10-Q · May 5, 2026
Orthofix Medical Inc. reported Q1 2026 revenue of $196.7 million, slightly exceeding the estimate of $194.7 million, while recording a diluted EPS loss of $(0.52), which surpassed the expected loss of $(0.38). The…
Earnings analysis · 10-Q
OFIX earnings analysis
Filed August 5, 2026 · Our reading of the company's report
The latest report
Orthofix delivered Q2 revenue of $210.9M, up 3.8% year over year and above Q1's $197M, with a 230-basis-point gross-margin expansion to 71.0% and a 400-basis-point operating-margin improvement to negative 3.9%. Limb…
Read full summary
Orthofix delivered Q2 revenue of $210.9M, up 3.8% year over year and above Q1's $197M, with a 230-basis-point gross-margin expansion to 71.0% and a 400-basis-point operating-margin improvement to negative 3.9%. Limb Reconstruction was the principal growth driver at 13.2%, while Global Spine grew 2.0% despite the discontinued M6 products and temporary Medicare-related pricing pressure. The operating improvement was offset by a $15.8M GAAP net loss, higher interest expense, and negative six-month free cash flow of $47.1M; leverage stood at $225.0M.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.39
What stood out
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Revenue returned to sequential growth
Q2 net sales were $210.9M, up $7.8M, or 3.8%, from $203.1M a year earlier. Sales also increased from $197M in Q1 2026.
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Material year-over-year margin recovery
Gross margin expanded 230 basis points year over year to 71.0% from 68.7%, while operating margin improved 400 basis points to negative 3.9% from negative 7.9%. Gross profit rose $10.2M to $149.7M.
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Limb Reconstruction led segment growth
Global Limb Reconstruction revenue grew 13.2% to $37.7M, including a $3.5M international increase and a $0.7M favorable foreign-exchange benefit.
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Core Spine categories grew despite M6 exit
Global Spine sales reached $173.2M, up $3.4M year over year; Therapeutic Solutions grew $1.6M to $64.2M and Spinal Implants, Biologics and Enabling Technologies rose $4.2M excluding M6.
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Cash balance increased following financing
Cash, cash equivalents and restricted cash increased to $104.4M at June 30, 2026 from $85.1M at December 31, 2025, supported by $66.4M of financing cash flow.
What to watch
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New FDA reclassification competition risk
The filing added a risk factor that the FDA's reclassification of bone-growth stimulators from Class III to Class II could lower barriers for competitors. Therapeutic Solutions generated $64.2M of Q2 sales, making potential price and share pressure material.
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Cash burn and inventory efficiency weakened
Six-month operating cash flow was negative $23.8M and capital expenditures were $23.3M, producing negative $47.1M free cash flow versus negative $20.6M a year earlier. Inventory turns fell to 1.3x from 1.5x.
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Higher debt increased interest burden
Outstanding credit-facility borrowings were $225.0M at June 30, 2026, after the $65.0M Term B Loan was funded in January. Quarterly net interest expense increased $2.1M to $6.1M.
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EPS loss widened year over year
GAAP net loss was $15.8M and diluted EPS was negative $0.39, versus negative $0.36 in Q2 2025. Other income/expense deteriorated $6.5M year over year and interest expense rose $2.1M.
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Medicare reimbursement disruption affected pricing
Therapeutic Solutions' $1.6M growth was partly offset by unfavorable pricing from Medicare billing and fee-schedule changes effective May 18, 2026, although CMS withdrew the changes on July 1, 2026.
Management's outlook
The 10-Q does not provide explicit quantitative annual revenue or EPS guidance; outlook was deferred to other company communications.
Earlier filings 4
10-K · February 24, 2026
Orthofix describes a spine-centric strategy focused on organic and inorganic innovation, sales-channel optimization, and clinical evidence to drive growth; Global Spine accounted for 84% of net sales in 2025.…
10-Q · November 7, 2024
Orthofix reported net sales of $196,606,000 for the quarter ended September 30, 2024, up from $184,006,000 in Q3 2023, with gross profit increasing to $135,053,000 and gross margin expanding to ~68.7%. Operating loss…
10-Q · August 6, 2024
Orthofix reported net sales of $198,620 for the quarter ended June 30, 2024, up $11,604 versus $187,016 in Q2 2023. Gross profit increased to $134,749 (gross margin ~67.9%) and operating loss narrowed to $(24,906) from…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.