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Revenue recognition and accounts receivable
 9 Months Ended
Sep. 30, 2025
Revenue Recognition And Accounts Receivable [Abstract]  
Revenue recognition and accounts receivable

9. Revenue recognition and accounts receivable

Revenue Recognition

The Company has two reporting segments: Global Spine and Global Orthopedics. Within the Global Spine reporting segment, there are two product categories: (i) Bone Growth Therapies, and (ii) Spinal Implants, Biologics, and Enabling Technologies.

The tables below present net sales by product category by reporting segment:

 

 

Three Months Ended September 30,

 

(Unaudited, U.S. Dollars, in thousands)

 

2025

 

 

2024

 

 

Change

 

Bone Growth Therapies

 

$

61,211

 

 

$

57,925

 

 

 

5.7

%

Spinal Implants, Biologics, and Enabling Technologies

 

 

110,852

 

 

 

108,179

 

 

 

2.5

%

Global Spine

 

 

172,063

 

 

 

166,104

 

 

 

3.6

%

Global Orthopedics

 

 

33,571

 

 

 

30,502

 

 

 

10.1

%

Net sales

 

$

205,634

 

 

$

196,606

 

 

 

4.6

%

 

 

 

Nine Months Ended September 30,

 

(Unaudited, U.S. Dollars, in thousands)

 

2025

 

 

2024

 

 

Change

 

Bone Growth Therapies

 

$

178,834

 

 

$

169,537

 

 

 

5.5

%

Spinal Implants, Biologics, and Enabling Technologies

 

 

326,889

 

 

 

325,894

 

 

 

0.3

%

Global Spine

 

 

505,723

 

 

 

495,431

 

 

 

2.1

%

Global Orthopedics

 

 

96,678

 

 

 

88,403

 

 

 

9.4

%

Net sales

 

$

602,401

 

 

$

583,834

 

 

 

3.2

%

Product Sales and Marketing Service Fees

The table below presents product sales and marketing service fees, which are both components of net sales:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Unaudited, U.S. Dollars, in thousands)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Product sales

 

$

193,813

 

 

$

184,040

 

 

$

566,841

 

 

$

545,288

 

Marketing service fees

 

 

11,821

 

 

 

12,566

 

 

 

35,560

 

 

 

38,546

 

Net sales

 

$

205,634

 

 

$

196,606

 

 

$

602,401

 

 

$

583,834

 

Product sales primarily consist of the sale of bone growth therapies devices, spinal implants, certain biologics, enabling technologies, and orthopedics products. Marketing service fees are received from MTF Biologics ("MTF") based on total sales of biologics tissues sourced from MTF and relate solely to the Global Spine reporting segment. The Company partners with MTF to provide certain allograft solutions for various spine, orthopedic and other bone repair needs, with this partnership allowing the Company to exclusively market certain biologic offerings.

Accounts receivable and related allowances

The following table provides a detail of changes in the Company's allowance for expected credit losses for the three and nine months ended September 30, 2025 and 2024:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Unaudited, U.S. Dollars, in thousands)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Allowance for expected credit losses beginning balance

 

$

8,909

 

 

$

8,368

 

 

$

7,418

 

 

$

7,130

 

Current period provision for expected credit losses

 

 

629

 

 

 

486

 

 

 

2,466

 

 

 

2,059

 

Write-offs charged against the allowance and other

 

 

(112

)

 

 

(1,118

)

 

 

(870

)

 

 

(1,321

)

Effect of changes in foreign exchange rates

 

 

(13

)

 

 

142

 

 

 

399

 

 

 

10

 

Allowance for expected credit losses ending balance

 

$

9,413

 

 

$

7,878

 

 

$

9,413

 

 

$

7,878