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]