v3.26.1
Business Segment
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Business Segment Business Segment
We operate and report our business as a single operating segment entity engaged in the development, manufacturing and sale on a global basis of surgical devices and related equipment. The Company derives revenue globally and manages the business on a consolidated basis due to shared infrastructure and resources. Our chief operating decision maker ("CODM"), the President and Chief Executive Officer, evaluates the various global product portfolios on a net sales basis and evaluates profitability, investment, cash flow metrics and allocates resources on a consolidated worldwide basis.
Our product lines consist of orthopedic surgery and general surgery. Orthopedic surgery consists of sports medicine and lower extremities instrumentation and implants, small bone, large bone and specialty powered surgical instruments as well as imaging systems for use in minimally invasive surgical procedures and fees related to sales representation, promotion and marketing of sports medicine allograft tissue. General surgery consists of a complete line of endo-mechanical instrumentation for minimally invasive laparoscopic procedures, clinical insufflation, smoke evacuation devices, a line of cardiac monitoring products as well as electrosurgical generators and related instruments. These product lines' net sales are as follows:
Three Months Ended June 30,Six Months Ended June 30,
 2026202520262025
Orthopedic surgery$152,315 $140,734 $299,978 $279,024 
General surgery191,173 201,611 360,556 384,576 
Consolidated net sales$343,488 $342,345 $660,534 $663,600 
The following table includes significant segment expenses:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Net sales
$343,488 $342,345 $660,534 $663,600 
Cost of sales(a)
146,030 154,025 279,629 297,529 
Salesforce and commission expense
59,150 58,923 117,367 116,355 
Marketing expense
19,178 16,992 37,292 32,867 
Distribution expense
14,168 13,152 27,423 25,185 
General and administrative expense
31,143 33,016 63,537 65,670 
Stock-based compensation expense
5,230 4,903 10,732 18,766 
Amortization expense
7,237 7,192 14,498 14,364 
Non-cash adjustments to fair value of contingent consideration liability(113)(1,799)610 2,163 
Research and development expense(b)
15,500 14,138 31,833 27,084 
Interest expense
7,883 7,824 14,943 16,110 
Other (income)/expense(2,825)418 (2,825)418 
Provision for income taxes
8,276 8,498 12,803 10,134 
Other segment items(c)
9,560 3,642 15,793 9,498 
Net income
$23,071 $21,421 $36,899 $27,457 
(a)Cost of sales in 2026 includes a charge for inventory, equipment, and tooling related to the discontinuation of certain products for the three and six months ended June 30, 2026 and a benefit from the early termination of our distribution agreement with W.L. Gore & Associates, Inc for the six months ended June 30, 2026.

(b)Research and development expense includes costs to comply with the European Union's Medical Device Regulations in the three and six months ended June 30, 2026.

(c)Other segment items consist of (i) consulting fees, legal fees, and other costs related to operational optimization in the three and six months ended June 30, 2026 and 2025; (ii) cash compensation costs related to advisory services provided by our former Chief Financial Officer and Chief Executive Officer in the six months ended June 30, 2026 and 2025, respectively; (iii) loss from the sale of additional assets related to the gastroenterology product offerings which was recorded as a sale of a business in the three and six months ended June 30, 2026; (iv) a gain from the sale of certain assets related to gastroenterology products in the three and six months ended June 30, 2026; (v) third party services pertaining to the review of potential issues with certain royalty payments to surgeons involved in design teams in three and six months ended June 30, 2025; and (vi) gain on the sale of a product offering in the six months ended June 30, 2025.
Total assets for the Company's single operating segment are the same as presented on the Company's consolidated balance sheet, which is used to measure segment performance.