$KIDS

ORTHOPEDIATRICS CORP

CIK:0001425450|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Net revenue	$ 70,508	$ 61,082	$ 129,869	$ 113,493
Cost of revenue	18,142	17,063	34,113	31,212
Gross profit	52,366	44,019	95,756	82,281
Operating expenses:
Sales and marketing	21,294	19,103	39,764	35,675
General and administrative	32,814	30,443	63,837	60,723
Restructuring	1	2,971	1	3,011
Research and development	2,325	2,159	4,556	4,510
Total operating expenses	56,434	54,676	108,158	103,919
Operating loss	(4,068)	(10,657)	(12,402)	(21,638)
Other expense (income):
Interest expense, net	2,528	1,116	4,631	2,242
Other expense (income), net	333	(4,709)	754	(6,353)
Total other expense (income), net	2,861	(3,593)	5,385	(4,111)
Net loss before income taxes	(6,929)	(7,064)	(17,787)	(17,527)
Income tax charge	234	49	63	245
Net loss	$ (7,163)	$ (7,113)	$ (17,850)	$ (17,772)
Weighted average shares outstanding - basic (in shares)	24,048,690	23,460,144	23,867,877	23,346,141
Weighted average shares outstanding - diluted (in shares)	24,048,690	23,460,144	23,867,877	23,346,141
Net loss per share - basic (in dollars per share)	$ (0.30)	$ (0.30)	$ (0.75)	$ (0.76)
Net loss per share - diluted (in dollars per share)	$ (0.30)	$ (0.30)	$ (0.75)	$ (0.76)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
OPERATING ACTIVITIES
Net loss	$ (17,850)	$ (17,772)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	11,427	10,218
Stock-based compensation	8,173	9,111
Accretion of acquisition installment payable	220	98
Deferred income taxes	(82)	245
Non-cash other	161	(100)
Changes in certain operating assets and liabilities:
Accounts receivable - trade	(6,536)	(11,381)
Inventories	(2,553)	(8,899)
Prepaid expenses and other current assets	201	(501)
Accounts payable - trade	3,140	3,720
Accrued expenses and other liabilities	2,209	2,509
Other	(869)	(1,866)
Net cash used in operating activities	(2,359)	(14,618)
INVESTING ACTIVITIES
Other acquisitions, including clinics, net of cash acquired	(5,936)	(320)
Sale of short-term marketable securities	13,000	0
Investment in private companies and purchases of licenses	(330)	(1,540)
Loss on investment in private companies	284	0
Purchases of property and equipment	(5,805)	(7,672)
Net cash provided by (used in) investing activities	1,213	(9,532)
FINANCING ACTIVITIES
Proceeds from issuance of debt	0	25,000
Payment on debt issuance costs	(289)	0
Payments on mortgage notes	(85)	(78)
Payments on acquisition notes	(977)	(248)
Net cash (used in) provided by financing activities	(1,351)	24,674
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(68)	304
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(2,565)	828
Cash, cash equivalents and restricted cash, beginning of year	21,620	45,777
Cash, cash equivalents and restricted cash, end of period	19,055	46,605
SUPPLEMENTAL DISCLOSURES
Cash paid for interest	3,741	2,552
Transfer of instruments between property and equipment and inventory	(980)	651
Right-of-use assets obtained in exchange for lease liabilities	1,265	3,311
Capital contribution associated with reclassification of MedTech liability to equity	0	2,062
Medtech
SUPPLEMENTAL DISCLOSURES
Issuance of common shares in connection with Boston O&P acquisition	2,398	226
LOC Acquisition
SUPPLEMENTAL DISCLOSURES
Issuance of common shares in connection with Boston O&P acquisition	1,656	0
Boston Brace International, Inc
SUPPLEMENTAL DISCLOSURES
Issuance of common shares in connection with Boston O&P acquisition	0	233
Vendor
SUPPLEMENTAL DISCLOSURES
Issuance of common shares in connection with Boston O&P acquisition	$ 0	$ 1,261

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash	$ 17,001	$ 19,556
Restricted cash	2,054	2,064
Short-term investments	28,878	41,295
Accounts receivable - trade, net of allowances of $1,680 and $1,501, respectively	60,951	53,838
Inventories, net	137,567	133,790
Prepaid expenses and other current assets	6,057	5,876
Total current assets	252,508	256,419
Property and equipment, net	48,552	49,555
Other assets:
Amortizable intangible assets, net	63,745	64,802
Goodwill	118,461	109,269
Other intangible assets	12,819	12,909
Other non-current assets	15,303	15,676
Total other assets	210,328	202,656
Total assets	511,388	508,630
Current liabilities:
Accounts payable - trade	22,239	18,786
Accrued compensation and benefits	15,590	13,693
Current portion of long-term debt with affiliate	172	170
Current portion of acquisition installment payable	1,103	2,194
Other current liabilities	13,748	11,354
Total current liabilities	52,852	46,197
Long-term liabilities:
Long-term convertible note	48,803	48,486
Other long-term debt, net of current portion	2,022	2,862
Acquisition installment payable, net of current portion	2,962	2,898
Deferred income taxes	3,311	3,582
Other long-term liabilities	9,192	9,537
Total long-term liabilities	114,922	115,837
Total liabilities	167,774	162,034
Stockholders' equity:
Common stock, $0.00025 par value; 50,000,000 shares authorized; 26,111,426 shares and 25,093,792 shares issued as of June 30, 2026 and December 31, 2025, respectively	7	6
Additional paid-in capital	633,437	622,325
Accumulated deficit	(293,062)	(275,212)
Accumulated other comprehensive income (loss)	3,232	(523)
Total stockholders' equity	343,614	346,596
Total liabilities and stockholders' equity	511,388	508,630
Nonrelated Party
Long-term liabilities:
Long-term term loan	48,436	48,189
Related Party
Long-term liabilities:
Long-term term loan	$ 196	$ 283