Q2 2026 OrthoPediatrics Corp Earnings Call Transcript
Key Points
- Record Q2 revenue of $70.5 million, up 15% year-over-year, driven by strong trauma and deformity (26% growth) and OPSB (over 20% growth) performance.
- Record adjusted EBITDA of $6.8 million, with margin expansion to nearly 10%, reflecting improved operating leverage and gross margin (74% vs. 72% last year).
- Significant free cash flow improvement, with usage down 78% year-over-year, and reaffirmed guidance for positive free cash flow in the second half and breakeven or better for the full year.
- Innovation supercycle is gaining traction, with early contributions from 3P HIP and VertiGlide, and a deep pipeline including 3P Small Mini, ELI, VIRAXIS, and OPSB products like DF2 and Traxio.
- Strong international growth of 22%, driven by record performance in Europe and early benefits from EUMDR approvals, expanding market access.
- Raised full-year revenue guidance to $265-$269 million (12-14% growth), reflecting confidence in continued momentum.
- OPSB business continues to scale with over 150 children's hospitals adopting DF2, and new products like MACU4 and TractorFix expanding the portfolio.
- Disciplined capital allocation with set deployment down to $2.9 million in Q2, focusing on high-return systems and improving return on capital.
- Scoliosis revenue declined 9% year-over-year due to zero 7D unit sales (vs. multiple units last year) and significantly lower set sales in Brazil, masking strong underlying implant growth.
- GAAP net loss per share remained at $0.30, with non-GAAP net loss per share worsening to $0.26 from $0.11, driven by unrealized non-cash foreign exchange losses.
- Total other expense swung to a $2.9 million loss from $3.6 million income, primarily due to Euro depreciation, impacting reported profitability.
- International growth was partially offset by lower set sales in Brazil, where the company is balancing cash collections and normalizing ordering patterns.
- Management expects Q3 and Q4 revenue to be slightly lower than Q2, reflecting seasonality and timing of 7D and international set sales.
- Adjusted EBITDA guidance of $25 million was reiterated despite strong Q2, indicating management conservatism and potential for continued FX headwinds.
- The company remains in a net loss position, with cash and investments at $47.9 million, though it has $20 million of term loan availability.
- Set deployment for new products (3P HIP, VertiGlide) only began late in Q2, meaning the full revenue impact is still ahead and may be gradual.
Good afternoon, and welcome to the Orthopediatrics Corporation Second Quarter 2026 Conference Call. At this time, all participants are in a listen-only mode. We will be facilitating a question-and-answer session towards the end of today's call. As a reminder, this call is being recorded for replay purposes.
I would now like to turn the call over to Tripp Taylor from the Gilmartin Group for a few introductory comments.
Thank you for joining today's call. With me from the company are David Bailey, President and Chief Executive Officer and Fred Heit, Chief Operating and Financial Officer. Before we begin today, let me remind you that the company's remarks include forward-looking statements within the meaning of federal securities laws, including the safe harbor provisions of the Private Securities Litigation Reform Act of 1,995.
These forward-looking statements are subject to numerous risks and uncertainties, and the company's actual results may differ materially. For a discussion of risk factors, I
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
