OrthoPediatrics Corp. reported record full‑year revenue of $236.3 million, a 15 % increase from $204.7 million in 2024. Fourth‑quarter revenue rose to $61.6 million, up 17 % from $52.7 million a year earlier. Growth was driven by the Trauma & Deformity, Scoliosis, and Specialty Bracing (OPSB) segments, which together captured the majority of the top‑line expansion.
GAAP earnings per share for the quarter were –$0.43, missing the consensus estimate of –$0.30, while non‑GAAP EPS of –$0.26 beat the estimate of –$0.37. The full‑year GAAP EPS of –$1.69 was slightly lower than the –$1.64 reported in 2024, reflecting the company’s continued focus on scaling revenue while managing cost growth. The non‑GAAP beat was driven by a favorable product mix and pricing power that offset higher operating expenses.
Operating cash flow increased by $22 million over the year, and the company generated $10 million of free cash flow in the fourth quarter, marking the first positive free‑cash‑flow quarter in its history. The improvement was largely due to higher operating cash flow and disciplined capital spending, which together lifted the company’s cash‑flow profile.
Adjusted EBITDA for the year reached $14.8 million, up from $8.5 million in 2024, reflecting stronger margin performance and a higher product mix. Gross profit margin expanded to 73.1 % from 72.6 % in 2024, driven by pricing gains and a shift toward higher‑margin specialty bracing products. Management reiterated 2026 guidance of $262 million to $266 million in revenue and $25 million in adjusted EBITDA, and confirmed a target of free‑cash‑flow breakeven for the full year, underscoring confidence in continued growth and profitability.
President & CEO David Bailey said, “In 2025, we delivered strong operational execution, advanced our strategic priorities, and further solidified our leadership in pediatric orthopedics. Our Trauma, Deformity, and Scoliosis implant businesses continued to gain market share, support revenue growth, and improve profitability, while our specialty bracing business remains a compelling, capital‑efficient growth platform that is deepening customer relationships and performing ahead of our expectations.” He added, “We closed out 2025 strong with 17 % fourth‑quarter revenue growth, representing growth across the entire business, improved adjusted EBITDA over the prior period, and generated $10 million of fourth‑quarter free cash flow, which is our first quarter of positive free cash flow in the company’s history.” CFO Fred Hite noted, “We expect gross margins to remain around 73 % in 2026, with adjusted EBITDA increasing from $15 million in 2025 to $25 million in 2026. This growth will be driven by leverage in sales, marketing, and G&A expenses, particularly as OPSB grows faster than the overall business.”
Investors responded positively to the results, citing the company’s strong growth trajectory, first positive free cash flow, and confident outlook for 2026.
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