v3.25.2
Business Segment
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Business Segment Business Segment
We account and report for our business as a single operating segment entity engaged in the development, manufacturing and sale on a global basis of surgical devices and related equipment. The Company derives revenue globally and manages the business on a consolidated basis due to shared infrastructure and resources. Our chief operating decision maker ("CODM"), the President and Chief Executive Officer, evaluates the various global product portfolios on a net sales basis and evaluates profitability, investment, cash flow metrics and allocates resources on a consolidated worldwide basis.
Our product lines consist of orthopedic surgery and general surgery. Orthopedic surgery consists of sports medicine and lower extremities instrumentation and implants, small bone, large bone and specialty powered surgical instruments as well as imaging systems for use in minimally invasive surgical procedures and fees related to sales representation, promotion and marketing of sports medicine allograft tissue. General surgery consists of a complete line of endo-mechanical instrumentation for minimally invasive laparoscopic and gastrointestinal procedures, clinical insufflation, smoke evacuation devices, a line of cardiac monitoring products as well as electrosurgical generators and related instruments. These product lines' net sales are as follows:
Three Months Ended June 30,Six Months Ended June 30,
 2025202420252024
Orthopedic surgery$140,734 $139,537 $279,024 $274,449 
General surgery201,611 192,560 384,576 369,922 
Consolidated net sales$342,345 $332,097 $663,600 $644,371 
The following table includes significant segment expenses:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Net sales
$342,345 $332,097 $663,600 $644,371 
Cost of sales
154,025 148,368 297,529 288,677 
Salesforce and commission expense
58,923 57,320 116,355 112,595 
Marketing expense
16,992 16,428 32,867 31,950 
Distribution expense
13,152 12,825 25,185 24,792 
General and administrative expense
33,016 29,150 65,670 60,990 
Stock-based compensation expense
4,903 6,974 18,766 13,214 
Amortization expense
7,192 7,157 14,364 14,309 
Non-cash adjustments to fair value of contingent consideration liability(1,799)(8,673)2,163 (15,219)
Research and development expense
14,138 14,098 27,084 27,692 
Interest expense
7,824 9,593 16,110 19,188 
Other expense
418 — 418 — 
Provision for income taxes
8,498 7,538 10,134 13,248 
Other segment items(a)
3,642 1,343 9,498 3,250 
Net income
$21,421 $29,976 $27,457 $49,685 
(a)Other segment items consist of (i) third party services pertaining to review of potential issues with certain royalty payments to surgeons involved in design teams during the three and six months ended June 30, 2025 and 2024; (ii) cash compensation costs related to advisory services provided by our former Chief Executive Officer during the six months ended June 30, 2025; (iii) consulting fees related to operational optimization during the three and six months ended June 30, 2025; (iv) gain on the sale of a product line during the six months ended June 30, 2025; and (v) restructuring related costs and income related to the termination of a distributor agreement during the six months ended June 30, 2024.
Total assets for the Company's single operating segment are the same as presented on the Company's consolidated balance sheet, which is used to measure segment performance.