Orthopediatrics Stock Earnings Reports

OrthoPediatrics reported a solid start to 2026 with Q1 revenue of $59.4M, up 13% year-over-year, driven by Trauma & Deformity (14% growth), Scoliosis (13%), and OPSB (over 20%). The company supported treatment of a record 45,000 pediatric patients in Q1 and has helped nearly 1.4M cumulatively. Management reiterated a multi-year "innovation super cycle" of product launches (notably 3P Hip / 3P Small-Mini, VerteGlide, Veraxis, eLLi, TRAXIO, PNP systems) that they expect to drive higher ASPs, margin expansion, and improved capital efficiency as launches scale. They raised full-year 2026 revenue guidance to $263M–$267M (11%–13% growth), reaffirmed ~ $25M adjusted EBITDA target and full-year free cash flow breakeven in 2026. Adjusted EBITDA improved to $2.2M (from a loss) and Q1 free cash flow used improved to $5.0M (40% better YOY). Gross margin remained strong at 73%; operating expenses rose modestly with sales & marketing up due to commissions and volume. Set deployments are down vs. prior years ($2.3M vs $3.6M in Q1 2025), but management emphasized new-product deployments are more revenue- and capital-efficient. International grew >20% (EMEA strong; EU MDR approvals completed for key portfolios), and the company bought a Brazilian distributor to stabilize cash collection and ordering. They added a $20M delayed-draw term loan to increase financial flexibility. Management remains disciplined on pacing set deployments and capital use while prioritizing profitability and sustainable free cash flow, but signals potential to accelerate deployments in later years as the product cycle matures.