Orthofix Medical Inc. · NASDAQ:OFIX
Orthofix Medical — Q2 2025 Earnings Presentation
52 slides from Orthofix Medical's earnings presentation, Aug 5, 2025
Slide 1: Clear Course for Profitable Growth
Clear Course for Profitable Growth Investor Presentation August 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: Key Themes
Key Themes Disciplined, Profitable Growth to Maximize Value Creation Building on a strong foundation as a leading global med tech company with a 01 comprehensive portfolio of innovative spinal hardware, bone growth therapies, biologics, specialized orthopedic solutions, and an advanced surgical navi
Slide 5: The New Orthofix
The New Orthofix Commitment to Disciplined, Profitable Growth to Deliver Life-Changing Solutions and Maximize Value Creation 5
Slide 6: Building on a Strong Foundation
Building on a Strong Foundation – Transformation Focused on Accelerating Excellence RECENT ACCOMPLISHMENTS CONTINUED LEADERSHIP FOCUS AREAS – AND TRANSFORMATIVE ACTIONS MULTIPLE LEVERS FOR PROFITABLE GROWTH • Building on clear competitive Innovation Focus advantages Continued development of differen
Slide 7: Reinvigorated and Aligned Around Our New Vision and Mission
Reinvigorated and Aligned Around Our New Vision and Mission Vision The unrivaled partner in med tech, delivering exceptional experiences and life-changing solutions Mission We provide medical technologies that heal musculoskeletal pathologies. We enable our teams through opportunities for growth, ow
Slide 8: Healing Musculoskeletal Pathologies in Spine and Orthopedics
ORTHOFIX TODAY Healing Musculoskeletal Pathologies in Spine and Orthopedics with Specialized Solutions and Enabling Technologies 1980 Founded ~$433M ~$77.9M Market-Cap1 TTM Adjusted EBITDA2 Employees 1,600+ Key Stats ~71.6% ~$68.7M NASDAQ OFIX TTM Adjusted Gross Margin2 Cash, Cash Equivalents, and R
Slide 9: 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 10: Addressable Markets within Full Continuum of Care
Addressable Markets ~$15B within Full Continuum of Care 2025 – 2027 Total Expected Well-Positioned for Favorable Macro Trends Addressable Market Market Growth Rate Spinal Implants ~$10.1B ~3% – 4% Aging Digital Bone Growth Population Healthcare ~$0.6B ~2% – 3% Therapies Biologics ~$2.1B ~2% – 3% Evo
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 Fixation • Proven expertise in cervica
Slide 12: Bone Growth Therapies
Bone Growth Therapies Maximizing #1 Market Position • Safe, effective, non-surgical solution to promote bone healing in 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 he
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 Defining 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 opportunit
Slide 15: Enabling Technologies
Enabling Technologies Empowering Excellence with Real-Time, Integrated Smart Technologies • FLASH® 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 • Paceset
Slide 16: 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 SeaSpine • Maximize procedura
Slide 17: Q2 2025 Results
Q2 2025 Results Clear Progress on Our Three-Year Plan to Transform the Business 17
Slide 18: Q2 2025 Financial Highlights
Q2 2025 Financial Highlights $200.7M $20.6M $4.5M 5% 6% 28% 72.7% 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 Ma
Slide 19: Q2 2025 Key Messages
Q2 2025 Key Messages Continuing to execute the priorities that we outlined in long-term plan to transform our 01 business and deliver on our commitment to drive disciplined, profitable growth Six consecutive quarters of adjusted EBITDA margin expansion – pro forma adjusted 02 EBITDA margin expanded
Slide 20: Q2 2025 Business Segment Highlights
Q2 2025 Business Segment Highlights BONE GROWTH THERAPIES SPINE ORTHOPEDICS BGT net sales +6%* U.S. Spine Fixation net sales +5%* Global Orthopedics net sales +5%* U.S. Orthopedics net sales +28%* » Successful cross-selling » Off to a strong start accelerating targeted distributor transitions in » G
Slide 21: Q2 2025 Results Summary
Q2 2025 Results Summary Second Quarter 2025 Results Summary (in millions) Pro Forma Reported Constant Currency Q2 Total Pro Forma Net Sales: $200.7M Q2 2025 Q2 2024 Change 3.5% YoY pro forma, constant currency growth Bone Growth Therapies $ 62.6 $ 59.1 5.8% Spinal Implants, Biologics, and Enabling T
Slide 22: Full-Year 2025 Guidance
Full-Year 2025 Guidance1 $808M – $82M – $816M $86M Pro Forma Pro Forma Net Sales Adj. EBITDA Positive Free Cash Flow for 2025² 1 As of the Company’s Q2 2025 Earnings Call hosted on 8/5/2025. Inclusion of this information in this presentation is not a confirmation or an update of, and should not be c
Slide 23: Looking Forward
Looking Forward Uniquely Positioned to Accelerate Our Profitable Growth Engine 23
Slide 24: Looking Forward – Accelerating Our Profitable Growth Engine
Looking Forward – Accelerating Our Profitable Growth Engine Invest in Capitalize on Differentiated Multiple Access Building Technologies Points to Grow Operate Financial Resilience in Areas Where Business at with Discipline for and Unlocking We Can Win Sustained, Margin Expansion Strong, Consistent
Slide 25: Invest in Differentiated Technologies
Invest in Differentiated Technologies Systematic Approach to Driving Innovation Focal KPIs 1 Regular cadence of Rigorous allocation of resources to high-return opportunities meaningful, high-impact new product launches Leverage technologies (7D, Biologics, BGT) and sales channels (Spine, Orthopedics
Slide 26: Innovation Spotlight – FLASH Navigation with 7D Technology
Innovation Spotlight – FLASH® Navigation with 7D Technology Revolutionizing Spinal Navigation Created Meaningful Advantages with FLASH® Navigation with 7D Technology reduction in intraoperative 97.8% radiation during adult degenerative spinal fusions1* First and only image-guided surgery (IGS) syste
Slide 27: Innovation Spotlight – Limb Reconstruction
Innovation Spotlight – 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 Management in patients o
Slide 28: Patient Case Study – What Limb Reconstruction Means for Justin
Patient Case Study – What Limb Reconstruction Means for Justin Background OFIX Unique Solution Result / Outcomes • Justin, a 6'9" newlywed, suffered Under the care of Dr. William • Successful Orthofix-supported from severe genu valgum Terrell, the team elected to treat deformity correction (knock-kn
Slide 29: Capitalize on Multiple Access Points to Grow Business
Capitalize on Multiple Access Points to Grow Business at Sustained, Above-Market Rates Current Access Points Spine Spine Fracture 7D Orthopedics BGT Hardware BGT ✓ ✓ Selling into New Spine Accounts ✓ Adding to Future Opportunities OFIX Accounts Adding 7D ✓ ✓ Adding Biologics ✓ ✓ ✓ Adding BGT ✓ ✓ ✓ A
Slide 30: Patient Case Study – Cross-Portfolio Continuum of Care
Patient Case Study – Cross-Portfolio Continuum of Care Background OFIX Unique Solution Result / Outcomes • When Olympic Gold Medalist • Laura had successful anterior • Successful Orthofix cross- Laura Wilkinson was training for cervical discectomy and portfolio procedure her fourth Olympic Games, he
Slide 31: Advancing Toward Our 2027 Financial Goals
Advancing Toward Our 2027 Financial Goals On a Faster Path to Profitability with a Stronger Financial Profile 31
Slide 32: Operate with Discipline for Margin Expansion
Operate with Discipline for Margin Expansion Our Approach to SPOTLIGHT – SeaSpine Merger Operational Excellence Integrating and Capturing Synergies • Building culture of excellence and accountability Portfolio Benefit + Commercial Benefit through implementation of the High Performance • Significant
Slide 33: Enhancing Financial Strength and Increasing Balance Sheet Flexibility
Enhancing Financial Strength and Increasing Balance Sheet Flexibility New Term Loan Established, Outcomes Which Allows for Extra ✓ Entered into New Agreement on 11/7/2024 Capacity and Increased • ~$275M term loan Flexibility • ~$160M funded up front • ~$115M available after 1/1/251 Ran competitive p
Slide 34: Building Financial Resilience and Unlocking Strong, Consistent Free Cash Flow
Building Financial Resilience and Unlocking Strong, Consistent Free Cash Flow Driving Positive Free Cash Flow Significant Free Cash Flow ($M) • Expect to be free cash flow positive for full-year 20251 Progress in 2024 and 2025 − Drop-through to EBITDA from incremental revenue − Working Capital impro
Slide 35: Strategy is Driving Long-Term Profitable Growth
Strategy is Driving Long-Term Profitable Growth 2027 6.5% – 7.5% Mid-Teens Positive Financial Net Sales CAGR1 Adj. EBITDA Free Cash Flow Generation1 Targets (2025 – 2027) (Full-year 2027) (2025 – 2027) Growth Differentiated Multiple Margin Strong Access Engine Pillars Technologies Points Expansion C
Slide 36: World-Class Leadership Team with Extensive Med Tech Expertise
World-Class Leadership Team with Extensive Med Tech Expertise – Focused on Results Massimo Calafiore Julie Andrews Patrick Fisher Max Reinhardt President and Chief Financial Officer President, President, Chief Executive Officer Global Orthopedics Global Spine Year Joined: 2024 Year Joined: 2024 Year
Slide 37: 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 Established leadership team we
Slide 38: 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 38
Slide 39: Appendix
Appendix Financial and Non-GAAP Reconciliation Tables
Slide 40: Net Sales by Major Product Category by Reporting Segment
Net Sales by Major Product Category by Reporting Segment Three Months Ended June 30, Constant Currency (Unaudited, U.S. Dollars, in millions) 2025 2024 Change Change Bone Growth Therapies $ 62.6 $ 59.1 5.8% 5.8% Spinal Implants, Biologics and Enabling Technologies* 104.8 103.1 1.6% 1.6% Global Spine
Slide 41: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets June 30, December 31, (U.S. Dollars, in thousands, except par value data) 2025 2024 (Unaudited) Assets Current assets Cash and cash equivalents $ 65,606 $ 83,238 Restricted Cash 3,083 2,500 Accounts receivable, net of allowances of $8,909 and $7,418, respectivel
Slide 42: Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Operations Three Months Ended Six Months Ended June 30, June 30, (Unaudited, U.S. Dollars, in thousands, except share and per share data) 2025 2024 2025 2024 Net sales $ 203,121 $ 198,620 $ 396,767 $ 387,228 Cost of sales 63,588 63,871 135,615 125,237 Gross profi
Slide 43: Adjusted Gross Profit and Adjusted Gross Margin
Adjusted Gross Profit and Adjusted Gross Margin Three Months Ended June 30, Six Months Ended June 30, (Unaudited, U.S. Dollars, in thousands) 2025 2024 2025 2024 Gross profit $ 139,533 $ 134,749 $ 261,152 $ 261,991 Share-based compensation expense 467 497 929 1,034 SeaSpine merger-related costs 4,34
Slide 44: Adjusted EBITDA and Pro Forma Adjusted EBITDA
Adjusted EBITDA and Pro Forma Adjusted EBITDA Three Months Ended June 30, Six Months Ended June 30, (Unaudited, U.S. Dollars, in thousands) 2025 2024 2025 2024 Net loss $ (14,081) $ (33,443) $ (67,175) $ (69,463) Income tax (benefit) expense (141) 1,084 819 1,936 Interest expense, net 3,950 4,943 8,
Slide 45: Adjusted Net Income (Loss) and Pro Forma Adjusted Net Income
Adjusted Net Income (Loss) and Pro Forma Adjusted Net Income Three Months Ended June 30, Six Months Ended June 30, (Unaudited, U.S. Dollars, in thousands) 2025 2024 2025 2024 Net loss $ (14,081) $ (33,443) $ (67,175) $ (69,463) Share-based compensation expense 7,824 9,959 14,293 18,759 Foreign excha
Slide 46: Cash Flow and Free Cash Flow
Cash Flow and Free Cash Flow Six Months Ended June 30, (Unaudited, U.S. Dollars, in thousands) 2025 2024 Net cash used in operating activities $ (6,752) $ (9,611) Net cash used in investing activities (13,833) (20,583) Net cash provided by financing activities 1,989 21,678 Effect of exchange rate ch
Slide 47: Pro Forma Non-GAAP Financial Statements
Pro Forma Non-GAAP Financial Statements – Excluding Impact of M6® Product Lines Three Months Ended Six Months Ended (Unaudited, U.S. Dollars, in thousands) March 31, 2025 June 30, 2025 June 30, 2025 Net sales $ 189,203 $ 200,658 $ 389,861 Cost of sales (inclusive of share-based compensation expense)
Slide 48: Adjusted Sales, General and Administrative Expense
Adjusted Sales, General and Administrative Expense Three Months Ended June 30, Six Months Ended June 30, (Unaudited, U.S. Dollars, in thousands) 2025 2024 2025 2024 Sales, general, and administrative $ 136,493 $ 134,218 $ 269,474 $ 265,909 Reconciling items impacting sales, general, and administrati
Slide 49: Adjusted Research and Development Expense
Adjusted Research and Development Expense Three Months Ended June 30, Six Months Ended June 30, (Unaudited, U.S. Dollars, in thousands) 2025 2024 2025 2024 Research and development expense, as reported $ 15,934 $ 18,049 $ 35,700 $ 37,541 Reconciling items impacting research and development: SeaSpine
Slide 50: Adjusted Non-Operating Expense
Adjusted Non-Operating Expense Three Months Ended June 30, Six Months Ended June 30, (Unaudited, U.S. Dollars, in thousands) 2025 2024 2025 2024 Non-operating expense $ (1,780) $ 7,453 $ 1,480 $ 13,285 Reconciling items impacting non-operating expense: Restructuring costs and impairments related to
Slide 51: Pro Forma Non-GAAP Adjusted EBITDA
Pro Forma Non-GAAP Adjusted EBITDA – Excluding Impact of M6® Product Lines Three Months Ended Six Months Ended Three Months Ended Year Ended September 30, (Unaudited, U.S. Dollars, in thousands) March 31, 2025 June 30, 2025 June 30, 2025 March 31, 2024 June 30, 2024 2024 December 31, 2024 December 3
Slide 52: Pro Forma Non-GAAP Adjusted Net Loss and Adjusted Gross Margin
Pro Forma Non-GAAP Adjusted Net Loss and Adjusted Gross Margin – Excluding Impact of M6® Product Lines Three Months Ended Six Months Ended Three Months Ended Year Ended (Unaudited, U.S. Dollars, in thousands) March 31, 2025 June 30, 2025 June 30, 2025 March 31, 2024 June 30, 2024 September 30, 2024