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Orthofix Medical
(NASDAQ:OFIX)
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Rating:55Neutral
Price Target:
$12.50
▲(11.11% Upside)
Action:Reiterated
Date:08/05/26
The score is held back primarily by financial performance: despite strong gross margins and improving operating trends, OFIX is still loss-making and free cash flow remains negative/volatile. Offsetting this, technicals are moderately positive (price above key short/intermediate moving averages with positive MACD), and the latest earnings call was supportive due to raised 2026 sales/EBITDA guidance and Medicare reimbursement restoration—though meaningful execution and timing risks remain. Valuation provides limited support given the negative P/E and no stated dividend.
Positive Factors
High gross margins
Sustained high gross margins (~69% TTM; 71.7% adjusted in Q2) indicate strong product mix and pricing power in spine and limb device lines. Durable margin structure supports long-term profitability if revenue growth continues and helps absorb R&D and launch investments.
Negative Factors
Persistent net losses & negative FCF
Despite EBITDA improvement, the company remains loss-making on a net basis and free cash flow is negative and volatile. Continued reliance on external liquidity or execution to convert EBITDA gains into sustained net profitability poses a multi-quarter funding and execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained high gross margins (~69% TTM; 71.7% adjusted in Q2) indicate strong product mix and pricing power in spine and limb device lines. Durable margin structure supports long-term profitability if revenue growth continues and helps absorb R&D and launch investments.
Read all positive factors
Orthofix Medical Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales across Orthofix’s business lines (such as spinal products, orthopedics, and adjunct therapies), showing which products or segments are driving growth and which are lagging. Understanding the segment mix helps assess diversification, dependency on key product areas, and how new launches or acquisitions could shift future revenue.
Breaks down sales across Orthofix’s business lines (such as spinal products, orthopedics, and adjunct therapies), showing which products or segments are driving growth and which are lagging. Understanding the segment mix helps assess diversification, dependency on key product areas, and how new launches or acquisitions could shift future revenue.
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The Fly
The FlyOrthofix Medical (OFIX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$423.62M
Dividend YieldN/A
Average Volume (3M)212.06K
Price to Earnings (P/E)―
Beta (1Y)0.95
Revenue Growth2.99%
EPS Growth51.77%
CountryUS
Employees1,605
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-1.54
Shares Outstanding40,732,610
10 Day Avg. Volume220,565
30 Day Avg. Volume212,061
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)1.34
Price to Sales (P/S)0.74
P/FCF Ratio-472.73
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$13.00Price Target Upside15.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.96
Revenue Forecast (FY)$850.96M
Orthofix Medical Business Overview & Revenue Model
Company Description
Orthofix Medical Inc., founded in 1980 and headquartered in Lewisville, Texas, operates as a global medical technology company focusing on devices and biologics. Its reach extends across the United States, several European nations including Italy,...
How the Company Makes Money
Orthofix makes money primarily by selling medical devices and related products used in orthopedic and spine care. Its revenue model is largely product-based: (1) Spine and orthopedic procedure products: revenue is generated from sales of spinal im...
Orthofix Medical Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Neutral
The call conveyed cautious optimism: multiple business segments showed tangible improvement (5% consolidated pro forma growth, strong Spine Fixation and Limb Reconstruction results, stabilization in Biologics, and restored Medicare reimbursement), management raised full-year sales and EBITDA guidance, and product launches/clinical investments provide future upside. Offsetting these positives are persistent execution risks—notably underperformance among smaller U.S. spine distributors, geographic mix and credit-loss impacts on margins, and a temporary, timing-driven European MDR-related revenue boost that will reverse in 2027 and create cash timing pressure. The company appears to be in a transition toward higher-quality, more profitable growth but remains exposed to near-term execution and timing risks.Positive Updates
Company-wide Net Sales Growth and Raised Guidance
Orthofix reported 5% pro forma constant currency net sales growth in Q2 2026 versus prior year and raised full-year 2026 net sales guidance to $845M–$855M (approximately 5% growth at the midpoint), a $7M increase from May guidance.
Negative Updates
Underperformance Among Smaller U.S. Spine Distributors
Approximately 20% of Spine Fixation sales come from smaller distributors; these smaller distributors showed a steeper-than-expected decline and below-expectation productivity, creating a persistent headwind through the balance of the year and pressuring core growth and margin.
Read all updates
Q2-2026 Updates
Positive
Negative
Company-wide Net Sales Growth and Raised Guidance
Orthofix reported 5% pro forma constant currency net sales growth in Q2 2026 versus prior year and raised full-year 2026 net sales guidance to $845M–$855M (approximately 5% growth at the midpoint), a $7M increase from May guidance.
Read all positive updates
Company Guidance
Orthofix updated full‑year 2026 guidance to net sales of $845–$855 million (≈5% pro forma constant‑currency growth at the midpoint, +~$7M from May) and raised adjusted EBITDA to $95–$98 million; the outlook reflects a ~ $12 million benefit from Medicare reimbursement restoration (retroactive to May 18, 2026), a strategic European distributor arrangement expected to add ~ $15 million of 2026 net sales (mostly in Q4) but create an ~ $22 million net‑sales headwind in 2027 and a temporary free‑cash‑flow timing drag, and ongoing softness among smaller U.S. spine distributors. Q2 actuals supporting the update included 5% pro forma constant‑currency net‑sales growth, Global Spinal Implants/Biologics/Enabling Technologies sales of $109M (+4%), Global Spine Fixation +10% (U.S. +3%, top 30 distributors ≈80% of spine sales), Therapeutic Solutions $64.2M (+3%), Global Limb Reconstruction $37.7M (+11%), adjusted gross margin 71.7%, adjusted EBITDA $20.1M, and total cash of $104.4M; management expects Q3 roughly consistent with Q2 and Q4 driven by the distributor inventory timing and seasonality.Orthofix Medical Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
56
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 833.19M | 822.31M | 799.49M | 746.64M | 460.71M | 464.48M |
| Gross Profit | 579.81M | 551.71M | 545.88M | 486.27M | 337.17M | 349.56M |
| EBITDA | 107.11M | -22.35M | -34.18M | -79.49M | 15.66M | 21.44M |
| Net Income | -61.72M | -92.19M | -126.00M | -151.40M | -19.75M | -38.38M |
Balance Sheet | ||||||
| Total Assets | 873.02M | 850.65M | 893.29M | 925.32M | 458.63M | 476.62M |
| Cash, Cash Equivalents and Short-Term Investments | 103.81M | 82.03M | 83.24M | 33.11M | 50.70M | 87.85M |
| Total Debt | 234.62M | 229.26M | 179.63M | 117.07M | 21.53M | 24.31M |
| Total Liabilities | 443.84M | 400.61M | 390.17M | 326.58M | 121.77M | 139.69M |
| Stockholders Equity | 429.18M | 450.04M | 503.12M | 598.73M | 336.86M | 336.93M |
Cash Flow | ||||||
| Free Cash Flow | -27.03M | -1.28M | -9.09M | -107.80M | -34.70M | -1.12M |
| Operating Cash Flow | 17.05M | 33.35M | 25.79M | -45.75M | -11.54M | 18.48M |
| Investing Cash Flow | -43.93M | -34.60M | -27.58M | -33.13M | -24.53M | -23.01M |
| Financing Cash Flow | 63.77M | -786.00K | 50.71M | 65.32M | -78.00K | -3.62M |
Orthofix Medical Technical Analysis
Negative
11.25
Price Trends
10.58
Negative
11.13
Negative
12.73
Negative
Market Momentum
-0.16
Positive
40.52
Neutral
11.50
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OFIX, the sentiment is Negative. The current price of 11.25 is above the 20-day moving average (MA) of 11.24, above the 50-day MA of 10.58, and below the 200-day MA of 12.73, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 40.52 is Neutral, neither overbought nor oversold. The STOCH value of 11.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OFIX.
Orthofix Medical Risk Analysis
Orthofix Medical disclosed 54 risk factors in its most recent earnings report. Orthofix Medical reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Orthofix Medical Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.17B | 17.29 | 28.39% | ― | 3.14% | ― | |
65 Neutral | $649.09M | -14.89 | -11.53% | ― | 14.49% | 6.68% | |
63 Neutral | $851.55M | -55.77 | -8.23% | ― | 15.30% | 40.66% | |
55 Neutral | $423.62M | -6.63 | -14.05% | ― | 2.99% | 51.77% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
OFIX
Orthofix Medical
10.34
-3.89
-27.34%
KIDS
OrthoPediatrics
24.80
5.61
29.23%
SIBN
SI-Bone
18.93
3.47
22.45%
BVS
Bioventus
14.26
6.89
93.49%
Orthofix Medical Corporate Events
Business Operations and StrategyFinancial Disclosures
Orthofix Medical Raises 2026 Outlook After Q2 Growth
Positive
Aug 5, 2026
On August 5, 2026, Orthofix reported second-quarter 2026 results showing net sales of $210.9 million, up 3.8% on a reported basis and 4.7% on a pro forma constant currency basis from a year earlier, excluding discontinued M6 product lines. Growth ...
Business Operations and StrategyRegulatory Filings and Compliance
Orthofix Medical Sees Medicare Reimbursement Policy Restored
Positive
Jul 2, 2026
On April 16, 2026, the U.S. Food and Drug Administration reclassified non-invasive bone growth stimulators from Class III to Class II devices, prompting the Centers for Medicare Medicaid Services to change billing requirements and the Medicare fe...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Orthofix Medical Shareholders Approve All Proposals at Meeting
Positive
Jun 11, 2026
On June 10, 2026, Orthofix Medical shareholders held their Annual Meeting, with a strong quorum of 34,776,676 common shares represented out of 40,385,869 eligible shares as of the April 13 record date. All nominated directors were elected to one-y...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Orthofix Cuts 2026 Outlook After Medicare Reimbursement Changes
Negative
May 21, 2026
On April 16, 2026, the U.S. Food and Drug Administration reclassified non-invasive bone growth stimulators from Class III to Class II devices, prompting the Centers for Medicare Medicaid Services to update billing rules and the Medicare fee sched...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.