On March 4, 2025, OrthoPediatrics Corp (KIDS, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full year of 2024. OrthoPediatrics Corp, a medical device company specializing in pediatric orthopedic products, reported a significant increase in revenue but faced challenges with rising net losses.
Company Overview
OrthoPediatrics Corp is dedicated to the pediatric orthopedic market, providing a range of implants and instruments designed to meet the needs of surgeons and patients. The company's product offerings include PediLoc, PediPlates, Cannulated Screws, PediFlexTM nail, PediNailTM, and more.
Performance and Challenges
OrthoPediatrics Corp reported a total revenue of $52.7 million for Q4 2024, surpassing the analyst estimate of $51.03 million and marking a 40% increase from the same period last year. However, the company reported a net loss of $16.1 million for the quarter, translating to a loss per share of $0.69, which is below the estimated earnings per share of -$0.32. The increase in net loss was attributed to higher operating expenses and restructuring charges.
Financial Achievements
The company achieved record full-year revenue of $204.7 million, a 38% increase from 2023. This growth was driven by strong performance in the U.S. market, which saw a 45% increase in revenue, and a 15% increase in international sales. The adjusted EBITDA for the full year was $8.5 million, up from $5.0 million in 2023, highlighting the company's ability to improve operational efficiency despite rising costs.
Key Financial Metrics
Gross profit for Q4 2024 was $35.6 million, with a gross profit margin of 67.5%, down from 71.0% in the previous year. The decrease in margin was due to reclassification of certain expenses related to the Boston O&P manufacturing business. Operating expenses increased by 33% for the full year, driven by higher sales and marketing expenses and the addition of Boston O&P.
2024 was yet another year that OrthoPediatrics delivered strong results, successfully executed on our strategy, and further solidified our market leading position," commented David Bailey, President & CEO of OrthoPediatrics.
| Metric | Q4 2024 | Q4 2023 | Full Year 2024 | Full Year 2023 |
|---|---|---|---|---|
| Total Revenue | $52.7M | $37.6M | $204.7M | $148.7M |
| Net Loss | -$16.1M | -$6.7M | -$37.8M | -$21.0M |
| Adjusted EBITDA | $3.0M | $1.3M | $8.5M | $5.0M |
Analysis
OrthoPediatrics Corp's strong revenue growth is a positive indicator of its market position and the demand for its pediatric orthopedic products. However, the increased net loss highlights the challenges the company faces in managing operating expenses and restructuring costs. The company's focus on expanding its product offerings and market reach is crucial for sustaining growth and improving profitability in the future.
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Explore the complete 8-K earnings release (here) from OrthoPediatrics Corp for further details.
