Orthofix Medical Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, showing notable improvements in revenue and profitability compared to the previous fiscal period. The company achieved net sales of $196.6 million for Q3 2024, a 6.8% increase from $184.0 million in Q3 2023. For the nine months ended September 30, 2024, net sales reached $583.8 million, up 6.9% from $546.2 million in the same period last year.

Gross profit for Q3 2024 was $135.1 million, reflecting a 12.8% increase from $119.8 million in Q3 2023. The gross profit margin improved to 68.7% of net sales, compared to 65.1% in the prior year. The company reported an operating loss of $18.9 million for Q3 2024, a reduction from a loss of $24.4 million in Q3 2023. The net loss for the quarter was $27.4 million, down from $28.9 million in the same period last year, resulting in a net loss per share of $(0.71) compared to $(0.77) in Q3 2023.

The company’s performance was bolstered by growth in its Global Spine segment, which saw net sales of $166.1 million in Q3 2024, a 7.6% increase from $154.4 million in Q3 2023. Bone Growth Therapies also contributed positively, with sales rising 8.6% to $57.9 million. The Global Orthopedics segment reported a modest increase of 2.9% in net sales for Q3 2024.

Orthofix's total assets decreased to $867.9 million as of September 30, 2024, from $925.3 million at the end of 2023, while total liabilities rose to $341.9 million from $326.6 million. The accumulated deficit increased significantly to $(247.0 million) from $(150.1 million) at the end of 2023, reflecting ongoing challenges in achieving profitability.

Strategically, the company completed an all-stock merger with SeaSpine on January 5, 2023, which has contributed to its revenue growth. However, SeaSpine also reported a net loss of $18.4 million for Q3 2024, slightly down from $19.2 million in Q3 2023. The merger has led to increased operational costs, including a rise in general and administrative expenses due to litigation and investigation-related costs.

In terms of cash flow, Orthofix reported net cash provided by operating activities of $2.1 million for the nine months ended September 30, 2024, a significant improvement from $(39.1) million in the same period last year. The company also announced a new $275 million credit facility to optimize its capital structure for long-term growth, replacing existing financing arrangements.

Overall, Orthofix Medical Inc. is navigating a complex landscape of growth and operational challenges, with strategic initiatives aimed at enhancing its market position and financial stability.