OrthoPediatrics (NASDAQ: KIDS) lifts 2026 outlook after strong Q1
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
OrthoPediatrics Corp. reported strong first quarter 2026 results, combining double‑digit growth with improved profitability metrics. Revenue reached $59.4 million, up 13% from $52.4 million a year earlier, driven by 14% growth in Trauma & Deformity products and 13% growth in Scoliosis. U.S. revenue rose 11% to $45.3 million, while international revenue grew 22% to $14.1 million, with gross margin steady at 73%.
Operating loss narrowed to $8.3 million, and although net loss was $10.7 million, roughly flat year over year, adjusted EBITDA improved to a positive $2.2 million from a $0.4 million loss. Free cash flow usage improved to $5.0 million from $8.4 million, helped by higher adjusted EBITDA and better working capital. The company raised its 2026 revenue outlook to a range of $263.0 million to $267.0 million, implying 11% to 13% growth, and reiterated expectations for about $25.0 million of adjusted EBITDA and breakeven free cash flow for the full year.
Positive
- Revenue growth and profitability inflection: Q1 2026 revenue rose 13% to $59.4 million, international revenue grew 22%, adjusted EBITDA turned positive at $2.2 million, and free cash flow usage improved by 40% year over year.
- Raised 2026 outlook: Full‑year 2026 revenue guidance increased to $263.0–$267.0 million, representing 11%–13% growth, with management reiterating targets for approximately $25.0 million of adjusted EBITDA and breakeven free cash flow.
Negative
- None.
Insights
Double-digit growth, positive adjusted EBITDA and higher guidance signal operational momentum.
OrthoPediatrics delivered 13% revenue growth to $59.4M in Q1 2026, with balanced contributions from Trauma & Deformity and Scoliosis. International sales rose 22%, showing the pediatric orthopedic franchise is scaling beyond the U.S. while maintaining a solid 73% gross margin.
Profitability metrics improved as adjusted EBITDA turned positive at $2.2M versus a loss a year ago, and free cash flow usage narrowed to $5.0M. Operating expenses grew only 5%, indicating some leverage as revenue expanded. However, GAAP net loss remained $10.7M, so the path to sustained profitability still depends on execution.
Management modestly raised full‑year 2026 revenue guidance to $263M–$267M (11–13% growth) and reiterated targets for about $25M in adjusted EBITDA and breakeven free cash flow. Future quarterly updates will show how consistently they convert this growth into cash generation while funding clinics, product launches and international expansion.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 revenue: $59.4M
U.S. revenue: $45.3M
International revenue: $14.1M
+5 more
8 metrics
Q1 2026 revenue
$59.4M
Net revenue for the three months ended March 31, 2026; up 13% year-over-year
U.S. revenue
$45.3M
Q1 2026 U.S. net revenue; 11% growth and 76% of total revenue
International revenue
$14.1M
Q1 2026 international net revenue; 22% year-over-year increase
Gross margin
73%
Q1 2026 gross profit margin, consistent with prior year
Adjusted EBITDA
$2.2M
Non-GAAP adjusted EBITDA in Q1 2026 versus $(0.4)M in Q1 2025
Net loss
$10.7M
GAAP net loss for Q1 2026, similar to Q1 2025
2026 revenue guidance
$263.0M–$267.0M
Full-year 2026 revenue outlook; 11%–13% growth over 2025
Cash and investments
$50.9M
Cash, cash equivalents, short-term investments and restricted cash as of March 31, 2026
Key Terms
adjusted EBITDA, free cash flow, Trauma and Deformity, European Union Medical Device Regulation, +1 more
5 terms
adjusted EBITDA financial
"Achieved adjusted EBITDA of $2.2 million in the first quarter of 2026, compared to ($0.4) million in the first quarter of 2025"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
free cash flow financial
"Free cash flow used in the first quarter of 2026 was $5.0 million, a 40% improvement as compared to $8.4 million used in the first quarter of 2025"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Trauma and Deformity financial
"Trauma and Deformity revenue for the first quarter of 2026 was $43.0 million, a 14% increase compared to $37.9 million for the same period last year"
European Union Medical Device Regulation regulatory
"European Union Medical Device Regulation fees increase"
A set of European rules that governs how medical devices are designed, tested, labeled and sold in the European Union; think of it as building codes for medical products that set safety and performance standards and require official review before devices reach patients. Investors care because these rules determine which products can be sold, how long approvals take, and how much companies must spend to comply—factors that affect revenue, timelines and risk.
non-GAAP financial
"This press release includes certain non-GAAP financial measures, such as free cash flow, adjusted diluted (loss) earnings per share and Adjusted EBITDA"
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
Earnings Snapshot
Revenue: $59.4M · Guidance included
Q1 2026
Revenue
$59.4M
+13% YoY
U.S. revenue
$45.3M
+11% YoY
International revenue
$14.1M
+22% YoY
Adjusted EBITDA
$2.2M
from $(0.4)M in Q1 2025
Net loss per share (GAAP)
($0.45)
vs. ($0.46) in Q1 2025
Free cash flow
($5.0M)
improved from ($8.4M) in Q1 2025
Guidance
2026 revenue $263.0M–$267.0M (11%–13% growth), approximately $25.0M adjusted EBITDA and breakeven free cash flow.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
______________________
Date of Report (Date of earliest event reported): April 30, 2026
| (Exact name of registrant as specified in its charter) | ||
| (State or other jurisdiction of incorporation) | ||
| (Commission File Number) | (I.R.S. Employer Identification Number) | ||||
| (Address of principal executive offices) | (Zip Code) | ||||
Registrant’s telephone number, including area code: (574 ) 268-6379
| Not Applicable | ||
| (Former name or former address, if changed since last report) | ||
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 under the Securities Act (17 CFR 230.405) or Rule 12b-2 under the Exchange Act (17 CFR 240.12b-2).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ¨
Item 2.02. Results of Operations and Financial Condition.
On April 30, 2026, OrthoPediatrics Corp. issued a press release announcing its earnings for the quarter ended March 31, 2026 and making other disclosures. The press release (including the accompanying unaudited condensed consolidated financial statements as of and for the quarter ended March 31, 2026, and other financial data) is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
The information in this Item 2.02, including the information incorporated by reference herein from Exhibit 99.1, is furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
| (d) | Exhibits | |||||||
| Exhibit No. | Description | |||||||
99.1 | Press release dated April 30, 2026 issued by OrthoPediatrics Corp. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
* * * * * *
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| OrthoPediatrics Corp. | ||||||||
| Date: April 30, 2026 | By: | /s/ Daniel J. Gerritzen | ||||||
| Daniel J. Gerritzen, General Counsel and Secretary | ||||||||
- 2 -
OrthoPediatrics Corp. Reports First Quarter 2026 Financial Results and Increases 2026 Financial Guidance
First Quarter 2026 Revenue Increased 13% Year-over-Year
WARSAW, Ind., April 30, 2026 -- 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, up 13% from $52.4 million in the first quarter of 2025; domestic revenue increased 11% and international revenue increased 22% in the quarter
•Grew worldwide Trauma & Deformity revenue 14% and worldwide Scoliosis revenue 13% 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 of 11% to 13% compared to prior year
David Bailey, President & CEO of OrthoPediatrics, commented, “We delivered a strong start to 2026 with 13% first quarter revenue growth and significant improvement in adjusted EBITDA and free cash flow, reflecting solid execution across the business. Momentum built throughout the quarter and was driven by broad-based strength, including robust international performance and OPSB growth supported by new products and clinic expansion. We are successfully scaling OPSB, taking share in our surgical business, and advancing innovative product launches, while improving profitability and remaining on track to meet our adjusted EBITDA goals. Looking ahead, we are entering a highly compelling phase, underpinned by a multi-year product super cycle expected to drive higher ASPs, margin expansion, and improved returns, while enhancing our ability to deepen hospital partnerships, and strengthen our leadership in pediatric care.”
First Quarter 2026 Financial Results
Total revenue for the first quarter of 2026 was $59.4 million, a 13% increase compared to $52.4 million for the same period last year. U.S. revenue for the first quarter of 2026 was $45.3 million, an 11% increase compared to $40.9 million for the same period last year, representing 76% of total revenue. The increase in revenue in the first quarter of 2026 was driven primarily by organic growth in Trauma and Deformity, Scoliosis and OPSB products. International revenue for the first quarter of 2026 was $14.1 million, a 22% increase compared to $11.5 million for the same period last year, representing 24% of total revenue. Growth in the quarter was primarily driven by increased procedure volumes and limited set sales.
Trauma and Deformity revenue for the first quarter of 2026 was $43.0 million, a 14% increase compared to $37.9 million for the same period last year. This growth was driven primarily by Trauma, Pega products, Ex-Fix, and OPSB. Scoliosis revenue was $15.4 million, a 13% increase compared to $13.7 million for the first quarter of 2025. The growth was driven by increased sales of Response and VerteGlide systems, and revenue generated from 7D technology. Sports Medicine/Other revenue for the first quarter of 2026 was $0.9 million, which stayed consistent year over year.
Gross profit for the first quarter of 2026 was $43.4 million, a 13% increase compared to $38.3 million for the same period last year. Gross profit margin for the first quarter of 2026 was 73%, which stayed consistent year over year.
Total operating expenses for the first quarter of 2026 were $51.7 million, a 5% increase compared to $49.2 million for the same period last year. The increase was mainly driven by the incremental personnel required to support the ongoing growth of the Company, including increased non-cash stock compensation.
Sales and marketing expenses increased $1.9 million, or 11%, to $18.5 million in the first quarter of 2026. The increase was driven primarily by increased sales commission expenses and an overall increase in volume of units sold.
Research and development expenses decreased $0.1 million, or 5%, to $2.2 million in the first quarter of 2026. The decrease was driven primarily due to the timing of product development during the first quarter of 2026.
General and administrative expenses increased $0.7 million, or 2%, to $31.0 million in the first quarter of 2026. The increase was primarily due to the additional personnel supporting clinic expansions and small-scale acquisitions, partially offset by savings being realized from prior restructuring actions.
Total other expense was $2.5 million for the first quarter of 2026, compared to other income of $0.5 million for the same period last year. The increase was primarily driven by a decrease in foreign exchange gain.
Net loss for the first quarter of 2026 was $10.7 million, compared to $10.7 million for the same period last year. Net loss per share for the period was $0.45 per basic and diluted share, compared to $0.46 per basic and diluted share for the same period last year.
Adjusted EBITDA for the first quarter of 2026 was $2.2 million as compared to a loss of $0.4 million for the first quarter of 2025.
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 $50.9 million compared to $62.9 million as of December 31, 2025. Free cash flow used in the first quarter of 2026 was $5.0 million, a 40% improvement as compared to $8.4 million used in the first quarter of 2025. Increased adjusted EBITDA, lower sets deployed and improved working capital metrics all contributed to the year over year improvement.
Full Year 2026 Financial Guidance
For the full year of 2026, the Company increasing its revenue guidance of $263.0 million to $267.0 million from its prior range of $262.0 million to $266.0 million, representing growth of 11% to 13% over 2025 revenue. The Company reiterated it expects annual set deployment to be approximately $10.0 million and expects to generate approximately $25.0 million of adjusted EBITDA for full year 2026, and breakeven free cash flow in 2026.
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 $1,615 and $1,145, 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, $0.00025 par value; 50,000,000 shares authorized; 25,604,900 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) | |||||||
FAQ
How did OrthoPediatrics Corp. (KIDS) perform in Q1 2026?
OrthoPediatrics grew Q1 2026 revenue 13% to $59.4 million, up from $52.4 million a year earlier. Growth was broad-based across Trauma & Deformity and Scoliosis, with U.S. revenue up 11% and international revenue up 22%, while gross margin held steady at 73%.
Did OrthoPediatrics Corp. improve profitability in Q1 2026?
Yes. OrthoPediatrics generated adjusted EBITDA of $2.2 million in Q1 2026 versus a $0.4 million loss last year. Operating loss narrowed, and free cash flow usage improved to $5.0 million from $8.4 million, although GAAP net loss remained $10.7 million.
What revenue and earnings guidance did OrthoPediatrics (KIDS) give for 2026?
For 2026, OrthoPediatrics raised revenue guidance to $263.0–$267.0 million, implying 11%–13% growth over 2025. The company also reiterated expectations for approximately $25.0 million of adjusted EBITDA and breakeven free cash flow for the full year.
How strong were OrthoPediatrics’ U.S. and international sales in Q1 2026?
U.S. revenue reached $45.3 million in Q1 2026, up 11% from $40.9 million, representing 76% of total sales. International revenue was $14.1 million, up 22% from $11.5 million, accounting for the remaining 24% of company revenue.
What were OrthoPediatrics’ key non-GAAP metrics like free cash flow and adjusted EPS?
Free cash flow in Q1 2026 was negative $5.0 million, an improvement from negative $8.4 million a year earlier. Non-GAAP diluted loss per share was $0.42, compared with a GAAP diluted loss per share of $0.45 in the same period.
What does OrthoPediatrics’ balance sheet look like after Q1 2026?
As of March 31, 2026, OrthoPediatrics held $50.9 million in cash, cash equivalents, short-term investments and restricted cash. Total assets were $502.2 million, total liabilities were $163.5 million, and stockholders’ equity stood at $338.7 million.