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Sep 30
Orthofix Q3 2025 Earnings Report
Orthofix reported its financial results for the third quarter ended September 30, 2025, with solid financial performance, accelerating net sales growth, margin expansion, and positive free cash flow.
Key Takeaways
Orthofix delivered a strong third quarter in 2025, achieving $205.6 million in net sales and a significant increase in non-GAAP pro forma adjusted EBITDA to $24.6 million. The company reported a net loss of $(22.8) million, or $(0.57) per share, but demonstrated consistent adjusted EBITDA margin expansion for the seventh consecutive quarter and positive free cash flow.
Net sales for Q3 2025 reached $205.6 million, with pro forma net sales of $203.4 million, representing a 5% increase on a reported basis compared to Q3 2024.
Non-GAAP pro forma adjusted EBITDA was $24.6 million, an increase of $5.4 million (28.2% growth) compared to the prior-year period, with margin expansion of approximately 233 basis points.
The company reported a net loss of $(22.8) million, or $(0.57) per share, for the quarter.
Orthofix achieved positive free cash flow of $2.5 million for the third quarter of 2025.
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 narrowed its full-year 2025 net sales guidance while maintaining the midpoint and raised the low end of its adjusted EBITDA guidance, maintaining positive free cash flow expectations.
Positive Outlook
- Pro forma net sales guidance maintained at midpoint, expected to range between $810 million to $814 million.
- Low end of full-year 2025 pro forma non-GAAP adjusted EBITDA guidance raised to $84 million, with a range of $84 million to $86 million.
- Free cash flow is expected to be positive for full-year 2025, excluding restructuring charges.
- Guidance includes anticipated impact from the discontinuation of M6 product lines.
- The company's disciplined approach to investment and cost management is expected to continue driving profitable growth.
Challenges Ahead
- Net sales guidance range was narrowed, indicating less flexibility in potential upside.
- Guidance is based on current foreign currency exchange rates and does not account for potential future changes.
- The company is unable to provide GAAP net income (loss) expectations on a forward-looking basis due to unpredictable items.
- Restructuring charges related to the discontinuation of M6 product lines will impact free cash flow.
- The discontinuation of M6 product lines will continue to have an impact on reported figures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income