OrthoPediatrics Q3: Revenue Up 19% to $72.7M, Loss Narrows, Operating Cash Flow Turns Positive
KIDS has more than doubled off its 52-week low of $14.42 on elevated volume (3.7× avg).
Summary
OrthoPediatrics' Q3 10-Q confirms the already-reported $72.7M revenue and $5.93M loss, but adds a swing to positive operating cash flow, $44.9M of liquidity, a new IRS exam of fiscal 2024, and six new insider selling plans.
Key Events · Earnings and Guidance · KIDS
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Q3 Revenue Grows 19% to $72.7M
Net revenue rose to $72.661M from $61.250M, driven by trauma and deformity sales of $52.623M (+19%) and scoliosis of $19.172M (+18%). Nine-month revenue reached $202.530M, up 16%.
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Loss Narrows, Cash Flow Turns Positive
Q3 net loss was $5.930M (-$0.25 per share) versus $11.773M (-$0.50) a year ago. Nine-month operating cash flow was +$2.147M versus -$15.199M in 2025, helped by $5.299M of higher payables and better receivables collection.
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Liquidity of $44.9M Plus Undrawn $20M Facility
Cash, restricted cash and short-term investments totaled $44.9M at September 30, 2026, and the March 31, 2026 Braidwell Amendment added a $20.0M delayed draw term loan that remained undrawn. Management says this funds operations beyond the next twelve months.
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New IRS Examination of Fiscal 2024
The company disclosed it was notified in the fourth quarter of 2026 that the IRS is examining the year ended December 31, 2024, and that it is in the early stages of evaluating scope and potential impact.
Analysis · KIDS · Industrial Applications And Services
The quarter itself was already public — Dow Jones reported the $5.93M loss and $72.7M revenue on October 27 — so the headline numbers won't reprice the stock. What is new in the 10-Q is the quality of the beat: operating cash flow swung to positive $2.1M for the nine months from a $15.2M burn a year earlier, and the company ended September with $44.9M of cash, restricted cash and short-term investments plus an undrawn $20M delayed draw facility. That combination pushes out any near-term financing need even though the accumulated deficit has grown to $299.0M. Two items cut the other way: the company disclosed a new IRS examination of fiscal 2024 that it says it is only beginning to evaluate, and six senior insiders — including the CEO, CFO and Chairman — adopted 10b5-1 selling plans in August and September covering 121,772 shares, on top of heavy 10% holder distribution over the past 90 days.
How filings like this one have moved
In the 30 days to Oct 28, 2026, 30.7% of the 1698 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, KIDS was trading at $30.74 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $802.6M. The 52-week trading range was $14.42 to $31.17. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.