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 achieved a significant 56% improvement in adjusted EBITDA, reaching $6.2 million.
- The Trauma and Deformity (T&D) business grew by 17%, driven by strong market share gains and product line performances.
- The OPSB segment experienced robust growth, with sales increasing by over 20%, and the company expanded its clinic footprint significantly.
- OrthoPediatrics Corp (KIDS) maintained high gross margins and profitability despite challenges in certain segments, with a gross profit margin of 74% for the quarter.
- Revenue results fell short of expectations due to delays in 7D capital sales and prolonged headwinds from stocking and set sales in Latin and South America.
- The company recorded a GAAP net loss per share of $0.50, compared to $0.34 in the same period last year.
- Operating expenses increased by 19% compared to the prior year, driven by restructuring and impairment charges.
- The Scoliosis business growth was limited to 4%, impacted by lower 7D capital sales and challenges in the Latin American market.
- The company faced continued disruption in sales in Latin America, particularly Brazil, due to timing issues with large stocking and set orders.
Good afternoon, and welcome to the OrthoPediatrics Corporation third quarter 2025 conference call. (Operator Instructions) As a reminder, this call is being recorded for replay purposes. I would now like to turn the conference over to Trip Taylor from the Gilmartin Group for a few introductory comments.
Thank you for joining today's call. With me from the company are David 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 most recent annual report on Form 10-K, which was filed with the SEC on March 5, 2025, and
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