Orthofix Medical (OFIX) AI Stock Analysis

• Market Cap: $504.90M
• Dividend Yield: N/A
• Average Volume (3M): 212.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: 4.31%
• EPS Growth: 3.26%
• Country: US
• Employees: 1,616
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.06
• Shares Outstanding: 39,599,660
• 10 Day Avg. Volume: 220,565
• 30 Day Avg. Volume: 212,061
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 1.06
• Enterprise Value/Ebitda: -88.16
• 1Y Price Target: $18.67
• Price Target Upside: 46.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $13.50 ▲(5.88% Upside)
• Action: Reiterated Date: 02/24/26
• Date: Action: Reiterated 02/24/26

The score is held back primarily by weak current profitability and negative free cash flow despite strong revenue growth and healthy gross margins. The earnings call improves the outlook with guidance for margin expansion and positive 2026 free cash flow (excluding legal items), but technicals remain mixed-to-soft with price below key moving averages and negative MACD, and valuation is difficult to assess due to losses and no dividend support.

Positive Factors

Revenue rebound and high gross margins

A +52% TTM revenue rebound combined with ~68% gross margins indicates durable product economics and pricing power in core franchises. Sustained high gross margins create room for operating leverage, supporting management's path to consistent profitability as sales scale.

Improving cash generation

Operating cash flow turning positive (~$33M TTM), plus Q4 free cash flow and an $85.1M year‑end cash balance, materially improves liquidity. This reduces near‑term refinancing risk and provides durable capacity to fund launches, distributor initiatives, and required capex.

Stronger commercial channel concentration

Concentration of sales in productive top distributors (>75% of U.S. sales) and 25% YoY growth among them reflects a more efficient, scalable commercial model. A tighter channel base can improve sales predictability, reduce go‑to‑market costs, and accelerate adoption of new products long term.

Negative Factors

Ongoing unprofitability and weak returns

Despite progress, material operating and net losses (EBIT ~-11%, net margin ~-14.6%) and negative ROE constrain durable earnings power. Sustained profitability requires consistent margin expansion and cost control; current losses reduce reinvestment capacity and lengthen the time to self‑funded growth.

Negative free cash flow in TTM

FFCF of roughly -$11M TTM and planned 2026 capex (~$45–50M) indicate cash generation is still fragile. Seasonal variability means FCF may not be positive each quarter; sustaining investment and launches depends on converting operating cash flow into consistent free cash flow.

Legal settlement uncertainty

An accrued but unresolved legal exposure creates a structural downside to cash and earnings since guidance excludes potential settlements. Material or poorly‑timed settlements could erode cash balances, undermine projected FCF and limit funding for growth initiatives, increasing balance sheet risk.

Orthofix Medical Business Overview & Revenue Model

Company Description

Orthofix Medical Inc. operates as a medical device and biologics company in the United States, Italy, Germany, France, the United Kingdom, Brazil, and internationally. It operates through two segments, Global Spine and Global Orthopedics. The Global Spine segment manufactures, distributes, and provides support services for bone growth stimulator devices that enhance bone fusion, as well as used as a therapeutic treatment for non-spinal and appendicular fractures. This segment also designs, develops, and markets a portfolio of motion preservation and fixation implant products, which are used in surgical procedures of the spine; and a portfolio of products and tissue forms that allow physicians to treat a range of spinal and orthopedic conditions, as well as markets regenerative non-tissue biologic solutions derived from synthetic materials. The Global Orthopedics segment designs, develops, and markets orthopedic products that are used in fracture repair, deformity correction, and bone reconstruction procedures. The company markets and distributes its products through direct sales representatives; independent distributors; and employed and independent sales representatives to physicians, hospitals, ambulatory surgery centers, integrated health delivery systems, and other purchasing organizations. The company was formerly known as Orthofix International N.V. and changed its name to Orthofix Medical Inc. in July 2018. Orthofix Medical Inc. was founded in 1980 and is headquartered in Lewisville, Texas.

How the Company Makes Money

Orthofix generates revenue through the sale of its medical devices and related services in the orthopedic and spine markets. Key revenue streams include the sale of bone growth stimulators, spinal implants, and orthopedic trauma products. The company also earns income from leasing and servicing its devices. Orthofix benefits from strategic partnerships with healthcare providers and distribution networks, which help in expanding its market reach. Additionally, the company invests in research and development to innovate and enhance its product offerings, which can lead to increased sales and market share.

Orthofix Medical Financial Statement Overview

Summary

Revenue rebounded sharply (+52% TTM) with strong gross margin (~68%), and operating cash flow turned positive (~$33M). Offsetting this, the company remains meaningfully unprofitable (EBIT margin ~-11%, net margin ~-14.6%), free cash flow is still negative (about -$11M TTM), and returns are weak (ROE about -26%), indicating a turnaround still in progress.

Income Statement

TTM (Trailing-Twelve-Months) revenue accelerated sharply (+52%) and gross margin remained strong (~68%), showing solid product economics. However, profitability is still weak: the company generated operating losses (EBIT margin about -11%) and a meaningful net loss (net margin about -14.6%). Results are improving versus 2023 (losses narrowed materially), but the business has not yet demonstrated consistent, durable earnings power.

Balance Sheet

Leverage remains moderate with debt at ~0.46x equity in TTM (Trailing-Twelve-Months), and the capital base is still sizeable (equity ~$450M). The key drawback is ongoing losses translating into weak returns on equity (about -26%), alongside a decline in equity versus 2023–2024, which reduces balance-sheet flexibility if losses persist.

Cash Flow

Cash generation improved: operating cash flow turned positive in TTM (Trailing-Twelve-Months) (~$33M) after a large outflow in 2023. That said, free cash flow remained negative in TTM (Trailing-Twelve-Months) (about -$11M), indicating continued cash needs after investment/spending. Cash flow quality is mixed, with operating cash flow positive but not yet strong enough to consistently fund the business without pressure.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	799.49M	746.64M	460.71M	464.48M
Gross Profit	0.00	545.88M	486.27M	337.17M	349.56M
EBITDA	50.97M	-34.18M	-79.49M	15.66M	21.44M
Net Income	-90.81M	-126.00M	-151.40M	-19.75M	-38.38M
Balance Sheet
Total Assets	279.04M	893.29M	925.32M	458.63M	476.62M
Cash, Cash Equivalents and Short-Term Investments	82.03M	83.24M	33.11M	50.70M	87.85M
Total Debt	175.29M	179.63M	117.07M	21.53M	24.31M
Total Liabilities	400.61M	390.17M	326.58M	121.77M	139.69M
Stockholders Equity	450.04M	503.12M	598.73M	336.86M	336.93M
Cash Flow
Free Cash Flow	33.35M	-9.09M	-107.80M	-34.70M	-1.12M
Operating Cash Flow	33.35M	25.79M	-45.75M	-11.54M	18.48M
Investing Cash Flow	-34.60M	-27.58M	-33.13M	-24.53M	-23.01M
Financing Cash Flow	-786.00K	50.71M	65.32M	-78.00K	-3.62M

Orthofix Medical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 12.75 is below the 20-day moving average (MA) of 13.27, below the 50-day MA of 14.31, and below the 200-day MA of 13.62, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 35.88 is Neutral, neither overbought nor oversold. The STOCH value of 57.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OFIX.

Orthofix Medical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BVS	64 Neutral	$721.70M	77.65	4.97%	―	1.58%	―
AVNS	63 Neutral	$633.15M	-8.66	-46.68%	―	2.70%	-3090.51%
SIBN	56 Neutral	$663.45M	-34.60	-12.91%	―	23.27%	43.90%
KIDS	54 Neutral	$403.24M	-8.22	-12.67%	―	19.90%	-57.90%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OFIX	50 Neutral	$504.90M	-4.20	-24.60%	―	4.31%	3.26%

Orthofix Medical Corporate Events

Orthofix Posts Strong Q4 Results and Optimistic 2026 Outlook

On February 24, 2026, Orthofix reported fourth-quarter 2025 net sales of $219.9 million, or $218.6 million excluding discontinued M6 disc lines, marking modest reported growth but stronger constant-currency gains, alongside an improved gross margin and a sharply reduced net loss of $2.2 million. The company posted its eighth straight quarter of adjusted EBITDA growth, generated $16.8 million of free cash flow in the quarter and slightly positive free cash flow for 2025, and highlighted double-digit Global Spine Fixation and robust Bone Growth Therapies and U.S. Limb Reconstruction growth as it issued 2026 guidance and signaled confidence in sustained margin expansion and cash generation.

Management emphasized that optimization of the spine commercial channel, accelerating adoption of enabling technologies, and new or expanded offerings such as TRUELOK Elevate, FITBONE and the planned second-half 2026 full launch of VIRATA are expected to drive durable top-line gains. By reinforcing its Biologics portfolio and maintaining momentum in limb reconstruction and BGT, Orthofix positioned itself for continued operational improvement and long-term value creation for shareholders despite exiting the M6 product lines.

The most recent analyst rating on (OFIX) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Orthofix Medical stock, see the OFIX Stock Forecast page.