OrthoPediatrics (KIDS) investor relations material

Executive summary

• Q1 2026 revenue grew 13% year-over-year to $59.4 million, with strong performance across Trauma & Deformity, scoliosis, and OPSB segments, and domestic revenue up 11% and international up 22%.

• Supported treatment of a record 45,000 children in Q1, extending cumulative impact to nearly 1.4 million kids.

• Adjusted EBITDA improved to $2.2 million from a loss of $0.4 million in Q1 2025.

• Net loss was $10.7 million, flat year-over-year, with net loss per share at $0.45.

• The company continues to expand its product portfolio and O&P clinic network, with recent acquisitions in the US, UK, Ireland, and Brazil.

Financial highlights

• U.S. revenue was $45.3 million (up 11% YoY), international revenue $14.1 million (up 22%), totaling $59.4 million.

• Gross profit increased 13% to $43.4 million, with gross margin steady at 73% year-over-year.

• Operating expenses rose 5% to $51.7 million, mainly due to higher personnel and stock compensation.

• Adjusted EBITDA was $2.2 million, up from a loss of $0.4 million in Q1 2025.

• Free cash flow used was $5.0 million, a 40% improvement from $8.4 million used in Q1 2025.

Outlook and guidance

• 2026 revenue guidance raised to $263–$267 million, representing 11–13% growth.

• Adjusted EBITDA for 2026 expected to be approximately $25 million, with breakeven free cash flow.

• Set deployment expected to be ~$10 million for 2026.

• International growth expected to outpace domestic for the remainder of the year.

• Sufficient liquidity projected for at least the next twelve months, supported by cash balances and credit.