v3.26.3
Revenue recognition and accounts receivable
 9 Months Ended
Sep. 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 September 30,

 

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

 

2026

 

 

2025

 

 

Change

 

Therapeutic Solutions

 

$

63,956

 

 

$

61,211

 

 

 

4.5

%

Spinal Implants, Biologics, and Enabling Technologies

 

 

107,493

 

 

 

110,852

 

 

 

-3.0

%

Global Spine

 

 

171,449

 

 

 

172,063

 

 

 

-0.4

%

Global Limb Reconstruction

 

 

36,413

 

 

 

33,571

 

 

 

8.5

%

Net sales

 

$

207,862

 

 

$

205,634

 

 

 

1.1

%

 

 

 

Nine Months Ended September 30,

 

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

 

2026

 

 

2025

 

 

Change

 

Therapeutic Solutions

 

$

185,882

 

 

$

178,834

 

 

 

3.9

%

Spinal Implants, Biologics, and Enabling Technologies

 

 

322,662

 

 

 

326,889

 

 

 

-1.3

%

Global Spine

 

 

508,544

 

 

 

505,723

 

 

 

0.6

%

Global Limb Reconstruction

 

 

106,959

 

 

 

96,678

 

 

 

10.6

%

Net sales

 

$

615,503

 

 

$

602,401

 

 

 

2.2

%

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 September 30,

 

 

Nine Months Ended September 30,

 

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

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Product sales

 

$

196,990

 

 

$

193,813

 

 

$

583,085

 

 

$

566,841

 

Marketing service fees

 

 

10,872

 

 

 

11,821

 

 

 

32,418

 

 

 

35,560

 

Net sales

 

$

207,862

 

 

$

205,634

 

 

$

615,503

 

 

$

602,401

 

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 nine months ended September 30, 2026, and 2025:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

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

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Allowance for expected credit losses beginning balance

 

$

10,563

 

 

$

8,909

 

 

$

8,308

 

 

$

7,418

 

Current period provision for expected credit losses

 

 

1,242

 

 

 

629

 

 

 

4,833

 

 

 

2,466

 

Write-offs charged against the allowance and other

 

 

(176

)

 

 

(112

)

 

 

(1,435

)

 

 

(870

)

Effect of changes in foreign exchange rates

 

 

(46

)

 

 

(13

)

 

 

(123

)

 

 

399

 

Allowance for expected credit losses ending balance

 

$

11,583

 

 

$

9,413

 

 

$

11,583

 

 

$

9,413