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what it is
Orthofix sells spine and orthopedic devices that help bones heal, but the business still loses money despite $822 million in sales.
how it gets paid
Last year Orthofix Medical made $822M in revenue. Spinal Implants was the main engine at $0.30B, or 37% of sales.
why it's growing
Revenue grew 2.9% last year. The number that mattered was 68.0% gross margin because it tells you the products are not the issue.
what just happened
The quarter showed $602M of revenue, but the number that stuck was a trailing EPS of -$2.28.
At a glance
B balance sheet — gets the job done, barely
20/100 earnings predictability — expect surprises
-$3.30 fy2024 eps est
$2B fy2026 rev est
9.9% operating margin
xvary composite: 59/100 — below average
What they do
Orthofix sells spine and orthopedic devices that help bones heal, but the business still loses money despite $822 million in sales.
Orthofix wins by selling into ugly, specialized procedures where surgeons care more about what works than who has the best slogan. It has 1,616 employees and products across spine, bone growth, and limb reconstruction, which gives you breadth in a market where hospitals prefer fewer vendors. That said, moat is not magic here. A 68.0% gross margin means the products are valuable, but a -9.9% operating margin means the company still has not turned that value into profit.
How they make money
$822M
annual revenue · their business grew +2.9% last year
Spinal Implants
$0.30B
Bone Growth Therapies
$0.18B
Biologics
$0.16B
Specialized Orthopedics
$0.18B
The products that matter
spine surgery hardware
Spinal Implants
~$493M · largest disclosed segment here
This business generates roughly $493M in the data shown here, but the end market only grows about 2–3% a year. That means you need share gains or cleaner execution, not just industry tailwinds.
core procedure exposure
fracture healing devices
Bone Growth Stimulators
~$329M · #2 market position
This roughly $329M segment holds the #2 spot in its market, but that market also grows only about 2–3% a year. Second place helps. It does not excuse a $92.2M annual net loss.
#2 position
Key numbers
$822M
annual revenue
This is a real company with real scale. The problem is not demand. The problem is what happens after the sale.
9.9%
operating margin
Operating margin means profit after running the business. In plain English, Orthofix still burns money on each dollar of sales.
68.0%
gross margin
Gross margin means product profit before overhead. In plain English, the devices are attractive. The cost structure is the mess.
$200M
long-term debt
That is 30% of capital per, which limits your room for error while losses continue.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 2 — safer than 80% of stocks
- price stability 30 / 100
- long-term debt $200M (30% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for OFIX right now.
source: institutional data · return history unavailable
What just happened
missed estimates
The quarter showed $602M of revenue, but the number that stuck was a trailing EPS of -$2.28.
Revenue jumped 193% vs. prior year on the reported quarter data, but still shows a full-year 2024 EPS estimate of -$3.30. Gross margin was 68.0%, so the products make money before overhead. The overhead is still eating the business.
$602M
revenue
$2.28
eps
68.0%
gross margin
the number that mattered
The number that mattered was 68.0% gross margin because it tells you the products are not the issue. The company structure is.
source: company earnings report, 2026
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What could go wrong
the #1 risk is the SeaSpine merger still failing to convert a 68.8% gross margin into real earnings.
med
Merger integration math still is not working
The 2023 merger was supposed to create a more profitable spine and bone-healing platform. Instead, 2025 ended with a $92.2M net loss and just a 0.4% operating margin.
If 2026 EBITDA misses the $95M–$98M guide, the cheap multiple stops looking like opportunity and starts looking like the right price.
med
Texas class action overhang
A class action lawsuit is pending in U.S. District Court in Texas. Legal issues do not need to be existential to matter when your market cap is only about $470M.
With losses already running at $92.2M, any material cash cost or reputational damage would hit a company without much margin for error.
med
Product launch execution has to do the heavy lifting
Management is leaning on launches like VIRATA and on a 2026–2028 revenue growth plan of 6.5% to 7.5% CAGR. In plain English: the next wave of products needs to land cleanly.
The company has tied roughly $82M–$123M of projected new revenue to that execution path. Delays would pressure both growth and credibility.
A $470M equity value against a $92.2M annual net loss, $200M of long-term debt, and an unresolved legal overhang is not a forgiving setup.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings report
Estimated for Tuesday, May 12, 2026. Consensus sits at -$0.84 EPS on $198.78M of revenue. The real question is whether operating leverage shows up.
metric
adjusted ebitda versus the $95M–$98M guide
This is the scoreboard for the turnaround. Beat it and the story gets breathing room. Miss it and the merger thesis gets harder to defend.
trend
whether gross margin stays high while operating margin improves
68.8% gross margin already says the products are not the problem. You want to see more of that value survive the trip down the income statement.
risk
Texas litigation and launch execution
The lawsuit is an overhang, and VIRATA execution matters because management needs both cleaner operations and believable growth at the same time.
Analyst rankings
earnings predictability
20 / 100
Low predictability means the income statement is still noisy. In human-speak, analysts do not trust the quarterly path yet.
risk rank
2
This score says balance-sheet risk is better than the stock's reputation suggests. It does not mean the turnaround risk has gone away.
price stability
30 / 100
A 30/100 stability score means the stock moves around. You are not buying calm here.
source: institutional data
Institutional activity
institutional ownership data for OFIX is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$13
current price
n/a
target midpoint · n/a from current
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