OrthoPediatrics Corp. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for Q3 2026 reached a record $72.7 million, a 19% increase year-over-year (YoY) from $61.2 million in Q3 2025.
• U.S. revenue was $57.9 million (80% of total), up 19% YoY; International revenue was $14.8 million (20% of total), up 18% YoY.
• Gross profit was $54.0 million, up 19% YoY from $45.3 million; gross profit margin remained consistent at 74%.
• Total operating expenses increased 6% YoY to $58.2 million from $54.7 million, driven by higher sales commissions and personnel costs for clinic expansions and acquisitions.
• Net loss narrowed to $5.9 million ($0.25 per share) from $11.8 million ($0.50 per share) in the prior year period.
• Adjusted EBITDA reached a record $6.9 million, up from $6.2 million in Q3 2025.
• Free cash flow generated was $1.6 million, a $5.0 million improvement compared to $3.4 million of usage in Q3 2025.
• Cash, cash equivalents, short-term investments, and restricted cash totaled $44.9 million as of September 30, 2026, down from $62.9 million as of December 31, 2025.
• Total liabilities increased to $169.7 million from $162.0 million; total assets were $509.1 million compared to $508.6 million.

Guidance and Future Outlook:

• Full-year 2026 revenue guidance increased to $270.0 million–$273.0 million from the previous range of $265.0 million–$269.0 million, representing 14%–16% growth over 2025.
• The Company expects annual set deployment to be approximately $10.0 million for 2026.
• Full-year 2026 adjusted EBITDA is expected to be approximately $25.0 million.
• The Company expects to achieve breakeven free cash flow on an annual basis in 2026 and beyond.
• Management anticipates a "strong pipeline of new products" over the next several years to deliver higher value and improved capital efficiency.

Business Segments and Product Lines:

• Trauma & Deformity revenue grew 19% YoY to $52.6 million, driven by Cannulated Screws, PNP Femur, PediPlates, the 3P Hip system, and OPSB growth.
• Scoliosis revenue grew 18% YoY to $19.2 million, driven by VerteGlide and Response products.
• Sports Medicine/Other revenue was $0.9 million, a 2% increase YoY.
• Full market release of the 3P™ Pediatric Plating Platform® Hip System and the PediHip Rigid Brace.
• Limited launches included PNP Retrograde, OPSB® Knee 'TractorFIX, and 3P™ Pediatric Plating Platform® Small Mini.
• The Company helped nearly 42,000 children in Q3 2026.

Market and Competitive Landscape:

• The Company gained market share in Trauma and Deformity and Scoliosis globally.
• Growth was primarily driven by increased procedure volumes.
• The Company markets over 95 systems across Trauma and Deformity, Scoliosis, and Sports Medicine/Other in the U.S. and over 75 countries.
• Significant unmet needs in pediatric orthopedics remain a key opportunity.

Risks and Challenges:

• Intangible asset impairment of $0.6 million was recorded due to the fair value of ApiFix and MedTech trademark assets falling below carrying value.
• Foreign exchange losses impacted results, driven by the decline in the Euro exchange rate during the quarter.
• Total other expense was $1.8 million, influenced by a $0.8 million non-cash fair value adjustment of contingent consideration and increased interest expense.
• Forward-looking statements cite risks including widespread health emergencies (e.g., respiratory syncytial virus) and factors detailed in the Form 10-K.

Management Commentary and Tone:

• President & CEO David Bailey stated the Company continued to build momentum, drive revenue growth, and improve profitability.
• Management expressed confidence in driving metrics forward, citing the "innovation super cycle" and a strong product pipeline.
• The tone emphasized capitalizing on unmet needs and delivering innovative solutions while focusing on operating performance and annual breakeven free cash flow.

Other Key Points:

• The Company completed small-scale acquisitions and expanded its clinic footprint, contributing to increased G&A and sales expenses.
• A $0.8 million non-cash fair value adjustment of contingent consideration related to acquisition earn-outs was recorded.
• The Company reiterated its focus on growing the business and improving operating performance.
• A conference call was scheduled for October 27, 2026, at 4:30 p.m. ET.