OrthoPediatrics Reports $52.4 Million Revenue in Q1 2025, Despite Increased Net Loss

OrthoPediatrics Corp. reported a net revenue of $52.4 million for the first quarter of 2025, marking a 17% increase from $44.7 million in the same period of 2024. The growth was primarily driven by strong sales in the trauma and deformity correction, scoliosis, and specialty bracing product lines. Trauma and deformity sales rose by 14% to $37.9 million, while scoliosis sales surged by 34% to $13.7 million. Despite the revenue increase, the company recorded a net loss of $10.7 million, compared to a loss of $7.8 million in the prior year, reflecting a 37% increase in losses attributed to higher operating expenses.

Total operating expenses for the quarter increased to $49.2 million, up from $41.9 million in the previous year. This rise was driven by a 22% increase in general and administrative expenses, which reached $30.3 million, largely due to additional personnel from clinic acquisitions and increased stock compensation. Sales and marketing expenses also rose by 17% to $16.6 million, reflecting higher sales commission expenses. The company’s gross margin improved slightly to 73% from 72% year-over-year, despite a 13% increase in the cost of revenue, which totaled $14.1 million.

In terms of strategic developments, OrthoPediatrics completed the acquisition of Boston Brace International, Inc. in January 2024, which has expanded its product offerings in pediatric orthotic and prosthetic devices. The company continues to operate approximately 35 orthotic and prosthetic clinics across the United States, enhancing its service delivery to pediatric patients. As of March 31, 2025, OrthoPediatrics had 24,827,977 shares of common stock outstanding, reflecting an increase from the previous quarter.

Operationally, the company has focused on expanding its geographic reach and product adoption. It markets its products in over 75 countries and has established direct sales operations in several European markets, including Germany and Australia. The company reported a cash balance of $33.4 million as of March 31, 2025, down from $43.8 million at the end of 2024, with cash used in operating activities amounting to $4.2 million for the quarter. The company anticipates continued investment in product development and market expansion, which may lead to ongoing operating losses in the near term.

Looking ahead, OrthoPediatrics aims to strengthen its market position by increasing investments in consigned implant and instrument sets and expanding its product offerings. The company is also monitoring the impact of market conditions, including the effects of respiratory illnesses on elective procedures, which have historically influenced its sales volume. Management remains optimistic about future growth opportunities within the pediatric orthopedic market, which is estimated to represent a $6.2 billion global opportunity.