulting from severance contract cancellations. (d)   Costs incurred as a result of certain shareholder litigation unrelated to our ongoing operations. (e)   Represents the loss on disposal of the Advanced Rehabilitation Business. (f)    Consisted of third-party fees associated with our 2025 Credit Agreement. (g)   Other items include charges associated with strategic transactions, such as potential acquisitions or divestitures, as well as costs related to a transformative project aimed at redesigning the Company's systems and information processing infrastructure. Other items during the six months ended June 27, 2026 primarily consisted of strategic transaction costs. Other items during the three months ended June 28, 2025 consisted of individually immaterial items that are not indicative of the Company’s ongoing operating performance. Other items during the six months ended June 28, 2025, primarily consisted of $0.5 million of expenses related to the divestiture of the Advanced Rehabilitation Business, which was completed on December 31, 2024. (h)   An estimated tax impact for adjustments to Non-GAAP Net Income was calculated by applying a rate of 25.1% for the three and six months ended June 27, 2026 and June 28, 2025. (i)    Valuation allowance and tax adjustments for the three and six months ended June 27, 2026 include the removal of $24.6 million, of which $21.8 million relates to discrete tax adjustments and $2.8 million relates to non-discrete items, both associated with changes in the deferred tax valuation allowance that are not commensurate with Non-GAAP Net Income* and Adjusted EPS*. These adjustments are recorded at the Bioventus Inc. parent company level and are therefore not adjusted to remove the impact of noncontrolling interest. (j)    Adjustments are pro-rated to exclude the weighted average non-controlling interest ownership of 18.8% and 19.1%, respectively, for the three and six months ended June 27, 2026 and June 28, 2025. *See “Use of Non-GAAP Financial Measures” for more details. Investor Inquiries and Media:Dave [email protected] Joele Frank, Wilkinson Brimmer Katcher:Kelly Sullivan / Kara Brickman1-212-355-4449

Bioventus (BVS) came out with quarterly earnings of $0.22 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.21 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $0.09 per share when it actually produced earnings of $0.15, delivering a surprise of +66.67%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Bioventus, which belongs to the Zacks Medical - Drugs industry, posted revenues of $153.21 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.16%. This compares to year-ago revenues of $147.66 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Bioventus shares have added about 80.4% since the beginning of the year versus the S&P 500's gain of 13%. While Bioventus has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Bioventus was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.17 on $149.16 million in revenues for the coming quarter and $0.79 on $605.34 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Drugs is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, 4D Molecular Therapeutics, Inc. (FDMT), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $1.04 per share in its upcoming report, which represents a year-over-year change of -6.1%. The consensus EPS estimate for the quarter has been revised 1.5% lower over the last 30 days to the current level. 4D Molecular Therapeutics, Inc.'s revenues are expected to be $1.56 million, up 15500% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bioventus Inc. (BVS) : Free Stock Analysis Report 4D Molecular Therapeutics, Inc. (FDMT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Bioventus Inc.? Here are five stocks we like better. Bioventus reported solid second-quarter results, with revenue up 4% to $153 million, adjusted EBITDA rising to $35 million and adjusted EPS increasing to $0.22. The company reaffirmed its 2026 guidance for $600 million–$610 million in revenue and $0.75–$0.79 in adjusted EPS. Pain Treatments led performance, growing 12% to $82 million on strong demand for DUROLANE. Management also expects accelerating contributions from platelet-rich plasma, peripheral nerve stimulation and Ultrasonics during the second half. The board formed an independent committee to review strategic alternatives after receiving acquisition interest, including an unsolicited proposal; options may include a sale or continued standalone execution. Bioventus also reduced debt by $24 million during the quarter, lowering net leverage below 2 times. Bioventus (NASDAQ:BVS) reported second-quarter 2026 revenue growth of 4% and reiterated its full-year financial outlook, citing double-digit expansion in its Pain Treatments business, continued debt reduction and increased investment in platelet-rich plasma, peripheral nerve stimulation, Ultrasonics and international operations. The company also said its board formed a committee of independent directors to evaluate strategic options after receiving multiple expressions of interest and an unsolicited acquisition proposal. President and CEO Rob Claypoole said the alternatives could include a sale of the company or continued execution of Bioventus’ standalone plan. The committee is being advised by Evercore. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control “We have built a strong foundation for growth and success at Bioventus,” Claypoole said, adding that the committee would evaluate options intended to maximize shareholder value. The company did not provide additional details regarding the proposal or review process during its call. Second-quarter revenue totaled $153 million, up 4% from the prior-year period. Adjusted EBITDA was $35 million, an increase of more than $1 million year over year, while adjusted EBITDA margin expanded 20 basis points to 23% despite increased investment in growth initiatives. → 3 Drone Stocks That Should Soar After the Summer Slump Adjusted earnings were $0.22 per diluted share, compared with $0.21 a year earlier. Chief Financial Officer Mark Singleton said adjusted net income rose to $20 million from $19 million in the prior-year quarter, supported by revenue growth, stable gross margins and lower interest expense. Adjusted gross margin was 75%, down 90 basis points from the prior year, primarily reflecting higher freight costs and product mix. Adjusted operating and research-and-development expenses increased by $4 million as the company expanded spending on its growth drivers. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Bioventus reaffirmed its 2026 guidance: Revenue of $600 million to $610 million. Adjusted earnings per diluted share of $0.75 to $0.79. Cash from operations of $84 million to $89 million. Singleton said the company expects revenue growth in the second half to exceed first-half growth by more than 300 basis points. About half of that acceleration is expected to come from Surgical Solutions, including some order timing shifts from the second quarter, while the remainder is expected to come from faster growth in PRP and PNS. Global Pain Treatments revenue increased 12% to $82 million. The company attributed the result primarily to growth in hyaluronic acid therapies, led by its single-injection DUROLANE product. Claypoole said DUROLANE posted double-digit volume growth during the first half and continued to gain volume in existing accounts while adding new customers. Management pointed to DUROLANE’s clinical differentiation, broad private-payer coverage, dedicated sales force and disciplined pricing as factors supporting growth above the broader market. Claypoole said performance in the pain business was driven by volume growth rather than pricing. Bioventus also reported positive contributions from PRP and PNS, with both businesses expected to ramp in the second half. In PRP, the company said capital placements accelerated and disposable reorders became both larger and more frequent. Management said it is leveraging its HA sales force to support PRP adoption, with PRP also creating opportunities to win additional HA business. For PNS, Bioventus cited faster surgeon adoption, more StimTrial placements and high conversion rates to permanent TalisMann implants. Claypoole said the company expanded its PNS team during the quarter and is receiving favorable market feedback on the technology’s differentiation. He described PNS as an approximately $200 million market that could reach $500 million over the next several years, and said Bioventus aims to scale its PNS business to more than $100 million. Surgical Solutions revenue declined 5% year over year to $50 million, though it increased 5% sequentially. Singleton said results were affected by a difficult prior-year comparison and the timing of certain Ultrasonics capital placements and international orders. Those timing shifts moved about $2 million of revenue into the second half, representing more than 100 basis points of impact at the company level. Management said Ultrasonics disposable sales are accelerating, alongside increased surgeon adoption, new customer wins and additional placements. Claypoole said the timing of capital placements alone represented nearly a 400-basis-point impact on Surgical Solutions growth. The company expects early indicators, including new wins with larger accounts and integrated delivery networks, to support second-half growth. Revenue from bone graft substitutes was also pressured by a difficult comparison and deliberate portfolio actions intended to prioritize higher-margin opportunities. Management did not quantify the revenue impact of those actions but said it had gained new large accounts and was seeing early penetration at recently won customers. Restorative Therapies revenue declined 2% to $21 million, driven by a shift in payer mix involving fewer Medicare orders and a difficult prior-year comparison. Claypoole said volume grew in the quarter and that Bioventus expects EXOGEN to return to low- to mid-single-digit growth in the second half. He said a CMS pricing reversal was not expected to have a material impact. Cash flow from operations was $20 million in the quarter. Bioventus ended the period with $29 million in cash and $248 million in outstanding debt, after repaying an additional $24 million of its term loan. Total debt repayment for the first half was $46 million. The company said net leverage fell below 2 times and is expected to be below 1.5 times by year-end. Singleton said cash from operations is expected to approximately double in the second half compared with the first half as Bioventus continues to prioritize debt repayment and balance-sheet strength. Bioventus, headquartered in Durham, North Carolina, is a global medical device company specializing in orthobiologic solutions aimed at accelerating healing and improving patient outcomes in musculoskeletal conditions. The company develops and commercializes a portfolio of non‐surgical therapies designed to address bone healing, osteoarthritis pain management and soft tissue repair. Its flagship EXOGEN® Ultrasound Bone Healing System utilizes low‐intensity pulsed ultrasound technology to stimulate bone growth and has been widely used in the management of delayed fractures and nonunions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Bioventus Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

The market expects Relay Therapeutics, Inc. (RLAY) to deliver flat earnings compared to the year-ago quarter on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly loss of $0.41 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $2.69 million, up 295.6% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.45% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Relay Therapeutics, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +4.29%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Relay Therapeutics will most likely beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Relay Therapeutics would post a loss of$0.35 per share when it actually produced a loss of -$0.41, delivering a surprise of -17.14%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Relay Therapeutics appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Medical - Drugs industry, Bioventus (BVS), is soon expected to post earnings of $0.22 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +4.8%. Revenues for the quarter are expected to be $155.01 million, up 5% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Bioventus has remained unchanged. Nevertheless, the company now has an Earnings ESP of -2.33%, reflecting a lower Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that Bioventus will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Relay Therapeutics, Inc. (RLAY) : Free Stock Analysis Report Bioventus Inc. (BVS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research