OrthoPediatrics (KIDS) AI Stock Analysis

• Market Cap: $437.58M
• Dividend Yield: N/A
• Average Volume (3M): 196.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: 19.90%
• EPS Growth: -57.90%
• Country: US
• Employees: 562
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.26
• Shares Outstanding: 25,278,788
• 10 Day Avg. Volume: 194,659
• 30 Day Avg. Volume: 196,931
• 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 Cap: 1.07
• Enterprise Value/Revenue: 1.97
• Enterprise Value/Gross Profit: 2.70
• Enterprise Value/Ebitda: -59.19
• 1Y Price Target: $24.88
• Price Target Upside: 43.73% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): -1.14
• Revenue Forecast (FY): $263.18M

• Rating: 55 Neutral
• Price Target: $18.00 ▲(3.99% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by mixed financial performance: strong revenue growth and healthy gross margins are offset by ongoing losses and still-weak cash flow. The earnings call adds support via credible improvement guidance (EBITDA expansion and FCF breakeven target), while technicals are neutral-to-mixed and valuation is constrained by a negative P/E and no dividend.

Positive Factors

Revenue Growth & High Gross Margin

Sustained multi-year revenue scaling combined with consistent low-to-mid 70% gross margins indicates strong product economics and pricing power in a niche pediatric market. Durable revenue expansion and high gross margin provide operating leverage potential if SG&A is controlled, supporting long-term profitability prospects.

Product Innovation & Regulatory Momentum

A deep, pediatric-focused product pipeline plus regulatory approvals (EU MDR, FDA clears) and targeted M&A (Brazil distributor) create structural differentiation versus larger adult-focused competitors. Regulatory clearances and clinical milestones raise adoption barriers and support durable international expansion and stickier surgeon relationships.

Improving Profitability & Cash Trajectory

Management's 2026 targets and Q4 progress (first positive FCF quarter and material adjusted EBITDA improvement) show credible operating-leverage gains. If sustained, hitting adj. EBITDA and FCF breakeven materially reduces funding needs, supports reinvestment in growth, and signals a durable shift toward self-funded operations.

Negative Factors

Persistent GAAP Losses

Despite operational improvements, the company remains GAAP-loss-making with materially negative net margins. Continued GAAP losses constrain shareholder returns, limit retained-earnings buildup, and maintain pressure to access external capital until profitability is achieved on a sustained basis, raising long-term execution risk.

Weak Historical Cash Generation

Operating cash flow has been negative historically and free cash flow remains negative for the year, reflecting structural cash burn and timing sensitivity. Even with one positive quarter, uneven cash conversion and seasonality increase reliance on financing or careful set deployment pacing to fund growth and hit full-year breakeven targets.

Rising Operating Expenses & R&D Timing

Material increases in G&A and overall operating expenses, plus inconsistent R&D cadence, raise the fixed-cost base and can blunt margin expansion. Elevated SG&A and timing-related R&D pauses make achievement of sustained profitability and product commercialization dependent on continued strong top-line execution and disciplined cost control.

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 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 Money

OrthoPediatrics 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 Financial Statement Overview

Summary

Revenue has grown substantially over multiple years with consistently strong gross margins (~low-to-mid 70s), and the balance sheet shows low leverage. However, profitability remains weak (ongoing operating and net losses) and cash generation is still pressured with consistently negative operating and free cash flow, despite recent improvement.

Income Statement

Revenue has scaled meaningfully over the period (from $71.1M in 2020 to $236.3M in 2025), with growth re-accelerating in 2025 (3.93% vs. 0.38% in 2024). Gross margin is consistently strong and stable around the low-to-mid 70% range, indicating good product economics. However, the company remains structurally unprofitable: operating losses persist (EBIT negative each year) and net margins are still meaningfully negative in 2025 (-16.8%). Overall, solid top-line expansion and strong gross profitability are outweighed by ongoing operating and net losses.

Balance Sheet

The balance sheet looks relatively conservative with low leverage: debt-to-equity is 0.14 in 2025 and improved versus 2024 (0.23), with total debt at $48.4M against $346.6M of equity. Total assets also increased to $508.6M in 2025, supporting financial flexibility. The key weakness is that shareholder returns remain negative due to continued losses (return on equity is -11.4% in 2025), so the balance sheet strength is not yet translating into profitability.

Cash Flow

Cash generation remains a major pressure point. Operating cash flow is negative in every year shown and was still slightly negative in 2025 (-$4.9M), though it improved sharply from 2024 (-$27.0M). Free cash flow is also consistently negative and worsened in 2025 (-$16.0M) versus 2024 (-$41.3M), but it still indicates ongoing cash burn and funding needs. While cash burn volatility improved recently, the lack of sustained positive operating and free cash flow keeps cash-flow quality weak.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	236.35M	204.73M	148.73M	122.29M	98.05M
Gross Profit	172.66M	148.60M	111.25M	90.66M	73.40M
EBITDA	-7.88M	-10.44M	-8.38M	-8.69M	-7.19M
Net Income	-39.65M	-37.82M	-20.97M	1.26M	-16.26M
Balance Sheet
Total Assets	523.08M	473.21M	438.75M	427.73M	308.40M
Cash, Cash Equivalents and Short-Term Investments	60.85M	68.83M	80.31M	118.29M	54.91M
Total Debt	48.36M	80.90M	10.06M	907.00K	28.51M
Total Liabilities	176.48M	118.64M	61.72M	49.08M	83.03M
Stockholders Equity	346.60M	354.57M	377.02M	378.65M	225.37M
Cash Flow
Free Cash Flow	-15.96M	-41.31M	-46.03M	-31.80M	-29.07M
Operating Cash Flow	-4.85M	-27.05M	-27.05M	-21.77M	-13.06M
Investing Cash Flow	-43.63M	-13.16M	41.68M	-113.37M	-7.41M
Financing Cash Flow	23.98M	53.13M	7.30M	135.97M	6.00K

OrthoPediatrics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 17.31 is below the 20-day moving average (MA) of 17.63, below the 50-day MA of 17.76, and below the 200-day MA of 18.96, indicating a bearish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 46.21 is Neutral, neither overbought nor oversold. The STOCH value of 16.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KIDS.

OrthoPediatrics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BVS	65 Neutral	$716.79M	21.81	4.97%	―	1.58%	―
KIDS	55 Neutral	$437.58M	-10.51	-12.67%	―	19.90%	-57.90%
VREX	52 Neutral	$452.94M	52.93	-13.95%	―	4.14%	-45.29%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OFIX	50 Neutral	$469.69M	-6.56	-20.38%	―	4.31%	3.26%
TNDM	45 Neutral	$1.48B	-7.22	-141.98%	―	17.87%	-57.03%
TMCI	41 Neutral	$94.30M	-2.63	-51.63%	―	7.90%	19.92%

OrthoPediatrics Corporate Events

OrthoPediatrics Highlights Growth Strategy in 2026 Investor Presentation

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 orthopedics and highlighting consistent year‑over‑year growth since inception, excluding 2020. The materials underscore the company’s large global addressable market, its expanding suite of pediatric-specific products and enabling technologies, and its reliance on non‑GAAP metrics such as adjusted diluted loss per share and Adjusted EBITDA to evaluate operating performance and communicate business progress to stakeholders.

The presentation also stresses management’s strategy of targeting high-volume children’s hospitals, maintaining a global sales and distribution network, and investing in R&D and selective M&A to broaden its portfolio and market reach. By emphasizing its leadership in clinical education and its role in treating more than 1.29 million pediatric patients since inception, OrthoPediatrics positions itself as a specialized, scaled player in a niche market where larger incumbents typically repurpose adult implants and lack dedicated pediatric focus, which could support its competitive standing with investors and surgeons alike.

The most recent analyst rating on (KIDS) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on OrthoPediatrics stock, see the KIDS Stock Forecast page.

OrthoPediatrics Highlights Growth Strategy in 2026 Investor Presentations

OrthoPediatrics’ executive team plans a series of upcoming presentations to investors and analysts built around its 2026 investor materials, highlighting its exclusive focus on pediatric patients, broad product portfolio, and consistent growth trajectory since inception, excluding the COVID-impacted year of 2020. The presentation underscores the company’s strategy of expanding its addressable market through R&D and selective M&A, leveraging a global commercial channel and intensive clinical education programs to differentiate itself from larger competitors that mainly repurpose adult implants, thereby reinforcing its niche leadership in pediatric orthopedics and its long-term operational and market ambitions.

The most recent analyst rating on (KIDS) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on OrthoPediatrics stock, see the KIDS Stock Forecast page.