OrthoPediatrics Corp (KIDS)
NASDAQ:KIDS
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OrthoPediatrics
(NASDAQ:KIDS)
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Rating:52Neutral
Price Target:
$18.50
▲(10.45% Upside)
Action:Reiterated
Date:05/01/26
The score is held back mainly by weak cash flow and ongoing losses despite strong revenue growth and attractive gross margins. The earnings call was a key offset, with raised revenue guidance and a clearer path toward adjusted EBITDA and free-cash-flow breakeven, but technicals remain bearish with the stock below major moving averages.
Positive Factors
Pediatric-focused niche & dedicated sales
OrthoPediatrics' exclusive pediatric focus and dedicated sales team create a durable competitive moat versus adult incumbents. Clinical education, strong surgeon relationships and a cumulative patient base (~1.4M treated) support repeat implant demand and pricing power over the medium term.
Negative Factors
Negative cash generation / cash burn
Despite improvement, materially negative operating and free cash flows mean the company still relies on external capital to fund operations and launches. This constrains strategic flexibility, raises dilution or leverage risk, and remains a persistent medium-term vulnerability until multi-quarter FCF positivity.
Read all positive and negative factors
Positive Factors
Negative Factors
Pediatric-focused niche & dedicated sales
OrthoPediatrics' exclusive pediatric focus and dedicated sales team create a durable competitive moat versus adult incumbents. Clinical education, strong surgeon relationships and a cumulative patient base (~1.4M treated) support repeat implant demand and pricing power over the medium term.
Read all positive factors
OrthoPediatrics (KIDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$465.93M
Dividend YieldN/A
Average Volume (3M)196.93K
Price to Earnings (P/E)―
Beta (1Y)0.83
Revenue Growth14.52%
EPS Growth4.11%
CountryUS
Employees562
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-1.68
Shares Outstanding25,684,994
10 Day Avg. Volume194,659
30 Day Avg. Volume196,931
Financial Highlights & Ratios
PEG Ratio-3.45
Price to Book (P/B)1.20
Price to Sales (P/S)1.76
P/FCF Ratio-26.10
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue2.30
Enterprise Value/Gross Profit3.15
Enterprise Value/Ebitda-46.98
Forecast
1Y Price Target
$24.63Price Target Upside47.01% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)-1.18
Revenue Forecast (FY)$265.24M
OrthoPediatrics Business Overview & Revenue Model
Company Description
OrthoPediatrics 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 tra...
How the Company Makes Money
OrthoPediatrics makes money primarily by selling pediatric orthopedic medical devices and related surgical instrumentation to healthcare providers (e.g., hospitals and ambulatory surgery centers) for use in pediatric orthopedic procedures. The cor...
OrthoPediatrics Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call conveyed strong execution and acceleration across several strategic fronts: double-digit revenue growth (13% YoY), a return to positive adjusted EBITDA, >20% OPSB growth, international acceleration, multiple promising beta launches (3P Hip, Vertiglyde) and EU MDR approvals. Management raised full-year revenue guidance and reaffirmed a path to adjusted EBITDA of ~$25M and free-cash-flow breakeven in 2026. Key short-term headwinds and risks include weather-related clinic disruptions that shifted some demand into Q2, continued GAAP/non-GAAP net losses, higher operating expense levels, lower set deployments versus prior-year (by design), and timing uncertainty around set availability and product rollouts. On balance, the strategic momentum, margin improvement and guidance raise outweigh the near-term challenges and execution/timing risks.Positive Updates
Record Patient Impact
Supported treatment of a record 45,000 children in Q1, bringing cumulative patients treated to nearly 1.4 million — reinforcing core mission and market relevance.
Negative Updates
Weather-Related Disruptions
OPS clinic shutdowns in January and February caused a softer start to Q1; many appointments rescheduled into March/April — some Q1 activity effectively shifted into Q2, temporarily dampening Q1 results.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Patient Impact
Supported treatment of a record 45,000 children in Q1, bringing cumulative patients treated to nearly 1.4 million — reinforcing core mission and market relevance.
Read all positive updates
Company Guidance
Management raised 2026 revenue guidance to $263–$267 million (11%–13% growth), reiterated a target of roughly $25 million of adjusted EBITDA, expects full‑year free‑cash‑flow breakeven, and plans approximately $10 million of set deployments for the year with similar quarterly seasonality to 2025. Underpinning the outlook were Q1 results of $59.4 million revenue (+13% YoY), adjusted EBITDA of $2.2 million (vs. -$0.4M a year ago), 73% gross margin, Q1 set deployments of $2.3M (vs. $3.6M LY), free cash flow used of $5.0M (a 40% improvement vs. $8.4M), and cash/short‑term investments of $50.9M; management cited drivers including continued share gains, OPSB growth (20%+ in Q1), international strength (reported >20%/~22% growth), and a multiyear new‑product “super cycle” expected to lift ASPs, margins and capital efficiency.OrthoPediatrics Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
74
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 243.30M | 236.35M | 204.73M | 148.73M | 122.29M | 98.05M |
| Gross Profit | 177.79M | 172.66M | 148.60M | 111.25M | 90.66M | 73.40M |
| EBITDA | -11.93M | -7.88M | -10.44M | -8.38M | -8.69M | -7.19M |
| Net Income | -39.68M | -39.65M | -37.82M | -20.97M | 1.26M | -16.26M |
Balance Sheet | ||||||
| Total Assets | 502.19M | 508.63M | 473.21M | 438.75M | 427.73M | 308.40M |
| Cash, Cash Equivalents and Short-Term Investments | 50.86M | 60.85M | 68.83M | 80.31M | 118.29M | 54.91M |
| Total Debt | 106.28M | 99.99M | 80.90M | 10.06M | 907.00K | 28.51M |
| Total Liabilities | 163.48M | 162.03M | 118.64M | 61.72M | 49.08M | 83.03M |
| Stockholders Equity | 338.71M | 346.60M | 354.57M | 377.02M | 378.65M | 225.37M |
Cash Flow | ||||||
| Free Cash Flow | -12.63M | -15.96M | -41.31M | -46.03M | -31.80M | -29.07M |
| Operating Cash Flow | -3.98M | -4.85M | -27.05M | -27.05M | -21.77M | -13.06M |
| Investing Cash Flow | -41.43M | -43.63M | -13.16M | 41.68M | -113.37M | -7.41M |
| Financing Cash Flow | 23.49M | 23.98M | 53.13M | 7.30M | 135.97M | 6.00K |
OrthoPediatrics Technical Analysis
Positive
16.75
Price Trends
16.64
Positive
17.20
Positive
17.81
Positive
Market Momentum
0.45
Negative
63.32
Neutral
77.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KIDS, the sentiment is Positive. The current price of 16.75 is below the 20-day moving average (MA) of 16.75, above the 50-day MA of 16.64, and below the 200-day MA of 17.81, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 63.32 is Neutral, neither overbought nor oversold. The STOCH value of 77.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KIDS.
OrthoPediatrics Risk Analysis
OrthoPediatrics disclosed 79 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $887.97M | 48.32 | 16.27% | ― | 1.52% | ― | |
52 Neutral | $465.93M | -8.79 | -11.42% | ― | 14.52% | 4.11% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $490.72M | -5.55 | -13.44% | ― | 2.59% | 59.39% | |
49 Neutral | $178.40M | -1.20 | -69.50% | ― | -1.66% | -12.59% | |
47 Neutral | $927.20M | ― | -68.29% | ― | 4.54% | 49.66% | |
47 Neutral | $408.37M | -13.58 | -17.61% | ― | 3.63% | -93.57% |
* Healthcare Sector Average
KIDS
OrthoPediatrics
18.23
-4.66
-20.36%
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VREX
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BVS
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TMCI
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OrthoPediatrics Corporate Events
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
OrthoPediatrics Unveils 2026 Investor Deck Highlighting Strategy
Positive
Apr 30, 2026
On April 2026, OrthoPediatrics disclosed that its executive officers plan to deliver a series of upcoming presentations to investors and analysts using a new 2026 investor deck. The materials outline the company’s exclusive focus on pediatri...
Regulatory Filings and Compliance
OrthoPediatrics Updates Disclosure on Direct Financial Obligation
Neutral
Apr 1, 2026
OrthoPediatrics filed a brief disclosure indicating that information previously provided under one reporting item is being incorporated by reference into another. This technical cross-reference suggests there is no new operational or strategic dev...
Business Operations and StrategyFinancial Disclosures
OrthoPediatrics Highlights Growth Strategy in 2026 Investor Presentation
Positive
Feb 26, 2026
OrthoPediatrics Corp. has prepared a 2026 investor presentation that its executive team plans to use in upcoming meetings with investors and analysts, outlining how it differentiates itself as the only company focused exclusively on pediatric orth...
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.