OrthoPediatrics Corp. (NASDAQ: KIDS) reported preliminary unaudited revenue of $236.1 million for 2025, a 15 % increase from the $204.7 million recorded in 2024. The company’s fourth‑quarter revenue rose 16 % to $52.7 million from $44.3 million in Q4 2024, underscoring a steady top‑line expansion across the year.
The growth was driven by the company’s core implant businesses. Trauma & Deformity and Scoliosis segments each contributed double‑digit revenue gains, while the specialty bracing (OPSB) franchise accelerated as new set deployments expanded. OPSB’s capital‑efficient model added a significant margin‑enhancing component, offsetting the mix shift that pressured gross margins in the implant lines.
Gross margin compression in 2025 was largely a result of a higher mix of international Scoliosis set sales and the introduction of newer, higher‑cost implant models. Despite this, adjusted EBITDA reached $25 million, reflecting disciplined cost management and the benefit of OPSB’s lower operating expense profile. Free‑cash‑flow usage fell sharply year‑over‑year, moving the company closer to free‑cash‑flow positivity.
For 2026, OrthoPediatrics guided revenue of $262 million to $266 million, an 11 % to 13 % year‑over‑year increase, and maintained an adjusted EBITDA target of approximately $25 million. The guidance includes an estimated $10 million in new set deployments, reinforcing the company’s focus on scaling the OPSB network while preserving pricing power and margin quality.
CEO David Bailey highlighted the company’s “continued momentum in our Trauma & Deformity and Scoliosis implant businesses, and the expanding specialty bracing (OPSB) franchise.” He added that the company helped over 37,500 children in the fourth quarter alone and has served nearly 1.3 million patients since inception, positioning OrthoPediatrics to capture a larger share of the $6.2 billion global pediatric orthopedics market.
The results and guidance signal a strong trajectory toward profitability and free‑cash‑flow positivity, reinforcing OrthoPediatrics’ competitive advantage in a niche market and providing investors with a clearer view of its near‑term financial outlook.
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