Revenue increased 16.4% to $236.2 million, or 16.1% on a constant currency basis;

GAAP operating profit margin of 25.4%; Non-GAAP operating profit margin up 60 basis points from prior year to 15.9%;

GAAP diluted earnings per share of $0.57; Non-GAAP diluted earnings per share up 28% from prior year to $0.40; and

Acquired Biotronic NeuroNetwork to support spine service line partnership offerings.

Revenue of approximately $962.0 million, which includes a $1 million benefit from currency or approximately 18.6% growth compared to revenue of $811.1 million for 2015; versus a prior expectation of $928.0 million for 2016;

Non-GAAP diluted earnings per share of approximately $1.64, an increase of approximately 25.0% compared to non-GAAP diluted earnings per share of $1.31 for 2015; versus a prior expectation of $1.48 for 2016;

Non-GAAP operating profit margin of approximately 16.0%, an increase of 60 basis points compared to 15.4% for 2015; versus a prior expectation of approximately 15.8% for 2016;

Adjusted EBITDA margin of approximately 25.4%, an increase of approximately 20 basis points, in line with the prior expectation, compared to 25.2% for 2015; and

Non-GAAP effective tax expense rate of approximately 37%; versus a prior expectation of approximately 41% for 2016.

GAAP net income per share

Impact of change from basic to diluted share count

GAAP net income per share, adjusted to diluted Non-GAAP share count

Litigation liability gain

Business transition costs ⁴

Non-cash interest expense on convertible notes

Non-cash purchase accounting adjustments on acquisitions ⁵

Loss on repurchase of convertible notes

Amortization of intangible assets

In-process research & development

Tax effect of adjustments ⁶

Non-GAAP earnings per share

GAAP Weighted shares outstanding - basic

Non-GAAP Weighted shares outstanding - diluted

Prior guidance provided April 26, 2016. Current guidance reflects guidance provided July 26, 2016, as updated for the anticipated impact of the Biotronic Neuronetwork acquisition, the adoption of ASU 2016-09 Stock Compensation, as well as expected changes in currency.

Effective tax expense rate of ~63% applied to GAAP earnings and ~41% applied to Non-GAAP earnings.

Effective tax expense rate of ~41% applied to GAAP earnings and ~37% applied to Non-GAAP earnings.

Costs related to acquisition, integration and business transition activities which include severance, relocation, consulting, leasehold exit costs, third party merger and acquisitions costs and other costs directly associated with such activities.

Represents costs associated with non-cash purchase accounting adjustments, such as acquired inventory fair market value adjustments, which are amortized over the period in which underlying products are sold.

The impact on results from taxes include tax effecting the adjustments above at the statutory rate as well as taking into account discrete items and including those discrete items in the annual effective tax rate calculation. The Company also includes those adjustments that would have benefited the tax rate in lieu of the above adjustments as part of the Company’s tax filings. The impact of the changes to the tax rate results in an annual estimated rate of ~37% on a non-GAAP basis. The Company adopted ASU 2016-09 Stock Compensation in Q2 2016 which was effective as of January 1, 2016 with retrospective adjustment. The result of the retrospective adjustment resulted in a change in the Q1 2016 quarterly effective tax rate on a non-GAAP basis from 41% to 36%.

Non-GAAP Gross Margin % [A]

Non-cash purchase accounting adjustments on acquisitions ²

GAAP Gross Margin [B]

GAAP & Non-GAAP Sales, Marketing & Administrative Expense [C]

Non-GAAP Research & Development Expense [D]

In-process research & development

GAAP Research & Development Expense [E]

Litigation liability [F]

Amortization of intangible assets [G]

Business transition costs [H] ³

Non-GAAP Operating Margin % [A - C - D]

GAAP Operating Margin % [B - C - E - F - G - H]

Prior guidance provided April 26, 2016. Current guidance reflects guidance provided July 26, 2016, as updated for the anticipated impact of the Biotronic Neuronetwork acquisition, the adoption of ASU 2016-09 Stock Compensation, as well as expected changes in currency.

Represents costs associated with non-cash purchase accounting adjustments, such as acquired inventory fair market value adjustments, which are amortized over the period in which underlying products are sold.

Costs related to acquisition, integration and business transition activities which include severance, relocation, consulting, leasehold exit costs, third party merger and acquisitions costs and other costs directly associated with such activities.

Net Income / (Loss)

Interest (income) / expense, net

Provision for income taxes

Depreciation and amortization ²

EBITDA

Non-cash stock based compensation

Business transition costs ²

Non-cash purchase accounting adjustments on acquisitions ³

In-process research & development

Litigation liability gain

Adjusted EBITDA

Prior guidance provided April 26, 2016. Current guidance reflects guidance provided July 26, 2016, as updated for the anticipated impact of the Biotronic Neuronetwork acquisition, the adoption of ASU 2016-09 Stock Compensation, as well as expected changes in currency.

Costs related to acquisition, integration and business transition activities which include severance, relocation, consulting, leasehold exit costs, third party merger and acquisitions costs and other costs directly associated with such activities.

Represents costs associated with non-cash purchase accounting adjustments, such as acquired inventory fair market value adjustments, which are amortized over the period in which underlying products are sold.

GAAP net income

Litigation liability gain

Business transition costs ¹

Non-cash interest expense on convertible notes

Non-cash purchase accounting adjustments on acquisitions ²

Amortization of intangible assets

Tax effect of adjustments ³

Adjustments to GAAP net income

Non-GAAP earnings

GAAP weighted shares outstanding - diluted

Non-GAAP weighted shares outstanding - diluted

Costs related to acquisition, integration and business transition activities which include severance, relocation, consulting, leasehold exit costs, third party merger and acquisitions costs and other costs directly associated with such activities.

Represents costs associated with non-cash purchase accounting adjustments, such as acquired inventory fair market value adjustments, which are amortized over the period in which underlying products are sold.

The impact on results from taxes include tax effecting the adjustments above at the statutory rate as well as taking into account discrete items and including those discrete items in the annual effective tax rate calculation. The Company also includes those adjustments that would have benefited the tax rate in lieu of the above adjustments as part of the Company’s tax filings. The impact of the changes to the tax rate results in an annual estimated rate of 36.5% on a non-GAAP basis. The result of these adjustments is a change in the quarterly effective tax rate from 40% to 37%.

GAAP net income

Litigation liability gain

Business transition costs ¹

Non-cash interest expense on convertible notes

Non-cash purchase accounting adjustments on acquisitions ²

Loss on repurchases of convertible notes

Amortization of intangible assets

Tax effect of adjustments ³

Adjustments to GAAP net income

Non-GAAP earnings

GAAP weighted shares outstanding - diluted

Non-GAAP weighted shares outstanding - diluted

Costs related to acquisition, integration and business transition activities which include severance, relocation, consulting, leasehold exit costs, third party merger and acquisitions costs and other costs directly associated with such activities.

Represents costs associated with non-cash purchase accounting adjustments, such as acquired inventory fair market value adjustments, which are amortized over the period in which underlying products are sold.

The impact on results from taxes include tax effecting the adjustments above at the statutory rate as well as taking into account discrete items and including those discrete items in the annual effective tax rate calculation. The Company also includes those adjustments that would have benefited the tax rate in lieu of the above adjustments as part of the Company’s tax filings. The impact of the changes to the tax rate results in an annual estimated rate of 36.5% on a non-GAAP basis. The result of these adjustments is a change in the annual effective tax rate from 29% to 36.5%. The Company adopted ASU 2016-09 Stock Compensation in Q2 2016 which was effective as of January 1, 2016 with retrospective adjustment. The result of the retrospective adjustment resulted in a change in the Q1 2016 quarterly effective tax rate on a non-GAAP basis from 41% to 36%.

GAAP net income

Interest (income) / expense, net ¹

Provision for income taxes

Depreciation and amortization

EBITDA

Litigation liability gain

Business transition costs ²

Non-cash purchase accounting related charges ³

Non-cash stock based compensation

Adjusted EBITDA

As a percentage of revenue

Included in Interest (income) / expense, net for the six months ended June 30, 2016 is loss on extinguishment of debt for $17.4 million.

Costs related to acquisition, integration and business transition activities which include severance, relocation, consulting, leasehold exit costs, third party merger and acquisitions costs and other costs directly associated with such activities.

Represents costs associated with non-cash purchase accounting adjustments, such as acquired inventory fair market value adjustments, which are amortized over the period in which underlying products are sold.

Revenue

Cost of goods sold (excluding below amortization of intangible assets)

Gross profit

Operating expenses:

Sales, marketing and administrative

Research and development

Amortization of intangible assets

Litigation liability (gain) loss

Business transition costs

Total operating expenses

Interest and other expense, net:

Interest income

Interest expense

Loss on repurchases of convertible notes

Other (loss) income, net

Total interest and other expense, net

Income before income taxes

Income tax expense

Consolidated net income

Add back net loss attributable to non-controlling interests

Net income attributable to NuVasive, Inc.

Net income per share attributable to NuVasive, Inc.:

Basic

Diluted

Weighted average shares outstanding:

Basic

Diluted

Current assets:

Cash and cash equivalents

Short-term marketable securities

Accounts receivable, net of allowances of $6,066 and $5,320, respectively

Inventory, net

Prepaid income taxes

Prepaid expenses and other current assets

Total current assets

Property and equipment, net

Long-term marketable securities

Intangible assets, net

Goodwill

Deferred tax assets

Restricted cash and investments

Other assets

Total assets

Current liabilities:

Accounts payable and accrued liabilities

Accrued payroll and related expenses

Litigation liabilities

Income tax liabilities

Short term senior convertible notes

Total current liabilities

Long term senior convertible notes

Long-term acquisition-related liabilities

Deferred and income tax liabilities, non-current

Non-current litigation liabilities

Other long-term liabilities

Commitments and contingencies

Stockholders’ equity:

Preferred stock, $0.001 par value; 5,000,000 shares authorized, none outstanding

Common stock, $0.001 par value; 120,000,000 shares authorized at June 30, 2016 and December 31, 2015, 54,868,373 and 52,616,471 issued and outstanding at June 30, 2016 and December 31, 2015, respectively

Additional paid-in capital

Accumulated other comprehensive loss

Accumulated deficit

Treasury stock at cost; 4,681,346 shares and 3,316,794 shares at June 30, 2016 and December 31, 2015, respectively

Total NuVasive, Inc. stockholders’ equity

Non-controlling interests

Total equity

Total liabilities and equity

Operating activities:

Consolidated net income

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

Loss on repurchases of convertible notes

Amortization of non-cash interest

Stock-based compensation

Reserves on current assets

Other non-cash adjustments

Deferred income taxes

Changes in operating assets and liabilities, net of effects from acquisitions:

Accounts receivable

Inventory

Prepaid expenses and other current assets

Accounts payable and accrued liabilities

Accrued royalties

Accrued payroll and related expenses

Litigation liability

Income taxes

Net cash provided by operating activities

Investing activities:

Acquisition of Ellipse Technologies, net of cash acquired

Other acquisitions and investments

Purchases of intangible assets

Purchases of property and equipment

Purchases of marketable securities

Proceeds from sales of marketable securities

Sales of restricted investments

Purchases of restricted investments

Net cash used in investing activities

Financing activities:

Incremental tax benefits related to stock-based compensation awards

Proceeds from the issuance of common stock

Payment of contingent consideration

Purchase of treasury stock

Proceeds from issuance of convertible debt, net of issuance costs

Proceeds from sale of warrants

Purchase of convertible note hedge

Repurchases of convertible notes

Proceeds from revolving line of credit

Repayments on revolving line of credit

Other financing activities

Net cash provided by (used in) financing activities

Effect of exchange rate changes on cash

Increase (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period