OrthoPediatrics (KIDS) Canaccord Genuity’s 45th Annual Growth Conference summary

Business overview and strategy

• Focuses exclusively on pediatric orthopedics, serving over 1.2 million children globally with 80+ unique systems.

• Addresses a $6.2 billion global market, with 95% of developed world children's hospitals as customers.

• Five strategic pillars: targeting high-volume hospitals, comprehensive product offering, robust R&D and acquisitions, clinical education, and expanding specialty bracing.

• Specialty bracing, including the Boston Scoliosis Brace, is a major growth area, with over 40 clinics and a $500 million market opportunity.

• Heavy investment in clinical education, supporting nearly all pediatric orthopedic fellowships and major societies worldwide.

Product innovation and market expansion

• Post-IPO investments have led to disruptive technologies in external fixation, fracture fixation, and scoliosis.

• Partnerships and acquisitions of small medtech firms have expanded the portfolio and global reach.

• Launching new products like VertiGlide (licensed from Medtronic) and developing ELLY, an electromechanical growing rod for early-onset scoliosis.

• Specialty bracing business is rapidly expanding, with plans to launch 4–5 new products annually.

• 7D navigation system, a radiation-free technology, is driving implant usage and share gains in hospitals.

Financial performance and outlook

• Achieved record Q2 revenue of over $61 million, with 34% growth in scoliosis and 16–17% overall growth in H1.

• 2025 revenue guidance is $237–$242 million, with adjusted EBITDA of $15–$17 million.

• Projecting free cash flow break-even in Q4 2024 and for the full year 2026.

• Ongoing set deployment of $15 million planned for 2025 to improve inventory utilization.

• Business aims to expand into six new territories in 2025, targeting several hundred million dollars in future revenue.