Orthofix Medical Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net sales for the third quarter ended September 30, 2026, were $207.9 million, an increase of 1.1% on a reported basis and 2.3% on a pro forma constant currency basis compared to the prior year period.
• Pro forma net sales for the quarter were $207.8 million, up 2.2% from the prior year.
• Reported net loss was $(6.1) million, or $(0.15) per share, compared to a reported net loss of $(22.8) million, or $(0.57) per share, in the prior year.
• Non-GAAP adjusted EBITDA was $26.0 million, or 12.5% of pro forma net sales, compared to $24.6 million, or 12.1% of pro forma net sales, in the prior year.
• GAAP gross margin was 70.5%, while non-GAAP adjusted gross margin was 70.7%.
• Cash, cash equivalents, and restricted cash totaled $86.9 million at September 30, 2026, down from $104.4 million at June 30, 2026.
• Long-term debt increased to $221.8 million at September 30, 2026, from $157.4 million at December 31, 2025.
• For the nine months ended September 30, 2026, net cash used in operating activities was $(23.5) million, compared to net cash provided of $5.7 million in the prior year period.
• Free cash flow for the nine months ended September 30, 2026, was $(61.3) million, compared to $(18.1) million in the prior year period.

Guidance and Future Outlook:

• Full-year 2026 pro forma net sales guidance was revised down to $825 million to $830 million, compared to the prior guidance of $845 million to $855 million.
• Full-year 2026 non-GAAP adjusted EBITDA guidance was revised down to $86 million to $88 million, compared to the prior guidance of $95 million to $98 million.
• The revised guidance reflects third-quarter performance and anticipated fourth-quarter impacts related to actions to improve U.S. Spine execution, instrument set availability, and asset productivity.
• Guidance assumptions are based on current foreign currency exchange rates.

Business Segments and Product Lines:

• Global Spine Fixation net sales increased 1% on a reported and constant currency basis compared to the prior year.
• Global Limb Reconstruction net sales increased 8% on a reported basis and 9% on a constant currency basis compared to the prior year.
• Therapeutic Solutions net sales increased 4% compared to the prior year.
• Spinal Implants, Biologics, and Enabling Technologies net sales decreased 1.1% on a reported basis compared to the prior year.
• The company is accelerating actions to strengthen commercial execution, improve instrument set supply and allocation, and increase asset productivity by focusing resources on highest-performing distributor partners, products, and market opportunities in U.S. Spine.
• Results exclude the impact of discontinued M6 product lines on a pro forma basis.

Market and Competitive Landscape:

• The press release does not provide specific details on market share, specific competitor names, or broader market trend data beyond the company's own performance metrics.

Risks and Challenges:

• The company cites weaker Spine performance as a factor impacting results.
• Forward-looking statements note risks including the ability to maintain operations, acceptance of surgical products by surgeons and hospitals, development and acceptance of new products, clinical verification of benefits, inventory management, optimization of commercial channels, and legal proceedings.
• Actual outcomes may differ from forward-looking statements due to risks described in the company's Form 10-K and Form 10-Q filings.

Management Commentary and Tone:

• Massimo Calafiore, President and Chief Executive Officer, stated that continued growth in Limb Reconstruction and Therapeutic Solutions helped offset weaker Spine performance.
• Management expressed confidence that revised guidance reflects actions intended to build a stronger foundation for sustainable growth, profitability, and cash generation.
• The tone indicates a focus on cost discipline, resource alignment, and near-term operational improvements to drive future performance.

Other Key Points:

• The company discontinued its M6 product lines, with results presented on a pro forma basis excluding the impact of these discontinuations.
• An investor presentation for the third quarter 2026 financial results is available on the Orthofix Investor Relations website.
• A conference call was hosted on November 9, 2026, at 8:30 AM Eastern Time to discuss the results.
• The company is a global medical technology company offering spinal implants, therapeutic solutions, limb reconstruction systems, biologics, and enabling technologies, including the 7D FLASH Navigation System.