Total Revenue (Business Segments)

17% increase (from $44.69M to $52.41M)

Organic revenue growth drove the increase, with higher unit volumes across key product lines building on previous period momentum; the overall performance improvement in Q1 2025 reflects successful market execution compared to Q1 2024. " " "

United States Revenue

19% increase (from $34.305M to $40.9M)

Strong U.S. market performance—boosted by the addition of Boston O&P sales and robust unit growth—continued to propel revenue upward, improving on last year’s base and leveraging prior period strengths. " " " " "

International Revenue

11% increase (from $10.38M to $11.5M)

Incremental international gains are driven by increased procedure volumes and limited set sales, reflecting a modest but steady improvement over the previous period despite slower growth compared to the U.S. segment. " " " " "

Trauma and Deformity

14% increase (from $33.30M to $37.87M)

Steady performance in key product lines resulted in a 14% growth, as sustained unit volume increases and continued market penetration built on the positive trends seen in Q1 2024. " " "

Scoliosis Revenue

35% increase (from $10.20M to $13.66M)

Significant acceleration in scoliosis sales—driven by increased sales of the RESPONSE 5.5/6.0 and ApiFix systems, boosted by new product launches and enhanced adoption of 7D technology—amplified momentum from the previous period. " " "

Sports Medicine/Other

25% decrease (from $1.18M to $0.88M)

A marked decline in unit volumes led to a 25% drop in revenues, indicating potential market challenges or a shift in focus compared to the higher performance seen in the preceding period. " " "

Gross Profit

19% increase (to $38,262K)

Increased revenue translated into higher gross profit, although margins remained around 73%, suggesting that while volume gains were strong, pricing pressures or cost changes from the previous period continued to moderate profitability. " "

Operating Loss

13% widening (from $(9,723)K to $(10,981)K)

Rising operating expenses—notably in sales & marketing and general & administrative costs—outpaced revenue gains, thus deepening the operating loss compared to Q1 2024 despite overall top-line improvements. " "

Net Loss

37% increase (from $(7,805)K to $(10,659)K)

Net loss expanded considerably as higher operating expenses combined with unfavorable shifts in tax and interest factors outweighed revenue gains; this deterioration reflects intensified cost pressures relative to the previous period. " "

Revenue

FY 2025

"$235 million to $242 million, representing 15% to 18% growth " " "

no guidance

no current guidance

Gross Margins

FY 2025

"72% to 73% " "

no guidance

no current guidance

Adjusted EBITDA

FY 2025

"$15 million to $17 million " " "

no guidance

no current guidance

Set Deployments

FY 2025

"Approximately $15 million of new sets " " "

no guidance

no current guidance

Free Cash Flow

FY 2025

"First quarter of positive free cash flow anticipated in Q4 2025 " " "

no guidance

no current guidance

Tariffs and Government Changes

FY 2025

"Assumes no impact from tariffs or other government changes with minimal effect " "

no guidance

no current guidance

OPSB Business Growth and Strategic Expansion

In Q4 2024, Q3 2024, and Q2 2024, OPSB was consistently highlighted for aggressive territory expansion, product innovation, clinic integration, and international planning. " " " "

Q1 2025 continued to emphasize expansion with a new territory in North Carolina, launching two distributed product lines, accelerating R&D, and early international discussions. " " "

Consistent optimism with an increasing pipeline and more robust clinical integration

7D Technology Adoption and Scoliosis Market Impact

Q4 2024 featured 7D as a key driver for accelerating the RESPONSE Fusion and scoliosis revenue. " In Q3 2024, positive surgeon feedback and multiple 7D placements were noted " " , and Q2 2024 mentioned an expanding pipeline and innovation in radiation-free navigation. "

Q1 2025 maintained focus on 7D technology’s role in market penetration, noting that unit placements are fueling incremental revenue and supporting new product developments like VerteGlide and eLLi. " "

Consistently positive with continued innovation and integration enhancing market penetration

Revenue Execution and Financial Performance Improvement

Q4 2024 and Q3 2024 discussed record revenues, robust U.S. performance, increasing EBITDA, and strong segment contributions. " " " Q2 2024 underscored record revenues and projections for improved profitability. "

Q1 2025 reported a 17% increase in global revenue and robust U.S. growth with improved adjusted EBITDA and free cash flow progress. " " "

Steady and robust performance with ongoing revenue growth and improved profitability

Product Innovation and FDA Approvals

Q4 2024 and Q3 2024 highlighted ongoing innovations such as DF2, PNP Tibia, and progress on FDA pathways for products like Verteglide and eLLi, along with EU MDR milestones. " " In Q2 2024, focus was on breakthrough systems like the next-generation Fusion system and eLLi Growing Rod. " "

In Q1 2025, several FDA approvals were secured (3P Pediatric Plating Hip System, VerteGlide, sterile devices) and new distributed product lines were launched to complement the OPSB portfolio. " " "

Consistently focused on innovation with an expanding and accelerating product portfolio and FDA activity

Capital Expenditure Management and Investment Risks

No disclosure was provided in Q2-Q4 2024 regarding this topic.

Q1 2025 did not discuss this topic.

No discussion across periods

Medicaid Policy and Regulatory Uncertainty

In Q4 2024, an executive addressed Medicaid policy with cautious optimism, while Q3 2024 noted headwinds from slow state redeterminations; Q2 2024 did not mention Medicaid concerns. " "

Q1 2025 mentioned that state Medicaid redeterminations are progressing variably, creating uncertainty in membership trends, though support for affected members is emphasized. "

Inconsistent coverage; underlying risk persists with mixed sentiment from cautious optimism to headwinds

International Market Challenges and Domestic Trauma Performance

Q4 2024 highlighted slower international sales (particularly due to LatAm pressures) alongside extremely strong domestic trauma performance. " " Q3 2024 mentioned external challenges like hurricanes and regulatory delays, while Q2 2024 noted soft international revenue but robust domestic growth. " " "

Q1 2025 continued to show strong domestic trauma results (19% U.S. revenue increase) while noting that international growth is partly offset by pressures in Latin America and set sales challenges. " " "

Domestic performance remains robust; international markets face ongoing regulatory and economic headwinds

Gross Margin Pressure and Expense Management

Q2 2024 reported improved gross margins (77%) with rising expenses; Q3 2024 saw margin pressure from product mix shifts and increased operating costs; Q4 2024 pointed to a decline in Q4 margins due to reclassification and cost increases, though EBITDA improved. " " "

In Q1 2025, gross margin saw a slight lift (73% vs. 72% prior year) but with increased operating expenses due to expansion initiatives, particularly in sales, general administration, and OPSB clinic investments. " "

Fluctuating margins with an ongoing need to balance product mix and operating expenses while targeting efficiency improvements

Impact of Seasonal Factors (Flu/RSV) on Surgical Volume

Q2 2024 was cautious, projecting seasonal impacts on surgical volumes. Q3 2024 described a normalized surgical environment with manageable seasonal virus impacts, and Q4 2024 noted a typical Q1 step-down relative to Q4 due to flu/RSV. " " "

Q1 2025 did not mention seasonal factors, suggesting either normalization or less strategic emphasis at this time.

Previously a consistent seasonal concern, now less emphasized in Q1 2025

Clinic Expansion and Integration Initiatives

Q2 2024 detailed extensive integration initiatives, including OPSB consolidation and the Boston O&P acquisition supporting expansion; Q4 2024 described successful greenfield and aquihire initiatives to boost clinic capacity. " " " Q3 2024 did not address this topic.

Q1 2025 described robust clinic expansion with a new territory in North Carolina, increased throughput in existing clinics, and early discussions on international expansion, reinforcing the integration of the surgical sales force with clinic operations. " "

Consistent and accelerating focus on clinic expansion and integration, with further international considerations being explored