OrthoPediatrics (KIDS) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 2025 revenue of $61.3 million, up 12% year-over-year, driven by strong trauma, deformity, and scoliosis product lines.

• Supported treatment of over 37,100 children in Q3, totaling approximately 1.3 million children to date.

• Adjusted EBITDA improved 56% year-over-year to $6.2 million.

• Net loss widened to $11.8 million ($0.50 per share) due to higher operating and restructuring costs.

• Continued expansion of product portfolio and O&P clinic network, with significant investments in acquisitions and inventory.

Financial highlights

• Q3 2025 worldwide revenue was $61.2–$61.3 million, up 12% year-over-year; U.S. revenue grew 14% to $48.7 million, international revenue rose 6% to $12.5 million.

• Trauma & Deformity revenue increased 17% to $44.1 million; Scoliosis revenue up 4% to $16.3 million; Sports Medicine/Other declined 35% to $0.8 million.

• Gross profit margin improved to 74% from 73% last year, driven by favorable sales mix.

• Adjusted EBITDA rose 56% to $6.2 million; free cash flow usage improved to $3.4 million from $11.6 million year-over-year.

• Cash, cash equivalents, restricted cash, and short-term investments totaled $59.8 million as of September 30, 2025.

Outlook and guidance

• Full-year 2025 revenue expected between $233.5 million and $234.5 million, representing 14–15% growth.

• Adjusted EBITDA guidance maintained at $15 million–$17 million.

• Gross margin expected in the 72%–73% range for the year.

• Positive free cash flow anticipated in Q4 2025; breakeven targeted for 2026.

• Management anticipates continued near-term losses as investments in product expansion and consigned inventory persist.