v3.26.1
Business Segment
 3 Months Ended
Mar. 31, 2026
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 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 March 31,
 20262025
Orthopedic surgery$147,663 $138,290 
General surgery169,383 182,966 
Consolidated net sales$317,046 $321,256 
The following table includes significant segment expenses:
Three Months Ended March 31,
20262025
Net sales
$317,046 $321,256 
Cost of sales (a)
133,599 143,504 
Salesforce and commission expense
58,217 57,432 
Marketing expense
18,114 15,874 
Distribution expense
13,255 12,033 
General and administrative expense
32,395 32,655 
Stock-based compensation expense
5,502 13,863 
Amortization expense
7,261 7,172 
Non-cash adjustments to fair value of contingent consideration liability722 3,962 
Research and development expense (b)
16,333 12,947 
Interest expense
7,060 8,286 
Provision for income taxes
4,527 1,636 
Other segment items(c)
6,233 5,856 
Net income
$13,828 $6,036 
(a)Cost of sales in 2026 includes a benefit from the early termination of our distribution agreement with W.L. Gore & Associates, Inc.

(b) Research and development expense includes costs to comply with the European Union's Medical Device Regulations.

(c)Other segment items consist of (i) consulting fees, legal fees, and other costs related to operational optimization in 2026 and 2025; (ii) cash compensation costs related to advisory services provided by our former Chief Financial Officer and Chief Executive Officer in 2026 and 2025, respectively; (iii) a gain from the sale of certain assets related to gastroenterology products in 2026; (iv) third party services pertaining to review of potential issues with certain royalty payments to surgeons involved in design teams in 2025; and (v) gain on the sale of a product line in 2025.
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.