Orthofix Medical (NASDAQ:OFIX) held its first-quarter earnings conference call on Tuesday. Below is the complete transcript from the call.
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Access the full call at https://events.q4inc.com/attendee/203860379
Summary
Orthofix Medical reported a solid Q1 2026 with a 3% year-over-year increase in global net sales, reflecting steady execution and strategic focus, especially in their Spine and Therapeutic Solutions segments.
The company made strategic moves to simplify its Spine leadership structure and enhance its commercial focus, particularly on the 7D flash navigation system and upcoming product launches like Virata.
Orthofix Medical expects continued improvement throughout 2026, reaffirming its full-year guidance of 5.5% pro forma constant currency growth, driven by innovation, distributor realignment, and targeted investments.
Operational highlights include a 6% growth in global spine fixation net sales and successful distributor transitions, contributing to a 27% year-over-year net sales growth from the top 30 distributor partners.
Management expressed confidence in their innovation pipeline and operational model, aiming for consistent execution, margin expansion, and sustainable shareholder value.
Full Transcript
OPERATOR
Thank you for standing by. At this time, I would like to welcome everyone to the OrthoFix first quarter 2026 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press STAR followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one. Again, we do ask questions be limited to one question and a brief related follow up. Thank you. I would now like to turn the call over to Julie Dooley.
Julie Duwe (Chief IR and Communications Officer)
Thank you and good morning everyone. Welcome to OrthoFix’s first quarter 2026 earnings call. I’m Julie Dooley, OrthoFix’s Chief Investor Relations and Communications Officer. Joining me today are President and Chief Executive Officer Massimo Calafiore and Chief Financial Officer Julie Andrews. Earlier today Orthofix released its financial Results for the first quarter ended March 31, 2026. A copy of the press release and supplemental presentation are available on our investor relations website and a replay of this call will be posted shortly after we conclude. Before we begin, please note that our remarks include forward looking statements. These statements involve risks and uncertainties and actual results may differ materially. All statements other than those of historical facts are forward looking statements. We do not undertake any obligation to revise or update such forward looking statements. Factors that could cause actual results to differ materially are discussed in our most recent filings with the SEC and may be included in our future filings with the SEC. We will also reference various non GAAP financial measures during today’s call. Reconciliations to US GAAP and additional details are in our press release and supplemental materials. Unless otherwise stated, net sales growth rates are on a pro forma constant currency basis and exclude the discounted M6 artificial disk product lines and all results of operations will be on a non GAAP as adjusted basis. Here’s today’s agenda. Massimo will start with business performance and operational highlights. Julie Andrews will follow with our financial results and guidance. Then we’ll open up the call for Q and A. With that I’ll turn the call over to Massimo, who will discuss how our early year execution and recent operational actions are beginning to support improved performance as we move through the year. Massimo
Massimo Calafiore (President and Chief Executive Officer)
thank you Julie and good morning everyone. I appreciate you joining us today. We delivered a Good start to 2026. First quarter results reflect steady execution, improving stability and sharper strategic focus. As the quarter progressed, we began seeing the expected progress from Our Spine commercial channel actions along with stronger operating discipline, supporting our confidence that performance will continue to build through the year. While these results reflect meaningful progress, they also crystallize where we could further raise the bar. That’s why in April we took deliberate steps to simplify our Spine leadership structure, a proactive move as we continue to scale enabling technologies like 7D and advance the launch of Verara later this year. By bringing decision making closer to the field and increasing accountability through direct oversight, we are improving speed, consistency and commercial focus where it matters the Most. Stepping back Q1 reflects where we are as a company today, moving into the next phase of our journey, executing with greater consistency and strengthening our position to benefit from our innovation pipeline as the year unfolds. What we delivered this quarter supports our confidence in continued improvement. Our priorities are execute consistently, convert opportunity into results and demonstrate progress quarter by quarter. Let me turn to business performance highlights starting with Spine In Spine global spine fixation, net sales grew 6% on a constant currency basis with US net sales growth of 4%. Results were supported by enhanced commercial focus, deeper procedural penetration and the ongoing benefits of our distributor transition. Importantly, those transitions are now largely behind us as alignment has improved, we are seeing positive momentum from more consistent field execution. In Q1, our top 30 distributor partners delivered net sales growth of 27% year over year and 24% on trailing 12 months basis, reflecting the success of our strategy to prioritize larger, more dedicated distributors and deeper relationship with our top partners. A key driver of that momentum is 7D which remains a core differentiator in our surgical ecosystem, enhancing precision workflow and surgeon engagement. Following our leadership realignment, we are intensifying our commercial focus on adoption of our 7D flash navigation system to deliver a more integrated spine offering. While Spine is benefiting from better alignment, we are applying the same discipline to biologics. Performance improved sequentially during the quarter as we implemented targeted actions to strengthen execution, expand account penetration and increase utilization across the portfolio. We are refining our Go Forward strategy, building clinical evidence and supporting advocacy. Collectively, these actions are designed to drive improvement through the year and position biologics to exit 2026 with stronger momentum and a more durable growth profile. Beyond Spine and Biologics, our other growth platforms remained resilient. Our therapeutic solution business, formerly bone growth therapies, delivered 5% year over year. Net sales growth and continued to outperform the broader market demands remain stable, utilization is improving and prescribing activities increasing across both spine fusion and fracture care. With its consistent performance and healthy margins, this business continues to be an important contributor to margin and cash generation. Global rim reconstruction posted 3% constant currency growth reflecting steady demand across our core fixation and reconstruction systems. Over the past year we sharpened our focus by prioritizing high value categories, enhancing our mix with platform like Trulock Elevate and Fitbond and de emphasizing lower return product. We believe this action position Limb reconstruction for acceleration as we move through 2026. A common thread across the business is the increasing impact of our Innovation pipeline. We will have a full year contribution from Trulock Elevate and Fitbone and we remain on track for the full market launch of Verara in the second half of the year. Together with the continued inspection of our 7D flash ecosystem, these platforms are designed to deliver differentiated clinical value and support durable multi year growth. In closing, Q1 was a solid start of the year. We are carrying that momentum forward with disciplined execution and targeted investment. The quality and the commitment …
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