Core Insights - OrthoPediatrics reported Q2 2025 GAAP revenue of $61.1 million, slightly below Wall Street's estimate of $61.47 million, while adjusted loss per share narrowed to ($0.11), beating expectations by $0.18 [1][2][10] - The company continues to experience year-over-year growth across core segments, although higher operating expenses have resulted in a net loss position [1][8] Financial Performance - Q2 2025 metrics include a 15.7% year-over-year revenue increase from $52.8 million in Q2 2024, and a gross profit of $44.0 million, up 7.8% from the previous year [2][5] - Adjusted EBITDA improved to $4.1 million, a 57.7% increase year-over-year, while operating expenses grew 17.6% to $54.7 million, leading to an operating loss of $10.6 million [2][10] - The company reported a net loss of $7.1 million in Q2 2025, compared to $6.0 million a year earlier [8][10] Business Overview - OrthoPediatrics specializes in pediatric orthopedic devices, focusing on trauma, deformity correction, scoliosis solutions, and sports medicine devices, addressing a market gap for children [3][4] - The company emphasizes innovation through rapid product development and strategic acquisitions, aiming to enhance its portfolio and market penetration [4] Product Performance - Trauma and deformity correction products generated $41.7 million in Q2 2025, while scoliosis sales reached $18.5 million, growing 34% year-over-year [7] - Specialty bracing under the OPSB division expanded over 20% year-over-year, while sports medicine revenue decreased by 25% [7] International and Domestic Revenue - U.S. revenue contributed $48.1 million, while international revenue was $13.0 million, up from $11.6 million a year earlier, despite slower sales in Latin America [5][6] Outlook and Guidance - Management raised full-year 2025 revenue guidance to $236 to $242 million, implying 16% to 18% growth, and reaffirmed a gross margin range of 72% to 73% [12][13] - The company aims for positive free cash flow in Q4 2025 and breakeven by 2026, with a focus on cash discipline and sustainable profitability [13][14]

Core Insights - OrthoPediatrics reported revenue of $61.08 million for the quarter ended June 2025, reflecting a year-over-year increase of 15.7% [1] - The company's EPS was -$0.11, an improvement from -$0.23 in the same quarter last year, with a surprise of +35.29% compared to the consensus estimate of -$0.17 [1] - The revenue fell short of the Zacks Consensus Estimate of $61.7 million, resulting in a surprise of -1% [1] Revenue Performance - Product sales in the Trauma and deformity category reached $41.67 million, below the three-analyst average estimate of $44.58 million, marking a year-over-year increase of 10.3% [4] - Sales in the Sports medicine/other category were $0.91 million, significantly lower than the $1.18 million average estimate, representing a year-over-year decline of 32.9% [4] - Scoliosis product sales amounted to $18.52 million, exceeding the average estimate of $15.95 million, with a year-over-year increase of 35.4% [4] Stock Performance - Over the past month, OrthoPediatrics shares have returned -3.3%, contrasting with the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Company Performance - OrthoPediatrics reported a quarterly loss of $0.11 per share, better than the Zacks Consensus Estimate of a loss of $0.17, and an improvement from a loss of $0.23 per share a year ago, resulting in an earnings surprise of +35.29% [1] - The company posted revenues of $61.08 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 1%, but showing an increase from year-ago revenues of $52.8 million [2] - Over the last four quarters, OrthoPediatrics has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Stock Outlook - OrthoPediatrics shares have declined approximately 11.4% since the beginning of the year, contrasting with the S&P 500's gain of 7.6% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at -$0.14 on revenues of $63.72 million, and -$1.24 on revenues of $239.45 million for the current fiscal year [7] Industry Context - The Medical - Instruments industry, to which OrthoPediatrics belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact OrthoPediatrics' stock performance [5]

Financial Data and Key Metrics Changes - In Q2 2025, worldwide revenue reached $61.1 million, a 16% increase compared to 2024, driven by strong performance across Trauma and Deformity, Scoliosis, and OPSB [26][27] - US revenue was $48.1 million, a 17% increase from 2024, representing 79% of total revenue [26] - International revenue totaled $12.9 million, reflecting a 12% growth compared to 2024, accounting for 21% of total revenue [27] - Gross profit margin decreased to 72% from 77% in 2024, primarily due to higher 7D growth and increased international set sales [28] - Adjusted EBITDA improved to $4.1 million, a 50% increase from $2.6 million in 2024 [32] Business Line Data and Key Metrics Changes - Trauma and Deformity global revenue was $41.7 million, a 10% increase year-over-year, driven by PMP femur, PMP tibia, DF2, and OPSB [27] - Scoliosis global revenue reached $18.5 million, a 35% increase compared to the prior year, driven by increased sales of Response, ApiFix, and 7D Technology [27][28] - The OPSB business grew over 20%, surpassing initial guidance for 2025 territory expansion [14][20] Market Data and Key Metrics Changes - International sales were solid, particularly in Europe and the Middle East, with strong surgical demand [6][23] - The company achieved its first EU MDR approval through LP Canada, which is expected to catalyze future growth [24] Company Strategy and Development Direction - The company is focused on expanding its OPSB strategy through territory expansion, accelerated R&D, and scaling its sales force [14][20] - The 3P pediatric plating platform is expected to enhance market share in trauma and limb deformity, with multiple new systems planned for launch [13][89] - The company is committed to helping more children and significantly growing revenue while improving adjusted EBITDA and reducing cash burn [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong momentum throughout 2025, driven by successful scaling of OPSB and innovative product launches [8][9] - The company raised its revenue guidance for 2025 to a range of $237 million to $242 million, representing year-over-year growth of 16% to 18% [33] Other Important Information - The company hosted 182 unique training experiences for over 3,420 healthcare professionals in Q2 2025 [25] - The company ended Q2 2025 with $72.2 million in cash, short-term investments, and restricted cash [32] Q&A Session Summary Question: Can you discuss the clinic strategy and the performance of existing clinics? - Management noted that existing clinics are seeing growth due to investments made on the sales side, while new Greenfield clinics are contributing to revenue but not yet at maximum volume [39][40] Question: Can you provide insights on the Scoliosis and T&D business growth expectations for the second half of the year? - Management expects Scoliosis growth to remain strong, potentially exceeding overall company growth, while T&D growth may be lighter due to previous quarter comparisons [45] Question: What caused the selective case slowdown in the limb deformity segment? - Management indicated that the volume was lighter in the first part of Q2 but rebounded strongly in June, attributing the fluctuation to normal business ebbs and flows [49][50] Question: How is the international product expansion strategy structured? - Management stated that international growth is expected to outpace US growth, with new product launches planned on a quarterly basis following EU MDR approvals [64][66] Question: What are the expectations for the trauma portfolio and potential product gaps? - Management highlighted the introduction of the 3P system as a significant opportunity to fill gaps in the trauma and deformity market, with plans for multiple system launches over the next few years [88][89]

2025 Investor Presentation www.OrthoPediatrics.com Disclaimer Forward-Looking Statements All statements, other than statements of historical facts, contained in this quarterly report, including statements regarding our business, operations and financial performance and condition, as well as our plans, objectives and expectations for our business, operations and financial performance and condition, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "ma ...

[Company Overview and Q2 2025 Highlights](index=1&type=section&id=Company%20Overview%20and%20Q2%202025%20Highlights) OrthoPediatrics Corp. reported strong Q2 2025 results, achieving record revenue of $61.1 million, a 16% increase year-over-year, fueled by robust procedure and clinic volumes and market share gains across key segments [Second Quarter 2025 and Business Highlights](index=1&type=section&id=Second%20Quarter%202025%20and%20Business%20Highlights) OrthoPediatrics Corp. reported strong Q2 2025 results, achieving record revenue of $61.1 million, a 16% increase year-over-year, fueled by robust procedure and clinic volumes and market share gains across key segments like Scoliosis and Trauma - OrthoPediatrics achieved record Q2 2025 total revenue of **$61.1 million**, marking a **16% increase year-over-year**, driven by strong procedure and clinic volumes and market share gains[3](index=3&type=chunk)[4](index=4&type=chunk)[5](index=5&type=chunk) - Adjusted EBITDA increased by **58% to $4.1 million** in Q2 2025, compared to $2.6 million in Q2 2024[1](index=1&type=chunk)[5](index=5&type=chunk)[14](index=14&type=chunk) - The company expanded its OrthoPediatrics Specialty Bracing Division (OPSB) with multiple new clinics and entry into two new territories, including its first international operation in Ireland[3](index=3&type=chunk)[5](index=5&type=chunk) - Full year 2025 revenue guidance was increased to a range of **$237.0 million to $242.0 million** from a range of $236.0 million to $242.0 million, representing **16% to 18% growth** over 2024[5](index=5&type=chunk)[16](index=16&type=chunk) [Second Quarter 2025 Financial Results Summary](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results%20Summary) Total revenue for Q2 2025 reached $61.1 million, a 16% increase year-over-year, with U.S. revenue growing 17% and international revenue increasing 12%, primarily fueled by strong performance in Scoliosis and Trauma & Deformity [Revenue Performance](index=1&type=section&id=Revenue%20Performance) Total revenue for Q2 2025 reached $61.1 million, a 16% increase year-over-year, with U.S. revenue growing 17% to $48.1 million and international revenue increasing 12% to $12.9 million, driven by strong performance in Scoliosis and Trauma & Deformity [Total and Geographic Revenue](index=1&type=section&id=Total%20and%20Geographic%20Revenue) Total revenue for Q2 2025 reached a record $61.1 million, a 16% increase from the prior year, with domestic revenue growing 17% to $48.1 million and international revenue increasing 12% to $12.9 million | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | % of Total Revenue (Q2 2025) | | :----- | :----------------- | :----------------- | :--------- | :----------------------------- | | Total Revenue | $61.1 | $52.8 | 16% | 100% | | U.S. Revenue | $48.1 | $41.2 | 17% | 79% | | International Revenue | $12.9 | $11.6 | 12% | 21% | [Product Category Revenue](index=2&type=section&id=Product%20Category%20Revenue) Scoliosis revenue showed the strongest growth, increasing 35% to $18.5 million, driven by new product sales and 7D technology, while Trauma and Deformity revenue grew 10% to $41.7 million | Product Category | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | | :--------------- | :----------------- | :----------------- | :--------- | | Trauma and Deformity | $41.7 | $37.8 | 10% | | Scoliosis | $18.5 | $13.7 | 35% | | Sports Medicine/Other | $0.9 | $1.3 | -33% | - Growth in Scoliosis was driven by increased sales of Response and ApiFix non-fusion system, and revenue generated from 7D technology[7](index=7&type=chunk) - Trauma and Deformity growth was primarily driven by PNP Femur, PNP Tibia, DF2, and OPSB products[7](index=7&type=chunk) [Profitability and Operating Expenses](index=2&type=section&id=Profitability%20and%20Operating%20Expenses) Gross profit increased by 8% to $44.0 million, but the gross profit margin declined to 72% due to higher 7D growth and international Scoliosis set sales, leading to an increased net loss of $7.1 million, despite a 58% increase in Adjusted EBITDA to $4.1 million | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | | :----- | :----------------- | :----------------- | :--------- | | Gross Profit | $44.0 | $40.8 | 8% | | Gross Profit Margin | 72% | 77% | -5 ppts | | Net Loss | ($7.1) | ($6.0) | -18.3% | | GAAP Diluted Loss Per Share | ($0.30) | ($0.26) | -15.4% | | Non-GAAP Diluted Loss Per Share | ($0.11) | ($0.23) | 52.2% | | Adjusted EBITDA | $4.1 | $2.6 | 58% | - The decrease in gross margin was primarily driven by higher 7D growth and increased international Scoliosis set sales, both of which generate lower gross margins[8](index=8&type=chunk) - Total operating expenses increased by **18%** due to restructuring charges (**$3.0 million**), increased non-cash stock compensation, and additional personnel to support company growth, including OPSB clinics[9](index=9&type=chunk)[12](index=12&type=chunk) [Gross Profit and Margin](index=2&type=section&id=Gross%20Profit%20and%20Margin) Gross profit for Q2 2025 was $44.0 million, an 8% increase year-over-year, but the gross profit margin decreased to 72% from 77% due to higher growth of 7D technology and international Scoliosis set sales | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | | :----- | :----------------- | :----------------- | :--------- | | Gross Profit | $44.0 | $40.8 | 8% | | Gross Profit Margin | 72% | 77% | -5 ppts | - The decline in gross margin was mainly attributed to higher 7D growth and increased international Scoliosis set sales, which generate lower gross margins[8](index=8&type=chunk) [Operating Expenses Breakdown](index=2&type=section&id=Operating%20Expenses%20Breakdown) Total operating expenses rose 18% to $54.7 million, driven by increases in sales and marketing (15% to $19.1 million) and general and administrative expenses (11% to $30.4 million), alongside $3.0 million in restructuring charges | Expense Category | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | | :--------------- | :----------------- | :----------------- | :--------- | | Total Operating Expenses | $54.7 | $46.5 | 18% | | Sales and Marketing | $19.1 | $16.6 | 15% | | General and Administrative | $30.4 | $27.3 | 11% | | Research and Development | $2.2 | $2.5 | -15% | | Restructuring Charges | $3.0 | $0.0 | N/A | - The increase in total operating expenses was mainly driven by restructuring charges, increased non-cash stock compensation, and incremental personnel to support ongoing growth, including OPSB clinics[9](index=9&type=chunk)[11](index=11&type=chunk) [Net Loss and Adjusted EBITDA](index=2&type=section&id=Net%20Loss%20and%20Adjusted%20EBITDA) The company reported a net loss of $7.1 million for Q2 2025, an increase from $6.0 million in Q2 2024, with GAAP diluted loss per share at ($0.30), while non-GAAP diluted loss per share improved to ($0.11) and Adjusted EBITDA increased 58% to $4.1 million | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | | :----- | :----------------- | :----------------- | :--------- | | Net Loss | ($7.1) | ($6.0) | -18.3% | | GAAP Diluted Loss Per Share | ($0.30) | ($0.26) | -15.4% | | Non-GAAP Diluted Loss Per Share | ($0.11) | ($0.23) | 52.2% | | Adjusted EBITDA | $4.1 | $2.6 | 58% | - Total other income was **$3.6 million** for Q2 2025, a significant improvement from an expense of $0.4 million in the prior year, primarily driven by an increase in foreign exchange translation gain[12](index=12&type=chunk) [Financial Position and Cash Flows](index=2&type=section&id=Financial%20Position%20and%20Cash%20Flows) As of June 30, 2025, cash, cash equivalents, short-term investments, and restricted cash totaled $72.2 million, a slight increase from $70.8 million at the end of 2024 | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | Change | | :----- | :----------------------- | :--------------------------- | :----- | | Cash, Cash Equivalents, Short-term Investments, and Restricted Cash | $72.2 | $70.8 | +$1.4M | - Weighted average basic and diluted shares outstanding for the three months ended June 30, 2025, was **23,460,144 shares**[15](index=15&type=chunk) [Full Year 2025 Financial Guidance](index=3&type=section&id=Full%20Year%202025%20Financial%20Guidance) OrthoPediatrics increased its full-year 2025 revenue guidance to a range of $237.0 million to $242.0 million, representing 16% to 18% growth over 2024, while reiterating its annual set deployment target and adjusted EBITDA guidance | Metric | Previous Guidance (Millions) | Updated Guidance (Millions) | Growth vs 2024 | | :----- | :--------------------------- | :-------------------------- | :------------- | | Revenue | $236.0 - $242.0 | $237.0 - $242.0 | 16% - 18% | | Annual Set Deployment | $15.0 | $15.0 (Reiterated) | N/A | | Adjusted EBITDA | $15.0 - $17.0 | $15.0 - $17.0 (Reiterated) | N/A | [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the company's balance sheets, statements of operations, and cash flows, along with detailed revenue breakdowns by geography and product category [Condensed Consolidated Balance Sheets](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, total assets increased to $503.6 million from $473.2 million at December 31, 2024, primarily driven by increases in current assets, while total liabilities also increased significantly to $148.1 million due to a rise in long-term loans | Metric | June 30, 2025 (Thousands) | December 31, 2024 (Thousands) | Change | | :----- | :------------------------ | :---------------------------- | :----- | | Total Assets | $503,606 | $473,209 | +$30,397 | | Total Liabilities | $148,092 | $118,643 | +$29,449 | | Total Stockholders' Equity | $355,514 | $354,566 | +$948 | | Cash | $44,553 | $43,820 | +$733 | | Accounts Receivable - trade, net | $53,797 | $42,357 | +$11,440 | | Inventories, net | $125,265 | $117,005 | +$8,260 | | Long-term loan | $47,942 | $23,957 | +$23,985 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For the three months ended June 30, 2025, net revenue increased 16% to $61.1 million, but net loss widened to $7.1 million from $6.0 million in the prior year, primarily due to higher cost of revenue, increased operating expenses, and higher interest expense | Metric | 2025 (Thousands) | 2024 (Thousands) | YoY Change | | :----- | :--------------- | :--------------- | :--------- | | Net revenue | $61,082 | $52,802 | 16% | | Cost of revenue | $17,063 | $12,003 | 42.2% | | Gross profit | $44,019 | $40,799 | 8% | | Total operating expenses | $54,676 | $46,465 | 17.7% | | Operating loss | ($10,657) | ($5,666) | -88.1% | | Net loss | ($7,113) | ($6,029) | -18.0% | | Net loss per share – basic and diluted | ($0.30) | ($0.26) | -15.4% | - Other (income) expense significantly improved to **($4,709) thousand** in Q2 2025 from $120 thousand expense in Q2 2024, contributing positively to the bottom line despite other cost increases[26](index=26&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, net cash used in operating activities increased to ($14.6) million, investing activities resulted in ($9.5) million cash used, and financing activities provided $24.7 million, primarily from debt issuance | Metric | 2025 (Thousands) | 2024 (Thousands) | Change | | :----- | :--------------- | :--------------- | :----- | | Net cash used in operating activities | ($14,618) | ($12,782) | ($1,836) | | Net cash used in investing activities | ($9,532) | $16,018 | ($25,550) | | Net cash used in financing activities | $24,674 | ($4,842) | $29,516 | | Net decrease in cash, cash equivalents and restricted cash | $828 | ($2,137) | $2,965 | | Cash, cash equivalents and restricted cash, end of period | $46,605 | $30,890 | $15,715 | - The significant change in investing activities was due to the absence of sales of short-term marketable securities (which provided **$49.8 million** in 2024) and new investments in private companies (**$1.5 million**) and clinic acquisitions (**$0.3 million**) in 2025[28](index=28&type=chunk) - Financing activities were positively impacted by **$25.0 million** in proceeds from the issuance of debt in 2025[28](index=28&type=chunk) [Net Revenue by Geography and Product Category](index=9&type=section&id=NET%20REVENUE%20BY%20GEOGRAPHY%20AND%20PRODUCT%20CATEGORY) For the six months ended June 30, 2025, total net revenue increased to $113.5 million, with U.S. revenue at $89.0 million and international revenue at $24.5 million, while Trauma and Deformity remained the largest category at $79.5 million | Geographic Location | 2025 (Thousands) | 2024 (Thousands) | | :------------------ | :--------------- | :--------------- | | U.S. | $89,039 | $75,554 | | International | $24,454 | $21,933 | | Total | $113,493 | $97,487 | | Product Category | 2025 (Thousands) | 2024 (Thousands) | | :--------------- | :--------------- | :--------------- | | Trauma and deformity | $79,521 | $71,073 | | Scoliosis | $32,186 | $23,886 | | Sports medicine/other | $1,786 | $2,528 | | Total | $113,493 | $97,487 | [Non-GAAP Financial Measures Reconciliation](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section provides reconciliations of GAAP net loss and diluted loss per share to their non-GAAP adjusted counterparts, highlighting key adjustments [Reconciliation of Net Loss to Non-GAAP Adjusted EBITDA](index=10&type=section&id=RECONCILIATION%20OF%20NET%20LOSS%20TO%20NON-GAAP%20ADJUSTED%20EBITDA) For the three months ended June 30, 2025, Adjusted EBITDA was $4.1 million, a significant increase from $2.6 million in the prior year, achieved by adjusting net loss for interest expense, depreciation, stock-based compensation, restructuring charges, and other income | Metric | 2025 (Thousands) | 2024 (Thousands) | | :----- | :--------------- | :--------------- | | Net loss | ($7,113) | ($6,029) | | Interest expense, net | $1,116 | $261 | | Other income | ($4,709) | $120 | | Income tax charge (benefit) | $49 | ($18) | | Depreciation and amortization | $5,170 | $4,779 | | Stock-based compensation | $5,252 | $2,939 | | Restructuring charges | $2,971 | — | | Tariff cost | $648 | — | | Acquisition related costs | $474 | $142 | | Minimum purchase commitment cost | $269 | $433 | | Adjusted EBITDA | $4,127 | $2,627 | [Reconciliation of Diluted Loss Per Share to Non-GAAP Adjusted Diluted Loss Per Share](index=10&type=section&id=RECONCILIATION%20OF%20DILUTED%20LOSS%20PER%20SHARE%20TO%20NON-GAAP%20ADJUSTED%20DILUTED%20LOSS%20PER%20SHARE) Non-GAAP diluted loss per share for Q2 2025 improved to ($0.11) from ($0.23) in Q2 2024, primarily due to adjustments for restructuring charges, tariff costs, acquisition-related costs, and minimum purchase commitment costs | Metric | 2025 | 2024 | | :----- | :--- | :--- | | Loss per share, diluted (GAAP) | ($0.30) | ($0.26) | | Restructuring charges | $0.13 | — | | Tariff cost | $0.03 | — | | Acquisition related costs | $0.02 | $0.01 | | Minimum purchase commitment cost | $0.01 | $0.02 | | Loss per share, diluted (non-GAAP) | ($0.11) | ($0.23) | [Additional Company Information](index=3&type=section&id=Additional%20Company%20Information) This section provides background on OrthoPediatrics, details on its conference call, forward-looking statement disclaimers, and explanations of non-GAAP financial measures [About OrthoPediatrics Corp.](index=4&type=section&id=About%20OrthoPediatrics%20Corp.) Founded in 2006, OrthoPediatrics is an orthopedic company exclusively focused on advancing pediatric orthopedics, offering 82 systems across trauma and deformity, scoliosis, and sports medicine/other procedures, distributed globally in over 75 countries - OrthoPediatrics, founded in 2006, is exclusively focused on pediatric orthopedics, offering **82 systems** across trauma and deformity, scoliosis, and sports medicine/other procedures[21](index=21&type=chunk) - The company's global sales organization distributes products in the United States and over **75 other countries**[21](index=21&type=chunk) [Conference Call](index=3&type=section&id=Conference%20Call) OrthoPediatrics will host a conference call on Tuesday, August 5, 2025, at 4:30 p.m. ET to discuss the Q2 2025 financial results, with a live and archived webcast available on the company's investor relations website - A conference call to discuss Q2 2025 results will be held on **August 5, 2025, at 4:30 p.m. ET**, with a webcast available on www.orthopediatrics.com[17](index=17&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements subject to risks and uncertainties, including those related to widespread health emergencies and factors detailed in the company's SEC filings, with OrthoPediatrics disclaiming any obligation to update these statements - The press release includes forward-looking statements, identifiable by words like 'expect,' 'plan,' 'anticipate,' and 'will,' which involve risks and uncertainties beyond the company's control[18](index=18&type=chunk) - Important factors that could cause actual results to differ materially are detailed under 'Risk Factors' in OrthoPediatrics' Annual Report on Form 10-K and other SEC reports[18](index=18&type=chunk) [Use of Non-GAAP Financial Measures](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) The company uses non-GAAP financial measures like Adjusted EBITDA and adjusted diluted loss per share to provide investors with a clearer view of its core operating performance, excluding certain non-recurring or non-cash expenses, emphasizing their supplemental nature to GAAP results - Non-GAAP financial measures, including Adjusted EBITDA and adjusted diluted loss per share, are used to provide a more consistent analysis of core business operating performance by excluding items like restructuring charges, stock-based compensation, and acquisition-related costs[19](index=19&type=chunk)[20](index=20&type=chunk) - Management uses these metrics for operating performance evaluation and planning, but emphasizes that they are supplemental and should not be considered superior to GAAP measures[19](index=19&type=chunk)[20](index=20&type=chunk) [Investor Contact](index=4&type=section&id=Investor%20Contact) For investor inquiries, contact Philip Trip Taylor of Gilmartin Group via email at philip@gilmartinir.com or by phone at 415-937-5406 - Investor contact information is provided for Philip Trip Taylor of Gilmartin Group[22](index=22&type=chunk) [Supplemental Disclosures](index=8&type=section&id=SUPPLEMENTAL%20DISCLOSURES) Supplemental disclosures for the six months ended June 30, 2025, include cash paid for interest of $2.55 million, transfer of instruments from property and equipment and inventory of $0.65 million, and various issuances of common shares for installments and vendor obligations | Metric | 2025 (Thousands) | 2024 (Thousands) | | :----- | :--------------- | :--------------- | | Cash paid for interest | $2,552 | $760 | | Transfer of instruments from property and equipment and inventory | $651 | $281 | | Issuance of common shares for MedTech installment | $226 | $133 | | Issuance of common shares to settle an obligation with a vendor | $1,261 | — | | Right-of-use assets obtained in exchange for lease liabilities | $3,311 | — |

Core Insights - OrthoPediatrics Corp. reported a record revenue of $61.1 million for Q2 2025, marking a 16% increase year-over-year, with adjusted EBITDA rising by 58% to $4.1 million [1][4][8] Financial Performance - Total revenue for Q2 2025 was $61.1 million, up from $52.8 million in Q2 2024, driven by strong growth in Scoliosis, Trauma, and OPSB products [4][8] - U.S. revenue reached $48.1 million, a 17% increase from $41.2 million in the same quarter last year, accounting for 79% of total revenue [4][8] - International revenue was $12.9 million, a 12% increase from $11.6 million year-over-year [4][8] - Trauma and Deformity revenue grew by 10% to $41.7 million, while Scoliosis revenue surged by 35% to $18.5 million [5][8] - Gross profit for Q2 2025 was $44.0 million, an 8% increase from $40.8 million in Q2 2024, with a gross profit margin of 72% [6][8] Operating Expenses - Total operating expenses increased by 18% to $54.7 million, primarily due to restructuring charges and increased personnel costs [7][8] - Sales and marketing expenses rose by 15% to $19.1 million, driven by higher sales commissions [9][8] - General and administrative expenses increased by 11% to $30.4 million, reflecting higher non-cash stock compensation and additional personnel [10][8] Net Loss and Cash Flow - The net loss for Q2 2025 was $7.1 million, compared to a loss of $6.0 million in Q2 2024, with a GAAP diluted loss per share of ($0.30) [12][8] - Non-GAAP diluted loss per share improved to ($0.11) from ($0.23) year-over-year [12][8] - Cash, cash equivalents, and short-term investments totaled $72.2 million as of June 30, 2025, up from $70.8 million at the end of 2024 [13][8] Business Expansion - The company expanded its OrthoPediatrics Specialty Bracing Division (OPSB) with new clinics and entered two new territories, including its first international operation in Ireland [8] - Full-year 2025 revenue guidance was raised to a range of $237.0 million to $242.0 million, indicating a growth of 16% to 18% compared to the previous year [14][8]

Core Insights - OrthoPediatrics Corp. is expanding its OrthoPediatrics Specialty Bracing (OPSB) division with new clinics and entry into new territories, including California, Ohio, and Colorado [1][6] - The company is slightly ahead of its planned entry into four new target markets for 2025, aiming to provide better bracing and O&P care to children globally [3][4] - The expansion includes Acquihire opportunities with new operations in New York and Ireland, marking the first international market for OPSB [2][6] Company Overview - Founded in 2006, OrthoPediatrics focuses exclusively on pediatric orthopedics, offering over 80 products across trauma and deformity, scoliosis, and sports medicine categories [5] - The company distributes its products in the United States and over 70 countries, emphasizing its commitment to improving the lives of children with orthopedic conditions [5] Market Expansion - The new clinic in California targets the Los Angeles market, providing access to millions of potential pediatric patients [6] - The Dayton, OH clinic is located within Dayton Children's Hospital, enhancing local access to skilled clinicians [6] - The expansion into Ireland complements OrthoPediatrics' existing implant business and opens opportunities for further growth in Europe [6]

Company Overview - OrthoPediatrics Corp. is focused exclusively on advancing pediatric orthopedics, having developed a comprehensive product offering to improve the lives of children with orthopedic conditions [3] - The company markets over 80 products across three major categories: trauma and deformity, scoliosis, and sports medicine/other procedures [3] - OrthoPediatrics distributes its products in the United States and over 70 countries globally [3] Upcoming Event - The company will participate in a fireside chat at the 45 Canaccord Genuity Annual Growth Conference on August 13, 2025, at 11:00 am ET [2] - An audio webcast of the discussion will be available on the OrthoPediatrics investor relations website, with a replay accessible after the event [2][4] Leadership Participation - Dave Bailey, President & CEO, and Fred Hite, COO and CFO, will represent the company during the fireside chat [1]

Company Overview - OrthoPediatrics Corp. is focused exclusively on advancing pediatric orthopedics and has developed a comprehensive product offering to improve the lives of children with orthopedic conditions [4] - The company markets over 80 products across three major categories: trauma and deformity, scoliosis, and sports medicine/other procedures [4] - OrthoPediatrics distributes its products in the United States and over 70 countries globally [4] Product Launch - The company announced the US launch of the 3P™ Pediatric Plating Platform™ Hip System, designed for treating proximal femur fractures and deformities [1] - The 3P Hip System includes a Beam Screw construct and Locking Proximal Femur Plates available in Infant, Child, and Adolescent sizes, integrating advanced implant and instrument technology [3] - The first surgical case using the 3P Pediatric Plating Platform has been completed with positive feedback, and over 10 cases were booked in August alone, indicating strong initial demand [3] Market Position and Strategy - The launch of the 3P Pediatric Plating Platform marks the company's commitment to expanding its plating portfolio in pediatric orthopedics [3] - The system aims to address evolving demands for implants by providing improved precision and additional fixation options for surgeons [2] - The company is focused on building a comprehensive suite of products within the Trauma & Deformity Correction category [3]