Kuros Biosciences AG ($KURN)

Welcome to the Kuros Biosciences Full Year 2025 Financial Report. I will now hand over to Alex Muller from Investor Relations. Please go ahead.

Thank you, operator, and good afternoon or good morning, ladies and gentlemen. I welcome you to our presentation of Kuros full year results 2025. My name is Alex Muller, and I'm responsible for Investor Relations, and I'm joined today by Chris Fair, our CEO; and Daniel Geiger, our CFO, who will present the full year results. [Operator Instructions] I would also like to remind you that the slides from today's presentation as well as our press release and annual report are all available on our website. And with that, I would like to hand over to you, Chris.

Thank you very much. Good morning, good afternoon, and welcome to the 2025 year-end results of Kuros Biosciences, and a look forward to 2026 and beyond. As stated, I'm Chris Fair, CEO of Kuros, and I'm joined by Daniel Geiger, Chief Financial Officer. Before we get started with the review of the results, I'd like to say thank you to the many, many people that make this possible. First, to my teammates across the globe, who continuously put forth great effort and care that has allowed this company to achieve such great success. Secondly, to the surgeons and health care providers who have put their trust in our products so that their patients can begin their healing journey; and to the investment community and our Board of Directors, who entrusted myself and our management team to execute the plan before us, I thank you. So with that, let's review the results. We are pleased to report that Kuros once again has overachieved guidance on revenue and provided a first-time profitability for the group organization, growing the business over 72% from year prior to $146.1 million in revenue and a $19.6 million adjusted EBITDA, resulting in a first-time net profit of $2.6 million. Kuros certainly has continued our trend of growth in the top line revenue, but we have also executed in an operationally and financially responsible manner. We have $19.8 million in cash. We are debt-free, and we have a strong operating cash flow. Our strategy to become a global and trusted leader in orthobiologics starts with having the right technology backed by clinical evidence. It also has a robust execution on the commercial channel and continuous improvement of our operations. When looking at 2025, I am happy to report we executed flawlessly in each of these areas. We've launched new products such as the MIS Delivery System, which immediately expanded our customer base and a growing platform of revenue. We continue to expand out our commercial footprint across the globe and even at the end of the year with multiple health system approvals in the U.S. as well as being granted MDR approval in the EU. Neither of those are easy accomplishments. We expanded our sales efforts into the foot and ankle segment, which resulted in our launching and enrolling patients into the ASTRA trial. We continue to lead the way in the marketplace in clinical evidence, presenting data and engaging the surgeon community on numerous events. In an industry first, we published human biopsy data that reinforces our clinical differentiation of MagnetOs. Just as important, we continued our investment in scaling the operation. Initiating the building of our facility in the U.S. as well as improvements to existing infrastructure, with such explosive growth, activities ranging from the launch of the ERP to multiple operational initiatives, our company did not experience a single back order. When looking at how we're building Kuros in the markets we serve, this $5.5 billion marketplace will continue to grow to over $8.2 billion by 2032. We're well positioned to capture market share. Markets like oncology, where we expect publications later this year; markets like trauma, where we intend to expand commercial efforts as well as initiate clinical studies. We are positioned to win and be the global leader in orthobiologics. When we dive into some of the commercial statistics, it's clear we're executing on all fronts. We're adding sales agents. We're adding hospital accounts. We're adding surgeon customers. We doubled the percentage of spine surgeons who utilize MagnetOs in their practice from 7% to 14% in just 1 year. We've expanded access to our channel with new nationwide hospital approvals. And the recent MDR approval will help pave the way for our commercial efforts in Europe for the years to come. Through the expanded adoption of our technology and our increased number of partnerships, we have absolutely strengthened our commercial foundation for the future. At the core of our success is our continued investment into clinical evidence. Our 3 Level 1 trials that are highlighted here, ASTRA, PROOF and PRECISE; are all actively enrolling patients. Now we invest in these studies not for regulatory approval, rather for supporting clinical proof and to provide comfort to our surgeon customers that the products that they have chosen to treat their patients with are backed by human clinical evidence, not solely animal data or marketing materials. And as we look to the future, it is our organic pipeline fueled by our attention to the voice of customer that will drive innovation and top line growth. The launch of the MagnetOS MIS platform is a result of listening to our customers and our partners so that we can provide a best-in-class delivery system that helps to make surgeries become more efficient with a best-in-class biomaterial. Our R&D hub in the Netherlands is pretty busy. Coupled with our expanding manufacturing center in the U.S., we will see new products that will access new markets and expand the total overall available market beyond what we serve today. We have continued our investments into the infrastructure of Kuros, and Daniel will go through this in detail. But we have kept up with the commercial successes, and we continue to ensure we cannot just supply but also improve on our operational platforms. Our regulatory and quality teams have had numerous successes in 2025, culminating with the MDR approval, again, as a great competitive advantage in the EU. In addition, our U.S. facility expansion is on track for producing products in the second half of 2026. While we do this, we optimize and expand the innovation hub in the Netherlands. This dual source manufacturing derisks the overall business as well as provides financial advantages by providing products closer to the markets they serve. It also increases the capacity for growth, not just for MagnetOS, but to other future product platforms we will develop. So with that, I will turn it over to Daniel. Daniel?

Thank you, Chris. Let me start with Slide 11. What this slide shows very clearly is that the revenue scale is now translating into operating leverage. We continue to grow strongly, and 2025 delivered the largest absolute revenue increase so far. At the same time, fixed costs have grown significantly slower than revenue. This is an important inflection point. It tells us that the investments we made in systems, organization and infrastructure since 2023 are working and creating the respective profitability. The key message here is simple. We are not just growing the top line, the economics of the business are improving as we scale. On Slide 12, I want to focus on two aspects: gross margin protection and commercial efficiency. Despite strong growth and external factors such as U.S. tariffs, we maintained solid gross margins in 2025. This reflects deliberate inventory planning and disciplined supply chain management. Overall, we therefore only incurred around USD 2 million of tariffs. At the same time, sales and marketing expenses as a percentage of revenue are trending down. Please consider that these numbers include share-based payment charges. If you look at the cash impact only, the trend is even more improving. This shows that our commercial model is scaling efficiently. So the key takeaway from this slide is that growth is disciplined and sustainable and margin protection remains a clear priority of Kuros. We continue to invest into R&D to support innovation and clinical evidence, which is essential for the differentiation of MagnetOs and Kuros overall, and specifically clinical data is a core USP. Importantly, while absolute spending has increased, both R&D and G&A are declining as a percentage of revenue. However, given we are a scientific-based company, we will continue to invest into clinical data such as the ASTRA study along the building blocks we have always given to the market in the range of 7% to 9%. With regards to G&A, our improved cost ratio reflects improved efficiency, digitalization and organizational maturity. From a CFO perspective, that's exactly what I want to see, investment for future growth combined with scalable cost base. Slide 14 marks a key milestone of the company. In 2025, we achieved an adjusted EBITDA margin of 13.4% and delivered a first-time net profit ever. This improvement is driven by operating leverage, not by one-off effects. So this is clearly sustainable. Revenue growth is now outpacing the fixed cost base in a meaningful way. It's important to understand that by switching the reporting currency from Swiss francs to U.S. dollar, the company is now economically protected for any FX movement against the U.S. dollar. Any translation impact, which is the major contributor of the financial result, will be offset by currency translation adjustments in OCI so that equity is restored. Furthermore, on the tax side, we were able to implement Switzerland as a wholesaler and therefore, see now the first benefits coming through mainly on the tariff side. But we also expect to have in 2026, some benefits coming out of Switzerland on the tax side. Our adjusted effective tax rate came out at around 17%, which is in line with the guidance given. To summarize, this picture confirms that the Kuros business model has reached a level where it can generate sustainable profitability. We ended the year with strong liquidity and no debt. As in 2024, operating cash flow is supporting continued investment in working capital and capacity expansion. This means we are financing growth from a position of balance sheet strength without relying on external funding. In terms of CapEx, we will invest substantial amounts into the U.S. as well as further optimize the innovation hub in the Netherlands. Overall, we will spend around USD 10 million to USD 12 million in the U.S. and around USD 2 million to USD 3 million in the Netherlands on top of another investment into IT applications of around USD 1 million. From a financial perspective, Kuros is well positioned to fund its organic growth path. Let me now put it all together. Between 2023 and 2025, we deliberately invested ahead of growth to build an operating platform that allows Kuros to scale without losing control. Functionally, we strengthened leadership depth, quality systems, compliance and governance. This is a prerequisite for scaling a listed medtech company in a controlled fashion. Structurally, we are moving to a dual production footprint with scalable capacity and higher supply chain resilience. This is about derisking growth and ensuring reliability as demand grows. Digitally, we now have an ERP and an MRP backbone in place. This supports planning discipline across inventory, production and working capital and reduces execution risks as volumes increase. Importantly, we are about to integrate the front end and the back end of the organization. Commercial teams, R&D and clinical are fully supported by operations, finance, IT, legal and HR. 2026 will serve as a transition year to complete the business transformation, accelerate pipeline expansion and product launches, reinforce supply chain resilience and further digitize the platform to drive operating leverage and scale. The conclusion is straightforward. In line with our guidance, the operating platform built between 2023 and 2025 and completed through 2026 is expected to support continued revenue growth and margin expansion through 2028. With that, I now hand over back to our CEO, Chris, who will walk you through the 2026 guidance and how we see the path to 2028. Thank you.

Thanks, Daniel. Great work. As we bring the presentation portion to an end and open up for questions, it's my pleasure to provide guidance going into 2026 as well as midterm guidance into 2028. In 2026, through our investments and as you've heard, increased market acceptance, we are providing top line guidance of at least 35% growth year-over-year and around 14% adjusted EBITDA margin. In addition, as we look to the midterm guidance, we anticipate that Kuros business will be between $300 million and $330 million in revenue with greater than a 20% adjusted EBITDA margin. That sounds like an exciting future for all of us. So in summary, 2025 was another remarkable year for Kuros. We overachieved in every category imaginable, and we continue to set the pace in our marketplace. We delivered profitability for the first time to our investor community. We continued explosive growth in the top line, and we picked up wins in regulatory, international and operationally. But we're not done, not buying a long shot. We have merely set the foundation for this business. With our increased focus on innovation, we will bring new products and new categories to Kuros. With our U.S. operational footprint active in the second half of 2026, we will see future lift to our financial effectiveness. We continue to add experienced and talented people to this organization across the globe, setting the example of what a great team looks like. I'm very proud of what we've accomplished, but I'm even more excited of the future to come. We will accelerate into 2026 and beyond based on this position of strength and become the global leader in advanced orthobiologics. So I thank you for your time and your support. And I will now turn it back over as we enter the Q&A portion.

[Operator Instructions] And our first question today comes from the line of Laura Pfeifer from Octavian.

Laura Pfeifer from Octavian here. I have three of them, please. So first, on your target to reach 300 million to 330 million in sales by '28, could you give us a little bit more granularity on how much of the growth you expect to come from Spine versus the newer segments such as extremities and oncology? And just to confirm, is this entirely organic? Then secondly, on margins, it seems that the Q4 '25 stand-alone adjusted EBITDA margin was above 16%. I understand this is typically a seasonally strong quarter. But nevertheless, was there anything unusual supporting margins in this quarter? And then related to that, should we think about your around 14% adjusted EBITDA margin guidance for '26 as more of a floor, given what I just said on Q4? And I guess here, the aim is really to get a better understanding of what are the key assumptions and investment areas behind that margin guidance. And then maybe the third one is a rather quick question on tariffs and your U.S. production plans. You previously mentioned the tariff impact of around 6 million to 7 million for this year. Is this still the right number? And how should we think about the ramp-up of U.S. production and the share of local supply for the U.S. market then from H2 '26 onwards?

Now Laura, that was more than three questions. I'm just kidding. But I'll take the first one, and then I'll have Daniel drive the other ones and add commentary. When we look at the guidance from a revenue perspective, we start with an organic pathway first. And surely, when we look at what we have in the pipeline with what we've already developed and we continue to launch into these new markets, we believe that the majority of this, if not all of it, will be all organic. We may find technologies along the way. But I can say right now from an organic path, we believe we will hit those targets. The question as far as breaking down between Spine, extremities, oncology, et cetera, we have not done that in the past nor are we in a position to do that today. But I do -- we will obviously be a large portion of that being in the spine marketplace due to the size of the spine marketplace infusion will always be kind of our core marketplace. But the extremity business is growing rather rapidly, and we do see great opportunities there. And so with that, Daniel can take on the tariffs and the EBITDA questions.

Yes. Let's first cover the tariffs. So basically, as said, in '25, we spent about 2 million or basically, we had about a P&L effect of 2 million. In '26, we still see it in the neighborhood of 6 million to 8 million. I mean, currently, the situation is the following that as of the 24th of February, we are not paying any tariffs anymore through our customer agent, but we obviously accrue now for the 10%. So forgive me if the picture right now is a little bit blurred to make exactly the estimate how this will play out, right? But overall, we believe definitely the 6 million to 8 million is a good number still. And then we'll see what the future will bring. Is that good enough for you?

Yes, yes. But then maybe on the U.S. production to really know when we will have like a bigger share of U.S. supply.

Yes. So basically, the plan with the U.S. production, as you know, is to go live in H2 '26. It normally takes from start to finish about 3 months to 4 months to push it to the market. So we believe that in Q4, we should be able, if all goes well, to deliver the U.S. market from the U.S. And then we would obviously start to manage the tariff side concurrently. But that's the current plan that we would produce to market in Q4 out of the U.S.

All of it?

Well, all of it...

It's a transition time, right? So depending on -- not to give away our entire manufacturing strategy, but we're also derisking supply side in 2 different locations. And so it will be a feathering down, if you will, from one site to the next and then again, regionally supplying.

And then on the margin side, so your question was, was there anything special in H2?

No, I was referring to Q4 because I think when I do the math, it seems that you had an EBITDA margin and adjusted one-off, I think it was 16.5%, which is really high. I was just asking if there was anything special in that quarter that gave it a little bit of a margin boost.

Well, we have just, in general, seen a little bit a slowdown in the hiring than we planned initially. So we initially planned to hire roughly 190 to 200 people. We were a little bit below that, which contributed to that. And at the same time, we have seen some less spending for clinical studies. which was mainly a delay in terms of spending, which will be moved into the next quarter. And on top of that, we now see clearly also the benefits kicking in from a digitalization perspective. So we were able to maintain, for example, in the finance department, the FTE level and even start to reduce that number as we have seen in the past. So we see now a combination of all of this. But as said, in 2026, the target, and I think we positioned that also during the Capital Market Day, is that we continue to invest into product engineers, into quality people into IT engineers and in general, into operations to basically get ready for this transition to the U.S. And this basically will have some implications on the margin, of course. But as I said, I mean, this is an investment into the future, which should then allow us to expand the margin in '27 and '28 to the at least 20% margin. But your question is right or your observation, I think the 14% we also consider more as a floor. That's right.

There are currently no further phone questions. I will now hand the call back to Alex for the webcast questions.

Yes. Thank you. So we have some incoming questions also here online. So I will just sum up a few that go together. So one -- obviously, one of the major questions is also concerning Medtronic. So how is the partnership going with Medtronic? And any chances in also giving some more details about revenues and the revenue split? And how the sales force from Medtronic has been integrated? And how -- yes, how the split of the different channels between Medtronic and Kuros is going on?

Sure. No. Thanks, Alex. The Medtronic relationship continues to be very positive, I think, both for them and for us. From a sales force integration perspective in the marketplaces where we have agreed to partner together, it's been a very -- it's been a great success for both parties. We also work with independent agents outside of the Medtronic relationship. And so with that, we continue to grow at about the same cadence inside the Medtronic relationships as well as in the non-Medtronic relationships. In addition to that, we're growing our revenue base with in the extremities, which obviously is outside of Medtronic's call pattern. And so from all that perspective, I think we're doing a really nice job of managing the different sales agencies that we work with, including Medtronic. We don't report out the data just as a habit. But again, I think that the rest assured that the relationship has been positive. And in the marketplaces where we work together, it's done extremely well for both Medtronic and for us. So again, at the end of the -- I guess, we're 1.5 years into the -- a little under 1.5 years into the agreement. So all things moving in the right direction.

Excellent. So the next question would be in terms of other segments like extremities. So what is the expectation in terms of the growth dynamics also for this year?

I think from a growth perspective, a lot of our focus now is -- if we think about what we did in 2025 was validation. In 2025, we spent the time making sure we had the right products for the right applications and the right procedures. We worked with a core group of physicians to ensure that, that was all working in the right direction, getting the right results. And that was all affirmed. And we also wanted to make sure we knew which study we were going to do and take on. And again, in this space, in the foot and ankle, there's only been one other trial in orthobiologics in the past dozen years or so. And that trial was done for regulatory purposes. So the lack of data in this marketplace is astounding. And so we launched the ASTRA trial in support of this small group of physicians. And so as we were doing that, going into 2026, we began to increase our efforts on the commercial front. We identified specialists with our organization, which we're bringing onboard now to work with our existing sales channel. So again, leveraging our infrastructure that already exists servicing the spine community, we're able to add just a handful of people to provide the expertise and the knowledge in the extremity space to really make us even more effective in that market. And so we're adding sales agents in that marketplace. So we do see exponential growth. Now mind you, the sales -- although the sales price per unit is about the same, the quantity of material used in a foot and ankle surgery is much less than, say, the quantity of material that's used in the spine surgery. It just makes sense if you look at your foot and then look at your back, one is bigger than the other. And so you're going to use more material in one and less in another. But the procedures that are in foot and ankle are -- there's a high number of them. So the marketplace in foot and ankle is about $450 million compared to the spine marketplace. But we do anticipate a great deal of growth and bringing surgeons on board and expanding our foundation, our footprint in that marketplace.

Excellent. So from the next person, you have two questions. Firstly, could you please elaborate on the trauma target market? Will this see you competing directly in the [ cements ] market, which previously was seen as an adjacent market? And secondly, can you give us more detail on the IDN contract wins, specifically which regions and whether this gives you more leverage over Medtronic and the selling agents in terms of commission paid?

So I'll take the last one first and the first one last. So on the IDN agreements, we actually received multiple national agreements towards the end of the year. And so that opened up access to almost double the amount of hospitals that we were currently servicing. They are national agreements. So they're not regional, they are national agreements. And so with that, does it provide an advantage against Medtronic or it really provides an opportunity for all of the sales agents that we integrate and work with. And so whether it's a sales agent for Medtronic or whether it's an independent sales agent in another territory, this is a great benefit for them to get greater access to greater customers. As far as leveraging that for commission reduction or things of that nature, we're focused on growing the revenue. I think that as time moves forward, as we fill the bag, it's going to be really evident that the sales agents that we partner with that partner with us to keep them working with us, I think that, that's going to be a big benefit. But again, we're focused on growing the revenue, the access to the customer. We're still a growth engine relative to that. The second part of that question, which related to target markets in [ cements ] and bone support and trauma, the trauma marketplace for bone fusion is still actually pretty large, whether it's upper extremity, whether it's pelvic extremity that you're not using a cement base. you're still using a product that is to grow bone like MagnetOs. And so that is not a competitive. And again, I know we talk about this quite a bit, competitive nature versus, say, a bone sport or any other type of cement like bone void filler. So there's a huge marketplace over $450 million available to us just in bone grafting material for trauma indications. It is -- we're getting clinical results back in currently. And so those products in those -- in that study will be kicked off the second half of this year. And again, just for a bone fusion product using MagnetOS. Now whether we compete in the [ cement ] marketplace is yet to be seen. That would be -- if we were to go down that path, that would be a separate product line or a product development effort.

Great. So I have a next question, which goes a bit in the same direction. So can you give us a high-level idea of kind of new products you aim to introduce? When you expect them to launch? And by when they should start and materially contribute to top line?

Sure. Well, obviously, with a 300 million and 330 million target out there in the midterm, we're going to have to develop some new products and push them out into the marketplace as well. So we're very active, as I mentioned, in the Netherlands with our R&D hub there. And so as far as giving a detailed product line or market, we're not at the point where we'd like to give that. We'd like to do that closer to launch. But needless to say, in the markets that we're going after, we are going to be leveraging not just our knowledge base that we have organically, but also the foundation sales force that we put in place. We will now have a sales force in Spine and a sales force in extremities and foot and ankle and trauma. And so you can imagine all the other biomaterials that incorporate into those sales forces is what we're looking to bring forth. And again, having an organic understanding of how the body likes to respond to bone and bone-like products, you can start to dial in what technologies we might be developing in the future. But we will -- as time moves forward and we get closer to the timelines of launch, we'll be able to highlight those product launches.

Great. And then can you also elaborate on the market dynamics? And from which segments you are taking market share of? Is it bone graft space, allografts, synthetic, so give it the granularity where we are winning market shares and how it's developing.

Yes. So I think that the biggest market share shift we see is in cellular allograft. Cellular allografts have been in the U.S. marketplace for quite some time. However, to date, there is no publication of any Level 1 data that is -- has shown effectiveness of these products. More than likely, our study that is doing a head-to-head comparison, will be the first Level 1 study to publish any information on any cellular allograft. And so from our perspective, when a surgeon sees the data that we're putting forth, and again, cellular allografts tend to be around a $400 million to $500 million marketplace; we're seeing a great deal of transition from those surgeons. We're also seeing hospital systems wishing to remove that category because they also recognize they're spending a great deal of money on a product that has not only no clinical benefit published, but also there are still risks relative to disease transmission as has been reported before. So I think cellular allograft will be number one. Any of the advanced biologics that we see out there, we do see some migration. We also see some migration from standard bone products such as DBM, although a less expensive alternative, we're showing such a great effectiveness that in some areas, they are willing to spend a little bit more money on a product that they know is going to work versus a product that may or may not work. So we're seeing a little bit of migration from there as well. But I would say traditionally, and a large part of this is coming from cellular allografts, secondarily from other advanced biologics, certainly some other synthetics and -- yes.

Another is a block some more, let's say, about financials. So could you walk us through the key drivers behind the significant gross margin improvement? Do you expect this trend to continue? And what target gross margin level are you aiming for?

Gross margin remained at around 90%, which is our historical gross margin. So there's not really a change there. I mean what I can say is that with the tariffs now kicking in, obviously, we had some implications. So we always mentioned that it will be in the neighborhood of 1%, probably a little bit more. Obviously, in '26, we will now see how this plays out. I said, it's in the neighborhood of 6 million to 8 million. If you adjust for that, then we will remain at the 90%. What we can see by shifting to the U.S. is that we see a little bit higher labor cost in the U.S. But labor overall from a production cost perspective, is just about 10% of all the material cost. And therefore, we don't believe that it will have a substantial impact on gross profit. And at the same time, we believe that the inbound transportation cost from the Netherlands to the U.S. will obviously also be optimized. So we can see that there is some leveling off there. And therefore, we are quite confident to maintain the gross profit margin guidance also on a go-forward basis with 90%.

So -- and the next question is about, let's say, top line growth. So we are guiding for 35% growth in '26. So does that mean that possibly 30% in '27, 30% in '28 so that we can reach 333 million in sales in '28?

Yes. I think it's pretty much a standard math grid. Somebody wants to break out the Excel spreadsheet, they can go ahead and build that curve, to get us to the 300 million to 330 million. Again, these are big numbers that we're growing into. And so yes, I think that, yes, at least 35% growth for next year -- for this year.

So the next question would be about the operating leverage. So is with all this operating leverage that we have currently and the scaling effects kicking in, shouldn't the EPS, the earnings per share be a bit higher? Can this mostly be attributed to dilution from share-based compensation and therefore, also the increased shares outstanding?

Well, I mean, first, I want to say it's the first time we have a net profit. So I'm quite glad that we can now disclose earnings per share. So just to be clear. And secondly, we will continue to offer LTIs to our employees also as a retention tool. That's important. But we have overall right now about 2.8 million of LTIs outstanding. As you know, it's -- I think it's disclosure Note 21. I can't remember the page, but you can look it up there. It's about 2.8 million, as said. And yes, of course, this has a dilution effect on top of the 39 million shares. So if you do the math, it will give you the results we have presented now in the financial statements.

Excellent. So now the last question that I have online here, let's see. With 45 million in Q4 with you exit 2025 at a monthly run rate above 15 million in sales, assuming sequential growth through the quarter. If you assume no growth from this level and multiply by 12, assuming exited close to 16 million, you are already at 32% growth for '26. Why does your guide assume no sequential growth through the year?

Yes. Look, I think that when we -- historically, both Daniel and myself, we believe in providing guidance and information. Again, it's not too long ago where we didn't provide any guidance. And so we're very cautious to make sure that when we provide guidance or we provide information to the marketplace that we achieve it. And I think that when we look at the marketplace and also recognize the fourth quarter is always heavily tilted, when we start looking at the market's percentage of revenue in the first half versus the second half, December is traditionally the largest month because we have such a large exposure in the international marketplace -- I'm sorry, to the domestic marketplace, all those things come into play. And so it's very difficult to basically just take the last month of the year and straight line that as suggested and take that on a go-forward basis. But when we look at all the challenges we have ongoing in the organization, but continue to grow at such a high percentage, especially compared to our peers, a marketplace that's growing at around 6% to 7%; we're putting forth saying that we will at least grow 35%. And so we're continuing to take market share going into this. I think, again, that number puts you in and around that $200 million mark, give or take. And so that's a significant business in the orthobiologics space, certainly the largest outside of BMP, largest product line in that space. Those are massive accomplishments. And so again, part of this is caution relative to how we have communicated to the marketplace. Part of this is also looking at -- it's still tremendous dollar growth within those markets. And we're also investing in infrastructure along the way. So we feel confident in the guidance we're putting forth. And again, also leaning into how we have communicated to date quarter-over-quarter as well as how we have delivered quarter-over-quarter.

Okay. Thank you. Then there's a next question Well, that's beyond the guidance. But what do you think the potential is for EBITDA and the EBIT margin in 2030?

2030? I mean, look, we have given for the first time guidance for '26 and up to '28, and we feel comfortable with the plus 20. And after that, we'll see how we further progress. But right now, this is what we are willing to offer.

Thank you. There are no further questions online. So I hand over to the operator if there are any further questions by phone.

[Operator Instructions] We just got a question in one moment, please. And the question comes from the line of Laura Pfeifer from OCtavian.

Maybe just one quick follow-up question on the MagnetOs MIS launch. I think it happened in October. Just wondering if you could share a little bit more details on how that launch is progressing? What share of revenue does it already contribute? And maybe also, what is your expectation for the '26 contribution of MIS?

Thanks, Laura. Love repeat colors. The the MIS was a great launch for us. We launched that in the fourth quarter, and we are seeing great uptick. And I'll tell you a couple of things we -- it's validated but also learned. We're finding that surgeons are using it not just in MIS procedures, but also in open procedures where they traditionally weren't using that delivery mechanism. And the reason being they had greater access into what I'll call the nooks and the cranies of the space, whether it's in the spine or other areas of the body of applying our material. So I think that from an MIS perspective, it certainly has achieved the results, and we're seeing uptick in surgeons requesting the product. And so I think also from a spine perspective, we're getting access into spine procedures and open procedures where we didn't anticipate it. And so all that is a positive thing because -- it also increases the ASP of those surgeries. As far as breaking out the revenue, we haven't done that to date. We haven't broken down product line contributions, and I don't want to start that habit today. As far as going forward, we think that we're seeing certain procedures in foot and ankle who are desiring a similar mechanism, maybe even a smaller joint. And so we're looking at ways to optimize that technology to get into smaller crevices and smaller joints. And so we're also seeing even in trauma. And so once we put the product out there, it certainly met the indications, but we're finding new nuances and new procedures that we can apply this to. It also helps from a contract perspective as we look to add the product to existing contracts or open up new doors and new contracts because, quite frankly, there's not many other technologies out there that have such a delivery mechanism. So it certainly is a door opener for many surgeons who may not be using our product. So for all intents and purposes, the MIS delivery platform has been a home run for us.

There are no further phone questions. I will hand the call back to Alex.

Thank you. There is one last question here online. So of the surgeons that are using MagnetOs, do you have a feeling for how the product is growing in terms of the share of their procedures?

Yes. So we don't have the data to be able to put forth, but I'll tell you what traditionally happens with physicians when using a technology for the first time. normally, they'll have a subset of patients that are a challenge for their healing, as an example, or they don't want to use a specific product for an application. So it may be an advanced biologic that has challenges in posterior cervical. So they might give us a chance to work with them in posterior cervical. They'll do a handful of patients and then wait and watch and look at the results. And so once those results come in, and that tends to be around the 3-month mark, 4-month mark, 5-month mark where the patients come back postoperatively and they're seeing the results. If they feel confident in those results, then they're expanded to other parts of their practice. And so that is a traditional pathway that we see physicians take. What's interesting in the spine marketplace is that we are no longer in the early adopter part of the curve, we're in the meat of the curve. And so what we're seeing in that marketplace, we're seeing surgeons who have seen their partners have great results and they're adopting the technology into their practice. They're not going through the same cycle, but our extremity physicians are doing the same behavior that the spine surgeons. So they will take a challenging fusion patient population, start there, see how that works, collect the results and then move on to their other fusion-based procedures. Same thing happens in the trauma market. Right now, we're identifying the right procedures in the trauma marketplace to do this. And so that is the methodology of how a surgeon will walk through how they incorporate it into their practice. When we report the results, of 7% to 14%, again, just trying to get the actual data on procedures is a little bit of a challenge in the U.S. marketplace; but we're able to identify surgeons and how they're growing within the practice and what procedures. So at least in one portion of their market and one portion of their procedure volume, they are using us on a continuous basis. And that's how we reported out that 7% to 14% jump. We may not have 100% of their practice, but we're certainly evolving into it.

Excellent. So since there are no further questions, I would like to hand over back to you, Chris, and -- for final remarks.

So again, thank you for all the questions. Thank you for listening to us today for this past hour. A tremendous 2025 all around. And I think that as you've listened today, the infrastructure that we as an organization have put in place is truly foundational. And so we've been able to grow this business, again, since I've been here for the past 3.5 years or so, 1,000% plus, whatever it is. And again, the team that we have assembled, Daniel talked about the number of people, truly tremendous professionals across the board. We are so happy and excited for what the future holds. 2026 is off to a great start. And again, between the pipeline, the operational infrastructure that we're putting in place, we're excited and great things to come. So thank you for your support, and thank you for your time. And with that, I guess we'll say goodbye.