Orthopediatrics Corp Q4 FY2025 Earnings Call

Good afternoon, and welcome to OrthoPediatrics Corporation's Fourth Quarter 2025 Conference Call. As a reminder, this call is being recorded for replay purposes. I would now like to turn the call over to Trip Taylor, Investor Relations, for a few introductory comments.

Thank you for joining today's call. With me from the company are David Bailey, President and Chief Executive Officer; and Fred Hite, Chief Operating and Financial Officer. Before we begin today, let me remind you that the company's remarks include forward-looking statements within the meaning of federal securities laws, including the safe harbor provisions of the Private Securities Litigation and Reform Act of 1995. These forward-looking statements are subject to numerous risks and uncertainties, and the company's actual results may differ materially. For a discussion of risk factors, I encourage you to review the company's most recent annual report on Form 10-K, which was filed with the SEC on March 5, 2025, to be updated next week, and subsequent quarterly reports on Form 10-Q. During the call today, management will also discuss certain non-GAAP financial measures, which are supplemental measures of performance. The company believes these measures provide useful information for investors in evaluating its operations period-over-period. For each non-GAAP financial measure referenced on this call, the company has included a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures in its fourth quarter earnings release. Please note that the non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for OrthoPediatrics' financial results prepared in accordance with GAAP. In addition, the content of this conference call contains time-sensitive information that is accurate only as of the date of this live broadcast today, February 26, 2026. Except as required by law, the company undertakes no obligation to revise or update any statements to reflect events or circumstances taking place after the date of this call. With that, I would like to turn the call over to David Bailey, President and Chief Executive Officer.

Thanks, Trip. Good afternoon, everyone, and thank you for joining us today. We're proud to start this call with our typical and most meaningful performance metric. In the fourth quarter, we supported the treatment of more than 37,500 children, increasing our total impact to approximately 1.3 million kids. Historically, the medical industry has overlooked the importance of offering custom-tailored solutions to the unique needs of pediatric patients. At OrthoPediatrics, we are changing the status quo by bringing an unparalleled level of attention and innovation to the pediatric market, and we will continue to advance this goal. We closed out 2025 strong with 17% fourth quarter revenue growth, representing growth across the entire business, improved adjusted EBITDA over the prior period, and generated $10 million of fourth-quarter free cash flow, which is our first quarter of positive free cash flow in the company's history. Full-year performance for 2025 was highlighted by 15% revenue growth, nearly a 75% increase in adjusted EBITDA, and a drastic improvement in cash usage, down to $15 million from $41 million in the previous year. Our track record of execution is a strong indication that we can sustain meaningful top-line revenue growth while generating increasing profitability and delivering cash flow breakeven in 2026. We are uniquely positioned among peers of our scale with the ability to drive both top and bottom line growth. To that end, we are the clear market leader in pediatric orthopedics, and we have now demonstrated that our self-sustaining business model can grow the top line, generate positive adjusted EBITDA, and deliver positive free cash flow. We feel that the investment community is underappreciating the strength of our position, and we intend to keep exploring all options at our disposal to improve shareholder value while advancing our mission to help 1 million kids every year. I also want to emphasize today that in 2025, we commenced what we believe is the most substantial and technologically advanced series of product launches in OP history. This kicks off a multiyear super cycle of product innovation and launches that will serve as the foundation of our growth for years to come. Notable products include 3P Hip, VerteGlide, new OPSB products, Halo Gravity traction, and the EE electromechanical growing spine system, with first-in-human trials expected this year. As this expansion of our portfolio strengthens our foundation in orthopedics, over the medium term, we are looking to broaden our footprint into other pediatric subspecialties while expanding our capabilities and further leveraging our powerful global commercial channel. Considering all these factors, we are approaching 2026 on track to make excellent progress towards our goals with a few primary objectives in mind: continued market share gains across the business, further OPSB expansion, execution of our multiyear new product super cycle leading to stronger EBITDA margins, as well as dramatically improved free cash flow performance. We are reiterating our 2026 revenue guidance of $262 million to $266 million, representing annual growth of 11% to 13%, and we expect to generate approximately $25 million of adjusted EBITDA while achieving free cash flow breakeven for the full year. Turning to our T&D business. In the fourth quarter of 2025, the T&D business grew by 17%, driven by increased sales of our flagship trauma and deformity systems and continued deployment of new product sets. Highlights of the quarter included our continued full commercial launch of the first-ever pediatric tibial nail, PNP tibia, and the beta launch of the 3P pediatric plating platform hip system. Our 3P hip system has exceeded expectations in its early stages, and this system is expected to contribute materially to revenue growth with its full commercial launch expected in the first half of 2026. We were also thrilled to receive FDA approval for the 3P Small-Mini, the second system in our 3P plating family. We'll be conducting the beta launch of 3P Small-Mini in 2026 and expect to continue advancing the development on several new 3P systems that will be launched over the next three years. Overall, T&D continues to be the pacesetter for our business, and our development pipeline has never been more clinically relevant and full of promise. Looking at our specialty bracing business. OPS-B continues to be a strategic growth catalyst, supporting both our revenue growth and profitability in a meaningful way while further strengthening our customer relationships. The business continues to see success, and our clinic expansion strategy is ahead of schedule. In Q4, we expanded our footprint in Connecticut, and we expect to continue executing our successful strategy for both Greenfield and Acqui-Hire expansion. Same-store sales growth remains strong, and new product launches and sales force expansion are going very well. We also continue to remain open to opportunistic acquisitions that fit our strategic focus. On the product side, OPS-B saw a flurry of new launches in 2025, including expanding indications for the DF2 brace that has exploded in popularity and is changing the gold standard for treatment in pediatric femur fractures in young children. Additionally, we beta-launched a trio of bracing products for the treatment of hip deformities that are in the process of moving to full commercial release in 2026. Within OPSB, we are now fully on track to meet or exceed our annual goal of 4 to 5 new product launches every year for the foreseeable future. We will launch two products aimed to be used in synergy with OP implant systems to treat the entire continuum of care for kids. These are the Halo Gravity traction system in partnership with the SynTec Group and the OPSB knee and ankle traction braces meant for treating contractors following surgery. Ultimately, we could not be more pleased with the OPSB performance and its strategic impact. In scoliosis, we experienced 13% growth in Q4 2025, and we were particularly pleased with our EOS product launches. Throughout 2025, we continued our push into the EOS space with the full launch of RESPONSE Ribbon pelvic and the beta launch of the much-awaited VerteGlide system, providing a promising new treatment option for young scoliosis patients. Notably, in the second half of 2025, we completed the first surgical cases with the VerteGlide system, making an introduction of this technology into clinical use. I think it's important to recognize the impact technology like VerteGlide can have on a young person's life. We recently received feedback from a surgeon on his first VerteGlide postoperative visit with a patient. The smiles on the patients' and their families' faces told him everything he needed to know without saying a word, and they shared a deeply moving moment. The patient's motor functions were improved, and that level of neurologic improvement is highly uncommon in this respective patient population. This technology is literally transforming patients' lives. We are seeing solid early usage of the new VerteGlide system in its limited release and plan to move to full market release in the coming months. We are proud of our successful launches in 2025, and they further bolster our belief that our EOS strategy is working. In addition to the full launch of VerteGlide, we're nearing completion of our third and most complex EOS product, eLLi. As a reminder, eLLi is a next-generation smart electromechanical lengthening spine implant designed to deliver consistent and reliable power through RF power transmission. We expect the first implantations of the eLLi device in late 2026. Beyond declaring victory on the most technologically advanced and comprehensive EOS portfolio in pediatric spine surgery, we also expect to complete development and beta launch our next-generation Scoliosis fusion system in the second half of 2026 in conjunction with a suite of unique predictive preoperative planning software. Moving to our international business, OUS growth rebounded with a strong fourth quarter, highlighted by solid demand in our direct markets in the EU and Australia. Surgeon usage was high across the portfolio, and we saw a strong rebound in LASA from replenishment orders. EMEA and APAC revenue was very solid, which largely comes through our sales agencies and is a good reflection of high surgeon usage and higher-margin replenishment revenue. From a strategic standpoint, we made structural improvements in Brazil through the purchase of one of our Brazilian distributors, Follow Med, in late November. We believe over the next several quarters, this acquisition will enable us to improve our cash collection and, over time, normalize ordering patterns to drive additional growth and market penetration in the region. We are also very excited about the EU MDR approvals for several T&D and scoliosis products, as well as a recent approval for our X6 devices. Efforts are now underway to provide our EU markets with products they have long been waiting for, and we expect this to have a positive impact on EU growth in 2026. Lastly, we'd like to underscore two developments outside of our traditional segments. It's very early, and revenue is small, but we are building on the success of our 7D experience and are kicking off the launch of our comprehensive digital surgical platform, Playbook. It is designed to support teams across the full continuum of care from preoperative planning through intraoperative execution and post-procedural performance analysis, and we expect deployment to beta launch sites in 2026. Additionally, as announced following the FDA approval of key pediatric indications during Q4 2025, we have placed our first iotaMotion unit at Cincinnati Children's Hospital. Under our exclusive partnership with iotaMotion, we are moving towards the full commercial launch of OP's first non-orthopedic technology. This milestone allows us to leverage our existing capabilities and to bring the same discipline, focus, and pediatric-first expertise beyond orthopedics, and we are excited to advance this innovative technology. With that, I'd like to turn the call over to Fred to provide more detail on our financial results.

Thanks, Dave. Taking a closer look at the P&L, our fourth quarter of 2025 worldwide revenue of $61.6 million increased 17% compared to the fourth quarter of 2024. The increase in revenue in the quarter was primarily driven by strong performance across trauma and deformity, scoliosis, and OPSB. U.S. revenue was $48.6 million, a 13% increase from the fourth quarter of 2024, representing 79% of total revenue. Growth in the quarter was primarily driven by trauma and deformity, scoliosis, and OPSB. We generated total international revenue of $13.0 million, representing growth of 33% compared to the fourth quarter of 2024, representing 21% of our total revenue. In the fourth quarter of 2025, Trauma and Deformity global revenue of $42.6 million increased 17% compared to the prior year period. Growth was primarily driven by strong growth across numerous product lines, specifically our Pega products, ExFix, PNP tibia, and OPSB. In the fourth quarter of 2025, scoliosis global revenue of $17.6 million increased 13% compared to our prior year period. Growth was primarily driven by increased international implant growth as well as OPSB. Finally, Sports Medicine's other revenue in the fourth quarter of 2025 was $1.4 million, including Iota Motion robotics sales, as compared to $0.6 million in the prior year period. Touching briefly on a few key metrics, for the fourth quarter of 2025, gross profit margin was 73% compared to 68% for the fourth quarter of 2024. Total operating expenses increased $3.7 million or 7% compared to the prior year period to $53.3 million in the fourth quarter of 2025. Sales and marketing expenses increased $1.6 million or 10% compared to the prior year period to $18.4 million in the fourth quarter of 2025. General and administrative expenses increased $5.5 million or 23% year-over-year to $30.0 million in the fourth quarter of 2025. The increase was primarily driven by the addition of personnel and resources to support the continued expansion of the OPSB business and increases in non-cash items such as stock compensation, depreciation, and amortization. Trademark impairment increased $0.6 million for the prior year period to $2.4 million, and we recorded a restructuring charge of $0.3 million as a result of our prior cost rationalization efforts, as compared to $3.7 million in the fourth quarter of 2024. Research and development expenses decreased $0.7 million in the fourth quarter of 2025 due to timing of third-party related services to product development. GAAP net loss per share for the period was $0.43 per basic and diluted share compared to $0.69 per basic and diluted share for the same period last year. Non-GAAP net loss per share for the period was $0.30 per basic and diluted share compared to $0.29 per basic and diluted share for the same period last year. Adjusted EBITDA was $4.8 million for the fourth quarter of 2025, a 59% improvement when compared to $3.0 million for the fourth quarter of 2024. We ended the fourth quarter with $62.9 million in cash, short-term investments, and restricted cash. Set deployment was $4.5 million in the fourth quarter of 2025 compared to $3.7 million in the fourth quarter of 2024. As Dave mentioned, we are very excited to have generated $10 million of free cash flow in the fourth quarter of 2025, contributing to a dramatic improvement in our total year free cash usage of $15 million for 2025 as compared to $41 million in 2024, a $26 million improvement or 63%. Turning to guidance. As Dave mentioned, we reiterated our expectation for full-year 2026 revenue to be in the range of $262 million to $266 million, representing year-over-year growth of 11% to 13%. We also continue to expect to generate approximately $25 million of adjusted EBITDA, deploy approximately $10 million in sets, and to achieve free cash flow breakeven in 2026. We would expect the EBITDA and free cash flow to exhibit similar quarterly seasonality patterns as in 2025. It is important to note some periods will be negative and others positive, but still cumulatively tracking to an annual guidance metric.

Let's open the call for Q&A.

Maybe just for starters, the Scoliosis number in the quarter was quite strong. Can you just maybe talk a little bit about what you're seeing there? I know it's a category that is significant, but there's, I think, a little bit more competitive pressure coming from at least one spine company. So just maybe talk about what you're seeing there and then the outlook for that franchise going forward? And then I do have a follow-up.

That continues to take share. And then just early returns, as we indicated with the VerteGlide system and now that we've got the ribbon pelvic, VerteGlide out and working on eLLi, I think the EOS portfolio is really driving surgeons who may have not used our product in the past, at least on the scoliosis side, to take us quite seriously. A lot of our first procedures with VerteGlide are in accounts where we didn't have cases, or we didn't have a fusion business otherwise. So that's very encouraging as we look at 2026 and beyond. Last thing I would say is due to the EU MDR approval, we now will have the full product portfolio minus VerteGlide approved in Europe, and we're seeing really strong returns already with just the 5560 response system, but now when you add the rest of the portfolio, that business is growing really rapidly. Obviously, you see that in the international number as well. So very pleased, and I think we continue to expect more of the same. And we've got a very robust pipeline of very unique products coming out over the next 18 months. So pretty exciting.

And then, Fred, just the margin progression in the quarter was really strong, gross margin and operating margin. I know you were talking about it recently or just in the last few minutes here, but just the outlook for those metrics going forward, I mean, are we in kind of a new era for OP in terms of how we should think about the scaling of the business and the profitability of the business, which is obviously very important right now.

Yes, absolutely. So very pleased with the drop-through in the fourth quarter. Revenue increased nicely, but it also dropped through nicely to the bottom line of the business. Strong gross margin at 73%. As we've talked about in the past, we would expect a full year of 2026 to be in a similar 73% range of gross margin and then the adjusted EBITDA going from $15 million in 2025 up to the $25 million in 2026. And that will come from leverage on the sales and marketing side of the business because OPSB is growing faster than the overall business, and they have a lower percentage of sales on sales and marketing. And then the rest of the leverage will continue to come from the cash portion of G&A, which is where a lot of it came from in 2025.

Our next question comes from Rick Ross from Stifel.

Dave, I can't resist. I'm new to the story. So maybe this is a comment you've made in the past, but I did pick up on you saying 'exploring all options to increase shareholder value.' Just anything worth expanding on what we should take from that comment? And then I've got one follow-up.

Yes. I think we have intimated to this group for a long time that we believe that the infrastructure that we have built here at OP, particularly the commercial footprint that we have, is really the most powerful commercial footprint into children's hospitals and will benefit us down the road. I think we continue to be interested in expanding that footprint and leveraging particularly the commercial channel to get into other pediatric subspecialties. Many of those subspecialties are less capital-intensive than the orthopedic space. While I think we have big several years ahead of us in terms of continuing to grow share, particularly with the new products that we have coming down the pipe, you could expect us to continue to be quite interested in expanding our total addressable market through opportunities in other subspecialties and continuing to grow our footprint in the pediatric healthcare market overall.

And then, Fred, just you gave us some cadence guidance on EBITDA. Can you help us similarly on the top line? Is 2025 a good proxy for how we should see the revenue flow this year?

Yes, it's a great question. And the answer is yes. So 2025 is a good proxy for both revenue across the quarters and for EBITDA as well as free cash flow. To remind you, revenue is always the smallest in the first quarter. That will be true again here in 2026. The third quarter is always the strongest as many kids are out of school, and the revenue then drives the following adjusted EBITDA as well as the cash flow. We try to get as much of our set deployment out in the first half of the year. So first and second quarter will be negative free cash flow and then positive free cash flow in the second half to get the entire year to breakeven, which is about a $15 million improvement over 2025.

Our next question comes from Caitlin Roberts from Canaccord Genuity.

Just starting on 7D, just updates on the placements in the quarter, and any updates to the strategy as well there?

I would say it was a fairly normal quarter, not extraordinary growth. We did get some unit placements, which was good. But I think we have at least experienced continued slow movement in terms of our customers' willingness to, certainly, everybody is interested in trying and wants to get units in, but paperwork processing has been a little slower than we would like. I think the funnel is very large. We've got a lot of demos going on now, and we're optimistic that 2026 will be good for 7D. We're really excited about the performance in places where we already have 7D that we placed throughout 2024 and 2025. We see really strong performance with our implant business. That's what's helping drive the Response fusion growth that we're seeing. Again, I think we've not forecasted in the model or in the guide a big jump in 7D, but we certainly expect to place numerous 7Ds in 2026.

And exciting updates with Playbook and iotaMotion. Just anything built into the guidance in '26 for those launches and then the cadence of those launches as well?

Yes. I would say extremely small at this stage in terms of the guidance. We obviously just sold our first unit within days of the FDA approval here in the fourth quarter to Cincinnati Children's. That said, there's a lot of interest, a lot of demand in that. I think this product line has been used on the adult side fairly frequently. We're seeing a lot of inbound interest in that, but we don't have a lot of that or the Playbook technology baked into the guide at this stage.

Our next question comes from Benjamin from Lake Street Capital Markets.

For me, it's been quite a few months now since the last Investor Day. Can you maybe talk a little bit more about Playbook, how that fits in, how things are done at most hospitals today, kind of what holes it fills, just where Playbook fits into the overall mix?

Yes, absolutely. Good question. Playbook is, I would say, the first foray of ours into the digital health space. It's probably not an enabling technology, and then it's not a navigation platform or anything like that. But Playbook ultimately helps hospitals and surgeons through custom workflows to streamline surgical procedures and capture data about each one of those steps, providing the hospital with metrics on how those steps can be sped up and improved. So Playbook is focused on improving the quality of surgery in the pediatric patient population, not that dissimilar to what you might see a lot of the bigger adult hospitals are obviously trying to maximize efficiency with common procedures like total joint reconstruction and adult spine. I think there's enough variation in the techniques and use cases for a lot of our products that you see notable differences in performance between hospitals. We're trying to drive gold standard processes in pediatric orthopedics and help our customers ultimately capture best practices. I think that is valuable for patient care without question. We think it's valuable for hospitals to improve their efficiency, which makes them more profitable. The data capture here is going to be very unique for pediatric orthopedics because there's no existing data. We're generating and capturing data that has never been collected before in this smaller segment of the orthopedic market. So we've received a lot of interest in the product line already. It's very early days, but we hope to have a few systems beta-launched in several accounts fairly shortly. Not a lot of revenue is baked into this, but once we get going, it could be really special for the business, and I think invaluable for our surgeons and the patient population.

So in other words, there isn't something that you're necessarily displacing. There isn't some software that's typically for adults or anything like that, that hospitals are using.

This is first of its kind and new to children's hospitals for sure.

And then just on the subspecialties that you're looking to expand into, are there any notable ones that are more attractive or less attractive than others?

Yes. We've been very successful in expanding from purely implants in the operating room to the kind of near adjacency on the OPSB side. We're going to obviously continue to scale in that space. But I think the partnership with iotaMotion is a good example of how we are commercially present in high-profile children's hospitals like Cincinnati Children's, and we're being approached by a number of these companies, often fairly small, with very credible but interesting technologies that struggle to access these hospitals and aren't currently present commercially in these facilities. The iotaMotion partnership is a good test for this; we are not in the ENT space or selling cochlear implants at this stage, but we are certainly now beginning to explore the ENT space, which I think presents a rational opportunity for us in the future. We also like many technologies in the cardiovascular space, and I believe there's an opportunity to ultimately grow a business in that space that could mirror the market dominance that we have in pediatric orthopedics. Each subspecialty in pediatric healthcare has a similar volume of unmet needs that we observed when we started OrthoPediatrics nearly 20 years ago. In those verticals, orthopedics is capital-intensive. It has taken a significant amount of time, energy, and capital to achieve the dominant market share we have in hospitals now. We must leverage our commercial position as well as our internal infrastructure to support these entrepreneurs with credible technologies in subspecialties that have more favorable economic dynamics, particularly concerning cash flow and cash usage.

Our next question comes from Mike Matson from Needham & Company.

I want to ask about R&D. I've noticed that while it decreased in the fourth quarter as a percentage of sales, you've indicated some timing factors. However, looking back over the entire year of 2025, it dropped significantly both in percentage and actual dollar amounts. It's encouraging to see you're gaining some leverage, but how can we ensure that this isn't affecting the pipeline or anything similar? It appears you're launching a lot of products, which suggests things are on track, but I'm curious about this aspect.

Yes, that's a great question. Fred and I have tasked the team with addressing this internally. Our product development process is highly efficient, and we are working on multiple initiatives at the same time. There are notable variations in spending throughout the year that depend on specific timings, such as when test parts arrive and need evaluation. These variations can influence our reporting. We might experience significant changes in spending over the next 12 months, particularly with product lines like EE and our next-generation spine products, as we have completed some internal work and are getting ready to begin manufacturing and conducting more internal tests or FDA testing, which will likely increase our R&D expenses. Much of this spending did not occur, especially in the latter part of 2025. However, having been here nearly 20 years, I can confidently say we've never had a more credible or clinically promising R&D pipeline than we do now. The early feedback from patients and physicians about VerteGlide and the responses we've received regarding the 3P HI are very positive. We expect to see several significant technologies emerge over the next 18 months, with developments continuing over the next three years. I'm very satisfied with the current state of our pipeline; this marks the beginning of what we anticipate will be a product super cycle. I believe you'll notice increased spending on the R&D side in various quarters, depending on timing.

And then I just want to ask one about, I guess, more specifically, on eLLi. So you said first in human, I think, later this year, I believe. But what about a pivotal trial? Or what's the regulatory process there to get that into the market in the U.S.?

Yes. You can imagine we've been back and forth with FDA on this topic, similar to the engaging conversation we had with FDA on VerteGlide, and I think we’ve come to a conclusion that benefits patients. We're at a point where we're able to start generating some revenue and collecting data with VerteGlide this year when it's ready. While this doesn't form a major part of our revenue guidance, we would expect follow-up approval based on relatively short- to medium-term data. I don't know if you want to classify this as pivotal, as this was one of our devices that had the pediatric exemption with FDA. We're in a good spot for full approval, but it will require some time, and we are set to begin generating that data in the back half of this year.

Our next question comes from Ravi Misra from Truist Securities.

I have three questions. First, how should we consider the effects of pricing and margins with the upcoming product super cycle anticipated in 2026? Second, you've discussed your MDR strategy and the 4.5 5.0 approval several times recently. How does this enable you to enhance your presence in the OUS market? Finally, regarding your recent comments on cardiovascular, if you expand into these adjacent markets, what changes in margin profile should we expect, particularly in terms of leveraging your EBITDA and enhancing profitability as you move into non-orthopedic areas?

So on the pricing side, as you would expect, these new technologies are definitely demanding a higher premium compared to anything else in the portfolio. So the gross margins are very attractive. I would say it’s small today in overall revenue when comparing it to the entire business. However, over the next several years, it will positively impact profitability. We're seeing that in our early days with new technologies – even if they represent just a small share of overall revenue currently. The EU MDR is a great question. It's remarkable to see we're able to sell any products in Europe when you can only offer one of the sizes. The 5560 has been sold and is being sold historically in Europe. We now have the 4550 that is approved as of last fall, and we have sets in Europe, with cases being conducted here in January and February. It’s difficult to convert a surgeon when you're only offering one size of our products. Now we can present the full range of sizes they need to convert entirely over to our portfolio, which significantly enhances our conversations with prospective surgeons. We are very pleased to have that approval and look forward to ramping up cases and sales in Europe over the next several years. Regarding the cardiovascular side, the gross margin profile of that segment is certainly higher than our implant business. Domestically, we attain about 85% gross margin on our domestic implant business, while overall our average is about 73%, partly due to selling half our sales OUS to stocking distributors where we pay no commission. This results in a lower gross margin rate, as expected. The cumulative average of 73% for the business is supplemented by the superior gross margin of the cardio business, which we are only beginning to explore.

I am showing no further questions at this time. I would now like to turn it back over to David Bailey for closing remarks.

Well, thank you all for joining us today on the call. We look forward to updating you throughout the course of 2026. I think it will prove to be a very exciting year for OrthoPediatrics and our mission to help 1 million kids a year. So, thanks for your time and your interest in our story, and we'll talk to you soon. Thank you.

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.