OrthoPediatrics posts record $72.7M quarter, raises 2026 sales outlook
The kids-only orthopedic device maker beat Wall Street's revenue forecast, and investors pushed the stock higher after hours.
OrthoPediatrics, a U.S. company that makes bone and spine implants built specifically for children, reported record third-quarter revenue of $72.7 million, up 19% from $61.2 million a year earlier. The figure beat the Wall Street estimate of $68.49 million, and the company raised its full-year 2026 sales guidance to a range of $270 million to $273 million.
Why does this matter beyond the stock ticker? Most orthopedic devices are designed for adults and then scaled down. OrthoPediatrics builds tools for growing bodies, from fracture repair to scoliosis correction. The company says it helped nearly 42,000 children this quarter and more than 1.4 million since it started.
The growth was broad. Trauma and deformity products brought in $52.6 million, while scoliosis added $19.2 million. Its specialty bracing line grew above 20% as the company opened more clinic locations. U.S. sales rose 19% to $57.9 million, and international sales climbed 18% to $14.8 million. Management said procedure volumes at children's hospitals stayed healthy and that it sees no major headwinds into the fourth quarter or 2027.
New products are starting to pull their weight. The company named 3P Hip, TRAXIO and VerteGlide as launches that are contributing more meaningfully to sales.
The profit picture is improving but still in the red. Adjusted loss per share was $0.23, exactly what analysts expected and slightly better than $0.24 a year ago. The GAAP loss narrowed to $0.25 per share from $0.50. Adjusted EBITDA rose to $6.9 million from $6.2 million, a 10% margin, and gross margin held at 74%. The company generated $1.6 million in free cash flow, against $3.4 million burned in the same quarter last year.
Investors liked what they saw. The stock slipped 0.83% in the regular session to close at $23.82, then jumped 6.63% after hours to $25.40. That puts it about 5% below its 52-week high of $26.74. Shares are up about 40% over the past year, and the company's market value stands near $622 million.
The takeaway: sales are accelerating, losses are shrinking, and the company is leaning on new products and clinics to keep that going. Read the full earnings call coverage at Investing.com.
