Orthofix Medical Reports $196.7M in Net Sales with Improved Gross Profit in Q1 2026

Orthofix Medical Inc. reported a net sales figure of $196.7 million for the first quarter of 2026, reflecting a 1.6% increase from $193.6 million in the same period of 2025. The company’s gross profit rose to $139.5 million, up 14.7% from $121.6 million year-over-year, resulting in a gross margin of 70.9%. Despite the increase in revenue, Orthofix recorded a net loss of $20.9 million, an improvement from the $53.1 million loss reported in the first quarter of 2025. The loss per share was $(0.52), compared to $(1.35) in the prior year.

The company experienced notable changes in its financial performance, particularly in cost management. The cost of sales decreased significantly to $57.2 million from $72.0 million, contributing to the improved gross profit. Additionally, sales, general, and administrative expenses increased slightly to $134.9 million from $133.0 million, primarily due to higher compensation and professional fees. Research and development expenses decreased to $15.3 million from $19.8 million, reflecting a strategic shift following the discontinuation of the M6 product lines.

In terms of strategic developments, Orthofix has focused on enhancing its product offerings and market presence. The company reported a 10.2% increase in net sales for its Global Limb Reconstruction segment, driven by demand for core fixation and reconstruction systems. The Global Spine segment remained stable, with net sales of $163.9 million, flat compared to the previous year. The company also noted that the discontinuation of the M6 product lines has allowed for a reallocation of resources towards more profitable growth opportunities.

Operationally, Orthofix's cash and cash equivalents increased to $120.3 million as of March 31, 2026, compared to $82.0 million at the end of 2025. The company reported a net cash used in operating activities of $17.6 million, a slight improvement from $18.4 million in the prior year. The company’s employee headcount increased to 40,382 shares outstanding, up from 39,834 at the end of 2025. The company continues to focus on expanding its market share and improving product adoption rates, particularly in the U.S. and international markets.

Looking ahead, Orthofix anticipates continued growth driven by its strategic initiatives and product enhancements. The company expects to leverage its improved financial position and operational efficiencies to enhance its market penetration. However, it acknowledges potential risks related to market conditions and regulatory approvals that could impact future performance. The company remains committed to maintaining compliance with its financial covenants and optimizing its capital structure as it navigates the evolving healthcare landscape.