LEWISVILLE, Texas--(BUSINESS WIRE)--February 24, 2026--
Orthofix Medical Inc. $(OFIX)$, a leading global medical technology company, today reported its financial results for the fourth quarter and full-year ended December 31, 2025, provided full-year 2026 financial guidance and updated its three-year financial targets. All pro forma measures contained within this release exclude the impact of the Company's decision to discontinue its M6$(TM)$ product lines.
Highlights
-- Fourth quarter reported 2025 net sales of $219.9 million, including
sales from M6 artificial cervical and lumbar discs, and non-GAAP pro
forma net sales of $218.6 million, excluding sales from M6 discs,
representing an increase of 2% on a reported basis and 3% on a non-GAAP
pro forma constant currency basis compared to fourth quarter 2024
-- Fourth quarter 2025 Global Spine Fixation1 reported net sales growth of
10% and constant currency net sales growth of 10% compared to prior year
period, including U.S. Spine Fixation net sales growth of 5%; Full-year
2025 Global Spine Fixation reported net sales growth of 10% and constant
currency net sales growth of 10%, both compared to full-year 2024,
including U.S. Spine Fixation net sales growth of 6%
-- Bone Growth Therapies ("BGT") reported fourth quarter 2025 net sales
growth of 7% compared to prior-year period and full-year 2025 net sales
growth of 6% compared to full-year 2024
-- U.S. Limb Reconstruction (formerly U.S. Orthopedics) reported fourth
quarter 2025 net sales growth of 8% compared to prior-year period and
full-year 2025 net sales growth of 16% compared to full-year 2024
-- Fourth quarter 2025 reported net loss of $(2.2) million and non-GAAP
pro forma adjusted EBITDA of $29.2 million, with non-GAAP pro forma
adjusted EBITDA margin expanding approximately 230 basis points compared
to reported non-GAAP adjusted EBITDA margin for fourth quarter 2024
-- Standout quarter of robust free cash flow generation--$16.8 million in
fourth quarter 2025; Delivered positive full-year 2025 free cash flow of
$3.1 million, excluding M6-related restructuring charges, and near
breakeven free cash flow for full-year 2025
"The fourth quarter capped a year of meaningful operational progress for Orthofix," said Massimo Calafiore, President and Chief Executive Officer. "Throughout 2025, BGT and U.S. Limb Reconstruction delivered strong performance, and the work we did to finalize our Spine commercial channel supported double-digit year--over--year constant currency net sales growth in our global Spine Fixation business. This momentum contributed to our eighth consecutive quarter of adjusted EBITDA growth and a standout quarter of free cash flow generation, clear evidence of the strength of our focused initiatives and margin-enhancement efforts."
Mr. Calafiore added, "As we move into 2026, our priorities remain centered on expanding market penetration, accelerating adoption of enabling technologies, such as 7D FLASH(TM) Navigation, and advancing commercial execution. With full-year contributions from the TRUELOK(TM) Elevate System and the FITBONE(TM) Bone Transport and Trochanteric Lengthening Nails, the planned second-half full launch of VIRATA(TM), continued Spine commercial channel optimization, a renewed focus on advancing our Biologics portfolio, and sustained momentum across our Limb Reconstruction and BGT businesses, we believe the Company is well-positioned to deliver durable top-line growth, expanding margins, and strong free cash flow that supports 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
Fourth Quarter 2025 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 December 31,
----------------- ------------------------------------
(Unaudited, U.S. Constant
Dollars, in Currency
millions) 2025 2024 Change Change
----------------- ------ ------ ------ --------
Bone Growth
Therapies $ 68.3 $ 63.9 7.0% 7.0%
Spinal
Implants,
Biologics and
Enabling
Technologies* 112.3 110.2 1.9% 1.8%
------------------ ----- ----- ------ --------
Global Spine* 180.6 174.1 3.7% 3.7%
Global Limb
Reconstruction 38.0 35.8 6.2% (0.1%)
------------------ ----- ----- ------ --------
Pro forma net
sales* 218.6 209.9 4.2% 3.1%
------------------ ----- ----- ------ --------
Impact from
discontinuation
of M6 product
lines 1.3 5.8 (77.2%) (77.5%)
------------------ ----- ----- ------ --------
Reported net sales $219.9 $215.7 2.0% 0.9%
------------------ ----- ----- ------ --------
* 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 fourth quarter 2025, net sales were $219.9 million, including sales from M6 artificial cervical and lumbar discs, and pro forma net sales were $218.6 million, excluding sales from M6 discs, representing an increase of 2.0% on a reported basis and 3.1% on a pro forma constant currency basis compared to fourth quarter 2024.
For the fourth quarter 2025, gross margins were 71.1% and were 71.4% on a non-GAAP pro forma adjusted basis.
Fourth quarter 2025 reported net loss was $(2.2) million, or $(0.06) per share compared to reported net loss of $(29.1) million, or $(0.75) per share in the prior year period. Non-GAAP pro forma adjusted EBITDA was $29.2 million, or 13.4% of pro forma net sales, in the fourth quarter of 2025, representing an increase of $5.3 million compared to reported non-GAAP adjusted EBITDA of $23.9 million, or 11.1% of reported net sales, in the fourth quarter of 2024.
Full-Year 2025 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:
Year Ended December 31,
----------------- ------------------------------------
(Unaudited, U.S. Constant
Dollars, in Currency
millions) 2025 2024 Change Change
----------------- ------ ------ ------ --------
Bone Growth
Therapies $247.2 $233.4 5.9% 5.9%
Spinal
Implants,
Biologics and
Enabling
Technologies* 430.0 418.5 2.8% 2.8%
------------------ ----- ----- ------ --------
Global Spine* 677.2 651.9 3.9% 3.9%
Global Limb
Reconstruction 134.7 124.2 8.4% 5.3%
------------------ ----- ----- ------ --------
Pro forma net
sales* 811.9 776.1 4.6% 4.1%
------------------ ----- ----- ------ --------
Impact from
discontinuation
of M6 product
lines 10.4 23.4 (55.4%) (55.5%)
------------------ ----- ----- ------ --------
Reported net sales $822.3 $799.5 2.9% 2.4%
------------------ ----- ----- ------ --------
* 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 full-year 2025, net sales were $822.3 million, including sales from M6 artificial cervical and lumbar discs, and pro forma net sales were $811.9 million, excluding sales from M6 discs, representing an increase of 2.9% on a reported basis and 4.1% on a pro forma constant currency basis compared to full-year 2024.
For the full-year 2025, gross margins were 68.8% and were 71.6% on a non-GAAP pro forma adjusted basis.
Full-year 2025 net loss was $(92.2) million, or $(2.33) per share, compared to net loss of $(126.0) million, or $(3.30) per share in the prior year period. Full-year 2025 non-GAAP pro forma adjusted EBITDA was $85.9 million, or 10.6% of non-GAAP pro forma net sales for the same period, compared to non-GAAP adjusted EBITDA of $67.4 million, or 8.4% of reported net sales, in the prior year period.
Cash, cash equivalents, and restricted cash on December 31, 2025 totaled $85.1 million compared to $65.9 million on September 30, 2025.
Business Outlook
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