Key Highlights

  • OrthoPediatrics reported record third quarter revenue of USD 72.7 million, up 19% year over year.
  • Net loss narrowed to USD 5.9 million, or USD 0.25 per share, from USD 11.8 million a year earlier.
  • Adjusted EBITDA reached USD 6.9 million, up from USD 6.2 million in the same period of 2025.
  • The company raised full year 2026 revenue guidance to a range of USD 270.0 million to USD 273.0 million.

Record Revenue Driven by Trauma and Deformity Growth

OrthoPediatrics Corp (NASDAQ:KIDS) reported record third quarter revenue of USD 72.7 million, up 19% from USD 61.2 million a year earlier. U.S. revenue grew 19% to USD 57.9 million, representing 80% of total revenue, while international revenue grew 18% to USD 14.8 million.

Trauma and Deformity revenue, the company's largest category, grew 19% to USD 52.6 million, driven by multiple product lines including Cannulated Screws, PNP Femur and PediPlates, along with the addition of 3P Hip. Scoliosis revenue grew 18% to USD 19.2 million, driven by VerteGlide and Response product sales.

Profitability Improves Alongside Positive Free Cash Flow

Gross profit increased 19% to USD 54.0 million, with gross margin holding steady at 74%. Net loss narrowed to USD 5.9 million, or USD 0.25 per share, from USD 11.8 million, or USD 0.50 per share, a year earlier. Adjusted EBITDA was USD 6.9 million, up from USD 6.2 million in the same period of 2025.

The company generated free cash flow of USD 1.6 million during the quarter, a USD 5.0 million improvement compared with USD 3.4 million of cash usage in the prior year period, driven by increased adjusted EBITDA, lower sets deployed and improved working capital metrics.

Raised Guidance Reflects Continued Momentum

The company raised its full year 2026 revenue guidance to a range of USD 270.0 million to USD 273.0 million, up from a prior range of USD 265.0 million to USD 269.0 million, representing growth of 14% to 16% over 2025. Management reiterated expectations for approximately USD 10.0 million in annual set deployment, approximately USD 25.0 million in adjusted EBITDA, and breakeven free cash flow for the full year.

Continued growth in Trauma and Deformity and Scoliosis product lines, alongside the company's OPSB strategy, could support the raised guidance range, while total operating expenses, which grew 6% this quarter on higher commissions and personnel costs, remain a variable to monitor relative to revenue growth.

Guidance Metrics to Track

Progress toward the raised full year revenue guidance of USD 270.0 million to USD 273.0 million, continued free cash flow generation relative to the breakeven target for 2026, and adjusted EBITDA relative to the approximately USD 25.0 million full year guidance are among the items the company has flagged for investors.