Orthofix Medical Inc. (OFIX) reported impressive financial results for the second quarter of 2024, driven by robust revenue growth and improved profitability. The company's net sales rose 6.2% year-over-year to $198.6 million, surpassing analysts' estimates of $195.2 million.
The Bone Growth Therapies and U.S. Spine Fixation segments were the standout performers, both registering a 12% increase in net sales compared to the same period last year. The company's Global Orthopedics segment also contributed to the growth, with net sales rising 5% on a reported basis and 6% on a constant currency basis.
Orthofix's adjusted EBITDA for the quarter stood at $16.6 million, a significant improvement from $9.9 million in Q2 2023. The adjusted EBITDA margin expanded by 310 basis points to 8.4%, reflecting the company's focus on operational efficiency and cost control measures.
Despite reporting a net loss of $33.4 million or $0.88 per share, the company's performance showed marked improvement compared to the prior year's net loss of $39.4 million or $1.07 per share.
Encouraged by the strong results, Orthofix raised its full-year 2024 revenue guidance to a range of $795 million to $800 million, up from the previous guidance of $790 million to $795 million. The company also increased its adjusted EBITDA guidance to $64 million to $69 million, from the earlier range of $62 million to $67 million.
Furthermore, Orthofix now expects to achieve positive free cash flow in the second half of 2024, earlier than initially anticipated, reflecting the company's improving financial position and cash flow generation capabilities.
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