Paragon 28 Names CFO, Reports Q2 Results

Paragon 28 has appointed Chadi Chahine as its new chief financial officer (CFO) and executive VP of supply chain operations. Chahine took office on August 5, 2024.
 
He succeeds Kristina “Krissy” Wright, who has been serving as the company’s interim CFO since April 3, 2024.
 
Chahine has over 25 years of global experience in finance and business operations, including a track record in orthopedics. Before joining Paragon 28, he was group CFO of Zimmer Biomet’s global business group, where he oversaw $7 billion in revenue. During his tenure, Chahine helped drive record revenue and profit in 2022 and 2023.
 
Before Zimmer Biomet, he was COO and CFO of Global Stanley Security at Stanley Black & Decker prior to the business’s $4.1 billion sale. Chahine also previously served as CFO at CIRCOR International. He also held divisional CFO roles at Smith+Nephew, responsible for international markets and the U.S.
 
“We are thrilled to welcome Chadi to our executive team,” said Albert DaCosta, CEO and chairman of Paragon 28. “Chadi’s extensive experience in orthopedics and finance combined with his strategic vision and proven ability to drive growth and operational efficiency will be invaluable as we continue to expand our presence in the foot and ankle market and further scale our business operations. We also extend our sincere gratitude to Krissy Wright for her exceptional leadership as interim CFO and look forward to her continued contributions on our Board.”
 
“Paragon 28 is a truly unique business in the world of orthopedics. The Company’s commitment to innovation and excellence in foot and ankle aligns perfectly with my professional values and goals,” added Chahine. “I am excited to join Paragon 28 at such a critical time and look forward to contributing to its continued growth and success.”

Paragon 28’s Q2 financial results

The company reported second quarter revenue of $61 million, which was 19.6% growth over the prior year’s quarter. Gross margin was 75% in Q2, compared to 77.3% in last year’s second quarter.
 
Operating expenses totaled $13.8 million, an increase of 9.7% compared to Q2 2023’s $51.5 million. Net loss was $13.8 million, a slight 0.6% increase over the prior year’s second quarter.
 
Adjusted EBITDA for Q2 2024 was a loss of $3 million, a $2.4 million improvement compared to a $5.4 million loss in Q2 2023.
 
Paragon 28 narrowed its previous 2024 revenue guidance to $249-255 million, expecting 15.1-17.8% growth compared to 2023.
 
“We are pleased with our results this quarter and continue to see strong momentum in the U.S. driven in part by the energy around our recent new product launches,” said DaCosta. “Further, we have made significant progress on our cost optimization plans resulting in an 840 basis point year-over-year improvement to operating expenses in the quarter, with more planned in the second half of 2024 and into 2025.”
 
The company also revealed it would be reducing its workforce by about 7% this month. It will also begin detailed review and optimization of functional costs and controls, an inventory burn-down plan, and a one-time realignment on 2024 executive compensation.