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Orthofix Medical
(NASDAQ:OFIX)
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Rating:48Neutral
Price Target:
$9.50
▼(-20.90% Downside)
Action:Reiterated
Date:06/11/26
The score is constrained primarily by ongoing losses and only modest cash generation (slightly negative TTM free cash flow), alongside weak price trends and bearish momentum. Guidance and operational progress (gross margin improvement, distributor stabilization, planned launches) provide some support, but the Medicare reimbursement-driven outlook cut and related cash-flow uncertainty are a meaningful offset.
Positive Factors
Revenue growth and scale
Orthofix's sizeable $825M TTM revenue and recent acceleration provide durable scale to support commercial investment, R&D and fixed-cost leverage. Sustained mid-single-digit growth can underpin product rollouts and distributor engagement, improving operating leverage over multiple quarters.
Negative Factors
Reimbursement risk
A structural ~10% Medicare reimbursement cut for non-invasive bone growth stimulators materially reduces margin and cash conversion in a core product line. Because public payor rules persist, this recalibrates long-term revenue and profitability assumptions and raises uncertainty around sustainable pricing and utilization.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth and scale
Orthofix's sizeable $825M TTM revenue and recent acceleration provide durable scale to support commercial investment, R&D and fixed-cost leverage. Sustained mid-single-digit growth can underpin product rollouts and distributor engagement, improving operating leverage over multiple quarters.
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
$377.94M
Dividend YieldN/A
Average Volume (3M)212.06K
Price to Earnings (P/E)―
Beta (1Y)1.03
Revenue Growth2.59%
EPS Growth59.39%
CountryUS
Employees1,616
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-1.51
Shares Outstanding40,421,654
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 Cap1.29
Enterprise Value/Revenue0.59
Enterprise Value/Gross Profit0.86
Enterprise Value/Ebitda5.16
Forecast
1Y Price Target
$15.00Price Target Upside24.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-1.16
Revenue Forecast (FY)$840.89M
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 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 Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Neutral
The call conveyed steady, disciplined execution with several clear operational and commercial positives: modest top-line growth in Q1, strong performance among top distributors, outperformance in Therapeutic Solutions, improving gross margin, a healthy innovation pipeline (7D, TrueLok Elevate, Fitbone, VIRATA) and reaffirmed full-year guidance. At the same time, challenges persist—Biologics remains soft, U.S. Limb Reconstruction growth was flat, absolute EBITDA was modest, and some results were influenced by timing, mix and prior commercial transitions. Management emphasized that distributor transitions are largely behind them and discussed focused leadership changes and product launches to drive acceleration through the year. Overall, the positives and negatives are balanced, with evidence of improving momentum but meaningful operational work still required.Positive Updates
Total Net Sales and Quarterly Growth
Q1 2026 total global net sales of $196.4 million, up 3% year-over-year on a pro forma constant currency basis (adjusted to exclude discontinued M6 product lines).
Negative Updates
Biologics Softness and Need for Recovery
Biologics underperformed in Q1 and remains a drag versus other franchises; management described targeted actions and a leadership realignment (new leader: Patrick Fisher) and expects sequential improvement but recovery is not yet realized.
Read all updates
Q1-2026 Updates
Positive
Negative
Total Net Sales and Quarterly Growth
Q1 2026 total global net sales of $196.4 million, up 3% year-over-year on a pro forma constant currency basis (adjusted to exclude discontinued M6 product lines).
Read all positive updates
Company Guidance
Orthofix reaffirmed full‑year 2026 guidance calling for net sales of $850–$860 million (about 5.5% pro forma constant‑currency growth at the midpoint), with ~5% growth in the first half and ~6% in the second half, non‑GAAP adjusted EBITDA of $95–$98 million (≈70 bps of margin expansion at the midpoint), and positive free cash flow for the year (excluding potential legal settlements); the outlook is based on current FX and assumes continued cadence improvement and planned product launches (VIRATA full market launch in H2). To put that in context, Q1 net sales were $196.4M (+3% YoY, though Q1 had one fewer selling day reducing growth ~1.6% and benefited ~$2M from international stocking timing), pro‑forma non‑GAAP adjusted gross margin was 70.7% (+40 bps), pro‑forma non‑GAAP adjusted EBITDA was $9.7M, and total cash ended the quarter at $120.9M (including restricted cash); segment Q1 metrics included Spinal implants/biologics/enabling tech $105.8M, Therapeutic Solutions $57.8M (+5%), Fracture +6%, Global Limb Reconstruction $32.8M (+3%), U.S. Spine +4%, and top 30 U.S. distributors +27% YoY (+24% TTM).Orthofix Medical Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
57
Neutral
Cash Flow
43
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 825.37M | 822.31M | 799.49M | 746.64M | 460.71M | 464.48M |
| Gross Profit | 569.63M | 551.71M | 545.88M | 486.27M | 337.17M | 349.56M |
| EBITDA | 94.51M | -22.35M | -34.18M | -79.49M | 15.66M | 21.44M |
| Net Income | -60.01M | -92.19M | -126.00M | -151.40M | -19.75M | -38.38M |
Balance Sheet | ||||||
| Total Assets | 886.60M | 850.65M | 893.29M | 925.32M | 458.63M | 476.62M |
| Cash, Cash Equivalents and Short-Term Investments | 120.28M | 82.03M | 83.24M | 33.11M | 50.70M | 87.85M |
| Total Debt | 234.39M | 229.26M | 179.63M | 117.07M | 21.53M | 24.31M |
| Total Liabilities | 451.42M | 400.61M | 390.17M | 326.58M | 121.77M | 139.69M |
| Stockholders Equity | 435.19M | 450.04M | 503.12M | 598.73M | 336.86M | 336.93M |
Cash Flow | ||||||
| Free Cash Flow | -3.63M | -1.28M | -9.09M | -107.80M | -34.70M | -1.12M |
| Operating Cash Flow | 34.91M | 33.35M | 25.79M | -45.75M | -11.54M | 18.48M |
| Investing Cash Flow | -38.38M | -34.60M | -27.58M | -33.13M | -24.53M | -23.01M |
| Financing Cash Flow | 63.96M | -786.00K | 50.71M | 65.32M | -78.00K | -3.62M |
Orthofix Medical Technical Analysis
Negative
12.01
Price Trends
10.67
Negative
11.59
Negative
13.26
Negative
Market Momentum
-0.34
Negative
43.76
Neutral
48.21
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 12.01 is above the 20-day moving average (MA) of 9.51, above the 50-day MA of 10.67, and below the 200-day MA of 13.26, indicating a bearish trend. The MACD of -0.34 indicates Negative momentum. The RSI at 43.76 is Neutral, neither overbought nor oversold. The STOCH value of 48.21 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $822.82M | 23.26 | 16.27% | ― | 1.52% | ― | |
62 Neutral | $1.15B | -16.41 | -8.91% | ― | 3.87% | 80.78% | |
62 Neutral | $745.07M | -43.31 | -9.56% | ― | 16.77% | 39.26% | |
57 Neutral | $495.72M | -11.49 | -11.42% | ― | 14.52% | 4.11% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $377.94M | -6.21 | -13.44% | ― | 2.59% | 59.39% |
* Healthcare Sector Average
OFIX
Orthofix Medical
9.35
-1.77
-15.92%
AVNS
Avanos Medical
24.63
12.28
99.43%
KIDS
OrthoPediatrics
19.30
-3.18
-14.15%
SIBN
SI-Bone
16.80
-1.67
-9.04%
BVS
Bioventus
9.85
2.83
40.31%
Orthofix Medical Corporate Events
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...
Business Operations and StrategyFinancial Disclosures
Orthofix Medical Posts Q1 2026 Growth, Narrows Losses
Positive
May 5, 2026
Orthofix Medical reported first-quarter 2026 results on May 5, 2026, showing reported net sales of $196.7 million and pro forma net sales of $196.4 million, up 2.7% year over year on a constant currency basis excluding its discontinued M6 disc lin...
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.