Paragon 28 (FNA) Canaccord Genuity 44th Annual Growth Conference summary

Market overview and company positioning

• Foot and ankle market is valued at $5 billion, growing at 7% annually, outpacing other orthopedic segments.

• Segment is highly complex and young, with high revision rates and significant room for innovation.

• Company focuses exclusively on foot and ankle, offering over 100 indications with patient-specific solutions.

• Growth rate has averaged 20% since founding in 2010, with 19.7% growth in Q2.

• Company culture emphasizes innovation, mission-driven spending, and operational discipline.

Financial performance and guidance

• Q2 delivered 19.7% growth, but full-year revenue guidance was narrowed to a midpoint of 16.5% due to market choppiness.

• Company aims to be EBITDA positive in 2025 and cash positive in 2026, with clear deliverables planned.

• Inventory management and operational efficiency are key to profitability and cash generation.

• Recent financial restatements addressed inventory valuation errors, with controls being strengthened.

Operational initiatives and restructuring

• Announced a 7% headcount reduction, targeting $8 million in annualized savings, focusing on non-customer-facing roles.

• Simplification of the operating model aims to support growth while improving efficiency.

• Operational efficiency program is intended to help achieve EBITDA and cash flow targets.