Financial Data and Key Metrics Changes - In Q1 2025, the company reported pro forma net sales of $189.2 million, representing a year-over-year constant currency growth of 6% [7] - Adjusted EBITDA margin expanded, exceeding expectations, with pro forma adjusted EBITDA of $11.4 million, reflecting a margin expansion of approximately 200 basis points compared to Q1 2024 [28][29] - Total cash balance at the end of Q1 was $60.5 million, with expectations of positive free cash flow for the full year 2025, excluding restructuring charges related to the M6 product lines [29][37] Business Line Data and Key Metrics Changes - The U.S. Spinal Fixation business grew by 5.4% on a same sales day basis, with some short-term softness due to distributor transitions [10] - Bone Growth Therapies (BGT) net sales grew by 7% overall in Q1, with fracture sales growing by 8% [13][26] - The global orthopedic business experienced a strong start, delivering constant currency growth of 13% on a same sales day basis [14][27] Market Data and Key Metrics Changes - The U.S. Orthopedics segment grew by 12%, driven by strong performance in TRULOC and FITBOND products [15][27] - The international orthopedic business grew by 14% compared to the prior year, with variability expected due to the nature of stocking distributor and tender orders [28] Company Strategy and Development Direction - The company is focused on three strategic priorities: sharpening commercial execution, improving gross margins, and disciplined capital allocation [21] - The management is optimistic about the upcoming product launches, including the TRULOC Elevate TBT system, which addresses significant market opportunities in limb reconstruction [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive profitable growth and innovation while increasing long-term shareholder value [21][39] - The company is well-positioned to capitalize on recent product launch successes and maintain a healthy commercial pipeline for substantial revenue growth [20] Other Important Information - The company announced the discontinuation of the M6 artificial disc product lines, which had been a drag on profitability [30] - The anticipated annual exposure to tariffs is estimated to be approximately $3 million to $4 million, which is manageable and already contemplated in the guidance [34] Q&A Session Summary Question: Rationale for optimization within the Spine channel - Management indicated that the optimization is aimed at enhancing long-term growth and shareholder value, with a strong commercial pipeline ready to deliver substantial revenue growth starting later this year [43][44] Question: Maintaining adjusted EBITDA while lowering top line - The company has focused on making high-return investments and rightsizing shared services, which has contributed to maintaining adjusted EBITDA despite lower revenue [45][46] Question: Impact of selling days on growth - The company acknowledged that one less selling day in Q1 resulted in a headwind of over 1.5% on the growth rate [51] Question: Specific impacts of NGO business on segments - The NGO business will impact the international orthopedic segment, with no updates to long-term guidance at this time [63] Question: Details on AxleStim 2.0 functionality - AxleStim 2.0 integrates with the physician portal, allowing for patient monitoring and compliance, which is expected to enhance market penetration [69][70] Question: TRULOC system performance and data collection - The TRULOC system is in limited clinical release, with positive surgeon interest and ongoing data collection to demonstrate its benefits [73][74]