v3.26.1
Revenue recognition and accounts receivable
 6 Months Ended
Jun. 30, 2026
Revenue Recognition And Accounts Receivable [Abstract]  
Revenue recognition and accounts receivable

9. Revenue recognition and accounts receivable

Revenue recognition

The Company has two reporting segments: Global Spine and Global Limb Reconstruction. Within the Global Spine reporting segment, there are two product categories: (i) Therapeutic Solutions (formerly Bone Growth Therapies), and (ii) Spinal Implants, Biologics, and Enabling Technologies.

The tables below present net sales by product category and reporting segment:

 

 

Three Months Ended June 30,

 

(Unaudited, U.S. Dollars, in thousands)

 

2026

 

 

2025

 

 

Change

 

Therapeutic Solutions

 

$

64,152

 

 

$

62,573

 

 

 

2.5

%

Spinal Implants, Biologics, and Enabling Technologies

 

 

109,091

 

 

 

107,251

 

 

 

1.7

%

Global Spine

 

 

173,243

 

 

 

169,824

 

 

 

2.0

%

Global Limb Reconstruction

 

 

37,690

 

 

 

33,297

 

 

 

13.2

%

Net sales

 

$

210,933

 

 

$

203,121

 

 

 

3.8

%

 

 

 

Six Months Ended June 30,

 

(Unaudited, U.S. Dollars, in thousands)

 

2026

 

 

2025

 

 

Change

 

Therapeutic Solutions

 

$

121,926

 

 

$

117,623

 

 

 

3.7

%

Spinal Implants, Biologics, and Enabling Technologies

 

 

215,169

 

 

 

216,037

 

 

 

-0.4

%

Global Spine

 

 

337,095

 

 

 

333,660

 

 

 

1.0

%

Global Limb Reconstruction

 

 

70,546

 

 

 

63,107

 

 

 

11.8

%

Net sales

 

$

407,641

 

 

$

396,767

 

 

 

2.7

%

Product sales and marketing service fees

The table below presents product sales and marketing service fees, which are both components of net sales:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Unaudited, U.S. Dollars, in thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Product sales

 

$

199,979

 

 

$

191,395

 

 

$

386,095

 

 

$

373,028

 

Marketing service fees

 

 

10,954

 

 

 

11,726

 

 

 

21,546

 

 

 

23,739

 

Net sales

 

$

210,933

 

 

$

203,121

 

 

$

407,641

 

 

$

396,767

 

Marketing service fees are received from MTF Biologics ("MTF") based on total sales of biologic tissues and relate solely to the Biologics product category within the Global Spine reporting segment, whereas product sales primarily consist of the sale of Therapeutic Solutions, Spinal Implants, non-MTF sourced Biologics, Enabling Technologies, and Global Limb Reconstruction products. As MTF is the single supplier for certain allografts in the Company's Biologics portfolio, which are derived from deceased donors for their bone grafts and living donors for their amnion grafts, any event or circumstance that would impact MTF's continued access to donors or the Company's ability to market these tissues may adversely impact the Company's financial results.

Accounts receivable and related allowances

The following table provides the detail of changes in the Company's allowance for expected credit losses for the three and six months ended June 30, 2026, and 2025:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Unaudited, U.S. Dollars, in thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Allowance for expected credit losses beginning balance

 

$

8,990

 

 

$

8,602

 

 

$

8,308

 

 

$

7,418

 

Current period provision for expected credit losses

 

 

2,872

 

 

 

779

 

 

 

3,591

 

 

 

1,837

 

Write-offs charged against the allowance and other

 

 

(1,254

)

 

 

(747

)

 

 

(1,259

)

 

 

(758

)

Effect of changes in foreign exchange rates

 

 

(45

)

 

 

275

 

 

 

(77

)

 

 

412

 

Allowance for expected credit losses ending balance

 

$

10,563

 

 

$

8,909

 

 

$

10,563

 

 

$

8,909