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Orthofix Q1 2025 Earnings Report
Orthofix reported its financial results for the first quarter ended March 31, 2025, including net sales of $193.6 million and a net loss of $(53.1) million.
Key Takeaways
Orthofix reported first quarter 2025 net sales of $193.6 million, an increase of 2.7% on a reported basis compared to Q1 2024. The company experienced a net loss of $(53.1) million, or $(1.35) per share, and a non-GAAP pro forma adjusted EBITDA of $11.4 million.
First quarter 2025 net sales were $193.6 million, an increase of 2.7% on a reported basis and 4.3% on a pro forma constant currency basis compared to Q1 2024.
Net loss for the first quarter was $(53.1) million, or $(1.35) per share.
Non-GAAP pro forma adjusted EBITDA was $11.4 million, an increase of $3.8 million compared to reported non-GAAP adjusted EBITDA for Q1 2024.
The company updated its full-year net sales guidance to range between $808 million to $816 million, while reaffirming its full-year 2025 adjusted EBITDA and positive free cash flow guidance.
Orthofix
Orthofix
Orthofix Revenue by Segment
Revenue by Segment
Bone Growth Therapies Revenue
CapyFin.comSpinal Implants, Biologics and Enabling Technologies Revenue
CapyFin.comGlobal Spine Revenue
CapyFin.comGlobal Orthopedics Revenue
CapyFin.com Forward Guidance
Orthofix updated its full-year net sales guidance to a range of $808 million to $816 million, excluding sales from discontinued M6 product lines, representing implied constant currency growth of 5.0% year-over-year at the midpoint. The company reaffirmed its full-year 2025 non-GAAP adjusted EBITDA guidance of $82 million to $86 million and positive free cash flow.
Positive Outlook
- Net sales now expected to range between $808 million to $816 million, excluding sales from the discontinued M6 product lines.
- Implied constant currency growth of 5.0% year-over-year at the midpoint of the revised net sales range.
- No change to non-GAAP adjusted EBITDA, which is expected to be $82 million to $86 million.
- No change to free cash flow, which is expected to be positive for full-year 2025.
- The adjusted EBITDA range includes the anticipated impact from the discontinuation of the M6 product lines.
Challenges Ahead
- The revised guidance range assumes a $5 million negative impact from U.S. funded non-governmental organization (NGO) business compared to full-year 2024.
- The guidance is based on current foreign currency exchange rates and does not account for additional potential exchange rate changes.
- The company is unable to provide expectations of GAAP net income (loss) due to uncertainties in predicting certain excluded items.
- The short-term impact from targeted distributor transitions is reflected in the adjusted guidance.
- Restructuring charges related to the discontinuation of the M6 product lines are excluded from the positive free cash flow guidance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income