| Summary of EBITDA by Reporting Segment |
The following table presents adjusted EBITDA, the primary metric used in managing the Company, by reporting segment:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2025 |
|
Six Months Ended June 30, 2025 |
|
(U.S. Dollars, in thousands) |
|
Global Spine |
|
|
Global Orthopedics |
|
|
Total |
|
Global Spine |
|
|
Global Orthopedics |
|
|
Total |
|
Segment revenues |
|
$ |
169,824 |
|
|
$ |
33,297 |
|
|
$ |
203,121 |
|
$ |
333,660 |
|
|
$ |
63,107 |
|
|
$ |
396,767 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Cost of sales |
|
|
42,811 |
|
|
|
12,266 |
|
|
|
55,077 |
|
|
87,398 |
|
|
|
24,137 |
|
|
|
111,535 |
|
Non-GAAP Sales, general, and administrative |
|
|
97,169 |
|
|
|
17,990 |
|
|
|
115,159 |
|
|
189,708 |
|
|
|
35,911 |
|
|
|
225,619 |
|
Non-GAAP Research and development |
|
|
11,761 |
|
|
|
2,674 |
|
|
|
14,435 |
|
|
23,384 |
|
|
|
5,526 |
|
|
|
28,910 |
|
Other segment expenses (benefits) |
|
|
2,464 |
|
|
|
6 |
|
|
|
2,470 |
|
|
6,907 |
|
|
|
(169 |
) |
|
|
6,738 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Depreciation, amortization, and share-based compensation expense |
|
|
10,814 |
|
|
|
2,124 |
|
|
|
12,938 |
|
|
19,686 |
|
|
|
4,756 |
|
|
|
24,442 |
|
Segment Adjusted EBITDA |
|
$ |
26,433 |
|
|
$ |
2,485 |
|
|
$ |
28,918 |
|
$ |
45,949 |
|
|
$ |
2,458 |
|
|
$ |
48,407 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate operating expenses |
|
|
|
|
|
|
|
|
8,273 |
|
|
|
|
|
|
|
|
16,331 |
|
Interest expense, net |
|
|
|
|
|
|
|
|
3,950 |
|
|
|
|
|
|
|
|
8,456 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
16,871 |
|
|
|
|
|
|
|
|
51,302 |
|
Share-based compensation expense |
|
|
|
|
|
|
|
|
7,824 |
|
|
|
|
|
|
|
|
14,293 |
|
Foreign exchange impact |
|
|
|
|
|
|
|
|
(2,751 |
) |
|
|
|
|
|
|
|
(3,795 |
) |
SeaSpine merger-related costs |
|
|
|
|
|
|
|
|
4,886 |
|
|
|
|
|
|
|
|
6,016 |
|
Restructuring costs and impairments related to M6 product lines |
|
|
|
|
|
|
|
|
3,354 |
|
|
|
|
|
|
|
|
15,480 |
|
Strategic investments |
|
|
|
|
|
|
|
|
353 |
|
|
|
|
|
|
|
|
3,867 |
|
Acquisition-related fair value adjustments |
|
|
|
|
|
|
|
|
(763 |
) |
|
|
|
|
|
|
|
(1,373 |
) |
Interest and loss on investments |
|
|
|
|
|
|
|
|
(31 |
) |
|
|
|
|
|
|
|
(31 |
) |
Litigation and investigation costs |
|
|
|
|
|
|
|
|
4,029 |
|
|
|
|
|
|
|
|
7,071 |
|
Employee retention credit |
|
|
|
|
|
|
|
|
(2,854 |
) |
|
|
|
|
|
|
|
(2,854 |
) |
Loss before income taxes |
|
|
|
|
|
|
|
$ |
(14,223 |
) |
|
|
|
|
|
|
$ |
(66,356 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2024 |
|
Six Months Ended June 30, 2024 |
|
(U.S. Dollars, in thousands) |
|
Global Spine |
|
|
Global Orthopedics |
|
|
Total |
|
Global Spine |
|
|
Global Orthopedics |
|
|
Total |
|
Segment Revenues |
|
$ |
168,034 |
|
|
$ |
30,586 |
|
|
$ |
198,620 |
|
$ |
329,327 |
|
|
$ |
57,901 |
|
|
$ |
387,228 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Cost of sales |
|
|
43,958 |
|
|
|
12,469 |
|
|
|
56,427 |
|
|
88,812 |
|
|
|
23,316 |
|
|
|
112,128 |
|
Non-GAAP Sales, general, and administrative |
|
|
92,542 |
|
|
|
19,375 |
|
|
|
111,917 |
|
|
184,354 |
|
|
|
37,522 |
|
|
|
221,876 |
|
Non-GAAP Research and development |
|
|
14,118 |
|
|
|
3,542 |
|
|
|
17,660 |
|
|
30,063 |
|
|
|
6,854 |
|
|
|
36,917 |
|
Other segment expenses (benefits) |
|
|
(170 |
) |
|
|
36 |
|
|
|
(134 |
) |
|
(137 |
) |
|
|
(72 |
) |
|
|
(209 |
) |
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Depreciation, amortization, and share-based compensation expense |
|
|
10,102 |
|
|
|
5,015 |
|
|
|
15,117 |
|
|
21,343 |
|
|
|
8,406 |
|
|
|
29,749 |
|
Segment Adjusted EBITDA |
|
$ |
27,688 |
|
|
$ |
179 |
|
|
$ |
27,867 |
|
$ |
47,578 |
|
|
$ |
(1,313 |
) |
|
$ |
46,265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate operating expenses |
|
|
|
|
|
|
|
|
11,234 |
|
|
|
|
|
|
|
|
21,967 |
|
Interest expense, net |
|
|
|
|
|
|
|
|
4,943 |
|
|
|
|
|
|
|
|
9,501 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
14,032 |
|
|
|
|
|
|
|
|
28,894 |
|
Share-based compensation expense |
|
|
|
|
|
|
|
|
9,959 |
|
|
|
|
|
|
|
|
18,759 |
|
Foreign exchange impact |
|
|
|
|
|
|
|
|
851 |
|
|
|
|
|
|
|
|
2,439 |
|
SeaSpine merger-related costs |
|
|
|
|
|
|
|
|
5,897 |
|
|
|
|
|
|
|
|
10,376 |
|
Strategic investments |
|
|
|
|
|
|
|
|
311 |
|
|
|
|
|
|
|
|
431 |
|
Acquisition-related fair value adjustments |
|
|
|
|
|
|
|
|
6,117 |
|
|
|
|
|
|
|
|
10,334 |
|
Interest and loss on investments |
|
|
|
|
|
|
|
|
1,813 |
|
|
|
|
|
|
|
|
1,553 |
|
Litigation and investigation costs |
|
|
|
|
|
|
|
|
(277 |
) |
|
|
|
|
|
|
|
1,983 |
|
Succession charges |
|
|
|
|
|
|
|
|
5,346 |
|
|
|
|
|
|
|
|
7,556 |
|
Loss before income taxes |
|
|
|
|
|
|
|
$ |
(32,359 |
) |
|
|
|
|
|
|
$ |
(67,528 |
) |
|
| Summary of Net Sales by Geographic Destination |
The table below presents net sales by geographic destination for each reporting segment and for the consolidated Company:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, |
|
|
Six Months Ended
June 30, |
|
(Unaudited, U.S. Dollars, in thousands) |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
Global Spine |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
$ |
161,850 |
|
|
$ |
159,191 |
|
|
$ |
314,553 |
|
|
$ |
311,056 |
|
International |
|
|
7,974 |
|
|
|
8,843 |
|
|
|
19,107 |
|
|
|
18,271 |
|
Total Global Spine |
|
|
169,824 |
|
|
|
168,034 |
|
|
|
333,660 |
|
|
|
329,327 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Orthopedics |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
|
9,888 |
|
|
|
7,742 |
|
|
|
18,866 |
|
|
|
15,896 |
|
International |
|
|
23,409 |
|
|
|
22,844 |
|
|
|
44,241 |
|
|
|
42,005 |
|
Total Global Orthopedics |
|
|
33,297 |
|
|
|
30,586 |
|
|
|
63,107 |
|
|
|
57,901 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
|
171,738 |
|
|
|
166,933 |
|
|
|
333,419 |
|
|
|
326,952 |
|
International |
|
|
31,383 |
|
|
|
31,687 |
|
|
|
63,348 |
|
|
|
60,276 |
|
Net sales |
|
$ |
203,121 |
|
|
$ |
198,620 |
|
|
$ |
396,767 |
|
|
$ |
387,228 |
|
The following data includes net sales by geographic area:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, |
|
|
Six Months Ended
June 30, |
|
(Unaudited, U.S. Dollars, in thousands) |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
U.S. |
|
$ |
171,738 |
|
|
$ |
166,933 |
|
|
$ |
333,419 |
|
|
$ |
326,952 |
|
Italy |
|
|
5,646 |
|
|
|
5,257 |
|
|
|
10,699 |
|
|
|
10,259 |
|
France |
|
|
3,184 |
|
|
|
3,510 |
|
|
|
5,809 |
|
|
|
6,026 |
|
United Kingdom |
|
|
3,118 |
|
|
|
2,623 |
|
|
|
6,155 |
|
|
|
5,254 |
|
Germany |
|
|
2,265 |
|
|
|
2,393 |
|
|
|
4,473 |
|
|
|
4,498 |
|
Brazil |
|
|
988 |
|
|
|
1,708 |
|
|
|
2,123 |
|
|
|
3,236 |
|
Others |
|
|
16,182 |
|
|
|
16,196 |
|
|
|
34,089 |
|
|
|
31,003 |
|
Net Sales |
|
$ |
203,121 |
|
|
$ |
198,620 |
|
|
$ |
396,767 |
|
|
$ |
387,228 |
|
|