Orthofix Medical (OM2) Q3 2026 Earnings Report

The call presented a mixed outlook. Limb Reconstruction, Therapeutic Solutions, Biologics stabilization, technology launches and improved adjusted EBITDA were positive, but these were offset by below-expectation results, U.S. Spine weakness, supplier and instrument constraints, reduced 2026 guidance, unfavorable mix, cash timing pressure and a stated 2027 MDR revenue headwind.

Orthofix now expects full year 2026 pro forma net sales in the range of $825 million to $830 million and full year 2026 non-GAAP adjusted EBITDA of $86 million to $88 million, with the outlook provided on a non-GAAP pro forma basis, reflecting current foreign currency exchange rates and excluding the discontinued M6 product lines. For the fourth quarter, the company expects sequential growth from normal seasonality and inventory purchases under the European distributor arrangement, with most of the approximately $15 million 2026 net sales benefit expected in the fourth quarter. The European MDR strategy for Spine is expected to create an approximately $22 million net sales headwind in 2027, while MDR requirements are completed. The company is not providing full guidance on 2027, but expects Therapeutic Solutions and limb recon to show above-market growth, core revenue to be in the positive territory backing out the MDR, and Q3, Q4 performance to continue into 2027; core distributors’ growth slowed to the mid-single digits.