Orthofix Medical Inc. reported fourth‑quarter 2025 revenue of $219.9 million, a 2.0 % year‑over‑year increase, and full‑year revenue of $822.3 million, up 2.9 % from the prior year. The company’s adjusted EBITDA for the quarter was $29.2 million, a 13.4 % margin, and $85.9 million for the year, a 10.6 % margin, reflecting continued profitability expansion after the discontinuation of its M6 product lines.
Segment performance drove the top‑line growth. Bone Growth Therapies generated $68.3 million in sales, while the Global Spine segment contributed $180.6 million. Gross margins were 71.1 % in the quarter and 68.8 % for the year, indicating stable cost control amid a shift toward higher‑margin products. Adjusted EBITDA margins expanded to 13.4 % in Q4 and 10.6 % for the full year, driven by a favorable product mix and disciplined operating leverage.
The company posted a non‑GAAP EPS of $0.26, beating analyst estimates of –$0.32 but missing the consensus estimate of $0.44. The earnings beat was largely a result of strong cost discipline, margin expansion, and a product mix that favored high‑margin offerings. Free cash flow for the quarter was $16.8 million, underscoring the company’s operational efficiency.
Orthofix raised its 2026 guidance to full‑year net sales of $850 million to $860 million and adjusted EBITDA of $95 million to $98 million, a revision that reflects confidence in the 7D FLASH navigation system, VIRATA spinal fixation, and TrueLok Elevate systems. The updated guidance signals an expectation of double‑digit growth and continued margin expansion in 2026.
Pre‑market trading showed a 3.02 % rise in Orthofix’s stock, driven by the EPS beat and robust free‑cash‑flow generation. Investors interpreted the results as evidence of disciplined execution and a strong pipeline of high‑margin products.
Management emphasized that the company’s focus on high‑growth segments and disciplined cost management has positioned Orthofix for continued profitability. CEO Jon Serbousek highlighted the company’s operational discipline and confidence in its innovation pipeline, reinforcing the outlook for sustained growth.
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