Financial Performance and Position - As of December 31, 2024, the company had federal, state, and foreign net operating loss carryforwards (NOLs) of $136.6 million, $85.4 million, and $35.2 million, respectively[176]. - The company recorded impairment charges of $1.0 million and $3.6 million related to the ApiFix trademark asset during the third quarter of 2023 and 2022, respectively, and an additional charge of $1.8 million in the fourth quarter of 2024[179]. - The company faces limitations on the use of its net operating loss carryforwards due to ownership changes, with an estimated annual limitation of $9.7 million imposed on the use of pre-change NOLs[176]. - Revenue increased from $148.7 million in 2023 to $204.7 million in 2024, representing a growth of approximately 37.6%[231]. - Approximately 21% of revenue in 2024 was attributable to international customers, down from 25% in 2023 and 24% in 2022[237]. - The company has assessed no material exposure to interest rate risk from its investment portfolio, which consists largely of high-quality corporate debt instruments[448]. - The company does not currently hedge against foreign currency exchange rate fluctuations but may consider doing so in the future[450]. - The company has not recorded any significant unrealized losses or impairment charges on its investments during the periods presented[448]. Market and Competitive Environment - The company operates in a highly competitive environment with significant competitors including Johnson & Johnson MedTech, Medtronic, and Smith & Nephew, which may impact its market position[186]. - The company’s ability to commercialize new products is critical for growth, as failure to do so may hinder its competitive position in the pediatric orthopedic market[180]. - The company has expanded its international sales organization to over 70 independent stocking distributors and multiple direct sales representatives, selling products in over 75 countries[209]. - The company has faced difficulties in obtaining value analysis committee (VAC) approvals from hospitals, which can be lengthy and costly, impacting sales[208]. - The company lacks published long-term data supporting superior clinical outcomes of its products, which may hinder market acceptance and sales growth[214]. - The company’s future sales depend on effectively marketing to orthopedic surgeons and demonstrating the merits of its products compared to competitors[201]. Regulatory and Compliance Risks - The company may face regulatory scrutiny regarding the provision of loaned instrument sets to customers, which could implicate federal and state fraud and abuse laws[192]. - The company is subject to fluctuations in its effective tax rate due to various factors, including changes in tax laws and profitability across jurisdictions[175]. - The company must comply with UK Medical Device Regulations to affix the UKCA Mark, with compliance required by 2025[274]. - Non-compliance with federal and state regulations could lead to product recalls or production termination, significantly impacting supply[280]. - The company is subject to periodic inspections by the FDA and Notified Body, which could result in enforcement actions if non-compliance is found[281]. - Regulatory authorities may require recalls of products due to material deficiencies or defects, which could impact sales and reputation[288]. - The company faces significant risks related to compliance with the FCPA and other anti-corruption laws, particularly in jurisdictions with developing economies[242]. - Any violation of anti-corruption laws could result in substantial fines, sanctions, and harm to the company's business and financial condition[243]. Operational Challenges - The company must maintain significant levels of inventory for implant and instrument sets, which could lead to inventory impairment charges if portions become obsolete[191]. - The company may experience challenges in managing anticipated growth, which could strain organizational and operational infrastructure[231]. - The company may face challenges in integrating acquired businesses or technologies, which could disrupt ongoing operations and management focus[198]. - The company has experienced limited access to healthcare professionals due to the COVID-19 pandemic, affecting product development and marketing efforts[200]. - The company may pursue growth through acquisitions or strategic alliances, which carry risks related to integration and operational impact[193]. Intellectual Property and Litigation - The company owns 77 issued U.S. patents and 207 issued foreign patents, with 50 pending U.S. patent applications and 66 pending foreign patent applications as of December 31, 2024[321]. - The company’s ability to enforce patent rights may be compromised by difficulties in detecting infringement and potential legal challenges[324]. - The company may face substantial costs and liabilities from intellectual property litigation, which could strain financial resources and harm its reputation[330]. - The company indemnifies customers against infringement claims, which may lead to costly litigation and potential damages[331]. - Significant litigation regarding patent rights in the industry may impact the company's ability to commercialize products and could divert management's attention[328]. Stock and Shareholder Matters - The company has 24,217,508 outstanding shares of common stock as of December 31, 2024, with potential future sales impacting stock price[343]. - The stock price may be volatile due to various factors, including fluctuations in financial condition and operating results[338]. - The company does not anticipate paying any cash dividends in the foreseeable future, with capital appreciation being the sole source of gain for shareholders[354]. - As of December 31, 2024, principal stockholders and management own approximately 32.5% of the company's outstanding common stock, allowing them to exert significant control over corporate actions[347]. Strategic Initiatives - The company initiated a restructuring plan in 2024 aimed at improving operational efficiency and reducing costs, which includes workforce reductions and site consolidations[235]. - The restructuring plan involves upfront costs such as severance payments and lease termination expenses, which may exceed initial estimates[238]. - The company has hired a VP of Asia-Pacific sales in 2024 to expand sales efforts in Australia and other Asia Pacific countries[209]. - The company relies on a network of over 40 independent sales agencies in the U.S. and more than 70 independent stocking distributors internationally, selling products in over 75 countries[309]. Environmental and Social Considerations - The company recognizes that climate change and related legislative initiatives may materially affect its business and results of operations[245]. - The company has no specific insurance covering environmental claims related to hazardous materials, but reserves funds for potential claims[306]. Miscellaneous - The company incurs significant costs due to compliance with regulations and disclosure obligations as a public company[247]. - The company is increasingly dependent on sophisticated information technology systems, which require significant resources to maintain and protect[253]. - The company may be subject to various litigation claims and legal proceedings, which could result in significant legal fees and divert management's resources[257]. - The trading market for the company's common stock is influenced by the research and reports published by securities or industry analysts[355].

Financial Data and Key Metrics Changes - The company reported total revenue of $52.7 million for Q4 2024, representing a 40% increase compared to Q4 2023 [15][53] - US revenue was $42.9 million, a 52% increase year-over-year, accounting for 79% of total revenue [54] - International revenue was $9.8 million, reflecting a 5% growth year-over-year [55] - Adjusted EBITDA for Q4 2024 was $3.0 million, more than double the $1.3 million reported in Q4 2023 [64] - Free cash flow usage was $3.7 million, a 70% reduction compared to the year-to-date average for the first three quarters of 2024 [64] Business Line Data and Key Metrics Changes - Trauma and deformity global revenue reached $36.4 million, a 35% increase compared to the prior year [56] - Scoliosis global revenue was $15.6 million, increasing by 62% year-over-year [57] - The OPSB business is expected to grow north of 20% in 2025, driven by high demand and successful integration of Boston OMP [111] Market Data and Key Metrics Changes - International sales generated $9.8 million, with a 5% growth year-over-year, despite challenges in South America [40] - Non-LATAM T&D growth exceeded 20%, and scoliosis grew nearly 30%, indicating strong underlying demand [41] Company Strategy and Development Direction - The company aims to help one million kids annually and plans to dominate the $500 million pediatric orthopedic market [11][10] - Focus on capital-efficient growth through the OPSB business, which has a higher contribution margin than the implant business [11] - The company is expanding its clinic business and anticipates significant growth opportunities in new territories [27][92] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong demand for products and successful scaling of operations [14][18] - The anticipated EU MDR approval is expected to be a significant catalyst for growth in 2025 and beyond [42][43] - Management highlighted the importance of surgeon training and education in maintaining leadership in the pediatric orthopedic market [45] Other Important Information - The company made strategic decisions, including a $3.7 million restructuring charge due to the closure of the OP Israel office [49] - Gross profit margin for Q4 2024 was 68%, down from 71% in Q4 2023, primarily due to reclassification of expenses [59][60] Q&A Session Summary Question: Guidance on segment contributions and international business impact - Management indicated that while they do not guide by segment, they expect positive impacts from EU MDR in 2025 and beyond, with scoliosis growth likely outpacing trauma and deformity [75][82] Question: Opportunities in OPSB and clinic expansion - Management confirmed strong demand for OPSB and clinic expansion, with expectations of significant growth in 2025 [88][92] Question: Gross margin outlook and potential for improvement - Management acknowledged potential for gross margin improvement through consolidation and pricing strategies, but maintained conservative guidance [98][102] Question: Update on enabling technology and new product launches - Management reported progress on the Playbook enabling technology and confirmed that the new fusion implant system is on track for launch in the second half of the year [130]

Core Insights - OrthoPediatrics reported a revenue of $52.67 million for the quarter ended December 2024, reflecting a 40% increase year-over-year [1] - The earnings per share (EPS) was -$0.29, a decline from -$0.23 in the same quarter last year, with an EPS surprise of -31.82% compared to the consensus estimate of -$0.22 [1] - The revenue reported was slightly below the Zacks Consensus Estimate of $52.7 million, resulting in a surprise of -0.06% [1] Revenue Performance - Trauma and deformity product sales reached $36.41 million, exceeding the average estimate of $35.25 million, marking a year-over-year increase of 34.5% [4] - Sports medicine/other product sales were $0.63 million, falling short of the $1.12 million average estimate, representing a year-over-year decline of 29.2% [4] - Scoliosis product sales amounted to $15.63 million, surpassing the estimated $12.86 million, with a significant year-over-year increase of 61.8% [4] Stock Performance - Over the past month, OrthoPediatrics shares have returned -3.7%, compared to a -2.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - OrthoPediatrics reported a quarterly loss of $0.29 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.22, marking an earnings surprise of -31.82% [1] Financial Performance - The company posted revenues of $52.67 million for the quarter ended December 2024, slightly missing the Zacks Consensus Estimate by 0.06%, but showing an increase from $37.61 million in the same quarter last year [2] - Over the last four quarters, OrthoPediatrics has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - OrthoPediatrics shares have lost about 0.1% since the beginning of the year, compared to a decline of -0.5% for the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.16 on revenues of $52.47 million, and for the current fiscal year, it is -$0.86 on revenues of $239.3 million [7] - The trend of estimate revisions for OrthoPediatrics is mixed, which could change following the recent earnings report [6] Industry Context - The Medical - Instruments industry, to which OrthoPediatrics belongs, is currently in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Revenue Announcement - OrthoPediatrics Corp. announced preliminary unaudited net revenue for Q4 2024 and the full year ended December 31, 2024[4]. - The company provided management's projection for 2025 net revenue, indicating potential growth[4]. Financial Status - The financial information is preliminary and subject to change pending the completion of the audit process[6].

Core Viewpoint - OrthoPediatrics Corp. reported record financial results for the full year 2024, with total revenue of $204.7 million, a 38% increase from the previous year, and significant growth in adjusted EBITDA, indicating strong operational performance and market position in pediatric orthopedics [1][5][15]. Financial Performance - Total revenue for Q4 2024 was $52.7 million, a 40% increase from $37.6 million in Q4 2023, driven by growth in Global Trauma and Deformity, Scoliosis, and OPSB segments [4][7]. - Full year 2024 revenue reached $204.7 million, up 38% from $148.7 million in 2023, with U.S. revenue increasing by 45% to $161.2 million [5][7]. - Adjusted EBITDA for Q4 2024 was $3.0 million, compared to $1.3 million in Q4 2023, while full year adjusted EBITDA was $8.5 million, up from $5.0 million in 2023 [15][16]. Revenue Breakdown - U.S. revenue for Q4 2024 was $42.9 million, a 52% increase from $28.3 million in Q4 2023, representing 81% of total revenue [4][31]. - International revenue for Q4 2024 was $9.8 million, a 5% increase from $9.4 million in Q4 2023, accounting for 19% of total revenue [4][31]. - Trauma and Deformity revenue for Q4 2024 was $36.4 million, a 35% increase from $27.1 million in Q4 2023, while Scoliosis revenue increased by 62% to $15.6 million [6][31]. Operating Expenses - Total operating expenses for Q4 2024 were $49.6 million, a $14.8 million increase from $34.8 million in Q4 2023, primarily due to increased sales volume and the addition of Boston O&P [10][12]. - Sales and marketing expenses rose by 31.1% to $16.8 million in Q4 2024, while general and administrative expenses increased by 28.2% to $24.4 million [11][12]. Net Loss and Cash Flow - Net loss for Q4 2024 was $16.1 million, compared to a net loss of $6.7 million in Q4 2023, with net loss per share of $0.69 [15][16]. - The company reduced free cash flow usage by 70% in Q4 2024 compared to the third quarter of 2024, anticipating the first full quarter of positive free cash flow in Q4 2025 [7][15]. Future Guidance - For full year 2025, the company expects revenue to be in the range of $235.0 million to $242.0 million, representing growth of 15% to 18% compared to 2024 [18].

Core Insights - SOUR PATCH KIDS has launched a new product, Strawberry-Watermelon Glow Ups, which is the first gummy candy that glows under blacklight, featuring edible confetti made with turmeric extract [1][2] - The product aims to provide a multi-sensory experience beyond just taste, appealing to adventurous candy consumers [3] - SOUR PATCH KIDS Glow Ups will be available online on March 5th and at major retailers later in March, with a suggested retail price of $1.24 for a 3.08 oz bag and $2.98 for a 6.7 oz bag [5] Product Features - The Glow Ups are coated with flavorless turmeric extract confetti that emits a fluorescent glow under blacklight, allowing the strawberry-watermelon flavor to be the main focus [2] - The candy is designed for various events, enhancing experiences at concerts, gaming marathons, and movie nights [3] Marketing and Engagement - An exclusive Snapchat filter will be introduced, enabling users to experience the glow through augmented reality without needing a blacklight [4] - The product is positioned as a fun treat for social occasions, encouraging sharing and interaction among friends [3] Company Overview - Mondelēz International reported net revenues of approximately $36.4 billion in 2024, with a portfolio that includes iconic brands like Oreo, Ritz, and Cadbury [7]

Company Overview - OrthoPediatrics Corp. is focused exclusively on advancing pediatric orthopedics, offering over 75 products across three major categories: trauma and deformity, scoliosis, and sports medicine/other procedures [3] - The company was founded in 2006 and has a global sales organization that distributes products in the United States and over 70 countries [3] Financial Results Announcement - OrthoPediatrics is scheduled to release its fourth quarter and full year 2024 financial results on March 4, 2025, after market close [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 [2]

Core Insights - OrthoPediatrics Corp. has gained distribution rights to introduce additional bracing solutions in the US market through its OrthoPediatrics Specialty Bracing (OPSB) division [1][2] Company Overview - OrthoPediatrics is dedicated to advancing pediatric orthopedics and has developed a comprehensive product offering to improve the lives of children with orthopedic conditions [3] - The company currently markets over 70 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] New Product Offerings - The OPSB division has established a distribution agreement with Thrive Orthopedics LLC, focusing on three pediatric orthotic solutions [2] - The Thrive Orthopedics F3 Hero Pediatric AFO is a lightweight carbon fiber ankle foot orthosis designed to improve walking stability while allowing flexibility [2] - The TruStretch Pediatric Equinus Brace provides optimal stretching for children with equinus deformity [2] - The Thrive Pediatric X-Glide Carbon Fiber Insoles are available in both rigid and flexible styles for gait training [2] Leadership Commentary - Joe Hauser, President of the OPSB division, expressed pride in the advancements made to help children with non-operative care and highlighted the distribution agreement as a significant step in the company's growth strategy [3]

Core Insights - OrthoPediatrics Corp. achieved record full year 2024 revenue of $205 million, reflecting a 38% year-over-year growth compared to $148.7 million in 2023 [1][6] - The company projects 2025 revenue to be between $235 million and $242 million, indicating a growth of 15% to 18% compared to 2024 [3] - OrthoPediatrics expects to generate adjusted EBITDA of $15 million to $17 million for the full year 2025 [3] 2024 Business and Financial Highlights - The company helped over 34,000 children in Q4 2024, totaling over 1.1 million children since inception [6] - Preliminary unaudited Q4 2024 net revenue reached $52.7 million, a 40% increase from $37.6 million in Q4 2023 [6] - Domestic Q4 2024 net revenue is expected to be $42.9 million, representing a 52% growth year-over-year, while international net revenue is projected at $9.8 million, a 5% increase [6] Strategic Initiatives - The Trauma and Deformity and Scoliosis businesses are key contributors to the company's growth, with a strong performance in the specialty bracing (OPSB) business [4] - The company aims to expand and scale its OPSB business, viewing it as a significant market opportunity and a strategic catalyst for growth [4] - OrthoPediatrics plans to release detailed Q4 and full year 2024 financial results in early March, with preliminary figures subject to adjustment [4]