Orthofix Medical Inc. Segments Disclosure
16. Business segment information
The Company's operations are managed through two reporting segments: Global Spine and Global Limb Reconstruction. These reporting segments represent the operating segments for which the , who is also the Chief Operating Decision Maker ("CODM"), reviews financial information and makes resource allocation decisions among businesses. The primary metric used by the CODM in managing the Company is adjusted earnings before interest, tax, depreciation, and amortization ("adjusted EBITDA", a non-GAAP financial measure). Adjusted EBITDA represents earnings before interest income (expense), income taxes, depreciation and amortization, and excludes the impact of share-based compensation, gains and losses related to changes in foreign exchange rates, charges related to the SeaSpine Merger and other strategic investments, restructuring costs and impairments related to the discontinuation of the M6 product lines, acquisition-related fair value adjustments, gains and/or losses on investments, litigation and investigation charges, succession charges, charges related to initial compliance with regulations set forth by the European Union Medical Device Regulation, and refunds associated with the employee retention credit established by the Coronavirus Aid, Relief, and Economic Security Act.
Corporate activities are comprised of operating expenses not directly identifiable within the two reporting segments, such as human resources, finance, legal, and information technology functions. The Company neither discretely allocates assets, other than goodwill, to its operating segments nor evaluates the operating segments using discrete asset information.
Global Spine
The Global Spine reporting segment offers two primary product categories: (i) Bone Growth Therapies and (ii) Spinal Implants, Biologics, and Enabling Technologies.
The Bone Growth Therapies product category manufactures, distributes, sells, and provides support services for market-leading devices used adjunctively in high-risk spinal fusion procedures and to treat both nonunion and acute fractures in the orthopedic space. These Class III medical devices are indicated as an adjunctive, noninvasive treatment to improve fusion success rates in the cervical and lumbar spine as well as a therapeutic treatment for non-spinal, appendicular fractures, treating both fresh or nonunion fractures. These products are sold almost exclusively in the U.S., using distributors and direct sales representatives to provide these devices to healthcare providers and their patients.
Spinal Implants, Biologics, and Enabling Technologies comprises (i) a broad portfolio of spine fixation implant products used in surgical procedures of the spine, (ii) one of the most comprehensive biologics portfolios in both the demineralized bone matrix and cellular allograft market segments, and (iii) image-guided surgical solutions to facilitate degenerative, minimally invasive, and complex surgical procedures. Spinal Implants, Biologics, and Enabling Technologies products are sold through a network of distributors and sales representatives to hospitals and healthcare providers on a global basis for Spinal Implants and Enabling Technologies, and primarily within the U.S. for Biologics.
Global Limb Reconstruction
The Global Limb Reconstruction reporting segment offers products and solutions for the underserved limb reconstruction market that encompasses four pillars: deformity correction, limb lengthening, complex fracture management, and limb preservation. This reporting segment specializes in the design, development, and marketing of external and internal fixation limb reconstruction products that are coupled with enabling digital technologies to serve the complete patient treatment pathway. The Company sells
these products worldwide through a global network of distributors and sales representatives to hospitals, healthcare organizations, and healthcare providers.
The table below presents net sales by major product category by reporting segment:
|
|
Year Ended December 31, |
|
|||||||||||||||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||||||||||||||
(U.S. Dollars, in thousands) |
|
Net Sales |
|
|
Percent of |
|
|
Net Sales |
|
|
Percent of |
|
|
Net Sales |
|
|
Percent of |
|
||||||
Bone Growth Therapies |
|
$ |
247,164 |
|
|
|
30.0 |
% |
|
$ |
233,405 |
|
|
|
29.2 |
% |
|
$ |
212,530 |
|
|
|
28.5 |
% |
Spinal Implants, Biologics, and Enabling Technologies |
|
|
440,491 |
|
|
|
53.6 |
% |
|
|
441,909 |
|
|
|
55.3 |
% |
|
|
418,789 |
|
|
|
56.1 |
% |
Global Spine |
|
|
687,655 |
|
|
|
83.6 |
% |
|
|
675,314 |
|
|
|
84.5 |
% |
|
|
631,319 |
|
|
|
84.6 |
% |
Global Limb Reconstruction |
|
|
134,657 |
|
|
|
16.4 |
% |
|
|
124,177 |
|
|
|
15.5 |
% |
|
|
115,322 |
|
|
|
15.4 |
% |
Net sales |
|
$ |
822,312 |
|
|
|
100.0 |
% |
|
$ |
799,491 |
|
|
|
100.0 |
% |
|
$ |
746,641 |
|
|
|
100.0 |
% |
The following table presents adjusted EBITDA, the primary metric used in managing the Company, by reporting segment:
|
|
Year Ended December 31, 2025 |
|
|||||||||
(U.S. Dollars, in thousands) |
|
Global Spine |
|
|
Global Limb Reconstruction |
|
|
Total |
|
|||
Segment revenues |
|
$ |
687,655 |
|
|
$ |
134,657 |
|
|
$ |
822,312 |
|
Less: |
|
|
|
|
|
|
|
|
|
|||
Non-GAAP Cost of sales |
|
|
177,585 |
|
|
|
53,128 |
|
|
|
230,713 |
|
Non-GAAP Sales, general, and administrative |
|
|
380,659 |
|
|
|
75,727 |
|
|
|
456,386 |
|
Non-GAAP Research and development |
|
|
45,570 |
|
|
|
11,542 |
|
|
|
57,112 |
|
Other segment expenses (benefits) |
|
|
10,447 |
|
|
|
(225 |
) |
|
|
10,222 |
|
Add: |
|
|
|
|
|
|
|
|
|
|||
Non-GAAP Depreciation, amortization, and share-based compensation expense |
|
|
39,200 |
|
|
|
11,772 |
|
|
|
50,972 |
|
Segment Adjusted EBITDA |
|
$ |
112,594 |
|
|
$ |
6,257 |
|
|
$ |
118,851 |
|
|
|
|
|
|
|
|
|
|
|
|||
Reconciling items: |
|
|
|
|
|
|
|
|
|
|||
Corporate operating expenses |
|
|
|
|
|
|
|
$ |
32,987 |
|
||
Interest expense, net |
|
|
|
|
|
|
|
|
17,488 |
|
||
Depreciation and amortization |
|
|
|
|
|
|
|
|
77,321 |
|
||
Share-based compensation expense |
|
|
|
|
|
|
|
|
28,688 |
|
||
Foreign exchange impact |
|
|
|
|
|
|
|
|
(2,910 |
) |
||
SeaSpine merger-related costs |
|
|
|
|
|
|
|
|
6,093 |
|
||
Restructuring costs and impairments related to M6 product lines |
|
|
|
|
|
|
|
|
17,305 |
|
||
Strategic investments |
|
|
|
|
|
|
|
|
4,915 |
|
||
Acquisition-related fair value adjustments |
|
|
|
|
|
|
|
|
(1,140 |
) |
||
Interest and loss on investments |
|
|
|
|
|
|
|
|
(48 |
) |
||
Litigation and investigation costs |
|
|
|
|
|
|
|
|
33,788 |
|
||
Employee retention credit |
|
|
|
|
|
|
|
|
(4,826 |
) |
||
Loss before income taxes |
|
|
|
|
|
|
|
$ |
(90,810 |
) |
||
|
|
Year Ended December 31, 2024 |
|
|||||||||
(U.S. Dollars, in thousands) |
|
Global Spine |
|
|
Global Limb Reconstruction |
|
|
Total |
|
|||
Segment Revenues |
|
$ |
675,314 |
|
|
$ |
124,177 |
|
|
$ |
799,491 |
|
Less: |
|
|
|
|
|
|
|
|
|
|||
Non-GAAP Cost of sales |
|
|
183,064 |
|
|
|
48,638 |
|
|
|
231,702 |
|
Non-GAAP Sales, general, and administrative |
|
|
368,817 |
|
|
|
70,185 |
|
|
|
439,002 |
|
Non-GAAP Research and development |
|
|
58,262 |
|
|
|
13,154 |
|
|
|
71,416 |
|
Other segment expenses (benefits) |
|
|
(22 |
) |
|
|
(54 |
) |
|
|
(76 |
) |
Add: |
|
|
|
|
|
|
|
|
|
|||
Non-GAAP Depreciation, amortization, and share-based compensation expense |
|
|
42,193 |
|
|
|
12,367 |
|
|
|
54,560 |
|
Segment Adjusted EBITDA |
|
$ |
107,386 |
|
|
$ |
4,621 |
|
|
$ |
112,007 |
|
|
|
|
|
|
|
|
|
|
|
|||
Reconciling items: |
|
|
|
|
|
|
|
|
|
|||
Corporate operating expenses |
|
|
|
|
|
|
|
$ |
44,591 |
|
||
Interest expense, net |
|
|
|
|
|
|
|
|
29,631 |
|
||
Depreciation and amortization |
|
|
|
|
|
|
|
|
60,061 |
|
||
Share-based compensation expense |
|
|
|
|
|
|
|
|
32,455 |
|
||
Foreign exchange impact |
|
|
|
|
|
|
|
|
4,395 |
|
||
SeaSpine merger-related costs |
|
|
|
|
|
|
|
|
14,485 |
|
||
Strategic investments |
|
|
|
|
|
|
|
|
910 |
|
||
Acquisition-related fair value adjustments |
|
|
|
|
|
|
|
|
19,088 |
|
||
Interest and loss on investments |
|
|
|
|
|
|
|
|
5,120 |
|
||
Litigation and investigation costs |
|
|
|
|
|
|
|
|
15,770 |
|
||
Succession charges |
|
|
|
|
|
|
|
|
9,376 |
|
||
Loss before income taxes |
|
|
|
|
|
|
|
$ |
(123,875 |
) |
||
|
|
Year Ended December 31, 2023 |
|
|||||||||
(U.S. Dollars, in thousands) |
|
Global Spine |
|
|
Global Limb Reconstruction |
|
|
Total |
|
|||
Segment Revenues |
|
$ |
631,319 |
|
|
$ |
115,322 |
|
|
$ |
746,641 |
|
Less: |
|
|
|
|
|
|
|
|
|
|||
Non-GAAP Cost of sales |
|
|
166,885 |
|
|
|
47,928 |
|
|
|
214,813 |
|
Non-GAAP Sales, general, and administrative |
|
|
355,827 |
|
|
|
67,815 |
|
|
|
423,642 |
|
Non-GAAP Research and development |
|
|
56,512 |
|
|
|
10,726 |
|
|
|
67,238 |
|
Other segment expenses (benefits) |
|
|
45 |
|
|
|
(82 |
) |
|
|
(37 |
) |
Add: |
|
|
|
|
|
|
|
|
|
|||
Non-GAAP Depreciation, amortization, and share-based compensation expense |
|
|
39,065 |
|
|
|
11,507 |
|
|
|
50,572 |
|
Segment Adjusted EBITDA |
|
$ |
91,115 |
|
|
$ |
442 |
|
|
$ |
91,557 |
|
|
|
|
|
|
|
|
|
|
|
|||
Reconciling items: |
|
|
|
|
|
|
|
|
|
|||
Corporate operating expenses |
|
|
|
|
|
|
|
$ |
45,272 |
|
||
Interest expense, net |
|
|
|
|
|
|
|
|
8,631 |
|
||
Depreciation and amortization |
|
|
|
|
|
|
|
|
53,063 |
|
||
Share-based compensation expense |
|
|
|
|
|
|
|
|
35,707 |
|
||
Foreign exchange impact |
|
|
|
|
|
|
|
|
(1,581 |
) |
||
SeaSpine merger-related costs |
|
|
|
|
|
|
|
|
36,577 |
|
||
Strategic investments |
|
|
|
|
|
|
|
|
2,272 |
|
||
Acquisition-related fair value adjustments |
|
|
|
|
|
|
|
|
33,393 |
|
||
Interest and loss on investments |
|
|
|
|
|
|
|
|
1,781 |
|
||
Litigation and investigation costs |
|
|
|
|
|
|
|
|
14,453 |
|
||
Succession charges |
|
|
|
|
|
|
|
|
1,176 |
|
||
Medical device regulation |
|
|
|
|
|
|
|
|
9,492 |
|
||
Loss before income taxes |
|
|
|
|
|
|
|
$ |
(148,679 |
) |
||
The following table presents depreciation, amortization, and related impairments by reporting segment:
|
|
Year Ended December 31, |
|
|||||||||
(U.S. Dollars, in thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Global Spine |
|
$ |
66,315 |
|
|
$ |
49,507 |
|
|
$ |
41,213 |
|
Global Limb Reconstruction |
|
|
8,629 |
|
|
|
7,748 |
|
|
|
7,158 |
|
Corporate |
|
|
2,377 |
|
|
|
2,806 |
|
|
|
4,692 |
|
Total |
|
$ |
77,321 |
|
|
$ |
60,061 |
|
|
$ |
53,063 |
|
Geographical information
The table below presents net sales by geographic destination for each reporting segment and for the consolidated Company:
|
|
Year Ended December 31, |
|
|||||||||
(U.S. Dollars, in thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Global Spine |
|
|
|
|
|
|
|
|
|
|||
U.S. |
|
$ |
645,139 |
|
|
$ |
639,196 |
|
|
$ |
591,937 |
|
International |
|
|
42,516 |
|
|
|
36,118 |
|
|
|
39,382 |
|
Total Global Spine |
|
|
687,655 |
|
|
|
675,314 |
|
|
|
631,319 |
|
|
|
|
|
|
|
|
|
|
|
|||
Global Limb Reconstruction |
|
|
|
|
|
|
|
|
|
|||
U.S. |
|
$ |
38,927 |
|
|
$ |
33,620 |
|
|
$ |
28,892 |
|
International |
|
|
95,730 |
|
|
|
90,557 |
|
|
|
86,430 |
|
Total Global Limb Reconstruction |
|
|
134,657 |
|
|
|
124,177 |
|
|
|
115,322 |
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated |
|
|
|
|
|
|
|
|
|
|||
U.S. |
|
$ |
684,066 |
|
|
$ |
672,816 |
|
|
$ |
620,829 |
|
International |
|
|
138,246 |
|
|
|
126,675 |
|
|
|
125,812 |
|
Net sales |
|
$ |
822,312 |
|
|
$ |
799,491 |
|
|
$ |
746,641 |
|
The following data includes net sales by geographic destination:
|
|
Year Ended December 31, |
|
|||||||||
(U.S. Dollars, in thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
U.S. |
|
$ |
684,066 |
|
|
$ |
672,816 |
|
|
$ |
620,829 |
|
Italy |
|
|
22,277 |
|
|
|
21,001 |
|
|
|
20,060 |
|
United Kingdom |
|
|
13,334 |
|
|
|
11,183 |
|
|
|
10,910 |
|
France |
|
|
11,959 |
|
|
|
13,385 |
|
|
|
11,096 |
|
Germany |
|
|
9,107 |
|
|
|
9,004 |
|
|
|
11,467 |
|
Brazil |
|
|
4,836 |
|
|
|
5,707 |
|
|
|
6,452 |
|
Others |
|
|
76,733 |
|
|
|
66,395 |
|
|
|
65,827 |
|
Net sales |
|
$ |
822,312 |
|
|
$ |
799,491 |
|
|
$ |
746,641 |
|
The following data includes property, plant, and equipment, net by geographic area:
(U.S. Dollars, in thousands) |
|
2025 |
|
|
2024 |
|
||
U.S. |
|
$ |
114,483 |
|
|
$ |
125,541 |
|
Italy |
|
|
9,893 |
|
|
|
9,472 |
|
Germany |
|
|
1,360 |
|
|
|
1,904 |
|
Others |
|
|
3,663 |
|
|
|
2,887 |
|
Total |
|
$ |
129,399 |
|
|
$ |
139,804 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Mar 5, 2024 | |
| 2022 | Mar 6, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 24, 2020 | |
| 2018 | Feb 25, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.