Orthofix Medical (OFIX) Canaccord Genuity 44th Annual Growth Conference & Private Company Showcase summary

Business overview and strategy

• Operates in five markets: biologics, spinal implants, enabling technology, bone growth therapy, and orthopedics, leveraging synergies across segments.

• Targets a $7 billion addressable market with a comprehensive portfolio and aims for above-market growth with responsible capital allocation.

• Focuses on profitable growth, balancing innovation and value creation, positioning as an alternative to both high-growth and large, slow-growth medtech firms.

• Emphasizes horizontal synergies and multiple surgeon touchpoints to deepen account relationships and increase revenue per case.

• New leadership team with over 250 years of combined experience, aiming to stabilize and grow the company.

Innovation and product differentiation

• 7D navigation system with proprietary Flash technology enables spine mapping in under a minute, offering significant OR efficiency.

• 7D platform is highly differentiable, providing speed, ease of use, and potential for future add-on developments.

• Strategic innovation focus includes investment in lucrative spine deformity markets and leveraging technology for continuum of care.

• Flexible capital sales approach for hospitals, including earn-out models to increase long-term account stickiness.

Financial performance and outlook

• Achieved beat-and-raise quarters, with strong demand and improved execution driving increased revenue guidance for the second half.

• Expects positive free cash flow in the second half, driven by EBITDA growth, working capital improvements, and DSO/inventory efficiencies.

• Ended Q2 with just under $29 million in cash, nearly break-even free cash flow, and expects to be free cash flow positive for 2025.

• Achieved $38 million in merger synergies to date, with the remaining $12 million expected from gross margin improvements into 2025.