Orthofix Medical (OFIX) Q2 2026 earnings summary

Executive summary

• Achieved Q2 2026 net sales of $210.9M, up 4% reported and 5% pro forma constant currency year-over-year, with double-digit growth in Global Spine Fixation and Limb Reconstruction.

• Therapeutic Solutions grew 3% year-over-year despite temporary Medicare reimbursement headwinds; Biologics stabilized and regained momentum.

• Adjusted EBITDA for Q2 2026 was $20.1M, representing 9.6% of pro forma net sales.

• Net loss for Q2 2026 was $15.8M; non-GAAP adjusted net income was $2.9M.

• Raised full-year 2026 guidance for both net sales and adjusted EBITDA following Medicare reimbursement restoration.

Financial highlights

• Q2 2026 net sales: $210.9M, up 3.8% reported and 4.7% pro forma constant currency year-over-year.

• GAAP gross margin: 71.0%; non-GAAP adjusted gross margin: 71.7%.

• Adjusted SG&A expense was $133.2M (63% of pro forma net sales); adjusted R&D expense was $15.4M (7%).

• Cash, cash equivalents, and restricted cash: $104.4M at June 30, 2026.

• Free cash flow for six months ended June 30, 2026: $(47.1)M.

Outlook and guidance

• Full-year 2026 net sales guidance raised to $845M–$855M, up $7M at both ends from prior guidance.

• Full-year 2026 non-GAAP adjusted EBITDA guidance increased to $95M–$98M.

• Guidance assumes 5% year-over-year pro forma constant currency growth at midpoint and one-time European distributor inventory purchases.

• Anticipated $22M net sales headwind in 2027 due to timing of MDR-related distributor purchases.

• Focus remains on innovation, margin expansion, and building financial resilience for consistent above-market growth.