OrthoPediatrics Revenue Jumps 19% to $72.7 Million, Raises 2026 Outlook
Key Facts
OrthoPediatrics reported record third-quarter 2026 revenue of $72.7 million, up 19% from $61.2 million in the same period last year, according to the company's results statement. The company raised its full-year revenue outlook to $270–273 million from $265–269 million previously. The new range implies expected growth of 14% to 16% compared with 2025 revenue. The company also narrowed its net loss to $5.9 million and generated positive free cash flow during the quarter. The company operates exclusively in pediatric orthopedics, making expansion in its core product categories a key driver of its results.
U.S. revenue was $57.9 million, up 19% year over year, and accounted for 80% of the total. International revenue was $14.8 million, up 18%, and represented 20% of revenue. Revenue from trauma and deformity products was $52.6 million, up 19% from $44.1 million a year earlier. Scoliosis products generated $19.2 million, up 18% from $16.3 million. By contrast, sports medicine and other revenue grew 2% to $0.9 million, compared with $0.8 million in the third quarter of 2025. The company said quarterly growth was driven primarily by trauma and deformity products globally and OPSB products, while higher procedure volumes supported international revenue.
The company helped nearly 42,000 children during the quarter, according to the results statement. Gross profit was $54 million, up 19% from $45.3 million a year earlier, while gross margin held steady at 74%. Operating expenses rose 6% to $58.2 million from $54.7 million. The company attributed the increase mainly to higher sales commissions and employee costs supporting clinic expansion and small acquisitions. The CEO said the company continued to gain share in the global trauma and deformity and scoliosis markets, adding: "We continued to build on our business momentum, gaining share in trauma and deformity and scoliosis globally."
The net loss narrowed to $5.9 million in the third quarter, compared with $11.8 million in the corresponding period of 2025. Basic and diluted loss per share declined to $0.25 from $0.50. On liquidity, the company reported positive free cash flow of $1.6 million, compared with a $3.4 million use a year earlier, an improvement of $5 million year over year. The company said it expects to achieve breakeven or better in free cash flow on a full-year basis in 2026. It also maintained its estimate for annual spending on instrument set deployments at about $10 million, and its adjusted EBITDA outlook at about $25 million. The CEO said: "Our focus remains on growing the business, improving operating performance and achieving breakeven or better in free cash flow annually in 2026 and beyond."
As part of its product portfolio expansion, the company announced the full launch of its 3P pediatric hip fixation platform, alongside the PediHip rigid brace, as well as limited launches of other products. The company says it markets more than 95 systems serving key categories in the pediatric orthopedic surgery market, including trauma and deformity, scoliosis, sports medicine and other procedures. Revenue for the nine months ended September 30, 2026, was about $202.530 million, compared with $174.743 million in the same period of 2025. The company points to a pipeline of new products expected over the coming years and expects them to deliver greater value and improved capital efficiency. It scheduled its third-quarter results conference call for October 27, 2026, at 4:30 p.m. Eastern Time. KIDS shares closed at $24.02 on October 26, according to EL7 data.