Slides
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Pro Forma Financial Results Results excluding the impact of discontinuation of M6 product lines
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Net Sales by Major Product Category by Reporting Segment 2 * Results above for each of Spinal Implants, Biologics, and Enabling Technologies; Global Spine; and pro forma net sales exclude the impact from discontinuation of the M6 product lines. Since pro forma net sales represent a non-GAAP measure, see the reconciliation above of the Company’s pro forma net sales to its reported figures under U.S. GAAP. The Company’s reported figures under U.S. GAAP represent each of the pro forma line items discussed above plus the impact from discontinuation of the M6 product lines. Three Months Ended September30, (Unaudited, U.S. Dollars, in millions) 2025 2024 Change Constant Currency Change Bone Growth Therapies $ 61.2 $ 57.9 5.7% 5.7% Spinal Implants, Biologics and Enabling Technologies* 108.6 102.9 5.6% 5.6% Global Spine* 169.8 160.8 5.6% 5.6% Global Orthopedics 33.6 30.5 10.1% 5.9% Pro forma net sales* 203.4 191.3 6.3% 5.7% Impact from discontinuation of M6 product lines 2.2 5.3 (58.5%) (58.6%) Reported net sales $ 205.6 $ 196.6 4.6% 3.9%
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Condensed Consolidated Balance Sheets 3 (U.S. Dollars, in thousands, except par value data) September 30, 2025 December 31, 2024 (Unaudited) Assets Current assets Cash and cash equivalents $ 62,860 $ 83,238 Restricted Cash 3,086 2,500 Accounts receivable, net of allowances of $9,413 and $7,418, respectively 130,808 134,713 Inventories 174,042 189,452 Prepaid expenses and other current assets 23,374 23,382 Total current assets 394,170 433,285 Property, plant, and equipment, net 130,017 139,804 Intangible assets, net 75,641 98,803 Goodwill 194,934 194,934 Other long-term assets 37,848 26,468 Total assets $ 832,610 $ 893,294 Liabilities and shareholders’ equity Current liabilities Accounts payable $ 50,459 $ 48,803 Current portion of finance lease liability 814 755 Other current liabilities 108,574 119,070 Total current liabilities 159,847 168,628 Long-term debt 157,219 157,015 Long-term portion of finance lease liability 17,240 17,835 Other long-term liabilities 55,818 46,692 Total liabilities 390,124 390,170 Contingencies Shareholders’ equity Common shares $0.10 par value; 100,000 shares authorized; 39,519 and 38,486 issued and outstanding as of September 30, 2025, and December 31, 2024, respectively 3,952 3,849 Additional paid-in capital 804,011 779,718 Accumulated deficit (366,111) (276,141) Accumulated other comprehensive income (loss) 634 (4,302) Total shareholders’ equity 442,486 503,124 Total liabilities and shareholders’ equity $ 832,610 $ 893,294
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Condensed Consolidated Statements of Operations 4 Three Months Ended Nine Months Ended September 30, September 30, (Unaudited, U.S. Dollars, in thousands, except share and per share data) 2025 2024 2025 2024 Net sales $ 205,634 $ 196,606 $ 602,401 $ 583,834 Cost of sales 57,111 61,553 192,726 186,790 Gross profit 148,523 135,053 409,675 397,044 Sales, general, and administrative 148,102 130,137 417,576 396,046 Research and development 14,774 17,294 50,474 54,835 Acquisition-related amortization, impairment, and remeasurement 2,693 6,521 23,547 19,305 Operating loss (17,046) (18,899) (81,922) (73,142) Interest expense, net (4,681) (5,210) (13,137) (14,711) Other (expense) income, net (535) (2,528) 6,441 (6,312) Loss before income taxes (22,262) (26,637) (88,618) (94,165) Income tax expense (533) (751) (1,352) (2,686) Net loss $ (22,795) $ (27,388) $ (89,970) $ (96,851) Net loss per common share: Basic $ (0.57) $ (0.71) $ (2.28) $ (2.55) Diluted (0.57) (0.71) (2.28) (2.55) Weighted average number of common shares (in millions): Basic 39.8 38.5 39.5 37.9 Diluted 39.8 38.5 39.5 37.9
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Adjusted Gross Profit and Adjusted Gross Margin 5 Three Months Ended September30, Nine Months Ended September30, (Unaudited, U.S. Dollars, in thousands) 2025 2024 2025 2024 Gross profit $ 148,523 $ 135,053 $ 409,675 $ 397,044 Share-based compensation expense 368 557 1,297 1,591 SeaSpine merger-related costs (438) 1,161 4,503 5,579 Restructuring costs and impairments related to M6 product lines — — 13,710 — Strategic investments 1 32 57 160 Acquisition-related fair value adjustments — 3,047 — 9,141 Amortization/depreciation of acquired long-lived assets 276 313 940 840 Adjusted gross profit $ 148,730 $ 140,163 $ 430,182 $ 414,355 Adjusted gross margin as a percentage of reported net sales 72.3% 71.3% 71.4% 71.0% Adjusted gross profit attributable to M6 product lines (1,989) (2,401) (4,534) (8,239) Pro forma adjusted gross profit $ 146,741 $ 137,762 $ 425,648 $ 406,116 Pro forma adjusted gross margin as a percentage of pro forma net sales 72.1% 72.0% 71.7% 71.7%
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6 Adjusted EBITDA and Pro Forma Adjusted EBITDA Three Months Ended September30, Nine Months Ended September30, (Unaudited, U.S. Dollars, in thousands) 2025 2024 2025 2024 Net loss $ (22,795) $ (27,388) $ (89,970) $ (96,851) Income tax expense 533 751 1,352 2,686 Interest expense, net 4,681 5,210 13,137 14,711 Depreciation and amortization 12,941 15,173 64,243 44,067 Share-based compensation expense 7,181 6,531 21,474 25,290 Foreign exchange impact 571 (1,176) (3,224) 1,263 SeaSpine merger-related costs 126 2,616 6,142 12,992 Restructuring costs and impairments related to M6 product lines 538 — 14,069 — Strategic investments 227 39 4,094 470 Acquisition-related fair value adjustments (427) 5,017 (1,800) 15,351 Interest and (gain) loss on investments (10) 3,567 (41) 5,120 Litigation and investigation costs 21,548 8,335 28,619 10,318 Succession charges — 505 — 8,061 Employee retention credit — — (2,854) — Adjusted EBITDA $ 25,114 $ 19,180 $ 55,241 $ 43,478 Adjusted EBITDA as a percentage of reported net sales 12.2% 9.8% 9.2% 7.4% Operating (income) losses attributable to M6 product lines (532) (1,665) 1,417 (5,313) Pro forma adjusted EBITDA $ 24,582 $ 17,515 $ 56,657 $ 38,165 Adjusted EBITDA as a percentage of pro forma net sales 12.1% 9.2% 9.5% 6.7%
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Adjusted Net Income (Loss) and Pro Forma Adjusted Net Income 7 Three Months Ended September30, Nine Months Ended September30, (Unaudited, U.S. Dollars, in thousands) 2025 2024 2025 2024 Net loss $ (22,795) $ (27,388) $ (89,970) $ (96,851) Share-based compensation expense 7,181 6,531 21,474 25,290 Foreign exchange impact 571 (1,176) (3,224) 1,263 SeaSpine merger-related costs 151 2,619 9,411 13,434 Restructuring costs and impairments related to M6 product lines 538 — 34,999 — Strategic investments 235 69 4,142 566 Acquisition-related fair value adjustments (427) 5,017 (1,800) 15,351 Amortization/depreciation of acquired long-lived assets 3,396 5,046 12,251 14,486 Litigation and investigation costs 21,548 8,335 28,619 10,318 Succession charges — 505 — 8,061 Interest and (gain) loss on investments (10) 3,567 (41) 5,071 Employee retention credit — — (3,616) — Long-term income tax rate adjustment (2,525) (335) (2,455) 2,777 Adjusted net income (loss) $ 7,863 $ 2,790 $ 9,790 $ (234) Operating (income) losses attributable to M6 product lines (976) 2,083 946 6,728 Long-term income tax rate adjustment for M6 product lines 273 (583) (265) (1,884) Pro forma adjusted net income $ 7,160 $ 4,290 $ 10,471 $ 4,610
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Cash Flow and Free Cash Flow 8 Nine Months Ended September30, (Unaudited, U.S. Dollars, in thousands) 2025 2024 Net cash provided by (used in) operating activities $ 5,650 $ 2,060 Net cash used in investing activities (23,727) (26,445) Net cash provided by (used in) financing activities (3,163) 19,222 Effect of exchange rate changes on cash 1,448 (40) Net change in cash and cash equivalents $ (19,792) $ (5,203) Nine Months Ended September30, (Unaudited, U.S. Dollars, in thousands) 2025 2024 Net cash provided by (used in) operating activities $ 5,650 $ 2,060 Capital expenditures (23,749) (26,345) Free cash flow $ (18,099) $ (24,285)
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Pro Forma Non-GAAP Financial Statements – Excluding Impact of M6 Product Lines 9 Three Months Ended Nine Months Ended (Unaudited, U.S. Dollars, in thousands) March 31, 2025 June 30, 2025 September 30, 2025 September 30, 2025 Net sales $ 189,203 $ 200,658 $ 203,411 $ 593,272 Cost of sales (inclusive of share-based compensation expense) 56,183 54,770 56,672 167,625 Gross profit 133,020 145,888 146,739 425,648 Sales, general, and administrative 121,851 127,698 124,862 374,411 Research and development 14,623 14,615 14,109 43,347 Less - Share-based compensation expense in operating expenses (6,008) (7,356) (6,814) (20,178) Operating income 2,554 10,931 14,582 28,067 Interest expense, net (4,501) (4,707) (4,676) (13,884) Other expense, net 212 111 37 360 Loss before income taxes (1,735) 6,335 9,943 14,543 Income tax (expense) benefit 486 (1,775) (2,783) (4,072) Net loss $ (1,249) $ 4,560 $ 7,160 $ 10,471
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Adjusted Sales, General and Administrative Expense 10 Three Months Ended September30, Nine Months Ended September30, (Unaudited, U.S. Dollars, in thousands) 2025 2024 2025 2024 Sales, general, and administrative $ 148,102 $ 130,137 $ 417,576 $ 396,046 Reconciling items impacting sales, general, and administrative: SeaSpine merger-related costs (538) (1,321) (4,680) (7,455) Restructuring costs and impairments related to M6 product lines (537) — (5,266) — Strategic investments (199) (35) (1,940) (146) Amortization/depreciation of acquired long-lived assets — (182) (60) (551) Litigation and investigation costs (21,548) (8,335) (28,169) (10,318) Succession charges — (505) — (8,061) Sales, general, and administrative expense, as adjusted $ 125,280 $ 119,759 $ 377,461 $ 369,515 As a percentage of reported net sales 60.9% 60.9% 62.7% 63.3% Sales, general, and administrative expense attributable to M6 product lines (417) (3,142) (3,048) (10,441) Pro forma sales, general, and administrative expense, as adjusted $ 124,863 $ 116,617 $ 374,413 $ 359,074 As a percentage of pro forma net sales 61.4% 61.0% 63.1% 63.4%
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Adjusted Research and Development Expense 11 Three Months Ended September30, Nine Months Ended September30, (Unaudited, U.S. Dollars, in thousands) 2025 2024 2025 2024 Research and development expense, as reported $ 14,774 $ 17,294 $ 50,474 $ 54,835 Reconciling items impacting research and development: SeaSpine merger-related costs (50) (66) (228) (384) Restructuring costs and impairments related to M6 product lines — — (1,929) — Strategic investments (34) (3) (2,144) (261) Litigation and investigation costs — — (450) — Research and development expense, as adjusted $ 14,690 $ 17,225 $ 45,723 $ 54,190 As a percentage of reported net sales 7.1% 8.8% 7.6% 9.3% Research and development expense attributable to M6 product lines (582) (2,187) (2,376) (6,863) Pro forma research and development expense, as adjusted $ 14,108 $ 15,038 $ 43,347 $ 47,327 As a percentage of pro forma net sales 6.9% 7.9% 7.3% 8.4%
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Adjusted Non-Operating (Income) Expense 12 Three Months Ended September30, Nine Months Ended September30, (Unaudited, U.S. Dollars, in thousands) 2025 2024 2025 2024 Non-operating (income) expense $ 5,216 $ 7,738 $ 6,696 $ 21,023 Reconciling items impacting non-operating expense: Restructuring costs and impairments related to M6 product lines — — 3 — Foreign exchange impact (571) 1,176 3,224 (1,263) Interest and gain (loss) on investments 10 (3,567) 41 (5,070) Employee retention credit — — 3,616 — Non-operating expense, as adjusted $ 4,655 $ 5,347 $ 13,580 $ 14,690 As a percentage of reported net sales 2.3% 2.7% 2.3% 2.5% Losses attributable to M6 product lines (16) (23) (57) (88) Pro forma non-operating expense, as adjusted $ 4,639 $ 5,324 $ 13,523 $ 14,602 As a percentage of pro forma net sales 2.3% 2.8% 2.3% 2.6%
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Pro Forma Non-GAAP Adjusted EBITDA – Excluding Impact of M6 Product Lines 13 Three Months Ended Nine Months Ended Three Months Ended Year Ended (Unaudited, U.S. Dollars, in thousands) March 31, 2025 June 30, 2025 September 30, 2025 September 30, 2025 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 December 31, 2024 Net loss $ (20,201) $ (10,589) $ (23,232) $ (54,022) $ (32,501) $ (30,172) $ (23,930) $ (26,477) $ (113,079) Income tax expense 961 (144) 533 1,349 851 1,084 751 (564) 2,122 Interest expense, net 4,501 3,945 4,676 13,122 4,553 4,938 5,205 14,915 29,611 Depreciation and amortization 13,669 16,739 13,390 43,798 13,341 12,606 13,780 14,562 54,289 Share-based compensation expense 6,469 7,824 7,181 21,474 8,689 9,864 6,443 7,086 32,082 Foreign exchange impact (1,044) (2,751) 571 (3,224) 1,577 851 (1,180) 3,091 4,338 SeaSpine merger-related costs 1,130 4,886 126 6,142 4,462 5,946 2,312 1,440 14,160 Restructuring costs and impairments related to M6 product lines — — — — — — — — — Strategic investments 3,514 353 227 4,094 120 311 39 440 910 Acquisition-related fair value adjustments (610) (763) (427) (1,800) 4,217 6,117 5,017 3,737 19,088 Interest and (gain) loss on investments — (31) (10) (41) (260) 1,813 3,567 — 5,120 Litigation and investigation costs 3,042 4,029 21,548 28,619 2,260 (277) 8,335 5,452 15,770 Succession charges — — — — 2,210 5,346 505 1,315 9,376 Employee retention credit — (2,854) — (2,854) — — — — — Adjusted EBITDA $ 11,431 $ 20,646 $ 24,582 $ 56,657 $ 9,519 $ 18,427 $ 20,844 $ 24,997 $ 73,787
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Pro Forma Non-GAAP Adjusted Net Loss and Adjusted Gross Margin – Excluding Impact of M6 Product Lines 14 Three Months Ended Nine Months Ended Three Months Ended Year Ended (Unaudited, U.S. Dollars, in thousands) March 31, 2025 June 30, 2025 September 30, 2025 September 30, 2025 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 December 31, 2024 Net loss $ (20,201) $ (10,589) $ (23,232) $ (54,022) $ (32,501) $ (30,172) $ (23,930) $ (26,477) $ (113,079) Share-based compensation expense 6,469 7,824 7,181 21,474 8,689 9,864 6,443 7,086 32,082 Foreign exchange impact (1,044) (2,751) 571 (3,224) 1,577 851 (1,180) 3,090 4,338 SeaSpine merger-related costs 1,474 7,786 151 9,411 4,831 6,016 2,315 4,396 17,558 Restructuring costs and impairments related to M6 product lines 20,324 604 — 20,928 — — — — — Strategic investments 3,543 364 235 4,142 126 371 69 470 1,036 Acquisition-related fair value adjustments (610) (761) (427) (1,800) 4,217 6,117 5,017 3,737 19,088 Amortization/depreciation of acquired long -lived assets (15,693) 3,615 3,396 (8,680) 3,812 3,668 4,066 3,857 15,403 Litigation and investigation costs 3,042 4,029 21,548 28,619 2,260 (277) 8,335 5,452 15,770 Succession charges — — — — 2,210 5,346 505 1,315 9,376 Interest and (gain) loss on investments — (31) (10) (41) (260) 1,764 3,567 — 5,070 Employee retention credit — (3,616) — (3,616) — — — — — Long-term income tax rate adjustment 1,447 (1,915) (2,253) (2,720) 2,024 (213) (918) (1,225) (332) Adjusted net loss $ (1,249) $ 4,560 $ 7,160 $ 10,471 $ (3,015) $ 3,335 $ 4,289 $ 1,701 $ 6,310 Three Months Ended Nine Months Ended Three Months Ended Year Ended (Unaudited, U.S. Dollars, in thousands) March 31, 2025 June 30, 2025 September 30, 2025 September 30, 2025 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 December 31, 2024 Gross profit $ 131,633 $ 140,683 $ 146,534 $ 418,850 $ 124,360 $ 131,819 $ 132,862 $ 145,563 $ 534,604 Share-Based Compensation Expense 462 467 368 1,297 524 484 545 468 2,021 SeaSpine Merger-Related Costs 600 4,341 (438) 4,503 1,303 3,115 963 631 6,012 Restructuring costs and impairments related to M6 product lines (1) 1 — — — — — — — Strategic investments 13 43 1 57 65 63 32 32 192 Acquisition-related fair value adjustments — — — — 3,047 3,047 3,047 3,047 12,188 Amortization/depreciation of acquired long -lived assets 313 351 276 940 318 209 313 313 1,153 Adjusted gross profit $ 133,020 $ 145,887 $ 146,741 $ 425,648 $ 129,617 $ 138,737 $ 137,762 $ 150,054 $ 556,170 Adjusted gross margin as a percentage of net sales 70.3% 72.7% 72.1% 71.7% 71.2% 72.0% 72.0% 71.5% 71.7%
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For additional information, please contact: Julie Dewey, IRC Chief IR & Communications Officer juliedewey@orthofix.com 209-613-6945 www.Orthofix.com NASDAQ: OFIX 15