OrthoPediatrics (KIDS) Q3 2026 earnings summary

Executive summary

• Record Q3 revenue of $72.7M, up 19% YoY, with record adjusted EBITDA of $6.9M and positive free cash flow of $1.6M.

• Net loss narrowed to $5.9M from $11.8M; nearly 42,000 children were helped during the quarter, and cumulative impact surpassed 1.4M children.

• Global share gains, OPSB momentum and new-product launches supported growth; broader Innovation Super Cycle contribution is expected from 2027 onward.

Financial highlights

• Q3 revenue was $72.7M versus $61.2M; gross profit rose 19% to $54.0M and gross margin held at 74%.

• Operating expenses increased 6% to $58.2M; operating loss narrowed to $4.2M from $9.4M, and net loss narrowed to $5.9M from $11.8M.

• GAAP diluted loss per share was $0.25 versus $0.50; adjusted diluted loss per share was $0.23 versus $0.24.

• Adjusted EBITDA rose to $6.9M from $6.2M; Q3 free cash flow was $1.6M versus $3.4M used a year earlier.

• 9M revenue increased 16% to $202.5M; net loss narrowed to $23.8M from $29.5M, and operating cash flow was $2.1M versus $15.2M used.

Outlook and guidance

• FY26 revenue guidance raised to $270M–$273M from $265M–$269M, representing stated growth of 14%–16%; adjusted EBITDA guidance remained ~$25M.

• FY26 set deployment is expected to be ~$10M; free cash flow breakeven or better remains the 2026 target, with positive free cash flow expected in 2027 and beyond.

• Product launches are expected to support 2027 growth; 3P Small and Mini full release is expected in 1H27, and PNP Retrograde around mid-2027.

• Q4 guidance excludes potential Brazil set sales and substantial 7D sales; management described the outlook as measured.