Bioventus Q3 Sales Rise 3%, 2026 Revenue Seen at $590M-$595M

Bioventus Inc. (BVS) reported modest third-quarter revenue growth as strength in Pain Treatments and Ultrasonics offset weakness in Bone Graft Substitutes, while the medical-device company set 2026 net sales guidance at $590 million to $595 million and reaffirmed its adjusted earnings outlook.

Net sales rose 3% to $142 million from $139 million in the prior-year quarter. Excluding Bone Graft Substitutes, or BGS, quarterly revenue increased 6%. Bioventus reported net income attributable to the company of $6 million, compared with $3 million a year earlier, while diluted earnings per Class A share increased to $0.08 from $0.05.

Gross profit rose to $97 million from $94 million, with GAAP gross margin holding at 68%. Operating income declined to $10 million from $11 million.

On an adjusted basis, EBITDA increased to $28.4 million from $26.6 million, and adjusted EBITDA margin expanded 70 basis points to 20%. Adjusted net income rose 10% to $14.8 million, while adjusted diluted earnings per share increased 13% to $0.17. Adjusted operating income was $23.4 million, compared with $23.6 million a year earlier.

The adjusted results exclude several items, including $3.6 million of legal and consulting costs associated with Bioventus’ review of potential strategic alternatives. The company said that review remains underway and that it will continue assessing its options before determining a path forward.

Pain Treatments leads portfolio growth

Pain Treatments revenue increased 6% to $71 million and was up 9% for the first nine months of 2026. Bioventus attributed the performance to its broad hyaluronic acid portfolio and the differentiation of Durolane, alongside early traction in peripheral nerve stimulation, or PNS, and platelet-rich plasma, or PRP.

The company accelerated PRP capital placements during the quarter and reported a meaningful increase in disposable reorders, with reorder revenue exceeding revenue from capital placements. It also secured exclusive rights from Apex Biologix for Sports Medicine accounts, providing another route to expand the business.

Bioventus said PNS indicators showed greater physician engagement and better conversion efficiency. The company also strengthened the business’s leadership and commercial capabilities.

Surgical Solutions revenue increased 1% to $51 million. Strong double-digit growth in Ultrasonics, supported by greater surgeon adoption, disposable sales and new accounts, was partly offset by weaker BGS revenue. The company said BGS performance was affected by softer procedure volumes, delays in adding distributors and pressure in synthetic products.

Restorative Therapies revenue declined 3% and was affected by increased vacancies in the EXOGEN sales force, which Bioventus said have since been filled. International revenue increased 16% from the prior-year period, driven by talent additions and a focus on selected markets.

Adjusted gross profit rose to $106.4 million from $104.2 million, but adjusted gross margin narrowed by 50 basis points to 74.7%. Bioventus attributed the contraction to product mix, including higher PNS and PRP revenue and lower BGS sales. Adjusted research and development and operating expenses increased by a combined $2 million as the company invested in growth initiatives while pursuing cost efficiencies.

Debt falls as cash generation supports deleveraging

Cash from operations totaled $21 million in the quarter. Bioventus repaid $19 million of debt, bringing year-to-date debt reduction to $65 million. It ended the period with $31 million in cash and $230 million of outstanding debt, while net debt fell below $200 million.

Management expects the net leverage ratio to be below 1.5 times by the end of 2026. The company said further debt reduction should lower interest expense and increase its capacity to direct capital toward higher-value opportunities.

For 2026, Bioventus reaffirmed adjusted diluted earnings guidance of $0.75 to $0.79 per share. It also presented adjusted cash-from-operations guidance of $84 million to $89 million, excluding cash costs associated with the strategic alternatives review. Management expects full-year adjusted EBITDA margin to exceed the prior-year level.

The outlook remains subject to uncertainty surrounding the strategic review, including its timing, costs and potential effect on customers, employees and management attention. Bioventus also identified risks involving rebate claims, tariffs, regulatory requirements, reimbursement, product demand, supply disruptions, competition, debt covenants and its reliance on a limited number of products and third-party manufacturers.