Paragon 28 (FNA) Piper Sandler 36th Annual Healthcare Conference summary

Market and business overview

• Foot and ankle market remains under-researched with high complication rates, creating opportunities for focused innovation.

• 2024 was a standout year for product launches, providing a strong tailwind despite market choppiness.

• Regional sales performance was inconsistent early in the year but finished strong in Q3.

• Abnormal seasonality and post-COVID effects still impact market predictability.

• New sales reps and product launches are expected to drive continued growth in 2025.

Financial strategy and operational efficiency

• Priorities are set to achieve EBITDA positivity in 2025 and cash positivity in 2026.

• Price renegotiations have returned supply costs to pre-COVID levels, with inventory normalization expected by early 2026.

• Restructuring reduced annualized costs by $8 million and 7% of headcount.

• Leveraged growth is planned, with top-line growth outpacing OpEx and COGS for the next two years.

• Inventory days targeted to decrease from 545 to around 400, with ongoing supply chain improvements.

Product innovation and pipeline

• Six new products launched in Q1, especially in the forefoot space, ramped up quickly.

• Smart 28 platform introduced, enabling patient-specific planning and 3D modeling for foot and ankle surgery.

• Innovative devices for syndesmotic injuries and fibular fractures have been well received.

• Short stem tibia product expands indications for total ankle procedures.

• Over 20 products remain in the development pipeline, with ongoing focus on meaningful clinical needs.