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:
$18.50
▲(6.81% Upside)
The overall score reflects a mixed outlook. Financial performance is challenged by profitability and cash flow issues, while technical indicators show moderate momentum. Valuation concerns persist due to a negative P/E ratio. The earnings call provided positive insights into revenue growth and operational improvements, but short-term disruptions remain a risk.
Positive Factors
Revenue Growth
Strong revenue growth in core segments indicates robust demand for OrthoPediatrics' products, enhancing its market position and supporting long-term expansion.
Product Portfolio Expansion
The introduction of new products in the OPSB division strengthens OrthoPediatrics' competitive edge and diversifies its revenue streams, supporting sustainable growth.
Adjusted EBITDA Improvement
Significant improvement in adjusted EBITDA reflects enhanced operational efficiency, contributing to better financial health and potential profitability.
Negative Factors
Profitability Challenges
Ongoing profitability issues indicate challenges in cost management and pricing strategy, potentially affecting long-term financial sustainability.
Cash Flow Concerns
Negative cash flow suggests difficulties in generating sufficient cash from operations, which could limit investment in growth initiatives and impact liquidity.
Increased Operating Expenses
Rising operating expenses may pressure margins and hinder profitability, necessitating cost control measures to maintain financial stability.
OrthoPediatrics (KIDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$449.13M
Dividend YieldN/A
Average Volume (3M)190.65K
Price to Earnings (P/E)―
Beta (1Y)0.68
Revenue Growth19.90%
EPS Growth-57.90%
CountryUS
Employees562
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.24
Shares Outstanding25,077,330
10 Day Avg. Volume178,476
30 Day Avg. Volume190,654
Financial Highlights & Ratios
PEG Ratio-0.18
Price to Book (P/B)1.51
Price to Sales (P/S)2.61
P/FCF Ratio-12.95
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue2.10
Enterprise Value/Gross Profit2.93
Enterprise Value/Ebitda-33.13
Forecast
1Y Price Target
$24.00Price Target Upside38.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)-1.34
Revenue Forecast (FY)$234.00M
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 orthopedic surgical products, including implants and instruments tailored for pediatric use. The company operates on a business-to-business model, where it sells its products to hospitals, orthopedic clinics, and healthcare providers. Key revenue streams include direct product sales, as well as recurring revenues from instrument rental agreements and service contracts. Additionally, partnerships with healthcare institutions and participation in clinical studies help enhance product visibility and credibility, further driving sales. The company may also benefit from government and private insurance reimbursements for its surgical solutions, contributing to its overall financial performance.
OrthoPediatrics Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 11, 2026
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 modest revenue growth but struggles with profitability and cash flow. The balance sheet is strong with low leverage, but operational efficiency needs improvement to enhance profitability and cash generation.Income Statement
OrthoPediatrics shows a modest revenue growth rate of 3.03% in the TTM, indicating some positive momentum. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin remains strong at 71.73%, but the consistent negative net income highlights ongoing challenges in achieving profitability.45
Neutral
Balance Sheet
The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.14, suggesting conservative leverage. 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 strong equity base relative to total assets suggests a solid capital structure.55
Neutral
Cash Flow
Cash flow analysis reveals challenges, with negative operating cash flow and free cash flow. The free cash flow growth rate is negative, indicating deteriorating cash generation capabilities. The free cash flow to net income ratio is positive, suggesting some efficiency in converting net income to cash, but overall cash flow remains a concern.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 227.41M | 204.73M | 148.73M | 122.29M | 98.05M | 71.08M |
| Gross Profit | 163.12M | 148.60M | 111.25M | 90.66M | 73.40M | 55.03M |
| EBITDA | -14.42M | -10.44M | -8.38M | -8.69M | -7.19M | -22.25M |
| Net Income | -45.61M | -37.82M | -20.97M | 1.26M | -16.26M | -32.94M |
Balance Sheet | ||||||
| Total Assets | 493.49M | 473.21M | 438.75M | 427.73M | 308.40M | 324.83M |
| Cash, Cash Equivalents and Short-Term Investments | 57.73M | 68.83M | 80.31M | 118.29M | 54.91M | 85.27M |
| Total Debt | 99.34M | 80.90M | 10.06M | 907.00K | 28.51M | 26.52M |
| Total Liabilities | 144.18M | 118.64M | 61.72M | 49.08M | 83.03M | 90.06M |
| Stockholders Equity | 349.31M | 354.57M | 377.02M | 378.65M | 225.37M | 234.77M |
Cash Flow | ||||||
| Free Cash Flow | -29.43M | -41.31M | -46.03M | -31.80M | -29.07M | -29.83M |
| Operating Cash Flow | -19.19M | -27.05M | -27.05M | -21.77M | -13.06M | -18.53M |
| Investing Cash Flow | -38.78M | -13.16M | 41.68M | -113.37M | -7.41M | -69.69M |
| Financing Cash Flow | 23.85M | 53.13M | 7.30M | 135.97M | 6.00K | 46.73M |
OrthoPediatrics Technical Analysis
Negative
17.32
Price Trends
17.44
Negative
18.58
Negative
20.49
Negative
Market Momentum
0.11
Positive
44.71
Neutral
19.93
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 17.32 is below the 20-day moving average (MA) of 18.01, below the 50-day MA of 17.44, and below the 200-day MA of 20.49, indicating a bearish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 44.71 is Neutral, neither overbought nor oversold. The STOCH value of 19.93 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $622.38M | 69.10 | 4.97% | ― | 1.58% | ― | |
61 Neutral | $1.53B | -7.35 | -109.73% | ― | 17.87% | -57.03% | |
55 Neutral | $615.77M | -5.09 | -24.60% | ― | 4.31% | 3.26% | |
52 Neutral | $449.13M | -8.86 | -12.67% | ― | 19.90% | -57.90% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $494.56M | -6.89 | -13.95% | ― | 4.14% | -45.29% | |
42 Neutral | $172.04M | -3.25 | -51.63% | ― | 7.90% | 19.92% |
* Healthcare Sector Average
KIDS
OrthoPediatrics
17.32
-5.27
-23.33%
OFIX
Orthofix
15.47
-1.72
-10.01%
TNDM
Tandem Diabetes Care
22.42
-10.85
-32.61%
VREX
Varex Imaging
11.91
-2.47
-17.18%
BVS
Bioventus
7.76
-2.76
-26.24%
TMCI
Treace Medical Concepts
2.58
-4.32
-62.61%
OrthoPediatrics Corporate Events
Business Operations and Strategy
OrthoPediatrics Highlights Strategic Focus in Presentations
Positive
Oct 28, 2025
OrthoPediatrics Corp. has announced upcoming presentations to investors and analysts, highlighting their strategic focus on pediatric orthopedics. The company emphasizes its commitment to innovation and growth, with a consistent track record of launching new products and expanding its market reach. OrthoPediatrics aims to address the unique needs of pediatric patients through specialized product development and clinical education, positioning itself as a leader in the pediatric orthopedic market.
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.