Perfect.
All right. Good morning, everyone. My name is Ana Runcie. I'm one of the associates on the med tech team here at Piper Sandler, and I'm very excited to introduce Rob Claypoole here, CEO of Bioventus, who's going to walk you through a brief presentation of the business. So I don't want to take up any more of your time. I will turn it over to you, Rob.
Thank you. Thanks, Ana. And good morning, everybody. Thanks for joining us today. Appreciate it. At Bioventus, we're on a mission to help patients recover and live life to the fullest. I'm in my second year, actually completing my second year as CEO. And over the next few minutes, I may have to shout over the noise there. I hope to convey to you why I'm even more excited and confident today than when I joined the company about our ability to drive significant and consistent value creation. But first, a slide that you're all familiar with. During my remarks today, I'll be making some forward-looking comments and also discussing some Non-GAAP metrics. For more information on those, as well as risk factors associated with Bioventus, please take a look at our latest 10-K, 10-Q that are filed with the SEC and also available on our website. All right.
With that out of the way, let me give you a brief overview of Bioventus. We have three businesses: Pain Treatments, Surgical Solutions, and Restorative Therapies. And across all of these businesses, we're either a category or a growth leader. We generate over $550 million in annual revenue. And combined, across our product categories, we have a $6 billion market opportunity. Now, one of the many very attractive aspects of Bioventus, compared to many other small-cap companies, is that we have multiple paths to value creation. First, we have a very broad portfolio, and we participate in large and growing markets. And in those markets, we've demonstrated our ability, with our world-class portfolio, to grow above the market for the past eight quarters. We also have, importantly, a very healthy, peer-leading gross margin in the mid-70s.
When you combine that above-market growth rate with that peer-leading gross margin and cost efficiencies, it creates an excellent platform for us to continue to improve our margins while increasing our profitability and cash flow. Looking forward, we feel like we're very well positioned to drive and create substantial shareholder value as we march to becoming a $1 billion high-growth, high-profit, high-cash flow company. Over the last few years, we've made meaningful progress with our financial performance. First, we've accelerated our revenue. This year, even with unfavorable first half of the year comparables, we'll still grow nearly 2X the weighted average market growth rate for the spaces that we play in. As mentioned, when we combine that above-market growth rate with our peer-leading gross margin, what it does is create significant margin improvement for us.
You can see, over the past few years, we've had significant EBITDA margin improvement. Our guidance for this year equates to just over 20%, which is 100 basis points improvement versus the prior year. As it relates to our cash flow and our leverage, this is an area where we were challenged in the past, but we've also made significant progress in this area. And as you can see from the lower half of this slide here, we expect 2025 to represent a significant step change with respect to both our cash flow and our net leverage. So overall, again, we're very excited about our potential going forward. And it starts with our growth. And so let me give you a different perspective on how we look at our growth.
We look at it through three buckets: our core growth drivers, our expansion growth drivers, and our emerging growth drivers. And I'll start with our core, which is comprised of HA, BGS, and fracture care. Now, these make up a significant portion of our overall revenue today. First up, hyaluronic acid or HA therapy for treatment of knee osteoarthritis pain. This is led by our single-injection therapy, Durolane. And with HA, we believe we have an unbeatable combination. First, we have strong clinical differentiation. Naturally, when a patient feels and experiences great outcomes, their physician wants to use that therapy with other patients. Also, importantly, we have the largest dedicated sales force in this space. So when our HA team wakes up each day, they're focused on selling HA, not five, six, seven other products that are in their bag.
We also have a very strong and stable private payer coverage. And what that does is it gives us a strong foundation and broad access to the market. So we're very excited about continuing to grow this business going forward. Next, bone graft substitutes or BGS. So here, we're focused mostly on spinal surgery. And we have a very strong clinical and health economic value proposition that's driving high single-digit growth in this space. So our product, OsteoAmp product line, it provides similar outcomes to the market leader in this space across a wide variety of procedures, but with potential material savings to the hospital. So again, we're very excited about continuing to grow this business. And then last in the core is our fracture care business. This is a business that had been deprioritized in the past by Bioventus and was in decline for about five years.
We've restored that business to growth. And in fact, over the last couple of quarters, we've seen double-digit growth with this business. And moving forward, we expect to see at least mid-single-digit growth for this business. So overall, we have a very strong core platform of growth drivers that are going above the market. And when you take that combination of good growth and strong profitability for that core, it gives us the opportunity to fund both our expansion and our emerging growth drivers. So let's go to the expansion growth drivers. Here, we consider Ultrasonics and International to be our expansion growth drivers. They make up about a quarter of our revenue today, and they have significant growth potential moving forward. Our world-class ultrasonics technology, we think it can change the standard of care for bone cutting in spine. We're mostly focused on spinal surgery at this point.
And the reason for that is because our technology gives surgeons exceptional precision and control. It also reduces blood loss for patients, and it saves substantial time from the procedure, which leads to greater operating room efficiency. And also, surgeons that I've been with, they say it's so much easier and gentler on their hands that not only is it nicer to use, but it can also extend their careers because of the ergonomics associated with it. So one of the things that I hear often is this word "revolutionary." Surgeons have told me directly, "This is revolutionary technology," and we agree. And we're going to invest in and grow this business aggressively over the coming years to create a major growth driver for Bioventus. And then our international segment. Historically, Bioventus has been a U.S.-focused company.
So we haven't had the focus and the prioritization to pursue the large untapped opportunity for us internationally. Well, that's changed now. We have a new leader in place. We have a plan in place. And we're lining up the investments to go after the international segment aggressively to also turn it into a significant growth driver for Bioventus. And that's why you see on the right-hand side that we expect double-digit growth for that expansion category. And importantly, this is growth with that expansion category that we're layering on top of our healthy core. Now, if we move on to our emerging businesses, this represents our newest products with PNS and PRP. And again, we expect very strong double-digit growth with this space. This is insignificant or immaterial, I should say, to Bioventus today from a size standpoint.
But we believe that our emerging growth drivers will be a major contributor to our growth going forward. Let's start with PNS. So the PNS segment, maybe familiar with it. It's just about $200 million today in the U.S. It's expected to exceed $500 million by 2029. There's not a lot of spaces in med tech that are growing at that rate. We are determined to have the best and the most complete portfolio in this space. We have the R&D capabilities to do just that. It starts with StimTrial, which recently received FDA 510(k) clearance. StimTrial allows a doctor to assess a patient's response to peripheral nerve stimulation. This is important because these are patients that are suffering from debilitating chronic peripheral pain.
And so the physician wants to make sure before they try another thing with this patient that it's going to work. And also, some insurance, some payers require that assessment before a permanent implant. Our STIM trial is complemented by our new and innovative Talisman PNS system. Now, Talisman is the smallest wearable on the market. And excuse me, it combines our patented electric field conduction or EFC with an integrated pulse generator to potentially reach deeper and larger nerves. And this is really important from a physician perspective because it allows for easier placement by the physician and also potentially broadens the addressable nerves. So we're very excited about going after this space aggressively. We have a lot of work ahead of us, and we intend to turn it into a major long-term growth driver for Bioventus.
And then with PRP, another very exciting category, about $400 million today in the U.S, growing in the high single digits. Earlier this year, we signed an agreement with Apex Biologics to be the exclusive distributor of their world-class Excel PRP system. What's special about Excel is that it gives physicians the ability to customize the treatments for different patient applications while also saving significant procedural time. This combination makes us believe that we can continue to accelerate this business significantly for years to come. Both of these, PNS and PRP, are only in a pilot launch today and again expected to ramp up significantly in 2026 and beyond. For both of those, when we take just the emerging growth category of PNS and PRP, we expect they'll generate at least 200 basis points of growth for Bioventus in next year alone.
And again, this is growth that we're layering on top of our expansion and our core. So you can see we've assembled a broad portfolio of growth drivers, and it gives us confidence that we can grow our business above the market next year and beyond. Now, we all know that driving healthy growth is one way to create value creation, but it's not the only way. Also, with a strong gross margin, we have the potential to increase our EBITDA. And so here we have, again, above-market growth, our peer-leading gross margin. When you combine the two, it allows us to not only expand our margin, but what it really means is that we're in control of our own P&L. We can consistently invest in our future growth drivers while still maintaining and expanding our margins.
And that's a unique place to be, especially when you combine it with the additional process enhancements and cost efficiencies that we can go after to fund our growth going forward. And then last, it's a part of our story that may be less known and understood, but we think is equally exciting in terms of driving value creation. And that's our cash flow. So over the past few years, we've significantly improved our cash flow for the company. In fact, if you look at just the last two quarters alone, we've generated over $56 million in cash flow. And the mechanics of our business set us up for a significant cash flow generation going forward. This year, we expect our cash flow to nearly double. And all of this is driven by four main factors. First, our higher EBITDA, which we've talked about this in detail now.
It's a combination of that above-market growth plus our very healthy peer-leading gross margin. And next, our lower interest rate or interest expense. And this is because we continue to significantly lower our debt. And we have a better interest rate with our new term loan, reducing our interest expense significantly. And then we've had also a very significant decrease in our one-time cash costs. And all of this is complemented by more efficient working capital. So the combination of those are what are driving the significant improvement in our cash flow, again, nearly doubling it this year. And what it also means is that by the end of this year, our leverage, we expect it to drop below 2.5x, which is a significant change from the past.
But perhaps most important from all of this is that what this gives us is greater optionality for our capital deployment going forward. And again, in the short term, what we're focused on is just continuing to pay down the debt. But it's great to have that optionality from a capital deployment standpoint going forward with our very strong, healthy, and continuous cash flow. All right. So as I wrap up our brief presentation here, let me emphasize that while we've made significant progress and we're really excited about the progress that we've made, we're encouraged by it, but it's just the beginning of what we can achieve at Bioventus. We believe going forward that from that broad portfolio that we've assembled, that will continue to drive very healthy above-market growth.
And then, with our peer-leading gross margin, that we can continue to expand our margins while investing consistently and continuously in our future growth drivers. And those are, of course, complemented by that significant cash flow increase that we're seeing, which provides us with exceptional optionality moving forward. So, we're very focused and excited to build on our momentum as we march our way towards becoming, again, a $1 billion high-growth, high-profit, high-cash flow company that's focused on helping patients recover and live life to the fullest. Thank you very much for joining us.