OrthoPediatrics (Nasdaq: KIDS) lifts 2026 guidance after strong Q2 growth
Rhea-AI Filing Summary
OrthoPediatrics Corp. reported record second-quarter 2026 net revenue of $70.5 million, up 15% from $61.1 million a year earlier, driven by 26% growth in Trauma and Deformity products and 22% international revenue growth. U.S. revenue was $54.8 million and international revenue $15.7 million. Gross profit rose to $52.4 million with margin improving to 74% from 72%.
Adjusted EBITDA reached a record $6.8 million versus $4.1 million in 2025, while net loss was $7.2 million, or $0.30 per share, similar to the prior year. Free cash flow usage in the quarter improved to $3.1 million from $13.9 million. The company raised full-year 2026 revenue guidance to $265.0–$269.0 million, reiterated expected adjusted EBITDA of about $25.0 million, and continues to target breakeven free cash flow in 2026.
Positive
- Q2 2026 net revenue reached $70.5M, up 15% year-over-year, with 26% growth in Trauma and Deformity products and 22% international revenue growth.
- Profitability metrics improved, with adjusted EBITDA increasing to $6.8M from $4.1M and quarterly free cash flow usage improving by $10.8M, supporting higher 2026 revenue guidance of $265.0–$269.0M.
Negative
- None.
Filing Explained
As of June 30, issued shares were 26,111,426 and total cash resources were $47.9 million; reported share issuance reduces existing holders’ percentage ownership.
As an Item 2.02 Form 8-K, this filing furnishes the company’s quarterly results for the quarter ended
The balance sheet reports 26,111,426 issued common shares at
Those issuances add shares to the total share count and therefore reduce an existing holder’s percentage ownership absent offsetting changes.
The filing reports
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
Net revenue Q2 2026: $70,508 thousand
Revenue growth Q2 2026: 15%
Net loss Q2 2026: $7,163 thousand
+4 more
7 metrics
Net revenue Q2 2026
$70,508 thousand
Three months ended June 30, 2026 net revenue
Revenue growth Q2 2026
15%
Increase in Q2 2026 net revenue vs Q2 2025
Net loss Q2 2026
$7,163 thousand
Net loss for the three months ended June 30, 2026
Adjusted EBITDA Q2 2026
$6,776 thousand
Non-GAAP adjusted EBITDA for the quarter ended June 30, 2026
Free cash flow Q2 2026
$(3,117) thousand
Non-GAAP free cash flow for the three months ended June 30, 2026
2026 revenue guidance
$265.0–$269.0 million
Full-year 2026 net revenue outlook
Liquidity June 30, 2026
$47.9 million
Cash, cash equivalents, short-term investments and restricted cash
Key Terms
Adjusted EBITDA, free cash flow, European Union Medical Device Regulation, acquisition installment payable, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA for the second quarter of 2026 was $6.8 million"
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 second quarter of 2026 was $3.1 million"
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.
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.
acquisition installment payable financial
"Accretion of acquisition installment payable | 220"
convertible note financial
"Long-term convertible note | 48,803"
A convertible note is a type of loan that a company gets from investors, which can later be turned into company shares instead of being paid back in cash. It matters because it helps startups raise money quickly without setting a fixed value for the company right away, making it easier to grow and attract investors.
Earnings Snapshot
Net revenue Q2 2026: $70.5 million · Guidance included
Quarter ended June 30, 2026
Net revenue Q2 2026
$70.5 million
up 15% from $61.1 million in Q2 2025
Net loss Q2 2026
$(7.2) million
compared to $(7.1) million in Q2 2025
Adjusted EBITDA Q2 2026
$6.8 million
up from $4.1 million in Q2 2025
Gross margin Q2 2026
74%
increased from 72% in Q2 2025
Guidance
For 2026, the company raised revenue guidance to $265.0–$269.0 million, expects adjusted EBITDA of approximately $25.0 million, and targets breakeven free cash flow.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How much revenue did OrthoPediatrics (KIDS) generate in Q2 2026?
OrthoPediatrics generated $70.5 million in net revenue in Q2 2026, an increase of 15% from $61.1 million in Q2 2025, driven mainly by Trauma and Deformity products and stronger international sales.
Was OrthoPediatrics (KIDS) profitable in the second quarter of 2026?
OrthoPediatrics reported a net loss of $7.2 million in Q2 2026, or $0.30 per share, similar to the $7.1 million loss in Q2 2025, while adjusted EBITDA improved to $6.8 million from $4.1 million.
How did OrthoPediatrics (KIDS) segment revenues perform in Q2 2026?
In Q2 2026, Trauma and Deformity revenue was $52.6 million, up 26%, Scoliosis revenue was $16.9 million, down 9%, and Sports Medicine/Other revenue was $1.0 million, up 10% versus Q2 2025.
What 2026 financial guidance did OrthoPediatrics (KIDS) provide?
For 2026, OrthoPediatrics raised revenue guidance to $265.0–$269.0 million, representing 12–14% growth, and reiterated expectations for approximately $25.0 million in adjusted EBITDA and breakeven free cash flow.
How did free cash flow and cash balances trend for OrthoPediatrics (KIDS)?
Q2 2026 free cash flow usage improved to $3.1 million from $13.9 million a year earlier. As of June 30, 2026, cash, cash equivalents, short-term investments and restricted cash totaled $47.9 million.
What were OrthoPediatrics (KIDS) U.S. and international revenues in Q2 2026?
In Q2 2026, U.S. revenue was $54.8 million, up 14% year-over-year, representing 78% of total revenue, while international revenue was $15.7 million, up 22%, representing 22% of total revenue.
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): August 4, 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 August 4, 2026, OrthoPediatrics Corp. issued a press release announcing its earnings for the quarter ended June 30, 2026 and making other disclosures. The press release (including the accompanying unaudited condensed consolidated financial statements as of and for the quarter ended June 30, 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 August 4, 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: August 4, 2026 | By: | /s/ Daniel J. Gerritzen | ||||||
| Daniel J. Gerritzen, General Counsel and Secretary | ||||||||
- 2 -
OrthoPediatrics Corp. Reports Second Quarter 2026 Financial Results and Increases 2026 Financial Guidance
Second Quarter 2026 Revenue Surpasses $70 million for the First Time in Company History, and Increased 15% Year-over-Year
WARSAW, Ind., August 4, 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 second quarter ended June 30, 2026.
Second Quarter 2026 and Business Highlights
•Helped a record of nearly 46,000 children in the second quarter of 2026
•Generated new record high total revenue of $70.5 million for the second quarter of 2026, up 15% from $61.1 million in the second quarter of 2025; domestic revenue increased 14% and international revenue increased 22% in the quarter
•Grew worldwide Trauma & Deformity revenue 26% in the second quarter of 2026 compared to the second quarter of 2025
•Achieved record adjusted EBITDA of $6.8 million in the second quarter of 2026, compared to $4.1 million in the second quarter of 2025
•Reduced second quarter 2026 free cash flow usage by $10.8 million or 78% as compared to the same period in the prior year
•Announced an exclusive distribution agreement with OSSIO, Inc. (“OSSIO”) that brings U.S. children’s hospitals nationwide a bio-integrative, metal-free fixation technology ideally suited for treatment of fractures and deformities in pediatric patients
•Increased full year 2026 revenue guidance to $265.0 million to $269.0 million from its prior range of $263.0 million to $267.0 million, representing growth of 12% to 14% compared to prior year
David Bailey, President & CEO of OrthoPediatrics, commented, “We have reached the beginning of an inflection point in our business as our second quarter results demonstrate our ability to simultaneously drive stronger revenue growth, increase profitability, and improve free cash flow. These metrics are expected to continue to improve driven by our innovation super cycle of higher value and more capital efficient products launched over the coming years. Our success in the quarter was highlighted by share gains in our Trauma and Deformity implant business, solid international growth, and continued execution of our OPSB strategy. While scoliosis implant sales were strong and the summer surgery schedule is encouraging, the timing of related capital placements and international set sales in the quarter negatively impacted scoliosis growth. This quarter’s results reinforce our confidence in our core business, and we are excited by the opportunity for continued improvement of our operating profile, including achieving cash-flow breakeven in 2026 and further supporting our position as the definitive market leader in pediatric orthopedics.”
Second Quarter 2026 Financial Results
Total revenue for the second quarter of 2026 was $70.5 million, a 15% increase compared to $61.1 million for the same period last year. U.S. revenue for the second quarter of 2026 was $54.8 million, a 14% increase compared to $48.1 million for the same period last year, representing 78% of total revenue. The increase in revenue in the second quarter of 2026 was driven primarily by growth in global Trauma and Deformity and OPSB products. International revenue for the second quarter of 2026 was $15.7 million, a 22% increase compared to $12.9 million for the same period last year, representing 22% of total revenue. Growth in the quarter was primarily driven by increased procedure volumes and limited set sales.
Trauma and Deformity revenue for the second quarter of 2026 was $52.6 million, a 26% increase compared to $41.7 million for the same period last year. This growth was driven primarily by numerous product lines, specifically our Cannulated Screws, PNP Femur, PediPlates, Pega systems, the addition of 3P Hip, as well as continued OPSB growth. Scoliosis revenue was $16.9 million, a 9% decrease compared to $18.5 million for the second quarter of 2025. The decrease was due to decreased revenue generated from 7D Technology as well as lower set sales to our international stocking distributors. These declines were partially offset by increased Response fusion revenue as well as the addition of Verteglide. Sports Medicine/Other revenue for the second quarter of 2026 was $1.0 million, a 10% increase compared to $0.9 million for the same period last year.
Gross profit for the second quarter of 2026 was $52.4 million, a 19% increase compared to $44.0 million for the same period last year. Gross profit margin for the second quarter of 2026 increased to 74% from 72% for the same period last year, primarily due to sales volume.
Total operating expenses for the second quarter of 2026 were $56.4 million, a 3% increase compared to $54.7 million for the same period last year. The increase was mainly driven by increased sales commission expense as well as additional personnel supporting clinic expansions and small-scale acquisitions.
Sales and marketing expenses increased $2.2 million, or 11%, to $21.3 million in the second 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 increased $0.1 million, or 8%, to $2.3 million in the second quarter of 2026. The increase was primarily due to ongoing product development during the second quarter of 2026.
General and administrative expenses increased $2.4 million, or 8%, to $32.8 million in the second quarter of 2026. The increase was primarily due to the additional personnel supporting clinic expansions and small-scale acquisitions.
Total other expense was $2.9 million for the second quarter of 2026, compared to other income of $3.6 million for the same period last year. The change was primarily driven by additional interest expense in 2026 compared to 2025, as well as changes in foreign exchange gains. Foreign exchange losses were primarily driven by changes in the Euro exchange rate, as the Euro declined in value during the three months ended June 30, 2026, compared to Euro appreciation for the three months ended June 30, 2025.
Net loss for the second quarter of 2026 was $7.2 million, compared to $7.1 million for the same period last year. Net loss per share for the period was $0.30 per basic and diluted share, compared to $0.30 per basic and diluted share for the same period last year.
Adjusted EBITDA for the second quarter of 2026 was $6.8 million as compared to $4.1 million for the second quarter of 2025.
Weighted average basic and diluted shares outstanding for the three months ended June 30, 2026, was 24,048,690 shares.
As of June 30, 2026, cash, cash equivalents, short-term investments and restricted cash were $47.9 million compared to $62.9 million as of December 31, 2025. Free cash flow used in the second quarter of 2026 was $3.1 million, a 78% improvement as compared to $13.9 million used in the second 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 is increasing its revenue guidance to $265.0 million to $269.0 million from its prior range of $263.0 million to $267.0 million, representing growth of 12% to 14% over 2025 revenue. The Company reiterated it expects annual set deployment to be approximately $10.0 million, expects adjusted EBITDA of approximately $25.0 million, and expects to achieve breakeven free cash flow in 2026.
Conference Call
OrthoPediatrics will host a conference call on Tuesday, August 4, 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 reduced 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 expense (income), income tax charge, depreciation and amortization, stock-based compensation expense, 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 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)
| June 30, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
Cash | $ | 17,001 | $ | 19,556 | |||||||
| Restricted cash | 2,054 | 2,064 | |||||||||
| Short-term investments | 28,878 | 41,295 | |||||||||
Accounts receivable - trade, net of allowances of $1,680 and $1,501, respectively | 60,951 | 53,838 | |||||||||
Inventories, net | 137,567 | 133,790 | |||||||||
Prepaid expenses and other current assets | 6,057 | 5,876 | |||||||||
Total current assets | 252,508 | 256,419 | |||||||||
| Property and equipment, net | 48,552 | 49,555 | |||||||||
| Other assets: | |||||||||||
| Amortizable intangible assets, net | 63,745 | 64,802 | |||||||||
Goodwill | 118,461 | 109,269 | |||||||||
Other intangible assets | 12,819 | 12,909 | |||||||||
Other non-current assets | 15,303 | 15,676 | |||||||||
Total other assets | 210,328 | 202,656 | |||||||||
| Total assets | $ | 511,388 | $ | 508,630 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Current liabilities: | |||||||||||
Accounts payable - trade | $ | 22,239 | $ | 18,786 | |||||||
Accrued compensation and benefits | 15,590 | 13,693 | |||||||||
Current portion of long-term debt with affiliate | 172 | 170 | |||||||||
Current portion of acquisition installment payable | 1,103 | 2,194 | |||||||||
Other current liabilities | 13,748 | 11,354 | |||||||||
Total current liabilities | 52,852 | 46,197 | |||||||||
| Long-term liabilities: | |||||||||||
Long-term loan | 48,436 | 48,189 | |||||||||
Long-term convertible note | 48,803 | 48,486 | |||||||||
Long-term debt with affiliate, net of current portion | 196 | 283 | |||||||||
| Other long-term debt, net of current portion | 2,022 | 2,862 | |||||||||
Acquisition installment payable, net of current portion | 2,962 | 2,898 | |||||||||
| Deferred income taxes | 3,311 | 3,582 | |||||||||
| Other long-term liabilities | 9,192 | 9,537 | |||||||||
Total long-term liabilities | 114,922 | 115,837 | |||||||||
| Total liabilities | 167,774 | 162,034 | |||||||||
Stockholders' equity: | |||||||||||
Common stock, $0.00025 par value; 50,000,000 shares authorized; 26,111,426 shares and 25,093,792 shares issued as of June 30, 2026 and December 31, 2025, respectively | 7 | 6 | |||||||||
Additional paid-in capital | 633,437 | 622,325 | |||||||||
Accumulated deficit | (293,062) | (275,212) | |||||||||
Accumulated other comprehensive income (loss) | 3,232 | (523) | |||||||||
Total stockholders' equity | 343,614 | 346,596 | |||||||||
| Total liabilities and stockholders' equity | $ | 511,388 | $ | 508,630 | |||||||
ORTHOPEDIATRICS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In Thousands, Except Share and Per Share Data)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net revenue | $ | 70,508 | $ | 61,082 | $ | 129,869 | $ | 113,493 | |||||||||||||||
| Cost of revenue | 18,142 | 17,063 | 34,113 | 31,212 | |||||||||||||||||||
| Gross profit | 52,366 | 44,019 | 95,756 | 82,281 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
Sales and marketing | 21,294 | 19,103 | 39,764 | 35,675 | |||||||||||||||||||
General and administrative | 32,814 | 30,443 | 63,837 | 60,723 | |||||||||||||||||||
| Restructuring | 1 | 2,971 | 1 | 3,011 | |||||||||||||||||||
Research and development | 2,325 | 2,159 | 4,556 | 4,510 | |||||||||||||||||||
Total operating expenses | 56,434 | 54,676 | 108,158 | 103,919 | |||||||||||||||||||
| Operating loss | (4,068) | (10,657) | (12,402) | (21,638) | |||||||||||||||||||
| Other expense (income): | |||||||||||||||||||||||
Interest expense, net | 2,528 | 1,116 | 4,631 | 2,242 | |||||||||||||||||||
Other expense (income), net | 333 | (4,709) | 754 | (6,353) | |||||||||||||||||||
Total other expense (income), net | 2,861 | (3,593) | 5,385 | (4,111) | |||||||||||||||||||
| Net loss before income taxes | $ | (6,929) | $ | (7,064) | (17,787) | (17,527) | |||||||||||||||||
| Income tax charge | 234 | 49 | 63 | 245 | |||||||||||||||||||
| Net loss | $ | (7,163) | $ | (7,113) | $ | (17,850) | $ | (17,772) | |||||||||||||||
| Weighted average common stock - basic and diluted | 24,048,690 | 23,460,144 | 23,867,877 | 23,346,141 | |||||||||||||||||||
Net loss per share – basic and diluted | $ | (0.30) | $ | (0.30) | $ | (0.75) | $ | (0.76) | |||||||||||||||
ORTHOPEDIATRICS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)(In Thousands)
| Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| OPERATING ACTIVITIES | |||||||||||
| Net loss | $ | (17,850) | $ | (17,772) | |||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
Depreciation and amortization | 11,427 | 10,218 | |||||||||
Stock-based compensation | 8,173 | 9,111 | |||||||||
Accretion of acquisition installment payable | 220 | 98 | |||||||||
| Deferred income taxes | (82) | 245 | |||||||||
| Non-cash other | 161 | (100) | |||||||||
Changes in certain current assets and liabilities, net of acquisitions: | |||||||||||
Accounts receivable - trade | (6,536) | (11,381) | |||||||||
Inventories | (2,553) | (8,899) | |||||||||
Prepaid expenses and other current assets | 201 | (501) | |||||||||
Accounts payable - trade | 3,140 | 3,720 | |||||||||
Accrued expenses and other liabilities | 2,209 | 2,509 | |||||||||
Other | (869) | (1,866) | |||||||||
| Net cash used in operating activities | (2,359) | (14,618) | |||||||||
| INVESTING ACTIVITIES | |||||||||||
| Other acquisitions, including clinics, net of cash acquired | (5,936) | (320) | |||||||||
| Sale of short-term marketable securities | 13,000 | — | |||||||||
| Investment in private companies | (330) | (1,540) | |||||||||
| Loss on investment in private companies | 284 | — | |||||||||
| Purchases of property and equipment | (5,805) | (7,672) | |||||||||
| Net cash provided by (used in) investing activities | 1,213 | (9,532) | |||||||||
| FINANCING ACTIVITIES | |||||||||||
| Proceeds from issuance of debt | — | 25,000 | |||||||||
| Payment of debt issuance costs | (289) | — | |||||||||
| Payments on mortgage notes | (85) | (78) | |||||||||
| Payments on acquisition notes | (977) | (248) | |||||||||
| Net cash (used in) provided by financing activities | (1,351) | 24,674 | |||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (68) | 304 | |||||||||
| NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (2,565) | 828 | |||||||||
| Cash, cash equivalents and restricted cash, beginning of period | $ | 21,620 | $ | 45,777 | |||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 19,055 | $ | 46,605 | |||||||
| 2026 | 2025 | ||||||||||
| SUPPLEMENTAL DISCLOSURES | |||||||||||
| Cash paid for interest | $ | 3,741 | $ | 2,552 | |||||||
| Transfer of instruments from property and equipment and inventory | $ | (980) | $ | 651 | |||||||
| Right-of-use assets obtained in exchange for lease liabilities | $ | 1,265 | $ | 3,311 | |||||||
| 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 June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| Product sales by geographic location: | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
U.S. | $ | 54,791 | $ | 48,147 | $ | 100,100 | $ | 89,039 | |||||||||||||||
International | 15,717 | 12,935 | 29,769 | 24,454 | |||||||||||||||||||
Total | $ | 70,508 | $ | 61,082 | $ | 129,869 | $ | 113,493 | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| Product sales by category: | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
Trauma and deformity | $ | 52,632 | $ | 41,655 | 95,677 | 79,521 | |||||||||||||||||
Scoliosis | 16,876 | 18,522 | 32,319 | 32,186 | |||||||||||||||||||
Sports medicine/other | 1,000 | 905 | 1,873 | 1,786 | |||||||||||||||||||
Total | $ | 70,508 | $ | 61,082 | $ | 129,869 | $ | 113,493 | |||||||||||||||
ORTHOPEDIATRICS CORP.
RECONCILIATION OF NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
TO FREE CASH FLOW
(Unaudited)
(In Thousands)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
Net cash provided by (used in) operating activities (GAAP) | 928 | (10,462) | (2,359) | (14,618) | ||||||||||||||||||||||
Less: Capital expenditures | (4,045) | (3,445) | (5,805) | (7,672) | ||||||||||||||||||||||
Free cash flow (non-GAAP) | $ | (3,117) | $ | (13,907) | $ | (8,164) | $ | (22,290) | ||||||||||||||||||
ORTHOPEDIATRICS CORP.
RECONCILIATION OF NET LOSS TO NON-GAAP ADJUSTED EBITDA
(Unaudited)
(In Thousands)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net loss | $ | (7,163) | $ | (7,113) | $ | (17,850) | $ | (17,772) | |||||||||||||||
Interest expense, net | 2,528 | 1,116 | 4,631 | 2,242 | |||||||||||||||||||
Other expense (income), net | 333 | (4,709) | 754 | (6,353) | |||||||||||||||||||
| Income tax charge | 234 | 49 | 63 | 245 | |||||||||||||||||||
Depreciation and amortization | 5,706 | 5,170 | 11,427 | 10,218 | |||||||||||||||||||
Stock-based compensation | 4,191 | 5,252 | 8,173 | 9,111 | |||||||||||||||||||
| Restructuring charges | 1 | 2,971 | 1 | 3,011 | |||||||||||||||||||
| Tariffs | 167 | 648 | 392 | 648 | |||||||||||||||||||
| European Union Medical Device Regulation fees increase | — | — | — | 110 | |||||||||||||||||||
Acquisition related costs | 779 | 474 | 1,348 | 1,589 | |||||||||||||||||||
| Minimum purchase commitment cost | — | 269 | $ | — | $ | 699 | |||||||||||||||||
| Adjusted EBITDA | $ | 6,776 | $ | 4,127 | $ | 8,939 | $ | 3,748 | |||||||||||||||
ORTHOPEDIATRICS CORP.
RECONCILIATION OF DILUTED LOSS PER SHARE TO NON-GAAP ADJUSTED DILUTED LOSS PER SHARE
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Loss per share, diluted (GAAP) | $ | (0.30) | $ | (0.30) | $ | (0.75) | $ | (0.76) | |||||||||||||||
| Tariffs | 0.01 | 0.03 | 0.02 | 0.03 | |||||||||||||||||||
| Restructuring charges | — | 0.13 | — | 0.13 | |||||||||||||||||||
| European Union Medical Device Regulation fees increase | — | — | — | — | |||||||||||||||||||
| Acquisition related costs | 0.03 | 0.02 | 0.06 | 0.07 | |||||||||||||||||||
| Minimum purchase commitment cost | — | 0.01 | — | 0.03 | |||||||||||||||||||
| Loss per share, diluted (non-GAAP) | $ | (0.26) | $ | (0.11) | $ | (0.67) | $ | (0.50) | |||||||||||||||