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]

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]

Financial Data and Key Metrics Changes - In Q1 2025, worldwide revenue reached $52.4 million, a 17% increase compared to Q1 2024 [32] - U.S. revenue was $40.9 million, reflecting a 19% increase and accounting for 78% of total revenue [33] - Adjusted EBITDA loss improved by over 50% year-over-year, from a loss of $1.1 million in Q1 2024 to a loss of $0.4 million in Q1 2025 [39] - Free cash flow usage decreased by 36% year-over-year, amounting to $8.4 million in Q1 2025 [39] Business Line Data and Key Metrics Changes - Trauma and Deformity (T&D) global revenue was $37.9 million, a 14% increase year-over-year [34] - Scoliosis global revenue increased by 34% to $13.7 million, driven by sales of Response, ApiFix, and 3D patient-specific braces [35][22] - The OPSB business showed strong growth, contributing to overall revenue growth and expanding market share [18] Market Data and Key Metrics Changes - International revenue grew by 11% to $11.5 million, representing 22% of total revenue [33] - U.S. market growth was strong, while Latin America experienced softness, impacting overall international performance [15][27] Company Strategy and Development Direction - The company aims to scale OPSB and increase market share through innovative product launches and strategic set deployments [7][13] - The focus remains on expanding clinic territories, with North Carolina being the latest addition, and potential for further expansion in the second half of 2025 [19][21] - The company is committed to becoming a profitable and cash-generative business while helping more children through its products [42][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth and profitability despite broader economic conditions, citing minimal exposure to tariffs [12][13] - The company anticipates revenue growth of 15% to 18% for the full year 2025, increasing guidance to $236 million to $242 million [13][40] - Management remains cautious about summer months, traditionally strong for the business, and is focused on improving cash collection in international markets [51][52] Other Important Information - The company received five FDA approvals in 2025, including significant systems like the Vertiglyde and 3P Pediatric Plating Platform Hip System [9][17] - The company hosted 172 training experiences for over 2,245 healthcare professionals in Q1 2025, enhancing surgeon education and product adoption [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 [46][47] Question: Why is the revenue guidance conservative despite strong performance? - Management indicated traditional caution regarding summer months and ongoing adjustments in international markets to improve cash flow [50][51] 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 is the outlook for the EU MDR approval process? - Management expressed optimism about the EU MDR process, with plans to launch several products once approvals are secured [84][85] Question: Can you elaborate on the upcoming product launches in OPSB? - Management confirmed plans for multiple product launches in OPSB, including new bracing technologies and products for developmental hip dysplasia [92][93]