Orthofix Medical Inc.
For the period ended Jun 30, 2026. Filed Aug 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 5, 2026
OFIX$7.87-11.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-05.
0001193125-26-205003
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001193125-26-333822
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 99 previous paragraphs and 126 current paragraphs.
45 unchanged; 36 reworded; 36 added; 17 removed; 1 previous and 9 current paragraphs rearranged.
Tables are not compared: 10 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (36)
Current report
Second quarter 2026 reported net sales of $210.9 million, representing an increase of 4% on a reported basis and 5% on a pro forma constant currency basis compared to second quarter 2025.
Current report
Generated double-digit constant currency growth in Global Spine Fixation and Global Limb Reconstruction, reflecting strong international performance and continued demand across key growth platforms.
Current report
Therapeutic Solutions (formerly Bone Growth Therapies) delivered 3% year-over-year net sales growth despite a temporary Medicare reimbursement headwind affecting bone growth stimulators during part of the second quarter. For additional discussion of this matter, see Note 16 of the Notes to the Unaudited Condensed Consolidated Financial Statements.
Current report
Biologics stabilized and began to regain momentum, supported by focused commercial execution.
Current report
Net sales of $173.2 million, an increase of $3.4 million or 2.0% on a reported basis
Current report
Therapeutic Solutions net sales increased $1.6 million, or 2.5%, largely driven by an increase in gross order volumes from our continued investment in our direct sales channels for both the spine and fracture markets, with this growth partially offset by unfavorable changes in average sales price as a result of billing requirement modifications and Medicare fee schedule changes instituted by the Centers for Medicare & Medicaid Services (“CMS”) for dates of service on or after May 18, 2026 (these changes were then withdrawn by CMS on July 1, 2026)
Current report
Net sales of $337.1 million, an increase of $3.4 million or 1.0% on a reported basis
Current report
Spinal Implants, Biologics, and Enabling Technologies net sales, excluding sales from the M6 product lines, increased $5.7 million, or 2.7%, primarily due to continued sales growth from our highest-volume distribution partners within Spine Fixation, with this growth partially offset by a decline in Biologics and Enabling Technologies. This decrease in Enabling Technologies is primarily due to our deliberate strategy to prioritize the Voyager Earnout program over the pursuit of capital sales
Current report
Net sales of $37.7 million, an increase of $4.4 million or 13.2% on a reported basis and 11.0% on a constant currency basis
Current report
Net sales of $70.5 million, an increase of $7.4 million or 11.8% on a reported basis and 7.2% on a constant currency basis
Current report
U.S. net sales were relatively flat compared to the prior year
Current report
Gross profit increased $10.2 million
Current report
Increase in gross profit of $7.5 million resulting from the discontinuation of the M6 product lines and from inventory charges for certain product lines that were rationalized in our integration activities following the Merger
Current report
The remaining increase in gross profit is primarily attributable to higher sales volumes as compared to the prior year
Current report
Gross profit increased $28.1 million
Current report
Increase in gross profit of $23.4 million resulting from the discontinuation of the M6 product lines and from inventory charges for certain product lines that were rationalized in our integration activities following the Merger
Current report
The remaining increase in gross profit is primarily attributable to higher sales volumes as compared to the prior year
Current report
Sales, general, and administrative expense increased $1.5 million
Current report
Increase compared to the prior year period, primarily due to higher compensation, benefits, and commissions associated with increased sales and continued investment in commercial and support functions
Current report
The increase also reflects a charge related to the write-off of a customer receivable recognized during the current quarter, partially offset by lower costs incurred in the prior year period related to product line discontinuation and integration activities
Current report
Sales, general, and administrative expense increased $3.5 million
Current report
Increase compared to the prior year period, primarily due to higher compensation, benefits, and commissions associated with increased sales and continued investment in commercial and support functions
Current report
The increase also reflects a charge related to the write-off of a customer receivable recognized during the current quarter, partially offset by lower costs incurred in the prior year period related to product line discontinuation and integration activities
Current report
Research and development expense was relatively consistent with the prior year period, as increased personnel-related costs were substantially offset by lower nonrecurring charges recognized in the prior year
Current report
Partially offset by an increase of $0.6 million in compensation and benefits expenses
Current report
Acquisition-related amortization, impairment, and remeasurement increased $0.8 million
Current report
Partially offset by a decrease of $0.9 million in amortization expense primarily resulting from impairments of certain acquired intangible assets recorded in the prior year
Current report
Acquisition-related amortization, impairment, and remeasurement decreased $13.2 million
Current report
Unfavorable change of $2.9 million associated with the receipt of Employee Retention Credit refunds received during the second quarter of 2025
Current report
Unfavorable change of $0.6 million associated with interest income earned on certain Employee Retention Credit refunds received during 2025 and 2026
Current report
Unfavorable change of $0.5 million in interest expense associated with finance lease obligations and the amortization of debt issuance costs
Current report
Unfavorable change of $2.9 million associated with the receipt of Employee Retention Credit refunds received during 2025
Current report
The increase in income tax expense (benefit) compared to the prior year period was primarily due to increased tax on foreign operations and tax expense related to certain long-lived intangible assets
Current report
Cash flows from operating activities decreased $17.1 million
Current report
Lattus Contingent Consideration
Current report
On July 1, 2026, we made an installment payment related to the Lattus Contingent Consideration of $5.1 million. For additional discussion of this matter, see Note 6 of the Notes to the Unaudited Condensed Consolidated Financial Statements.
Removed paragraphs (17)
Previous report
First quarter 2026 reported net sales of $196.7 million, including sales from M6 artificial cervical and lumbar discs. Non-GAAP pro forma net sales of $196.4 million, excluding sales from M6 discs, increased 3% year over year on a constant currency basis, reflecting steady execution during the final stages of distributor transitions, with further improvement expected as productivity increases.
Previous report
Global Spine Fixation delivered reported net sales growth of 6% and constant currency growth of 6% compared to the prior year period, including U.S. Spine Fixation growth of 4%, driven by enhanced commercial focus, deeper procedural penetration, and continuing benefits from distributor transition initiatives.
Previous report
Therapeutic Solutions (formerly Bone Growth Therapies) achieved year-over-year net sales growth of 5%, supported by continued demand across the portfolio and effective commercial execution.
Previous report
Global Limb Reconstruction reported net sales growth of 10% and constant currency growth of 3% compared to the prior year period, reflecting continued demand for core fixation and reconstruction systems.
Previous report
Net sales of $163.9 million, flat compared to the prior year period
Previous report
Net sales of $32.8 million, an increase of $3.0 million or 10.2% on a reported basis and 3.0% on a constant currency basis
Previous report
Gross profit increased $17.9 million
Previous report
Increase in gross profit of $12.4 million resulting from significant inventory reserve expenses recorded in the first quarter of 2025, primarily attributable to the discontinuation of the M6 product lines in order to focus resources and investments on more profitable growth opportunities
Previous report
Increase in gross profit also driven by reduced headcount, overhead costs, and depreciation, resulting from the discontinuation of the M6 product lines
Previous report
These changes were also partially offset by certain changes in geographical mix of net sales
Previous report
Sales, general, and administrative expense increased $1.9 million
Previous report
Increase of $2.9 million primarily driven by increased compensation and benefit costs, including variable compensation and share-based compensation expense
Previous report
Increase of $0.7 million in professional fees and insurance costs, mostly pertaining to an increase in accrued settlement fees and costs
Previous report
Partially offset by a decrease of $2.3 million in depreciation expense, mostly as a result of impairments incurred in the prior year as a result of the discontinuation of the M6 product lines
Previous report
Partially offset by an increase of $0.4 million in clinical studies and product development costs
Previous report
Acquisition-related amortization, impairment, and remeasurement decreased $14.0 million
Previous report
Cash flows used in operating activities decreased $0.8 million
Reworded paragraphs (36)
Previous wording
The following discussion and analysis of Orthofix Medical Inc.'s (sometimes referred to as "we," "us" or "our") financial condition and results of operations should be read in conjunction with the discussion under the heading "Forward-Looking Statements" and our condensed consolidated financial statements and related notes thereto appearing elsewhere in this Form 10-Q.
Current wording
The following discussion and analysis of Orthofix Medical Inc.'s (sometimes referred to as the "Company," "we," "us" or "our") financial condition and results of operations should be read in conjunction with the discussion under the heading "Forward-Looking Statements" and our condensed consolidated financial statements and related notes thereto appearing elsewhere in this Form 10-Q.
Previous wording
We are a global medical technology company dedicated to advancing healing and restoring mobility for patients with complex musculoskeletal conditions. Headquartered in Lewisville, Texas, we deliver technology-enabled solutions that support improved clinical outcomes and more efficient care across the continuum. We offer a focused and differentiated portfolio spanning spinal implants, therapeutic solutions, limb reconstruction systems, biologics and enabling technologies, including the 7D FLASH Navigation System. Learn more at Orthofix.com and follow Orthofix on LinkedIn. Information included on our website is not incorporated into, or otherwise creates a part of, this report.
Current wording
We are a global medical technology company dedicated to advancing healing and restoring mobility for patients with complex musculoskeletal conditions. Headquartered in Lewisville, Texas, we offer a differentiated portfolio of spinal implants, therapeutic solutions, limb reconstruction systems, biologics and enabling technologies, including the 7D FLASH Navigation System. Our technology-enabled solutions are designed to support surgeons across the continuum of care and improve outcomes for patients. Learn more at Orthofix.com and follow us on LinkedIn. Information included on our website is not incorporated into, nor does it otherwise create a part of, this report.
Previous wording
Notable financial metrics in the first quarter of 2026 and recent achievements include the following:
Current wording
Notable financial metrics in the second quarter of 2026 and recent achievements include the following:
Previous wording
First quarter 2026 reported net loss of $(20.9) million and non-GAAP pro forma adjusted EBITDA of $9.7 million, reflecting impacts from geography mix and commercial transitions.
Current wording
Second quarter 2026 reported net loss of $(15.8) million and non-GAAP adjusted EBITDA of $20.1 million.
Previous wording
Our operations are managed through two reporting segments: Global Spine and Global Limb Reconstruction. The following table provides net sales by product category and reporting segment:
Current wording
Our operations are managed through two reporting segments: Global Spine and Global Limb Reconstruction. The following tables provide net sales by product category and reporting segment:
Previous wording
Results above for each of Spinal Implants, Biologics, and Enabling Technologies; Global Spine; and pro forma net sales exclude the impact from discontinuation of the M6 product lines. Since pro forma net sales represent a non-GAAP measure, see the reconciliation above of the Company's pro forma net sales to its reported figures under U.S. GAAP. The Company's reported figures under U.S. GAAP represent each of the pro forma line items discussed above plus the impact from discontinuation of the M6 product lines.
Current wording
Results above for each of Spinal Implants, Biologics, and Enabling Technologies; Global Spine; and pro forma net sales exclude the impact from discontinuation of its M6-C artificial cervical disc and M6-L artificial lumbar disc product lines (together, the "M6 artificial discs" or "M6 product lines"). Since pro forma net sales represent a non-GAAP measure, see the reconciliation above of the Company's pro forma net sales to its reported figures under U.S. GAAP. The Company's reported figures under U.S. GAAP represent each of the pro forma line items discussed above plus the impact from discontinuation of the M6 product lines.
Previous wording
Spinal Implants, Biologics, and Enabling Technologies net sales, excluding sales from the M6 product lines, increased $1.5 million, or 1.4%, primarily due to increased sales growth from new and existing high-volume distributor partners within Spine Fixation, which saw growth in its cervical, thoracolumbar, and interbody franchises; growth in these areas was partially offset by a decline in Biologics and Enabling Technologies. The decrease in Enabling Technologies was due to the timing of revenue in the prior year from completed contracts under the Voyager Earnout program.
Current wording
Spinal Implants, Biologics, and Enabling Technologies net sales, excluding sales from the M6 product lines, increased $4.2 million, or 4.0%, primarily due to continued sales growth from our highest-volume distribution partners within Spine Fixation. Growth in these areas was partially offset by a decline in Enabling Technologies. This decrease in Enabling Technologies is primarily due to our deliberate strategy to prioritize the Voyager Earnout program, which incentivizes purchase commitments of our Spine Fixation and Biologics products over the term of each agreement, over the pursuit of capital sales
Previous wording
Therapeutic Solutions net sales increased $2.7 million, or 4.9%, largely driven by (i) favorable changes in average sales prices and (ii) increases in gross order volumes from our continued investment in our direct sales channels for both the spine and fracture markets
Current wording
Therapeutic Solutions net sales increased $4.3 million, or 3.7%, largely driven by increases in gross order volumes from our continued investment in our direct sales channels for both the spine and fracture markets, with this growth partially offset by unfavorable changes in average sales price as a result of billing requirement modifications and Medicare fee schedule changes instituted by CMS in May 2026 (these changes were then withdrawn by CMS on July 1, 2026)
Previous wording
Net sales from the M6 product lines decreased $4.2 million, or 94.2%, as a result of the discontinuation of the product lines in 2025 to focus resources and investments in more profitable growth opportunities
Current wording
Net sales from the M6 product lines decreased $6.6 million, or 95.3%, as a result of the discontinuation of the artificial disc product lines in 2025 to focus resources and investments in more profitable growth opportunities
Previous wording
U.S. net sales decline of $0.1 million, or 0.8%, largely due to timing of large capital sales orders, partially offset by growth from new products launched in the past three years
Current wording
U.S. net sales growth of $0.2 million, or 1.6%, largely due to growth from new products launched in the past three years, partially offset by the timing of large capital sales orders
Previous wording
Net sales increase of $2.2 million due to movement in foreign currency exchange rates, which had a favorable impact during the quarter
Current wording
Net sales increase of $0.7 million due to movement in foreign currency exchange rates, which had a favorable impact during the quarter
Previous wording
International sales increase of $3.1 million, or 4.6% on a constant currency basis, primarily driven by sales of new products launched in the past three years and partially offset by large tender orders in the prior year
Current wording
International sales increase of $4.5 million, or 10.1% on a constant currency basis, primarily driven by sales of new products launched in the past three years and partially offset by the timing of large tender orders and capital sales in the prior year
Previous wording
Decrease of $4.8 million related to impairments associated with the discontinuation of the M6 product lines and other organizational restructuring activities that occurred in 2025
Current wording
Decrease of $5.2 million related to impairments and costs associated with the discontinuation of the M6 product lines and other organizational restructuring activities that occurred in 2025
Previous wording
Partially offset by an increase of $1.4 million associated with the remeasurement of a contingent consideration obligation with Lattus Spine LLC assumed in the merger with SeaSpine Holdings Corporation (the "Merger")
Current wording
Increase of $1.6 million associated with the remeasurement of a contingent consideration obligation with Lattus Spine LLC ("Lattus") assumed in the merger with SeaSpine Holdings Corporation (the "Merger")
Previous wording
Decrease of $15.4 million in amortization expense primarily associated with the impairment of certain acquired intangible assets as a result of the discontinuation of the M6 product lines
Current wording
Decrease of $16.2 million in amortization expense primarily associated with the impairment of certain acquired intangible assets from the discontinuation of the M6 product lines
Previous wording
Interest expense, net increased $1.2 million
Current wording
Interest expense, net increased $2.1 million
Previous wording
Unfavorable change of $1.4 million attributable to an increase in interest expense following the funding of the $65.0 million Term B Loan in January 2026
Current wording
Unfavorable change of $1.2 million attributable to an increase in interest expense following the funding of the $65.0 million Term B Loan in January 2026
Previous wording
Partially offset by a favorable change of $0.2 million resulting from interest earned on certain Employee Retention Credit refunds received in the first quarter of 2026
Current wording
Unfavorable change of $0.8 million associated with interest earned on certain Employee Retention Credit refunds received during the second quarter of 2025
Previous wording
Other income (expense), net decreased $2.0 million
Current wording
Other income (expense), net decreased $6.5 million
Previous wording
Unfavorable change of $2.0 million associated with foreign currency exchange rates, as we recorded a non-cash remeasurement loss of $0.9 million in first quarter of 2026 compared to a gain of $1.1 million in the first quarter of 2025
Current wording
Unfavorable change of $3.5 million associated with foreign currency exchange rates, as we recorded a non-cash remeasurement loss of $0.7 million in second quarter of 2026 compared to a gain of $2.7 million in the second quarter of 2025
Previous wording
The decrease in income tax expense compared to the prior year period was primarily related to tax benefits on certain international operations
Current wording
The increase in income tax expense (benefit) compared to the prior year period was primarily due to increased tax on foreign operations and tax expense related to certain long-lived intangible assets
Previous wording
The primary factor affecting our tax expense for the first quarter of 2026 was tax amortization on certain acquired intangibles
Current wording
The primary factor affecting our tax expense for the second quarter of 2026 was tax amortization on certain acquired intangibles and financial statement losses for which no benefit is recognized
Previous wording
Cash, cash equivalents, and restricted cash at March 31, 2026, totaled $120.9 million compared to $85.1 million at December 31, 2025. The following table presents the net change in cash, cash equivalents, and restricted cash for the three months ended March 31, 2026, and 2025, respectively:
Current wording
Cash, cash equivalents, and restricted cash at June 30, 2026, totaled $104.4 million compared to $85.1 million at December 31, 2025. The following table presents the net change in cash, cash equivalents, and restricted cash for the six months ended June 30, 2026, and 2025, respectively:
Previous wording
Decrease in net loss of $32.2 million
Current wording
Improvement in net loss of $30.5 million
Previous wording
Decrease of $31.3 million associated with non-cash gains and losses, such as depreciation, amortization, and impairments, inventory reserve expenses, remeasurement of contingent consideration obligations, changes in the valuation of investment securities, and share-based compensation expense
Current wording
Decrease of $35.1 million associated with non-cash gains and losses, such as depreciation, amortization, and impairments, and inventory reserve expenses
Previous wording
Decrease of $0.1 million relating to changes in working capital accounts, primarily attributable to changes in accounts receivable, inventories, and other current liabilities
Current wording
Decrease of $12.5 million relating to changes in working capital accounts, primarily attributable to changes in accounts receivable, inventories, and accounts payable
Previous wording
Two of our primary working capital accounts are accounts receivable and inventory. Days sales in receivables were 63 days at March 31, 2026, compared to 61 days at March 31, 2025 (calculated using first quarter net sales and ending accounts receivable). Inventory turns decreased to 1.4 times as of March 31, 2026 compared to 1.5 times as of March 31, 2025 (calculated using trailing twelve-month cost of goods sold and ending net inventories).
Current wording
Two of our primary working capital accounts are accounts receivable and inventory. Days sales in receivables were 59 days as of June 30, 2026, compared to 58 days as of June 30, 2025 (calculated using second quarter net sales and ending accounts receivable). Inventory turns decreased to 1.3 times as of June 30, 2026 compared to 1.5 times as of June 30, 2025 (calculated using trailing twelve-month cost of goods sold and ending net inventories).
Previous wording
Cash flows used in investing activities increased $3.8 million
Current wording
Cash flows used in investing activities increased $9.3 million
Previous wording
Increase in spend of $3.9 million in capital expenditures and partially offset by decrease of $0.1 million in other investing activities
Current wording
Increase in spend of $9.5 million in capital expenditures and partially offset by an increase of $0.1 million in other investing activities
Previous wording
Cash flows from financing activities increased $64.6 million
Current wording
Cash flows from financing activities increased $64.4 million
Previous wording
Favorable change of $0.5 million in debt issuance costs associated with our credit facilities in the first quarter 2026 compared to the prior year period
Current wording
Favorable change of $0.5 million in debt issuance costs associated with our credit facilities in 2026 compared to the prior year period
Previous wording
On November 7, 2024, we entered into a $275.0 million secured credit agreement (the "Credit Agreement") with Oxford Finance LLC, as administrative agent and as collateral agent ("Oxford") and certain lenders party thereto, including Oxford, K2 HealthVentures LLC, and HSBC Ventures USA Inc. Certain of our foreign subsidiaries joined the Credit Agreement as guarantors shortly after the signing date. The Credit Agreement provides for a $160.0 million senior secured term loan (the "Initial Term Loan") and a $65.0 million senior secured delayed draw term loan facility (the "Term B Loan") which Term B Loan was fully funded on January 15, 2026. In addition, at Oxford's discretion, an additional $50.0 million of draw capacity is available through January 1, 2029 (the "Term C Loan" and, together with the Term B Loan, the "Delayed Draw Term Loans" and collectively with the Initial Term Loan, the "Credit Facilities").
Current wording
On November 7, 2024, we entered into a $275.0 million secured credit agreement (the "Credit Agreement") with Oxford Finance LLC, as administrative agent and as collateral agent ("Oxford") and certain lenders party thereto, including Oxford, K2 HealthVentures LLC, and HSBC Ventures USA Inc. Certain of our foreign subsidiaries joined the Credit Agreement as either a borrower or guarantor shortly after the signing date. The Credit Agreement provides for a $160.0 million senior secured term loan (the "Initial Term Loan") and a $65.0 million senior secured delayed draw term loan facility (the "Term B Loan") which Term B Loan was fully funded on January 15, 2026. In addition, at Oxford's discretion, an additional $50.0 million of draw capacity is available through January 1, 2029 (the "Term C Loan" and, together with the Term B Loan, the "Delayed Draw Term Loans" and collectively with the Initial Term Loan, the "Credit Facilities").
Previous wording
As of March 31, 2026, we had no borrowings on our available lines of credit in Italy, which provide up to an aggregate amount of €5.5 million ($6.4 million).
Current wording
As of June 30, 2026, we had no borrowings on our available lines of credit in Italy, which provide up to an aggregate amount of €5.5 million ($6.3 million).
Previous wording
Under the terms of a contingent consideration obligation in a purchase agreement assumed in the Merger, we may be required to make installment payments at certain dates based on future net sales of certain products (the "Lateral Products"). We made payments of $6.3 million under this arrangement during the year ended December 31, 2025. The estimated fair value of the remaining contingent consideration arrangement as of March 31, 2026, was $8.7 million. The actual amount ultimately paid could be higher or lower than the estimated fair value of the contingent consideration. As of March 31, 2026, we classified the remaining contingent consideration liability of $4.7 million and $4.0 million within other current liabilities and other long-term liabilities, respectively. For additional discussion of this matter, see Note 6 of the Notes to the Unaudited Condensed Consolidated Financial Statements.
Current wording
Under the terms of a contingent consideration obligation in a purchase agreement assumed in the Merger, we may be required to make installment payments to Lattus (the "Lattus Contingent Consideration") at certain dates based on future net sales of certain products (the "Lateral Products"). The estimated fair value of the Lattus Contingent Consideration as of June 30, 2026, was $9.5 million. The actual amount ultimately paid could be higher or lower than the estimated fair value of the Lattus Contingent Consideration. As of June 30, 2026, we classified the remaining Lattus Contingent Consideration liability of $9.5 million within other current liabilities.
Previous wording
There have been no material changes in any of our material contractual obligations as disclosed in our Form 10-K for the year ended December 31, 2025.
Current wording
There have been no material changes in any of our material contractual obligations as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025 ("2025 10-K").
Previous wording
Our discussion of operating results is based upon the condensed consolidated financial statements and accompanying notes. The preparation of these statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Our critical accounting estimates are described in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no significant changes to our critical accounting estimates during the quarter covered by this report.
Current wording
Our discussion of operating results is based upon the condensed consolidated financial statements and accompanying notes. The preparation of these statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Our critical accounting estimates are described in Item 7 of our 2025 10-K. There have been no significant changes to our critical accounting estimates during the quarter covered by this report.
Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
Net sales from the M6 product lines decreased $2.4 million, or 97.4%, as a result of the discontinuation of the M6 product lines in 2025 to focus resources and investments on more profitable growth opportunities
Current report — wording carried from elsewhere
International sales increase of $3.5 million, or 15.0% on a constant currency basis, primarily driven by sales of new products launched in the past three years
Current report — wording carried from elsewhere
Net sales increase of $2.9 million due to movement in foreign currency exchange rates, which had a favorable impact during the quarter
Current report — wording carried from elsewhere
Partially offset by an increase of $3.0 million associated with the remeasurement of a contingent consideration obligation with Lattus assumed in the Merger
Current report — wording carried from elsewhere
Interest expense, net increased $3.3 million
Current report — wording carried from elsewhere
Unfavorable change of $2.2 million attributable to an increase in interest expense following the funding of the $65.0 million Term B Loan in January 2026
Current report — wording carried from elsewhere
Other income (expense), net decreased $8.5 million
Current report — wording carried from elsewhere
Unfavorable change of $5.5 million associated with foreign currency exchange rates, as we recorded a non-cash remeasurement loss of $1.7 million in 2026 compared to a gain of $3.8 million in 2025
Current report — wording carried from elsewhere
The primary factor affecting our tax expense for the second quarter of 2026 was tax amortization on certain acquired intangibles and financial statement losses for which no benefit is recognized
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Lattus Spine LLC ("Lattus") Contingent Consideration