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]