OrthoPediatrics Reports Record Revenue and Raises Full-Year Guidance
On August 4, OrthoPediatrics Corp (NASDAQ:KIDS) reported second-quarter revenue exceeding $70 million for the first time in its history. The pediatric orthopedics company achieved a 15% year-over-year increase to $70.5 million and raised its full-year revenue guidance to between $265 million and $269 million, up from previous estimates of $263 million to $267 million. The growth was driven by strong performance in the Trauma and Deformity segment, which saw a 26% year-over-year increase. International sales grew faster than domestic ones at 22%, indicating global expansion success. Gross margin improved to 74%, adjusted EBITDA more than doubled to $6.8 million, and free cash flow usage dropped significantly. Despite the strong top-line growth, OrthoPediatrics continued to report a net loss of $7.2 million for the quarter—unchanged from last year—and faced challenges in its Scoliosis segment, which declined 9%. The company also experienced increased operating expenses and foreign exchange losses due to currency fluctuations.
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