OrthoPediatrics Third-Quarter Sales Climb 19% To $72.7 Million As Free Cash Flow Turns Positive
The pediatric orthopedics company halved its quarterly net loss to $5.9 million and guides to breakeven free cash flow for 2026.
OrthoPediatrics, which makes implants, instruments and braces for children with orthopedic conditions, put third-quarter revenue at $72.7 million, up 19%, with a narrower loss and positive free cash flow, in an investor presentation attached to an 8-K filed Tuesday. Executives plan to use the deck in several upcoming meetings with investors and analysts.
Loss narrows, cash turns positive
Revenue compares with $61.2 million a year earlier, when growth was 12%. Gross margin held at 74% in both quarters.
The net loss shrank to $5.9 million, or $0.25 per diluted share, from $11.8 million, or $0.50. On the company's adjusted measure, the loss was $0.23 per share, against $0.24 a year earlier.
Adjusted EBITDA, the company's earnings measure that strips out items such as stock pay and restructuring, was $6.9 million versus $6.2 million. Free cash flow was positive $1.6 million, compared with negative $3.4 million in the third quarter of 2025. For the first nine months, free cash flow was negative $6.6 million, against negative $25.7 million a year earlier.
Guidance and a thinner cash cushion
The deck's 2026 guidance calls for revenue of $270.0 million to $273.0 million, or growth of 14% to 16%. It also targets adjusted EBITDA of about $25.0 million, breakeven free cash flow and about $10.0 million of instrument set deployment, the spending on surgical kits placed in hospitals. Set deployment was $17 million in 2025 on the company's chart.
As of September 30, 2026, cash, equivalents and short-term investments stood at $44.9 million, against $98.4 million of debt.
A pediatric-only business
OrthoPediatrics sells in over 75 countries, mainly through independent sales agencies, stocking distributors and direct representatives, and also runs orthotic and prosthetic clinics. Trauma and deformity correction brought in $166.3 million of its $236.3 million in 2025 revenue, about 70% of the total.
The deck's market-size, product-launch and clinic-expansion slides repeat material the company first presented in an April 30 filing.
The 2026 revenue midpoint on the deck's slides is $271.5 million, on the path from $236.3 million in 2025.
Sources
- 8-K Filing — ORTHOPEDIATRICS CORP (KIDS) — SEC EDGAR
- Exhibit orthopediatrics-investor.htm — ORTHOPEDIATRICS CORP 8-K exhibit — SEC EDGAR
