Orthofix Medical Inc. · NASDAQ:OFIX
Orthofix Medical — Q2 2025 Earnings Presentation
28 slides from Orthofix Medical's earnings presentation, Aug 5, 2025
Slide 1: Clear Course for Profitable Growth
Clear Course for Profitable Growth 2Q 2025 Earnings Call August 5, 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 ~$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 6: 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 7: 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 8: 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 9: 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 10: 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 11: 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 12: 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 13: 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 14: 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 14
Slide 15: Appendix
Appendix Financial and Non-GAAP Reconciliation Tables
Slide 16: 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 17: 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 18: 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 19: 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 20: 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 21: 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 22: 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 23: Pro Forma Non-GAAP Financial Statements – Excluding Impact of M6 Product Lines
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 24: 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 25: 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 26: 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 27: Pro Forma Non-GAAP Adjusted EBITDA – Excluding Impact of M6 Product Lines
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 28: Pro Forma Non-GAAP Adjusted Net Loss and Adjusted Gross Margin – Excluding Impact of M6 Product Lines
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