OrthoPediatrics Corp. (NASDAQ: KIDS) reported first‑quarter 2026 revenue of $59.4 million, up 13% from $52.4 million a year earlier, and a net loss of $10.7 million, or $0.45 per share. The earnings per share beat the consensus estimate of –$0.48, a $0.03 improvement, while revenue surpassed the $58.34 million forecast by $1.06 million.
Adjusted EBITDA swung to $2.2 million from a $0.4 million loss in Q1 2025, reflecting a significant improvement in operating performance. The company’s gross margin remained steady at 73%, and the positive EBITDA indicates that cost controls and higher‑margin product mix are offsetting the flat net loss, which was largely driven by higher interest expense of $2.1 million versus $1.1 million a year earlier and a swing in other expenses from an income of $1.6 million to an expense of $0.4 million.
Segment analysis shows that the Trauma & Deformity business grew 14% to $43.0 million, the Scoliosis segment increased 13% to $15.4 million, and the OPSB (OrthoPediatrics Specialty Bracing) line continued to expand, supported by new product launches and clinic growth. International revenue rose 22% to $14.1 million, underscoring the company’s global momentum.
Management raised the full‑year 2026 revenue guidance to $263 million–$267 million, up from the prior $262 million–$266 million range, and reiterated expectations of $25 million in adjusted EBITDA and a breakeven free‑cash‑flow for the year. The guidance lift signals confidence in sustained demand and the early stages of a multiyear innovation super‑cycle.
Investors responded positively to the earnings beat and guidance raise. Analysts noted that the company’s revenue beat and EPS improvement were driven by strong demand in core segments, while the positive EBITDA swing highlighted improving profitability despite a flat net loss.
"We delivered a strong start to 2026 with 13% first quarter revenue growth and significant improvement in adjusted EBITDA and free cash flow, reflecting solid execution across the business," said President & CEO David Bailey. "Importantly, we’re at the earliest stages of a multiyear innovation super cycle… Early trends are reinforcing our expectations for higher ASPs, margin expansion and improved capital efficiency as each of these products continue to scale," he added. CFO Fred Hite noted, "our first quarter of 2026 worldwide revenue of $59.4 million increased 13% compared to the first quarter of 2025. Adjusted EBITDA was $2.2 million in the first quarter of 2026 compared to a loss of $0.4 million in the first quarter of 2025." He also added regarding guidance, "We also continue to expect to generate approximately $25 million of adjusted EBITDA, deploy approximately $10 million in sets and to achieve free cash flow breakeven in 2026."
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