| Summary of EBITDA by Reporting Segment |
The following table presents adjusted EBITDA, the primary metric used in managing the Company, by reporting segment:
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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: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Cost of sales |
|
|
47,037 |
|
|
|
13,754 |
|
|
|
60,791 |
|
|
134,440 |
|
|
|
43,033 |
|
|
|
177,473 |
|
Non-GAAP Sales, general, and administrative |
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|
95,150 |
|
|
|
19,692 |
|
|
|
114,842 |
|
|
294,163 |
|
|
|
61,981 |
|
|
|
356,144 |
|
Non-GAAP Research and development |
|
|
10,840 |
|
|
|
3,163 |
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|
|
14,003 |
|
|
33,765 |
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|
|
9,245 |
|
|
|
43,010 |
|
Other segment expenses |
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|
82 |
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|
174 |
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|
256 |
|
|
404 |
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|
|
1,132 |
|
|
|
1,536 |
|
Add: |
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|
|
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|
|
|
|
|
|
|
|
|
|
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Non-GAAP Depreciation, amortization, and share-based compensation expense |
|
|
8,443 |
|
|
|
3,356 |
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|
|
11,799 |
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|
27,001 |
|
|
|
9,895 |
|
|
|
36,896 |
|
Segment Adjusted EBITDA |
|
$ |
26,783 |
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|
$ |
2,986 |
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|
$ |
29,769 |
|
$ |
72,773 |
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$ |
1,463 |
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$ |
74,236 |
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|
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Reconciling items: |
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|
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Corporate operating expenses |
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$ |
3,733 |
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|
|
|
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$ |
18,368 |
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Interest expense, net |
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|
5,889 |
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|
17,638 |
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Depreciation and amortization |
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|
|
|
|
|
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13,172 |
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|
|
|
|
|
|
|
39,938 |
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Share-based compensation and long-term incentive plan expense |
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6,969 |
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|
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|
21,552 |
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Foreign exchange impact |
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|
744 |
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|
2,390 |
|
SeaSpine merger-related costs |
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|
412 |
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|
915 |
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Restructuring costs and impairments related to M6 product lines |
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|
464 |
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|
1,802 |
|
Strategic investments |
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|
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|
|
509 |
|
|
|
|
|
|
|
|
2,093 |
|
Acquisition-related fair value adjustments |
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|
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|
1,396 |
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|
|
|
|
|
|
|
3,014 |
|
Interest and loss on investments |
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|
|
|
|
|
|
|
— |
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|
|
|
|
|
|
|
(16 |
) |
Litigation and investigation costs |
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|
|
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|
|
301 |
|
|
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|
5,402 |
|
Employee Retention Credit |
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|
|
|
|
|
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|
— |
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|
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|
(951 |
) |
Employee transition costs |
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1,428 |
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|
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|
3,170 |
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Loss before income taxes |
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$ |
(5,248 |
) |
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$ |
(41,079 |
) |
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Three Months Ended September 30, 2025 |
|
Nine Months Ended September 30, 2025 |
|
(Unaudited, U.S. Dollars, in thousands) |
|
Global Spine |
|
|
Global Limb Reconstruction |
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Total |
|
Global Spine |
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|
Global Limb Reconstruction |
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Total |
|
Segment Revenues |
|
$ |
172,063 |
|
|
$ |
33,571 |
|
|
$ |
205,634 |
|
$ |
505,723 |
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|
$ |
96,678 |
|
|
$ |
602,401 |
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Less: |
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|
|
|
|
|
|
|
|
|
|
|
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|
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 |
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|
34,436 |
|
|
|
8,290 |
|
|
|
42,726 |
|
Other segment expenses (benefits) |
|
|
2,223 |
|
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(37 |
) |
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|
2,186 |
|
|
9,130 |
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|
(206 |
) |
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|
8,924 |
|
Add: |
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|
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|
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|
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Non-GAAP Depreciation, amortization, and share-based compensation expense |
|
|
9,157 |
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|
4,037 |
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|
|
13,194 |
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|
28,843 |
|
|
|
8,793 |
|
|
|
37,636 |
|
Segment Adjusted EBITDA |
|
$ |
30,642 |
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|
$ |
1,891 |
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|
$ |
32,533 |
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$ |
76,591 |
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|
$ |
4,349 |
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$ |
80,940 |
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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 |
|
|
|
|
|
|
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|
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 |
|
|
|
|
|
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|
$ |
(22,262 |
) |
|
|
|
|
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|
$ |
(88,618 |
) |
|
| Summary of Net Sales by Geographic Destination |
The table below presents net sales by geographic destination for each reporting segment and for the consolidated Company:
|
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|
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:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|