Orthofix Medical Reports 2.7% Net Sales Increase to $193.6 Million in Q1 2025

Orthofix Medical Inc. reported a net sales increase of 2.7% for the first quarter of 2025, totaling $193.6 million, compared to $188.6 million in the same period of 2024. The company's gross profit for the quarter was $121.6 million, resulting in a gross margin of 62.8%, down from 67.5% year-over-year. The net loss for the quarter was $53.1 million, or $(1.35) per share, compared to a net loss of $36.0 million, or $(0.95) per share, in the prior year. The increase in net loss was attributed to higher costs of sales, which rose to $72.0 million from $61.4 million, and significant acquisition-related amortization and impairment charges.

In terms of operational performance, Orthofix's Global Spine segment generated $163.8 million in sales, a 1.6% increase from the previous year, while the Global Orthopedics segment saw a more substantial growth of 9.1%, reaching $29.8 million. The company noted a 4.9% increase in Bone Growth Therapies sales, driven by improved order volumes and pricing. However, the discontinuation of the M6 artificial disc product lines negatively impacted sales, contributing to a decline in related revenues.

Strategically, Orthofix has made significant organizational changes, including the discontinuation of the M6 product lines to focus on more profitable opportunities. The company also received 510(k) clearance and CE Mark for its TrueLok™ Elevate Transverse Bone Transport System, marking a notable product launch. Additionally, the company is in negotiations with a distributor regarding a potential acquisition, which reflects its ongoing efforts to expand its market presence.

As of March 31, 2025, Orthofix's total assets were valued at $823.1 million, down from $893.3 million at the end of 2024. The company reported a decrease in cash and cash equivalents to $57.9 million from $83.2 million. The total liabilities also decreased to $364.9 million from $390.2 million. The company’s employee headcount remained stable, and it continues to focus on improving operational efficiencies and market penetration.

Looking ahead, Orthofix anticipates continued growth in its core product lines and is focused on leveraging cross-selling opportunities from its merger with SeaSpine Holdings Corporation. The company expects to maintain compliance with its financial covenants under its new credit agreement and believes its cash reserves will be sufficient to meet anticipated cash requirements. However, the company acknowledges potential risks and uncertainties that could impact its financial performance, including market conditions and ongoing litigation.