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SEGMENT AND GEOGRAPHIC INFORMATION
6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT AND GEOGRAPHIC INFORMATION SEGMENT AND GEOGRAPHIC INFORMATION
Operating segments are defined as components of an enterprise for which separate financial information is available that are evaluated regularly by the Chief Operating Decision Maker (the “CODM”) in deciding how to allocate resources and in assessing performance. Generally, financial information is required to be reported on the basis that it is used internally for evaluating segment performance and deciding how to allocate resources to segments. Keith W. Pfeil, Chief Executive Officer, is identified as the CODM who determines resource allocation, investing activities, and performance assessment as of June 30, 2026. The CODM uses revenue, gross profit and operating income to assess financial performance of the segments and make key operating decisions. Our CODM does not evaluate operating segments using asset or liability information.
The Company identified two operating segments, Musculoskeletal Solutions and Enabling Technologies, based on the overall management structure and business strategy. The Company aggregates these operating segments into one reportable segment, based on conclusions reached after considering relevant factors such as economic similarity, customer base, regulatory environment, production processes, nature of services and products provided, and our comprehensive approach to product development and offerings targeting patient needs through procedural-based solutions.
The following table represents total segment revenue, significant segments expenses and other expenses for the three and six months ended June 30, 2026 and 2025, respectively:
Three Months Ended
June 30,
Six Months Ended
June 30,
(in thousands)2026202520262025
Net sales$789,612 $745,342 $1,549,466 $1,343,463 
Cost of Sales and Operating expenses:
Cost of sales(210,505)(213,162)(413,494)(379,538)
Amortization of inventory fair value step-up (a)
— (5,967)— (6,016)
Depreciation related to cost of sales(30,934)(29,636)(62,011)(58,609)
Research and development employee-related cost(26,126)(30,101)(53,463)(55,533)
Research and development other (b)
(10,194)(9,852)(19,367)(17,483)
Selling, general and administrative employee-related cost(218,357)(237,372)(445,257)(426,353)
Selling, general and administrative other (c)
(55,364)(59,258)(113,797)(104,881)
Provision for litigation(62)2,621 (196)3,908 
Acquisition-related costs(11,080)(33,155)(17,457)(34,213)
Amortization of intangibles(29,560)(30,189)(59,086)(58,991)
Other segment expenses (d)
(13,827)(22,390)(29,100)(31,156)
Operating income/(loss)183,603 76,881 336,238 174,598 
Interest income/(expense), net7,074 693 12,508 2,374 
Foreign currency transactional gain/(loss)(860)38 (2,973)4,308 
Bargain purchase gain— 110,561 1,118 110,561 
Income/(loss) before income taxes$189,817 $188,173 $346,891 $291,841 
(a)Amounts primarily related to inventory step up associated with the Nevro Merger.
(b)Amounts include IPR&D and other non-employee related costs.
(c)Amounts include non-employee related costs including taxes and fees.
(d)Amounts primarily include restructuring expense and credit losses.
The following table represents total net sales by geographic area, based on the location of the customer for the three and six months ended June 30, 2026 and 2025, respectively:
Net Sales
Three Months Ended
June 30,
Six Months Ended
June 30,
(In thousands)2026202520262025
United States$619,105 $600,784 $1,223,993 $1,084,641 
International170,507 144,558 325,473 258,822 
Total$789,612 $745,342 $1,549,466 $1,343,463