Revenue Growth and Guidance Reaffirmed
Q1 revenue of $132.0M, up 7% year-over-year; company reaffirmed 2026 revenue guidance at $600M–$610M.
Strong Adjusted EBITDA Expansion
Adjusted EBITDA of $24M, up 24% YoY (~$5M increase); adjusted EBITDA margin expanded to 18%, up 260 basis points versus prior year.
Adjusted EPS Nearly Doubled and Guidance Raised
Adjusted EPS of $0.15 in Q1 vs $0.08 prior year (nearly double); full-year adjusted EPS guidance increased to $0.75–$0.79 (up $0.02).
Improved Gross Margin and Profitability
Adjusted gross margin 76%, up 110 basis points YoY driven by a favorable rebate adjustment and a refund of prior-year tariffs; adjusted operating income $20M (up ~ $3M) and adjusted net income $13M (up $7M).
Material Cash Flow and Balance Sheet Progress
Cash from operations was $9M in Q1, an increase of ~$28M YoY and the largest Q1 operating cash flow since becoming public; cash on hand $36M and debt reduced by $22M to $272M; company expects net leverage <2x by end of Q2 2026.
International and Segment Momentum
International revenue grew 17% YoY (11% constant currency); Pain Treatments +8%, Surgical +6% and Restorative Therapies +5%; Ultrasonics showed improved growth in Europe and is positioned to be a growth driver.
Focused Investment in Growth Drivers and Leadership Hire
Company is accelerating investment into PNS, PRP, Ultrasonics and International (planned $13M incremental investment for the year, with >50% of planned investments targeted at PNS); hired Megan Rosengarten as General Manager for PNS to scale the business.
Upgraded Cash From Operations Guidance
Full-year cash from operations guidance raised to $84M–$89M (up $2M versus prior guidance).