Orthofix | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 205.63 M

Revenue: As of FY2025 Q3, the actual value is USD 205.63 M, beating the estimate of USD 200.01 M.

EPS: As of FY2025 Q3, the actual value is USD -0.57, missing the estimate of USD -0.4067.

EBIT: As of FY2025 Q3, the actual value is USD -17.58 M.

Global Spine Segment

• Net Sales: $172.1 million for the three months ended September 30, 2025, an increase of $6.0 million or 3.6% compared to the same period in 2024.
• Bone Growth Therapies (BGT) Net Sales: Increased by $3.3 million, or 5.7%, driven by increased order volumes and share growth of AccelStim.
• Spinal Implants, Biologics, and Enabling Technologies Net Sales: Excluding M6 product lines, increased by $5.8 million, or 5.6%, due to growth in cervical, interbody, and thoracolumbar franchises.
• Operating Loss: - $17,046 for the three months ended September 30, 2025, compared to - $18,899 for the same period in 2024.

Global Orthopedics Segment

• Net Sales: $33.6 million for the three months ended September 30, 2025, an increase of $3.1 million or 10.1% on a reported basis compared to the same period in 2024.
• U.S. Growth: $1.6 million, or 18.5%, driven by investments in product launches and growth within TrueLok and Fitbone product lines.
• International Sales: Increased by $0.2 million, or 1.0% on a constant currency basis.

Cash Flow

• Net Cash Provided by Operating Activities: $5.65 million for the nine months ended September 30, 2025, compared to $2.06 million for the same period in 2024.
• Free Cash Flow: - $18,099 for the nine months ended September 30, 2025, compared to - $24,285 for the same period in 2024.

Unique Metrics

• Adjusted EBITDA: Non-GAAP pro forma adjusted EBITDA of $24.6 million for the third quarter of 2025, with margin expanding approximately 233 basis points compared to the third quarter of 2024.

Future Outlook and Strategy

• Core Business Focus: Orthofix Medical Inc. plans to focus resources and investment on more profitable growth opportunities by discontinuing the M6 product lines.
• Non-Core Business: The company is involved in ongoing arbitration claims with former executives and related securities class action complaints, which have increased legal expenses.

Outlook

Orthofix Medical Inc. anticipates continued growth in its core segments, with strategic investments in product launches and sales channels expected to drive future performance. The company is focused on optimizing its portfolio by discontinuing less profitable product lines and enhancing operational efficiency.