OrthoPediatrics (KIDS) Stifel 2026 Healthcare Conference 2026 summary

Third-quarter performance and cash flow

• Revenue grew 19% in Q3 across Trauma and Deformity, Scoliosis, international and OPSB; OPSB grew >20%, and EBITDA reached a record.

• Management cited balanced growth and strong legacy-product pull-through alongside new-product contributions.

• Q3 generated positive free cash flow; management expects at least $6M in Q4 and reiterated its 2026 FCF break-even goal, after $10M positive FCF in Q4 last year.

Near-term outlook and international growth

• Q4 is typically seasonally weaker than Q2 and Q3; management expects to guide conservatively after a robust summer.

• 7D sales remain excluded from most guidance due to uncertain timing; Latin America set sales are being limited to support AR and prioritize profitable sales and FCF.

• International replenishment demand is growing faster than reported results suggest, amid Brazil and LATAM headwinds and tough set-sale comps.

• EU MDR approvals are enabling early launches of established U.S. products in Europe; the Super Cycle is not yet reflected in international forecasts for 2027.

Product cycle and growth runway

• Super Cycle products primarily add indications and case coverage rather than replace existing products, opening new pediatric treatment opportunities.

• 3P Hip is ahead of plan, contributed in Q3, and is expected to add more in Q4 and H1 2027 as more sets are deployed; 3P Small Mini is in limited release.

• 3P Small Mini is expected to progress toward full market release in 2027; 3P Femur and additional systems are planned for H2 2027 and 2028.

• Management expects Super Cycle products to contribute a larger share of sales in 2027–2028 and beyond, with generally higher ASPs, better margins and improved capital utilization.

• eLLi IDE approval is expected hopefully in early 2027, followed by first cases; full approval timing depends on FDA requirements for patient follow-up.