Financial Data and Key Metrics Changes - In Q1 2025, worldwide revenue reached $52.4 million, a 17% increase compared to Q1 2024 [31] - U.S. revenue was $40.9 million, reflecting a 19% increase and accounting for 78% of total revenue [32] - International revenue totaled $11.5 million, an 11% increase, representing 22% of total revenue [33] - Adjusted EBITDA loss was reduced to $400,000, improving over 50% from a loss of $1.1 million in Q1 2024 [37] - Free cash flow usage decreased by 36% to $8.4 million compared to the same period last year [37] Business Line Data and Key Metrics Changes - Trauma and Deformity global revenue was $37.9 million, a 14% increase driven by trauma products and OPSB [33] - Scoliosis global revenue reached $13.7 million, a 34% increase, primarily due to increased sales of Response and ApiFix systems [34] - The T and D business grew 14%, supported by strong market share gains and prior investments in set allocation [13] Market Data and Key Metrics Changes - Over 20% of global revenue is trauma-related, which is largely non-elective, providing stability against economic downturns [12] - International growth was double-digit, but impacted by lower sales in Latin America [26] - Strong adoption trends were noted in Canada and Australia, contributing to international growth [26] Company Strategy and Development Direction - The company aims to execute and scale OPSB, take market share in the surgical business, and continue innovative product launches [7] - Expansion into new territories, including North Carolina, is underway, with plans for additional territories in H2 2025 [18] - The company is focused on improving profitability and cash flow while maintaining growth [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth and profitability trajectories despite broader economic conditions [12] - The company is increasing its full-year revenue guidance to $236 million to $242 million, representing 15% to 18% growth [12] - Management remains cautious about summer months, traditionally strong for the business, and is monitoring international markets for cash collection opportunities [50] Other Important Information - The company received five FDA approvals in 2025, including major systems that will enhance its product offerings [9] - The company is actively pursuing EU MDR compliance to launch new products in Europe starting in H2 2025 [27] - OrthoPediatrics was recognized as one of the best places to work in Indiana for 2025, reflecting employee dedication [30] Q&A Session Summary Question: Can you discuss the strong performance in the spine business and the impact of VertiGlide? - Management noted strong growth in scoliosis, driven by high adoption rates and new accounts, with VertiGlide expected to contribute positively [45][46] Question: Why is the revenue guidance conservative despite strong performance? - Management indicated caution due to the upcoming summer months and a strategic approach to international markets to improve cash flow [48][50] Question: How does the 7D technology impact the adoption of scoliosis products? - Management confirmed that accounts with 7D technology are seeing increased adoption of scoliosis products, contributing to overall growth [58][60] Question: What is the outlook for the EU MDR and product launches? - Management expects the first approvals to focus on trauma and deformity products, which will modernize existing systems and drive market share [86][88] Question: Can you elaborate on the OPSB product launches? - Management confirmed plans for multiple launches in 2025, including products targeting pediatric hip dysplasia and innovative bracing solutions [95][97]

Financial Data and Key Metrics Changes - In Q1 2025, worldwide revenue reached $52.4 million, a 17% increase compared to Q1 2024 [32] - U.S. revenue was $40.9 million, reflecting a 19% increase and accounting for 78% of total revenue [33] - Adjusted EBITDA loss improved by over 50% year-over-year, from a loss of $1.1 million in Q1 2024 to a loss of $0.4 million in Q1 2025 [39] - Free cash flow usage decreased by 36% year-over-year, amounting to $8.4 million in Q1 2025 [39] Business Line Data and Key Metrics Changes - Trauma and Deformity (T&D) global revenue was $37.9 million, a 14% increase year-over-year [34] - Scoliosis global revenue increased by 34% to $13.7 million, driven by sales of Response, ApiFix, and 3D patient-specific braces [35][22] - The OPSB business showed strong growth, contributing to overall revenue growth and expanding market share [18] Market Data and Key Metrics Changes - International revenue grew by 11% to $11.5 million, representing 22% of total revenue [33] - U.S. market growth was strong, while Latin America experienced softness, impacting overall international performance [15][27] Company Strategy and Development Direction - The company aims to scale OPSB and increase market share through innovative product launches and strategic set deployments [7][13] - The focus remains on expanding clinic territories, with North Carolina being the latest addition, and potential for further expansion in the second half of 2025 [19][21] - The company is committed to becoming a profitable and cash-generative business while helping more children through its products [42][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth and profitability despite broader economic conditions, citing minimal exposure to tariffs [12][13] - The company anticipates revenue growth of 15% to 18% for the full year 2025, increasing guidance to $236 million to $242 million [13][40] - Management remains cautious about summer months, traditionally strong for the business, and is focused on improving cash collection in international markets [51][52] Other Important Information - The company received five FDA approvals in 2025, including significant systems like the Vertiglyde and 3P Pediatric Plating Platform Hip System [9][17] - The company hosted 172 training experiences for over 2,245 healthcare professionals in Q1 2025, enhancing surgeon education and product adoption [30] Q&A Session Summary Question: Can you discuss the strong performance in the spine business and the impact of Vertiglyde? - Management noted strong growth in scoliosis, driven by high adoption rates and new accounts, with Vertiglyde expected to contribute positively [46][47] Question: Why is the revenue guidance conservative despite strong performance? - Management indicated traditional caution regarding summer months and ongoing adjustments in international markets to improve cash flow [50][51] Question: How does the 7D technology impact the adoption of scoliosis products? - Management confirmed that accounts with 7D technology are seeing increased adoption of scoliosis products, contributing to overall growth [56][57] Question: What is the outlook for the EU MDR approval process? - Management expressed optimism about the EU MDR process, with plans to launch several products once approvals are secured [84][85] Question: Can you elaborate on the upcoming product launches in OPSB? - Management confirmed plans for multiple product launches in OPSB, including new bracing technologies and products for developmental hip dysplasia [92][93]

[First Quarter 2025 and Business Highlights](index=1&type=section&id=First%20Quarter%202025%20and%20Business%20Highlights) OrthoPediatrics reported strong Q1 2025 results with 17% revenue growth, improved Adjusted EBITDA, and raised full-year guidance Q1 2025 Key Performance Indicators (in millions) | Metric | Q1 2025 | Change vs. Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $52.4 | +17% | | U.S. Revenue | $40.9 | +19% | | International Revenue | $11.5 | +11% | | Trauma & Deformity Revenue | $37.9 | +14% | | Scoliosis Revenue | $13.7 | +34% | | Adjusted EBITDA | ($0.4) | Improved from ($1.1) | | Free Cash Flow Usage | N/A | Reduced by 35% YoY | - The company helped a record of nearly **39,000 children** in the first quarter of 2025[6](index=6&type=chunk) - Expanded the scoliosis portfolio with the launch of the **VerteGlide™ System** for Early Onset Scoliosis, marking the company's **80th system launch**[6](index=6&type=chunk) - CEO David Bailey highlighted **strong execution**, progress in scaling OPSB, **gaining market share**, and **successful product launches** as key drivers, confident in continued growth due to **U.S. manufacturing** and the **non-elective nature** of its procedures[4](index=4&type=chunk) [First Quarter 2025 Financial Performance](index=1&type=section&id=First%20Quarter%202025%20Financial%20Performance) Q1 2025 revenue grew 17% to $52.4 million with improved gross margin, but increased operating expenses led to a wider net loss despite improved Adjusted EBITDA [Revenue Analysis](index=1&type=section&id=Revenue%20Analysis) Revenue grew robustly across geographies and product lines, with U.S. up 19% and Scoliosis up 34%, offsetting a 25% decline in Sports Medicine/Other Q1 2025 Revenue by Geography (in millions) | Geography | Q1 2025 Revenue | Q1 2024 Revenue | Growth | | :--- | :--- | :--- | :--- | | U.S. | $40.9 | $34.3 | 19% | | International | $11.5 | $10.4 | 11% | | **Total** | **$52.4** | **$44.7** | **17%** | Q1 2025 Revenue by Product Category (in millions) | Product Category | Q1 2025 Revenue | Q1 2024 Revenue | Growth | | :--- | :--- | :--- | :--- | | Trauma and Deformity | $37.9 | $33.3 | 14% | | Scoliosis | $13.7 | $10.2 | 34% | | Sports Medicine/Other | $0.9 | $1.2 | -25% | [Profitability and Expenses](index=2&type=section&id=Profitability%20and%20Expenses) Gross profit rose 19% to $38.3 million, with margin at 73%, but increased operating expenses led to a wider net loss, though Adjusted EBITDA loss narrowed - Gross profit margin improved to **73%** in Q1 2025 from **72%** in Q1 2024, primarily due to higher domestic growth and lower international set sales[8](index=8&type=chunk) - Operating expenses increased mainly due to: - **General and administrative:** **+22%** to **$30.3M**, driven by personnel additions and increased non-cash stock compensation[9](index=9&type=chunk) - **Sales and marketing:** **+17%** to **$16.6M**, due to higher sales commissions and volume[10](index=10&type=chunk) - **Research and development:** **-22%** to **$2.4M**, due to timing of third-party invoices[11](index=11&type=chunk) Q1 2025 Profitability Metrics (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Loss | ($10.7) | ($7.8) | | Net Loss per Share | ($0.46) | ($0.34) | | Adjusted EBITDA | ($0.4) | ($1.1) | [Balance Sheet and Cash Flow](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) Q1 2025 cash balance decreased to $60.8 million, but free cash flow usage improved by 35%, with positive free cash flow anticipated in Q4 2025 - Cash, cash equivalents, short-term investments, and restricted cash totaled **$60.8 million** as of March 31, 2025, down from **$70.8 million** as of December 31, 2024[14](index=14&type=chunk) - The company reduced its first quarter 2025 free cash flow usage by **35%** compared to Q1 2024 and expects to be free cash flow positive in **Q4 2025**[6](index=6&type=chunk) [Full Year 2025 Financial Guidance](index=2&type=section&id=Full%20Year%202025%20Financial%20Guidance) OrthoPediatrics raised its full-year 2025 revenue guidance to $236.0-$242.0 million (15-18% growth) and reiterated Adjusted EBITDA guidance Updated Full Year 2025 Guidance (in millions) | Metric | Previous Guidance | Updated Guidance | Implied Growth (YoY) | | :--- | :--- | :--- | :--- | | Revenue | $235.0 - $242.0 | $236.0 - $242.0 | 15% to 18% | | Adjusted EBITDA | $15.0 - $17.0 | $15.0 - $17.0 (Reiterated) | N/A | - The company reiterated its plan for annual set deployment of **$15.0 million**[15](index=15&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including Balance Sheets, Statements of Operations, Cash Flows, and revenue breakdowns [Condensed Consolidated Balance Sheets](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, total assets were $470.3 million, liabilities increased to $123.1 million, and stockholders' equity decreased to $347.1 million Key Balance Sheet Items (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash, Restricted Cash & Short-term Investments | $60,762 | $70,790 | | Inventories, net | $119,752 | $117,005 | | Total Assets | $470,250 | $473,209 | | Total Liabilities | $123,104 | $118,643 | | Total Stockholders' Equity | $347,146 | $354,566 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q1 2025 net revenue was $52.4 million, but operating loss widened to $11.0 million and net loss increased to $10.7 million, or $0.46 per share Q1 Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Revenue | $52,411 | $44,685 | | Gross Profit | $38,262 | $32,174 | | Total Operating Expenses | $49,243 | $41,897 | | Operating Loss | $(10,981) | $(9,723) | | Net Loss | $(10,659) | $(7,805) | | Net Loss Per Share | $(0.46) | $(0.34) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Q1 2025 net cash used in operating activities improved to $4.2 million, while net cash used in investing activities was $6.0 million, resulting in a $10.3 million net cash decrease Q1 Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(4,156) | $(6,690) | | Net cash used in investing activities | $(5,987) | $(3,679) | | Net cash used in financing activities | $(126) | $(573) | | **Net Decrease in Cash** | **$(10,348)** | **$(9,463)** | [Net Revenue by Geography and Product Category](index=8&type=section&id=NET%20REVENUE%20BY%20GEOGRAPHY%20AND%20PRODUCT%20CATEGORY) Q1 2025 revenue breakdown shows U.S. contributing $40.9 million (78%) and International $11.5 million (22%), with Trauma and Deformity as the largest product segment Q1 2025 vs Q1 2024 Revenue Breakdown (in thousands) | Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **By Geography** | | | | U.S. | $40,891 | $34,305 | | International | $11,520 | $10,380 | | **By Product** | | | | Trauma and deformity | $37,867 | $33,302 | | Scoliosis | $13,664 | $10,203 | | Sports medicine/other | $880 | $1,180 | | **Total** | **$52,411** | **$44,685** | [Non-GAAP Financial Measures Reconciliation](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section reconciles GAAP to non-GAAP measures, adjusting Q1 2025 net loss of $10.7 million to an Adjusted EBITDA loss of $0.4 million and GAAP diluted loss per share to $0.39 Reconciliation of Net Loss to Non-GAAP Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss (GAAP) | $(10,659) | $(7,805) | | Adjustments (Depreciation, Stock Comp, etc.) | $10,280 | $6,097 | | **Adjusted EBITDA (Non-GAAP)** | **$(379)** | **$(1,108)** | Reconciliation of Diluted Loss Per Share to Non-GAAP Adjusted Diluted Loss Per Share | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Loss per share, diluted (GAAP) | $(0.46) | $(0.34) | | Adjustments (Acquisition costs, etc.) | $0.07 | $0.04 | | **Loss per share, diluted (Non-GAAP)** | **$(0.39)** | **$(0.30)** | [Other Information](index=3&type=section&id=Other%20Information) This section provides investor logistical details, forward-looking statements disclaimer, and a corporate overview of OrthoPediatrics' exclusive focus on pediatric orthopedics - A conference call to discuss the results was scheduled for **May 7, 2025**, with a webcast available for replay on the company's investor relations website[16](index=16&type=chunk) - The company identifies itself as being exclusively focused on pediatric orthopedics, marketing **80 systems** across trauma and deformity, scoliosis, and sports medicine in the U.S. and over **75 other countries**[20](index=20&type=chunk) - The press release contains forward-looking statements that involve risks and uncertainties, and the company directs investors to its SEC filings for a full list of risk factors[17](index=17&type=chunk)

Core Insights - OrthoPediatrics Corp. reported a 17% year-over-year increase in total revenue for Q1 2025, reaching $52.4 million compared to $44.7 million in Q1 2024 [4] - The company continues to focus on pediatric orthopedics, achieving significant growth in both U.S. and international markets [3][4] Financial Performance - Total revenue for Q1 2025 was $52.4 million, a 17% increase from $44.7 million in Q1 2024 [4] - U.S. revenue increased by 19% to $40.9 million, representing 78% of total revenue, while international revenue grew by 11% to $11.5 million, accounting for 22% of total revenue [4] - Trauma and Deformity revenue rose 14% to $37.9 million, and Scoliosis revenue surged 34% to $13.7 million [5][4] - Gross profit for Q1 2025 was $38.3 million, a 19% increase from $32.2 million in the same period last year, with a gross profit margin of 73% [6] Operating Expenses - Total operating expenses for Q1 2025 were $49.2 million, an 18% increase from $41.9 million in Q1 2024, primarily due to increased personnel and non-cash stock compensation [7][10] - Sales and marketing expenses rose by 17% to $16.6 million, driven by higher sales commissions [8] Profitability Metrics - The net loss for Q1 2025 was $10.7 million, compared to a net loss of $7.8 million in Q1 2024, with a net loss per share of $0.46 [11] - Adjusted EBITDA for Q1 2025 was a loss of $0.4 million, an improvement from a loss of $1.1 million in Q1 2024 [11][29] Cash Flow and Guidance - The company reduced free cash flow usage by 35% compared to the same period last year and anticipates achieving positive free cash flow in Q4 2025 [8] - Full-year 2025 revenue guidance was increased to between $236.0 million and $242.0 million, reflecting a growth of 15% to 18% compared to 2024 [13]

Core Insights - OrthoPediatrics Corp. has announced the expansion of its Trauma and Deformity portfolio with the introduction of the 3P Pediatric Plating Platform Hip System, marking its fifth FDA approval in 2025 [1][3]. Product Development - The 3P Pediatric Plating Platform Hip System is designed to modernize trauma and deformity correction treatments in lower extremities, providing surgeons with enhanced coverage for various indications through unique implants and instruments [2]. - The beta launch of the 3P Hip is expected to be followed by the 3P Small/Mini system in early 2026, with additional systems planned for future launches, aiming to transform the company's plate and screw product portfolio [2]. Company Strategy - The Trauma and Deformity division President highlighted the 3P Pediatric Plating Platform as a significant opportunity to address unmet needs in the market, representing one of the largest product initiatives in the company's history [3]. - The CEO emphasized the commitment to providing a comprehensive portfolio of innovative orthopedic treatments for pediatric patients, reflecting the company's focus on expanding its product offerings [3]. Company Overview - Founded in 2006, OrthoPediatrics specializes in pediatric orthopedics, offering over 80 products across major categories including trauma and deformity, scoliosis, and sports medicine [4]. - The company distributes its products in the United States and over 70 countries globally, focusing exclusively on pediatric orthopedic solutions [4].

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 has a global sales organization that distributes its products in the United States and over 70 countries outside the United States [3] Upcoming Financial Results - OrthoPediatrics is scheduled to release its first quarter 2025 financial results on May 7, 2025, after the market closes [1] - A conference call will be held on the same day at 4:30 p.m. ET to discuss the financial results [1] 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 after the event [2]

Core Insights - OrthoPediatrics Corp. has launched the VerteGlide Spinal Growth Guidance System in the U.S. to treat Early Onset Scoliosis, marking the company's 80th system designed for pediatric musculoskeletal issues [1][4] Product Overview - The VerteGlide system is a guided growth technology aimed at children under 10 suffering from Early Onset Scoliosis, a condition that can lead to severe pulmonary and digestive dysfunction [2] - This system is designed to correct deformities and reduce the need for repeat surgeries until the child reaches skeletal maturity [2] - The device has received FDA clearance and is set for a limited launch with initial surgeries planned for summer 2025 [2] Development and Collaboration - Dr. Richard McCarthy and Dr. Scott Luhmann have played key roles in the design and development of the VerteGlide system [3] - The launch of VerteGlide reflects the company's commitment to addressing the needs of children with scoliosis, as stated by the President of the Scoliosis division, Greg Odle [3] - The system utilizes Shilla™ technology licensed from Medtronic, showcasing collaboration in advancing pediatric orthopedic solutions [3] Company Background - Founded in 2006, OrthoPediatrics focuses exclusively on pediatric orthopedics, offering a comprehensive range of products to improve the lives of children with orthopedic conditions [4] - The company markets 80 products across major categories including trauma and deformity, scoliosis, and sports medicine, distributing in the U.S. and over 70 countries [4]

WARSAW, Ind., March 25, 2025 (GLOBE NEWSWIRE) -- OrthoPediatrics Corp. (“OrthoPediatrics” or the “Company”) (Nasdaq: KIDS), a company focused exclusively on advancing the field of pediatric orthopedics, today announced that Dave Bailey, President & Chief Executive Officer, and Fred Hite, Chief Operating Officer, and Chief Financial Officer, are scheduled to participate in a fireside chat at the 24th Annual Needham Virtual Healthcare Conference. Event:24th Annual Needham Virtual Healthcare ConferenceFormat:F ...

WARSAW, Ind., March 24, 2025 (GLOBE NEWSWIRE) -- OrthoPediatrics Corp. (“OrthoPediatrics” or the “Company”) (Nasdaq: KIDS), a company focused exclusively on advancing the field of pediatric orthopedics, today announced it was selected as one of the 2025 Best Places to Work in Indiana. This is the 9th time the Company has been recognized by the annual program created by the Indiana Chamber of Commerce. OrthoPediatrics President & CEO David Bailey commented, “I’m so proud of our organization for being named o ...

WARSAW, Ind., March 17, 2025 (GLOBE NEWSWIRE) -- OrthoPediatrics Corp. (“OrthoPediatrics” or the “Company”) (Nasdaq: KIDS), a company focused exclusively on advancing the field of pediatric orthopedics, announced today its partnership with the Crossroads Pediatric Device Consortium (CPDC). This collaboration aligns with the Company’s cause of improving the lives of children by supporting the development and commercialization of innovative pediatric medical devices.​ The Crossroads Pediatric Device Consortiu ...