Orthofix Reports Fourth Quarter and Full-Year 2025 Financial Results and Provides 2026 Financial Guidance

Key Terms

non-gaap financial

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

pro forma financial

Pro forma refers to financial information that is prepared based on estimates or adjustments to show what a company's results might look like under certain scenarios, such as new projects or acquisitions. It helps investors understand the potential impact of future events by providing a clear, hypothetical view of financial performance, much like a weather forecast shows possible future conditions.

ebitda financial

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

free cash flow financial

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

constant currency financial

Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.

basis points financial

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

cagr financial

Compound Annual Growth Rate (CAGR) measures the average yearly growth of an investment, revenue, or other metric over a multi-year period as if it had grown at a steady rate each year. Think of it like the constant speed that would take you from the starting value to the ending value over the same time—useful because it smooths out ups and downs and lets investors compare different assets or performance periods on an even footing.

LEWISVILLE, Texas--(BUSINESS WIRE)-- Orthofix Medical Inc. (NASDAQ: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™ 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™ Navigation, and advancing commercial execution. With full-year contributions from the TRUELOK™ Elevate System and the FITBONE™ Bone Transport and Trochanteric Lengthening Nails, the planned second-half full launch of VIRATA™, 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. Dollars, in millions)		2025				2024				Change				Constant Currency 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. Dollars, in millions)		2025				2024				Change				Constant Currency 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.

Liquidity

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

The Company is providing full-year 2026 guidance as follows:

• 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.

Three-Year Financial Targets

The Company is updating its three-year financial targets and recalibrating the timeline by one year to fully capture the anticipated benefits of its Spine commercial channel optimization. This refreshed 2026-2028 outlook affirms the Company’s expectation of delivering above-market net sales growth, expanding its profitability profile, and generating sustained positive free cash flow:

• 6.5% to 7.5% net sales CAGR from 2026 through 2028
• Mid-teens non-GAAP adjusted EBITDA as a percent of net sales for the full-year 2028
• Positive free cash flow generation from 2026 through 2028, excluding the impact of any potential legal settlements

An investor presentation for the Company’s fourth quarter and full-year 2025 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 fourth quarter and full-year ended December 31, 2025. 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 2236604. 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 headquartered in Lewisville, Texas. By providing medical technologies that heal musculoskeletal pathologies, Orthofix delivers exceptional experiences and life-changing solutions to patients around the world. Orthofix offers a comprehensive portfolio of spinal hardware, bone growth therapies, limb reconstruction solutions, biologics and enabling technologies, including the 7D FLASH Navigation System. Learn more about our surgical and therapeutic solutions at Orthofix.com and follow us 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, 2025. 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. 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								Year Ended
		December 31,								December 31,
(U.S. Dollars, in thousands, except share and per share data)		2025				2024				2025				2024
		(Unaudited)
Net sales		$	219,911			$	215,657			$	822,312			$	799,491
Cost of sales			63,569				66,816				256,295				253,606
Gross profit			156,342				148,841				566,017				545,885
Sales, general, and administrative			136,752				136,479				554,329				532,525
Research and development			15,373				18,807				65,847				73,643
Acquisition-related amortization, impairment, and remeasurement			3,723				5,031				27,269				24,336
Operating income (loss)			494				(11,476	)			(81,428	)			(84,619	)
Interest expense, net			(4,351	)			(14,920	)			(17,488	)			(29,631	)
Other income (expense), net			1,665				(3,315	)			8,106				(9,625	)
Loss before income taxes			(2,192	)			(29,711	)			(90,810	)			(123,875	)
Income tax benefit (expense)			(30	)			564				(1,382	)			(2,122	)
Net loss		$	(2,222	)		$	(29,147	)		$	(92,192	)		$	(125,997	)
Net loss per common share:
Basic		$	(0.06	)		$	(0.75	)		$	(2.33	)		$	(3.30	)
Diluted			(0.06	)			(0.75	)			(2.33	)			(3.30	)
Weighted average number of common shares (in millions):
Basic			40.0				38.7				39.6				38.1
Diluted			40.0				38.7				39.6				38.1

ORTHOFIX MEDICAL INC.
Condensed Consolidated Balance Sheets
(U.S. Dollars, in thousands, except par value data)		December 31, 2025				December 31, 2024
Assets
Current assets
Cash and cash equivalents		$	82,025			$	83,238
Restricted cash			3,090				2,500
Accounts receivable, net of allowances of $8,308 and $7,418, respectively			135,746				134,713
Inventories			172,319				189,452
Prepaid expenses and other current assets			23,667				23,382
Total current assets			416,847				433,285
Property, plant, and equipment, net			129,399				139,804
Intangible assets, net			72,765				98,803
Goodwill			194,934				194,934
Other long-term assets			36,702				26,468
Total assets		$	850,647			$	893,294
Liabilities and shareholders’ equity
Current liabilities
Accounts payable		$	58,392			$	48,803
Current portion of finance lease liability			837				755
Other current liabilities			111,253				119,070
Total current liabilities			170,482				168,628
Long-term debt			157,391				157,015
Long-term portion of finance lease liability			17,060				17,835
Other long-term liabilities			55,677				46,692
Total liabilities			400,610				390,170
Contingencies
Shareholders’ equity
Common shares $0.10 par value; 100,000 shares authorized; 39,834 and 38,486 issued and outstanding as of December 31, 2025 and 2024, respectively			3,983				3,849
Additional paid-in capital			813,769				779,718
Accumulated deficit			(368,333	)			(276,141	)
Accumulated other comprehensive income (loss)			618				(4,302	)
Total shareholders’ equity			450,037				503,124
Total liabilities and shareholders’ equity		$	850,647			$	893,294

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 and year ended December 31, 2025, and 2024, have been adjusted to eliminate the financial effects of the Company’s decision to discontinue its M6 product lines. Accordingly, previously reported figures for 2024 have been recast to reflect the financial impact of this decision.

Adjusted Gross Profit and Adjusted Gross Margin
		Three Months Ended December 31,								Year Ended December 31,
(Unaudited, U.S. Dollars, in thousands)		2025				2024				2025				2024
Gross profit		$	156,342			$	148,841			$	566,017			$	545,885
Share-based compensation expense			398				462				1,695				2,053
SeaSpine merger-related costs			(392	)			675				4,111				6,254
Restructuring costs and impairments related to M6 product lines			(401	)			—				13,309				—
Strategic investments			2				32				59				192
Acquisition-related fair value adjustments			—				3,047				—				12,188
Amortization/depreciation of acquired long-lived assets			313				313				1,253				1,153
Adjusted gross profit		$	156,262			$	153,370			$	586,444			$	567,725
Adjusted gross margin as a percentage of reported net sales			71.1	%			71.1	%			71.3	%			71.0	%
Adjusted gross profit attributable to M6 product lines			(256	)			(3,316	)			(4,791	)			(11,556	)
Pro forma adjusted gross profit		$	156,006			$	150,054			$	581,653			$	556,169
Pro forma adjusted gross margin as a percentage of pro forma net sales			71.4	%			71.5	%			71.6	%			71.7	%

Adjusted EBITDA
		Three Months Ended December 31,								Year Ended December 31,
(Unaudited, U.S. Dollars, in thousands)		2025				2024				2025				2024
Net loss		$	(2,222	)		$	(29,147	)		$	(92,192	)		$	(125,997	)
Income tax expense (benefit)			30				(564	)			1,382				2,122
Interest expense, net			4,351				14,920				17,488				29,631
Depreciation and amortization			13,078				15,994				77,321				60,061
Share-based compensation expense			7,214				7,165				28,688				32,455
Foreign exchange impact			314				3,132				(2,910	)			4,395
SeaSpine merger-related costs			(49	)			1,493				6,093				14,485
Restructuring costs and impairments related to M6 product lines			495				—				14,564				—
Strategic investments			821				440				4,915				910
Acquisition-related fair value adjustments			660				3,737				(1,140	)			19,088
Interest and (gain) loss on investments			(7	)			—				(48	)			5,120
Litigation and investigation costs			5,169				5,452				33,788				15,770
Succession charges			—				1,315				—				9,376
Employee retention credit			(1,972	)			—				(4,826	)			—
Adjusted EBITDA		$	27,882			$	23,937			$	83,123			$	67,416
Adjusted EBITDA as a percentage of reported net sales			12.7	%			11.1	%			10.1	%			8.4	%
Operating losses attributable to M6 product lines			1,323				1,058				2,741				6,371
Pro forma adjusted EBITDA		$	29,205			$	24,995			$	85,864			$	73,787
Pro forma adjusted EBITDA as a percentage of pro forma net sales			13.4	%			11.9	%			10.6	%			9.5	%

Adjusted Net Income
		Three Months Ended December 31,								Year Ended December 31,
(Unaudited, U.S. Dollars, in thousands)		2025				2024				2025				2024
Net loss		$	(2,222	)		$	(29,147	)		$	(92,192	)		$	(125,997	)
Share-based compensation expense			7,214				7,165				28,688				32,455
Foreign exchange impact			314				3,132				(2,910	)			4,395
SeaSpine merger-related costs			(449	)			4,430				8,962				17,864
Restructuring costs and impairments related to M6 product lines			496				—				35,495				—
Strategic investments			824				470				4,966				1,036
Acquisition-related fair value adjustments			660				3,737				(1,140	)			19,088
Amortization/depreciation of acquired long-lived assets			3,376				4,837				15,627				19,323
Litigation and investigation costs			5,169				5,452				33,788				15,770
Succession charges			—				1,315				—				9,376
Interest and (gain) loss on investments			(7	)			—				(48	)			5,070
Employee retention credit			(2,197	)			—				(5,813	)			—
Long-term income tax rate adjustment			(3,668	)			(796	)			(6,123	)			1,981
Adjusted net income		$	9,510			$	595			$	19,300			$	361
Operating losses attributable to M6 product lines			1,336				1,533				2,282				8,261
Long-term income tax rate adjustment for M6 product lines			(374	)			(429	)			(639	)			(2,313	)
Pro forma adjusted net income		$	10,472			$	1,699			$	20,943			$	6,309

Cash Flow and Free Cash Flow
		Year Ended December 31,
(U.S. Dollars, in thousands)		2025				2024
Net cash provided by operating activities		$	33,347			$	25,790
Net cash used in investing activities			(34,598	)			(27,580	)
Net cash provided by (used in) financing activities			(786	)			50,709
Effect of exchange rate changes on cash			1,414				(938	)
Net change in cash, cash equivalents, and restricted cash		$	(623	)		$	47,981

		Year Ended December 31,
(Unaudited, U.S. Dollars, in thousands)		2025				2024
Net cash provided by operating activities		$	33,347			$	25,790
Capital expenditures			(34,626	)			(34,876	)
Free cash flow		$	(1,279	)		$	(9,086	)

Reconciliation of Non-GAAP Financial Measures to Reported Operating Expenses
		Three Months Ended December 31,								Year Ended December 31,
(Unaudited, U.S. Dollars, in thousands)		2025				2024				2025				2024
Sales, general, and administrative		$	136,752			$	136,479			$	554,329			$	532,525
Reconciling items impacting sales, general, and administrative:
SeaSpine merger-related costs			66				(3,617	)			(4,614	)			(11,072	)
Restructuring costs and impairments related to M6 product lines			(898	)			—				(6,164	)			—
Strategic investments			(879	)			(456	)			(2,819	)			(602	)
Amortization/depreciation of acquired long-lived assets			(1	)			(182	)			(61	)			(733	)
Litigation and investigation costs			(5,169	)			(5,452	)			(33,338	)			(15,770	)
Succession charges			—				(160	)			—				(8,221	)
Sales, general, and administrative expense, as adjusted		$	129,871			$	126,612			$	507,333			$	496,127
As a percentage of reported net sales			59.1	%			58.7	%			61.7	%			62.1	%
Sales, general, and administrative expense attributable to M6 product lines			(866	)			(3,667	)			(3,914	)			(14,108	)
Pro forma sales, general, and administrative expense, as adjusted		$	129,005			$	122,945			$	503,419			$	482,019
As a percentage of pro forma net sales			59.0	%			58.6	%			62.0	%			62.1	%

		Three Months Ended December 31,								Year Ended December 31,
(Unaudited, U.S. Dollars, in thousands)		2025				2024				2025				2024
Research and development expense, as reported		$	15,373			$	18,807			$	65,847			$	73,643
Reconciling items impacting research and development:
SeaSpine merger-related costs			(9	)			(154	)			(237	)			(538	)
Restructuring costs and impairments related to M6 product lines			2				—				(1,927	)			—
Strategic investments			54				19				(2,090	)			(242	)
Litigation and investigation costs			—				—				(450	)			—
Succession charges			—				(1,155	)			—				(1,155	)
Research and development expense, as adjusted		$	15,420			$	17,517			$	61,143			$	71,708
As a percentage of reported net sales			7.0	%			8.1	%			7.4	%			9.0	%
Research and development expense attributable to M6 product lines			(710	)			(2,501	)			(3,086	)			(9,364	)
Pro forma research and development expense, as adjusted		$	14,710			$	15,016			$	58,057			$	62,344
As a percentage of pro forma net sales			6.7	%			7.2	%			7.2	%			8.0	%

Reconciliations of Non-GAAP Financial Measures to Reported Non-Operating (Income) Expense
		Three Months Ended December 31,								Year Ended December 31,
(Unaudited, U.S. Dollars, in thousands)		2025				2024				2025				2024
Non-operating expense		$	2,686			$	18,235			$	9,382			$	39,256
Reconciling items impacting non-operating expense:
Restructuring costs and impairments related to M6 product lines			—				—				3				—
Foreign exchange impact			(314	)			(3,132	)			2,910				(4,395	)
Interest and gain (loss) on investments			7				—				48				(5,070	)
Employee retention credit			2,198				—				5,814				—
Non-operating expense, as adjusted		$	4,577			$	15,103			$	18,157			$	29,791
As a percentage of reported net sales			2.1	%			7.0	%			2.2	%			3.7	%
Losses attributable to M6 product lines			(15	)			(56	)			(72	)			(144	)
Pro forma non-operating expense, as adjusted		$	4,562			$	15,047			$	18,085			$	29,647
As a percentage of pro forma net sales			2.1	%			7.2	%			2.2	%			3.8	%

 

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Company Contact

Investors and Media

Julie Dewey, IRC

Chief Investor Relations & Communications Officer

JulieDewey@Orthofix.com

+1 209.613.6945

Source: Orthofix Medical Inc.