Orthofix Medical Inc

Orthofix reported second quarter 2026 results with 5% pro forma constant currency net sales growth and raised its full-year outlook. The company now expects 2026 net sales of $845 million to $855 million and adjusted EBITDA of $95 million to $98 million, reflecting the restoration of Medicare reimbursement for bone growth stimulators and a strategic European distributor arrangement expected to add approximately $15 million in incremental net sales. CEO Massimo Calafiore highlighted double-digit growth in Global Limb Reconstruction and Spine Fixation, sequential improvement in Biologics, and the launch of AccelStim 2.0. CFO Julie Andrews noted that the European distributor deal will create a temporary free cash flow timing headwind in 2026 and an approximately $22 million net sales headwind in 2027. The company continues to face softness among smaller U.S. spine distributors, which is reflected in its second-half outlook.

Rewey Asset Management highlighted Orthofix Medical as an attractive investment after CMS reversed a reimbursement cut for non-invasive bone growth stimulator devices. The firm noted that Orthofix was its weakest performer in the first quarter of 2026 after CMS lowered reimbursement on May 21st, forcing the company to reduce its 2026 revenue guidance by $5 million and withdraw prior three-year targets. On July 1st, CMS completely reversed the code change, a net positive for Orthofix. Rewey Asset Management still forecasts revenue and earnings growth for Orthofix over the next few years and believes the share decline is overdone. Orthofix Medical shares closed at $11.02 on July 22, 2026, with a one-month return of 27.03% and a market capitalization of $441.80 million.

Innovative Eyewear shares surged 63% after the company reported preliminary second-quarter net sales of approximately $0.99 million, a 71% year-over-year increase, and announced new retail partnerships in Canada and the United States. The company received an initial purchase order from a Canadian optical retail group with 345 locations and was awarded a 50-store test with a major U.S. retailer, both expected to begin in the third quarter of 2026. Separately, Seer jumped 35% after its Chair and CEO proposed to acquire all outstanding Class A shares for $2.45 per share in cash plus two contingent value rights, with the board forming a special committee to evaluate the offer. Orthofix and Enovis rallied over 15% each after CMS withdrew reimbursement changes for non-invasive bone growth stimulators, restoring Medicare rates to pre-May 2026 levels. Other notable movers included YD Bio, up 23% on no specific news, and Adlai Nortye, which gained 15% amid progress updates on its cancer therapy pipeline.

Orthofix Medical shares rose about 10% in after-hours trading Thursday after the Centers for Medicare and Medicaid Services withdrew a final order that had reclassified non-invasive bone growth stimulators. The company said CMS released revised guidance on Wednesday stating the devices will be processed and paid consistent with the treatment in effect prior to the FDA reclassification. The earlier order would have negatively impacted billing requirements and Medicare fee schedules.

Orthofix shares ended the last trading session 5.1% higher at $9.78 on higher-than-average volume, driven by investor optimism over the company's solid first quarter of 2026 results. The medical device maker reported a loss per share of 52 cents and revenues of $196.7 million for the quarter. For the upcoming report, analysts expect a quarterly loss of $0.03 per share on revenues of $209.51 million, representing a 3.1% revenue increase year over year. The consensus earnings estimate for the quarter has remained unchanged over the last 30 days, and the stock currently carries a Zacks Rank of 3, or Hold.