KIDSHIGH SIGNALFINANCIAL10-K

OrthoPediatrics shows strong revenue growth (+38%) but alarming cash deterioration with cash reserves falling 55% to $19.6M while debt increased 37% to $106M.

The company is experiencing rapid growth but burning through cash at an unsustainable rate, creating potential liquidity concerns. While operating cash flow improved significantly from -$27M to -$4.9M, the company remains cash flow negative despite strong revenue performance, suggesting underlying profitability challenges that require close monitoring.

Comparing 2026-03-04 vs 2025-03-05View on EDGAR →
FINANCIAL ANALYSIS

OrthoPediatrics delivered impressive revenue growth of 38% to $98M with gross profit increasing 16% to $172.7M, while reducing R&D expenses by 17.5%. However, the financial picture is concerning as cash reserves plummeted 55% to just $19.6M while total debt surged 37% to $106M and total liabilities increased 37% to $162M. Despite operating cash flow improving dramatically from -$27M to -$4.9M, the company remains cash flow negative, and the combination of depleted cash, increased leverage, and ongoing cash burn creates potential liquidity risks that could constrain future growth.

FINANCIAL STATEMENT CHANGES
Operating Cash Flow
Cash Flow
+82.1%
-$27.0M→-$4.9M

Operating cash flow surged 82.1% — exceptional cash generation, highest quality earnings signal.

Cash & Equivalents
Balance Sheet
-55.4%
$43.8M→$19.6M

Cash declined 55.4% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Revenue
P&L
+37.9%
$71.1M→$98.0M

Strong top-line growth of 37.9% — accelerating demand or successful expansion into new markets.

Total Debt
Balance Sheet
+36.8%
$77.5M→$106.0M

Debt increased 36.8% — substantial leverage increase; assess whether deployed for growth or covering losses.

Total Liabilities
Balance Sheet
+36.6%
$118.6M→$162.0M

Liabilities grew 36.6% — significant increase in debt or obligations, assess impact on financial flexibility.

Current Liabilities
Balance Sheet
+36%
$34.0M→$46.2M

Current liabilities surged 36% — significant near-term obligations; verify ability to meet short-term debt.

Accounts Receivable
Balance Sheet
+27.1%
$42.4M→$53.8M

Receivables grew 27.1% — monitor days sales outstanding for collection efficiency.

Capital Expenditure
Cash Flow
-22.1%
$14.3M→$11.1M

Capex reduced 22.1% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

R&D Expense
P&L
-17.5%
$11.0M→$9.1M

R&D spending cut 17.5% — could signal cost discipline or concerning reduction in innovation investment.

Gross Profit
P&L
+16.2%
$148.6M→$172.7M

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

LANGUAGE CHANGES
NEW — 2026-03-04
PRIOR — 2025-03-05
ADDED
As of February 28, 2026, the registrant had 25,278,787 outstanding shares of common stock, $0.00025 par value per share.
Management's Discussion and Analysis of Financial Condition and Results of Operations 76 Item 7A.
Food and Drug Administration FDASIA Food and Drug Administration Safety and Innovation Act FDCA Federal Food, Drug and Cosmetic Act FERA Fraud Enforcement Recovery Act of 2009 Foundation The Armstrong Children's Orthopedic Alliance (ACOA) GAAP U.S.
MPFL Medial patellofemoral ligament O P Orthotic and prosthetic OP EU B.V.
OP EU B.V., a holding company established by the Company in March 2019 Orthopediatrics do Brasil Ltda.
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REMOVED
As of March 1, 2025, the registrant had 24,286,590 outstanding shares of common stock, $0.00025 par value per share.
Management's Discussion and Analysis of Financial Condition and Results of Operations 75 Item 7A.
Food and Drug Administration FDASIA Food and Drug Administration Safety and Innovation Act FDCA Federal Food, Drug and Cosmetic Act FERA Fraud Enforcement Recovery Act of 2009 Foundation The Foundation for Advancing Pediatric Orthopedics GAAP U.S.
UK or United Kingdom The United Kingdom of Great Britain and Northern Ireland UKCA Mark UK Conformity Assessed marking is a new UK product marking that is used for goods being placed on the market in Great Britain (England, Wales and Scotland) Vilex Vilex in Tennessee, Inc., which was acquired by the Company on June 4, 2019 and substantially all its assets were sold on December 31, 2019 to a wholly-owned subsidiary of Squadron Capital, LLC 5 FORWARD-LOOKING STATEMENTS The Company from time to time includes forward-looking statements in its oral and written communication.
On August 15, 2022, we raised net proceeds of approximately $139.3 million from a public offering of (a) 1,091,250 shares our common stock, and (b) pre-funded warrants exercisable for an aggregate of up to 1,525,000 shares of common stock to Squadron Capital LLC ( Squadron ), our largest investor.
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