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].

OrthoPediatrics Conference Call Summary Company Overview - **Company**: OrthoPediatrics (NasdaqGM: KIDS) - **Industry**: Pediatric Orthopedics Key Points and Arguments Financial Performance - **Third Quarter Revenue**: Total revenue was $61.2 million, which was below expectations due to two main factors: delays in 7D capital sales and ongoing growth challenges in Latin and South America [6][7] - **Revenue Growth**: Excluding 7D capital sales, global revenue grew by 17%, and domestic revenue grew by 19% compared to the previous year [9][16] - **International Revenue**: Preliminary international revenue was $12.5 million, representing a 6% increase year-over-year [16] Challenges and Adjustments - **7D Capital Sales**: The expected 70 capital sales did not close before the quarter ended, leading to a significant revenue impact. The demand for 7D remains high, but timing and administrative delays in hospitals have created unpredictability [10][11][36] - **Latin America Sales**: Continued challenges in Latin America, particularly in Brazil, have led to a decision to limit new stocking and set sales, negatively impacting growth [12][13][72] - **Revenue Guidance Adjustment**: The company has lowered its full-year revenue guidance to $233.5 million to $234.5 million from a previous range of $237 million to $242 million, reflecting the impact of the aforementioned challenges [13][18] Strategic Focus - **Core Business Strength**: The company emphasizes that its core business segments, including trauma and deformity implants, specialty bracing, and international agencies, continue to show strong growth and higher margins [8][9] - **Long-term Growth Outlook**: OrthoPediatrics has set a long-term revenue growth target of 12% or greater annually, adjusting expectations due to the unpredictability of capital sales and international markets [14][30] - **Free Cash Flow Goals**: The company aims to achieve free cash flow breakeven by 2026, with expectations of positive free cash flow in the first quarter of 2025 [14][19] Market Position and Competitive Advantage - **Product Portfolio**: The broad product portfolio and commercial footprint are seen as key drivers for future growth and market share capture in pediatric orthopedics [8] - **Competitive Landscape**: The competitive environment remains stable, with no significant changes affecting the company’s market position. The 7D unit has gained a competitive advantage by eliminating the need for CT scans, thus offering zero radiation during procedures [52][53] Operational Insights - **Sales Cycle Variability**: The timing of capital sales is described as "lumpy," meaning that delays in sales can significantly impact quarterly revenue, making it difficult to predict future performance [36][47] - **Working Capital Utilization**: The company plans to improve working capital utilization to offset lost revenue and achieve free cash flow profitability without cutting into other performing areas [74] Additional Important Information - **Future Conference Call**: The company plans to provide full third-quarter financial results and additional commentary in a conference call scheduled for October 28, 2025 [20]

Core Viewpoint - OrthoPediatrics Corp. has announced preliminary financial results for Q3 2025 and revised its financial guidance for the full year 2025, indicating a decrease in expected revenue due to various operational challenges [1][3][4]. Financial Performance - Preliminary unaudited net revenue for Q3 2025 is approximately $61.2 million, reflecting a 12% increase from $54.6 million in Q3 2024 [8]. - Domestic net revenue for Q3 2025 is expected to be around $48.7 million, representing a 14% growth year-over-year, while international net revenue is projected at $12.5 million, showing a 6% increase [8]. - Excluding 7D capital sales, the preliminary net revenue for Q3 2025 is approximately $60.7 million, a 17% increase from $51.8 million in Q3 2024 [8]. Updated Financial Guidance - For the full year 2025, the company now expects revenue between $233.5 million and $234.5 million, down from the previous guidance of $237.0 million to $242.0 million, which still represents a growth of 14% to 15% over 2024 revenue [3][4]. - The company has reiterated its expectation for annual set deployment at $15.0 million and adjusted EBITDA guidance in the range of $15.0 million to $17.0 million for 2025 [3]. Operational Challenges - The company faced headwinds in late September 2025, primarily due to delayed 7D capital sales and challenges in the Latin and South America segments, which contributed to a revenue shortfall [4]. - The company acknowledges the difficulty in forecasting order timing across these segments and plans to reflect minimal sales growth from these areas for Q4 and beyond [4]. Company Overview - OrthoPediatrics focuses exclusively on pediatric orthopedics and has developed a comprehensive product offering to improve the lives of children with orthopedic conditions [12]. - The company markets over 80 products across three major categories: trauma and deformity, scoliosis, and sports medicine/other procedures, distributing its products in the U.S. and over 70 countries [12].

Core Insights - Pottery Barn Kids and Pottery Barn Teen, brands under Williams-Sonoma, Inc., have launched a collaboration with Formula 1, marking their entry into the motorsport-themed product line [1] Company Overview - Williams-Sonoma, Inc. is recognized as the world's largest digital-first, design-led, and sustainable home retailer [1] Product Launch - The new Formula 1 collections for Pottery Barn Kids and Pottery Barn Teen are designed to capture the excitement of race day, featuring high-performance-inspired designs that emphasize speed, energy, and a modern aesthetic [1]

Core Insights - OrthoPediatrics Corp. has successfully completed the first U.S. surgical procedures using the VerteGlide Spinal Growth Guidance System to treat Early Onset Scoliosis (EOS) [1][2] Company Overview - OrthoPediatrics, founded in 2006, focuses exclusively on pediatric orthopedics and has developed a comprehensive product offering to improve the lives of children with orthopedic conditions [5] - The company markets over 80 products across three major categories: trauma and deformity, scoliosis, and sports medicine/other procedures [5] - OrthoPediatrics distributes its products in the United States and over 70 countries globally [5] Product Details - The VerteGlide system is part of OrthoPediatrics' Scoliosis suite and provides a unique alternative for treating scoliosis, leveraging advanced implant and instrument technology [3] - This system addresses complex spinal pathologies in early onset scoliosis patients and is designed with input from a team of expert surgeons [4] - The technology behind VerteGlide is based on Shilla™ technology licensed from Medtronic [4] Clinical Impact - The initial procedures using VerteGlide have been reported as a great success, addressing a significant unmet clinical need for EOS patients [2] - The system is expected to greatly benefit current and future patients, providing a cutting-edge solution for complex spinal conditions [2][4] Upcoming Events - VerteGlide will be featured at the 60th Annual Meeting of the Scoliosis Research Society in September and the 19th International Congress on Early Onset Scoliosis in November [3]

Company Overview - OrthoPediatrics Corp. focuses exclusively on pediatric orthopedics and has developed a comprehensive product offering to improve the lives of children with orthopedic conditions, currently marketing over 80 products across three major categories: trauma and deformity, scoliosis, and sports medicine [5] - MY01, founded in 2019, specializes in medical technology aimed at transforming the diagnosis of limb perfusion injuries through its Continuous Perfusion Sensing Technology™ (CPST™) Platform, which provides real-time data to support better decision-making in trauma care [4] Partnership Announcement - OrthoPediatrics has announced a new distribution partnership with MY01 to expand access to the CPST™ Platform for pediatric patients, particularly those at risk for acute compartment syndrome [1][3] - The partnership aims to ensure clinicians have the necessary tools and training to reduce variability in care and optimize outcomes for pediatric patients, thereby avoiding unnecessary surgeries and complications [3] Industry Context - Acute compartment syndrome is a critical emergency condition that primarily affects children with specific orthopedic injuries, making timely diagnosis essential [2] - The collaboration between OrthoPediatrics and MY01 is positioned to address the challenges in diagnosing acute compartment syndrome in pediatric patients, who may have difficulty communicating their pain [2][3]

Core Insights - OrthoPediatrics Corp. announced the appointment of Kelly Fischer to its Board of Directors, effective August 8, 2025, alongside the retirement of Terry Schlotterback from the board on the same date [1][2]. Group 1: Board Changes - Kelly Fischer brings extensive financial leadership experience from her role as Senior Vice President and Chief Financial Officer at Cook Medical, a multibillion-dollar medical device company [2]. - Terry Schlotterback has served over fifteen years as a Director and Chairman of the Board, contributing significantly to the company's establishment as a leader in pediatric orthopedics [2]. Group 2: Company Strategy and Vision - Kelly Fischer expressed her commitment to supporting OrthoPediatrics' strategy to increase market share, launch new technologies, and expand the specialty bracing franchise efficiently [3]. - The company aims to help one million children by advancing its offerings in the pediatric orthopedic field [3]. Group 3: Company Overview - Founded in 2006, OrthoPediatrics focuses exclusively on pediatric orthopedics, offering over 80 products across trauma and deformity, scoliosis, and sports medicine categories [4]. - The company's global sales organization distributes its products in the United States and over 70 countries, emphasizing its commitment to improving the lives of children with orthopedic conditions [4].