Bioventus Cuts 2026 Revenue Outlook To $590 Million-$595 Million As Bone Graft Slumps
The CEO said the strategic review is ongoing and took no questions on it, while management called the bone graft slowdown transitory.
Bioventus, which makes pain, surgical and bone-healing medical devices, lowered its 2026 revenue outlook to $590 million to $595 million, Senior Vice President and CFO Mark Singleton said on the company's earnings call Monday. President and CEO Rob Claypoole said on the same call that he would take no questions on the company's strategic review.
A review the CEO won't discuss
Claypoole said the review was prompted by "an unsolicited acquisition proposal and multiple expressions of interest," is ongoing, and that the company "will not be answering any questions regarding this strategic review."
An analyst from CGS Securities asked whether management would like a result by year end, a soft target. Claypoole answered only that the review is ongoing and he could not comment on details.
Bone grafts drive the cut
The guidance cut is roughly $12 million at the midpoint, Claypoole said, and more than half of it came from the third quarter, driven mainly by bone graft substitutes. The rest reflects the same business and the timing of new sales reps being onboarded.
Management blamed competitive pressure in synthetic grafts, slower spine procedures and delays adding distributors, and called all of it transitory. Claypoole said the company acted late in the third quarter and that October is tracking ahead of its expectations.
Third-quarter revenue was $142 million, up 3%. Pain treatments rose 6% to $71 million, surgical solutions rose 1% to $51 million, and restorative therapies fell 3% to $21 million. International grew 16% to $18 million. The revised outlook assumes mid-single-digit revenue growth in the fourth quarter.
Adjusted earnings were 17 cents a share, up from 15 cents a year earlier, and the 75 cents to 79 cents full-year adjusted earnings guidance was reaffirmed. Adjusted EBITDA margin was 20%, up 70 basis points (0.70 percentage points) from a year earlier.
Investment rises, debt falls
Claypoole said investment in the four growth drivers has climbed to almost $15 million, from the $13 million planned at the start of the year. Peripheral nerve stimulation and platelet-rich plasma are tracking "a little shy of the 200 basis points" of growth lift the company expected, he said. He added that Bioventus expects to scale its nerve stimulation business to over $100 million in the coming years, without offering 2027 guidance.
Operating cash flow was $21 million in the quarter. The company repaid another $19 million of its term loan, bringing the year's repayments to $65 million, and Claypoole said net debt fell below $200 million. Singleton said it ended the period with $31 million in cash and $230 million of debt.
Singleton said the company still expects net leverage below one and a half times by the end of the year.
Sources
- Bioventus Shares Fall on 3Q Sales Miss, Cut to Outlook — MarketWatch
- Bioventus Non-GAAP EPS of $0.17 beats by $0.01, revenue of $142.4M misses by $7.12M (BVS:NASDAQ) | Seeking Alpha — seekingalpha.com
- Bioventus Q3 2026 Earnings Call Transcript — benzinga.com
- Bioventus (BVS) Matches Q3 Earnings Estimates — Yahoo Finance
- Bioventus: Q3 Earnings Snapshot | wusa9.com — Associated Press
