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]