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Dec 31, 2024

OrthoPediatrics Q4 2024 Earnings Report

OrthoPediatrics reported strong revenue growth but widened net losses in Q4 2024.

Key Takeaways

OrthoPediatrics Corp. reported Q4 2024 revenue of $52.7 million, up 40% year-over-year, driven by strong growth in Trauma and Deformity, Scoliosis, and the addition of Boston O&P. Despite this, the company reported a net loss of $16.1 million, widening from $6.7 million in the prior year. Adjusted EBITDA improved to $3.0 million from $1.3 million. Gross margin declined slightly due to reclassified costs. The company reiterated its 2025 revenue guidance of $235 million to $242 million.

Q4 2024 revenue increased 40% year-over-year to $52.7 million.

Net loss widened to $16.1 million, or $0.69 per share.

Adjusted EPS was -$0.29, reflecting restructuring and impairment charges.

Adjusted EBITDA improved to $3.0 million, up from $1.3 million.

Total Revenue
$52.7M
Previous year: $37.6M
+40.0%
EPS
-$0.29
Previous year: -$0.23
+26.1%
Gross Profit Margin
67.5%
Previous year: 71%
-4.9%
Gross Profit
$35.6M
Previous year: $26.7M
+33.1%
Cash and Equivalents
$43.8M
Previous year: $31.1M
+41.1%
Total Assets
$473M
Previous year: $439M
+7.9%

OrthoPediatrics

OrthoPediatrics

OrthoPediatrics Revenue by Segment

OrthoPediatrics Revenue by Geographic Location

Forward Guidance

OrthoPediatrics anticipates continued revenue growth in 2025, targeting $235 million to $242 million in revenue, with improvements in adjusted EBITDA and cash flow.

Positive Outlook

  • 2025 revenue guidance of $235M to $242M, representing 15-18% growth.
  • Expected adjusted EBITDA between $15M and $17M in 2025.
  • Improved free cash flow expected in Q4 2025.
  • Expansion in Trauma, Deformity, and Scoliosis expected to drive growth.
  • Further integration of Boston O&P acquisition anticipated to enhance financials.

Challenges Ahead

  • Continued net losses expected in the near term.
  • Restructuring costs from facility closures may impact profitability.
  • Potential margin pressure from increased operating expenses.
  • International growth remains slower than domestic expansion.
  • Regulatory and reimbursement challenges could pose risks.

Revenue & Expenses

Visualization of income flow from segment revenue to net income