Financial Data and Key Metrics Changes - In Q2 2025, worldwide revenue reached $61.1 million, a 16% increase compared to 2024, driven by strong performance across Trauma and Deformity, Scoliosis, and OPSB [26][27] - US revenue was $48.1 million, a 17% increase from 2024, representing 79% of total revenue [26] - International revenue totaled $12.9 million, reflecting a 12% growth compared to 2024, accounting for 21% of total revenue [27] - Gross profit margin decreased to 72% from 77% in 2024, primarily due to higher 7D growth and increased international set sales [28] - Adjusted EBITDA improved to $4.1 million, a 50% increase from $2.6 million in 2024 [32] Business Line Data and Key Metrics Changes - Trauma and Deformity global revenue was $41.7 million, a 10% increase year-over-year, driven by PMP femur, PMP tibia, DF2, and OPSB [27] - Scoliosis global revenue reached $18.5 million, a 35% increase compared to the prior year, driven by increased sales of Response, ApiFix, and 7D Technology [27][28] - The OPSB business grew over 20%, surpassing initial guidance for 2025 territory expansion [14][20] Market Data and Key Metrics Changes - International sales were solid, particularly in Europe and the Middle East, with strong surgical demand [6][23] - The company achieved its first EU MDR approval through LP Canada, which is expected to catalyze future growth [24] Company Strategy and Development Direction - The company is focused on expanding its OPSB strategy through territory expansion, accelerated R&D, and scaling its sales force [14][20] - The 3P pediatric plating platform is expected to enhance market share in trauma and limb deformity, with multiple new systems planned for launch [13][89] - The company is committed to helping more children and significantly growing revenue while improving adjusted EBITDA and reducing cash burn [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong momentum throughout 2025, driven by successful scaling of OPSB and innovative product launches [8][9] - The company raised its revenue guidance for 2025 to a range of $237 million to $242 million, representing year-over-year growth of 16% to 18% [33] Other Important Information - The company hosted 182 unique training experiences for over 3,420 healthcare professionals in Q2 2025 [25] - The company ended Q2 2025 with $72.2 million in cash, short-term investments, and restricted cash [32] Q&A Session Summary Question: Can you discuss the clinic strategy and the performance of existing clinics? - Management noted that existing clinics are seeing growth due to investments made on the sales side, while new Greenfield clinics are contributing to revenue but not yet at maximum volume [39][40] Question: Can you provide insights on the Scoliosis and T&D business growth expectations for the second half of the year? - Management expects Scoliosis growth to remain strong, potentially exceeding overall company growth, while T&D growth may be lighter due to previous quarter comparisons [45] Question: What caused the selective case slowdown in the limb deformity segment? - Management indicated that the volume was lighter in the first part of Q2 but rebounded strongly in June, attributing the fluctuation to normal business ebbs and flows [49][50] Question: How is the international product expansion strategy structured? - Management stated that international growth is expected to outpace US growth, with new product launches planned on a quarterly basis following EU MDR approvals [64][66] Question: What are the expectations for the trauma portfolio and potential product gaps? - Management highlighted the introduction of the 3P system as a significant opportunity to fill gaps in the trauma and deformity market, with plans for multiple system launches over the next few years [88][89]

Company Overview - OrthoPediatrics Corp. is focused exclusively on advancing pediatric orthopedics and has developed a comprehensive product offering to improve the lives of children with orthopedic conditions [4] - The company markets over 80 products across three major categories: trauma and deformity, scoliosis, and sports medicine/other procedures [4] - OrthoPediatrics distributes its products in the United States and over 70 countries globally [4] Product Launch - The company announced the US launch of the 3P™ Pediatric Plating Platform™ Hip System, designed for treating proximal femur fractures and deformities [1] - The 3P Hip System includes a Beam Screw construct and Locking Proximal Femur Plates available in Infant, Child, and Adolescent sizes, integrating advanced implant and instrument technology [3] - The first surgical case using the 3P Pediatric Plating Platform has been completed with positive feedback, and over 10 cases were booked in August alone, indicating strong initial demand [3] Market Position and Strategy - The launch of the 3P Pediatric Plating Platform marks the company's commitment to expanding its plating portfolio in pediatric orthopedics [3] - The system aims to address evolving demands for implants by providing improved precision and additional fixation options for surgeons [2] - The company is focused on building a comprehensive suite of products within the Trauma & Deformity Correction category [3]

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] - Adjusted EBITDA loss was reduced to $400,000, over 50% improvement 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] - Cash, short-term investments, and restricted cash at the end of Q1 2025 totaled $60.8 million [37] Business Line Data and Key Metrics Changes - Trauma and Deformity (T&D) global revenue was $37.9 million, a 14% increase year-over-year [33] - Scoliosis global revenue reached $13.7 million, a 34% increase compared to the prior period [33] - The OPSB business showed strong growth, contributing to overall revenue growth and market share gains [8][21] Market Data and Key Metrics Changes - International revenue was $11.5 million, an 11% increase year-over-year, driven by increased procedure volumes [32] - Trauma replenishment growth was nearly 20%, while scoliosis grew greater than 20% in international markets [26] - The company has minimal exposure to tariff-related impacts, with 95% of COGS from domestic suppliers [11] Company Strategy and Development Direction - The company aims to support the treatment of 1 million children annually, focusing on profitable growth and cash generation [41] - Expansion of OPSB is a key growth driver, with plans for territory expansion and new product launches [17][20] - The company is committed to innovative product development, with several FDA approvals and new product launches planned [8][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth and profitability despite broader economic conditions [12] - The company anticipates increased momentum throughout 2025, driven by successful scaling of OPSB and innovative product launches [12] - Management remains cautious about summer months, traditionally strong for the business, and is focused on cash collection in international markets [48][49] Other Important Information - The company received FDA approval for multiple products, including the Vertiglyde system and the 3P Pediatric Plating Platform Hip System [8][16] - The company hosted 172 training experiences for over 2,245 healthcare professionals in Q1 2025 [29] - OrthoPediatrics was named one of the best places to work in Indiana for 2025, marking the ninth time on this list [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 [44][45] Question: Why is the revenue guidance conservative despite strong performance? - Management indicated caution due to the upcoming summer months and a focus on cash collection in international markets [48][49] 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 are the plans for clinic expansion in Florida and Colorado? - Management expressed optimism about ongoing clinic performance and plans for further expansion in the U.S. and internationally [72][75] Question: Can you provide updates on the LE device submission and EU MDR products? - Management indicated positive discussions with the FDA regarding LE and plans to launch trauma and deformity products in Europe once EU MDR approval is secured [82][88]

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].