Rewey Asset Management, an investment management company, released its “RAM Smid Composite” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The composite increased 6.11% in Q2 2025, slightly trailing a 7.29% gain for the benchmark Russell 2500 Value Total Return Index. Year-to-date, the composite returned -1.29% vs. 1.03% for the benchmark. The firm views the quarter as in line and has confidence in the Smid value sector as it approaches the second half of 2025. In additio ...

Core Insights - Orthofix Medical reported Q2 2025 results that modestly exceeded expectations for both GAAP earnings and non-GAAP revenue, with GAAP revenue of $203.1 million surpassing the analyst estimate of $196.19 million [1][2] - The company narrowed its net loss per share to $(0.36), better than the expected $(0.49), indicating operational improvements despite ongoing losses [1][2] - The quarter showed positive free cash flow of $4.5 million and a pro forma adjusted gross margin of 72.7%, reflecting incremental progress against operational and commercial goals [1][10] Financial Performance - GAAP revenue for Q2 2025 was $203.1 million, a 2.3% increase from $198.6 million in Q2 2024 [2] - Pro forma revenue (non-GAAP) reached $200.7 million, up 4.1% year-over-year from $192.8 million [2] - Pro forma adjusted net income (non-GAAP) was $4.6 million, a 39.4% increase from $3.3 million in Q2 2024 [2] Business Overview - Orthofix Medical specializes in medical devices and biologics for spine fusion, complex fracture management, and bone healing, with a diverse product mix including spinal hardware and bone growth stimulators [3] - The company focuses on three strategic areas: new product development, optimizing distribution through mergers, and managing regulatory requirements [4] Segment Performance - U.S. Spine Fixation net sales increased by 5%, with procedure volumes rising 7% year-over-year [5] - The Bone Growth Therapies segment reported pro forma net sales of $62.6 million, up 5.8%, with the AccelStim 2.0 device receiving regulatory clearance [6] - Global Orthopedics sales climbed 8.9% on a pro forma basis, with U.S. Orthopedics net sales growing 28% compared to Q2 2024 [7] Margin and Cash Flow - Gross margin expanded by 0.7 percentage points to 72.7% on a pro forma non-GAAP basis, aided by cost management and the discontinuation of low-margin products [10] - Free cash flow was positive at $4.5 million, with cash and equivalents increasing to $68.7 million as of June 30, 2025, up from $60.5 million at the end of Q1 2025 [10] Future Outlook - The company reaffirmed its full-year 2025 outlook, projecting pro forma net sales between $808 million and $816 million, representing approximately 5.0% constant currency sales growth [12] - Adjusted EBITDA (non-GAAP) is forecasted at $82 million to $86 million, with expectations for positive free cash flow excluding one-time restructuring costs [12]

Financial Data and Key Metrics Changes - The company's pro forma net sales for Q2 2025 reached $200.7 million, reflecting a year-over-year constant currency growth of 4% [7][23] - Pro forma non-GAAP adjusted gross margin improved to 72.7%, an increase of approximately 140 basis points compared to 71.3% in 2024 [29] - Pro forma non-GAAP adjusted EBITDA was $20.6 million, representing 10.3% of net sales, with an EBITDA margin expansion of approximately 190 basis points compared to 8.4% in 2024 [30] Business Line Data and Key Metrics Changes - U.S. Spinal fixation net sales grew by 5.4%, with procedure volume increasing by 7% [9] - Bone Growth Therapies (BGT) achieved net sales of $62.6 million, reflecting a 6% growth, with fracture growth within BGT at 7% [26][27] - U.S. Orthopedics grew by 28%, driven by the launch of the TRULOC Elevate system [15][28] Market Data and Key Metrics Changes - The international orthopedics business declined by 2%, attributed to the absence of large NGO orders that occurred in 2024 [29] - The U.S. market for complex limb reconstruction is valued at $1.7 billion, with the company aiming to become a market leader in this category [15][62] Company Strategy and Development Direction - The company is focused on three strategic priorities: enhancing commercial execution, improving gross margins, and disciplined capital allocation [19] - Recent product launches, including the Verada spinal fixation system and TRULOC Elevate, are expected to drive future growth [12][15] - The company aims to leverage its differentiated technology and strong surgeon relationships to enhance market penetration [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive profitable growth and deliver long-term shareholder value [8][36] - The company anticipates that the distributor transition will create a more robust commercial organization, paving the way for future growth [10][48] - Management highlighted the strong demand for the 7D flash navigation system and its role in driving sales growth [11][56] Other Important Information - The company expects full-year pro forma net sales between $800 million and $816 million, excluding revenue from discontinued M6 product lines [32] - Positive free cash flow of $4.5 million was generated in Q2, with expectations for continued positive cash flow throughout 2025 [30][34] Q&A Session Summary Question: What is driving the growth in U.S. Orthopedics? - Management indicated that growth is driven by both deeper utilization among existing customers and the introduction of new products like TRULOC Elevate, which addresses the diabetic foot market [39][40] Question: Is there guidance for CapEx in the second half? - Management noted that while CapEx was lighter than anticipated in Q2, it is expected to be heavier in Q3, with overall spending flat compared to last year [42][44] Question: How is the U.S. spine distributor transition progressing? - Management expressed satisfaction with the transition's execution and anticipates accelerated growth from Q3 onwards due to these efforts [48][49] Question: What is the status of the Xcelsim 2.0 launch? - The product has received FDA approval and is planned for launch in the second half of the year, with expected contributions to growth [50][51] Question: What impact did pricing have in Q2? - Management confirmed that pricing remained stable, with the majority of growth differences attributed to a significant customer impacting the spine fixation business [58][68]

Orthofix (OFIX) came out with quarterly earnings of $0.13 per share, beating the Zacks Consensus Estimate of $0.04 per share. This compares to earnings of $0.05 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of +225.00%. A quarter ago, it was expected that this medical device maker would post a loss of $0.17 per share when it actually produced a loss of $0.08, delivering a surprise of +52.94%. Over the last four quarters, the ...

Q2 2025 Financial Performance - Pro Forma Net Sales reached $2007 million, a 35% year-over-year increase on a constant currency basis[18, 27, 28] - Non-GAAP Pro Forma Adjusted EBITDA was $206 million, representing 103% of pro forma net sales, compared to $166 million in Q2 2024[18, 30] - Non-GAAP Pro Forma Adjusted Gross Margin improved to 727%, compared to 713% in Q2 2024[18, 30] - Free Cash Flow was $45 million, showing continued positive year-over-year progress[18] Segment Performance - Bone Growth Therapies (BGT) net sales increased by 6% year-over-year[18, 23] - U S Spine Fixation net sales grew by 5% year-over-year, driven by a 7% increase in U S procedure volume[18, 24] - U S Orthopedics net sales saw a significant increase of 28% year-over-year, marking the fourth consecutive quarter of double-digit growth[18] Future Outlook - The company expects to be free cash flow positive for the full year 2025[36] - Full-year 2025 guidance includes Pro Forma Net Sales of $808 million to $816 million and Pro Forma Adjusted EBITDA of $82 million to $86 million[38]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 0-19961 ORTHOFIX MEDICAL INC. (Exact name of registrant as specified in its charter) Delaware 98-1340767 (State or other jurisdictio ...

Exhibit 99.1 News Release Orthofix Reports Second Quarter 2025 Financial Results LEWISVILLE, Texas — August 5, 2025 — Orthofix Medical Inc. (NASDAQ:OFIX), a leading global medical technology company, today reported its financial results for the second quarter ended June 30, 2025, and reaffirmed its full-year 2025 financial guidance. All pro forma measures contained within this release exclude the impact of the Company's decision to discontinue its M6® product lines. Highlights Second quarter 2025 net sales ...

Core Insights - Orthofix reported a quarterly loss of $0.08 per share, better than the Zacks Consensus Estimate of a loss of $0.17, and an improvement from a loss of $0.46 per share a year ago, indicating a 52.94% earnings surprise [1] - The company achieved revenues of $193.65 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.87% and showing a year-over-year increase from $188.61 million [2] - Orthofix shares have declined approximately 22.5% year-to-date, contrasting with the S&P 500's decline of 3.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.08, with projected revenues of $204 million, and for the current fiscal year, the EPS estimate is $0.62 on revenues of $823.9 million [7] - The estimate revisions trend for Orthofix is currently favorable, leading to a Zacks Rank 2 (Buy), suggesting that the shares are expected to outperform the market in the near future [6] Industry Context - The Medical - Instruments industry, to which Orthofix belongs, is currently ranked in the top 25% of over 250 Zacks industries, indicating a strong performance potential [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported pro forma net sales of $189.2 million, representing a year-over-year constant currency growth of 6% [7] - Adjusted EBITDA margin expanded, exceeding expectations, with pro forma adjusted EBITDA of $11.4 million, reflecting a margin expansion of approximately 200 basis points compared to Q1 2024 [28][29] - Total cash balance at the end of Q1 was $60.5 million, with expectations of positive free cash flow for the full year 2025, excluding restructuring charges related to the M6 product lines [29][37] Business Line Data and Key Metrics Changes - The U.S. Spinal Fixation business grew by 5.4% on a same sales day basis, with some short-term softness due to distributor transitions [10] - Bone Growth Therapies (BGT) net sales grew by 7% overall in Q1, with fracture sales growing by 8% [13][26] - The global orthopedic business experienced a strong start, delivering constant currency growth of 13% on a same sales day basis [14][27] Market Data and Key Metrics Changes - The U.S. Orthopedics segment grew by 12%, driven by strong performance in TRULOC and FITBOND products [15][27] - The international orthopedic business grew by 14% compared to the prior year, with variability expected due to the nature of stocking distributor and tender orders [28] Company Strategy and Development Direction - The company is focused on three strategic priorities: sharpening commercial execution, improving gross margins, and disciplined capital allocation [21] - The management is optimistic about the upcoming product launches, including the TRULOC Elevate TBT system, which addresses significant market opportunities in limb reconstruction [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive profitable growth and innovation while increasing long-term shareholder value [21][39] - The company is well-positioned to capitalize on recent product launch successes and maintain a healthy commercial pipeline for substantial revenue growth [20] Other Important Information - The company announced the discontinuation of the M6 artificial disc product lines, which had been a drag on profitability [30] - The anticipated annual exposure to tariffs is estimated to be approximately $3 million to $4 million, which is manageable and already contemplated in the guidance [34] Q&A Session Summary Question: Rationale for optimization within the Spine channel - Management indicated that the optimization is aimed at enhancing long-term growth and shareholder value, with a strong commercial pipeline ready to deliver substantial revenue growth starting later this year [43][44] Question: Maintaining adjusted EBITDA while lowering top line - The company has focused on making high-return investments and rightsizing shared services, which has contributed to maintaining adjusted EBITDA despite lower revenue [45][46] Question: Impact of selling days on growth - The company acknowledged that one less selling day in Q1 resulted in a headwind of over 1.5% on the growth rate [51] Question: Specific impacts of NGO business on segments - The NGO business will impact the international orthopedic segment, with no updates to long-term guidance at this time [63] Question: Details on AxleStim 2.0 functionality - AxleStim 2.0 integrates with the physician portal, allowing for patient monitoring and compliance, which is expected to enhance market penetration [69][70] Question: TRULOC system performance and data collection - The TRULOC system is in limited clinical release, with positive surgeon interest and ongoing data collection to demonstrate its benefits [73][74]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported pro forma net sales of $189.2 million, representing a year-over-year constant currency growth of 6% [6] - Adjusted EBITDA margin expanded, exceeding expectations, with pro forma adjusted EBITDA of $11.4 million, reflecting a margin expansion of approximately 200 basis points compared to the previous year [28][29] - The total cash balance at the end of Q1 was $60.5 million, with expectations for positive free cash flow for the full year 2025, excluding restructuring charges related to the M6 product lines [29][37] Business Line Data and Key Metrics Changes - The U.S. Spinal Fixation business grew by 5.4% on a same sales day basis, with procedure volume growth of 7% [8][26] - Bone Growth Therapies (BGT) net sales grew by 7% overall, with fracture sales growing by 8% [12][26] - The global orthopedic business achieved a constant currency growth of 13%, with U.S. Orthopedics growing by 12% [13][27] Market Data and Key Metrics Changes - The international orthopedic business grew by 14% compared to the prior year, with variability expected in growth rates due to the nature of the business [27] - The company anticipates a $5 million negative impact from U.S. funded NGO business compared to the full year 2024 [35] Company Strategy and Development Direction - The company is focused on three strategic priorities: sharpening commercial execution, improving gross margins, and disciplined capital allocation [21] - The management is optimistic about the transformation of the Spine business and the potential for long-term growth through partnerships with larger, more capital-efficient commercial partners [43] - The company is preparing for the full market launch of the TRULOC Elevate TBT system, which addresses significant market opportunities in limb reconstruction [15][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive profitable growth and innovation while increasing long-term shareholder value [21][39] - The company is optimistic about the commercial pipeline and expects substantial revenue growth starting later in the year [44] - Management acknowledged short-term challenges due to optimization efforts but emphasized the long-term benefits of these initiatives [43] Other Important Information - The company is discontinuing the M6 artificial disc product lines, which had been a drag on profitability, to focus on more profitable growth opportunities [30][31] - The anticipated one-time cash restructuring charges related to the M6 discontinuation are approximately $8 million [31] Q&A Session Summary Question: Rationale for optimization within the Spine channel - Management indicated that the optimization is aimed at enhancing long-term growth and shareholder value, with a strong balance sheet supporting this initiative [42][43] Question: Impact of selling days on growth - Management confirmed that the one less selling day in Q1 resulted in a headwind of over 1.5% on the growth rate [50] Question: Breakdown of updated guidance - Management clarified that the $5 million impact from U.S. funded NGO business and additional challenges in the spine and biologics segments contributed to the updated guidance [55][56]