OrthoPediatrics (NasdaqGM:KIDS) 2025 Conference Transcript

Summary of OrthoPediatrics Conference Call Company Overview - Company Name: OrthoPediatrics (NasdaqGM: KIDS) - Industry: Pediatric Orthopedics - Focus: Solely dedicated to pediatric orthopedic solutions, with no involvement in adult orthopedic products [2][3] Key Points and Arguments - Market Impact: OrthoPediatrics has helped a cumulative total of 1.3 million children, with a goal to assist over 150,000 children in 2025 and an objective to reach 1 million annually in the future [2][3] - Unique Product Development: The company has developed products specifically designed for pediatric patients, addressing unique clinical conditions such as curved bones, which differ significantly from adults [2][3] - Market Size: The global pediatric orthopedic market is estimated to be around $6 billion, with significant segments including trauma and deformity, scoliosis, specialty bracing, and enabling technology [5] - Sales Strategy: OrthoPediatrics focuses exclusively on children's hospitals in the U.S., which number approximately 300-400, avoiding adult hospitals entirely [5][6] - Sales Force: The company employs over 230 sales agents in the U.S. and sells products in over 75 countries, supported by an additional 200 individuals servicing those hospitals [4][5] Product Portfolio and Innovations - Product Range: The company has expanded its product offerings from 17 at the time of its IPO in 2017 to over 80 systems currently available [14][22] - Recent Acquisitions: Notable acquisitions include Firefly (navigation system for scoliosis), Appifix (internal brace for scoliosis), and Boston O&P (specialty braces and clinics) [9][10][18] - New Technologies: Introduction of innovative products such as the VertiGlide system for severe early-onset scoliosis and the DF2 Brace for hip dysplasia, which replaces traditional spica casts [16][17] Financial Performance - Revenue Growth: The company has consistently achieved over 20% annual growth, with a projected growth rate of 14% for 2025 [19][21] - EBITDA Guidance: For 2025, the company expects adjusted EBITDA between $15 million and $17 million, a significant increase from $8.5 million the previous year [21][22] - Cash Flow Management: OrthoPediatrics aims to achieve positive free cash flow in Q4 2025 and break-even in 2026, having reduced cash usage significantly from $40 million two years ago to an expected $20 million this year [23][24] Strategic Focus - Clinical Education Commitment: The company emphasizes the importance of clinical education, hosting over 300 training sessions annually for surgeons and clinicians [4][13] - Market Expansion: Plans to continue expanding both product offerings and clinic presence, with a focus on specialty bracing, which is projected to grow over 20% annually for the next three to five years [19][18] Conclusion - OrthoPediatrics is positioned as a leader in the pediatric orthopedic market, with a strong commitment to innovation, clinical education, and strategic growth through acquisitions and product development [22][24]