Education
About Us
Working with TipRanks
Follow Us
OrthoPediatrics Corp (KIDS)
NASDAQ:KIDS
Top Page
OrthoPediatrics
(NASDAQ:KIDS)
Select Model
Select Model
Rating:52Neutral
Price Target:
$21.00
▲(11.17% Upside)
OrthoPediatrics' overall score is driven by its financial performance challenges, particularly in profitability and cash flow. While technical indicators are neutral, the company's strategic expansions and positive earnings call sentiment provide some optimism. Valuation remains a concern due to negative earnings.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust demand for OrthoPediatrics' products, enhancing its market position and supporting long-term business expansion.
Strategic Partnerships
The partnership with MY01 enhances OrthoPediatrics' product offerings and market reach, potentially driving future growth and innovation in trauma monitoring.
Market Expansion
Expanding the OPSB division into new territories strengthens OrthoPediatrics' market presence and meets growing demand for pediatric orthopedic care.
Negative Factors
Profitability Challenges
Ongoing profitability issues could hinder OrthoPediatrics' ability to reinvest in growth and innovation, affecting long-term financial health.
Cash Flow Issues
Negative cash flow trends may limit OrthoPediatrics' financial flexibility, impacting its ability to fund operations and strategic initiatives.
Gross Margin Decline
Declining gross margins could pressure OrthoPediatrics' profitability, necessitating cost management and efficiency improvements to sustain margins.
OrthoPediatrics (KIDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$485.17M
Dividend YieldN/A
Average Volume (3M)147.30K
Price to Earnings (P/E)―
Beta (1Y)0.84
Revenue Growth26.08%
EPS Growth-63.67%
CountryUS
Employees562
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.11
Shares Outstanding25,073,603
10 Day Avg. Volume170,180
30 Day Avg. Volume147,304
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue2.40
Enterprise Value/Gross Profit3.35
Enterprise Value/Ebitda-31.65
Forecast
1Y Price Target
$32.67Price Target Upside72.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
OrthoPediatrics Business Overview & Revenue Model
Company DescriptionOrthoPediatrics Corp., a medical device company, designs, develops, and markets anatomically appropriate implants and devices for the treatment of children with orthopedic conditions in the United States and internationally. The company offers trauma and deformity correction products; scoliosis procedures for the treatment of spinal deformity; and sports medicine and other products. Its products comprise PediLoc, PediPlates, cannulated screws, PediFlex nail, PediNail, PediLoc tibia, anterior cruciate ligament reconstruction systems, locking cannulated blades, locking proximal femurs, Spica Tables, RESPONSE Spine systems, Bandloc, Pediguard, Pediatric Nailing Platform, Femur system, Orthex, QuickPack, and ApiFix Mid-C system. The company serves pediatric orthopedic market, as well as pediatric orthopedic surgeons and caregivers. OrthoPediatrics Corp. was founded in 2006 and is headquartered in Warsaw, Indiana.
How the Company Makes MoneyOrthoPediatrics generates revenue primarily through the sale of its specialized orthopedic products and surgical instruments to hospitals, surgical centers, and medical professionals involved in pediatric care. The company's revenue model is based on direct sales of its proprietary products, which include a variety of orthopedic implants and systems. Additionally, the company participates in training and educational programs for surgeons, which can further drive product adoption and usage. Significant partnerships with hospitals and healthcare systems that utilize OrthoPediatrics' products also contribute to its revenue. Furthermore, the company may benefit from ongoing research and development efforts that lead to new product innovations, expanding its market reach and potential sales opportunities.
OrthoPediatrics Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial and operational performance, including record revenue growth and successful strategic expansions in key market segments such as Scoliosis and OPSB. However, there were challenges such as a decline in gross margin, slower than expected T&D growth, and restructuring charges. Overall, the positive aspects of the company's performance and future outlook significantly outweigh the negatives.Q2-2025 Updates
Positive Updates
Record-Breaking Revenue Growth
OrthoPediatrics reported record revenue with a global growth of 16% for Q2 2025, driven by market share gains across all businesses, including standout performances in Scoliosis, Trauma, and OPSB.
Strong Scoliosis Business Performance
The Scoliosis business saw a significant 35% growth in Q2 2025, driven by new surgeon adoption and increased demand in both U.S. and international markets.
OPSB Expansion Success
OPSB achieved growth exceeding 20% and surpassed initial 2025 territory expansion goals, with new clinics opened in major markets such as New York City and California.
Positive Adjusted EBITDA and Cash Flow Outlook
OrthoPediatrics reported a 50% improvement in adjusted EBITDA, with a projection to achieve positive free cash flow in Q4 2025 and full-year breakeven in 2026.
International Market Expansion
International sales increased by 12%, driven by strong surgical demand in Europe and scoliosis set sales, despite some challenges in Latin America.
Negative Updates
Gross Margin Decline
Gross profit margin decreased to 72% from 77% in the previous year, primarily due to higher international set sales and 7D growth, which have lower margins.
Slower T&D Growth
The Trauma and Deformity (T&D) business grew by 10%, but was slightly offset by slow elective limb deformity case scheduling and lower set sales in Latin America.
Restructuring Charges
Restructuring charges of $3 million were recorded, related to a global restructuring plan aimed at improving operational efficiency and reducing costs.
Company Guidance
During the OrthoPediatrics Corporation's second quarter 2025 earnings call, several key performance metrics and strategic initiatives were highlighted. The company achieved record revenue with a global growth rate of 16%, treating over 37,000 children in the quarter and over 1,217,000 since inception. Notably, the Scoliosis business grew by 35%, driven by increased demand in the U.S. and international markets. The Trauma and Deformity (T&D) segment expanded by 10%, despite slower set sales in Latin America. OrthoPediatrics raised its full-year revenue guidance from $236-242 million to $237-242 million and maintained an adjusted EBITDA expectation of $15-17 million, with the company anticipating its first positive free cash flow in Q4 2025. The Non-Surgical Specialty Bracing (OPSB) business grew over 20%, with significant clinic expansions, including new openings in California and Denver, as well as the first international clinic in Ireland. The company is also on track with its product development, having recently received FDA approval for sterile products and planning further innovations within its 3P Pediatric Plating Platform and EOS product portfolio.OrthoPediatrics Financial Statement Overview
Summary
OrthoPediatrics shows moderate revenue growth but struggles with profitability and cash flow management. The balance sheet is stable with low leverage, yet the company faces challenges in generating positive returns and cash flows.Income Statement
OrthoPediatrics shows moderate revenue growth with a 3.9% increase in TTM. However, profitability remains a concern with negative net profit and EBIT margins, indicating ongoing operational challenges. The gross profit margin is relatively strong at 70.56%, but the company needs to address its negative net income to improve overall financial health.45
Neutral
Balance Sheet
The balance sheet reflects a low debt-to-equity ratio of 0.07, suggesting conservative leverage and financial stability. However, the return on equity is negative, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio is not explicitly calculated, but the company's equity position appears strong relative to its assets.55
Neutral
Cash Flow
Cash flow analysis reveals negative operating and free cash flows, which are concerning for liquidity. The free cash flow to net income ratio is positive, suggesting some efficiency in converting earnings to cash, but the overall negative cash flow trends highlight potential liquidity risks.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 220.73M | 204.73M | 148.73M | 122.29M | 98.05M | 71.08M |
| Gross Profit | 157.91M | 148.60M | 111.25M | 90.66M | 73.40M | 55.03M |
| EBITDA | -16.74M | -10.44M | -8.38M | -8.69M | -7.19M | -22.35M |
| Net Income | -41.76M | -37.82M | -20.97M | 1.26M | -16.26M | -32.94M |
Balance Sheet | ||||||
| Total Assets | 503.61M | 473.21M | 438.75M | 427.73M | 304.27M | 320.41M |
| Cash, Cash Equivalents and Short-Term Investments | 70.15M | 68.83M | 80.31M | 118.29M | 53.54M | 83.90M |
| Total Debt | 97.17M | 80.90M | 10.06M | 907.00K | 1.04M | 1.18M |
| Total Liabilities | 148.09M | 118.64M | 61.72M | 49.08M | 78.91M | 85.64M |
| Stockholders Equity | 355.51M | 354.57M | 377.02M | 378.65M | 225.37M | 234.77M |
Cash Flow | ||||||
| Free Cash Flow | -37.67M | -41.31M | -46.03M | -31.80M | -29.07M | -29.83M |
| Operating Cash Flow | -28.88M | -27.05M | -27.05M | -21.77M | -13.06M | -18.53M |
| Investing Cash Flow | -38.71M | -13.16M | 41.68M | -113.37M | -7.41M | -69.69M |
| Financing Cash Flow | 82.65M | 53.13M | 7.30M | 135.97M | 6.00K | 46.73M |
OrthoPediatrics Technical Analysis
Negative
18.89
Price Trends
20.50
Negative
21.04
Negative
22.37
Negative
Market Momentum
-0.39
Positive
40.89
Neutral
11.49
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KIDS, the sentiment is Negative. The current price of 18.89 is below the 20-day moving average (MA) of 20.16, below the 50-day MA of 20.50, and below the 200-day MA of 22.37, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 40.89 is Neutral, neither overbought nor oversold. The STOCH value of 11.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KIDS.
OrthoPediatrics Risk Analysis
OrthoPediatrics disclosed 80 risk factors in its most recent earnings report. OrthoPediatrics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
OrthoPediatrics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | 613.46M | -25.26 | -18.51% | ― | 22.93% | 43.83% | |
54 Neutral | 584.52M | -4.66 | -26.99% | ― | 4.84% | 0.85% | |
53 Neutral | 569.66M | -931.08 | -0.10% | ― | 5.08% | 99.38% | |
52 Neutral | $485.17M | ― | -11.49% | ― | 26.08% | -63.67% | |
52 Neutral | 447.67M | -8.89 | -21.16% | ― | ― | ― | |
44 Neutral | 428.31M | -8.64 | -50.38% | ― | 7.67% | 23.79% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
KIDS
OrthoPediatrics
18.89
-7.27
-27.79%
OFIX
Orthofix
14.80
-0.58
-3.77%
SIBN
SI-Bone
14.22
0.41
2.97%
BVS
Bioventus
6.89
-4.16
-37.65%
TMCI
Treace Medical Concepts
6.78
0.98
16.90%
CBLL
Ceribell, Inc.
12.21
-13.29
-52.12%
OrthoPediatrics Corporate Events
Executive/Board Changes
OrthoPediatrics Announces Board Member Resignation and Replacement
Neutral
Aug 11, 2025
On August 7, 2025, OrthoPediatrics Corp. announced the resignation of Board member Terry Schlotterback due to retirement, effective August 8, 2025. Kelly Fischer, currently Senior Vice President and CFO of Cook Medical, was appointed to fill the vacancy and will serve on the Audit and Compensation Committees. The transition is not expected to impact the company’s operations or stakeholder interests significantly.
Business Operations and Strategy
OrthoPediatrics Highlights Strategic Focus in Presentations
Positive
Aug 5, 2025
OrthoPediatrics Corp. announced upcoming presentations to investors and analysts, highlighting its strategic focus on pediatric orthopedics. The company emphasizes its unique market position with a comprehensive product portfolio and global sales channel, aiming to expand its market through R&D and acquisitions, while continuing to support clinical education and innovation.
Product-Related AnnouncementsBusiness Operations and Strategy
OrthoPediatrics Expands Specialty Bracing Division Globally
Positive
Aug 5, 2025
On August 5, 2025, OrthoPediatrics Corp. announced the expansion of its OrthoPediatrics Specialty Bracing (OPSB) division with new clinics and entry into new territories, including California, Ohio, Colorado, New York, and Ireland. This strategic expansion aims to enhance access to pediatric orthopedic care, leveraging partnerships with major children’s hospitals and expanding into international markets, thereby positioning the company to meet the growing demand for pediatric bracing and orthopedic care.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.