Orthofix Medical Inc. (OFIX) Income Statement

Revenue growth settled into a 2-4% band beginning in 2025Q1 after running at 6-8% through 2024, suggesting the earlier trajectory was not sustained. Revenue peaked at $219.9M in 2025Q4 before declining roughly 10.7% sequentially to $196.7M in 2026Q1, which may reflect seasonal ordering patterns rather than deterioration, though the year-over-year pattern remains the more reliable signal. Against peer growth rates above 15%, the deceleration appears to represent share loss or a maturing product portfolio rather than market saturation alone, and investors should monitor whether 2026Q2's 3.8% marks a stabilization or a further step down.

The 62.8% margin in 2025Q1 and 64.6% in 2025Q4 sit well below the 67-69% band maintained through 2024, implying episodic cost inflation, promotional discounting, or unfavorable product mix that has not been structurally resolved. The recovery to 71% across 2026 quarters is encouraging but appears inconsistent with the underlying cost base, given that COGS swung from $77.9M in 2025Q4 to $57.2M in 2026Q1 on similar revenue. Critically, even at 71% gross margin, quarterly gross profit of roughly $145M cannot cover SG&A running near $135M plus R&D, so gross margin expansion alone is insufficient to restore profitability without material overhead reduction.

SG&A has held in a narrow $130-148M corridor while revenue growth slowed, indicating overhead is essentially fixed and incremental gross profit has not translated into operating income. R&D declined approximately 20% from $19.8M in 2024Q1 to $15.9M in 2026Q2, which may represent expense discipline but could also signal deferred pipeline investment — a trade-off that may pressure future revenue trajectory. The 2026Q2 SG&A figure is reported as zero in the data and should be treated as unavailable; the accompanying operating loss of $8.1M nonetheless implies commercial costs were incurred and simply not disclosed in the source table.

SG&A did not scale down with the slower revenue trajectory, hovering near $136M even as growth fell below 4%, implying the field force and commercial infrastructure are carried at full capacity regardless of volume realized. R&D moderation may free near-term margin but appears to reflect reduced investment rather than productivity gains, which investors should monitor as a potential trade-off against future revenue durability. The 2026Q2 SG&A figure is reported as zero and should be treated as data unavailable; drawing conclusions from its absence would be inappropriate given the operating loss still reported for that period.