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OrthoPediatrics (2X7) Q3 2026 Earnings Report

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DE:2X7 Q3 2026 EPS Results

Actual EPS
-EUR 0.22
Consensus EPS
-EUR 0.19
Beat/Miss
Missed by -EUR 0.03
One Year Ago EPS
-EUR 0.21

DE:2X7 Q3 2026 Revenue Results

Actual Revenue
EUR 65.06M
Expected Revenue
EUR 61.33M
Beat/Miss
Beat by +EUR 3.73M
YoY Revenue Growth
+18.63%

Earnings Announcement Details

Quarter
Q3 2026
Date
10/27/2026
Time
After Close
Conference Call
Tuesday, October 27, 2026
DE:2X7 Upcoming Earnings

OrthoPediatrics's next earnings date is estimated for March 10, 2027, based on past reporting schedules.

Q3 2026 Earnings Call Audio

DE:2X7 Q3 2026 Earnings Call
0:00 / 0:00

Q3 2026 Earnings Slide Deck

No slide deck is available for this earnings event.

Q3 2026 Earnings Call Summary

Q3 2026
Earnings Call Date:Oct 27, 2026|% Change Since:41.18%|
Earnings Call Sentiment|Positive

The call was strongly positive, with record revenue, 19% quarterly growth, a raised full-year revenue outlook, record adjusted EBITDA, positive quarterly free cash flow, strong demand across core businesses, and substantial progress in product launches and clinic expansion. The main challenges were that many super-cycle products remain in limited launch, eLLi commercialization is largely a 2028-2029 opportunity, year-to-date free cash flow remains negative, and operating expenses and commissions increased. Overall, the breadth and magnitude of the reported growth and management's confidence outweighed the timing and investment-related challenges.

Company Guidance

The company raised full year 2026 revenue guidance to the range of $270 million to $273 million, representing growth of 14% to 16%, reiterated adjusted EBITDA guidance of approximately $25 million, and continues to expect to deploy approximately $10 million in sets and achieve free cash flow break-even or better in 2026, with free cash flow positive in 2027 and beyond; year to date free cash flow was about $6 million of usage, requiring $6 million of positive free cash flow in the fourth quarter to reach breakeven or better for the year, and fourth-quarter gross margin was projected at 73%.

  • Record Quarterly Revenue and Broad-Based GrowthThird-quarter 2026 revenue reached a record $72.7 million, up 19% from $61.2 million in the prior-year period. Growth was driven by strong demand across implants and OPSB, trauma and deformity, scoliosis, international operations, legacy portfolio share gains, and new product contributions.
  • Raised Full-Year Revenue GuidanceThe company raised its full-year 2026 revenue guidance to $270 million to $273 million, representing growth of 14% to 16%, from the earlier 11% to 13% growth outlook referenced during the call.
  • Record Adjusted EBITDA and Improving Cash FlowAdjusted EBITDA was a record $6.9 million versus $6.2 million in the third quarter of 2025, with an adjusted EBITDA margin of approximately 10%. Year-to-date EBITDA was approximately $16 million versus $10 million last year, a 60% improvement. Third-quarter free cash flow was positive $1.6 million versus $3.4 million used in the prior-year period, a $5 million improvement.
  • Strong Trauma and Deformity PerformanceGlobal trauma and deformity revenue was $52.6 million, up 19% from $44.1 million. Growth was driven by cannulated screws, the company's femur products, PD plates, the addition of 3P Hip, continued OPSB growth, legacy implant share gains, and healthy demand for super-cycle products.
  • Promising 3P and PNP Product ProgressThe 3P Hip system progressed from limited launch to full commercial launch and began contributing revenue. 3P Small and 3P Mini remain in limited launch with positive results at key opinion leader hospitals. The company also surpassed 1,000 PNP Tibia implantations, launched PNP Retrograde on a limited basis after FDA clearance, and reported its first successful October cases with positive surgeon feedback.
  • OPSB Growth Above 20%OPSB delivered growth above 20%, supported by new products, same-store sales growth, and clinic expansion. The company completed the full market release of the PD Hip rigid brace, also known as Hippo, and began the limited launch of the OPSB Knee TractorFIX orthosis.
  • Expansion of OPSB Product Portfolio and ClinicsThe OPSB portfolio grew to 34 systems from 31 at the start of the year. The company now has more than 60 clinics, more than double its total from a few years ago, and said clinic expansion is ahead of expectations. The strategy includes sales representative growth, new product development, and clinic expansion.
  • Strong TRAXEO DemandThe company completely sold out of the initial limited units of TRAXEO, its halo gravity traction system, and is accelerating its 2027 build to meet market demand as the product moves toward full market release.
  • Strong Scoliosis PerformanceGlobal scoliosis revenue increased 18% to $19.2 million from $16.3 million. Growth was primarily driven by increased revenue from VerteGlide and RESPONSE Fusion, continued share gains, and strong underlying implant demand. VerteGlide adoption is expanding, with approximately 125 surgeons trained and more than 40 hospitals utilizing the product.
  • Expanded Scoliosis PipelineThe company continues developing its scoliosis portfolio, including VerteGlide, ApiFix, RESPONSE Fusion, TRAXEO, Firefly, 7D, pediatric bracing products, the eLLi growing implant, and the next-generation Veraxis fusion system. Management described the setup for the scoliosis business over the next several years as very good.
  • International Revenue GrowthInternational revenue increased 18% to $14.8 million from $12.5 million, representing approximately 20% of total revenue. EMEA delivered strong growth across trauma and deformity, scoliosis, and bracing, while LATAM delivered solid underlying performance excluding lower set sales.
  • Strong U.S. Revenue GrowthU.S. revenue was $57.9 million, up 19% from $48.7 million and representing approximately 80% of total revenue. Growth was driven by trauma and deformity, scoliosis, and continued OPSB performance.
  • Stable Gross Margin Despite Mix and 7D SalesThird-quarter gross profit margin was 74%, in line with the prior-year period, despite 7D unit sales in the quarter compared with none in the prior-year period. Favorable performance, faster domestic growth, and contributions from new products helped offset the lower gross margin profile of OPSB relative to implants.
  • Improved Operating Leverage and Lower Restructuring CostsTotal operating expense increased 6% to $58 million from $54.7 million, while revenue increased 19%. There were no restructuring expenses in the quarter compared with $2.3 million in the third quarter of 2025.
  • Lower GAAP Net Loss Per ShareGAAP net loss per basic and diluted share improved to $0.25 from $0.50 in the prior-year period. Non-GAAP net loss per share was $0.23 versus $0.24.
  • Improved Liquidity and Disciplined Capital DeploymentThe company ended the quarter with $45 million in cash, short-term investments, and restricted cash, plus $20 million of available term loan capacity. Set deployment was $2.5 million versus $4.1 million in the prior-year period, reflecting a focus on higher-return systems.
  • 2026 Cash Flow and EBITDA Targets ReiteratedManagement reiterated adjusted EBITDA guidance of approximately $25 million, expected set deployment of approximately $10 million, and a goal of achieving free cash flow break-even or better in 2026. Management said it remains confident in reaching the free cash flow target.
  • Positive Clinical Demand EnvironmentManagement reported very healthy procedure volumes in children's hospitals, strong pediatric orthopedic conditions, and very strong clinic volumes in the third quarter. The company said it did not see anything that would jeopardize the outlook heading into the fourth quarter and 2027.
  • Super-Cycle Product Economics and Long-Term OpportunityManagement stated that super-cycle products generally have higher ASPs, higher margins, more efficient sets, faster cash returns, and the ability to pull through legacy products. The products also provide contracting leverage and are expected to support revenue, profitability, free cash flow, and capital efficiency over multiple years.
  • Rapid DF2 AdoptionDF2 has been adopted by nearly half of U.S. children's hospitals. Management described it as one of the fastest-adopted products in the company's history and said it has relatively high ASPs, strong margins, and no inventory deployment requirement.
  • Positive EU MDR and European Expansion ProgressRecent EU MDR approvals are enabling ongoing product launches in EMEA. The company said it now has the majority of its RESPONSE product portfolio available in Europe and is seeing strong scoliosis growth in the region.
  • Commercial and Contracting LeverageThe majority of hospitals are on some form of contract. Management said differentiated products such as 3P Hip can support single-vendor or high dual-vendor arrangements reaching 50%, 60%, 70%, or even 80% market share in a hospital, while also increasing utilization of legacy products already on the shelf.

DE:2X7 Earnings History

DE:2X7 earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Mar 10, 20272026 (Q4)-0.19--0.39――
Oct 27, 20262026 (Q3)-0.19-0.22-0.21-4.17% (-0.01)
Aug 04, 20262026 (Q2)-0.27-0.27-0.1-172.73% (-0.17)
Apr 30, 20262026 (Q1)-0.41-0.40-0.35-15.38% (-0.05)
Feb 26, 20262025 (Q4)-0.26-0.39-0.26-48.28% (-0.13)
Oct 28, 20252025 (Q3)-0.23-0.21-0.16-33.33% (-0.05)
Aug 05, 20252025 (Q2)-0.26-0.10-0.2152.17% (+0.11)
May 07, 20252025 (Q1)-0.39-0.35-0.27-30.00% (-0.08)
Mar 04, 20252024 (Q4)-0.27-0.26-0.21-26.09% (-0.05)
Nov 06, 20242024 (Q3)-0.20-0.16-0.12-38.46% (-0.04)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed