Orthofix Medical : 1Q 2026 Earnings Call Presentation

Published: 2026-05-05 07:11:11 ET OFIX

Published on 05/05/2026 at 07:11 am EDT

Investor Presentation

May 2026

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 period over period, analyze the underlying business trends, assess performance relative to competitors and establish operational objectives.

Management believes it is important to provide investors with the same non-GAAP metrics it uses to evaluate the performance and underlying trends of the Company's business operations to facilitate comparisons to its historical operating results and evaluate the effectiveness of its operating strategies. Disclosure of these non-GAAP financial measures also facilitates comparisons of the Company's underlying operating performance with other companies in the industry that also supplement their GAAP results with non-GAAP financial measures.

Unless noted otherwise, full-year guidance is based on the current foreign currency exchange rates and does not take into account any additional potential exchange rate changes that may occur this year.

These non-GAAP financial measures should not be considered in isolation from, or as replacements for, the most directly comparable GAAP financial measures, as these measures are not prepared in accordance with U.S. GAAP. Reconciliations between GAAP and non-GAAP results are included at the end of this presentation and represent the most comparable GAAP measure(s) to the applicable non-GAAP measure(s) shown in the table. For further information regarding the nature of these exclusions, why the Company believes that these non-GAAP financial measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the Company's current report on Form 8-K regarding its first quarter 2026 press release filed on May 5, 2026 with the SEC and available on the SEC's website at https://www.sec.gov and on the "Investors" page of the Company's website at https://www.orthofix.com.

The Company's non-GAAP financial measures for the three months ended March 31, 2026, and 2025, have been adjusted to eliminate the financial effects of the Company's decision to discontinue its M6 product lines. Accordingly, previously reported figures for 2025 have been recast to reflect the financial impact of this decision.

Amounts may not add due to rounding.

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 spinal solutions, therapeutic solutions, biologics, specialized limb reconstruction solutions, and an advanced surgical navigation system (7D FLASH )

Driving meaningful and sustainable, above-market growth with broad, differentiated technologies, extensive commercial reach, and improving financial strength

Delivering significant value to surgeons and patients and setting new standards of innovation through our products and extensive solutions

Executing a clear strategy for profitable growth led by an established, world-class management team

Advancing toward our 2028 financial targets to build on positive momentum, increase transparency, and maximize shareholder value creation

Commitment to Disciplined, Profitable Growth to Deliver Life-Changing Solutions and Maximize Value Creation

Transformation Focused on Accelerating Excellence

RECENT ACCOMPLISHMENTS

AND TRANSFORMATIVE ACTIONS

Building on clear competitive advantages

Delivering consistent performance -achieved profitability objectives, adjusted EBITDA margin expansion

Consistent free cash flow generation-

$3.1 million1 in FY 2025

Supporting profitable growth with

disciplined capital deployment

Driving a culture of execution and accountability through established, world-class management team

CONTINUED LEADERSHIP FOCUS AREAS -

MULTIPLE LEVERS FOR PROFITABLE GROWTH

Innovation Focus

Continued development of differentiated products to meet diverse surgeon preferences

Commercial Strategy Enhancement Deeper market penetration through comprehensive portfolio offerings

Technology Leadership

Harnessing advanced systems for improved surgical outcomes and efficiency

Growth Sustainability

Emphasis on high-quality revenue streams and operational excellence

Cash Flow Management

Strategic financial planning to achieve positive free cash flow

Entering a New Phase in our Journey, Driven by Strategic, Operational and Financial Discipline

6 1 Excluding the free cash flow impact related to the Company's discontinuation of the M6 product lines and related restructuring activities.

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, ownership of responsibilities, and empowerment to execute. We do this for patients and the healthcare professionals who treat them. We collaborate with world-class surgeons and other partners to bring to market highly innovative, cost-effective, and user-friendly medical technologies through excellent customer service. We do this to improve people's quality of life, and in doing so, create exceptional value for our customers, employees and stockholders.

ORTHOFIX TODAY

Founded

Key Stats

Employees

NASDAQ

~$475M

Market-Cap1

~71.7%

TTM Adjusted Gross Margin2

~$84.1M

TTM Adjusted EBITDA2

~$120.9M

Cash, Cash Equivalents, and Restricted Cash2

TTM Net Sales2 by Business

Solutions

17%

30%

Global Presence

Lewisville, TX

~83%

U.S.

~17%

Int'l

TTM Net Sales2 by Geography

~$819.1M

53%

Attractive Stock Entry Point with Multiple Paths for Value Creation

8 Note: TTM = Trailing 12 Months. 1 4/30/2026. 2 As of 3/31/2026; All figures exclude impact of net sales and/or results of operations related to discontinuation of M6 product lines.

Key Focus Areas & Priorities

Invest in Differentiated Technologies Where Orthofix Can Win and Lead

Innovate to drive growth and strengthen leading positions

Future upside from high-impact new product launches

Capitalize on Multiple Access Points to Grow at Above-Market Rates

Leverage technologies and sales channels across complementary product segments

Create new entry points, cross-selling opportunities and stickier surgeon relationships

Operate with Discipline for Margin Expansion

Rigorous allocation of resources to high-return opportunities

Focus on process and gross margin improvements

Build Financial Resilience

and Unlock Strong, Consistent Cash Flow

Continuing to drive positive free cash flow in 2026 and thereafter

Improved financial strength with profitability and term loan flexibility

Strategy is Driving Long-Term Profitable Growth and Positive Free Cash Flow

Two Growth Pillars - One Integrated Performance Engine

Spine

Maximize procedural selling opportunity with Biologics, Limb Reconstruction, and Enabling Technologies

Therapeutic Solutions (formerly Bone Growth Therapies)

Combined portfolio with Biologics to target trauma surgeons

Combine with select Limb Reconstruction products

Expanding domestically through legacy SeaSpine distribution and U.S. Limb Reconstruction channels

Biologics

Expand cross-selling with U.S. Limb Reconstruction channels

Limb Reconstruction

Maximize procedural selling opportunity with Biologics, Limb Reconstruction, and Enabling Technologies

Enabling Technologies (ET)

Focus on 7D equipment placements to drive recurring implant usage

Leverage investment and drive synergistic approach across the portfolio

Expanding and Deepening Customer Relationships

Comprehensive Portfolio of Transformative Solutions

Established Distribution Channels and Extensive Global Commercial Reach

World-Class, Visionary Leadership Team with Deep Sector Expertise

Improved Clinical Efficiencies and Economic Value with

7D Enabling Technology

Large Addressable Markets with High-Growth Opportunities Across Continuum

of Care

Total Addressable Market

2026 - 2028

Expected Market Growth Rate

Spinal Implants

~$10.1B

~3% - 4%

Therapeutic Solutions

(formerly Bone Growth Therapies)

~$0.6B

~2% - 3%

Biologics

~$2.1B

~2% - 3%

Limb Reconstruction

(formerly Orthopedics)

~$2.6B

~5% - 6%

Enabling Technologies

~$0.4B

~10% - 12%

Well-Positioned for Favorable Macro Trends

Aging

Population

Digital

Healthcare

Evolving Standards of Care

AI and Machine Learning

Enabling Technology Advancement

Driving Innovation and Taking Share

Comprehensive, best-in-class spinal implants designed to work in concert with 7D Navigation and biologics to support improved clinical outcomes

Focus on deformity correction

Proven expertise in cervical fixation and material science

Shoreline ACS

NorthStar OCT

Select Product Examples

Deformity Phoenix MIS Wayfinder

Mariner

Cervical Thoracolumbar Fixation

Market Overview

~$10.1B TAM1

OFIX Growth Drivers

Thoracolumbar

Fixation

Significant share capture opportunity

~3% - 4% market growth rate (2026 - 2028)

Interbody

Significant share capture opportunity

~3% - 4% market growth rate (2026 - 2028)

Cervical

Significant share capture opportunity

~3% - 4% market growth rate (2026 - 2028)

WaveForm

(3D Printed)

Reef

(IBDs)

Interbody

Explorer

(Expandable)

Sales channel optimization for growth, cross-selling, and OPEX leverage

Meridian

Pull through from lateral, cervical, and 7D earnouts

Best-in-class implants to improve patient outcomes

Supporting Clinicians and Patients through Continuous Innovation of Procedure Solutions

13 1 U.S. Total Addressable Market. Sources: iData Research Inc.; U.S. Market Report for Spinal Implants and VCF; SmartTrak US Spine Market Report; Internal OFIX estimates

Market Overview

~$0.6B TAM1

Spine

#1 Position

~2% - 3% market growth

rate (2026 - 2028)

Fracture

#2 Position

~2% - 3% market growth rate (2026 - 2028)

OFIX Growth Drivers

Procedural selling focused on cross-selling with limb reconstruction and spine

New market channels with established sales

representatives

AccelStim growth to penetrate Fracture market

Maximizing #1 Market Position

Safe, effective, non-surgical solution to promote bone healing in fracture management and high-risk spine fusions

Most comprehensive portfolio of bone growth stimulation devices

Most indications on the market to aid in bone healing solutions

1,400,000+

#1 prescribed bone growth stimulator

First to offer free recycling for patients to properly dispose of their devices

PEMF technology approved since 1986

Prescribed devices

AccelStim

PhysioStim

Select Product Examples

SpinalStim

CervicalStim

Complex Foot & Ankle Reconstruction and Fracture Management

Spine Fusion Therapy

Exceeding Market Growth Rate through Innovation and Expansion

14 Note: PEMF = Pulsed Electromagnetic Field. 1 U.S. Total Addressable Market.

Renewed Focus on Advancing our Portfolio

Full spectrum of biologic solutions to enhance fusion process and promote bone repair and growth

Select Product Examples

OsteoStrand Plus OsteoSurge 300

Provide industry leading, best-in-class products in each of the major bone grafting categories

Trinity Elite

Market Overview

~$2.1B TAM1

Demineralized Bone Matrix

#3 Position

~2% - 3% market growth

rate (2026 - 2028)

Cellular Allograft

#2 Position

~2% - 3% market growth rate (2026 - 2028)

Synthetic

Demineralized Bone Matrix

Cellular Allograft

Significant share capture opportunity

~2% - 3% market growth rate (2026 - 2028)

Growth Factors, Other

Do not participate

OsteoCove OsteoBallast

Synthetic Procedure-Specific

OFIX Growth Drivers

Opportunities in current portfolio and spine

Product innovation with clinical research

Disc regeneration, channel expansion options

Strategically Introducing New Products to Capture Additional Market Share

15 1 Global Total Addressable Market, including Growth Factors.

Market Overview

~$2.6B TAM1

OFIX Growth Drivers

Limb Preservation

~5% market growth rate

(2026-2028)

Extremity Deformity Correction

~5% - 6% market growth rate (2026 - 2028)

Complex Fracture Management

~3% - 4% market growth rate (2026 - 2028)

Limb Lengthening

~9% market growth rate (2026 - 2028)

*Significant share

capture opportunity across all 4 pillars

Accelerating U.S. growth and expanding position

Global sales channel optimization through execution and

focused distribution

New, unique product platforms with next-gen digital capabilities

Leading the Growth

Unique portfolio of limb reconstruction solutions, addressing the most challenging orthopedic conditions in patients of all ages

Select Product Examples

TL-HEX

Extremity Deformity Correction

TrueLok Elevate

Limb

Preservation

Fitbone

Galaxy Gemini

Limb Lengthening

Complex Fracture Management

Enabling Technologies - OrthoNext

Proven Leader with Room to Grow through Innovation of Hardware and Digital Solutions

1 Global Total Addressable Market.

Sources: iData Research Inc. 2021; Berkyl Global Market Analysis 2020; SmartTrak 2024; Orthoworld Industry Annual Report, 2024; Acuity MD Data, 2025; Grandview Research, 2023; US Bone Transport Procedure Volume Analysis, 2015; CDC National Diabetes Statistics Report, 2022; Brownrigg, et al. Evidence-based Management of PAD & the Diabetic Foot, 2013. 45(6), 673-681; Behroozian et al. Art Thro Vasc Biology, 2020. 40(3).

Extremity Deformity Correction

Limb Preservation

ENABLING TECHNOLOGIES

Industry leader with a unique portfolio of limb reconstruction

solutions, addressing the most challenging conditions in patients of all ages

Limb Lengthening

Complex Fracture Management

ENABLING TECHNOLOGIES

Innovation Spotlight: TrueLok Elevate System

Supporting surgeon-led correction of complex bony and soft-tissue defects

The TrueLok Elevate device has not been approved by the FDA for treatment of ulcers and the safety and effectiveness of the TrueLok Elevate for treatment of ulcers has not been established.

18 Tibial cortex transverse transport: Historical evolution, clinical applications, and future directions-Schroeder, et al. Foot & Ankle Surgery: Techniques, Reports & Cases, Vol 5, Issue 3, 100513

Orthofix has not made any changes to the image above and use of this image is in no way an endorsement of the Journal or Authors

Minimally invasive, quick application, reproducible technique

Versatile design

Sterile, ready to use components

Background

Justin, a 6'9" newlywed, suffered from severe genu valgum

(knock-knees) that caused chronic

pain and limited mobility.

As he prepared for fatherhood, he feared becoming disabled without corrective surgery.

Click here for Justin's story

OFIX Unique Solution

Under the care of Dr. William Terrell, the team elected to treat both legs simultaneously

− TL-HEX External Fixation System used

on tibias for gradual, precise realignment

− Double ring configuration for added support due to height and size

− Post-surgery, fixators adjusted twice a day to correct the bone alignment

Result / Outcomes

Successful Orthofix-supported deformity correction procedure

Restoration of patient mobility

Strengthened customer loyalty

Life is much better than it was before the surgery. I am almost back to 100% to what I should have been before.

- Justin

Market Overview

~$0.4B TAM3

Spinal Navigation

Significant share

capture opportunity

~10% - 12% market growth rate (2026 - 2028)

OFIX Growth Drivers

7D deployments through commercial financing structures and product pull through

Product integration with spinal implant portfolio

Digital ecosystem expansion (pre-op planning, intra-op

navigation, and post-op care)

Empowering Excellence with Real-Time, Integrated Smart Technologies

FLASH Navigation with 7D Technology, world's leading zero-radiation1

spine image-guided surgery system

Allows surgeons to perform fast, cost-effective, and radiation-free surgery

Pacesetting leader for open spine procedures and deformity correction

Product Example

Significant Focus in Spine

Open and Percutaneous Spine Modules2

FLASH Navigation with 7D Technology

Seizing Significant Opportunity to Leverage Technology and Expand Share in Spine

1 Based on a pre-op CT or MRI, no intra-op radiation is required using Open Spine Module, eliminating exposure to surgeons, staff, and patients. Intra-op radiation is required for Percutaneous Module. 2 ~40% of U.S. installed base has cranial module. 3 Global Total Addressable Market.

Capital Purchase

Lease

Voyager Earnout Program

"Earnout" through purchase of spine hardware and/or biologics; creating recurring revenue stream and stronger customer relationships

faster than intraoperative CT-based

systems3*

minutes saved per case4*

Technology Differentiates Portfolio While Enabling Service to Full Continuum of Surgical Care

Flexible Selling Models to Meet Unique Needs of Facility

Created Meaningful Advantages with FLASH Navigation with 7D Technology

First and only image-guided surgery (IGS) system featuring 7D's machine-vision technology, allowing surgeons to perform fast, cost-effective, radiation-free IGS

reduction in intraoperative radiation during adult degenerative spinal fusions1*

reduction in intraoperative radiation during complex pediatric deformity spinal fusions2*

accurate with no pedicle breach1*

*Not an Orthofix sponsored clinical study. 1 Malham GM, Munday NR. Comparison of novel machine vision spinal image guidance system with existing 3D fluoroscopy-based navigation system: a randomized prospective study. Spine J. 2022 Apr;22(4):561-569. doi: 10.1016/j.spinee.2021.10.002. Epub 2021 Oct 16. PMID: 34666179. 2 Comstock, Christopher P. MD; Wait, Eric MD. Novel Machine Vision Image Guidance System Significantly Reduces Procedural Time and Radiation Exposure Compared With 2-dimensional Fluoroscopy-based Guidance in Pediatric Deformity Surgery. Journal of Pediatric Orthopaedics ():10.1097/BPO.0000000000002377, March 6, 2023. | DOI: 10.1097/ BPO.0000000000002377 3 Jakubovic R, Guha D, Gupta S, et al. High speed, high density intraoperative 3D optical topographical imaging with efficient registration to MRI and CT for craniospinal surgical navigation. Sci Rep. 2018;8:14894. doi:10.1038/s41598-018-32424-z. 4 Lim KBL, Yeo ISX, Ng SWL, Pan WJ, Lee NKL. The machine-vision image guided surgery system reduces fluoroscopy time, ionizing radiation and intraoperative blood loss in posterior spinal fusion for scoliosis. Eur Spine J. 2023 Jul 10. doi: 10.1007/s00586-023-07848-5. Epub ahead of print. PMID: 37428212.Stewart G. Visible Light Navigation in Spine Surgery: My Experience With My First 150 Cases. Int J Spine Surg. 2022 Oct;16(S2):S28-S36. doi: 10.14444/8274. Epub 2022 Aug 5. PMID: 36456113; PMCID: PMC9808787.

Disclaimer

Orthofix Medical Inc. published this content on May 05, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 05, 2026 at 11:10 UTC.