OrthoPediatrics Corp. Q1 FY2026 earnings call

• In the first quarter, supported the treatment of a record 45,000 children, extending cumulative impact to nearly 1.4 million kids helped. - 2026 started strong with 13% first quarter revenue growth, with adjusted EBITDA and free cash flow improvements. - Softer start to first quarter due to weather-related shutdowns in clinics, but trends rebounded in March and momentum carried into second quarter. - At earliest stages of multi-year innovation super cycle, recent beta launches like 3P HIP and VertiGlide generating strong demand. - OUS had strong first quarter with growth in excess of 20%, highlighted by great sales in EMEA and performance in Brazil under new agency structure. - Building on 7D experience, kicking off launch of digital preoperative interoperative workflow management platform playbook and deploying IotoMotion robot for pediatric cochlear implant placement. - Advancing multiple AI initiatives, including embedding intelligence into playbook platform and leveraging AI-enabled tools for presurgical planning.

In the first quarter of 2026, worldwide revenue was $59.4 million, an increase of 13% compared to the first quarter of 2025. U.S. revenue was $45.3 million, a 11% increase from the first quarter of 2025, representing 76% of total revenue. International revenue was $14.1 million, representing growth of 22% compared to the first quarter of 2025, or 24% of total revenue. The T&D business grew by 14% in the first quarter of 2026, driven by increased sales of flagship trauma and deformity systems and early returns from the beta launch of new implant and OPSB systems. The scoliosis business increased 13% in the first quarter of 2026, driven by increased sales of response and vertiglide systems and revenue generated from 7D technology. The OPSB business delivered over 20% growth in the quarter, contributing meaningfully to both revenue expansion and profitability.

• Raised 2026 revenue guidance to a range of $263 million to $267 million in revenue, representing 11 to 13% growth. - Expect approximately $25 million in adjusted EBITDA and full-year free cash flow breakeven in 2026. - EBITDA and free cash flow expected to exhibit similar quarterly seasonality patterns to 2025.

• Forward-looking statements subject to numerous risks and uncertainties, actual results may differ materially. - Non-GAAP financial measures have limitations as analytical tools. - International market拓展 may face challenges, like uncertainty in Brazil market structure improvement. - Risk of new product launch and market promotion not meeting expectations.

Q: Can you quantify the impact of weather on T&D from weather-related headwinds?

A: Remarks were specific to clinics shut down a week in January and a week in February, typically appointments get rescheduled, vast majority cleared in March and April, all behind us now.

Q: Do you think 3P platform translates into visible uptick in T&D second half growth?

A: Very few sets available on 3P side at this stage, additional sets expected in back half of Q2, Q3 and Q4 impacted by additional sets, will have meaningful impact on implant side of T&D business, impact on growth in second half, 2027 and 2028.