OrthoPediatrics Achieves 17% Q4 Growth, $10M Cash Flow and FDA Approval for 3P Small Mini
OrthoPediatrics reported Q4 2025 revenue growth of 17% and achieved its first positive free cash flow quarter, generating $10 million. International revenue rose 33% and the company received FDA approval for its 3P Small Mini system while projecting adjusted EBITDA of $25 million in 2026 on stable 73% gross margins.
1. Strong Q4 Financial Performance
OrthoPediatrics posted 17% year-over-year revenue growth in Q4 2025 and generated $10 million in free cash flow, its first positive cash flow quarter. The company reported a GAAP net loss of $0.43 per share as operating expenses rose 7% due to higher sales and marketing costs.
2. Product Launches and FDA Approval
The company introduced its 3P hip system and Vertiglide devices and secured FDA approval for the 3P Small Mini system, expanding its pediatric orthopedic portfolio. International revenue grew 33% in Q4 2025, driven by EUMDR approval and increased surgeon adoption of the EOS portfolio in Europe.
3. Outlook and Strategic Challenges
Management expects gross margins to remain around 73% in 2026 with adjusted EBITDA rising from $15 million to $25 million on leveraged sales and G&A expenses. The firm plans to expand into additional pediatric subspecialties but faces competitive pressure in the scoliosis segment and concerns over reduced R&D investment impacting future innovation.