OrthoPediatrics (KIDS) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $70.5 million, up 15% year-over-year, driven by strong Trauma & Deformity and OPSB performance, with international revenue up 22%.

• Adjusted EBITDA reached a record $6.8 million, with significant improvement in free cash flow usage, down 78% year-over-year.

• Gross margin improved to 74% from 72% year-over-year, reflecting higher sales volume and favorable product mix.

• Net loss for Q2 2026 was $7.2 million, with EPS at $(0.30), flat year-over-year.

• Raised full-year 2026 revenue guidance to $265–$269 million (12–14% growth) and reiterated adjusted EBITDA guidance of ~$25 million.

Financial highlights

• U.S. revenue grew 14% to $54.8 million, representing 78% of total revenue; international revenue was $15.7 million, up 22%.

• Trauma & Deformity global revenue increased 26% to $52.6 million, led by strong implant demand and new product launches.

• Scoliosis global revenue declined 9% to $16.9 million due to timing of 7D unit and Brazil set sales, but underlying implant growth was in the mid-teens.

• Sports medicine and other revenue was $1.0 million, up from $0.9 million year-over-year.

• Free cash flow usage improved to $3.1 million, a 78% reduction from the prior year.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $265–$269 million, representing 12–14% growth.

• Adjusted EBITDA guidance reiterated at ~$25 million; positive free cash flow expected in the second half and breakeven or better for the full year.

• Management expects continued losses in the near term as investments in product portfolio and consigned inventory expand.

• Liquidity remains strong with $47.9 million in cash, cash equivalents, and short-term investments as of June 30, 2026.

• Set deployment expected to total ~$10 million for the year, with most occurring in Q3.