BUSINESS SEGMENT
Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. We have one operating and reportable segment, OrthoPediatrics, which designs, develops and markets anatomically appropriate specialized braces, implants and devices for children with orthopedic problems. Our chief operating decision-maker, our Chief Executive Officer, reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance, accompanied by disaggregated revenue information by product category. The Chief Executive Officer is regularly provided with consolidated expenses consistent with those presented in the consolidated statements of operations. We do not assess the performance of our individual product categories on measures of profit or loss, or other asset-based metrics. Therefore, the information below is presented only for revenue by category and geography.
Product sales attributed to a country or region includes product sales to hospitals, physicians and distributors and is based on the final destination where the products are sold. No individual customer accounted for more than 10% of total product sales for any of the periods presented. No customer accounted for more than 10% of consolidated accounts receivable as of December 31, 2025 or 2024.
Disaggregated revenue - product sales by source were as follows: | | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| Product sales by geographic location: | 2025 | | 2024 | | 2023 |
| U.S. | $ | 186,403 | | | $ | 161,163 | | | $ | 111,010 | |
| International | 49,945 | | | 43,564 | | | 37,722 | |
| Total | $ | 236,348 | | | $ | 204,727 | | | $ | 148,732 | |
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| Year Ended December 31, |
| Product sales by category: | 2025 | | 2024 | | 2023 |
| Trauma and deformity | $ | 166,301 | | | $ | 145,126 | | | $ | 106,781 | |
| Scoliosis | 66,047 | | | 55,153 | | | 37,933 | |
| Sports medicine/other | 4,000 | | | 4,448 | | | 4,018 | |
| Total | $ | 236,348 | | | $ | 204,727 | | | $ | 148,732 | |
No individual country with sales originating outside of the United States accounted for more than 10% of consolidated revenue for the years ended December 31, 2025, 2024 and 2023.
No individual country outside of the United States held long-lived assets in excess of 10% of consolidated long-lived assets as of December 31, 2025, 2024 or 2023.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.