OrthoPediatrics Corp. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, which specializes in orthopedic solutions for children, achieved net revenue of $54.6 million for the third quarter, marking a 37% increase from $40.0 million in the same period of 2023. For the nine months ended September 30, 2024, revenue reached $152.1 million, also up 37% from $111.1 million year-over-year. This growth was primarily driven by increased sales in trauma and deformity products, which rose to $37.6 million in Q3 2024 from $28.8 million in Q3 2023.
Despite the revenue growth, OrthoPediatrics reported a net loss of $7.9 million for the third quarter, compared to a loss of $4.6 million in the prior year, reflecting a 72% increase in losses. For the nine-month period, the net loss was $21.8 million, up from $14.3 million in 2023, indicating a 52% increase in losses. The company's gross margin for the quarter was 73%, slightly down from 76.1% in the previous year.
Operating expenses also rose significantly, with total operating expenses for Q3 2024 amounting to $45.6 million, up from $35.5 million in Q3 2023. General and administrative expenses surged by 46% to $26.3 million, driven by increased personnel costs and stock-based compensation related to the acquisition of Boston Brace International, Inc. earlier in January 2024.
The company’s balance sheet showed total assets of $489.3 million as of September 30, 2024, up from $438.7 million at the end of 2023. Cash and cash equivalents increased to $51.0 million from $31.1 million, while total liabilities rose significantly to $118.4 million, primarily due to the assumption of debt related to the Boston O&P acquisition.
In terms of strategic developments, OrthoPediatrics completed the acquisition of Boston Brace International for $21.5 million in cash, which included the integration of approximately 170 employees. The company also entered into a new credit agreement, securing a $50 million term loan and $50 million in convertible notes to support its operations and growth initiatives.
Overall, while OrthoPediatrics experienced robust revenue growth, it faced challenges in profitability and increased operational costs, reflecting the complexities of integrating recent acquisitions and expanding its market presence.
About ORTHOPEDIATRICS CORP
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