OrthoPediatrics Corp. Reports First Quarter 2026 Financial Results and Increases 2026 Financial Guidance
Rhea-AI Summary
OrthoPediatrics (Nasdaq: KIDS) reported Q1 2026 revenue of $59.4M, up 13% year-over-year, with U.S. revenue of $45.3M (76%) and international revenue of $14.1M (24%).
Adjusted EBITDA was $2.2M, free cash flow usage improved 40% to $5.0M, and full-year 2026 revenue guidance was raised to $263.0M–$267.0M.
Positive
- Revenue +13% year-over-year to $59.4M
- Adjusted EBITDA of $2.2M in Q1 2026
- Raised 2026 revenue guidance to $263.0M–$267.0M
- Free cash flow usage improved 40% to $5.0M
Negative
- Net loss of $10.7M in Q1 2026 (unchanged YoY)
- Cash and short-term investments down to $50.9M from $62.9M
News Market Reaction – KIDS
In the May 1 session, KIDS gained 3.78%, reflecting a moderate positive market reaction. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
First Quarter 2026 Revenue Increased
WARSAW, Ind., April 30, 2026 (GLOBE NEWSWIRE) -- OrthoPediatrics Corp. (“OrthoPediatrics” or the “Company”) (Nasdaq: KIDS), a company focused exclusively on advancing the field of pediatric orthopedics, today announced its financial results for the first quarter ended March 31, 2026.
First Quarter 2026 and Business Highlights
- Helped a record of over 45,000 children in the first quarter of 2026
- Generated total revenue of
$59.4 million for the first quarter of 2026, up13% from$52.4 million in the first quarter of 2025; domestic revenue increased11% and international revenue increased22% in the quarter - Grew worldwide Trauma & Deformity revenue
14% and worldwide Scoliosis revenue13% in the first quarter of 2026 compared to the first quarter of 2025 - Achieved adjusted EBITDA of
$2.2 million in the first quarter of 2026, compared to ($0.4) million in the first quarter of 2025 - Reduced first quarter 2026 free cash flow usage by
40% as compared to the same period in the prior year - Increased full year 2026 revenue guidance to
$263.0 million to$267.0 million from its prior range of$262.0 million to$266.0 million , representing growth of11% to13% compared to prior year
David Bailey, President & CEO of OrthoPediatrics, commented, “We delivered a strong start to 2026 with
First Quarter 2026 Financial Results
Total revenue for the first quarter of 2026 was
Trauma and Deformity revenue for the first quarter of 2026 was
Gross profit for the first quarter of 2026 was
Total operating expenses for the first quarter of 2026 were
Sales and marketing expenses increased
Research and development expenses decreased
General and administrative expenses increased
Total other expense was
Net loss for the first quarter of 2026 was
Adjusted EBITDA for the first quarter of 2026 was
Weighted average basic and diluted shares outstanding for the three months ended March 31, 2026, was 23,685,055 shares.
As of March 31, 2026, cash, cash equivalents, short-term investments and restricted cash were
Full Year 2026 Financial Guidance
For the full year of 2026, the Company increasing its revenue guidance of
Conference Call
OrthoPediatrics will host a conference call on Thursday, April 30, 2026, at 4:30 p.m. ET to discuss the results. Investors interested in listening to the conference call may do so by accessing a live and archived webcast of the event at www.orthopediatrics.com, on the Investors page in the Events & Presentations section. The webcast will be available for replay for at least 90 days after the event.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of U.S. federal securities laws. You can identify forward-looking statements by the use of words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "could," "believe," "estimate," "project," "target," "predict," "intend," "future," "goals," "potential,” "objective," "would" and other similar expressions. Forward-looking statements involve risks and uncertainties, many of which are beyond OrthoPediatrics’ control. Important factors could cause actual results to differ materially from those in the forward-looking statements, including, among others: the risks related to widespread health emergencies, such as COVID-19 and respiratory syncytial virus, the impact such pandemics, epidemics and infectious disease outbreaks may have on the demand for our products, and our ability to respond to the related challenges; and the risks, uncertainties and factors set forth under "Risk Factors" in OrthoPediatrics’ Annual Report on Form 10-K filed with the SEC on March 4, 2026, as updated and supplemented by our other SEC reports filed from time to time. Forward-looking statements speak only as of the date they are made. OrthoPediatrics assumes no obligation to update forward-looking statements to reflect actual results, subsequent events, or circumstances or other changes affecting such statements except to the extent required by applicable securities laws.
Use of Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures, such as free cash flow, adjusted diluted (loss) earnings per share and Adjusted EBITDA, which differ from financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). Free cash flow, which we reconcile to "Net cash used in operating activities" is cash flow from operations increased by "Capital expenditures". Adjusted loss per share in this press release represents diluted loss per share on a GAAP basis, plus the accreted interest attributable to acquisition installment payables, restructuring charges, tariffs, European Union Medical Device Regulation fees increase, acquisition related costs, and minimum purchase commitment costs. We believe that providing the non-GAAP diluted loss per share excluding these expenses, as well as the GAAP measures, assists our investors because such expenses are not reflective of our ongoing operating results. Adjusted EBITDA in this release represents net loss, plus interest expense, net plus other income, income tax charge (benefit), depreciation and amortization, stock-based compensation expense, restructuring charges, European Union Medical Device Regulation fees increase, acquisition related costs, and the cost of minimum purchase commitments. The fair value adjustment of contingent consideration is associated with our estimates of the value of earn-outs in connection with certain acquisitions. The Company believes the non-GAAP measures provided in this earnings release enable it to further and more consistently analyze the period-to-period financial performance of its core business operating performance. Management uses these metrics as a measure of the Company’s operating performance and for planning purposes, including financial projections. The Company believes these measures are useful to investors as supplemental information because they are frequently used by analysts, investors and other interested parties to evaluate companies in its industry. Free cash flow is a non-GAAP financial measure and has limitations because it does not represent the cash flow available for management's use as it does not reflect capital expenditures which will likely recur in the future. Adjusted EBITDA is a non-GAAP financial measure and should not be considered as an alternative to, or superior to, net income or loss as a measure of financial performance or cash flows from operations as a measure of liquidity, or any other performance measure derived in accordance with GAAP, and it should not be construed to imply that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, the measure is not intended to be a measure of free cash flow for management’s discretionary use, as it does not reflect certain cash requirements such as debt service requirements, capital expenditures and other cash costs that may recur in the future. Adjusted EBITDA contains certain other limitations, including the failure to reflect our cash expenditures, cash requirements for working capital needs and other potential cash requirements. In evaluating these non-GAAP measures, you should be aware that in the future the Company may incur expenses that are the same or similar to some of the adjustments in this presentation. The Company’s presentation of non-GAAP free cash flow, diluted loss per share or Adjusted EBITDA should not be construed to imply that its future results will be unaffected by any such adjustments. Management compensates for these limitations by primarily relying on the Company’s GAAP results in addition to using these adjusted measures on a supplemental basis. The Company’s definition of these measures is not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation. The schedules below contain reconciliations of Net cash used in operating activities to Free cash flow (Non-GAAP), GAAP diluted loss per share to non-GAAP diluted loss per share and net loss to non-GAAP Adjusted EBITDA.
About OrthoPediatrics Corp.
Founded in 2006, OrthoPediatrics is an orthopedic company focused exclusively on advancing the field of pediatric orthopedics. As such it has developed the most comprehensive product offering to the pediatric orthopedic market to improve the lives of children with orthopedic conditions. OrthoPediatrics currently markets nearly 90 systems that serve three of the largest categories within the pediatric orthopedic market. This product offering spans trauma and deformity, scoliosis, and sports medicine/other procedures. OrthoPediatrics’ global sales organization is focused exclusively on pediatric orthopedics and distributes its products in the United States and over 75 countries outside the United States. For more information, please visit www.orthopediatrics.com.
Investor Contact
Philip Trip Taylor
Gilmartin Group
philip@gilmartinir.com
415-937-5406
| ORTHOPEDIATRICS CORP. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (Unaudited) (In Thousands, Except Share Data) | |||||||
| March 31, 2026 | December 31, 2025 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash | $ | 12,193 | $ | 19,556 | |||
| Restricted cash | 2,052 | 2,064 | |||||
| Short-term investments | 36,616 | 41,295 | |||||
| Accounts receivable - trade, net of allowances of respectively | 54,430 | 53,838 | |||||
| Inventories, net | 134,021 | 133,790 | |||||
| Prepaid expenses and other current assets | 6,554 | 5,876 | |||||
| Total current assets | 245,866 | 256,419 | |||||
| Property and equipment, net | 48,554 | 49,555 | |||||
| Other assets: | |||||||
| Amortizable intangible assets, net | 63,802 | 64,802 | |||||
| Goodwill | 115,173 | 109,269 | |||||
| Other intangible assets | 12,914 | 12,909 | |||||
| Other non-current assets | 15,881 | 15,676 | |||||
| Total other assets | 207,770 | 202,656 | |||||
| Total assets | $ | 502,190 | $ | 508,630 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable - trade | $ | 19,701 | $ | 18,786 | |||
| Accrued compensation and benefits | 12,768 | 13,693 | |||||
| Current portion of long-term debt with affiliate | 172 | 170 | |||||
| Current portion of acquisition installment payable | 2,758 | 2,194 | |||||
| Other current liabilities | 11,784 | 11,354 | |||||
| Total current liabilities | 47,183 | 46,197 | |||||
| Long-term liabilities: | |||||||
| Long-term loan | 48,312 | 48,189 | |||||
| Long-term convertible note | 48,644 | 48,486 | |||||
| Long-term debt with affiliate, net of current portion | 240 | 283 | |||||
| Other long-term debt, net of current portion | 3,191 | 2,862 | |||||
| Acquisition installment payable, net of current portion | 2,961 | 2,898 | |||||
| Deferred income taxes | 3,355 | 3,582 | |||||
| Other long-term liabilities | 9,592 | 9,537 | |||||
| Total long-term liabilities | 116,295 | 115,837 | |||||
| Total liabilities | 163,478 | 162,034 | |||||
| Stockholders' equity: | |||||||
| Common stock, shares and 25,093,792 shares issued as of March 31, 2026 and December 31, 2025, respectively | 6 | 6 | |||||
| Additional paid-in capital | 626,009 | 622,325 | |||||
| Accumulated deficit | (285,899 | ) | (275,212 | ) | |||
| Accumulated other comprehensive loss | (1,404 | ) | (523 | ) | |||
| Total stockholders' equity | 338,712 | 346,596 | |||||
| Total liabilities and stockholders' equity | $ | 502,190 | $ | 508,630 | |||
| ORTHOPEDIATRICS CORP. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| (Unaudited) | |||||||
| (In Thousands, Except Share and Per Share Data) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Net revenue | $ | 59,362 | $ | 52,411 | |||
| Cost of revenue | 15,972 | 14,149 | |||||
| Gross profit | 43,390 | 38,262 | |||||
| Operating expenses: | |||||||
| Sales and marketing | 18,470 | 16,572 | |||||
| General and administrative | 31,024 | 30,280 | |||||
| Restructuring | — | 40 | |||||
| Research and development | 2,231 | 2,351 | |||||
| Total operating expenses | 51,725 | 49,243 | |||||
| Operating loss | (8,335 | ) | (10,981 | ) | |||
| Other expense (income): | |||||||
| Interest expense, net | 2,102 | 1,126 | |||||
| Other expense (income), net | 421 | (1,644 | ) | ||||
| Total other expense (income), net | 2,523 | (518 | ) | ||||
| Net loss before income taxes | $ | (10,858 | ) | $ | (10,463 | ) | |
| Income tax (benefit) charge | (171 | ) | 196 | ||||
| Net loss | $ | (10,687 | ) | $ | (10,659 | ) | |
| Weighted average common stock - basic and diluted | 23,685,055 | 23,230,871 | |||||
| Net loss per share – basic and diluted | $ | (0.45 | ) | $ | (0.46 | ) | |
| ORTHOPEDIATRICS CORP. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (Unaudited)(In Thousands) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| OPERATING ACTIVITIES | |||||||
| Net loss | $ | (10,687 | ) | $ | (10,659 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Depreciation and amortization | 5,721 | 5,048 | |||||
| Stock-based compensation | 3,982 | 3,859 | |||||
| Accretion of acquisition installment payable | 72 | 62 | |||||
| Deferred income taxes | (314 | ) | 196 | ||||
| Non-cash other | 50 | 139 | |||||
| Changes in certain current assets and liabilities, net of acquisitions: | |||||||
| Accounts receivable - trade | (183 | ) | (1,497 | ) | |||
| Inventories | 139 | (1,906 | ) | ||||
| Prepaid expenses and other current assets | (483 | ) | (519 | ) | |||
| Accounts payable - trade | 704 | 5,207 | |||||
| Accrued expenses and other liabilities | (3,571 | ) | (2,528 | ) | |||
| Other | 1,283 | (1,558 | ) | ||||
| Net cash used in operating activities | (3,287 | ) | (4,156 | ) | |||
| INVESTING ACTIVITIES | |||||||
| Other acquisitions, including clinics, net of cash acquired | (6,777 | ) | (220 | ) | |||
| Sale of short-term marketable securities | 5,000 | — | |||||
| Investment in private companies | (250 | ) | (1,540 | ) | |||
| Purchases of property and equipment | (1,760 | ) | (4,227 | ) | |||
| Net cash used in investing activities | (3,787 | ) | (5,987 | ) | |||
| FINANCING ACTIVITIES | |||||||
| Payments on mortgage notes | (41 | ) | (39 | ) | |||
| Payments on acquisition notes | (573 | ) | (87 | ) | |||
| Net cash used in financing activities | (614 | ) | (126 | ) | |||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 313 | (79 | ) | ||||
| NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (7,375 | ) | (10,348 | ) | |||
| Cash, cash equivalents and restricted cash, beginning of period | $ | 21,620 | $ | 45,777 | |||
| Cash, cash equivalents and restricted cash, end of period | $ | 14,245 | $ | 35,429 | |||
| SUPPLEMENTAL DISCLOSURES | |||||||
| Cash paid for interest | $ | 1,869 | $ | 1,269 | |||
| Transfer of instruments from property and equipment and inventory | $ | (126 | ) | $ | (461 | ) | |
| Right-of-use assets obtained in exchange for lease liabilities | $ | 793 | $ | 1,682 | |||
| Issuance of common shares for LOC acquisition | $ | 257 | $ | — | |||
| Issuance of common shares in connection with Boston O&P acquisition | $ | — | $ | 233 | |||
| Debt Issuance costs not yet paid | $ | 289 | $ | — | |||
| ORTHOPEDIATRICS CORP. | |||||
| NET REVENUE BY GEOGRAPHY AND PRODUCT CATEGORY | |||||
| (Unaudited) | |||||
| (In Thousands) | |||||
| Three Months Ended March 31, | |||||
| Product sales by geographic location: | 2026 | 2025 | |||
| U.S. | $ | 45,309 | $ | 40,891 | |
| International | 14,053 | 11,520 | |||
| Total | $ | 59,362 | $ | 52,411 | |
| Three Months Ended March 31, | |||||
| Product sales by category: | 2026 | 2025 | |||
| Trauma and deformity | $ | 43,045 | $ | 37,867 | |
| Scoliosis | 15,442 | 13,664 | |||
| Sports medicine/other | 875 | 880 | |||
| Total | $ | 59,362 | $ | 52,411 | |
| ORTHOPEDIATRICS CORP. | |||||||
| RECONCILIATION OF NET CASH USED IN OPERATING ACTIVITIES | |||||||
| TO FREE CASH FLOW | |||||||
| (Unaudited) | |||||||
| (In Thousands) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Net cash used in operating activities (GAAP) | (3,287 | ) | (4,156 | ) | |||
| Less: Capital expenditures | (1,760 | ) | (4,227 | ) | |||
| Free cash flow (non-GAAP) | $ | (5,047 | ) | $ | (8,383 | ) | |
| ORTHOPEDIATRICS CORP. | |||||||
| RECONCILIATION OF NET LOSS TO NON-GAAP ADJUSTED EBITDA | |||||||
| (Unaudited) | |||||||
| (In Thousands) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Net loss | $ | (10,687 | ) | $ | (10,659 | ) | |
| Interest expense, net | 2,102 | 1,126 | |||||
| Other expense (income), net | 421 | (1,644 | ) | ||||
| Income tax (benefit) charge | (171 | ) | 196 | ||||
| Depreciation and amortization | 5,721 | 5,048 | |||||
| Stock-based compensation | 3,982 | 3,859 | |||||
| Restructuring charges | — | 40 | |||||
| Tariffs | 225 | — | |||||
| European Union Medical Device Regulation fees increase | — | 110 | |||||
| Acquisition related costs | 569 | 1,115 | |||||
| Minimum purchase commitment cost | — | 430 | |||||
| Adjusted EBITDA | $ | 2,162 | $ | (379 | ) | ||
| ORTHOPEDIATRICS CORP. | |||||||
| RECONCILIATION OF DILUTED LOSS PER SHARE TO NON-GAAP ADJUSTED DILUTED LOSS PER SHARE | |||||||
| (Unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Loss per share, diluted (GAAP) | $ | (0.45 | ) | $ | (0.46 | ) | |
| Tariffs | 0.01 | — | |||||
| Acquisition related costs | 0.02 | 0.05 | |||||
| Minimum purchase commitment cost | — | 0.02 | |||||
| Loss per share, diluted (non-GAAP) | $ | (0.42 | ) | $ | (0.39 | ) | |
