Orthofix(US:OFIX) Businesswire·2026-02-24 12:00Core Insights - Orthofix Medical Inc. reported strong financial results for Q4 and full-year 2025, highlighting significant operational progress and robust free cash flow generation [1][2] Financial Results Overview Fourth Quarter 2025 - Reported net sales of $219.9 million, a 2% increase compared to Q4 2024, with pro forma net sales of $218.6 million, reflecting a 3.1% increase on a constant currency basis [1][2] - Non-GAAP pro forma adjusted EBITDA was $29.2 million, representing a margin of 13.4%, an increase from 11.1% in Q4 2024 [2][3] - The company achieved a free cash flow of $16.8 million in Q4 2025, contributing to a positive full-year free cash flow of $3.1 million, excluding M6-related restructuring charges [1][2] Full-Year 2025 - Total reported net sales reached $822.3 million, a 2.9% increase from 2024, with pro forma net sales of $811.9 million, indicating a 4.1% increase on a constant currency basis [2][3] - Gross margins were reported at 68.8%, with non-GAAP pro forma adjusted gross margins at 71.6% [2][3] - The net loss for the year was $(92.2) million, or $(2.33) per share, an improvement from a net loss of $(126.0) million in 2024 [2][3] Business Outlook - For 2026, the company expects net sales to range between $850 million to $860 million, indicating a year-over-year pro forma constant currency growth of approximately 5.5% [2][3] - Non-GAAP adjusted EBITDA is projected to be between $95 million to $98 million, reflecting a margin expansion of 70 basis points compared to 2025 [2][3] - The company aims for positive free cash flow in 2026, excluding potential legal settlements [2][3] Three-Year Financial Targets - Orthofix updated its three-year financial targets, projecting positive free cash flow generation from 2026 through 2028 and mid-teens non-GAAP adjusted EBITDA as a percentage of net sales by 2028 [2][3] - The company anticipates a compound annual growth rate (CAGR) of 6.5% to 7.5% in net sales from 2026 to 2028 [2][3]