Orthopediatrics Corp 8-K, filed Oct 27, 2026
Orthopediatrics Corp (KIDS)
8-K
2026-10-27
For: 2026-10-27
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Added on
October 27, 2026
About this 8-K
Orthopediatrics Corp filed this 8-K on October 27, 2026.
OrthoPediatrics reported third-quarter revenue of $72.7 million, up 19% year-over-year, record adjusted EBITDA of $6.9 million and free cash flow of $1.6 million; net loss was $5.9 million. Full-year revenue guidance increased to $270.0 million to $273.0 million. AI summary
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
______________________
Date of Report (Date of earliest event reported): October 27, 2026
| (Exact name of registrant as specified in its charter) | ||
| (State or other jurisdiction of incorporation) | ||
| (Commission File Number) | (I.R.S. Employer Identification Number) | ||||
| (Address of principal executive offices) | (Zip Code) | ||||
Registrant’s telephone number, including area code: (574 ) 268-6379
| Not Applicable | ||
| (Former name or former address, if changed since last report) | ||
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 under the Securities Act (17 CFR 230.405) or Rule 12b-2 under the Exchange Act (17 CFR 240.12b-2).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ¨
Item 2.02. Results of Operations and Financial Condition.
On October 27, 2026, OrthoPediatrics Corp. issued a press release announcing its earnings for the quarter ended September 30, 2026 and making other disclosures. The press release (including the accompanying unaudited condensed consolidated financial statements as of and for the quarter ended September 30, 2026, and other financial data) is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
The information in this Item 2.02, including the information incorporated by reference herein from Exhibit 99.1, is furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
| (d) | Exhibits | |||||||
| Exhibit No. | Description | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
* * * * * *
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| OrthoPediatrics Corp. | ||||||||
| Date: October 27, 2026 | By: | /s/ Daniel J. Gerritzen | ||||||
| Daniel J. Gerritzen, General Counsel and Secretary | ||||||||
- 2 -
OrthoPediatrics Corp. Reports Third Quarter 2026 Financial Results and Increases 2026 Financial Guidance
Record Third Quarter 2026 Revenue of $72.7 Million, Up 19% Year-over-Year
WARSAW, Ind., October 27, 2026 -- 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 third quarter ended September 30, 2026.
Third Quarter 2026 and Recent Business Highlights
•Helped nearly 42,000 children in the third quarter of 2026
•Generated new record high total revenue of $72.7 million for the third quarter of 2026, up 19% from $61.2 million in the third quarter of 2025; domestic revenue increased 19% and international revenue increased 18% in the quarter
•Grew worldwide Trauma & Deformity revenue 19% in the third quarter of 2026 compared to the third quarter of 2025, and grew Scoliosis revenue 18% in the third quarter of 2026 compared to the third quarter of 2025
•Achieved record adjusted EBITDA of $6.9 million in the third quarter of 2026, compared to $6.2 million in the third quarter of 2025
•Generated free cash flow of $1.6 million in the third quarter of 2026, a $5.0 million improvement as compared to $3.4 million of usage in the prior year period
•Announced full market release of 3P™ Pediatric Plating Platform® Hip System, and the PediHip Rigid Brace
•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
•Increased full year 2026 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% compared to prior year
“In the third quarter, we continued to build on the momentum in our business, gaining share in Trauma and Deformity and Scoliosis globally, and continued substantial progress with our OPSB strategy. This quarter, we not only drove revenue growth, but we continued to improve profitability, and generated positive free cash flow. We remain confident in our ability to continue to drive these metrics forward," said David Bailey, President & CEO of OrthoPediatrics. "Our innovation super cycle is an important part of that opportunity, with a strong pipeline of new products coming over the next several years that are expected to deliver higher value and improved capital efficiency. We believe these launches will be an important driver of our financial performance as we bring new solutions to more surgeons and hospitals. There are still significant unmet needs in pediatric orthopedics, and we believe OrthoPediatrics is well positioned to capitalize on that opportunity. Our focus remains on growing the business, improving our operating performance, and achieving breakeven or better free cash flow on an annual basis in 2026 and beyond while continuing to deliver innovative solutions for children.”
Third Quarter 2026 Financial Results
Total revenue for the third quarter of 2026 was $72.7 million, a 19% increase compared to $61.2 million for the same period last year. U.S. revenue for the third quarter of 2026 was $57.9 million, a 19% increase compared to $48.7 million for the same period last year, representing 80% of total revenue. The increase in revenue in the third quarter of 2026 was driven primarily by growth in global Trauma and Deformity and OPSB products. International revenue for the third quarter of 2026 was $14.8 million, an 18% increase compared to $12.5 million for the same period last year, representing 20% of total revenue. Growth in the quarter was primarily driven by increased procedure volumes.
Trauma and Deformity revenue for the third quarter of 2026 was $52.6 million, a 19% increase compared to $44.1 million for the same period last year. This growth was driven primarily by numerous product lines, specifically our Cannulated Screws, PNP Femur, PediPlates, the addition of 3P Hip, as well as continued OPSB growth. Scoliosis revenue was $19.2 million, an 18% increase compared to $16.3 million for the third quarter of 2025. The increase was due to increased revenue generated from VerteGlide and Response. Sports Medicine/Other revenue for the third quarter of 2026 was $0.9 million, a 2% increase compared to $0.8 million for the same period last year.
Gross profit for the third quarter of 2026 was $54.0 million, a 19% increase compared to $45.3 million for the same period last year. Gross profit margin for the third quarter of 2026 was 74%, consistent with the same period last year.
Total operating expenses for the third quarter of 2026 were $58.2 million, a 6% 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 $4.4 million, or 24%, to $23.1 million in the third 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 6%, to $2.5 million in the third quarter of 2026. The increase was primarily due to ongoing product development during the third quarter of 2026.
General and administrative expenses increased $2.9 million, or 10%, to $32.0 million in the third quarter of 2026. The increase was primarily due to the additional personnel supporting clinic expansions and small-scale acquisitions.
Intangible asset impairment recorded during the third quarter of 2026 was $0.6 million as a result of completing our annual impairment analysis for our tradenames, where we determined the fair value of the ApiFix and MedTech trademark assets were below the carrying value. We recorded an impairment charge to reduce the carrying amount of the intangible assets to their estimated fair value.
Total other expense was $1.8 million for the third quarter of 2026, compared to other expense of $2.5 million for the same period last year. The change was primarily driven by a $0.8 million non-cash fair value adjustment of contingent consideration, additional interest expense in 2026 compared to 2025, as well as changes in foreign exchange gains and losses. Foreign exchange losses were primarily driven by changes in the Euro exchange rate, as the Euro declined in value during the three months ended September 30, 2026, compared to Euro appreciation for the three months ended September 30, 2025.
Net loss for the third quarter of 2026 was $5.9 million, compared to $11.8 million for the same period last year. Net loss per share for the period was $0.25 per basic and diluted share, compared to $0.50 per basic and diluted share for the same period last year.
Adjusted EBITDA for the third quarter of 2026 was $6.9 million as compared to $6.2 million for the third quarter of 2025.
Weighted average basic and diluted shares outstanding for the three months ended September 30, 2026, was 24,153,621 shares.
As of September 30, 2026, cash, cash equivalents, short-term investments and restricted cash were $44.9 million compared to $62.9 million as of December 31, 2025. Free cash flow generated in the third quarter of 2026 was $1.6 million, a 147% improvement as compared to $3.4 million used in the third 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 $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. 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, October 27, 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 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 provided by (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, excluding intangible asset impairment, fair value adjustment of contingent consideration, 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), net plus income tax charge (benefit), depreciation and amortization, intangible asset impairment, stock-based compensation expense, fair value adjustment of contingent consideration, 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 95 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
philip@gilmartinir.com
415-937-5406
ORTHOPEDIATRICS CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (In Thousands, Except Share Data)
| September 30, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
Cash | $ | 17,141 | $ | 19,556 | |||||||
| Restricted cash | 710 | 2,064 | |||||||||
| Short-term investments | 27,088 | 41,295 | |||||||||
Accounts receivable - trade, net of allowances of $1,619 and $1,501, respectively | 59,543 | 53,838 | |||||||||
Inventories, net | 141,864 | 133,790 | |||||||||
Prepaid expenses and other current assets | 6,895 | 5,876 | |||||||||
Total current assets | 253,241 | 256,419 | |||||||||
| Property and equipment, net | 46,941 | 49,555 | |||||||||
| Other assets: | |||||||||||
| Amortizable intangible assets, net | 61,668 | 64,802 | |||||||||
Goodwill | 118,586 | 109,269 | |||||||||
Other intangible assets | 12,200 | 12,909 | |||||||||
Other non-current assets | 16,451 | 15,676 | |||||||||
Total other assets | 208,905 | 202,656 | |||||||||
| Total assets | $ | 509,087 | $ | 508,630 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Current liabilities: | |||||||||||
Accounts payable - trade | $ | 24,485 | $ | 18,786 | |||||||
Accrued compensation and benefits | 16,657 | 13,693 | |||||||||
Current portion of long-term debt with affiliate | 174 | 170 | |||||||||
Current portion of acquisition installment payable | 1,691 | 2,194 | |||||||||
Other current liabilities | 12,625 | 11,354 | |||||||||
Total current liabilities | 55,632 | 46,197 | |||||||||
| Long-term liabilities: | |||||||||||
Long-term term loan | 48,560 | 48,189 | |||||||||
Long-term convertible note | 48,961 | 48,486 | |||||||||
Long-term debt with affiliate, net of current portion | 152 | 283 | |||||||||
| Other long-term debt, net of current portion | 515 | 2,862 | |||||||||
Acquisition installment payable, net of current portion | 3,053 | 2,898 | |||||||||
| Deferred income taxes | 3,140 | 3,582 | |||||||||
| Other long-term liabilities | 9,724 | 9,537 | |||||||||
Total long-term liabilities | 114,105 | 115,837 | |||||||||
| Total liabilities | 169,737 | 162,034 | |||||||||
Stockholders' equity: | |||||||||||
Common stock, $0.00025 par value; 50,000,000 shares authorized; 26,115,126 shares and 25,093,792 shares issued as of September 30, 2026 and December 31, 2025, respectively | 7 | 6 | |||||||||
Additional paid-in capital | 637,299 | 622,325 | |||||||||
Accumulated deficit | (298,992) | (275,212) | |||||||||
Accumulated other comprehensive income (loss) | 1,036 | (523) | |||||||||
Total stockholders' equity | 339,350 | 346,596 | |||||||||
| Total liabilities and stockholders' equity | $ | 509,087 | $ | 508,630 | |||||||
ORTHOPEDIATRICS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In Thousands, Except Share and Per Share Data)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net revenue | $ | 72,661 | $ | 61,250 | $ | 202,530 | $ | 174,743 | |||||||||||||||
| Cost of revenue | 18,685 | 15,976 | 52,798 | 47,188 | |||||||||||||||||||
| Gross profit | 53,976 | 45,274 | 149,732 | 127,555 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
Sales and marketing | 23,096 | 18,652 | 62,860 | 54,327 | |||||||||||||||||||
General and administrative | 32,029 | 29,155 | 95,866 | 89,878 | |||||||||||||||||||
Intangible asset impairment | 611 | 2,268 | 611 | 2,268 | |||||||||||||||||||
| Restructuring | — | 2,294 | 1 | 5,305 | |||||||||||||||||||
Research and development | 2,465 | 2,333 | 7,021 | 6,843 | |||||||||||||||||||
Total operating expenses | 58,201 | 54,702 | 166,359 | 158,621 | |||||||||||||||||||
| Operating loss | (4,225) | (9,428) | (16,627) | (31,066) | |||||||||||||||||||
| Other expense (income): | |||||||||||||||||||||||
Interest expense, net | 2,617 | 1,822 | 7,248 | 4,064 | |||||||||||||||||||
Fair value adjustment of contingent consideration | (814) | — | (814) | — | |||||||||||||||||||
Other expense (income), net | 11 | 648 | 765 | (5,705) | |||||||||||||||||||
Total other expense (income), net | 1,814 | 2,470 | 7,199 | (1,641) | |||||||||||||||||||
| Net loss before income taxes | $ | (6,039) | $ | (11,898) | (23,826) | (29,425) | |||||||||||||||||
| Income tax (benefit) charge | (109) | (125) | (46) | 120 | |||||||||||||||||||
| Net loss | $ | (5,930) | $ | (11,773) | $ | (23,780) | $ | (29,545) | |||||||||||||||
| Weighted average common stock - basic and diluted | 24,153,621 | 23,565,779 | 23,964,171 | 23,420,158 | |||||||||||||||||||
Net loss per share – basic and diluted | $ | (0.25) | $ | (0.50) | $ | (0.99) | $ | (1.26) | |||||||||||||||
ORTHOPEDIATRICS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)(In Thousands)
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| OPERATING ACTIVITIES | |||||||||||
| Net loss | $ | (23,780) | $ | (29,545) | |||||||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||
Goodwill and other intangible asset impairments | 611 | 4,163 | |||||||||
Depreciation and amortization | 17,048 | 15,517 | |||||||||
Stock-based compensation | 12,592 | 13,362 | |||||||||
Fair value adjustment of contingent consideration | (814) | — | |||||||||
Accretion of acquisition installment payable | 365 | 105 | |||||||||
| Deferred income taxes | (393) | 120 | |||||||||
| Non-cash other | 695 | (88) | |||||||||
Changes in certain operating assets and liabilities, net of acquisitions: | |||||||||||
Accounts receivable - trade | (4,717) | (8,270) | |||||||||
Inventories | (4,922) | (7,893) | |||||||||
Prepaid expenses and other current assets | (579) | 176 | |||||||||
Accounts payable - trade | 5,299 | (1,961) | |||||||||
Accrued expenses and other liabilities | 1,816 | 790 | |||||||||
Other | (1,074) | (1,675) | |||||||||
| Net cash provided by (used in) operating activities | 2,147 | (15,199) | |||||||||
| INVESTING ACTIVITIES | |||||||||||
| Other acquisitions, including clinics, net of cash acquired | (8,410) | (8,852) | |||||||||
| Sale of short-term marketable securities | 15,000 | — | |||||||||
| Investment in private companies and purchases of licenses | (810) | (2,007) | |||||||||
| Purchase of short-term marketable securities | — | (15,000) | |||||||||
| Purchases of property and equipment | (8,716) | (10,511) | |||||||||
| Net cash used in investing activities | (2,936) | (36,370) | |||||||||
| FINANCING ACTIVITIES | |||||||||||
| Proceeds from issuance of debt | — | 25,000 | |||||||||
| Payment on debt issuance costs | (289) | — | |||||||||
| Payments on mortgage notes | (127) | (119) | |||||||||
| Payments on acquisition notes | (2,464) | (489) | |||||||||
| Net cash (used in) provided by financing activities | (2,880) | 24,392 | |||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (100) | 284 | |||||||||
| NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (3,769) | (26,893) | |||||||||
| Cash, cash equivalents and restricted cash, beginning of year | $ | 21,620 | $ | 45,777 | |||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 17,851 | $ | 18,884 | |||||||
| 2026 | 2025 | ||||||||||
| SUPPLEMENTAL DISCLOSURES | |||||||||||
| Cash paid for interest | $ | 5,646 | $ | 4,562 | |||||||
| Transfer of instruments between property and equipment and inventory | $ | 2,611 | $ | 1,881 | |||||||
| Right-of-use assets obtained in exchange for lease liabilities | $ | 2,838 | $ | 4,812 | |||||||
| Issuance of common shares to settle an obligation with a vendor | $ | — | $ | 1,261 | |||||||
| Issuance of common shares for MedTech installment | $ | 2,398 | $ | 226 | |||||||
| Issuance of common shares in connection with acquisitions | $ | 1,656 | $ | — | |||||||
| Issuance of common shares in connection with Boston O&P acquisition | $ | — | $ | 233 | |||||||
| Capital contribution associated with reclassification of MedTech liability to equity | $ | — | $ | 2,062 | |||||||
ORTHOPEDIATRICS CORP.
NET REVENUE BY GEOGRAPHY AND PRODUCT CATEGORY
(Unaudited)
(In Thousands)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| Product sales by geographic location: | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||
U.S. | $ | 57,890 | $ | 48,718 | $ | 157,990 | $ | 137,757 | |||||||||||||||||||||||||||
International | 14,771 | 12,532 | 44,540 | 36,986 | |||||||||||||||||||||||||||||||
Total | $ | 72,661 | $ | 61,250 | $ | 202,530 | $ | 174,743 | |||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| Product sales by category: | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||
Trauma and deformity | $ | 52,623 | $ | 44,143 | $ | 148,300 | $ | 123,665 | |||||||||||||||||||||||||||
Scoliosis | 19,172 | 16,261 | 51,490 | 48,447 | |||||||||||||||||||||||||||||||
Sports medicine/other | 866 | 846 | 2,740 | 2,631 | |||||||||||||||||||||||||||||||
Total | $ | 72,661 | $ | 61,250 | $ | 202,530 | $ | 174,743 | |||||||||||||||||||||||||||
ORTHOPEDIATRICS CORP.
RECONCILIATION OF NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
TO FREE CASH FLOW
(Unaudited)
(In Thousands)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities (GAAP) | $ | 4,506 | $ | (581) | $ | 2,147 | $ | (15,199) | ||||||||||||||||||||||||||||||||||||||||||
Less: Capital expenditures | (2,911) | (2,839) | (8,716) | (10,511) | ||||||||||||||||||||||||||||||||||||||||||||||
Free cash flow (non-GAAP) | $ | 1,595 | $ | (3,420) | $ | (6,569) | $ | (25,710) | ||||||||||||||||||||||||||||||||||||||||||
ORTHOPEDIATRICS CORP.
RECONCILIATION OF NET LOSS TO NON-GAAP ADJUSTED EBITDA
(Unaudited)
(In Thousands)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net loss | $ | (5,930) | $ | (11,773) | $ | (23,780) | $ | (29,545) | |||||||||||||||
Interest expense, net | 2,617 | 1,822 | 7,248 | 4,064 | |||||||||||||||||||
Other expense (income), net | 11 | 648 | 765 | (5,705) | |||||||||||||||||||
| Income tax charge (benefit) | (109) | (125) | (46) | 120 | |||||||||||||||||||
Depreciation and amortization | 5,621 | 5,299 | 17,048 | 15,517 | |||||||||||||||||||
| Intangible asset impairment | 611 | 2,268 | 611 | 2,268 | |||||||||||||||||||
Stock-based compensation | 4,419 | 4,251 | 12,592 | 13,362 | |||||||||||||||||||
| Fair value adjustment of contingent consideration | (814) | — | (814) | — | |||||||||||||||||||
| Restructuring charges | — | 2,294 | 1 | 5,305 | |||||||||||||||||||
| Tariffs | 178 | 306 | 570 | 954 | |||||||||||||||||||
| European Union Medical Device Regulation fees increase | — | — | — | 109 | |||||||||||||||||||
Acquisition-related costs | 342 | 943 | 1,691 | 2,532 | |||||||||||||||||||
| Minimum purchase commitment cost | — | 261 | — | 960 | |||||||||||||||||||
| Adjusted EBITDA | $ | 6,946 | $ | 6,194 | $ | 15,886 | $ | 9,941 | |||||||||||||||
ORTHOPEDIATRICS CORP.
RECONCILIATION OF DILUTED LOSS PER SHARE TO NON-GAAP ADJUSTED DILUTED LOSS PER SHARE
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Loss per share, diluted (GAAP) | $ | (0.25) | $ | (0.50) | $ | (0.99) | $ | (1.26) | |||||||||||||||
| Intangible asset impairment | 0.03 | 0.10 | 0.03 | 0.10 | |||||||||||||||||||
| Fair value adjustment of contingent consideration | (0.03) | — | (0.03) | — | |||||||||||||||||||
| Restructuring charges | — | 0.10 | — | 0.23 | |||||||||||||||||||
| Tariffs | 0.01 | 0.01 | 0.02 | 0.04 | |||||||||||||||||||
| European Union Medical Device Regulation fees increase | — | — | — | — | |||||||||||||||||||
| Acquisition-related costs | 0.01 | 0.04 | 0.07 | 0.11 | |||||||||||||||||||
| Minimum purchase commitment cost | — | 0.01 | — | 0.04 | |||||||||||||||||||
| Loss per share, diluted (non-GAAP) | $ | (0.23) | $ | (0.24) | $ | (0.90) | $ | (0.74) | |||||||||||||||