Free cash flow margin reached 22.4% in Q2 2026 with FCF of $176.6M, and operating cash flow exceeded net income (OCF/NI of 1.38), though working capital swings and acquisition-related outflows warrant monitoring.
Globus Medical, Inc. (GMED) cash flow statement — 16-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 |
|---|
| Cash from Operations | 925.92M | 753.45M | 520.64M | 243.5M | 178.47M | 276.27M | 198.79M | 171.97M | 181.64M | 159.53M | 171.89M | 121.96M | 79.17M | 93.47M | 76.52M | 76.41M | 71.29M |
| Operating CF Margin % | - | 25.64% | 20.67% | 15.52% | 17.45% | 28.84% | 25.19% | 21.9% | 25.48% | 25.09% | 30.48% | 22.39% | 16.69% | 21.51% | 19.82% | 23.05% | 24.74% |
| Operating CF Growth % | 207.91% | 44.72% | 113.82% | 36.44% | -35.4% | 38.98% | 15.59% | -5.32% | 13.86% | -7.19% | 40.95% | 54.04% | -15.3% | 22.15% | 0.14% | 7.18% | - |
| Net Income | 557.67M | 537.87M | 102.98M | 122.87M | 190.17M | 149.19M | 102.28M | 155.21M | 156.47M | 107.35M | 104.34M | 112.78M | 92.48M | 68.61M | 73.83M | 60.78M | 54.46M |
| Depreciation & Amortization | 280.06M | 276.84M | 254.02M | 144.73M | 68.25M | 69.87M | 62.87M | 52.73M | 41.63M | 42.07M | 38.77M | 24.08M | 21.75M | 19.4M | 18.11M | 16.95M | 15.2M |
| Stock-Based Compensation | 49.16M | 49.78M | 54.19M | 52.74M | 32.81M | 30.59M | 27.07M | 26.09M | 21.9M | 14.69M | 11.38M | 9.64M | 7.11M | 5.18M | 4.63M | 3.29M | 4.03M |
| Deferred Taxes | 42.88M | 18.63M | -125.9M | -57.79M | -22.22M | -17.61M | -4.34M | 4.3M | 971K | 8.29M | -3.81M | 6.24M | -4.38M | -14.86M | -6.08M | 2.06M | 2M |
| Other Non-Cash Items | 93.39M | -46.95M | 332.89M | 97.54M | 14.72M | 61.5M | 48.49M | 7.09M | 10.54M | 17.66M | 17.72M | 12.69M | 9.96M | 8.9M | 6.6M | 10.63M | 6.27M |
| Working Capital Changes | -97.2M | -82.71M | -97.55M | -116.6M | -105.26M | -17.25M | -37.59M | -73.44M | -49.87M | -30.52M | 3.48M | -43.48M | -47.76M | 6.24M | -20.58M | -17.29M | -10.66M |
| Change in Receivables | -76.5M | -52.18M | -78.06M | -49.91M | -50.84M | -25.89M | 10.7M | -18.31M | -21.79M | -24.95M | -4.67M | -4.19M | -12.67M | -9.61M | -6.89M | -4.67M | -6.56M |
| Change in Inventory | -60.26M | -17.6M | -29.86M | -70.33M | -61.74M | -11.97M | -50.11M | -50.02M | -31.38M | -5.28M | -10.5M | -19.33M | -18M | -16.68M | -20.54M | -15.28M | -10.19M |
| Change in Payables | 15.8M | 8.49M | 17.66M | -14.22M | 14.42M | 3.68M | -6.35M | 773K | -3.01M | 9.84M | -23K | -9.18M | 7.33M | 1.94M | 4.43M | -2.05M | 2.72M |
| Cash from Investing | -579.07M | -355.01M | -176.05M | 302.97M | -110.36M | -375.94M | -117.32M | -140.28M | -193.03M | -111.28M | -99.55M | -150.55M | -100M | -227.15M | -30.71M | -29.99M | -12M |
| Capital Expenditures | -159.37M | -164.68M | -115.43M | -78.27M | -74.05M | -56.9M | -63.66M | -70.75M | -59.7M | -51.3M | -40.91M | -50.76M | -24.75M | -23.68M | -24.68M | -22.49M | -12.3M |
| CapEx % of Revenue | 5.08% | 5.6% | 4.58% | 4.99% | 7.24% | 5.94% | 8.07% | 9.01% | 8.37% | 8.07% | 7.25% | 9.32% | 5.22% | 5.45% | 6.39% | 6.78% | 4.27% |
| Acquisitions | -269.73M | 13.46M | -17.64M | -296.03M | -31.43M | -34.49M | -33.48M | -23.8M | -14.82M | -29.94M | -76.07M | -48.51M | -36.13M | -16.77M | -6.03M | -7.5M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 247.23M | -275.75M | 0 | 0 | 0 | 0 | 0 | 0 | 35M | 0 | -30M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -233.84M | -679.16M | -27.7M | -231.82M | -109.96M | 54.15M | -38.66M | 24.44M | 32.57M | 1.63M | 2.04M | 6.33M | 12.95M | 11.01M | 24.02M | -14.73M | 1.77M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5.25M | -340K |
| Equity Issued (Net) | -271.19M | -300.45M | -85.79M | -225.56M | -144.49M | 0 | -104.67M | 31.04M | 39.31M | 11.73M | 5.87M | 5.48M | 9.74M | 7.55M | 22.46M | -9.13M | 1.32M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -324M | -300.45M | -85.79M | -225.56M | -144.49M | 0 | -104.67M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -10.02M | 0 |
| Other Financing | 37.34M | -378.71M | 58.09M | -6.26M | 34.53M | 54.15M | 66.01M | -6.6M | -6.74M | -10.11M | -5.4M | 850K | 3.21M | 3.46M | 1.56M | -346K | 787K |
| Net Change in Cash | 115.92M | -258.28M | 317.15M | 316.83M | -42.6M | -46.33M | 43.67M | 55.98M | 20.93M | 51.86M | 72.49M | -22.11M | -7.7M | -122.44M | 69.73M | 30.97M | 61.05M |
| Free Cash Flow | 756.55M | 588.77M | 405.21M | 165.22M | 104.42M | 219.38M | 135.13M | 101.22M | 121.95M | 108.23M | 130.98M | 71.2M | 54.42M | 69.79M | 51.84M | 53.92M | 58.98M |
| FCF Margin % | 24.1% | 20.03% | 16.08% | 10.53% | 10.21% | 22.9% | 17.13% | 12.89% | 17.1% | 17.02% | 23.22% | 13.07% | 11.47% | 16.06% | 13.43% | 16.27% | 20.47% |
| FCF Growth % | 31.66% | 45.3% | 145.25% | 58.23% | -52.4% | 62.34% | 33.5% | -16.99% | 12.67% | -17.37% | 83.97% | 30.83% | -22.03% | 34.64% | -3.87% | -8.58% | - |
| FCF per Share | 5.56 | 4.29 | 2.94 | 1.44 | 1.02 | 2.12 | 1.34 | 0.99 | 1.20 | 1.11 | 1.36 | 0.74 | 0.57 | 0.74 | 0.56 | 0.71 | 0.78 |
| FCF Conversion (FCF/Net Income) | 1.36x | 1.40x | 5.06x | 1.98x | 0.94x | 1.85x | 1.94x | 1.11x | 1.16x | 1.49x | 1.65x | 1.08x | 0.86x | 1.36x | 1.04x | 1.26x | 1.31x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 79K | 6K | 3K | 35K | 9K | 32K | 96K | 63K | 167K | 463K |
| Taxes Paid | 69.62M | 98.92M | 158.51M | 100.59M | 77.82M | 45.03M | 25.44M | 34.14M | 30.55M | 59.11M | 50.09M | 57.1M | 51.1M | 38.72M | 44.88M | 35.72M | 28.83M |
Quick answers to the most common questions about buying GMED stock.
Globus Medical, Inc. (GMED) generated $753.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Globus Medical, Inc. (GMED) generated $588.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Globus Medical, Inc. (GMED) spent $164.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Globus Medical, Inc. (GMED) spent $300.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Integration execution risk
Metrics are mathematically derived from official filings.
Cash Conversion Strengthens Post-Merger
Operating cash flow exceeded net income in most quarters, with OCF/NI reaching 1.38 in Q2 2026, indicating high earnings quality, per recent financial statements.
The OCF/NI ratio has consistently been above 1.0 except for Q2 2025, when a one-time tax benefit inflated net income. This suggests that reported earnings are well-backed by cash generation, and the gap between net income and operating cash flow is minimal, reflecting low accruals. The strong conversion is particularly notable given the integration of NuVasive, implying that merger-related non-cash charges are not distorting cash flow.
Free Cash Flow Momentum Accelerates
FCF margin expanded from 3.9% in Q1 2024 to 22.4% in Q2 2026, with FCF of $176.6M, as reported in quarterly filings, signaling robust operational leverage.
The FCF trajectory shows a clear upward trend, with margins recovering from the trough during the NuVasive integration period. The latest quarter's FCF margin of 22.4% is above the peer average, indicating that the combined entity is generating substantial cash beyond capital needs. This improvement aligns with the income statement's margin expansion, suggesting that the integration synergies are translating into cash generation.
Capital Intensity Remains Moderate
CapEx as a percentage of revenue averaged 5.0% over the last four quarters, per reported data, indicating a capital-light model relative to revenue growth.
CapEx has remained stable around 4-6% of revenue, which is modest for a medical device manufacturer. This suggests that the company's growth is not heavily dependent on heavy capital investment, and the majority of CapEx is likely for maintenance and field inventory rather than expansion. The low capital intensity supports high FCF conversion and provides flexibility for capital deployment.
Working Capital Swings Reflect Integration
Working capital changes were negative in Q2 2026 at -$55.1M, per financial statements, indicating cash outflows from inventory build-up or receivables, likely tied to integration.
The working capital changes have been volatile, with significant negative swings in several quarters, including Q2 2024 and Q2 2025. This pattern suggests that the company is investing in field inventory and receivables as part of the NuVasive integration, which may temporarily pressure cash flow. However, the recent positive OCF despite these outflows indicates that the underlying business is generating sufficient cash to absorb these working capital needs.
Capital Deployment Focused on Buybacks
Share repurchases totaled $136.1M in Q2 2026, while dividends remained zero, as per cash flow data, indicating a preference for returning capital via buybacks.
The company has not paid dividends but has been active in buybacks, with notable repurchases in Q2 2026 and Q1 2025. This suggests management views the stock as undervalued and is using excess cash to support shareholder returns. The lack of dividends may be a deliberate choice to retain flexibility for M&A, given the recent acquisition spree, but the buyback activity indicates confidence in cash flow sustainability.
Cumulative Cash Generation Outpaces Earnings
Over the last ten quarters, cumulative operating cash flow of $1.69B exceeded cumulative net income of $0.92B, per reported figures, highlighting strong cash conversion.
The cumulative gap between operating cash flow and net income is substantial, with OCF nearly double net income. This divergence is largely due to non-cash charges like D&A and SBC, which are added back in OCF. It suggests that the company's earnings are conservative and that cash generation is robust, providing a cushion for debt repayment or further investments. Investors should monitor whether this gap narrows as integration costs subside.
What the Cash Flow Statement Obscures
Stock-based compensation of $13.4M in Q2 2026 and significant acquisition-related cash flows may understate true cash earnings, per reported cash flow data.
While operating cash flow appears robust, the inclusion of SBC as a non-cash add-back may overstate the sustainability of cash generation, as it represents a real economic cost to shareholders. Additionally, the large acquisition-related cash flows, such as the $247.3M outflow in Q4 2025, could distort period-to-period comparisons. Investors should adjust for these items to assess the underlying cash-generating ability of the core business, especially as integration-related charges subside.