OrthoPediatrics Corp. Reports Third Quarter 2026 Financial Results and Increases 2026 Financial Guidance
Quarterly free cash flow turned positive, while the company maintained its expectation for breakeven free cash flow in 2026.
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Rhea-AI Summary
OrthoPediatrics (Nasdaq: KIDS) reported third-quarter 2026 revenue of $72.7 million and raised its full-year revenue guidance following growth across its businesses. Revenue rose 19% year over year, with U.S. sales increasing 19% and international sales increasing 18%. Trauma and Deformity revenue grew 19%, while Scoliosis revenue rose 18%. Gross margin remained at 74%.
Net loss narrowed to $5.9 million, or $0.25 per share, from $11.8 million, or $0.50 per share. Adjusted EBITDA rose to $6.9 million from $6.2 million, and quarterly free cash flow turned positive at $1.6 million. Cash, short-term investments and restricted cash totaled $44.9 million, down from $62.9 million at year-end 2025.
The company raised 2026 revenue guidance to $270.0–$273.0 million from $265.0–$269.0 million and reiterated expectations for approximately $25.0 million in adjusted EBITDA and breakeven free cash flow.
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Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.2026 revenue guidance increased to $270.0–$273.0 million from $265.0–$269.0 million, representing 14%–16% growth over 2025.
- Moderate pointThird-quarter revenue rose 19% year over year to $72.7 million from $61.2 million.
- Moderate pointQuarterly net loss narrowed to $5.9 million from $11.8 million; loss per share improved to $0.25 from $0.50.
- Moderate pointQuarterly free cash flow reached $1.6 million, versus $3.4 million used a year earlier.
- Moderate pointQuarterly adjusted EBITDA increased to $6.9 million from $6.2 million a year earlier.
- Moderate pointNine-month operating cash flow reached $2.147 million, versus $15.199 million used in the comparable 2025 period.
13 minor points
- Minor pointU.S. quarterly revenue increased 19% year over year to $57.9 million.
- Minor pointInternational quarterly revenue increased 18% year over year to $14.8 million.
- Minor pointTrauma and Deformity quarterly revenue increased 19% year over year to $52.6 million.
- Minor pointScoliosis quarterly revenue increased 18% year over year to $19.2 million.
- Minor pointSports Medicine/Other quarterly revenue increased 2% year over year to $0.9 million.
- Minor pointQuarterly gross profit increased 19% to $54.0 million; gross margin remained at 74% year over year.
- Minor pointPNP Retrograde received FDA clearance and subsequently entered limited launch.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EBITDA expectation remains approximately $25.0 million, with breakeven free cash flow expected.
- Minor pointNine-month revenue increased to $202.530 million from $174.743 million in the comparable 2025 period.
- Minor pointNine-month net loss narrowed to $23.780 million from $29.545 million; loss per share improved to $0.99 from $1.26.
- Minor pointQuarterly impairment expense declined to $611,000 from $2.268 million a year earlier.
- Minor pointQuarterly restructuring expense was zero, compared with $2.294 million a year earlier.
- Minor pointQuarterly total other expense declined to $1.814 million from $2.470 million a year earlier.
Negative
- Moderate pointCash, short-term investments and restricted cash declined to $44.9 million from $62.9 million at December 31, 2025.
- Moderate pointQuarterly sales and marketing expenses increased 24% year over year to $23.1 million.
- Moderate pointQuarterly general and administrative expenses increased 10% year over year to $32.0 million.
- Minor pointQuarterly research and development expenses increased 6% year over year to $2.5 million.
- Minor pointQuarterly net interest expense increased to $2.617 million from $1.822 million a year earlier.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 set deployment remains expected at approximately $10.0 million.
News Explained
Nine-month free cash flow remained negative at $6,569 thousand through September 30, despite positive cash generation in the quarter.
The completed third-quarter report shows common shares issued at 26,115,126 on
Quarterly free cash flow was
Key Figures
- Quarterly revenue
- $72.7 million; up 19%
- Third quarter 2026, year-over-year
- Adjusted EBITDA
- $6.9 million
- Third quarter 2026, compared with $6.2 million in third quarter 2025
- Free cash flow
- $1.6 million generated
- Third quarter 2026, compared with $3.4 million used in third quarter 2025
- Net loss
- $5.9 million
- Third quarter 2026, compared with $11.8 million in third quarter 2025
- 2026 revenue guidance
- $270.0 million to $273.0 million
- Raised from prior range of $265.0 million to $269.0 million
Previous Earnings Reports
-
Raised 2026 revenue guidance to $265–$269 million alongside 15% year-over-year revenue growth.
-
Raised 2026 revenue guidance to $263.0–$267.0 million alongside 13% year-over-year revenue growth.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
adjusted ebitda financial
free cash flow financial
convertible note financial
intangible asset impairment financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Record Third Quarter 2026 Revenue of
WARSAW, Ind., Oct. 27, 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 third quarter ended September 30, 2026.
Third Quarter 2026 and Recent Business Highlights
- Helped nearly 42,000 children in the third quarter of 2026
- Generated new record high total revenue of
$72.7 million for the third quarter of 2026, up19% from$61.2 million in the third quarter of 2025; domestic revenue increased19% and international revenue increased18% in the quarter - Grew worldwide Trauma & Deformity revenue
19% in the third quarter of 2026 compared to the third quarter of 2025, and grew Scoliosis revenue18% in the third quarter of 2026 compared to the third quarter of 2025 - Achieved record adjusted EBITDA of
$6.9 million in the third quarter of 2026, compared to$6.2 million in the third quarter of 2025 - Generated free cash flow of
$1.6 million in the third quarter of 2026, a$5.0 million improvement as compared to$3.4 million of usage in the prior year period - Announced full market release of 3P™ Pediatric Plating Platform® Hip System, and the PediHip Rigid Brace
- Continued to expand the portfolio with multiple new products, including FDA clearance and subsequent limited launch of PNP Retrograde, the limited launch of OPSB® Knee 'TractorFIX, and the limited launch of 3P™ Pediatric Plating Platform® Small Mini
- Increased full year 2026 revenue guidance to
$270.0 million to$273.0 million from its prior range of$265.0 million to$269.0 million , representing growth of14% to16% compared to prior year
“In the third quarter, we continued to build on the momentum in our business, gaining share in Trauma and Deformity and Scoliosis globally, and continued substantial progress with our OPSB strategy. This quarter, we not only drove revenue growth, but we continued to improve profitability, and generated positive free cash flow. We remain confident in our ability to continue to drive these metrics forward," said David Bailey, President & CEO of OrthoPediatrics. "Our innovation super cycle is an important part of that opportunity, with a strong pipeline of new products coming over the next several years that are expected to deliver higher value and improved capital efficiency. We believe these launches will be an important driver of our financial performance as we bring new solutions to more surgeons and hospitals. There are still significant unmet needs in pediatric orthopedics, and we believe OrthoPediatrics is well positioned to capitalize on that opportunity. Our focus remains on growing the business, improving our operating performance, and achieving breakeven or better free cash flow on an annual basis in 2026 and beyond while continuing to deliver innovative solutions for children.”
Third Quarter 2026 Financial Results
Total revenue for the third quarter of 2026 was
Trauma and Deformity revenue for the third quarter of 2026 was
Gross profit for the third quarter of 2026 was
Total operating expenses for the third quarter of 2026 were
Sales and marketing expenses increased
Research and development expenses increased
General and administrative expenses increased
Intangible asset impairment recorded during the third quarter of 2026 was
Total other expense was
Net loss for the third quarter of 2026 was
Adjusted EBITDA for the third quarter of 2026 was
Weighted average basic and diluted shares outstanding for the three months ended September 30, 2026, was 24,153,621 shares.
As of September 30, 2026, cash, cash equivalents, short-term investments and restricted cash were
Full Year 2026 Financial Guidance
For the full year of 2026, the Company is increasing its revenue guidance to
Conference Call
OrthoPediatrics will host a conference call on Tuesday, October 27, 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 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 provided by (used in) operating activities" is cash flow from operations reduced by "Capital expenditures". Adjusted loss per share in this press release represents diluted loss per share on a GAAP basis, excluding intangible asset impairment, fair value adjustment of contingent consideration, 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 expense (income), net plus income tax charge (benefit), depreciation and amortization, intangible asset impairment, stock-based compensation expense, fair value adjustment of contingent consideration, restructuring charges, tariffs, 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 over 95 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)
| September 30, 2026 | December 31, 2025 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash | $ | 17,141 | $ | 19,556 | |||
| Restricted cash | 710 | 2,064 | |||||
| Short-term investments | 27,088 | 41,295 | |||||
| Accounts receivable - trade, net of allowances of | 59,543 | 53,838 | |||||
| Inventories, net | 141,864 | 133,790 | |||||
| Prepaid expenses and other current assets | 6,895 | 5,876 | |||||
| Total current assets | 253,241 | 256,419 | |||||
| Property and equipment, net | 46,941 | 49,555 | |||||
| Other assets: | |||||||
| Amortizable intangible assets, net | 61,668 | 64,802 | |||||
| Goodwill | 118,586 | 109,269 | |||||
| Other intangible assets | 12,200 | 12,909 | |||||
| Other non-current assets | 16,451 | 15,676 | |||||
| Total other assets | 208,905 | 202,656 | |||||
| Total assets | $ | 509,087 | $ | 508,630 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable - trade | $ | 24,485 | $ | 18,786 | |||
| Accrued compensation and benefits | 16,657 | 13,693 | |||||
| Current portion of long-term debt with affiliate | 174 | 170 | |||||
| Current portion of acquisition installment payable | 1,691 | 2,194 | |||||
| Other current liabilities | 12,625 | 11,354 | |||||
| Total current liabilities | 55,632 | 46,197 | |||||
| Long-term liabilities: | |||||||
| Long-term term loan | 48,560 | 48,189 | |||||
| Long-term convertible note | 48,961 | 48,486 | |||||
| Long-term debt with affiliate, net of current portion | 152 | 283 | |||||
| Other long-term debt, net of current portion | 515 | 2,862 | |||||
| Acquisition installment payable, net of current portion | 3,053 | 2,898 | |||||
| Deferred income taxes | 3,140 | 3,582 | |||||
| Other long-term liabilities | 9,724 | 9,537 | |||||
| Total long-term liabilities | 114,105 | 115,837 | |||||
| Total liabilities | 169,737 | 162,034 | |||||
| Stockholders' equity: | |||||||
| Common stock, | 7 | 6 | |||||
| Additional paid-in capital | 637,299 | 622,325 | |||||
| Accumulated deficit | (298,992 | ) | (275,212 | ) | |||
| Accumulated other comprehensive income (loss) | 1,036 | (523 | ) | ||||
| Total stockholders' equity | 339,350 | 346,596 | |||||
| Total liabilities and stockholders' equity | $ | 509,087 | $ | 508,630 | |||
ORTHOPEDIATRICS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In Thousands, Except Share and Per Share Data)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net revenue | $ | 72,661 | $ | 61,250 | $ | 202,530 | $ | 174,743 | |||||||
| Cost of revenue | 18,685 | 15,976 | 52,798 | 47,188 | |||||||||||
| Gross profit | 53,976 | 45,274 | 149,732 | 127,555 | |||||||||||
| Operating expenses: | |||||||||||||||
| Sales and marketing | 23,096 | 18,652 | 62,860 | 54,327 | |||||||||||
| General and administrative | 32,029 | 29,155 | 95,866 | 89,878 | |||||||||||
| Intangible asset impairment | 611 | 2,268 | 611 | 2,268 | |||||||||||
| Restructuring | — | 2,294 | 1 | 5,305 | |||||||||||
| Research and development | 2,465 | 2,333 | 7,021 | 6,843 | |||||||||||
| Total operating expenses | 58,201 | 54,702 | 166,359 | 158,621 | |||||||||||
| Operating loss | (4,225 | ) | (9,428 | ) | (16,627 | ) | (31,066 | ) | |||||||
| Other expense (income): | |||||||||||||||
| Interest expense, net | 2,617 | 1,822 | 7,248 | 4,064 | |||||||||||
| Fair value adjustment of contingent consideration | (814 | ) | — | (814 | ) | — | |||||||||
| Other expense (income), net | 11 | 648 | 765 | (5,705 | ) | ||||||||||
| Total other expense (income), net | 1,814 | 2,470 | 7,199 | (1,641 | ) | ||||||||||
| Net loss before income taxes | $ | (6,039 | ) | $ | (11,898 | ) | (23,826 | ) | (29,425 | ) | |||||
| Income tax (benefit) charge | (109 | ) | (125 | ) | (46 | ) | 120 | ||||||||
| Net loss | $ | (5,930 | ) | $ | (11,773 | ) | $ | (23,780 | ) | $ | (29,545 | ) | |||
| Weighted average common stock - basic and diluted | 24,153,621 | 23,565,779 | 23,964,171 | 23,420,158 | |||||||||||
| Net loss per share – basic and diluted | $ | (0.25 | ) | $ | (0.50 | ) | $ | (0.99 | ) | $ | (1.26 | ) | |||
ORTHOPEDIATRICS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)(In Thousands)
| Nine Months Ended September 30, | |||||||
| 2026 | 2025 | ||||||
| OPERATING ACTIVITIES | |||||||
| Net loss | $ | (23,780 | ) | $ | (29,545 | ) | |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
| Goodwill and other intangible asset impairments | 611 | 4,163 | |||||
| Depreciation and amortization | 17,048 | 15,517 | |||||
| Stock-based compensation | 12,592 | 13,362 | |||||
| Fair value adjustment of contingent consideration | (814 | ) | — | ||||
| Accretion of acquisition installment payable | 365 | 105 | |||||
| Deferred income taxes | (393 | ) | 120 | ||||
| Non-cash other | 695 | (88 | ) | ||||
| Changes in certain operating assets and liabilities, net of acquisitions: | |||||||
| Accounts receivable - trade | (4,717 | ) | (8,270 | ) | |||
| Inventories | (4,922 | ) | (7,893 | ) | |||
| Prepaid expenses and other current assets | (579 | ) | 176 | ||||
| Accounts payable - trade | 5,299 | (1,961 | ) | ||||
| Accrued expenses and other liabilities | 1,816 | 790 | |||||
| Other | (1,074 | ) | (1,675 | ) | |||
| Net cash provided by (used in) operating activities | 2,147 | (15,199 | ) | ||||
| INVESTING ACTIVITIES | |||||||
| Other acquisitions, including clinics, net of cash acquired | (8,410 | ) | (8,852 | ) | |||
| Sale of short-term marketable securities | 15,000 | — | |||||
| Investment in private companies and purchases of licenses | (810 | ) | (2,007 | ) | |||
| Purchase of short-term marketable securities | — | (15,000 | ) | ||||
| Purchases of property and equipment | (8,716 | ) | (10,511 | ) | |||
| Net cash used in investing activities | (2,936 | ) | (36,370 | ) | |||
| FINANCING ACTIVITIES | |||||||
| Proceeds from issuance of debt | — | 25,000 | |||||
| Payment on debt issuance costs | (289 | ) | — | ||||
| Payments on mortgage notes | (127 | ) | (119 | ) | |||
| Payments on acquisition notes | (2,464 | ) | (489 | ) | |||
| Net cash (used in) provided by financing activities | (2,880 | ) | 24,392 | ||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (100 | ) | 284 | ||||
| NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (3,769 | ) | (26,893 | ) | |||
| Cash, cash equivalents and restricted cash, beginning of year | $ | 21,620 | $ | 45,777 | |||
| Cash, cash equivalents and restricted cash, end of period | $ | 17,851 | $ | 18,884 | |||
| 2026 | 2025 | ||||||
| SUPPLEMENTAL DISCLOSURES | |||||||
| Cash paid for interest | $ | 5,646 | $ | 4,562 | |||
| Transfer of instruments between property and equipment and inventory | $ | 2,611 | $ | 1,881 | |||
| Right-of-use assets obtained in exchange for lease liabilities | $ | 2,838 | $ | 4,812 | |||
| Issuance of common shares to settle an obligation with a vendor | $ | — | $ | 1,261 | |||
| Issuance of common shares for MedTech installment | $ | 2,398 | $ | 226 | |||
| Issuance of common shares in connection with acquisitions | $ | 1,656 | $ | — | |||
| Issuance of common shares in connection with Boston O&P acquisition | $ | — | $ | 233 | |||
| Capital contribution associated with reclassification of MedTech liability to equity | $ | — | $ | 2,062 | |||
ORTHOPEDIATRICS CORP.
NET REVENUE BY GEOGRAPHY AND PRODUCT CATEGORY
(Unaudited)
(In Thousands)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
| Product sales by geographic location: | 2026 | 2025 | 2026 | 2025 | |||||||
| U.S. | $ | 57,890 | $ | 48,718 | $ | 157,990 | $ | 137,757 | |||
| International | 14,771 | 12,532 | 44,540 | 36,986 | |||||||
| Total | $ | 72,661 | $ | 61,250 | $ | 202,530 | $ | 174,743 | |||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
| Product sales by category: | 2026 | 2025 | 2026 | 2025 | |||||||
| Trauma and deformity | $ | 52,623 | $ | 44,143 | $ | 148,300 | $ | 123,665 | |||
| Scoliosis | 19,172 | 16,261 | 51,490 | 48,447 | |||||||
| Sports medicine/other | 866 | 846 | 2,740 | 2,631 | |||||||
| Total | $ | 72,661 | $ | 61,250 | $ | 202,530 | $ | 174,743 | |||
ORTHOPEDIATRICS CORP.
RECONCILIATION OF NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
TO FREE CASH FLOW
(Unaudited)
(In Thousands)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net cash provided by (used in) operating activities (GAAP) | $ | 4,506 | $ | (581 | ) | $ | 2,147 | $ | (15,199 | ) | ||||||
| Less: Capital expenditures | (2,911 | ) | (2,839 | ) | (8,716 | ) | (10,511 | ) | ||||||||
| Free cash flow (non-GAAP) | $ | 1,595 | $ | (3,420 | ) | $ | (6,569 | ) | $ | (25,710 | ) | |||||
ORTHOPEDIATRICS CORP.
RECONCILIATION OF NET LOSS TO NON-GAAP ADJUSTED EBITDA
(Unaudited)
(In Thousands)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net loss | $ | (5,930 | ) | $ | (11,773 | ) | $ | (23,780 | ) | $ | (29,545 | ) | |||
| Interest expense, net | 2,617 | 1,822 | 7,248 | 4,064 | |||||||||||
| Other expense (income), net | 11 | 648 | 765 | (5,705 | ) | ||||||||||
| Income tax charge (benefit) | (109 | ) | (125 | ) | (46 | ) | 120 | ||||||||
| Depreciation and amortization | 5,621 | 5,299 | 17,048 | 15,517 | |||||||||||
| Intangible asset impairment | 611 | 2,268 | 611 | 2,268 | |||||||||||
| Stock-based compensation | 4,419 | 4,251 | 12,592 | 13,362 | |||||||||||
| Fair value adjustment of contingent consideration | (814 | ) | — | (814 | ) | — | |||||||||
| Restructuring charges | — | 2,294 | 1 | 5,305 | |||||||||||
| Tariffs | 178 | 306 | 570 | 954 | |||||||||||
| European Union Medical Device Regulation fees increase | — | — | — | 109 | |||||||||||
| Acquisition-related costs | 342 | 943 | 1,691 | 2,532 | |||||||||||
| Minimum purchase commitment cost | — | 261 | — | 960 | |||||||||||
| Adjusted EBITDA | $ | 6,946 | $ | 6,194 | $ | 15,886 | $ | 9,941 | |||||||
ORTHOPEDIATRICS CORP.
RECONCILIATION OF DILUTED LOSS PER SHARE TO NON-GAAP ADJUSTED DILUTED LOSS PER SHARE
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Loss per share, diluted (GAAP) | $ | (0.25 | ) | $ | (0.50 | ) | $ | (0.99 | ) | $ | (1.26 | ) | |||
| Intangible asset impairment | 0.03 | 0.10 | 0.03 | 0.10 | |||||||||||
| Fair value adjustment of contingent consideration | (0.03 | ) | — | (0.03 | ) | — | |||||||||
| Restructuring charges | — | 0.10 | — | 0.23 | |||||||||||
| Tariffs | 0.01 | 0.01 | 0.02 | 0.04 | |||||||||||
| European Union Medical Device Regulation fees increase | — | — | — | — | |||||||||||
| Acquisition-related costs | 0.01 | 0.04 | 0.07 | 0.11 | |||||||||||
| Minimum purchase commitment cost | — | 0.01 | — | 0.04 | |||||||||||
| Loss per share, diluted (non-GAAP) | $ | (0.23 | ) | $ | (0.24 | ) | $ | (0.90 | ) | $ | (0.74 | ) | |||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were OrthoPediatrics KIDS third-quarter 2026 financial results?
OrthoPediatrics reported $72.7 million in revenue, up 19% year over year, and a net loss of $5.9 million, or $0.25 per basic and diluted share. Adjusted EBITDA was $6.9 million, compared with $6.2 million a year earlier, and free cash flow was positive at $1.6 million.
What is OrthoPediatrics KIDS updated 2026 guidance?
OrthoPediatrics expects 2026 revenue of $270.0 million to $273.0 million, up from its prior $265.0 million to $269.0 million range. The new range represents 14% to 16% growth over 2025. The company reiterated expectations for approximately $25.0 million in adjusted EBITDA, approximately $10.0 million in annual set deployment and breakeven free cash flow.
Why did OrthoPediatrics free cash flow improve in the third quarter of 2026?
OrthoPediatrics attributed the improvement to higher adjusted EBITDA, lower set deployment and improved working capital metrics. Quarterly free cash flow improved by $5.0 million, moving from $3.4 million used in the prior-year quarter to $1.6 million generated.
Why did OrthoPediatrics record a third-quarter 2026 impairment charge?
The ApiFix and MedTech trademark assets had estimated fair values below their carrying values in the annual impairment analysis. OrthoPediatrics recorded a $611,000 intangible asset impairment charge to reduce their carrying amounts to estimated fair value.