OFIX · Orthofix Medical Inc.

Orthofix Medical Inc. announced its first quarter 2026 results, showcasing steady execution amid spine commercial channel transitions. Pro forma net sales reached $196.4 million, up 2.7% on a constant currency basis from $189.2 million in Q1 2025, primarily driven by 6% growth in Global Spine Fixation (U.S. +4%) and 5% in Therapeutic Solutions, partially offset by impacts from distributor changes and geography mix. Global Limb Reconstruction grew 3% on constant currency. GAAP gross margin improved to 70.9% from prior year levels, with non-GAAP pro forma adjusted gross margin at 70.7%, a 40 basis point expansion. However, non-GAAP pro forma adjusted EBITDA declined to $9.7 million (4.9% margin) from $11.4 million (6.0%), reflecting transition costs and mix effects, as noted by CEO Massimo Calafiore, who highlighted improved focus post-distributor transitions. Operating loss narrowed significantly to $(14.4) million from $(48.9) million, and net loss improved to $(20.9) million or $(0.52) per share from $(53.1) million or $(1.35). Balance sheet strengthened with cash rising to $120.9 million, though long-term debt increased to $221.3 million. Free cash flow was negative at $(28.3) million due to operating cash use and capex. The company reaffirmed full-year 2026 guidance for net sales of $850-860 million (implying ~5.5% pro forma constant currency growth), adjusted EBITDA of $95-98 million with margin expansion, and positive free cash flow excluding legal settlements. Management emphasized priorities like biologics advancement, product launches such as VIRATA Spinal Fixation in 2H 2026, and operational discipline to drive profitable growth toward 2028 targets.