v3.26.3
Business segment information
 9 Months Ended
Sep. 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 September 30, 2026

 

Nine Months Ended September 30, 2026

 

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

 

Global Spine

 

 

Global Limb Reconstruction

 

 

Total

 

Global Spine

 

 

Global Limb Reconstruction

 

 

Total

 

Segment revenues

 

$

171,449

 

 

$

36,413

 

 

$

207,862

 

$

508,544

 

 

$

106,959

 

 

$

615,503

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Cost of sales

 

 

47,037

 

 

 

13,754

 

 

 

60,791

 

 

134,440

 

 

 

43,033

 

 

 

177,473

 

Non-GAAP Sales, general, and administrative

 

 

95,150

 

 

 

19,692

 

 

 

114,842

 

 

294,163

 

 

 

61,981

 

 

 

356,144

 

Non-GAAP Research and development

 

 

10,840

 

 

 

3,163

 

 

 

14,003

 

 

33,765

 

 

 

9,245

 

 

 

43,010

 

Other segment expenses

 

 

82

 

 

 

174

 

 

 

256

 

 

404

 

 

 

1,132

 

 

 

1,536

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

8,443

 

 

 

3,356

 

 

 

11,799

 

 

27,001

 

 

 

9,895

 

 

 

36,896

 

Segment Adjusted EBITDA

 

$

26,783

 

 

$

2,986

 

 

$

29,769

 

$

72,773

 

 

$

1,463

 

 

$

74,236

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciling items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate operating expenses

 

 

 

 

 

 

 

$

3,733

 

 

 

 

 

 

 

$

18,368

 

Interest expense, net

 

 

 

 

 

 

 

 

5,889

 

 

 

 

 

 

 

 

17,638

 

Depreciation and amortization

 

 

 

 

 

 

 

 

13,172

 

 

 

 

 

 

 

 

39,938

 

Share-based compensation and long-term incentive plan expense

 

 

 

 

 

 

 

 

6,969

 

 

 

 

 

 

 

 

21,552

 

Foreign exchange impact

 

 

 

 

 

 

 

 

744

 

 

 

 

 

 

 

 

2,390

 

SeaSpine merger-related costs

 

 

 

 

 

 

 

 

412

 

 

 

 

 

 

 

 

915

 

Restructuring costs and impairments related to M6 product lines

 

 

 

 

 

 

 

 

464

 

 

 

 

 

 

 

 

1,802

 

Strategic investments

 

 

 

 

 

 

 

 

509

 

 

 

 

 

 

 

 

2,093

 

Acquisition-related fair value adjustments

 

 

 

 

 

 

 

 

1,396

 

 

 

 

 

 

 

 

3,014

 

Interest and loss on investments

 

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

 

(16

)

Litigation and investigation costs

 

 

 

 

 

 

 

 

301

 

 

 

 

 

 

 

 

5,402

 

Employee Retention Credit

 

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

 

(951

)

Employee transition costs

 

 

 

 

 

 

 

 

1,428

 

 

 

 

 

 

 

 

3,170

 

Loss before income taxes

 

 

 

 

 

 

 

$

(5,248

)

 

 

 

 

 

 

$

(41,079

)

 

 

 

 

 

Three Months Ended September 30, 2025

 

Nine Months Ended September 30, 2025

 

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

 

Global Spine

 

 

Global Limb Reconstruction

 

 

Total

 

Global Spine

 

 

Global Limb Reconstruction

 

 

Total

 

Segment Revenues

 

$

172,063

 

 

$

33,571

 

 

$

205,634

 

$

505,723

 

 

$

96,678

 

 

$

602,401

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Cost of sales

 

 

44,016

 

 

 

12,611

 

 

 

56,627

 

 

131,414

 

 

 

36,748

 

 

 

168,162

 

Non-GAAP Sales, general, and administrative

 

 

93,288

 

 

 

20,379

 

 

 

113,667

 

 

282,995

 

 

 

56,290

 

 

 

339,285

 

Non-GAAP Research and development

 

 

11,051

 

 

 

2,764

 

 

 

13,815

 

 

34,436

 

 

 

8,290

 

 

 

42,726

 

Other segment expenses (benefits)

 

 

2,223

 

 

 

(37

)

 

 

2,186

 

 

9,130

 

 

 

(206

)

 

 

8,924

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

9,157

 

 

 

4,037

 

 

 

13,194

 

 

28,843

 

 

 

8,793

 

 

 

37,636

 

Segment Adjusted EBITDA

 

$

30,642

 

 

$

1,891

 

 

$

32,533

 

$

76,591

 

 

$

4,349

 

 

$

80,940

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciling items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate operating expenses

 

 

 

 

 

 

 

$

7,951

 

 

 

 

 

 

 

$

24,283

 

Interest expense, net

 

 

 

 

 

 

 

 

4,681

 

 

 

 

 

 

 

 

13,137

 

Depreciation and amortization

 

 

 

 

 

 

 

 

12,941

 

 

 

 

 

 

 

 

64,243

 

Share-based compensation and long-term incentive plan expense

 

 

 

 

 

 

 

 

7,181

 

 

 

 

 

 

 

 

21,474

 

Foreign exchange impact

 

 

 

 

 

 

 

 

571

 

 

 

 

 

 

 

 

(3,224

)

SeaSpine merger-related costs

 

 

 

 

 

 

 

 

126

 

 

 

 

 

 

 

 

6,142

 

Restructuring costs and impairments related to M6 product lines

 

 

 

 

 

 

 

 

6

 

 

 

 

 

 

 

 

15,485

 

Strategic investments

 

 

 

 

 

 

 

 

227

 

 

 

 

 

 

 

 

4,094

 

Acquisition-related fair value adjustments

 

 

 

 

 

 

 

 

(427

)

 

 

 

 

 

 

 

(1,800

)

Interest and loss on investments

 

 

 

 

 

 

 

 

(10

)

 

 

 

 

 

 

 

(41

)

Litigation and investigation costs

 

 

 

 

 

 

 

 

21,548

 

 

 

 

 

 

 

 

28,619

 

Employee Retention Credit

 

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

 

(2,854

)

Loss before income taxes

 

 

 

 

 

 

 

$

(22,262

)

 

 

 

 

 

 

$

(88,618

)

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

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

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

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Global Spine

 

$

9,842

 

 

$

9,372

 

 

$

30,046

 

 

$

56,125

 

Global Limb Reconstruction

 

 

2,852

 

 

 

2,986

 

 

 

8,437

 

 

 

6,341

 

Corporate

 

 

478

 

 

 

583

 

 

 

1,455

 

 

 

1,777

 

Total

 

$

13,172

 

 

$

12,941

 

 

$

39,938

 

 

$

64,243

 

 

Geographical information

The table below presents net sales by geographic destination for each reporting segment and for the consolidated Company:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

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

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Global Spine

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

156,783

 

 

$

160,143

 

 

$

469,190

 

 

$

474,696

 

International

 

 

14,666

 

 

 

11,920

 

 

 

39,354

 

 

 

31,027

 

Total Global Spine

 

 

171,449

 

 

 

172,063

 

 

 

508,544

 

 

 

505,723

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Limb Reconstruction

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

10,129

 

 

 

10,198

 

 

 

29,083

 

 

 

29,064

 

International

 

 

26,284

 

 

 

23,373

 

 

 

77,876

 

 

 

67,614

 

Total Global Limb Reconstruction

 

 

36,413

 

 

 

33,571

 

 

 

106,959

 

 

 

96,678

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

166,912

 

 

 

170,341

 

 

 

498,273

 

 

 

503,760

 

International

 

 

40,950

 

 

 

35,293

 

 

 

117,230

 

 

 

98,641

 

Net sales

 

$

207,862

 

 

$

205,634

 

 

$

615,503

 

 

$

602,401

 

The following data includes net sales by geographic area:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

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

 

2026

 

 

2025

 

 

2026

 

 

2025

 

U.S.

 

$

166,912

 

 

$

170,341

 

 

$

498,273

 

 

$

503,760

 

Italy

 

 

6,121

 

 

 

5,658

 

 

 

18,027

 

 

 

16,357

 

France

 

 

2,867

 

 

 

2,691

 

 

 

8,765

 

 

 

8,500

 

United Kingdom

 

 

3,191

 

 

 

3,645

 

 

 

10,758

 

 

 

9,800

 

Germany

 

 

2,591

 

 

 

2,311

 

 

 

7,076

 

 

 

6,784

 

Brazil

 

 

1,358

 

 

 

1,200

 

 

 

4,310

 

 

 

3,323

 

Others

 

 

24,822

 

 

 

19,788

 

 

 

68,294

 

 

 

53,877

 

Net sales

 

$

207,862

 

 

$

205,634

 

 

$

615,503

 

 

$

602,401

 

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

(U.S. Dollars, in thousands)

 

September 30,
2026

 

 

December 31,
2025

 

 

 

(Unaudited)

 

 

 

 

U.S.

 

$

119,825

 

 

$

114,483

 

Italy

 

 

9,071

 

 

 

9,893

 

Germany

 

 

855

 

 

 

1,360

 

Others

 

 

3,637

 

 

 

3,663

 

Total

 

$

133,388

 

 

$

129,399