Earnings call transcript: OrthoPediatrics posts record Q3 2026 revenue, lifts outlook

OrthoPediatrics reported record third-quarter revenue of $72.7 million, a 19% increase from the previous year and exceeding Wall Street's estimate of $68.49 million. Adjusted loss per share matched expectations at $0.23. Shares rose 6.63% in after-hours trading to $25.40, after closing at $23.82 in regular session, driven by revenue growth and a higher full-year sales outlook.

Revenue set a quarterly record, led by growth in trauma, deformity, and scoliosis products. OrthoPediatrics raised full-year 2026 revenue guidance to $270 million to $273 million, up from a prior range suggesting slower growth. New products like 3P Hip, TRAXIO, and VerteGlide began to contribute more meaningfully to the business.

The company treated nearly 42,000 children in the quarter, totalizing over 1.4 million since its founding. After-hours trading showed positive investor response, with the stock nearing its 52-week high. U.S. revenue rose to $57.9 million, up 19% year-over-year, while international revenue increased to $14.8 million, up 18% year-over-year.

Gross margin remained at 74%, gross profit margin consistent with the prior year at 73.65%. Adjusted EBITDA reached $6.9 million, up from $6.2 million a year earlier, with an adjusted EBITDA margin of 10%. GAAP net loss per share was $0.25, compared to $0.50 in the prior quarter, while non-GAAP net loss per share was $0.23, down from $0.24 a year earlier.

Free cash flow stood at $1.6 million, compared to $3.4 million used in the prior year. Year-to-date EBITDA hit $16 million, up from $10 million a year earlier.