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Orthopedic, prosthetic & surgical appliances & supplies company · DE · FY ends Jan · Revenue $193M · -8.05% margin · -$16M FCF
The business is unprofitable at the operating level (-8.05% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue grew 15.2%, still solid. Margins contracted 2.5pp, which offsets some of the top-line progress.
ROIC dropped from -4.66% to -6.89%, capital efficiency is deteriorating. Negative free cash flow of -$16M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$193M
▲ +15.2% YoY
Net Income (TTM)
-$25M
▼ -40.0% YoY
Op. Margin
-8.05%
▼ -2.5pp YoY
ROIC
-6.89%
▼ -2.2pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$16M
▲ +5.7% YoY
Op. Cash Flow (TTM)
-$16M
▲ +0.8% YoY
Net Debt
$35M
Cash & Equiv.
$13M
5Y CAGR: +11.3%
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