OFIX Orthofix Medical Inc

Record Results Reflect Strong Execution as Company Focuses on Most Profitable Growth Opportunities in Spine, Orthopedics and Bone Growth Therapies

Orthofix Medical Inc. (NASDAQ:OFIX), a leading global medical technology company, today reported its financial results for the fourth quarter and full-year ended December 31, 2024, and provided full-year 2025 financial guidance.

Highlights

• Record fourth quarter 2024 net sales of $215.7 million, an increase of 8% on a reported and constant currency basis compared to fourth quarter 2023
• U.S. Spine Fixation1 net sales growth of 12% compared to fourth quarter 2023, driven by distribution expansion and further penetration in existing accounts
• Record Bone Growth Therapies ("BGT") net sales of $63.9 million, representing growth of 9% and BGT Fracture net sales growth of 10% compared to fourth quarter 2023
• Record Global Orthopedics net sales of $35.8 million, representing constant currency growth of 18% and U.S. Orthopedics net sales growth of 21% compared to fourth quarter 2023
• Company entered into record number of 7D FLASH™ Navigation System placements for the full-year 2024
• Fourth quarter 2024 net loss of $(29.1) million; Non-GAAP adjusted EBITDA of $23.9 million, an increase of $4.3 million, with adjusted EBITDA margin expanding approximately 130 basis points compared to fourth quarter 2023
• Free cash flow of $15.2 million in fourth quarter 2024, a significant improvement in cash usage compared to previous quarters
• Company increases long-term net sales compound annual growth rate ("CAGR") target to 6.5% to 7.5% from previous net sales CAGR target of 6% to 7%

Fourth quarter 2024 net sales were $215.7 million, an increase of 8% on a reported and constant currency basis. Net loss was $(29.1) million and earnings per share ("EPS") was $(0.75) on a reported basis, representing a decline of 27% when compared to the same prior year period. Non-GAAP adjusted EBITDA was $23.9 million for the fourth quarter, representing 22% growth compared to the fourth quarter of 2023.

Full-year 2024 net sales were $799.5 million, an increase of 7% on a reported and constant currency basis. Net loss was $(126.0) million and EPS was $(3.30), representing an improvement of 20% when compared to the same prior year period. Non-GAAP adjusted EBITDA was $67.4 million for the full-year, representing 46% growth compared to the full year of 2023.

“We are pleased with the performance of the Orthofix team to serve our surgeons and patients and successfully execute our plans throughout 2024,” said Massimo Calafiore, President and CEO. “Our fourth quarter results reflect outstanding performance across all three major product lines, providing further evidence that Orthofix’s balanced and complementary product mix offers a differentiated advantage across multiple markets. We enter 2025 with great momentum as two integrated organizations. The entire team remains focused on executing our priorities, and I look forward to leveraging our unique portfolio platform to drive value creation through profitable growth in 2025 and beyond."

Financial Results Overview

Fourth Quarter 2024 Net Sales and Financial Results

The following table provides net sales by major product category by reporting segment:

 

 

Three Months Ended December 31,

 

(Unaudited, U.S. Dollars, in millions)

 

2024

 

 

2023

 

 

Change

 

 

Constant Currency Change

 

Bone Growth Therapies

 

$

63.9

 

 

$

58.8

 

 

 

8.6

%

 

 

8.6

%

Spinal Implants, Biologics, and Enabling Technologies

 

 

116.0

 

 

 

111.0

 

 

 

4.5

%

 

 

4.5

%

Global Spine

 

 

179.9

 

 

 

169.8

 

 

 

5.9

%

 

 

6.0

%

Global Orthopedics

 

 

35.8

 

 

 

30.6

 

 

 

16.8

%

 

 

18.1

%

Net sales

 

$

215.7

 

 

$

200.4

 

 

 

7.6

%

 

 

7.8

%

Gross margins were 69.0% for the quarter and were 71.1% on a non-GAAP adjusted basis.

Net loss was $(29.1) million, or $(0.75) per share, compared to net loss of $(22.2) million, or $(0.59) per share in the prior year period. Non-GAAP adjusted EBITDA was $23.9 million, or 11.1% of net sales, compared to non-GAAP adjusted EBITDA of $19.6 million, or 9.8% of net sales, in the prior year period.

Full-Year 2024 Net Sales and Financial Results

The following table provides net sales by major product category by reporting segment:

 

 

Year Ended December 31,

 

(Unaudited, U.S. Dollars, in millions)

 

2024

 

 

2023

 

 

Change

 

 

Constant Currency Change

 

Bone Growth Therapies

 

$

233.4

 

 

$

212.5

 

 

 

9.8

%

 

 

9.8

%

Spinal Implants, Biologics, and Enabling Technologies

 

 

441.9

 

 

 

418.8

 

 

 

5.5

%

 

 

5.5

%

Global Spine

 

 

675.3

 

 

 

631.3

 

 

 

7.0

%

 

 

7.0

%

Global Orthopedics

 

 

124.2

 

 

 

115.3

 

 

 

7.7

%

 

 

7.9

%

Net sales

 

$

799.5

 

 

$

746.6

 

 

 

7.1

%

 

 

7.1

%

Gross margins were 68.3% for the year and were 71.0% on a non-GAAP adjusted basis.

Net loss was $(126.0) million, or $(3.30) per share, compared to net loss of $(151.4) million, or $(4.12) per share in the prior year period. Non-GAAP adjusted EBITDA was $67.4 million, or 8.4% of net sales, compared to non-GAAP adjusted EBITDA of $46.3 million, or 6.2% of net sales, in the prior year period.

Liquidity

Cash, cash equivalents, and restricted cash on December 31, 2024 totaled $85.7 million compared to $37.8 million on December 31, 2023.

M6 Artificial Disc Update

Consistent with Orthofix’s strategic focus on spinal fixation and deformity correction, the Company has decided to discontinue its M6-C™ artificial cervical disc and M6-L™ artificial lumbar disc product lines and allocate associated resources and investment to more profitable growth opportunities in those focus areas. Global net sales for the M6-C artificial cervical and M6-L artificial lumbar discs were $23.4 million in 2024. Orthofix intends to fulfill all requirements related to post-market surveillance activities and meet its obligations with respect to premarket approval of M6 devices, including completion of the IDE study in the United States.

Business Outlook

The Company is providing full-year 2025 guidance as follows:

• Net sales expected to range between $818 million to $826 million, excluding sales from the discontinued M6 artificial disc product lines and including a negative impact from foreign currency of approximately $4 million, or 50 basis points, on a reported basis, as compared to the full-year 2024. The Company’s expected net sales represent implied constant currency growth of 6.5% year-over-year at the midpoint of the range. This guidance range is based on the current foreign currency exchange rates and does not take into account any additional potential exchange rate changes that may occur this year.
• Non-GAAP adjusted EBITDA expected to be $82 million to $86 million. This range includes the anticipated impact from the discontinuation of the M6 product lines.
• Positive free cash flow expected for full-year 2025, excluding the impact of restructuring charges related to the discontinuation of the M6-C artificial cervical and M6-L artificial lumbar disc product lines.
• The Company is also increasing its long-term net sales CAGR target to 6.5% to 7.5% from the previous net sales CAGR target of 6% to 7%, reflecting the discontinuation of the M6 artificial disc product lines.

The Company will provide a full update on the accounting treatment and financial impact for the discontinuation of the M6 product lines on its first quarter 2025 earnings call.

An investor presentation for the Company's fourth quarter and full-year 2024 financial results is available in the "Events & Presentations" section of the Orthofix investor relations website at ir.orthofix.com.

Conference Call

Orthofix will host a conference call today at 8:30 AM Eastern time to discuss the Company's financial results for the quarter ended December 31, 2024. Interested parties may access the conference call by dialing (888) 596-4144 in the U.S., and (646) 968-2525 in all other locations, and referencing the access code 5184023. A webcast and replay of the conference call may be accessed in the "Events & Presentations" section of the Orthofix investor relations website at ir.orthofix.com.

Internet Posting of Information

Orthofix routinely posts information that may be important to investors in the “Investor Relations” section of its website at www.orthofix.com. The Company encourages investors and potential investors to consult the Orthofix website regularly for important information about Orthofix.

About Orthofix

Orthofix is a global medical technology company headquartered in Lewisville, Texas. By providing medical technologies that heal musculoskeletal pathologies, we deliver exceptional experiences and life-changing solutions to patients around the world. Orthofix offers a comprehensive portfolio of spinal hardware, bone growth therapies, specialized orthopedic solutions, biologics and enabling technologies, including the 7D FLASH™ navigation system. To learn more, visit Orthofix.com and follow on LinkedIn.

Forward-Looking Statements

This communication contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, relating to our business and financial outlook, which are based on our current beliefs, assumptions, intentions, plans, expectations, estimates, forecasts and projections. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “projects,” “intends,” “predicts,” “potential,” or “continue” or other comparable terminology. Forward-looking statements in this communication include the Company's expectations regarding net sales, adjusted EBITDA, and free cash flow for the year ended December 31, 2025. Forward-looking statements are not guarantees of our future performance, are based on our current expectations and assumptions regarding our business, the economy and other future conditions, and are subject to risks, uncertainties and changes in circumstances that are difficult to predict, including the risks described in Part I, Item 1A under the heading Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024. Factors that could cause future results to differ from those expressed by forward-looking statements include, but are not limited to, (i) our ability to maintain operations to support our customers and patients in the near-term and to capitalize on future growth opportunities, (ii) risks associated with acceptance of surgical products and procedures by surgeons and hospitals, (iii) development and acceptance of new products or product enhancements, (iv) clinical and statistical verification of the benefits achieved via the use of our products, (v) our ability to adequately manage inventory, (vi) our ability to recruit and retain management and key personnel, (vii) our success in defending legal proceedings brought against us, and (viii) the other risks and uncertainties more fully described in our periodic filings with the Securities and Exchange Commission (the “SEC”). As a result of these various risks, our actual outcomes and results may differ materially from those expressed in these forward-looking statements.

Further, any forward-looking statement speaks only as of the date hereof, unless it is specifically otherwise stated to be made as of a different date. We undertake no obligation to update, and expressly disclaim any duty to update, our forward-looking statements, whether as a result of circumstances or events that arise after the date hereof, new information, or otherwise, except as required by law.

The Company is unable to provide expectations of GAAP net income (loss) before income taxes, the closest comparable GAAP measures to adjusted EBITDA (which is a non-GAAP measure), on a forward-looking basis because the Company is unable to predict, without unreasonable efforts, the ultimate outcome of matters (including acquisition-related expenses, accounting fair value adjustments, and other such items) that will determine the quantitative amount of the items excluded in calculating adjusted EBITDA, which items are further described in the reconciliation tables and related descriptions below. These items are uncertain, depend on various factors, and could be material to the Company’s results computed in accordance with GAAP.

ORTHOFIX MEDICAL INC.

Condensed Consolidated Statements of Operations

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

(U.S. Dollars, in thousands, except share and per share data)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(Unaudited)

 

 

 

 

Net sales

 

$

215,657

 

 

$

200,415

 

 

$

799,491

 

 

$

746,641

 

Cost of sales

 

 

66,816

 

 

 

63,785

 

 

 

253,606

 

 

 

260,368

 

Gross profit

 

 

148,841

 

 

 

136,630

 

 

 

545,885

 

 

 

486,273

 

Sales, general, and administrative

 

 

136,479

 

 

 

132,284

 

 

 

532,525

 

 

 

530,395

 

Research and development

 

 

18,807

 

 

 

18,941

 

 

 

73,643

 

 

 

80,231

 

Acquisition-related amortization and remeasurement

 

 

5,031

 

 

 

3,720

 

 

 

24,336

 

 

 

14,757

 

Operating loss

 

 

(11,476

)

 

 

(18,315

)

 

 

(84,619

)

 

 

(139,110

)

Interest expense, net

 

 

(14,920

)

 

 

(4,500

)

 

 

(29,631

)

 

 

(8,631

)

Other income (expense), net

 

 

(3,315

)

 

 

766

 

 

 

(9,625

)

 

 

(938

)

Loss before income taxes

 

 

(29,711

)

 

 

(22,049

)

 

 

(123,875

)

 

 

(148,679

)

Income tax benefit (expense)

 

 

564

 

 

 

(125

)

 

 

(2,122

)

 

 

(2,716

)

Net loss

 

$

(29,147

)

 

$

(22,174

)

 

$

(125,997

)

 

$

(151,395

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.75

)

 

$

(0.59

)

 

$

(3.30

)

 

$

(4.12

)

Diluted

 

 

(0.75

)

 

 

(0.59

)

 

 

(3.30

)

 

 

(4.12

)

Weighted average number of common shares (in millions):

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

38.7

 

 

 

37.3

 

 

 

38.1

 

 

 

36.7

 

Diluted

 

 

38.7

 

 

 

37.3

 

 

 

38.1

 

 

 

36.7

 

ORTHOFIX MEDICAL INC.

Condensed Consolidated Balance Sheets

(U.S. Dollars, in thousands, except par value data)

 

December 31, 2024

 

 

December 31, 2023

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

83,238

 

 

$

33,107

 

Restricted cash

 

 

2,500

 

 

 

4,650

 

Accounts receivable, net of allowances of $7,418 and $7,130, respectively

 

 

134,713

 

 

 

128,098

 

Inventories

 

 

189,452

 

 

 

222,166

 

Prepaid expenses and other current assets

 

 

23,382

 

 

 

32,422

 

Total current assets

 

 

433,285

 

 

 

420,443

 

Property, plant, and equipment, net

 

 

139,804

 

 

 

159,060

 

Intangible assets, net

 

 

98,803

 

 

 

117,490

 

Goodwill

 

 

194,934

 

 

 

194,934

 

Other long-term assets

 

 

26,468

 

 

 

33,388

 

Total assets

 

$

893,294

 

 

$

925,315

 

Liabilities and shareholders’ equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

48,803

 

 

$

58,357

 

Current portion of long-term debt

 

 

—

 

 

 

1,250

 

Current portion of finance lease liability

 

 

755

 

 

 

708

 

Other current liabilities

 

 

119,070

 

 

 

104,908

 

Total current liabilities

 

 

168,628

 

 

 

165,223

 

Long-term debt

 

 

157,015

 

 

 

93,107

 

Long-term portion of finance lease liability

 

 

17,835

 

 

 

18,532

 

Other long-term liabilities

 

 

46,692

 

 

 

49,723

 

Total liabilities

 

 

390,170

 

 

 

326,585

 

Contingencies

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

Common shares $0.10 par value; 100,000 shares authorized; 38,486 and 37,165 issued and outstanding as of December 31, 2024 and 2023, respectively

 

 

3,849

 

 

 

3,717

 

Additional paid-in capital

 

 

779,718

 

 

 

746,450

 

Accumulated deficit

 

 

(276,141

)

 

 

(150,144

)

Accumulated other comprehensive loss

 

 

(4,302

)

 

 

(1,293

)

Total shareholders’ equity

 

 

503,124

 

 

 

598,730

 

Total liabilities and shareholders’ equity

 

$

893,294

 

 

$

925,315

 

ORTHOFIX MEDICAL INC.

Non-GAAP Financial Measures

The following tables present reconciliations of various financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”), to various non-GAAP financial measures that exclude (or in the case of free cash flow, include) items specified in the tables. The GAAP measures shown in the tables below represent the most comparable GAAP measure to the applicable non-GAAP measure(s) shown in the table. For further information regarding the nature of these exclusions, why the Company believes that these non-GAAP financial measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the Company's Current Report on Form 8-K regarding this press release filed today with the SEC available on the SEC's website at www.sec.gov and on the “Investors” page of the Company’s website at www.orthofix.com.

Adjusted Gross Profit and Adjusted Gross Margin

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

(Unaudited, U.S. Dollars, in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Gross profit

 

$

148,841

 

 

$

136,630

 

 

$

545,885

 

 

$

486,273

 

Share-based compensation expense

 

 

477

 

 

 

462

 

 

 

2,068

 

 

 

1,878

 

SeaSpine merger-related costs

 

 

660

 

 

 

214

 

 

 

6,239

 

 

 

6,861

 

Strategic investments

 

 

32

 

 

 

125

 

 

 

192

 

 

 

389

 

Acquisition-related fair value adjustments

 

 

3,047

 

 

 

7,037

 

 

 

12,188

 

 

 

36,044

 

Amortization/depreciation of acquired long-lived assets

 

 

313

 

 

 

372

 

 

 

1,153

 

 

 

1,196

 

Medical device regulation

 

 

—

 

 

 

(72

)

 

 

—

 

 

 

604

 

Adjusted gross profit

 

$

153,370

 

 

$

144,768

 

 

$

567,725

 

 

$

533,245

 

Adjusted gross margin

 

 

71.1

%

 

 

72.2

%

 

 

71.0

%

 

 

71.4

%

Adjusted EBITDA

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

(Unaudited, U.S. Dollars, in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net loss

 

$

(29,147

)

 

$

(22,174

)

 

$

(125,997

)

 

$

(151,395

)

Income tax expense (benefit)

 

 

(564

)

 

 

125

 

 

 

2,122

 

 

 

2,716

 

Interest expense, net

 

 

14,920

 

 

 

4,500

 

 

 

29,631

 

 

 

8,631

 

Depreciation and amortization

 

 

15,994

 

 

 

13,969

 

 

 

60,061

 

 

 

53,063

 

Share-based compensation expense

 

 

7,165

 

 

 

3,167

 

 

 

32,455

 

 

 

35,707

 

Foreign exchange impact

 

 

3,133

 

 

 

(2,638

)

 

 

4,395

 

 

 

(1,581

)

SeaSpine merger-related costs

 

 

1,493

 

 

 

2,261

 

 

 

14,485

 

 

 

36,577

 

Strategic investments

 

 

440

 

 

 

389

 

 

 

910

 

 

 

2,272

 

Acquisition-related fair value adjustments

 

 

3,737

 

 

 

6,486

 

 

 

19,088

 

 

 

33,393

 

(Gain) loss on investments

 

 

—

 

 

 

1,781

 

 

 

5,120

 

 

 

1,781

 

Litigation and investigation costs

 

 

5,452

 

 

 

8,842

 

 

 

15,770

 

 

 

14,453

 

Succession charges

 

 

1,315

 

 

 

1,006

 

 

 

9,376

 

 

 

1,176

 

Medical device regulation

 

 

—

 

 

 

1,927

 

 

 

—

 

 

 

9,492

 

Adjusted EBITDA

 

$

23,938

 

 

$

19,641

 

 

$

67,416

 

 

$

46,285

 

Adjusted EBITDA as % of net sales

 

 

11.1

%

 

 

9.8

%

 

 

8.4

%

 

 

6.2

%

Adjusted Net Income

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

(Unaudited, U.S. Dollars, in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net loss

 

$

(29,147

)

 

$

(22,174

)

 

$

(125,997

)

 

$

(151,395

)

Share-based compensation expense

 

 

7,165

 

 

 

3,167

 

 

 

32,455

 

 

 

35,707

 

Foreign exchange impact

 

 

3,132

 

 

 

(2,637

)

 

 

4,395

 

 

 

(1,581

)

SeaSpine merger-related costs

 

 

4,430

 

 

 

2,029

 

 

 

17,864

 

 

 

37,609

 

Strategic investments

 

 

470

 

 

 

405

 

 

 

1,036

 

 

 

2,037

 

Acquisition-related fair value adjustments

 

 

3,737

 

 

 

6,486

 

 

 

19,088

 

 

 

33,393

 

Amortization/depreciation of acquired long-lived assets

 

 

4,837

 

 

 

5,023

 

 

 

19,323

 

 

 

19,994

 

Litigation and investigation costs

 

 

5,452

 

 

 

8,842

 

 

 

15,770

 

 

 

14,453

 

Succession charges

 

 

1,315

 

 

 

1,007

 

 

 

9,376

 

 

 

1,176

 

Medical device regulation

 

 

—

 

 

 

1,954

 

 

 

—

 

 

 

9,493

 

Interest and loss on investments

 

 

—

 

 

 

1,759

 

 

 

5,070

 

 

 

2,098

 

Long-term income tax rate adjustment

 

 

(796

)

 

 

(1,551

)

 

 

1,981

 

 

 

1,120

 

Adjusted net income

 

$

595

 

 

$

4,310

 

 

$

361

 

 

$

4,104

 

Cash Flow and Free Cash Flow

 

 

Year Ended December 31,

 

(U.S. Dollars, in thousands)

 

2024

 

 

2023

 

Net cash provided by (used in) operating activities

 

$

25,790

 

 

$

(45,753

)

Net cash used in investing activities

 

 

(27,580

)

 

 

(33,131

)

Net cash provided by financing activities

 

 

50,709

 

 

 

65,322

 

Effect of exchange rate changes on cash

 

 

(938

)

 

 

619

 

Net change in cash, cash equivalents, and restricted cash

 

$

47,981

 

 

$

(12,943

)

 

 

Year Ended December 31,

 

(Unaudited, U.S. Dollars, in thousands)

 

2024

 

 

2023

 

Net cash from operating activities

 

$

25,790

 

 

$

(45,753

)

Capital expenditures

 

 

(34,876

)

 

 

(62,050

)

Free cash flow

 

$

(9,086

)

 

$

(107,803

)

Reconciliation of Non-GAAP Financial Measures to Reported Operating Expenses

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

(Unaudited, U.S. Dollars, in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Sales, general, and administrative

 

$

136,479

 

 

$

132,284

 

 

$

532,525

 

 

$

530,395

 

Reconciling items impacting sales, general, and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

Strategic investments

 

 

(4,073

)

 

 

(1,808

)

 

 

(11,674

)

 

 

(28,523

)

Amortization/depreciation of acquired long-lived assets

 

 

(183

)

 

 

(381

)

 

 

(734

)

 

 

(1,393

)

Litigation and investigation costs

 

 

(5,451

)

 

 

(8,842

)

 

 

(15,769

)

 

 

(14,453

)

Succession charges

 

 

(160

)

 

 

(1,007

)

 

 

(8,221

)

 

 

(1,176

)

Medical device regulation

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(11

)

Sales, general, and administrative expense, as adjusted

 

$

126,612

 

 

$

120,246

 

 

$

496,127

 

 

$

484,839

 

Sales, general, and administrative expense as a percentage of net sales, as adjusted

 

 

58.7

%

 

 

60.0

%

 

 

62.1

%

 

 

64.9

%

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

(Unaudited, U.S. Dollars, in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Research and development expense, as reported

 

$

18,807

 

 

$

18,941

 

 

$

73,643

 

 

$

80,231

 

Reconciling items impacting research and development:

 

 

 

 

 

 

 

 

 

 

 

 

Strategic investments

 

 

(135

)

 

 

(331

)

 

 

(780

)

 

 

(3,061

)

Medical device regulation

 

 

—

 

 

 

(2,029

)

 

 

—

 

 

 

(8,883

)

Succession charges

 

 

(1,155

)

 

 

—

 

 

 

(1,155

)

 

 

-

 

Research and development expense, as adjusted

 

$

17,517

 

 

$

16,581

 

 

$

71,708

 

 

$

68,287

 

Research and development expense as a percentage of net sales, as adjusted

 

 

8.1

%

 

 

8.3

%

 

 

9.0

%

 

 

9.1

%

Reconciliations of Non-GAAP Financial Measures to Reported Non-Operating (Income) Expense

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

(Unaudited, U.S. Dollars, in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Non-operating expense

 

$

18,235

 

 

$

3,734

 

 

$

39,256

 

 

$

9,569

 

Reconciling items impacting non-operating expense:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange impact

 

 

(3,133

)

 

 

2,637

 

 

 

(4,396

)

 

 

1,580

 

Strategic investments

 

 

—

 

 

 

19

 

 

 

—

 

 

 

(876

)

Interest and loss on investments

 

 

—

 

 

 

(1,759

)

 

 

(5,070

)

 

 

(2,098

)

Non-operating expense, as adjusted

 

$

15,102

 

 

$

4,631

 

 

$

29,790

 

 

$

8,175

 

Non-operating expense as a percentage of net sales, as adjusted

 

 

7.0

%

 

 

2.3

%

 

 

3.7

%

 

 

1.1

%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250225486621/en/

Investors and Media Julie Dewey, IRC Chief Investor Relations & Communications Officer JulieDewey@Orthofix.com 209.613.6945