Core Insights - OrthoPediatrics reported $61.25 million in revenue for Q3 2025, a 12.2% year-over-year increase, but fell short of the Zacks Consensus Estimate of $62.59 million by 2.14% [1] - The company posted an EPS of -$0.24, compared to -$0.18 a year ago, with a surprise of +7.69% against the consensus estimate of -$0.26 [1] Financial Performance - The stock has returned -7.4% over the past month, contrasting with the Zacks S&P 500 composite's +3.6% change [3] - OrthoPediatrics holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3] Product Sales Breakdown - Trauma and deformity product sales reached $44.14 million, slightly below the average estimate of $44.65 million, reflecting a year-over-year increase of 17.3% [4] - Sports medicine/other product sales were $0.85 million, significantly lower than the average estimate of $1.13 million, marking a year-over-year decline of 34.7% [4] - Scoliosis product sales totaled $16.26 million, slightly below the average estimate of $16.8 million, with a year-over-year change of +4% [4]

分组1 - OrthoPediatrics reported a quarterly loss of $0.24 per share, which was better than the Zacks Consensus Estimate of a loss of $0.26, representing an earnings surprise of +7.69% [1] - The company posted revenues of $61.25 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 2.14%, compared to $54.57 million in the same quarter last year [2] - The stock has underperformed the market, losing about 26.8% since the beginning of the year, while the S&P 500 gained 16.9% [3] 分组2 - The current consensus EPS estimate for the coming quarter is -$0.32 on revenues of $59.89 million, and for the current fiscal year, it is -$1.07 on revenues of $235.94 million [7] - The Zacks Industry Rank for Medical - Instruments is in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - OrthoPediatrics has surpassed consensus EPS estimates two times over the last four quarters, while it has topped consensus revenue estimates just once [2]

Financial Data and Key Metrics Changes - In Q3 2025, worldwide revenue was $61.2 million, a 12% increase compared to Q3 2024, driven by strong performance in Trauma and Deformity, Scoliosis, and OPSB, offset by declines in 7D unit sales and LATSAM stocking and set sales [19][20] - U.S. revenue reached $48.7 million, a 14% increase year-over-year, representing 80% of total revenue [19] - Adjusted EBITDA improved by 56% to $6.2 million compared to $4.0 million in Q3 2024 [25] - Gross profit margin increased to 74% from 73% in the prior year [21] - Free cash flow usage decreased significantly to $3.4 million from $11.7 million in Q3 2024 [25] Business Line Data and Key Metrics Changes - Trauma and Deformity (T&D) global revenue grew by 17% to $44.1 million, driven by strong growth in multiple product lines [21] - Scoliosis global revenue increased by 4% to $16.3 million, primarily due to increased sales of RESPONSE products, offset by lower 7D unit sales [21][14] - OPSB growth was robust, exceeding 20%, contributing significantly to overall revenue growth [6][11] Market Data and Key Metrics Changes - International revenue totaled $12.5 million, a 6% increase year-over-year, primarily driven by increased procedure volumes, despite lower stocking and set sales in LATSAM [20] - EMEA and APAC regions showed strong demand and surgical volume, while LATSAM faced headwinds due to reduced stocking and set sales [16][17] Company Strategy and Development Direction - The company aims to address critical gaps in pediatric healthcare, focusing on expanding its core business in Trauma and Deformity and Scoliosis implants, as well as OPSB clinics [5][11] - The 3P Pediatric Plating Platform is expected to drive future growth, with new systems planned for launch each year [10][11] - The company is strategically limiting new stocking and set sales in LATSAM to improve cash metrics, focusing on profitability rather than revenue at all costs [17][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive free cash flow in Q4 2025 and breakeven in 2026, despite adjusting revenue expectations [8][26] - The exit of competitors from the pediatric space is seen as an opportunity for the company to capture market share [29] - Management highlighted the importance of maintaining profitability and cash flow while pursuing growth opportunities [80] Other Important Information - The company recorded restructuring and impairment charges totaling $4.6 million in Q3 2025, impacting operating expenses [22][23] - The company has expanded its OPSB clinics from 26 to over 40 since acquiring Boston O&P in January 2024, with plans for further expansion [12][11] Q&A Session Summary Question: Competitors exiting the space - Management noted that major OEMs like J&J and Smith & Nephew are pulling pediatric products, which could benefit the company competitively [29] Question: Potential for accelerating OPSB expansions - Management confirmed high demand for clinics and expressed willingness to accelerate openings if financially viable [30] Question: Impact of 7D placements on core spine business growth - Management indicated that delays in 7D placements would not significantly affect long-term growth rates for the Scoliosis business [54] Question: EU MDR approvals and staffing reductions - Management confirmed that upcoming EU MDR approvals would enhance the Scoliosis portfolio in Europe, while staffing reductions are part of cost-saving measures [64] Question: Long-term growth outlook and profitability in LATSAM - Management emphasized that future strategies would prioritize profitable revenue growth over maximizing revenue at all costs in LATSAM [80]

Financial Data and Key Metrics Changes - In Q3 2025, worldwide revenue was $61.2 million, a 12% increase compared to Q3 2024, driven by strong performance in Trauma and Deformity, Scoliosis, and OPSB, despite declines in 7D unit sales and LATSAM stocking and set sales [19][20] - U.S. revenue reached $48.7 million, a 14% increase year-over-year, representing 80% of total revenue [19] - Adjusted EBITDA improved by 56% to $6.2 million compared to $4.0 million in Q3 2024 [25] - Gross profit margin increased to 74% from 73% in the prior year, primarily due to a favorable product sales mix [21][22] Business Line Data and Key Metrics Changes - Trauma and Deformity global revenue grew by 17% to $44.1 million, driven by strong sales in cannulated screws, PMP femur, PMP tibia, DF2, and OPSB [21] - Scoliosis global revenue increased by 4% to $16.3 million, led by sales of RESPONSE 5560 and Firefly, offset by lower 7D unit sales [21][14] - OPSB growth exceeded 20%, with strong performance in both Trauma and Deformity and Scoliosis segments [6][11] Market Data and Key Metrics Changes - International revenue totaled $12.5 million, a 6% increase year-over-year, primarily driven by increased procedure volumes, despite lower stocking and set sales in LATSAM [20] - EMEA and APAC regions showed strong demand and surgical volume, while LATSAM faced headwinds, particularly in Brazil [16][17] Company Strategy and Development Direction - The company aims to close critical gaps in pediatric healthcare, focusing on expanding its core business segments, which generate higher margins and better free cash flow [5][8] - The 3P pediatric plating platform is expected to drive growth, with new systems launching annually, enhancing trauma and limb deformity revenue [10][11] - The company is strategically expanding its OPSB clinics, with a focus on targeted territory expansion and R&D efforts [12][13] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive free cash flow in Q4 2025 and breakeven in 2026, despite adjusting top-line revenue expectations [8][18] - The exit of competitors from the pediatric space is seen as an opportunity for the company to capture market share [29] - Management acknowledged ongoing challenges in LATSAM but is implementing improvement plans to stabilize growth [14][17] Other Important Information - The company recorded restructuring and impairment charges totaling $4.6 million in Q3 2025, aimed at improving operational efficiency [22][23] - Free cash flow usage significantly improved to $3.4 million from $11.7 million in Q3 2024 [25] Q&A Session Summary Question: Competitors exiting the space - Management noted that major OEMs like Johnson & Johnson and Smith & Nephew are pulling pediatric-specific products, which presents an opportunity for the company [29] Question: Potential for accelerating OPSB clinic openings - Management confirmed high demand for clinics and expressed willingness to accelerate openings if feasible while balancing profitability [30][31] Question: Impact of 7D sales outlook on core spine business growth - Management indicated that delays in 7D placements would not significantly impact long-term growth rates for the implant business [53][54] Question: Confidence in 12% growth baseline - Management cited strong adoption rates and growth momentum in various business areas as the basis for the 12% growth outlook [42][43] Question: Strategy for Latin American growth - Management emphasized the importance of profitable revenue generation and improving cash flow rather than prioritizing revenue at all costs [80]

Financial Data and Key Metrics Changes - In Q3 2025, worldwide revenue was $61.2 million, a 12% increase compared to Q3 2024, driven by strong performance in Trauma and Deformity, Scoliosis, and OPSB, offset by declines in 7D unit sales and LATSAM stocking and set sales [19][20] - U.S. revenue reached $48.7 million, a 14% increase from the prior year, representing 80% of total revenue [19] - Adjusted EBITDA improved by 56% to $6.2 million compared to $4.0 million in Q3 2024 [24] - Gross profit margin increased to 74% from 73% year-over-year, primarily due to a favorable product sales mix [20][21] Business Line Data and Key Metrics Changes - Trauma and Deformity global revenue grew by 17% to $44.1 million, driven by strong growth in multiple product lines [20] - Scoliosis global revenue increased by 4% to $16.3 million, led by sales of RESPONSE 5560 and Firefly, despite a decline in 7D unit sales [20][14] - OPSB growth was robust, contributing significantly to overall revenue growth [6][12] Market Data and Key Metrics Changes - International revenue totaled $12.5 million, a 6% increase year-over-year, primarily driven by increased procedure volumes in EMEA and APAC, offset by lower sales in LATSAM [19][16] - The company experienced strong demand in EMEA for scoliosis products, while LATSAM faced ongoing headwinds [17][14] Company Strategy and Development Direction - The company aims to address unmet needs in pediatric healthcare, focusing on expanding its core business segments, including Trauma and Deformity and Scoliosis implants [5][12] - The 3P platform is expected to drive future growth, with new product launches planned for the coming years [11][68] - The company is strategically expanding its OPSB clinics, with a focus on high-demand markets and operational efficiency [13][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in 7D capital sales and LATSAM but expressed confidence in the core business's strength and profitability [6][9] - The company expects to generate positive free cash flow in Q4 2025 and aims for breakeven in 2026 [9][25] - Management highlighted the exit of competitors from the pediatric space as a potential opportunity for market share growth [27][28] Other Important Information - Total operating expenses increased by 19% to $54.7 million, driven by restructuring and impairment charges, as well as growth in OPSB clinics [21][22] - The company recorded a GAAP net loss per share of $0.50, compared to $0.34 in the prior year [23] Q&A Session Summary Question: Competitors exiting the space - Management noted that major OEMs like Johnson & Johnson and Smith & Nephew are pulling pediatric-specific products, which could benefit the company competitively [27][28] Question: Expansion of OPSB clinics - Management confirmed high demand for clinics and expressed willingness to accelerate openings if feasible, balancing profitability with growth [29][30] Question: Revenue and EBITDA guidance - Management clarified that product mix is the primary driver of changes in EBITDA guidance, with no significant concerns about the revenue range [34] Question: Impact of 7D sales on growth - Management indicated that delays in 7D placements would not significantly impact long-term growth rates for the implant business [51] Question: EU MDR approvals and staffing changes - Management confirmed that upcoming EU MDR approvals would enhance the Scoliosis portfolio in Europe, while staffing reductions are part of cost management efforts [60][62]

Financial Performance - OrthoPediatrics Corp. announced preliminary unaudited net revenue for Q3 2025, with specific figures to be confirmed after the audit process[4] - The company revised its financial guidance for the full year ending December 31, 2025, indicating potential changes in revenue expectations[4] - Management cautioned that actual results for Q3 2025 may differ materially from preliminary estimates due to various risks and uncertainties[6]

Core Insights - OrthoPediatrics Corp. reported a 12% year-over-year increase in total revenue for Q3 2025, reaching $61.2 million, and a 56% increase in adjusted EBITDA to $6.2 million [4][15][17] Financial Performance - Total revenue for Q3 2025 was $61.2 million, up from $54.6 million in Q3 2024, with U.S. revenue increasing by 14% to $48.7 million, representing 80% of total revenue [4][6] - International revenue grew by 6% to $12.5 million, accounting for 20% of total revenue, driven by strong performance in Trauma and Deformity, Scoliosis, and OP Specialty Bracing [4][6] - Trauma and Deformity revenue increased by 17% to $44.1 million, while Scoliosis revenue rose by 4% to $16.3 million [5][31] - Gross profit for Q3 2025 was $45.3 million, a 13% increase from $40.1 million in Q3 2024, with a gross profit margin of 74% [6][7] - Operating expenses increased by 20% to $54.7 million, primarily due to restructuring charges and increased non-cash stock compensation [8][10] Strategic Initiatives - The company aims to achieve free cash flow break-even by 2026 through strategic initiatives such as scaling OPSB and introducing innovative products [3] - OrthoPediatrics completed its first procedures with the VerteGlide™ Spinal Growth Guidance System and received FDA approval for the 3P™ Pediatric Plating Platform™ Small-Mini System [6][17] Guidance and Outlook - Full year 2025 revenue guidance is set between $233.5 million and $234.5 million, reflecting a growth of 14% to 15% compared to the previous year [17] - The company reiterated its annual set deployment target of $15.0 million and adjusted EBITDA guidance of $15.0 million to $17.0 million for the full year [17]

Core Insights - OrthoPediatrics Corp. has received FDA approval for its 3P™ Pediatric Plating Platform™ Small-Mini System, marking the company's sixth FDA approval in 2025 [1][3]. Product Details - The 3P Small-Mini System is designed for pediatric orthopedic surgeons, featuring variable-angle locking implants and supporting a variety of trauma and deformity surgeries with plates in sizes 2.0mm, 2.4mm, 2.7mm, and 3.5mm [2]. - The system includes specialized instruments and color-coded trays to enhance surgical efficiency, following the successful launch of the 3P Hip System [2]. Company Strategy and Future Plans - The company aims to address unmet medical needs in pediatric orthopedics and plans a limited market release of the new system in early 2026 [3]. - OrthoPediatrics is committed to expanding its portfolio of innovative orthopedic solutions to better serve pediatric patients, with a focus on developing groundbreaking products [3]. Company Background - Founded in 2006, OrthoPediatrics specializes in pediatric orthopedics and offers over 80 products across major categories including trauma, deformity, scoliosis, and sports medicine [4]. - The company's global sales organization operates exclusively in pediatric orthopedics, distributing products in the U.S. and over 70 other countries [4].

Core Viewpoint - OrthoPediatrics Corp. is set to release its third quarter 2025 financial results on October 28, 2025, and will host a conference call to discuss these results [1]. Company Overview - OrthoPediatrics Corp. was founded in 2006 and focuses exclusively on pediatric orthopedics, offering a comprehensive range of over 80 products [3]. - The company serves three major categories within the pediatric orthopedic market: trauma and deformity, scoliosis, and sports medicine/other procedures [3]. - OrthoPediatrics distributes its products in the United States and over 70 countries globally, emphasizing its commitment to improving the lives of children with orthopedic conditions [3]. Investor Information - Investors can access a live and archived webcast of the conference call on the company's website, which will be available for replay for at least 90 days [2]. - The conference call is scheduled for October 28, 2025, at 4:30 p.m. ET [1].

Core Viewpoint - OrthoPediatrics Corporation is conducting a conference call to discuss its preliminary results for the third quarter of 2025, indicating a focus on financial performance and operational updates [1]. Group 1: Company Overview - The call features key executives including the President and CEO, Dave Bailey, and the Chief Operating and Financial Officer, Fred Hite, highlighting the leadership team's involvement in the discussion [2]. Group 2: Financial Reporting - The company will discuss forward-looking statements that are subject to risks and uncertainties, emphasizing the importance of reviewing the most recent annual and quarterly reports for a comprehensive understanding of risk factors [3]. - Management will also address non-GAAP financial measures, which are considered supplemental measures of performance, providing useful information for investors in evaluating operations over time [4].