OrthoPediatrics Raises 2026 Sales Outlook After Record Quarter

The Tip Desk · November 10, 2026 · 3 min read

Third-quarter revenue hit a record $72.7 million, up 19%, and the company lifted full-year guidance to $270.0 million to $273.0 million.

OrthoPediatrics Corp. (KIDS), a company focused exclusively on pediatric orthopedics, reported record third-quarter revenue of $72.7 million, up 19% from $61.2 million a year earlier, and raised its full-year 2026 sales outlook.

Year-over-year growth accelerated from 15% in the second quarter and 13% in the first. The company said the increase was driven primarily by growth in global Trauma and Deformity and OPSB products, with growth in the quarter primarily from increased procedure volumes.

U.S. revenue was $57.9 million, or 80% of the total, after 14% U.S. growth in the second quarter and 11% in the first. International revenue was $14.8 million, or 20% of the total.

Trauma and Deformity revenue was $52.6 million. The company attributed that growth to numerous product lines, specifically Cannulated Screws, PNP Femur, PediPlates, the addition of 3P Hip, and continued OPSB growth. Scoliosis revenue was $19.2 million, reversing a 9% year-over-year decline in the second quarter. The company said the increase was due to increased revenue generated from VerteGlide and Response. Sports Medicine/Other revenue was $0.9 million.

Gross profit was $54.0 million, with gross margin of 74%, consistent with the year-ago quarter. Total operating expenses were $58.2 million. Sales and marketing expenses rose $4.4 million, or 24%, to $23.1 million, which the company said was driven primarily by increased sales commission expenses and an overall increase in volume of units sold. General and administrative expenses rose $2.9 million, or 10%, to $32.0 million, primarily from additional personnel supporting clinic expansions and small-scale acquisitions. Research and development expenses were $2.5 million.

The company recorded a $0.6 million intangible-asset impairment after its annual impairment analysis, reducing the carrying amount of ApiFix and MedTech trademark assets to estimated fair value.

Net loss narrowed to $5.9 million, or $0.25 a share, from $11.8 million, or $0.50 a share, a year earlier. Adjusted EBITDA reached a record $6.9 million, compared with $6.2 million a year earlier. Free cash flow was $1.6 million, a $5.0 million improvement from $3.4 million of usage in the year-ago period. The company said increased adjusted EBITDA, lower sets deployed and improved working capital metrics all contributed to the year-over-year improvement.

President and Chief Executive Officer David Bailey said the company continued to build on momentum, gaining share in Trauma and Deformity and Scoliosis globally, and continued substantial progress with the OPSB strategy. He said the company generated positive free cash flow and remained confident in its ability to continue to drive those metrics forward.

The company announced full market release of the 3P Pediatric Plating Platform Hip System and the PediHip Rigid Brace, and continued to expand the portfolio with multiple new products, including FDA clearance and subsequent limited launch of PNP Retrograde, the limited launch of OPSB Knee 'TractorFIX, and the limited launch of 3P Pediatric Plating Platform Small Mini. It said it helped nearly 42,000 children in the third quarter.

For the full year of 2026, the company is increasing its revenue guidance to $270.0 million to $273.0 million from its prior range of $265.0 million to $269.0 million, representing growth of 14% to 16% over 2025 revenue. That followed a prior raise in the second-quarter release. 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.

Cash, cash equivalents, short-term investments and restricted cash were $44.9 million as of September 30, 2026, compared with $62.9 million as of December 31, 2025.