OrthoPediatrics Corp. Reports Second Quarter 2026 Financial Results and Increases 2026 Financial Guidance

About this update from Orthopediatrics Corp.

Second Quarter 2026 Revenue Surpasses $70 million for the First Time in Company History, and Increased 15% Year-over-Year WARSAW, Ind., Aug. 04, 2026 (GLOBE NEWSWIRE) -- OrthoPediatrics Corp. ("OrthoPediatrics" or the "Company") (Nasdaq: KIDS), a company focused exclusively on advancing the field of pediatric orthopedics, today announced its financial results for the second quarter ended June 30, 2026. Second Quarter 2026 and Business Highlights       David Bailey, President & CEO of OrthoPediatrics, commented, "We have reached the beginning of an inflection point in our business as our second quarter results demonstrate our ability to simultaneously drive stronger revenue growth, increase profitability, and improve free cash flow. These metrics are expected to continue to improve driven by our innovation super cycle of higher value and more capital efficient products launched over the coming years. Our success in the quarter was highlighted by share gains in our Trauma and Deformity implant business, solid international growth, and continued execution of our OPSB strategy. While scoliosis implant sales were strong and the summer surgery schedule is encouraging, the timing of related capital placements and international set sales in the quarter negatively impacted scoliosis growth. This quarter's results reinforce our confidence in our core business, and we are excited by the opportunity for continued improvement of our operating profile, including achieving cash-flow breakeven in 2026 and further supporting our position as the definitive market leader in pediatric orthopedics." Second Quarter 2026 Financial Results Total revenue for the second quarter of 2026 was $70.5 million, a 15% increase compared to $61.1 million for the same period last year. U.S. revenue for the second quarter of 2026 was $54.8 million, a 14% increase compared to $48.1 million for the same period last year, representing 78% of total revenue. The increase in revenue in the second quarter of 2026 was driven primarily by growth in global Trauma and Deformity and OPSB products. International revenue for the second quarter of 2026 was $15.7 million, a 22% increase compared to $12.9 million for the same period last year, representing 22% of total revenue. Growth in the quarter was primarily driven by increased procedure volumes and limited set sales. Trauma and Deformity revenue for the second quarter of 2026 was $52.6 million, a 26% increase compared to $41.7 million for the same period last year. This growth was driven primarily by numerous product lines, specifically our Cannulated Screws, PNP Femur, PediPlates, Pega systems, the addition of 3P Hip, as well as continued OPSB growth. Scoliosis revenue was $16.9 million, a 9% decrease compared to $18.5 million for the second quarter of 2025. The decrease was due to decreased revenue generated from 7D Technology as well as lower set sales to our international stocking distributors. These declines were partially offset by increased Response fusion revenue as well as the addition of Verteglide. Sports Medicine/Other revenue for the second quarter of 2026 was $1.0 million, a 10% increase compared to $0.9 million for the same period last year. Gross profit for the second quarter of 2026 was $52.4 million, a 19% increase compared to $44.0 million for the same period last year. Gross profit margin for the second quarter of 2026 increased to 74% from 72% for the same period last year, primarily due to sales volume. Total operating expenses for the second quarter of 2026 were $56.4 million, a 3% increase compared to $54.7 million for the same period last year. The increase was mainly driven by increased sales commission expense as well as additional personnel supporting clinic expansions and small-scale acquisitions. Sales and marketing expenses increased $2.2 million, or 11%, to $21.3 million in the second quarter of 2026. The increase was driven primarily by increased sales commission expenses and an overall increase in volume of units sold. Research and development expenses increased $0.1 million, or 8%, to $2.3 million in the second quarter of 2026. The increase was primarily due to ongoing product development during the second quarter of 2026. General and administrative expenses increased $2.4 million, or 8%, to $32.8 million in the second quarter of 2026. The increase was primarily due to the additional personnel supporting clinic expansions and small-scale acquisitions. Total other expense was $2.9 million for the second quarter of 2026, compared to other income of $3.6 million for the same period last year. The change was primarily driven by additional interest expense in 2026 compared to 2025, as well as changes in foreign exchange gains. Foreign exchange losses were primarily driven by changes in the Euro exchange rate, as the Euro declined in value during the three months ended June 30, 2026, compared to Euro appreciation for the three months ended June 30, 2025. Net loss for the second quarter of 2026 was $7.2 million, compared to $7.1 million for the same period last year. Net loss per share for the period was $0.30 per basic and diluted share, compared to $0.30 per basic and diluted share for the same period last year. Adjusted EBITDA for the second quarter of 2026 was $6.8 million as compared to $4.1 million for the second quarter of 2025. Weighted average basic and diluted shares outstanding for the three months ended June 30, 2026, was 24,048,690 shares. As of June 30, 2026, cash, cash equivalents, short-term investments and restricted cash were $47.9 million compared to $62.9 million as of December 31, 2025. Free cash flow used in the second quarter of 2026 was $3.1 million, a 78% improvement as compared to $13.9 million used in the second quarter of 2025. Increased adjusted EBITDA, lower sets deployed and improved working capital metrics all contributed to the year over year improvement. Full Year 2026 Financial Guidance For the full year of 2026, the Company is increasing its revenue guidance to $265.0 million to $269.0 million from its prior range of $263.0 million to $267.0 million, representing growth of 12% to 14% over 2025 revenue. 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. Conference Call OrthoPediatrics will host a conference call on Tuesday, August 4, 2026, at 4:30 p.m. ET to discuss the results. Investors interested in listening to the conference call may do so by accessing a live and archived webcast of the event at www.orthopediatrics.com, on the Investors page in the Events & Presentations section. The webcast will be available for replay for at least 90 days after the event. Forward-Looking Statements This press release includes "forward-looking statements" within the meaning of U.S. federal securities laws. You can identify forward-looking statements by the use of words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "could," "believe," "estimate," "project," "target," "predict," "intend," "future," "goals," "potential," "objective," "would" and other similar expressions. Forward-looking statements involve risks and uncertainties, many of which are beyond OrthoPediatrics' control. Important factors could cause actual results to differ materially from those in the forward-looking statements, including, among others: the risks related to widespread health emergencies, such as COVID-19 and respiratory syncytial virus, the impact such pandemics, epidemics and infectious disease outbreaks may have on the demand for our products, and our ability to respond to the related challenges; and the risks, uncertainties and factors set forth under "Risk Factors" in OrthoPediatrics' Annual Report on Form 10-K filed with the SEC on March 4, 2026, as updated and supplemented by our other SEC reports filed from time to time. Forward-looking statements speak only as of the date they are made. OrthoPediatrics assumes no obligation to update forward-looking statements to reflect actual results, subsequent events, or circumstances or other changes affecting such statements except to the extent required by applicable securities laws. Use of Non-GAAP Financial Measures This press release includes certain non-GAAP financial measures, such as free cash flow, adjusted diluted (loss) earnings per share and Adjusted EBITDA, which differ from financial measures calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). Free cash flow, which we reconcile to "Net cash used in operating activities" is cash flow from operations reduced by "Capital expenditures". Adjusted loss per share in this press release represents diluted loss per share on a GAAP basis, plus the accreted interest attributable to acquisition installment payables, restructuring charges, tariffs, European Union Medical Device Regulation fees increase, acquisition related costs, and minimum purchase commitment costs. We believe that providing the non-GAAP diluted loss per share excluding these expenses, as well as the GAAP measures, assists our investors because such expenses are not reflective of our ongoing operating results. Adjusted EBITDA in this release represents net loss, plus interest expense, net plus other expense (income), income tax charge, depreciation and amortization, stock-based compensation expense, restructuring charges, tariffs, European Union Medical Device Regulation fees increase, acquisition related costs, and the cost of minimum purchase commitments. The fair value adjustment of contingent consideration is associated with our estimates of the value of earn-outs in connection with certain acquisitions. The Company believes the non-GAAP measures provided in this earnings release enable it to further and more consistently analyze the period-to-period financial performance of its core business operating performance. Management uses these metrics as a measure of the Company's operating performance and for planning purposes, including financial projections. The Company believes these measures are useful to investors as supplemental information because they are frequently used by analysts, investors and other interested parties to evaluate companies in its industry. Free cash flow is a non-GAAP financial measure and has limitations because it does not represent the cash flow available for management's use as it does not reflect capital expenditures which will likely recur in the future. Adjusted EBITDA is a non-GAAP financial measure and should not be considered as an alternative to, or superior to, net income or loss as a measure of financial performance or cash flows from operations as a measure of liquidity, or any other performance measure derived in accordance with GAAP, and it should not be construed to imply that the Company's future results will be unaffected by unusual or non-recurring items. In addition, the measure is not intended to be a measure of free cash flow for management's discretionary use, as it does not reflect certain cash requirements such as debt service requirements, capital expenditures and other cash costs that may recur in the future. Adjusted EBITDA contains certain other limitations, including the failure to reflect our cash expenditures, cash requirements for working capital needs and other potential cash requirements. In evaluating these non-GAAP measures, you should be aware that in the future the Company may incur expenses that are the same or similar to some of the adjustments in this presentation. The Company's presentation of non-GAAP free cash flow, diluted loss per share or Adjusted EBITDA should not be construed to imply that its future results will be unaffected by any such adjustments. Management compensates for these limitations by primarily relying on the Company's GAAP results in addition to using these adjusted measures on a supplemental basis. The Company's definition of these measures is not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation. The schedules below contain reconciliations of Net cash used in operating activities to Free cash flow (Non-GAAP), GAAP diluted loss per share to non-GAAP diluted loss per share and net loss to non-GAAP Adjusted EBITDA. About OrthoPediatrics Corp. Founded in 2006, OrthoPediatrics is an orthopedic company focused exclusively on advancing the field of pediatric orthopedics. As such it has developed the most comprehensive product offering to the pediatric orthopedic market to improve the lives of children with orthopedic conditions. OrthoPediatrics currently markets over 90 systems that serve three of the largest categories within the pediatric orthopedic market. This product offering spans trauma and deformity, scoliosis, and sports medicine/other procedures. OrthoPediatrics' global sales organization is focused exclusively on pediatric orthopedics and distributes its products in the United States and over 75 countries outside the United States. For more information, please visit www.orthopediatrics.com. Investor Contact Philip Trip Taylor Gilmartin Group [email protected] 415-937-5406

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