OrthoPediatrics Raises Sales Outlook as Trauma Revenue Jumps
Second-quarter revenue reached a record $70.5 million as U.S. growth accelerated.
OrthoPediatrics Corp. (KIDS), the pediatric orthopedic-device maker, raised its annual revenue outlook after Trauma and Deformity sales powered stronger second-quarter growth.
Growth accelerated to 15% from 13% in the first quarter, though it remained below the 16% recorded a year earlier. The company helped nearly 46,000 children during the period, a quarterly record.
Revenue rose from $61.0 million a year earlier and increased 19% sequentially from $59.4 million. The net loss was little changed at $7.2 million, or $0.30 a share, as higher interest expense and unfavorable foreign-exchange movements offset the operating improvement.
Trauma and Deformity revenue jumped 26% to $52.6 million, accelerating from 14% growth in the first quarter. Scoliosis revenue fell 9% to $16.9 million as lower 7D Technology revenue and international stocking-distributor set sales outweighed growth from Response and the addition of VerteGlide.
U.S. revenue rose 14% to $54.8 million, while international revenue increased 22% to $15.7 million. The U.S. business accounted for 78% of total revenue, up from 76% in the first quarter.
Gross margin expanded to 74% from 72%, primarily because of higher sales volume. Operating expenses rose 3% while revenue increased 15%, narrowing the operating loss to $4.1 million from $10.7 million. Adjusted EBITDA climbed to a record $6.8 million, and free-cash-flow usage improved to $3.1 million from $13.9 million.
OrthoPediatrics now expects 2026 revenue of $265 million to $269 million, up $2 million at both ends from its previous forecast. It continues to target approximately $25 million of adjusted EBITDA, about $10 million of annual set deployments and breakeven free cash flow.
The company also announced an exclusive U.S. distribution agreement with OSSIO for bio-integrative, metal-free fracture and deformity fixation technology. Cash, short-term investments and restricted cash declined to $47.9 million at June 30 from $62.9 million at year-end, leaving the full-year cash-flow target dependent on stronger second-half generation.