Orthofix Medical (OFIX)
NASDAQ:OFIX
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Orthofix Medical
(NASDAQ:OFIX)
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Rating:50Neutral
Price Target:
$11.50
▼(-5.74% Downside)
Action:ReiteratedDate: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 and Gross Margin Recovery
A 52% TTM revenue rebound combined with ~68% gross margin indicates durable product economics and recovering demand across core franchises. Strong gross margins provide structural room to fund R&D, commercial investment and margin expansion, supporting sustainable operating improvement over the next 2–6 months.
Negative Factors
Ongoing Unprofitability
Persistent operating and net losses limit the company’s internal ability to fund growth, reduce return on equity, and constrain strategic options. Until adjusted EBITDA and net profitability consistently convert, margin weakness remains a multi-quarter risk to balance-sheet flexibility and investor confidence.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Gross Margin Recovery
A 52% TTM revenue rebound combined with ~68% gross margin indicates durable product economics and recovering demand across core franchises. Strong gross margins provide structural room to fund R&D, commercial investment and margin expansion, supporting sustainable operating improvement over the next 2–6 months.
Read all positive factors
Orthofix Medical (OFIX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$489.76M
Dividend YieldN/A
Average Volume (3M)212.06K
Price to Earnings (P/E)―
Beta (1Y)1.21
Revenue Growth4.31%
EPS Growth3.26%
CountryUS
Employees1,616
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.06
Shares Outstanding40,144,398
10 Day Avg. Volume220,565
30 Day Avg. Volume212,061
Financial Highlights & Ratios
PEG Ratio0.21
Price to Book (P/B)1.34
Price to Sales (P/S)0.74
P/FCF Ratio-472.73
Enterprise Value/Market Cap1.30
Enterprise Value/Revenue0.77
Enterprise Value/Gross Profit1.15
Enterprise Value/Ebitda7.56
Forecast
1Y Price Target
$18.33Price Target Upside50.25% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.87
Revenue Forecast (FY)$855.92M
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 Glob...
How the Company Makes Money
Orthofix makes money primarily by selling orthopedic medical devices and related products to healthcare providers (e.g., hospitals, ambulatory surgery centers, and physician practices). Its revenue is largely generated from: (1) sales of bone grow...
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.
Data provided by:
The Fly
The FlyOrthofix Medical Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call portrayed solid operational progress: targeted product launches (VIRATA), strong segment performance in BGT and Limb Reconstruction, distributor productivity gains (top 30 partners +25% YoY), margin expansion (Q4 adjusted EBITDA margin +230 bps) and strong Q4 free cash flow. Management acknowledged near-term headwinds from distributor transitions, biologics softness, a major-account price decrease and potential legal settlement exposure, and extended the long-range timeline by one year to fully realize channel benefits. Guidance for 2026 is constructive (mid-single digit revenue growth, improved EBITDA and positive full-year free cash flow excluding legal items) while some benefits are expected to be back‑half weighted.Positive Updates
Total Q4 Net Sales
Total global net sales of $218.6 million in Q4, up 3% pro forma (constant currency, excluding M6 disc).
Negative Updates
Distributor Transition Created Near-Term Pressure
Distributor transitions implemented earlier in 2025 created temporary pressure and variable access to certain IDN accounts, slowing near-term performance and prompting an extension of the long-range plan timeline by one year.
Read all updates
Q4-2025 Updates
Positive
Negative
Total Q4 Net Sales
Total global net sales of $218.6 million in Q4, up 3% pro forma (constant currency, excluding M6 disc).
Read all positive updates
Company Guidance
Orthofix guided full‑year 2026 net sales of $850–860M (midpoint $855M; ~5.5% pro‑forma constant‑currency growth), non‑GAAP adjusted EBITDA of $95–98M, and positive free cash flow for the year excluding any legal settlements; they expect full‑year adjusted gross margin of ~72.5% (Q4 pro‑forma was 71.4%), adjusted depreciation & amortization of ~$38–39M, stock‑based compensation of ~$31M, interest/other expense of ~ $6M per quarter, and capital expenditures of $45–50M. Management expects EBITDA margin expansion of ~70 basis points weighted to H2, revenue cadence of ~5% growth in H1 and ~6% in H2 (Q1 has one fewer selling day ≈‑1.6%, Q2 one extra ≈+1.6%), a ~1% one‑time Q1 headwind to BGT from the CMS team pilot, and reiterated long‑range targets (updated to 2026–2028) of 6.5–7.5% net‑sales CAGR, mid‑teens adjusted EBITDA margin by 2028, and sustained positive free cash flow 2026–2028 (ex‑legal).Orthofix Medical Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
56
Neutral
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 822.31M | 799.49M | 746.64M | 460.71M | 464.48M |
| Gross Profit | 551.71M | 545.88M | 486.27M | 337.17M | 349.56M |
| EBITDA | -22.35M | -34.18M | -79.49M | 15.66M | 21.44M |
| Net Income | -92.19M | -126.00M | -151.40M | -19.75M | -38.38M |
Balance Sheet | |||||
| Total Assets | 850.65M | 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 | 229.26M | 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 | -1.28M | -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
Neutral
12.20
Price Trends
12.60
Negative
13.89
Negative
13.74
Negative
Market Momentum
-0.27
Negative
52.28
Neutral
72.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OFIX, the sentiment is Neutral. The current price of 12.2 is above the 20-day moving average (MA) of 11.78, below the 50-day MA of 12.60, and below the 200-day MA of 13.74, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 52.28 is Neutral, neither overbought nor oversold. The STOCH value of 72.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OFIX.
Orthofix Medical Risk Analysis
Orthofix Medical disclosed 53 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $760.03M | 8.40 | 4.97% | ― | 1.58% | ― | |
56 Neutral | $615.22M | -45.38 | -12.91% | ― | 23.27% | 43.90% | |
55 Neutral | $404.71M | -10.51 | -12.67% | ― | 19.90% | -57.90% | |
54 Neutral | $647.39M | 35.21 | -8.56% | ― | 2.70% | -3090.51% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $489.76M | -6.56 | -20.38% | ― | 4.31% | 3.26% |
* Healthcare Sector Average
OFIX
Orthofix Medical
12.20
-2.52
-17.12%
AVNS
Avanos Medical
13.92
0.74
5.61%
KIDS
OrthoPediatrics
16.01
-7.02
-30.48%
SIBN
SI-Bone
13.93
<0.01
0.07%
BVS
Bioventus
9.14
1.19
14.97%
Orthofix Medical Corporate Events
Business Operations and StrategyFinancial Disclosures
Orthofix Posts Strong Q4 Results and Optimistic 2026 Outlook
Positive
Feb 24, 2026
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 margi...
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.