OrthoPediatrics Reports $61.1 Million Revenue in Q2 2025, Faces Increased Net Loss

OrthoPediatrics Corp. reported a net revenue of $61.1 million for the second quarter of 2025, marking a 16% increase from $52.8 million in the same period last year. For the first half of 2025, the company achieved revenues of $113.5 million, also a 16% rise compared to $97.5 million in the first half of 2024. The growth was primarily driven by strong sales in the Trauma and Deformity, Scoliosis, and Specialty Bracing product lines. However, the company continues to face challenges, posting a net loss of $7.1 million for the quarter, up from a loss of $6.0 million in the prior year, and a total loss of $17.8 million for the first half, compared to $13.8 million in 2024.

In terms of operational metrics, OrthoPediatrics has expanded its product offerings and geographic reach. The company now markets 82 surgical and specialized bracing systems across over 75 countries, with significant sales growth in the U.S. market, which accounted for $48.1 million of the quarterly revenue. International sales also increased, contributing $12.9 million in the second quarter. The company has been actively acquiring clinics and expanding its network, with a focus on enhancing its presence in pediatric orthopedic care.

The company has made strategic moves to bolster its financial position, including a significant debt financing arrangement. In August 2024, OrthoPediatrics entered into a $100 million term loan and convertible note agreement with Braidwell LP, which has provided liquidity to support its operations and growth initiatives. As of June 30, 2025, the company reported cash and cash equivalents of $46.6 million, alongside restricted cash and short-term investments totaling $72.2 million. This financial cushion is critical as the company continues to invest in inventory and expand its product portfolio.

Despite the revenue growth, OrthoPediatrics has seen an increase in operating expenses, particularly in sales and marketing, which rose by 15% to $19.1 million for the second quarter. General and administrative expenses also increased by 11% to $30.4 million, driven by additional personnel costs from clinic acquisitions. The company has initiated a global restructuring plan aimed at improving operational efficiency, which has resulted in a restructuring expense of $3.0 million for the quarter.

Looking ahead, OrthoPediatrics remains focused on expanding its market share and product offerings while managing its operational costs. The company anticipates continued investment in its consigned implant and instrument sets to support growth in both existing and new markets. However, it acknowledges the ongoing challenges posed by market conditions, including the impact of health emergencies on elective procedures, which could affect future sales volumes. The management is committed to monitoring cash flows and liquidity to ensure the sustainability of operations in the coming months.