OrthoPediatrics (KIDS) The Citizens Life Sciences Conference 2026 summary

Product innovation and pipeline

• Launching a 'Super Cycle' of new products, including both surgical and bracing systems, with 87 systems now available, up from 17 in 2017.

• Recent launches include pediatric nailing and plating platforms, with multiple new systems ramping through 2028.

• Scoliosis segment features new non-fusion alternatives like VertiGlide and ELLi, with first-in-human trials for ELLi in fall and broader launches through 2028.

• Enabling tech includes Playbook for OR efficiency, pre-surgical planning software, and iotaMotion for cochlear implants.

• Specialty bracing business expanding with new products and clinics, targeting over 20% growth annually for several years.

Financial performance and outlook

• Free cash flow expected to be positive in 2026, driven by improved EBITDA, efficient set deployment, and working capital management.

• EBITDA projected to rise from just under $15 million in 2025 to $25 million in 2026.

• Specialty bracing business offers capital efficiency and margin benefits, with expansion from 25 to over 45 clinics and plans for continued growth.

• Long-term growth anticipated from expanding clinic footprint, with a multi-year runway targeting hundreds of children’s hospitals.

Competitive landscape and market dynamics

• Larger competitors are withdrawing pediatric products due to EU MDR regulatory burdens, reducing competition and creating market opportunities.

• New products are positioned as improved solutions to fill gaps left by competitors exiting the market.

• 7D navigation device for scoliosis surgery offers zero-radiation navigation, unique in the pediatric space, but sales are lumpy and excluded from guidance.

• Sales force recruitment is steady, with talent attracted by mission and culture, and not significantly impacted by industry M&A.