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- **Core Growth**: 17% T&D and 4% Scoliosis growth drove Q3 revenue, excluding 7D/LatAm headwinds.
- **Profitability Improvement**: EBITDA up 56% to $6.2M; free cash flow usage down 70% to $3.4M.
- **Strategic Focus**: Shifting to higher-margin implants and OPSB clinics, targeting 12%+ 2026 growth.
- **Competitive Advantage**: Major competitors exiting pediatric market, creating share gains.
- **Risk Management**: Reducing LatAm stocking to focus on profitable implants; diversifying international growth.
- **Pipeline Momentum**: 3P Hip launch ahead of schedule; NextGen spinal fusion system 2026-2027.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 revenue of $61.2 million, up 12% YoY, driven by Trauma & Deformity (17% growth) and Scoliosis (4% growth). Excluding 7D capital and Latin America (LatAm) stocking, core revenue grew 17% globally and 19% domestically.
- **Key Product Performances**: 
  - T&D implants (e.g., PNP Femur, Tibia) saw strong adoption; 3P Pediatric Plating System launched ahead of schedule.
  - OPSB clinics expanded to 40+ locations, with 25% return on acquisitions and 40% for greenfield clinics.
  - Scoliosis implant sales grew despite delayed 7D unit placements.
- **Profitability**: Adjusted EBITDA improved 56% to $6.2 million; free cash flow usage decreased to $3.4 million (vs. $11.7M prior year).
- **Outlook**: Full-year 2025 revenue $233.5M-$234.5M, targeting 12%+ 2026 growth. Free cash flow breakeven by Q4 2025, $15M+ new set deployments.

**【CFO Financial Commentary】**
- **Financial Metrics**: 
  - GAAP net loss $0.50/share; Non-GAAP loss $0.24/share.
  - Gross margin 74%, up from 73% YoY.
  - Operating expenses $54.7M (+19%), driven by restructuring ($2.3M) and OPSB clinic growth.
- **Cash Position**: $59.8M in cash, short-term investments.
- **Guidance**: 2025 EBITDA $15M-$17M; 2026 free cash flow breakeven.

**【Q&A Highlights】**
- **Competitive Landscape**: Major competitors (J&J, Smith & Nephew) exiting pediatric-specific products, creating share opportunities.
- **LatAm Strategy**: Reduced focus on low-margin stocking/set sales to prioritize high-margin implant business.
- **Product Pipeline**: 3P Hip system launch in Q4 2025; NextGen spinal fusion system expected 2026-2027.
- **OPSB Expansion**: 12%+ baseline growth target, with 20+ new clinics planned annually.
- **Risk Mitigation**: Diversifying international growth (EMEA, APAC) to offset LatAm volatility.

OrthoPediatrics Corp. (KIDS) Q3 2025 Earnings Call Transcript

- **Revenue Beat**: $61.1M (+16% YoY), driven by 35% Scoliosis growth and 10% Trauma expansion.
- **OPSB Momentum**: 40+ clinics globally, including Ireland's first international brace center.
- **Profitability**: $15-17M EBITDA target on track; Q4 free cash flow expected.
- **Product Pipeline**: VerteGlide EOS device launching Q3; 3P plating system gaining traction.
- **International Growth**: EU MDR approvals set to accelerate European expansion.

**【CEO Summary Section】**
- Q2 2025 revenue reached $61.1 million, up 16% YoY, driven by 35% growth in Scoliosis and 10% in Trauma & Deformity. Key products include DF2 brace and 3P plating system.
- OPSB expansion accelerated with 40+ clinics globally, including first international clinic in Ireland. U.S. expansion into NYC, California, and Ohio.
- Raised 2025 revenue guidance to $237-242 million (16-18% growth) and reaffirmed $15-17 million adjusted EBITDA target.
- Free cash flow expected in Q4 2025, with full-year breakeven in 2026.

**【CFO Financial Commentary】**
- Gross profit margin 72% (down 5ppt vs. Q2 2024 due to higher international sales and 7D growth).
- Operating expenses rose 18% to $54.7 million, driven by restructuring ($3M) and personnel additions for OPSB.
- Non-GAAP net loss per share improved to $0.11 vs. $0.23 prior year.
- Cash balance $72.2 million; $25M drawn on credit line.

**【Q&A Highlights】**
- **OPSB Strategy**: Greenfield clinics in hospitals ramp faster (e.g., Nationwide Children's), while Acquihires expand reach. Ireland clinic ties with scoliosis implant growth.
- **Scoliosis Growth**: 35% Q2 growth from new surgeon adoptions of ApiFix and RESPONSE. VerteGlide EOS device first cases in August.
- **International Expansion**: EU MDR approval for Pega products; Brazil set sales offset by U.S. Trauma strength.
- **3P Platform**: First surgical case completed; Small & Mini system FDA submission pending.
- **Free Cash Flow**: Q4 2025 positivity expected with 2026 breakeven.


OrthoPediatrics Corp. (KIDS) Q2 2025 Earnings Call Transcript

- **17% Revenue Growth**: Driven by OPSB expansion (20%+), surgical market share gains, and 5 FDA approvals.
- **Profitability Improvements**: EBITDA loss down >50%, free cash flow +36%.
- **2026 Cash Breakeven**: Minimal H2 2025 cash usage; 2026 target: free cash flow neutral.
- **Macroeconomic Resilience**: 95% COGS domestic/Canadian; >20% revenue from nonelective trauma.

**【CEO Key Highlights】**
- **Revenue Growth**: Global revenue increased 17% YoY, driven by OPSB expansion (20%+ growth), surgical market share gains, and new product launches (e.g., VerteGlide, PNP Femur/Tibia). 
- **Operational Efficiency**: Adjusted EBITDA loss reduced by >50% YoY; free cash flow improved 36%.
- **Pipeline Momentum**: 5 FDA approvals in Q1 2025, including 2 major systems (3P Hip, VerteGlide). RESPONSE Fusion adoption boosted by 7D unit deployments.
- **Cash Flow Outlook**: H2 2025 cash usage expected to be minimal, with full-year free cash flow breakeven in 2026.

**【CFO Financial Summary】**
- **Profitability**: GAAP net loss narrowed, with Non-GAAP metrics showing improved operational efficiency.
- **Cash Management**: 2025 set deployment costs fully covered by adjusted EBITDA; 2026 target: free cash flow breakeven.
- **Tariff Resilience**: 95% of COGS sourced domestically or from Canada, minimizing tariff exposure. >20% of revenue from nonelective trauma procedures, reducing macroeconomic risk.

OrthoPediatrics (KIDS)-7 May 25-2025 Q1 Earnings call transcript

- **Revenue Surge**: Q4 2024 revenue up 40% to $52.7M, driven by 52% U.S. T&D growth and 62% scoliosis expansion.
- **OPSB Flywheel**: 2024 OPSB >$25M, 2025 targets 4 new clinics and DF2 brace demand requiring additional manufacturing.
- **Free Cash Flow Milestone**: First positive quarter in Q4 2025, with 2025 EBITDA guidance of $15-17M.
- **Gross Margin Adjustment**: 2025 guidance 72-73% (down from 74-75%) due to P&L reclassification, but profitability intact.
- **Innovation Pipeline**: 3P hip system launch and EOS approvals set for 2025, positioning for 2026+ growth.


**【CEO Summary Section】**
- Q4 2024 revenue reached $52.7 million, up 40% YoY, driven by 52% growth in U.S. T&D and 62% growth in scoliosis. Key contributors included Boston O&P integration, DF2 brace adoption, and set deployments.
- OPSB (Orthopedic Specialty Bracing) generated over $25 million in 2024, with plans for 4 new clinic territories in 2025. DF2 femur fracture brace demand exceeds manufacturing capacity, requiring additional sources.
- 2025 guidance: $235-242 million revenue (15-18% growth), $15-17 million adjusted EBITDA, and first positive free cash flow in Q4 2025.
- Strategic priorities: scaling OPSB, leveraging prior set deployments (2025: $15 million), and launching innovative products like 3P hip plating system.

**【CFO Financial Commentary】**
- Q4 2024 GAAP net income: $420 million; Non-GAAP EPS: $1.08 (vs. $0.95 prior year). Adjusted EBITDA: $3.0 million (up 138% YoY).
- Gross margin: 68% (down 3% YoY due to reclassifying $3 million G&A to COGS). Full-year 2024 gross margin: 72.6%.
- Free cash flow usage: $3.7 million (70% improvement YoY). Cash reserves: $70.8 million + $25 million term loan.
- 2025 gross margin guidance: 72-73% (previously 74-75%), reflecting P&L reclassification.

**【Q&A Key Highlights】**
- **OPS Business Momentum**: 2025 growth >20%, with 4 new clinics and DF2 brace demand outpacing manufacturing. EU MDR approvals for scoliosis implants expected mid-2025, targeting 2026+ growth.
- **Gross Margin Optimization**: Focus on selling price increases, manufacturing consolidation (moving ApiFix production to U.S.), and leveraging fixed costs in OPSB.
- **Set Deployments**: 2025 target: $15 million (down from 2024's $21.1 million), focused on new products like 3P hip system. 2026+ deployment tied to EOS and Fusion innovations.
- **7D Impact**: 2024 placements drove scoliosis revenue growth; 2025 placements expected to accelerate adoption of RESPONSE Fusion system.
- **Medicaid Risk**: Minimal expected impact, as pediatric care providers (e.g., Shriners) operate on endowments and device cost-effectiveness justifies coverage.


OrthoPediatrics (KIDS)-4 Mar 25-2024 Q4 Earnings call transcript

OrthoPediatrics (KIDS)-7 Nov 24-2024 Q3 Earnings call transcript

OrthoPediatrics (KIDS)-6 Aug 24-2024 Q2 Earnings call transcript

OrthoPediatrics (KIDS)-7 May 24-2024 Q1 Earnings call transcript

OrthoPediatrics (KIDS)-7 Mar 24-2023 Q4 Earnings call transcript

OrthoPediatrics (KIDS)-7 Nov 23-2023 Q3 Earnings call transcript

OrthoPediatrics (KIDS)-1 Aug 23-2023 Q2 Earnings call transcript

OrthoPediatrics (KIDS)-2 May 23-2023 Q1 Earnings call transcript

OrthoPediatrics (KIDS)-1 Mar 23-2022 Q4 Earnings call transcript

OrthoPediatrics (KIDS)-2 Nov 22-2022 Q3 Earnings call transcript

OrthoPediatrics (KIDS)-6 Aug 22-2022 Q2 Earnings call transcript

OrthoPediatrics (KIDS)-7 May 22-2022 Q1 Earnings call transcript

OrthoPediatrics (KIDS)-3 Mar 22-2021 Q4 Earnings call transcript

OrthoPediatrics (KIDS)-6 Nov 21-2021 Q3 Earnings call transcript

OrthoPediatrics (KIDS)-7 Aug 21-2021 Q2 Earnings call transcript

OrthoPediatrics (KIDS)-9 May 21-2021 Q1 Earnings call transcript

OrthoPediatrics (KIDS)-11 Mar 21-2020 Q4 Earnings call transcript

OrthoPediatrics (KIDS)-8 Nov 20-2020 Q3 Earnings call transcript

OrthoPediatrics (KIDS)-8 Aug 20-2020 Q2 Earnings call transcript

OrthoPediatrics (KIDS)-10 May 20-2020 Q1 Earnings call transcript

OrthoPediatrics (KIDS)-5 Mar 20-2019 Q4 Earnings call transcript

OrthoPediatrics (KIDS)-8 Nov 19-2019 Q3 Earnings call transcript

OrthoPediatrics (KIDS)-10 Aug 19-2019 Q2 Earnings call transcript

OrthoPediatrics (KIDS)-13 May 19-2019 Q1 Earnings call transcript

OrthoPediatrics (KIDS)-7 Mar 19-2018 Q4 Earnings call transcript

OrthoPediatrics (KIDS)-3 Nov 18-2018 Q3 Earnings call transcript

OrthoPediatrics (KIDS)-12 Aug 18-2018 Q2 Earnings call transcript

OrthoPediatrics (KIDS)-15 May 18-2018 Q1 Earnings call transcript

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