OrthoPediatrics Corp.

Good afternoon, and welcome to Ortho... Welcome to Orthopediatrics Corporation's 4th Quarter 2025 conference call. At this time, all participants are in listen-only mode. We will be facilitating a question and answer session towards the end of today's call. As a reminder, this call is being recorded for replay purposes. I would now like to turn the call over to Tripp Taylor, Investor Relations 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 Height, 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 and 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, to be updated next week, its subsequent quarterly reports on Form 10-Q. During the call today, management will also discuss certain non-GAAP financial measures, which are supplemental measures of performance. The company believes these measures provide useful information for investors in evaluating its operations period over period. For each non-GAAP financial measure referenced on this call, the company has included a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures in its fourth quarter earnings release. Please note that the non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitute for orthopediatrics financial results prepared in accordance with GAAP. In addition, the content of this conference call contains time-sensitive information that is accurate only as of the date of this live broadcast today, February 26, 2026, except as required by law The company undertakes no obligation to revise or update any statements to reflect events or circumstances taking place after the date of this call. With that, I would like to turn the call over to David Bailey, President and Chief Executive Officer.

Thanks, Tripp. Good afternoon, everyone, and thank you for joining us today. We're proud to start this call with our typical and most meaningful performance metrics. In the fourth quarter, we supported the treatment of more than 37,500 children, increasing our total impact to approximately 1.3 million kids' health. Historically, the medical industry has overlooked the importance of offering custom-tailored solutions to the unique needs of pediatric patients. At Orthopediatrics, we are changing the status quo by bringing an unparalleled level of attention and innovation to the pediatric market, and we will continue to advance this goal. We closed out 2025 strong with 17% fourth quarter revenue growth, representing growth across the entire business, improved adjusted EBITDA over the prior period, and generated $10 million of fourth quarter free cash flow, which is our first quarter positive free cash flow in the company's history. Full year performance for 2025 was highlighted by 15% revenue growth, nearly 75% increase in adjusted EBITDA, and a drastic improvement in cash usage down to $15 million from $41 million in the previous year. Our track record of execution is a strong indication that we can sustain meaningful top-line revenue growth while generating increasing profitability and delivering cash flow breakeven in 2026. We are uniquely positioned among peers of our scale with the ability to drive both top and bottom-line growth. To that end, We are the clear market leader in pediatric orthopedics, and we have now demonstrated that our self-sustaining business model can grow the top line, generate positive adjusted EBITDA, and deliver positive FCF. We feel that the investment community is underappreciating the strength of our position, and we intend to keep exploring all options at our disposal to improve shareholder value while advancing our mission to help 1 million kids every year. I also want to emphasize today that in 2025, we commenced what we believe is the most substantial and technologically advanced series of product launches in OP history. This kicks off a multi-year super cycle of product innovation and launches that will serve as the foundation of our growth for years to come. Notable products include 3P HIP, VertiGlide, new OPSB products, Halo Gravity Traction, Playbook on the enabling technology side, as well as the LE Electromechanical Growing Spine System with First in Human yet this year. As this expansion of our portfolio strengthens our foundation in orthopedics, over the medium term, we are looking to broaden our footprint into other pediatric subspecialties, while expanding our CAN and further leveraging our powerful global commercial channel. Considering all these factors, we are approaching 2026 on track to make excellent progress towards our goals, with a few primary goals in mind. continued share-taking across the business, further OPSB expansion, execution of our multi-year new product super cycle, leading to stronger EBITDA margin, as well as dramatically improved free cash flow performance. We are reiterating our 2026 revenue guidance of $262 million to $266 million, representing annual growth of 11% to 13%. And we expect to generate approximately $25 million of adjusted EBITDA while achieving free cash flow break-even for the full year. Turning to our T&D business. In the fourth quarter of 2025, the T&D business grew by 17%, driven by increased sales of our flagship trauma and deformity systems and continued deployment of new product sets. Highlights of the quarter included our continued full commercial launch of the first-ever pediatric tibial nail, PMP Tibia, and the beta launch of 3P pediatric plating platform, Hip Systems. Our 3P HIP system has exceeded expectations in its early stages, and this system is expected to contribute materially to revenue growth with a full commercial launch expected in the first half of 2026. We were also thrilled to receive FDA approval for the 3P Small Mini, the second system in our 3P plating family. We'll be conducting the beta launch of 3P Small Mini in 2026 and expect to continue advancing development on several new 3P systems that will be launched over the next three years. With our 3P system continuing to build momentum, we believe that it will prove to be the most advanced and comprehensive pediatric plating system in the history of our specialty. To wrap up on our T&D business, we're following the extremely successful launches of PMP Femur and PMP Tibia with PMP Retro, the first and only pediatric retrograde IM nail system while also expanding our leadership in telescopic nailing for rare bone diseases with the next generation FD rod. Overall, T&D continues to be the pacesetter for our business, and our development pipeline has never been more clinically relevant and full of promise. Looking at our specialty bracing business, OPSB continues to be a strategic growth catalyst, supporting both our revenue growth and profitability in a meaningful way while further strengthening our customer relationship. As such, the business continues to see success, and our clinic expansion strategy is ahead of schedule. In Q4, we expanded our footprint in Connecticut, and we expect to continue executing our successful strategy for both Greenfield and AquaHire expansion. Same-store sales growth remains strong, and new product launches and Salesforce expansion are going very well. We also continue to remain open to opportunistic acquisitions that fit our strategic focus. On the product side, OPSB saw a flurry of new launches in 2025, including expanding indications for the DF2 brace that has exploded in popularity and is changing the gold standard for treatment in pediatric femur fractures in young children. Additionally, we beta-launched a trio of bracing products for the treatment of hip deformities that are in the process of moving to full commercial release in 2026. Within OPSB, we are now fully on track to meet or exceed our annual goal of four to five new product launches every year for the foreseeable future. In addition to the full commercial launch of the three solutions that make up the PD Hip Brace Portfolio, we will launch two products aimed to be used in synergy with OP Implant Systems to treat the entire continuum of care for kids. These are the Traxio Halo Gravity Traction System in partnership with the Cenotec Group and the OPSB knee and ankle tractor fix braces meant for treating contractures following X-fix surgery. It is evident that we are continuing to execute against our three-pronged plan for OPSB, Salesforce expansion, focused new product development, and measured clinic expansion. Ultimately, we could not be more pleased with the OPSB performance and its strategic impact. In scoliosis, we experienced 13% growth in the fourth quarter of 2025, and we were particularly pleased with our EOS product launches. Throughout 2025, we continued our push into the EOS space with the full launch of response ribbon pelvic and the beta launch of the much-awaited vertiglide system, providing a promising new growth-friendly treatment option for young scoliosis patients. Notably, in the second half of 2025, we completed the first surgical cases with the vertiglide system, making an introduction of this technology into clinical use. I think it's important to stop and recognize the impact technology like VertiGlide can have on a young person's life. We recently received feedback from a surgeon on his first VertiGlide postoperative visit with a patient. The smiles on the patient's and their family's faces told him everything he needed to know without saying a word, and they shared a deeply moving moment. The patient's motor functions were improved, and that level of neurologic improvement is highly uncommon in this respective patient population. This technology is literally transforming patients' lives. We're seeing solid early usage of the new VertiGlide system in its limited release and plan to move to full market release in the coming months. We are proud of our successful launches in 2025, and they further bolster our belief that our EOS strategy is working. In addition to the full launch of VertiGlide, We're nearing completion of our third and most complex EOS product, Ellie. As a reminder, Ellie is a next-generation smart electromechanical lengthening spine implant designed to deliver consistent and reliable power through RF power transmission. We expect the first implantations of the Ellie device in late 2026. Beyond declaring victory on the most technologically advanced and comprehensive EOS portfolio in pediatric spine surgery, We also expect to complete development and beta launch our next generation scoliosis fusion system in the second half of 2026 in conjunction with a suite of unique, predictive, preoperative planning software. Once complete, we believe OP will offer an unrivaled portfolio of pediatric scoliosis technology that will allow our customers to treat children with the most severe and complicated pathologies. Moving to our international business. OUS growth rebounded with a strong fourth quarter highlighted by solid demand in our direct markets in the EU and Australia. Surgeon usage was high across the portfolio, and we saw a strong rebound in LAT-SAN from replenishment orders. EMEA and APAC revenue was very solid, which largely comes through our sales agencies and is a good reflection of high surgeon usage and higher margin replenishment revenue. From a strategic standpoint, we made structural improvements in Brazil through the purchase of one of our Brazilian distributors, FollowMed, in late November. We believe, over the next several quarters, this acquisition will enable us to improve our cash collection and, over time, normalize ordering patterns to drive additional growth and market penetration in the region. We are also very excited about the EUMDR approvals for several T&D and scoliosis products, as well as a recent approval for our X6 devices. Efforts are now underway to provide our EU markets with products they have long been waiting for, and we expect this to have a positive impact on EU growth in 2026. Lastly, we'd like to underscore two developments outside of our traditional segments. It's very early and revenue is small, but we are building on the success of our 7D experience and are kicking off the launch of our comprehensive digital surgical platform playbook. It is designed to support teams across the full continuum of care from preoperative planning through interoperative execution and post-procedural performance analysis. And we expect deployment to beta launch sites in 2026. Additionally, as announced following the FDA approval of key pediatric indications during the fourth quarter of 2025, we have placed our first Iota Motion unit at Cincinnati Children's Hospitals. Under our exclusive partnership with Iota Motion, we are moving towards the full commercial launch of OP's first non-orthopedic technology. This milestone allows us to leverage our existing capabilities and to bring the same discipline, focus, and pediatric-first expertise beyond orthopedics. And we are excited to advance this innovative technology. With that, I'd like to turn the call over to Fred to provide more detail on our financial results. Fred?