0001425450-26-000013
SEC filingOrthoPediatrics Corp. reported net revenue of $236.3 million for FY 2025, representing growth from $204.7 million in FY 2024. The company incurred a net loss of $39.6 million, an increase from a net loss of $37.8 million in the prior year. Gross profit was $172.7 million with a gross margin of 73.1%. Operating loss was $39.2 million, driven by total operating expenses of $211.9 million, which included significant sales and marketing ($72.7M) and general and administrative ($119.8M) costs, as well as restructuring ($5.6M) and intangible asset impairment ($4.6M) charges. The company ended the period with total assets of $508.6 million, total liabilities of $162.0 million, and stockholders' equity of $346.6 million. Net cash used in operating activities was $4.9 million, while net cash used in investing activities was $43.6 million, primarily for acquisitions and purchases of property and equipment. The company's growth was supported by strategic acquisitions and expansion into international markets, though it continues to face challenges in achieving profitability.
OrthoPediatrics Corp. reported FY 2025 net revenue of $236.3 million, a 15.4% increase from $204.7 million in FY 2024. Despite revenue growth, the company recorded a net loss of $39.6 million, compared to a net loss of $37.8 million in the prior year. The operating loss was $39.2 million, driven by high operating expenses totaling $211.9 million. Gross profit improved to $172.7 million with a gross margin of 73.1%, up from 72.6% in FY 2024. The company's financial position shows total assets of $508.6 million, liabilities of $162.0 million, and stockholders' equity of $346.6 million as of December 31, 2025.
Revenue growth was driven by strong performance in the Trauma and Deformity Correction segment, which generated $166.3 million (70% of total revenue), representing a 14.6% year-over-year increase. The Scoliosis segment contributed $66.0 million (28% of total revenue), growing 19.6% year-over-year. The Sports Medicine/Other segment declined 9.1% to $4.0 million (2% of total revenue). Geographically, approximately 21% of revenue came from international customers, consistent with the prior year. The company's growth strategy includes strategic acquisitions, such as Boston O&P and various clinics, and expansion into new markets like Brazil.
Gross margin improved slightly to 73.1% from 72.6% in FY 2024, reflecting efficient cost management despite inflationary pressures. However, operating expenses increased significantly to $211.9 million, including $72.7 million in sales and marketing, $119.8 million in general and administrative, $9.1 million in research and development, $5.6 million in restructuring, and $4.6 million in intangible asset impairment. The operating loss margin was -16.6%. The company's inability to achieve profitability continues due to high investment in growth initiatives, acquisitions, and operational expansion.
Net cash used in operating activities was $4.9 million, an improvement from $27.0 million used in FY 2024. Investing activities used $43.6 million, primarily for acquisitions ($15.5M), purchases of short-term marketable securities ($15.0M), and property and equipment ($11.1M). Financing activities provided $24.0 million, mainly from debt issuance. Cash and restricted cash decreased by $24.2 million to $21.6 million. The balance sheet shows strong liquidity with total current assets of $256.4 million, including $19.6 million in cash, $41.3 million in short-term investments, and $133.8 million in inventories. Total debt includes a $48.5 million term loan and $48.5 million convertible note.
The company faces risks including ongoing losses, dependence on third-party manufacturers, regulatory challenges, and competition. Management's strategy focuses on expanding product portfolios, increasing investment in consigned implant sets, selective clinic acquisitions, and deepening clinical education programs. The company aims to leverage its exclusive focus on pediatric orthopedics to capture market opportunities estimated at $6.2 billion globally. However, achieving profitability remains uncertain due to continued investment needs and operational challenges. Key risk factors include potential disruptions from health emergencies, changes in reimbursement policies, and integration risks from acquisitions.