Orthofix Medical Inc. · NASDAQ:OFIX
Orthofix Medical — Q1 2025 Earnings Presentation
37 slides from Orthofix Medical's earnings presentation, May 6, 2025
Slide 1: Clear Course for Profitable Growth
Clear Course for Profitable Growth 1Q 2025 Earnings Call May 6, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation 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 cur
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures Management uses certain non-GAAP financial measures in this presentation, most specifically Adjusted EBITDA, Adjusted Gross Margin, Adjusted Net Income and Free Cash Flow, as a supplement to GAAP financial measures to further evaluate the Company’s operating performance p
Slide 4: Vision and Values
VISION The unrivaled partner in Med Tech, delivering exceptional experiences and life-changing solutions. VALUES TAKE INNOVATE WIN OWNERSHIP BOLDLY TOGETHER 4
Slide 5: Orthofix Today
ORTHOFIX TODAY Healing Musculoskeletal Pathologies in Spine and Orthopedics with Specialized Solutions and Enabling Technologies 1980 Founded ~$538M ~$75.7M Market-Cap1 TTM Adjusted EBITDA2 Employees 1,600+ Key Stats ~71.5% ~$60.5M NASDAQ OFIX TTM Adjusted Gross Margin2 Cash, Cash Equivalents, and R
Slide 6: Q1 2025 Financial Highlights
Q1 2025 Financial Highlights $189.2M $11.4M $(25.1)M 4% 5% 10% 70.3% Pro Forma Non-GAAP Free Cash Flow3 U.S. Spine Bone Growth U.S. Orthopedics Non-GAAP Net Sales1 Pro Forma Fixation4 YoY Net Therapies YoY YoY Net Sales Pro Forma Adjusted Adjusted EBITDA1,3 Sales Growth Net Sales Growth Growth Gross
Slide 7: Q1 2025 Key Messages
Q1 2025 Key Messages Continuing to execute the priorities that we outlined in our long-term plan to transform 01 our business and deliver on our commitment to drive disciplined, profitable growth Pro forma adjusted EBITDA exceeded expectations – pro forma adjusted EBITDA margin 02 expanded by ~200 b
Slide 8: Q1 2025 Results Summary
Q1 2025 Results Summary First Quarter 2025 Results Summary (in millions) Constant Currency Q1 Total Pro Forma Net Sales: $189.2M Q1 2025 Q1 2024 Change 4.3% YoY pro forma constant currency growth Bone Growth Therapies $ 55.1 $ 52.5 4.9% Spinal Implants, Biologics, and Enabling Technologies 104.3 102
Slide 9: Q1 2025 Business Segment Highlights
Q1 2025 Business Segment Highlights BONE GROWTH THERAPIES SPINE ORTHOPEDICS BGT net sales +7%* U.S. Spine Fixation net sales +5%* Global Orthopedics net sales +13%* U.S. Orthopedics net sales +12%* » Successful cross-selling » Continued to gain share in categories » Growth led by combination of wher
Slide 10: Capitalizing on Clear Competitive Advantages
Capitalizing on Clear Competitive Advantages Comprehensive Established World-Class, Portfolio of Distribution Channels Visionary Leadership Transformative and Extensive Global Team with Deep Solutions Commercial Reach Sector Expertise Improved Large Addressable Clinical Efficiencies and Markets with
Slide 11: Spinal Implants
Spinal Implants Executing Innovation and Taking Share • Comprehensive, best-in-class spinal implants designed to work in concert Market Overview with 7D Navigation and biologics to support improved clinical outcomes Thoracolumbar • Focus on deformity correction and experts in cervical fixation and F
Slide 12: Bone Growth Therapies
Bone Growth Therapies Maximizing #1 Market Position • Safe, effective, non-surgical alternative to aid in bone healing of fracture Market Overview management and high-risk spine fusions • Most comprehensive portfolio of bone growth stimulation devices • Most indications on the market to aid in bone
Slide 13: Biologics
Biologics Growing from a Position of Strength • Full spectrum of biologic solutions to enhance fusion process and Market Overview Demineralized Bone promote bone repair and growth • Provide industry leading, best-in-class products in each of the major Matrix bone grafting categories • #2 Position •
Slide 14: Orthopedics
Orthopedics Redefining Limb Reconstruction • Unique portfolio of limb reconstruction solutions, addressing the most Market Overview Extremity Deformity challenging orthopedic conditions in patients of all ages Correction & Limb Restoration Select Product Examples • Significant share capture opportun
Slide 15: Orthopedics: Redefining the Category of Limb Reconstruction
Orthopedics: Redefining the Category of Limb Reconstruction ENABLING TECHNOLOGIES Extremity Deformity Correction LIMB Limb Lengthening RECON Industry leader with a unique portfolio of limb reconstruction solutions, addressing the Complex Limb Fracture most challenging conditions Preservation Managem
Slide 16: Watch What Limb Reconstruction Looks Like For Justin
REAL STORIES. REAL IMPACT. Watch What Limb Reconstruction Looks Like For Justin TL-HEX TrueLok Hexapod System Patient 16
Slide 17: Enabling Technologies
Enabling Technologies Empowering Excellence with Real-Time, Integrated Smart Technologies • FLASHTM Navigation with 7D Technology, world’s leading, zero-radiation1 Market Overview spine image-guided surgery system • Allows surgeons to perform fast, cost-effective, and radiation-free surgery • Pacese
Slide 18: Innovation Spotlight – FLASH Navigation with 7D Technology
Innovation Spotlight – FLASHTM Navigation with 7D Technology Revolutionizing Spinal Navigation Created Meaningful Advantages with FLASHTM Navigation with 7D Technology reduction in intraoperative 97.8% radiation during adult degenerative spinal fusions1* First and only image-guided surgery system re
Slide 19: Significant Cross-Portfolio Commercial Opportunities
Significant Cross-Portfolio Commercial Opportunities Bone Growth Therapies (BGT) • Combined portfolio with Biologics to target Trauma surgeons Spine • Combine with select Orthopedics product lines Orthopedics • Maximize procedural • Expanding domestically through legacy • Maximize procedural selling
Slide 20: Looking Forward – Accelerating Our Profitable Growth Engine
Looking Forward – Accelerating Our Profitable Growth Engine Invest in Capitalize on Differentiated Multiple Access Improve Technologies Points to Grow Operate Financial Strength in Areas Where Business at with Discipline for and Drive We Can Win Sustained, Margin Expansion Strong, Positive and Lead
Slide 21: Full-Year 2025 Guidance
Full-Year 2025 Guidance1 $808M – $82M – $816M $86M Net Sales Adjusted EBITDA Positive Free Cash Flow for 2025² 1 As of the Company’s Q1 2025 Earnings Call hosted on 5/6/2025. Inclusion of this information in this presentation is not a confirmation or an update of, and should not be construed or othe
Slide 22: Investment Summary – Why Invest in Orthofix?
Investment Summary – Why Invest in Orthofix? Strong fundamentals with profitable growth opportunity and compelling value 01 proposition across diverse portfolio More focused commercial strategy with robust innovation pipeline complemented 02 by successful cross-selling New leadership team well-posit
Slide 23: www.Orthofix.com NASDAQ: OFIX
For additional information, please contact: www.Orthofix.com Julie Dewey, IRC NASDAQ: OFIX Chief IR & Communications Officer juliedewey@orthofix.com 209-613-6945 23
Slide 24: Appendix
Appendix Financial and Non-GAAP Reconciliation Tables
Slide 25: Net Sales by Major Product Category by Reporting Segment
Net Sales by Major Product Category by Reporting Segment Three Months Ended March 31, Constant Currency (Unaudited, U.S. Dollars, in millions) 2025 2024 Change Change Bone Growth Therapies $ 55.1 $ 52.5 4.9% 4.9% Spinal Implants, Biologics and Enabling Technologies* 104.3 102.3 2.0% 2.0% Global Spin
Slide 26: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets March 31, December 31, (U.S. Dollars, in thousands, except par value data) 2025 2024 (Unaudited) Assets Current assets Cash and cash equivalents $ 57,953 $ 83,238 Restricted Cash 2,500 2,500 Accounts receivable, net of allowances of $8,602 and $7,418, respective
Slide 27: Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Operations Three Months Ended March 31, (Unaudited, U.S. Dollars, in thousands, except share and per share data) 2025 2024 Net sales $ 193,646 $ 188,608 Cost of sales 72,027 61,366 Gross profit 121,619 127,242 Sales, general, and administrative 132,981 131,691 Re
Slide 28: Adjusted Gross Profit and Adjusted Gross Margin
Adjusted Gross Profit and Adjusted Gross Margin Three Months Ended March 31, (Unaudited, U.S. Dollars, in thousands) 2025 2024 Gross profit $ 121,619 $ 127,242 Share-based compensation expense 462 537 SeaSpine merger-related costs 600 1,303 Restructuring costs and impairments related to M6 product l
Slide 29: Adjusted EBITDA
Adjusted EBITDA Three Months Ended March 31, (Unaudited, U.S. Dollars, in thousands) 2025 2024 Net loss $ (53,094) $ (36,020) Income tax expense 961 851 Interest expense, net 4,506 4,558 Depreciation and amortization 34,431 14,862 Share-based compensation expense 6,469 8,800 Foreign exchange impact
Slide 30: Adjusted Net Income (Loss)
Adjusted Net Income (Loss) Three Months Ended March 31, (Unaudited, U.S. Dollars, in thousands) 2025 2024 Net loss $ (53,094) $ (36,020) Share-based compensation expense 6,469 8,800 Foreign exchange impact (1,044) 1,588 SeaSpine merger-related costs 1,474 4,848 Restructuring costs and impairments re
Slide 31: Cash Flow and Free Cash Flow
Cash Flow and Free Cash Flow Three Months Ended March 31, (Unaudited, U.S. Dollars, in thousands) 2025 2024 Net cash from operating activities $ (18,391) $ (18,595) Net cash from investing activities (6,736) (10,867) Net cash from financing activities (651) 21,453 Effect of exchange rate changes on
Slide 32: Adjusted Sales, General and Administrative Expense
Adjusted Sales, General and Administrative Expense Three Months Ended March 31, (Unaudited, U.S. Dollars, in thousands) 2025 2024 Sales, general, and administrative $ 132,981 $ 131,691 Reconciling items impacting sales, general, and administrative: Restructuring costs and impairments related to M6 p
Slide 33: Adjusted Research and Development Expense
Adjusted Research and Development Expense Three Months Ended March 31, (Unaudited, U.S. Dollars, in thousands) 2025 2024 Research and development expense, as reported $ 19,766 $ 19,492 Reconciling items impacting research and development: Restructuring costs and impairments related to M6 product lin
Slide 34: Adjusted Non-Operating Expense
Adjusted Non-Operating Expense Three Months Ended March 31, (Unaudited, U.S. Dollars, in thousands) 2025 2024 Non-operating expense $ 3,260 $ 5,832 Reconciling items impacting non-operating expense: Foreign exchange impact 1,044 (1,588) Interest and loss on investments — 283 Non-operating expense, a
Slide 35: 2024 Pro Forma Financial Statements – M6 Product Lines
2024 Pro Forma Financial Statements – M6 Product Lines Three Months Ended Three Months Ended Year Ended (Unaudited, U.S. Dollars, in thousands) March 31, 2025 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 December 31, 2024 Net sales $ 4,443 $ 6,520 $ 5,804 $ 5,328 $ 5,792 $ 23,44
Slide 36: 2024 Pro Forma Non-GAAP Adjusted EBITDA – M6 Product Lines
2024 Pro Forma Non-GAAP Adjusted EBITDA – M6 Product Lines Three Months Ended Three Months Ended Year Ended (Unaudited, U.S. Dollars, in thousands) March 31, 2025 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 December 31, 2024 Net loss $ (32,893) $ (3,519) $ (3,271) $ (3,458) $ (
Slide 37: 2024 Pro Forma Non-GAAP Adjusted Net Loss and Adjusted Gross Margin – M6 Product Lines
2024 Pro Forma Non-GAAP Adjusted Net Loss and Adjusted Gross Margin – M6 Product Lines Three Months Ended Three Months Ended Year Ended (Unaudited, U.S. Dollars, in thousands) March 31, 2025 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 December 31, 2024 Net loss $ (32,893) $ (3,