Orthofix Reports First Quarter 2026 Results Highlighting Steady Execution Following Spine Commercial Channel Actions; Reaffirms Full-Year 2026 Financial Guidance

Orthofix Medical Inc. (NASDAQ:OFIX), a leading global medical technology company, today reported its financial results for the first quarter ended March 31, 2026, reflecting steady execution following recent spine commercial channel actions. Based on first-quarter performance, the Company reaffirmed its full-year 2026 financial guidance. All pro forma measures contained within this release exclude the impact of the Company’s decision to discontinue its M6™ product lines.

Highlights

  • First quarter 2026 reported net sales of $196.7 million, including sales from M6 artificial cervical and lumbar discs. Non-GAAP pro forma net sales of $196.4 million, excluding sales from M6 discs, increased 3% year over year on a constant currency basis, reflecting steady execution during the final stages of distributor transitions, with further improvement expected as productivity increases.

  • Global Spine Fixation1 delivered reported net sales growth of 6% and constant currency growth of 6% compared to the prior year period, including U.S. Spine Fixation growth of 4%, driven by enhanced commercial focus, deeper procedural penetration, and continuing benefits from distributor transition initiatives.

  • Therapeutic Solutions (formerly Bone Growth Therapies) achieved year-over-year net sales growth of 5%, supported by continued demand across the portfolio and effective commercial execution.

  • Global Limb Reconstruction reported net sales growth of 10% and constant currency growth of 3% compared to the prior year period, reflecting continued demand for core fixation and reconstruction systems.

  • First quarter 2026 reported net loss of $(20.9) million and non-GAAP pro forma adjusted EBITDA of $9.7 million, reflecting impacts from geography mix and commercial transitions.

“Our first-quarter results reflect steady execution as we complete key spine commercial channel actions and sharpen our strategic focus,” said Massimo Calafiore, President and Chief Executive Officer. “While the quarter continued to absorb the impact of these transitions, most notably in biologics, we saw improved commercial focus and operating discipline as the quarter progressed.”

Mr. Calafiore continued, “Importantly, distributor transitions are now largely behind us, providing greater visibility for the remainder of the year. As we move through 2026, our priorities are clear: driving more consistent commercial execution, advancing targeted innovation across our portfolio, and expanding margins through disciplined operational management. With recent spine leadership changes, a renewed focus on advancing our biologics portfolio, and planned product launches later this year, we believe Orthofix is positioned to deliver more consistent growth, expand margins, and generate strong free cash flow to support long-term shareholder value.”

1

Spine Fixation is comprised of the Company’s Spinal Implants product category, excluding motion preservation product offerings.

Financial Results Overview

First Quarter 2026 Net Sales and Financial Results

The following table provides net sales by major product category and by reporting segment on a pro forma basis, removing the effects of the Company’s discontinued M6 product lines:

 

Three Months Ended March 31,

(Unaudited, U.S. Dollars, in millions)

2026

2025

Change

Constant

Currency

Change

Therapeutic Solutions

$

57.8

$

55.1

4.9

%

4.9

%

Spinal Implants, Biologics and Enabling Technologies*

 

105.8

 

104.3

1.4

%

1.4

%

Global Spine*

 

163.6

 

159.4

2.6

%

2.6

%

Global Limb Reconstruction

 

32.8

 

29.8

10.2

%

3.0

%

Pro forma net sales*

 

196.4

 

189.2

3.8

%

2.7

%

Impact from discontinuation of M6 product lines

 

0.3

 

4.4

(94.2

%)

(94.5

%)

Reported net sales

$

196.7

$

193.6

1.6

%

0.4

%

* Results above for each of Spinal Implants, Biologics, and Enabling Technologies; Global Spine; and pro forma net sales exclude the impact from discontinuation of the M6 product lines. Since pro forma net sales represent a non-GAAP measure, see the reconciliation above of the Company’s pro forma net sales to its reported figures under U.S. GAAP. The Company’s reported figures under U.S. GAAP represent each of the pro forma line items discussed above plus the impact from discontinuation of the M6 product lines.

For the first quarter of 2026, net sales were $196.7 million, including sales from M6 artificial cervical and lumbar discs, and non-GAAP pro forma net sales were $196.4 million, excluding sales from M6 discs, representing an increase of 1.6% on a reported basis and 2.7% on a non-GAAP pro forma constant currency basis compared to first quarter 2025.

For the first quarter of 2026, GAAP gross margins were 70.9% and were 70.7% on a non-GAAP pro forma adjusted basis.

For the first quarter of 2026, reported net loss was $(20.9) million, or $(0.52) per share compared to reported net loss of $(53.1) million, or $(1.35) per share in the prior year period. Non-GAAP pro forma adjusted EBITDA was $9.7 million, or 4.9% of pro forma net sales, in the first quarter of 2026, compared to non-GAAP pro forma adjusted EBITDA of $11.4 million, or 6.0% of pro forma net sales, in the first quarter of 2025.

Liquidity

Cash, cash equivalents, and restricted cash on March 31, 2026, totaled $120.9 million compared to $85.1 million on December 31, 2025. The cash increase was a result of financing activities during the quarter.

Business Outlook

Based on first-quarter performance and current visibility, the Company is reaffirming its full-year 2026 financial guidance. This outlook reflects expectations for improved execution through the remainder of the year, including contributions from recent and planned product launches, balanced against ongoing macro and operational considerations.

  • Net sales expected to range between $850 million to $860 million. The Company’s expected net sales represent implied year-over-year pro forma constant currency growth of approximately 5.5% at the midpoint of the range. This guidance range is based on current foreign currency exchange rates and does not take into account any additional potential exchange rate changes that may occur this year.

  • Non-GAAP adjusted EBITDA expected to be $95 million to $98 million. This represents 70 basis points of non-GAAP adjusted EBITDA margin expansion at the midpoint of the range compared to 2025.

  • Free cash flow expected to be positive for full-year 2026, excluding the impact of any potential legal settlements, supported by margin improvement initiatives.

An investor presentation for the Company’s first quarter 2026 financial results is available in the “Events & Presentations” section of the Orthofix Investor Relations Website at ir.orthofix.com.

Conference Call

Orthofix will host a conference call today at 8:30 AM Eastern time to discuss the Company’s financial results for the first quarter ended March 31, 2026. Interested parties may access the conference call by dialing (888) 596-4144 in the U.S., and (646) 968-2525 in all other locations, and referencing the conference ID 7578740. A webcast and replay of the conference call may be accessed in the “Events & Presentations” section of the Orthofix Investor Relations Website at ir.orthofix.com.

Internet Posting of Information

Orthofix regularly shares important updates in the “Investors” section of its website at www.orthofix.com. The Company encourages investors and potential investors to consult the Orthofix website regularly for important information about Orthofix.

About Orthofix

Orthofix is a global medical technology company dedicated to advancing healing and restoring mobility for patients with complex musculoskeletal conditions. Headquartered in Lewisville, Texas, the Company delivers technology-enabled solutions that support improved clinical outcomes and more efficient care across the continuum. Orthofix offers a focused and differentiated portfolio spanning spinal implants, therapeutic solutions, limb reconstruction systems, biologics and enabling technologies, including the 7D FLASH™ Navigation System. Learn more at Orthofix.com and follow Orthofix on LinkedIn.

Forward-Looking Statements

This communication contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, relating to our business and financial outlook, which are based on our current beliefs, assumptions, intentions, plans, expectations, estimates, forecasts and projections. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “projects,” “intends,” “predicts,” “potential,” “positioned,” “deliver,” or “continue” or other comparable terminology. Forward-looking statements in this communication include the Company’s expectations regarding net sales, adjusted EBITDA, and free cash flow for the year ended December 31, 2026. Forward-looking statements are not guarantees of our future performance, are based on our current expectations and assumptions regarding our business, the economy and other future conditions, and are subject to risks, uncertainties and changes in circumstances that are difficult to predict, including the risks described in Part I, Item 1A under the heading Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025, and in Part II, Item 1A under the heading Risk Factors in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026. Factors that could cause future results to differ from those expressed by forward-looking statements include, but are not limited to, (i) our ability to maintain operations to support our customers and patients in the near-term and to capitalize on future growth opportunities, (ii) risks associated with acceptance of surgical products and procedures by surgeons and hospitals, (iii) development and acceptance of new products or product enhancements, (iv) clinical and statistical verification of the benefits achieved via the use of our products, (v) our ability to adequately manage inventory, (vi) our ability to successfully optimize our commercial channels, (vii) our success in defending legal proceedings brought against us, and (viii) the other risks and uncertainties more fully described in our periodic filings with the Securities and Exchange Commission (the “SEC”). As a result of these various risks, our actual outcomes and results may differ materially from those expressed in these forward-looking statements.

Further, any forward-looking statement speaks only as of the date hereof, unless it is specifically otherwise stated to be made as of a different date. The Company undertakes no obligation to update, and expressly disclaims any duty to update, its forward-looking statements, whether as a result of circumstances or events that arise after the date hereof, new information, or otherwise, except as required by law.

The Company is unable to provide expectations of GAAP net income (loss), the closest comparable GAAP measures to adjusted EBITDA (which is a non-GAAP measure), on a forward-looking basis because the Company is unable to predict, without unreasonable efforts, the ultimate outcome of matters (including acquisition-related expenses, accounting fair value adjustments, and other such items) that will determine the quantitative amount of the items excluded in calculating adjusted EBITDA, which items are further described in the reconciliation tables and related descriptions below. These items are uncertain, depend on various factors, and could be material to the Company’s results computed in accordance with GAAP.

ORTHOFIX MEDICAL INC.

Condensed Consolidated Statements of Operations

 

 

Three Months Ended

 

March 31,

(Unaudited, U.S. Dollars, in thousands, except share and per share data)

2026

2025

Net sales

$

196,708

 

$

193,646

 

Cost of sales

 

57,162

 

 

72,027

 

Gross profit

 

139,546

 

 

121,619

 

Sales, general, and administrative

 

134,911

 

 

132,981

 

Research and development

 

15,320

 

 

19,766

 

Acquisition-related amortization, impairment, and remeasurement

 

3,751

 

 

17,745

 

Operating loss

 

(14,436

)

 

(48,873

)

Interest expense, net

 

(5,664

)

 

(4,506

)

Other income (expense), net

 

(734

)

 

1,246

 

Loss before income taxes

 

(20,834

)

 

(52,133

)

Income tax expense

 

(74

)

 

(961

)

Net loss

$

(20,908

)

$

(53,094

)

 

Net loss per common share:

Basic

$

(0.52

)

$

(1.35

)

Diluted

 

(0.52

)

 

(1.35

)

Weighted average number of common shares (in millions):

Basic

 

40.4

 

 

39.2

 

Diluted

 

40.4

 

 

39.2

 

 

ORTHOFIX MEDICAL INC.

Condensed Consolidated Balance Sheets

 

(U.S. Dollars, in thousands, except par value data)

March 31,

2026

December 31,

2025

 

(Unaudited)

Assets

Current assets

Cash and cash equivalents

$

120,278

 

$

82,025

 

Restricted Cash

 

592

 

 

3,090

 

Accounts receivable, net of allowances of $8,990 and $8,308, respectively

 

137,775

 

 

135,746

 

Inventories

 

177,818

 

 

172,319

 

Prepaid expenses and other current assets

 

25,057

 

 

23,667

 

Total current assets

 

461,520

 

 

416,847

 

Property, plant, and equipment, net

 

125,327

 

 

129,399

 

Intangible assets, net

 

69,336

 

 

72,765

 

Goodwill

 

194,934

 

 

194,934

 

Other long-term assets

 

35,484

 

 

36,702

 

Total assets

$

886,601

 

$

850,647

 

Liabilities and shareholders’ equity

Current liabilities

Accounts payable

$

54,686

 

$

58,392

 

Current portion of finance lease liability

 

115

 

 

837

 

Other current liabilities

 

106,232

 

 

111,253

 

Total current liabilities

 

161,033

 

 

170,482

 

Long-term debt

 

221,335

 

 

157,391

 

Long-term portion of finance lease liability

 

12,937

 

 

17,060

 

Other long-term liabilities

 

56,110

 

 

55,677

 

Total liabilities

 

451,415

 

 

400,610

 

Contingencies

Shareholders’ equity

Common shares $0.10 par value; 100,000 shares authorized;

40,382 and 39,834 issued and outstanding as of March 31,

2026, and December 31, 2025, respectively

 

4,038

 

 

3,983

 

Additional paid-in capital

 

820,247

 

 

813,769

 

Accumulated deficit

 

(389,241

)

 

(368,333

)

Accumulated other comprehensive income

 

142

 

 

618

 

Total shareholders’ equity

 

435,186

 

 

450,037

 

Total liabilities and shareholders’ equity

$

886,601

 

$

850,647

 

ORTHOFIX MEDICAL INC.

Non-GAAP Financial Measures

The following tables present reconciliations of various financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”), to various non-GAAP financial measures that exclude (or in the case of free cash flow, include) items specified in the tables. The GAAP measures shown in the tables below represent the most comparable GAAP measure to the applicable non-GAAP measure(s) shown in the table. For further information regarding the nature of these exclusions, why the Company believes that these non-GAAP financial measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the Company’s current report on Form 8-K regarding this press release filed today with the SEC available on the SEC’s website at www.sec.gov and on the “Investors” page of the Company’s website at www.orthofix.com.

The Company’s non-GAAP financial measures for the three months ended March 31, 2026, and 2025, have been adjusted to eliminate the financial effects of the Company’s decision to discontinue its M6 product lines.

Adjusted Gross Profit and Adjusted Gross Margin

 

Three Months Ended March 31,

(Unaudited, U.S. Dollars, in thousands)

2026

2025

Gross profit

$

139,546

 

$

121,619

 

Share-based compensation and long-term incentive plan expense

 

331

 

 

461

 

SeaSpine merger-related costs

 

(528

)

 

600

 

Restructuring costs and impairments related to M6 product lines

 

(437

)

 

10,919

 

Strategic investments

 

 

 

13

 

Amortization/depreciation of acquired long-lived assets

 

177

 

 

313

 

Adjusted gross profit

$

139,089

 

$

133,925

 

Adjusted gross margin as a percentage of reported net sales

 

70.7

%

 

69.2

%

Adjusted gross profit attributable to M6 product lines

 

(242

)

 

(906

)

Pro forma adjusted gross profit

$

138,847

 

$

133,019

 

Pro forma adjusted gross margin as a percentage of pro forma net sales

 

70.7

%

 

70.3

%

 

Adjusted EBITDA

 

Three Months Ended March 31,

(Unaudited, U.S. Dollars, in thousands)

2026

2025

Net loss

$

(20,908

)

$

(53,094

)

Income tax expense

 

74

 

 

961

 

Interest expense, net

 

5,664

 

 

4,506

 

Depreciation and amortization

 

13,493

 

 

34,431

 

Share-based compensation and long-term incentive plan expense

 

6,638

 

 

6,469

 

Foreign exchange impact

 

900

 

 

(1,044

)

SeaSpine merger-related costs

 

(69

)

 

1,130

 

Restructuring costs and impairments related to M6 product lines

 

(437

)

 

9,880

 

Strategic investments

 

950

 

 

3,514

 

Acquisition-related fair value adjustments

 

750

 

 

(610

)

Interest and (gain) loss on investments

 

(16

)

 

 

Litigation and investigation costs

 

2,916

 

 

3,042

 

Employee retention credit

 

(951

)

 

 

Adjusted EBITDA

$

9,004

 

$

9,185

 

Adjusted EBITDA as a percentage of reported net sales

 

4.6

%

 

4.7

%

Operating losses attributable to M6 product lines

 

690

 

 

2,246

 

Pro forma adjusted EBITDA

$

9,694

 

$

11,431

 

Pro forma adjusted EBITDA as a percentage of pro forma net sales

 

4.9

%

 

6.0

%

 

Adjusted Net Income (Loss)

 

Three Months Ended March 31,

(Unaudited, U.S. Dollars, in thousands)

2026

2025

Net loss

$

(20,908

)

$

(53,094

)

Share-based compensation and long-term incentive plan expense

 

6,638

 

 

6,469

 

Foreign exchange impact

 

900

 

 

(1,044

)

SeaSpine merger-related costs

 

17

 

 

1,474

 

Restructuring costs and impairments related to M6 product lines

 

(624

)

 

30,204

 

Strategic investments

 

953

 

 

3,543

 

Acquisition-related fair value adjustments

 

750

 

 

(610

)

Amortization/depreciation of acquired long-lived assets

 

3,178

 

 

4,632

 

Litigation and investigation costs

 

2,916

 

 

3,042

 

Interest and (gain) loss on investments

 

(16

)

 

 

Employee retention credit

 

(1,135

)

 

 

Long-term income tax rate adjustment

 

2,106

 

 

2,200

 

Adjusted net loss

$

(5,225

)

$

(3,184

)

Operating losses attributable to M6 product lines

 

916

 

 

2,688

 

Long-term income tax rate adjustment for M6 product lines

 

(256

)

 

(753

)

Pro forma adjusted net loss

$

(4,565

)

$

(1,249

)

 

Cash Flow and Free Cash Flow

 

Three Months Ended March 31,

(Unaudited, U.S. Dollars, in thousands)

2026

2025

Net cash used in operating activities

$

(17,610

)

$

(18,391

)

Net cash used in investing activities

 

(10,515

)

 

(6,736

)

Net cash provided by (used in) financing activities

 

63,970

 

 

(651

)

Effect of exchange rate changes on cash

 

(90

)

 

493

 

Net change in cash and cash equivalents

$

35,755

 

$

(25,285

)

 

 

Three Months Ended March 31,

(Unaudited, U.S. Dollars, in thousands)

2026

2025

Net cash used in operating activities

$

(17,610

)

$

(18,391

)

Capital expenditures

 

(10,661

)

 

(6,736

)

Free cash flow

$

(28,271

)

$

(25,127

)

 

Reconciliation of Non-GAAP Financial Measures to Reported Operating Expenses

 

Three Months Ended March 31,

(Unaudited, U.S. Dollars, in thousands)

2026

2025

Sales, general, and administrative

$

134,911

 

$

132,981

 

Reconciling items impacting sales, general, and administrative:

SeaSpine merger-related costs

 

(486

)

 

(757

)

Restructuring costs and impairments related to M6 product lines

 

187

 

 

(3,336

)

Strategic investments

 

(948

)

 

(1,547

)

Amortization/depreciation of acquired long-lived assets

 

 

 

(60

)

Litigation and investigation costs

 

(2,916

)

 

(3,042

)

Sales, general, and administrative expense, as adjusted

$

130,748

 

$

124,239

 

As a percentage of reported net sales

 

66.5

%

 

64.2

%

Sales, general, and administrative expense attributable to M6 product lines

 

(1,049

)

 

(2,388

)

Pro forma sales, general, and administrative expense, as adjusted

$

129,699

 

$

121,851

 

As a percentage of pro forma net sales

 

66.0

%

 

64.4

%

 

 

Three Months Ended March 31,

(Unaudited, U.S. Dollars, in thousands)

2026

2025

Research and development expense, as reported

$

15,320

 

$

19,766

 

Reconciling items impacting research and development:

SeaSpine merger-related costs

 

(59

)

 

(116

)

Restructuring costs and impairments related to M6 product lines

 

 

 

(1,852

)

Strategic investments

 

(5

)

 

(1,983

)

Research and development expense, as adjusted

$

15,256

 

$

15,815

 

As a percentage of reported net sales

 

7.8

%

 

8.2

%

Research and development expense attributable to M6 product lines

 

(246

)

 

(1,192

)

Pro forma research and development expense, as adjusted

$

15,010

 

$

14,623

 

As a percentage of pro forma net sales

 

7.6

%

 

7.7

%

 

Reconciliations of Non-GAAP Financial Measures to Reported Non-Operating (Income) Expense

 

Three Months Ended March 31,

(Unaudited, U.S. Dollars, in thousands)

2026

2025

Non-operating (income) expense

$

6,398

 

$

3,260

 

Reconciling items impacting non-operating expense:

Foreign exchange impact

 

(900

)

 

1,044

 

Interest and gain (loss) on investments

 

16

 

 

 

Employee retention credit

 

1,135

 

 

 

Non-operating expense, as adjusted

$

6,649

 

$

4,304

 

As a percentage of reported net sales

 

3.4

%

 

2.2

%

Losses (income) attributable to M6 product lines

 

138

 

 

(15

)

Pro forma non-operating expense, as adjusted

$

6,787

 

$

4,289

 

As a percentage of pro forma net sales

 

3.5

%

 

2.3

%

 

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