Orthofix | 8-K: 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 -12.37 M.

Non-GAAP Financial Measures

Orthofix Medical Inc. uses non-GAAP financial measures such as constant currency, free cash flow, adjusted gross profit and margin, adjusted net income (loss), adjusted operating expenses, adjusted non-operating expenses, and EBITDA to provide additional insight into its financial performance. These measures exclude items like share-based compensation, foreign exchange impacts, merger-related costs, strategic investments, acquisition-related fair value adjustments, amortization/depreciation of acquired long-lived assets, interest and gain (loss) on investments, litigation and investigation-related costs, succession charges, restructuring costs, and employee retention credits.

Free Cash Flow

Free cash flow was - $18.1 million for the nine months ended September 30, 2025, compared to - $24.3 million for the same period in 2024.

Segment Revenue

Bone Growth Therapies: Net sales of $61.2 million, representing a growth of 6% compared to the third quarter of 2024.
Spinal Implants, Biologics, and Enabling Technologies: Net sales of $108.6 million, a 5.6% increase compared to the third quarter of 2024.
Global Spine: Net sales of $169.8 million, up 5.6% from the third quarter of 2024.
Global Orthopedics: Net sales of $33.6 million, achieving constant currency growth of 6%, and U.S. Orthopedics net sales growth of 19% compared to the third quarter of 2024.

Operational Metrics

Net Loss: Reported net loss of - $22.8 million, or - $0.57 per share, compared to a net loss of - $27.4 million, or - $0.71 per share in the prior-year period.
Gross Margin: Gross margins were 72.2% for the quarter and 72.1% on a non-GAAP pro forma adjusted basis.
Adjusted EBITDA: Non-GAAP pro forma adjusted EBITDA was $24.6 million, representing 12.1% of pro forma net sales, compared to $19.2 million, or 9.8% of reported net sales, in the prior-year period.

Cash Flow

Operating Cash Flow: Net cash provided by operating activities was $5.65 million for the nine months ended September 30, 2025, compared to $2.06 million for the same period in 2024.

Unique Metrics

Adjusted EBITDA Margin Expansion: The company achieved its seventh consecutive quarter of adjusted EBITDA margin expansion.
U.S. Spine Fixation: 8% YoY net sales growth, with U.S. procedure volume growth of 10% ahead of Q2’25 and Q3’24.
U.S. Orthopedics: 19% YoY net sales growth, marking the fifth consecutive quarter of double-digit growth.

Outlook / Guidance

Orthofix Medical Inc. narrowed its full-year 2025 net sales guidance range while maintaining the midpoint, raising the low end of its full-year 2025 adjusted EBITDA guidance range, and maintaining its free cash flow guidance. Pro forma net sales are expected to range between $810 million to $814 million, excluding sales from the discontinued M6 product lines. Pro forma non-GAAP adjusted EBITDA is expected to be $84 million to $86 million, and free cash flow is expected to be positive for full-year 2025, excluding restructuring charges related to the discontinuation of the M6 product lines.