Preliminary Q3 2025 OrthoPediatrics Corp Earnings Call Transcript
Key Points
- OrthoPediatrics Corp (KIDS) reported a 12% increase in worldwide revenue for the third quarter of 2025 compared to the same period in 2024.
- The company's core business segments, including trauma and deformity, scoliosis implants, and specialty bracing, continue to generate higher margins and better free cash flow.
- Excluding 7D capital sales, the company saw a 17% growth in global revenue and a 19% growth in domestic revenue.
- Recent product launches, such as Verteglide and 3P, have shown strong early returns, exceeding initial expectations.
- OrthoPediatrics Corp (KIDS) remains committed to achieving free cash flow break-even by 2026 and expects to deliver its first quarter of free cash flow positivity in the fourth quarter of 2025.
- The company fell short of its revenue expectations for the third quarter of 2025, primarily due to delayed 7D capital sales and continued challenges in Latin and South America.
- OrthoPediatrics Corp (KIDS) has reduced its full-year 2025 revenue guidance from $237 million-$242 million to $233.5 million-$234.5 million.
- The timing of 7D capital sales remains unpredictable, impacting quarterly results and leading to a more conservative long-term growth outlook.
- Challenges in Latin and South America, particularly in Brazil, continue to negatively impact growth due to timing issues with large stocking and set orders.
- The company has adjusted its long-term revenue growth outlook to 12% or greater annually, reflecting uncertainties in certain segments.
Good afternoon and welcome to the OrthoPediatrics Corporation's third-quarter 2025 preliminary results conference call. (Operator Instructions) As a reminder, this call is being recorded for replay purposes.
I will now turn the call over to Hannah Jeffrey from the Gilmartin Group, Investor Relations, for a few introductory comments. Please go ahead.
Thank you for joining us for today's call. With me from the company are Dave Bailey, President and Chief Executive Officer; and Fred Hite, Chief Operating and Financial Officer.
Before we begin today, let me remind you that the company's remarks include forward-looking statements within the meaning of federal securities laws, including the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to numerous risks and uncertainties, and the company's actual results may differ materially.
For a discussion of risk factors, I encourage you to review the company's
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