v3.26.1
Business segment information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Business segment information

10. Business segment information

The Company's operations are managed through two reporting segments: Global Spine and Global Limb Reconstruction. These reporting segments represent the operating segments for which the President and Chief Executive Officer, who is also the Chief Operating Decision Maker (CODM), reviews financial information and makes resource allocation decisions among businesses. The primary metric used by the CODM in managing the Company is adjusted earnings before interest, tax, depreciation, and amortization ("adjusted EBITDA", a non-GAAP financial measure). Adjusted EBITDA represents earnings before interest income (expense), income taxes, depreciation and amortization, and excludes the impact of share-based compensation and long-term

incentive plan expense; gains and losses related to changes in foreign exchange rates; charges related to the Merger and other strategic investments; restructuring costs and impairments related to the discontinuation of the M6 product lines (as defined in Note 15); acquisition-related fair value adjustments; gains and/or losses on investments; litigation and investigation charges; refunds associated with the Employee Retention Credit established by the Coronavirus Aid, Relief, and Economic Security Act; and certain costs associated with employee transitions.

Corporate activities are comprised of operating expenses not directly identifiable within the two reporting segments, such as human resources, finance, legal, and information technology functions. The Company neither discretely allocates assets, other than goodwill, to its operating segments nor evaluates the operating segments using discrete asset information.

Global Spine

The Global Spine reporting segment offers two primary product categories: (i) Therapeutic Solutions and (ii) Spinal Implants, Biologics, and Enabling Technologies.

The Therapeutic Solutions product category manufactures, distributes, and provides support services for market-leading bone growth stimulation devices that enhance bone fusion. These Class II medical devices with special controls are indicated as an adjunctive, noninvasive treatment to improve fusion success rates in the cervical and lumbar spine as well as a therapeutic treatment for non-spinal, appendicular fractures, treating both fresh or nonunion fractures. These products are sold almost exclusively in the U.S., using distributors and direct sales representatives to provide these devices to healthcare providers and their patients.

Spinal Implants, Biologics, and Enabling Technologies is comprised of (i) a broad portfolio of spine fixation implant products used in surgical procedures of the spine, (ii) one of the most comprehensive biologics portfolios in both the demineralized bone matrix and cellular allograft market segments, and (iii) image-guided surgical solutions to facilitate degenerative, minimally invasive, and complex surgical procedures. Spinal Implants, Biologics, and Enabling Technologies products are sold through a network of distributors and sales representatives to hospitals and healthcare providers on a global basis for Spinal Implants and Enabling Technologies, and primarily within the U.S. for Biologics.

Global Limb Reconstruction

The Global Limb Reconstruction reporting segment offers products and solutions for the underserved limb reconstruction market that encompasses four pillars: deformity correction, limb lengthening, complex fracture management, and limb preservation. This reporting segment specializes in the design, development, and marketing of external and internal fixation limb reconstruction products that are coupled with enabling digital technologies to serve the complete patient treatment pathway. The Company sells these products worldwide through a global network of distributors and sales representatives to hospitals, healthcare organizations, and healthcare providers.

The following table presents adjusted EBITDA, the primary metric used in managing the Company, by reporting segment:

 

 

Three Months Ended June 30, 2026

 

Six Months Ended June 30, 2026

 

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

 

Global Spine

 

 

Global Limb Reconstruction

 

 

Total

 

Global Spine

 

 

Global Limb Reconstruction

 

 

Total

 

Segment revenues

 

$

173,243

 

 

$

37,690

 

 

$

210,933

 

$

337,095

 

 

$

70,546

 

 

$

407,641

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Cost of sales

 

 

44,561

 

 

 

14,664

 

 

 

59,225

 

 

87,403

 

 

 

29,279

 

 

 

116,682

 

Non-GAAP Sales, general, and administrative

 

 

100,992

 

 

 

22,088

 

 

 

123,080

 

 

199,013

 

 

 

42,289

 

 

 

241,302

 

Non-GAAP Research and development

 

 

11,528

 

 

 

3,083

 

 

 

14,611

 

 

22,925

 

 

 

6,082

 

 

 

29,007

 

Other segment expenses

 

 

63

 

 

 

20

 

 

 

83

 

 

322

 

 

 

958

 

 

 

1,280

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Depreciation, amortization, and share-based compensation expense

 

 

9,490

 

 

 

3,311

 

 

 

12,801

 

 

18,558

 

 

 

6,539

 

 

 

25,097

 

Segment Adjusted EBITDA

 

$

25,589

 

 

$

1,146

 

 

$

26,735

 

$

45,990

 

 

$

(1,523

)

 

$

44,467

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciling items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate operating expenses

 

 

 

 

 

 

 

$

6,597

 

 

 

 

 

 

 

$

14,635

 

Interest expense, net

 

 

 

 

 

 

 

 

6,085

 

 

 

 

 

 

 

 

11,749

 

Depreciation and amortization

 

 

 

 

 

 

 

 

13,273

 

 

 

 

 

 

 

 

26,766

 

Share-based compensation and long-term incentive plan expense

 

 

 

 

 

 

 

 

7,945

 

 

 

 

 

 

 

 

14,583

 

Foreign exchange impact

 

 

 

 

 

 

 

 

746

 

 

 

 

 

 

 

 

1,646

 

SeaSpine merger-related costs

 

 

 

 

 

 

 

 

572

 

 

 

 

 

 

 

 

503

 

Restructuring costs and impairments related to M6 product lines

 

 

 

 

 

 

 

 

1,085

 

 

 

 

 

 

 

 

1,338

 

Strategic investments

 

 

 

 

 

 

 

 

634

 

 

 

 

 

 

 

 

1,584

 

Acquisition-related fair value adjustments

 

 

 

 

 

 

 

 

868

 

 

 

 

 

 

 

 

1,618

 

Interest and loss on investments

 

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

 

(16

)

Litigation and investigation costs

 

 

 

 

 

 

 

 

2,185

 

 

 

 

 

 

 

 

5,101

 

Employee Retention Credit

 

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

 

(951

)

Employee transition costs

 

 

 

 

 

 

 

 

1,742

 

 

 

 

 

 

 

 

1,742

 

Loss before income taxes

 

 

 

 

 

 

 

$

(14,997

)

 

 

 

 

 

 

$

(35,831

)

 

 

 

 

 

Three Months Ended June 30, 2025

 

Six Months Ended June 30, 2025

 

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

 

Global Spine

 

 

Global Limb Reconstruction

 

 

Total

 

Global Spine

 

 

Global Limb Reconstruction

 

 

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 and long-term incentive plan 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

)

The following table presents depreciation, amortization, and impairment by reporting segment:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

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

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Global Spine

 

$

9,986

 

 

$

14,851

 

 

$

20,204

 

 

$

46,753

 

Global Limb Reconstruction

 

 

2,807

 

 

 

1,419

 

 

 

5,585

 

 

 

3,355

 

Corporate

 

 

480

 

 

 

601

 

 

 

977

 

 

 

1,194

 

Total

 

$

13,273

 

 

$

16,871

 

 

$

26,766

 

 

$

51,302

 

 

Geographical information

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)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Global Spine

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

159,990

 

 

$

161,850

 

 

$

312,407

 

 

$

314,553

 

International

 

 

13,253

 

 

 

7,974

 

 

 

24,688

 

 

 

19,107

 

Total Global Spine

 

 

173,243

 

 

 

169,824

 

 

 

337,095

 

 

 

333,660

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Limb Reconstruction

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

10,043

 

 

 

9,888

 

 

 

18,954

 

 

 

18,866

 

International

 

 

27,647

 

 

 

23,409

 

 

 

51,592

 

 

 

44,241

 

Total Global Limb Reconstruction

 

 

37,690

 

 

 

33,297

 

 

 

70,546

 

 

 

63,107

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

170,033

 

 

 

171,738

 

 

 

331,361

 

 

 

333,419

 

International

 

 

40,900

 

 

 

31,383

 

 

 

76,280

 

 

 

63,348

 

Net sales

 

$

210,933

 

 

$

203,121

 

 

$

407,641

 

 

$

396,767

 

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)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

U.S.

 

$

170,033

 

 

$

171,738

 

 

$

331,361

 

 

$

333,419

 

Italy

 

 

6,003

 

 

 

5,646

 

 

 

11,906

 

 

 

10,699

 

France

 

 

3,266

 

 

 

3,184

 

 

 

5,898

 

 

 

5,809

 

United Kingdom

 

 

3,694

 

 

 

3,118

 

 

 

7,567

 

 

 

6,155

 

Germany

 

 

2,315

 

 

 

2,265

 

 

 

4,485

 

 

 

4,473

 

Brazil

 

 

1,918

 

 

 

988

 

 

 

2,952

 

 

 

2,123

 

Others

 

 

23,704

 

 

 

16,182

 

 

 

43,472

 

 

 

34,089

 

Net sales

 

$

210,933

 

 

$

203,121

 

 

$

407,641

 

 

$

396,767

 

The following data includes property, plant, and equipment by geographic area:

(U.S. Dollars, in thousands)

 

June 30,
2026

 

 

December 31,
2025

 

 

 

(Unaudited)

 

 

 

 

U.S.

 

$

116,655

 

 

$

114,483

 

Italy

 

 

9,434

 

 

 

9,893

 

Germany

 

 

1,008

 

 

 

1,360

 

Others

 

 

3,660

 

 

 

3,663

 

Total

 

$

130,757

 

 

$

129,399