Shares declined 12.6% as investors reacted negatively to a cautious revenue mix shift and softer growth in Enabling Technologies, signaling concerns over decelerating upfront sales and a more conservative capital equipment approach.

• Total Q1 revenue rose 27% to $759.9 million, with base business growth at 13.2%, led by a resilient 10% increase in U.S. Spine sales.
• Enabling Technologies revenue grew 21% to $26.9 million but showed a sequential step down; management highlighted a shift from upfront sales to leases and rentals, reducing near-term revenue recognition.
• International Spine sales increased 16.4% reported (9.8% constant currency), benefiting from easing prior-year supply chain disruptions primarily in EMEA and Latin America.
• The recurring revenue strategy focusing on implant pull-through and service was reiterated, but execution risks remain amid rising competitive pressures in robotics and evolving capital acquisition models.
• Despite strong free cash flow and margin expansion commentary, the market appears concerned about slower near-term visibility and the impact of a more cautious guidance posture embedded in the revenue mix.