Earnings

OrthoPediatrics Raises 2026 Sales Forecast To As Much As $273 Million As Net Loss Narrows To $5.9 Million

Third-quarter revenue rose 19% to a record $72.7 million, and the pediatric orthopedics company lifted its full-year revenue range.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

— 2 min read
Share
OrthoPediatrics Raises 2026 Sales Forecast To As Much As $273 Million As Net Loss Narrows To $5.9 Million

OrthoPediatrics, which makes implants, instruments and braces for children with orthopedic conditions, said Tuesday its third-quarter revenue rose 19% to a record $72.7 million and its net loss shrank to $5.9 million. It also raised its 2026 revenue guidance to $270.0 million to $273.0 million.

Loss narrows, cash flow turns positive

The net loss was $5.9 million, or $0.25 per share, against $11.8 million, or $0.50 per share, a year earlier. Revenue was $61.2 million in the third quarter of 2025.

Adjusted EBITDA, a profit measure that strips out items such as interest, depreciation and stock pay, reached a record $6.9 million, from $6.2 million. Free cash flow was positive at $1.6 million, against $3.4 million used a year earlier. The company credited higher adjusted EBITDA, fewer implant sets deployed and better working capital.

Cash, cash equivalents, short-term investments and restricted cash stood at $44.9 million on September 30, down from $62.9 million at the end of 2025.

Gross margin held at 74%. Operating expenses rose 6% to $58.2 million, driven mainly by higher sales commissions and added staff for clinic expansions and small acquisitions.

Trauma and scoliosis both grow high teens

U.S. revenue climbed 19% to $57.9 million, or 80% of the total, and international revenue rose 18% to $14.8 million. Trauma and Deformity sales rose 19% to $52.6 million, helped by cannulated screws, PNP Femur, PediPlates and the new 3P Hip system. Scoliosis sales rose 18% to $19.2 million on VerteGlide and Response.

The company said it helped nearly 42,000 children in the quarter. It announced full market release of its 3P Pediatric Plating Platform Hip System and the PediHip Rigid Brace, and said it has begun a limited launch of PNP Retrograde after FDA clearance.

The raised outlook

The new revenue range compares with a prior $265.0 million to $269.0 million and implies growth of 14% to 16% over 2025. The company reiterated expected adjusted EBITDA of about $25.0 million, set deployment of about $10.0 million, and breakeven free cash flow for 2026.

CEO David Bailey said the focus remains on achieving "breakeven or better free cash flow on an annual basis in 2026 and beyond." He pointed to an "innovation super cycle" of new products over the next several years.

The company held a conference call at 4:30 p.m. ET Tuesday to discuss the results.

For the first nine months of 2026, the company reported free cash flow of negative $6.6 million, against negative $25.7 million in the same period of 2025.

Sources

Read more