Breaking Down Nevro Corp. (NVRO) Financial Health: Key Insights for Investors

You're looking at Nevro Corp. (NVRO) to understand its financial trajectory, but honestly, the biggest headline for 2025 isn't an earnings beat-it's the fact that Globus Medical completed the acquisition of the company on April 3, 2025, fundamentally changing the investment thesis. Before that strategic pivot, analysts were projecting a full-year 2025 revenue of approximately $414.80 million, a modest increase of about 1.54% over the prior year, with an expected Earnings Per Share (EPS) loss of -$2.49, showing a defintely improving trend from the 2024 loss. This pre-acquisition picture of slow-but-improving fundamentals is now secondary to the integration risk and the opportunity to scale Nevro's high-frequency spinal cord stimulation (SCS) platform, including the new AI-driven HFX AdaptivAI™ technology, within a larger medical device portfolio. The core question now is how Globus Medical will use Nevro's approximately $292.5 million in cash and short-term investments (as of late 2024) to accelerate market penetration and realize the promised synergies, especially since the consensus analyst rating was a cautious 'Hold' with an average price target of $7.24 just before the deal closed.

Revenue Analysis

You need to know where the money is coming from, and for Nevro Corp. (NVRO), the story for 2025 is fundamentally shaped by its acquisition by Globus Medical, which closed in the second quarter of the year. This means we are now looking at Nevro's revenue as a high-value segment within a larger entity, not as a standalone company for the full year.

The core of Nevro's revenue-its primary source-comes from the sale of its HFX spinal cord stimulation (SCS) platform. This platform is a comprehensive neuromodulation system for chronic pain, anchored by devices like the Senza SCS system and the newer Senza HFX iQ with HFX AdaptivAI. Honestly, this is a medical device company, so the revenue is overwhelmingly product-based, specifically from the sale and replacement of these implanted devices, plus the associated leads and trial stimulators.

Here's the quick math on the near-term performance: in the third quarter of 2025 (Q3 2025), the Nevro segment contributed a revenue of $99.3 million to Globus Medical's consolidated results. This segment revenue showed a solid 4.9% sequential increase over the prior quarter, which tells you the integration is accelerating profitability ahead of schedule.

Looking at the trend, Nevro was facing revenue headwinds before the acquisition. The full-year 2024 worldwide revenue was $408.5 million, which marked a year-over-year decrease of 3.9% compared to 2023. The primary market is the U.S., which is where you should focus your attention.

The contribution of different business segments to overall revenue is starkly regional. The vast majority of the revenue comes from the U.S. market, which accounted for approximately $353.1 million of the 2024 total. This means the U.S. is responsible for roughly 86.4% of the company's sales. International revenue, while important for diversification, was only $55.4 million in 2024.

The most significant change in the revenue streams is the shift from a struggling standalone growth profile to a focused, integrated segment. The expectation is that the investment in direct-to-consumer (DTC) advertising, which was ramped up in late 2024, will continue to drive patient interest and a more meaningful revenue impact through the second half of 2025. The other key product line, sacroiliac (SI) joint fusion devices (NevroV1, NevroFix, and NevroPro), is a smaller, but growing, diversification play. You can read more about the strategic context of the company's market position here: Exploring Nevro Corp. (NVRO) Investor Profile: Who's Buying and Why?

• Primary Product: HFX spinal cord stimulation (SCS) platform.
• Q3 2025 Revenue (Segment): $99.3 million.
• Sequential Growth: Q3 2025 revenue was up 4.9% over Q2 2025.
• 2024 Worldwide Revenue: $408.5 million.
• Regional Concentration: U.S. market contributes over 86% of sales.

Profitability Metrics

You're looking at Nevro Corp. (NVRO) and seeing a company that was historically losing money, but the 2025 numbers tell a much better story. The key takeaway is simple: the acquisition by Globus Medical has been an immediate catalyst for operational efficiency, flipping a loss-making entity into a profitable business unit in a matter of months. That's the power of consolidation.

Nevro's financial health needs to be viewed through two lenses: the standalone, pre-acquisition performance in 2024, and its Q3 2025 performance as a segment of Globus Medical. The shift in operational efficiency is stark. In 2024, Nevro reported a full-year net loss from operations of $126.2 million and a negative Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $13.6 million. That's a serious cash burn. For a deeper look at the market dynamics behind this turnaround, you should read Exploring Nevro Corp. (NVRO) Investor Profile: Who's Buying and Why?

Gross and Operating Margin Trends

The gross profit margin is where you see the quality of the product and the efficiency of manufacturing. Nevro's full-year 2024 gross margin was 66.0%, which was actually a decline from the prior year, signaling some cost pressures or pricing challenges before the merger. But look at the change in 2025. In the third quarter of 2025, the Nevro business unit achieved an adjusted gross profit margin of 67.6% under Globus Medical's management. That's a quick, tangible improvement.

The real action is in the operating profit. Moving from a negative Adjusted EBITDA to a positive margin is a huge win. The Nevro business delivered a positive adjusted EBITDA margin of 16.2% in Q3 2025 on revenue of $99.3 million. Here's the quick math on that turnaround: the combination of cost management and eliminating redundant corporate overhead post-merger immediately drove profitability. They cut the fat, and it shows.

• Gross Margin (Q3 2025): 67.6% (Adjusted) - A solid improvement over the prior year.
• Operating Margin (Q3 2025): 16.2% (Adjusted EBITDA Margin) - A positive flip from a loss.
• Net Profit: Expected to be accretive to non-GAAP EPS in fiscal year 2025.

Industry Profitability Benchmarks

To be fair, Nevro's profitability still trails the upper echelon of the broader medical device (Medtech) industry, where average profit margins can hover around 22%. You want to see them push past that 16.2% adjusted EBITDA margin. Still, Nevro's gross margin of 67.6% is competitive, sitting slightly above a major player like Medtronic, which reported a gross margin of 65.8% in its Q2 2025. It's a high-margin business, but operational expenses (OpEx) are what kill the bottom line.

The trend is what matters most for investors right now. The Nevro business is now expected to be accretive to non-GAAP earnings per share (EPS) in fiscal year 2025, which is a significant milestone. They've moved from a capital-intensive, loss-generating operation to a value-add segment for the parent company. This is defintely a case where a strategic acquisition unlocked immediate financial performance.

The next step for you is to monitor Globus Medical's consolidated earnings calls for Q4 2025. Specifically, look for commentary on Nevro's continued gross margin expansion and any guidance for its 2026 operating margin. That will show if the 16.2% is sustainable or if it was just a one-time synergy bump.

Debt vs. Equity Structure

You're looking at Nevro Corp. (NVRO)'s balance sheet to understand how they funded their growth, and the most critical insight for 2025 is that the company's debt structure was completely overhauled-not by a refinancing, but by an acquisition. The financial health story of Nevro Corp. is now a pre-merger story and a post-merger reality.

Before the merger with Globus Medical, Nevro Corp. relied on a mix of debt and equity, a common strategy for a growing medical device company. As of December 31, 2024, the company carried a total of approximately $225.64 million in debt, which included roughly $37.97 million in short-term debt and $187.67 million in long-term debt. That debt load was primarily driven by their 2.75% Convertible Senior Notes due in 2025 and a term loan under their Credit Agreement. That's a significant chunk of change that was set to mature right in the middle of 2025.

Here's the quick math on their leverage: Nevro Corp.'s Debt-to-Equity (D/E) ratio stood at about 1.09 based on recent figures. This ratio, which measures how much debt a company uses to finance its assets relative to shareholder equity, was notably higher than the industry median for the 'Surgical and Medical Instruments and Apparatus' sector, which hovered around 0.70 in 2024. Honestly, a D/E over 1.0 means that creditors were funding more of the company's assets than its shareholders were. That's a higher-risk profile than many peers, but still manageable for a growth-focused medical technology firm.

The near-term risk of that maturing debt was completely eliminated in the first half of 2025. The most decisive financial action of the year was the merger with Globus Medical, which closed on April 3, 2025. This all-cash deal immediately triggered the repayment of Nevro Corp.'s major debt instruments. Specifically, the company paid off approximately $190 million in aggregate principal for their Convertible Senior Notes and prepaid the full outstanding balance of roughly $227.1 million under its Credit Agreement. That's a massive, immediate deleveraging event.

What this estimate hides is the strategic shift. Prior to the merger, Nevro Corp. used convertible notes-a hybrid debt-equity instrument-to raise capital. This allowed them to borrow money at a lower interest rate, plus it gave investors the option to convert the debt into stock if the share price rose, thereby balancing debt financing with potential future equity dilution. Post-merger, as a wholly-owned subsidiary of Globus Medical, Nevro Corp. has essentially zero public debt, simplifying its financing structure to one of internal funding from its new parent company. This is a complete change in their capital allocation strategy, moving from an independent, debt-leveraged growth model to a fully-funded subsidiary model. You can find more detailed analysis on the overall transaction in Breaking Down Nevro Corp. (NVRO) Financial Health: Key Insights for Investors.

• Pre-merger D/E ratio was approximately 1.09, above the industry median of 0.70.
• The 2025 merger led to the repayment of $190 million in Convertible Senior Notes.
• Another $227.1 million Credit Agreement was prepaid in full on April 1, 2025.
• The debt-to-equity balance is now moot; the company is debt-free as a subsidiary.

Liquidity and Solvency

You're looking for the true picture of Nevro Corp. (NVRO)'s financial stability, and the numbers show a paradox: fantastic short-term liquidity on paper, but a reliance on the balance sheet to cover operations. The good news is the pending acquisition by Globus Medical, announced in February 2025, largely de-risks the immediate future, providing a clear exit for shareholders at $5.85 per share, or a total equity value of approximately $250 million.

Nevro Corp.'s balance sheet, as of the end of the 2024 fiscal year, shows very strong static liquidity positions. Your current ratio (Current Assets divided by Current Liabilities) sits at 5.02, which is exceptionally high. This means the company has over five times the assets it needs to cover its bills coming due in the next year. The quick ratio (or acid-test ratio), which strips out inventory-often the least liquid current asset-is also robust at 3.76. Anything over 1.0 is generally considered healthy, so this is defintely a strength.

Here's the quick math on working capital (Current Assets minus Current Liabilities) for FY 2024.

• Total Current Assets: $476 million
• Total Current Liabilities: $102.94 million
• Working Capital: $373.06 million

Cash Flow: The Dynamic Liquidity Challenge

Still, a deep dive into the cash flow statement for the 2024 fiscal year reveals the core problem: the business is burning cash from its main operations. Operating Cash Flow (OCF) was negative, coming in at -$19.44 million for the full year 2024. This negative OCF means the company's core business activity isn't generating enough cash to fund itself, forcing them to rely on their war chest of cash and investments.

To be fair, the other cash flow sections show some movement, but the negative OCF is the one you need to watch. The Investing Cash Flow was a net inflow of $14.63 million in FY 2024, largely due to activity in securities, which is a bit of a mixed signal. Financing Cash Flow was a net outflow, as the company managed its debt and other obligations. The table below provides the full picture for the 2024 fiscal year (FY 2024) cash flow trends:

The company's cash, cash equivalents and short-term investments totaled $292.5 million as of December 31, 2024. This is the buffer. The ongoing cash burn from operations is why the company explored strategic options, which led to the acquisition. The strategic rationale for the acquisition is clear, but you can read more about the company's long-term goals here: Mission Statement, Vision, & Core Values of Nevro Corp. (NVRO).

The action for you is simple: if you are still holding shares, the liquidity risk is largely gone because the deal is expected to close in the second quarter of 2025. If the deal were to fall apart, however, the negative OCF and the need to fund a net loss of -$113.44 million (FY 2024) would put significant pressure back on that $292.5 million cash balance.

Valuation Analysis

The question of whether Nevro Corp. (NVRO) was overvalued or undervalued was definitively answered in early 2025: the company was acquired by Globus Medical for an all-cash transaction valued at approximately $250 million, or $5.85 per share. This acquisition, which closed on April 3, 2025, sets the final, realized value for shareholders and effectively delisted the stock from the New York Stock Exchange (NYSE).

Before the deal, traditional valuation metrics painted a mixed picture, which is common for a medical device company focused on growth over immediate profitability. The company did not pay a dividend, so dividend yield and payout ratios were N/A.

Here's the quick math on the pre-acquisition valuation:

• Price-to-Earnings (P/E) Ratio: The P/E ratio was negative (around -1.91 on a TTM basis in August 2025) because Nevro Corp. was not profitable, reporting a net loss from operations of $126.2 million for the full-year 2024. A negative P/E ratio means you can't use it for traditional comparison.
• Price-to-Book (P/B) Ratio: This was a clearer signal, sitting around 0.96. A P/B below 1.0 suggests the stock was trading below its book value (assets minus liabilities), which often flags a potentially undervalued situation or a business facing significant operational headwinds.
• Enterprise Value-to-EBITDA (EV/EBITDA): This metric was largely N/A or unhelpful because the company's 2024 Adjusted EBITDA was also negative $13.6 million. You can't get a meaningful multiple when the denominator is negative; it just shows the business was burning cash from core operations.

To be fair, the P/B ratio of 0.96 was the most compelling argument for an 'undervalued' thesis before the acquisition news, suggesting the market wasn't giving the company credit for its balance sheet assets. This is defintely something a strategic buyer like Globus Medical would notice.

The stock price trends over the 12 months leading up to the acquisition announcement in February 2025 showed significant volatility and downward pressure. The stock traded in a 52-week range between a low of $3.17 and a high of $10.34, reflecting a year-over-year price change of approximately -56.16%. The final acquisition price of $5.85 per share was near the middle of this range, but a premium to the stock's trading price just before the announcement.

Analyst consensus, prior to the definitive agreement, was cautious. The general consensus rating was a Hold from the majority of analysts, with an average target price that varied, but was generally in the $5.04 to $7.24 range. The final deal price of $5.85 per share fell squarely within this range, validating the market's mixed, but ultimately neutral, view on the company's standalone prospects.

For a deeper dive into the institutional interest that drove Nevro Corp.'s stock activity before the acquisition, you should check out Exploring Nevro Corp. (NVRO) Investor Profile: Who's Buying and Why?

Risk Factors

For Nevro Corp. (NVRO) investors, the single biggest factor right now is the pending acquisition by Globus Medical, which is expected to close late in the second quarter of 2025. This deal fundamentally shifts your risk profile from long-term operational execution to short-term deal completion and integration.

The company is not issuing its own full-year 2025 financial guidance due to the pending transaction, but Globus Medical anticipates the combined entity's 2025 net sales to be between $2.80 billion and $2.90 billion, with fully diluted non-GAAP earnings per share (EPS) in the $3.10 to $3.40 range. Still, even with this strategic pivot, there are clear, near-term risks you need to watch.

Acquisition and Financial Risks: The Near-Term View

The primary risk is that the merger agreement, announced in February 2025, may not close. This could happen if Nevro's stockholders or regulatory bodies withhold approval. If the deal terminates under specified circumstances, Nevro may be required to pay Globus Medical a termination fee of $10.0 million or $15.0 million, depending on the reason. Honestly, that's a significant financial hit for a company that reported a full-year 2024 net loss from operations of $126.2 million.

• Termination Fees: A failure to close could trigger a $10.0 million to $15.0 million payment from Nevro.
• Integration Risk: Post-close, the risk shifts to Globus Medical's ability to successfully integrate Nevro's business and achieve the anticipated synergies.
• Liquidity Buffer: To be fair, Nevro maintains a strong short-term financial position with a current ratio of 5.02, which helps manage immediate cash needs.

Operational and Competitive Headwinds

Even before the acquisition, Nevro was facing significant operational challenges that reflect the highly competitive spinal cord stimulation (SCS) market. The company's core business saw a sequential revenue decline, with fourth-quarter 2024 worldwide revenue decreasing 9.1% year-over-year to $105.5 million. Plus, the critical U.S. trial procedures dropped by 15.2% in the third quarter of 2024 compared to the prior year, signaling a weakening sales funnel.

Larger competitors are defintely launching new products, which puts pressure on Nevro's market share, even with their differentiated 10 kHz high-frequency therapy. The company has been working to combat this, implementing cost-cutting measures that resulted in approximately $30 million in savings from 2024 restructurings and launching the HFX iQ™ with HFX AdaptivAI™ platform. But the market softness is real.

Regulatory and External Market Risks

As a medical device company, Nevro Corp. (NVRO) is subject to extensive governmental regulation, primarily from the U.S. Food and Drug Administration (FDA) and corresponding foreign agencies. Any failure to comply with these requirements, or a delay in receiving clearance for new products like the HFX iQ™ system in new markets, could hurt the business. The company did receive CE Mark Certification for HFX iQ™ in November 2024, allowing its launch in select European countries in January 2025, which is a positive step.

Beyond regulation, the broader market conditions for elective procedures, which include SCS implants, can fluctuate based on macroeconomic factors. So, while the acquisition provides a clear exit at $5.85 per share, investors should monitor the regulatory landscape and the integration process closely. For a deeper dive into the company's valuation, you can read more here: Breaking Down Nevro Corp. (NVRO) Financial Health: Key Insights for Investors.

Growth Opportunities

The future growth story for Nevro Corp. (NVRO) is no longer about its standalone performance; it's about its integration into Globus Medical, which is already proving to be a powerful catalyst. The key takeaway is simple: Nevro's differentiated technology is accelerating profitability for the combined entity much faster than anticipated, making its market penetration a near-term growth driver.

Honestly, the February 2025 acquisition by Globus Medical for $5.85 per share fundamentally changed the risk/reward profile. This strategic move validated Nevro's core technology and immediately injected it into a larger, more operationally mature commercial engine. We're not looking at a small medtech company struggling for market share anymore; we're looking at a critical growth segment for a major musculoskeletal player.

Here's the quick math on the near-term impact, based on Globus Medical's Q3 2025 results. The Nevro business contributed $99.3 million in revenue in that quarter alone, and its adjusted EBITDA margin hit a positive 16.2%. That's a strong signal. What this estimate hides is the power of synergy: Globus Medical now expects the Nevro business to be accretive (adding to) non-GAAP earnings per share in fiscal year 2025, not the second year post-acquisition as originally projected. That's a huge acceleration of value.

The growth drivers are concrete and tied to product innovation and market expansion:

• Proprietary 10 kHz Therapy™: This high-frequency Spinal Cord Stimulation (SCS) therapy remains Nevro's core competitive advantage, offering superior, paresthesia-free (no uncomfortable tingling) pain relief.
• HFX iQ™ with HFX AdaptivAI™: The AI-enhanced platform, launched in late 2024, allows for personalized, responsive pain management. It's a defintely a step-change in intelligent neuromodulation.
• Sacroiliac (SI) Joint Fusion: The Nevro1™ SI Joint Fusion System diversifies the portfolio, moving into earlier-in-care continuum therapies for chronic back pain.
• Device Replacements: A cyclical boost is expected as a significant number of first-generation implants from 2015 to 2017 reach their end-of-battery-life, driving replacement procedures in 2025 and beyond.

Nevro's competitive edge remains its clinical differentiation. The 10 kHz Therapy is the only one with a specific FDA indication to treat painful diabetic neuropathy (PDN). This opens a massive, underserved patient population, and the company's increased direct-to-consumer (DTC) advertising efforts are designed to drive patient awareness, with a more meaningful impact expected in the second half of 2025.

The strategic partnership is the acquisition itself. Globus Medical's strong commercial footprint and operational scale will accelerate HFX iQ™'s market penetration, especially as its international rollout in Europe, following CE Mark certification, continues through 2025. This combined strength is what you should focus on. If you want to dive deeper into the ownership structure, you can read Exploring Nevro Corp. (NVRO) Investor Profile: Who's Buying and Why?

To summarize the forward-looking financial picture, the market is now viewing Nevro's contribution as a significant uplift to the parent company's bottom line in 2025.

The action for you is to stop analyzing Nevro Corp. as a standalone stock and start viewing it as a powerful, high-growth product line within Globus Medical's portfolio.