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Orthofix Medical Q3 2026 Earnings Results
Orthofix Medical reports Q3 2026 earnings below expectations with U.S. Spine weakness but strong limb reconstruction growth.
In brief
Orthofix Medical reports Q3 2026 earnings below expectations with U.S. Spine weakness but strong limb reconstruction growth. Orthofix Medical reported Q3 2026 net sales of $207.9 million, a 2.3% increase, but U.S. Spine Fixation declined 5% year over year due to market softness and supplier delays. Originally reported…
Q3 2026 Results
Orthofix Medical reported Q3 2026 net sales of $207.9 million, a 2.3% increase on a pro forma constant currency basis.
Net Loss
Net loss of $6.1 million, or $0.15 per share, compared to a net loss of $22.8 million in the prior year period.
Adjusted EBITDA
Adjusted EBITDA of $26.0 million, representing 12.5% of pro forma net sales compared to 12.1% in the third quarter of 2025.
Spine Segment
U.S. Spine Fixation revenue declined 5% year over year due to market-driven procedural softness and supplier delays.
Limb Reconstruction
Global Limb Reconstruction net sales grew 9% on a constant currency basis driven by strong international demand.
Therapeutic Solutions
Therapeutic Solutions net sales grew 4% year over year and exceeded general market growth rates.
FITBONE and TrueLok
FITBONE and TrueLok Elevate grew over 20% in the third quarter, driving performance in the Global Limb Reconstruction segment.
Full Year Guidance
Full year net sales guidance revised to $825 million to $830 million, down from $845 million to $855 million.
European MDR Headwind
Expected $22 million net sales headwind in 2027 due to European Medical Device Regulation requirements.
Cash Position
Cash and cash equivalents of $86.9 million as of September 30, 2026, reflecting working capital timing.
Distributor Strategy
Core distributors now generate 80% of U.S. spinal implant revenue after accelerating exits from nonstrategic relationships.
Product Portfolio
Company simplifying product portfolio to focus on high-growth technologies like VIRATA and 7D navigation.
VIRATA Launch
Full market launch of VIRATA spinal implant system for open procedures expected later in the fourth quarter.
7D Navigation
Received two 510(k) clearances for software enhancements to the 7D navigation system.
Biologics Performance
U.S. Biologics returned to positive year-over-year growth in October after remaining flat sequentially.
European Distributor
$15 million net sales benefit expected in 2026 from European distributor arrangement, mostly in fourth quarter.
What to remember
Orthofix Medical reported Q3 2026 net sales of $207.9 million, a 2.3% increase, but U.S. Spine Fixation declined 5% year over year due to market softness and supplier delays.
