OrthoPediatrics (KIDS) Stifel 2024 Healthcare Conference summary

Stock performance and technical factors

• Recent stock weakness attributed to a fund liquidating its position, not company fundamentals.

• Business performance exceeded expectations, with strong quarterly results.

Scoliosis and product trends

• International scoliosis sales grew over 100% year-over-year in Q3.

• Scoliosis scheduling trends have normalized to pre-pandemic levels, supporting continued growth.

• Share gains from new customers are now reflected as procedure volumes return to normal.

• 7D navigation system placements are driving account conversions and market share.

• Next-generation RESPONSE system launch expected in the second half of 2025.

7D navigation and market adoption

• 7D is an intraoperative navigation solution reducing radiation exposure for pediatric spine surgery.

• About 20 units are deployed in children's hospitals, with potential for multiple units per center.

• 7D systems are typically consigned with 3–5 year contracts, selling for around $600,000 each.

• Capital sales of 7D units have lower margins but drive future implant sales and market share.