Bioventus (NASDAQ:BVS) executives outlined a multi-year turnaround story and a set of new growth priorities during a presentation and Q&A session hosted by J.P. Morgan healthcare analyst David Brumund. CEO Rob Claypoole and CFO Mark Singleton emphasized recent margin and cash flow improvements, reduced leverage, and a plan to invest in four growth drivers while maintaining financial discipline.
Company overview and recent transformation
Claypoole said Bioventus operates across three businesses—pain treatments, surgical solutions, and restorative therapies—and is generating more than $550 million in annual revenue in markets representing more than $6 billion in opportunity. He described the company’s portfolio as focused on “differentiated energy and orthobiologic solutions” for musculoskeletal conditions.
Claypoole cited several outcomes from the changes:
- Revenue growth “well above the market,”
- Peer-leading gross margin in the “mid-70s,”
- EBITDA margin expansion of roughly 700 basis points, and
- More than $100 million in operating cash flow over the last two years.
Looking ahead, Claypoole said the company’s ambition is to become “a leading med tech company that’s over $1 billion in size,” with durable growth, high margins, and significant cash flow.
Portfolio strategy: core, expansion, and emerging platforms
Claypoole described Bioventus’ portfolio as organized into three platforms: core, expansion, and emerging growth drivers. The core includes hyaluronic acid (HA), bone graft substitutes, and fracture care. He said these legacy businesses account for most current revenue, carry very high margins, generate significant cash flow, and “consistently” grow above the market even if not as quickly as newer categories.
The expansion platform includes two of the company’s growth drivers—ultrasonics and international—which Claypoole said are already contributing strong growth with near-term acceleration expected. The emerging growth platform includes peripheral nerve stimulation (PNS) and platelet-rich plasma (PRP), which management called early-stage but positioned to become meaningful longer-term drivers.
Claypoole emphasized that the cash flow generated by the core business is intended to fund investment in the faster-growing platforms “without sacrificing profitability or balance sheet discipline.”
Four growth drivers and planned investments
Management’s four growth drivers are PNS, PRP, ultrasonics, and international. Claypoole said the company plans to invest “disproportionately” in expansion and emerging platforms starting this year, including milestone-based expansion of the PNS sales organization, targeted increases in international sales resources, and increased marketing to raise awareness of the company’s “differentiated clinical and economic benefits.” He also said Bioventus will continue investing in product innovation, particularly in ultrasonics and PNS, and that investments will be evaluated “through a strict ROIC lens.”
PNS: Claypoole said PNS is a fast-growing space (over $250 million in size and growing around 24%). Bioventus recently received FDA clearance for its Talisman and StimTrial technology and is moving from a pilot into a full launch. He said the platform is designed specifically for peripheral nerves, uses a “more powerful and effective” form of energy with potential to reach deeper and larger nerves, and is the smallest wearable on the market. In Q&A, he said pilot feedback has been “extremely positive.”
PRP: Claypoole described PRP as a roughly $400 million market growing over 10%. Bioventus entered the space toward the end of last year. He said the company’s system uses a single centrifuge spin, saving physician and patient time, and supports customization for different patients and conditions within one system. He also highlighted a commercial synergy with the HA salesforce, noting that many HA surgeons also use PRP.
Claypoole added that although PNS and PRP are early-stage, the company expects the two together to contribute 200 basis points of growth to Bioventus in 2026.
Ultrasonics: Claypoole said ultrasonics has been Bioventus’ fastest growth driver in recent years, driven by technology used primarily in spinal surgery for bone cutting. He said management believes it can become the standard of care due to precision, tissue-sparing resections, and “safer and more controlled” outcomes, adding that some surgeons report the tool is easier on their hands. The company also plans to leverage the platform for select neurosurgery and general surgery procedures.
International: Claypoole said international represents a market opportunity of more than $2 billion and has been underpenetrated because Bioventus historically was U.S.-focused and lacked resources and capability to pursue it. He said the company is changing course with new leadership, stronger prioritization, and a targeted investment plan. In Q&A, he highlighted EMEA and APAC, and said the approach will be selective—focusing on specific countries and parts of the portfolio rather than entering all markets at once.
Profitability, cash flow, and capital allocation
Claypoole said the company’s gross margin in the mid-70% range provides flexibility to invest for growth while continuing to expand profitability. While Bioventus did not provide formal guidance during the event, Claypoole said the company expects adjusted EPS in 2026 to grow “two to three times faster than revenue,” after what he described as a “very significant increase” in EPS in 2025.
On cash flow and leverage, Claypoole said Bioventus used increased cash generation to pay down debt, which is now below $300 million, reducing leverage to below 2.5x. He reiterated management’s priority is continued deleveraging with “a clear line of sight” to reducing leverage below 2x.
Singleton said cash flow is an “underappreciated” part of the company’s story. He noted that from 2024 to 2025, Bioventus expects to almost double cash flow—an improvement from negative cash flow “a few years ago.” Looking to 2026, Singleton said management expects further acceleration driven by lower interest expense from debt paydown, a term-loan refinance that secured better rates, and continued operating profit improvement. He added that the company expects cash flow to grow faster than revenue in 2026, consistent with its focus on growing EBITDA faster than revenue.
Management said it will also consider M&A, but with a “very high bar,” focusing on highly synergistic tuck-in opportunities that meet strong financial metrics. Claypoole also said it is “responsible” to consider returning cash to shareholders versus share repurchases, but emphasized debt repayment as the top priority.
Planning for tariffs and FX
In response to a question about macro headwinds, Singleton said Bioventus had built $5 million of combined tariff and FX headwinds into its 2025 guidance and said the company was reiterating its full-year guidance as of the third quarter despite those pressures. For 2026, he said the company is planning for $1–$2 million of previously announced tariffs, acknowledging conditions could change. On foreign exchange, he said planning assumptions reflect the U.S. dollar staying at current levels, while noting FX is difficult to predict.
The session concluded without audience questions after the Q&A with J.P. Morgan.
About Bioventus (NASDAQ:BVS)
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.
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