OrthoPediatrics Corp (KIDS)
NASDAQ:KIDS
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OrthoPediatrics
(NASDAQ:KIDS)
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Rating:55Neutral
Price Target:
$15.00
▼(-10.45% Downside)
Action:ReiteratedDate: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
Dedicated pediatric-only focus
OrthoPediatrics’ exclusive pediatric focus creates a durable niche advantage: specialized implants, surgeon relationships, and clinical education differentiate it from larger rivals repurposing adult devices. This focus supports pricing power, higher adoption barriers, and long-term share gains in a stable addressable market.
Negative Factors
Ongoing GAAP and net losses
Despite improving adjusted EBITDA, the company remains GAAP-loss making, indicating structural profitability gaps driven by elevated operating costs and non-cash charges. Persistent GAAP losses constrain retained earnings, limit shareholder returns, and prolong dependence on external funding until full conversion to sustained net profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Dedicated pediatric-only focus
OrthoPediatrics’ exclusive pediatric focus creates a durable niche advantage: specialized implants, surgeon relationships, and clinical education differentiate it from larger rivals repurposing adult devices. This focus supports pricing power, higher adoption barriers, and long-term share gains in a stable addressable market.
Read all positive factors
OrthoPediatrics (KIDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$399.91M
Dividend YieldN/A
Average Volume (3M)196.93K
Price to Earnings (P/E)―
Beta (1Y)0.76
Revenue Growth15.45%
EPS Growth-3.20%
CountryUS
Employees562
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)N/A
Shares Outstanding25,278,788
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 Cap1.00
Enterprise Value/Revenue1.69
Enterprise Value/Gross Profit2.31
Enterprise Value/Ebitda-50.62
Forecast
1Y Price Target
$25.00Price Target Upside49.25% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)-1.17
Revenue Forecast (FY)$264.31M
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:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive operational and financial trajectory: strong top-line growth (Q4 +17%, FY +15%), meaningful margin expansion (Q4 gross margin 73%), material adjusted EBITDA improvement, and the first quarter of positive free cash flow contributing to a major year-over-year cash usage improvement (down $26M or 63%). The company also highlighted a deep product pipeline, multiple regulatory and commercial milestones (including EU MDR approvals and FDA clears), and reiterated confident 2026 targets (revenue $262–$266M, ~$25M adjusted EBITDA, free cash flow breakeven). Offsets include continued GAAP and non-GAAP losses, elevated G&A spending, timing-related R&D variability, early-stage digital/adjacency initiatives with limited near-term revenue, and seasonal cash-flow volatility. Overall, the favorable financial inflection, product momentum, and guidance credibility outweigh the remaining execution and timing risks.Positive Updates
Quarterly and Full-Year Revenue Growth
Q4 2025 revenue of $61.6 million, up 17% year-over-year; full-year 2025 revenue growth of 15%. Management reiterated 2026 revenue guidance of $262–$266 million, implying 11%–13% growth year-over-year.
Negative Updates
Continued GAAP and Non-GAAP Losses
GAAP net loss per share of $0.43 in Q4 2025 (improved from $0.69 prior year) but still a loss. Non-GAAP net loss per share was $0.30 versus $0.29 in the prior-year period, indicating non-GAAP profitability has not yet been achieved on a per-share basis.
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Q4-2025 Updates
Positive
Negative
Quarterly and Full-Year Revenue Growth
Q4 2025 revenue of $61.6 million, up 17% year-over-year; full-year 2025 revenue growth of 15%. Management reiterated 2026 revenue guidance of $262–$266 million, implying 11%–13% growth year-over-year.
Read all positive updates
Company Guidance
Management reiterated 2026 guidance of $262–$266 million in revenue (up 11–13% year‑over‑year), targeting approximately $25 million of adjusted EBITDA (vs. about $15 million in 2025), deploying roughly $10 million in sets, and achieving full‑year free‑cash‑flow breakeven (about a $15 million improvement versus 2025’s $15 million cash usage). They expect gross margin to remain around the mid‑70s (~73%) and similar quarterly seasonality to 2025 (Q1 soft, Q3 strongest), with negative FCF in the first half and positive FCF in the second half to reach the annual breakeven. Management pointed to Q4/2025 results that support the guide: $61.6 million revenue (+17% YoY), 73% gross profit margin (vs. 68% prior year), $4.8 million adjusted EBITDA (up 59% YoY), $10 million of Q4 free cash flow (first positive quarter), $4.5 million of set deployment in Q4, and $62.9 million of cash and short‑term investments at quarter end.OrthoPediatrics Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
74
Positive
Cash Flow
36
Negative
| 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
Neutral
16.75
Price Trends
16.94
Negative
17.48
Negative
18.40
Negative
Market Momentum
-0.01
Negative
50.61
Neutral
50.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KIDS, the sentiment is Neutral. The current price of 16.75 is above the 20-day moving average (MA) of 16.30, below the 50-day MA of 16.94, and below the 200-day MA of 18.40, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 50.61 is Neutral, neither overbought nor oversold. The STOCH value of 50.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $832.38M | 21.81 | 13.79% | ― | -0.91% | ― | |
55 Neutral | $399.91M | -10.51 | -11.34% | ― | 15.45% | -3.20% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $494.58M | -6.56 | -20.38% | ― | 2.85% | 29.06% | |
46 Neutral | $532.55M | 52.93 | -13.86% | ― | 4.09% | -40.54% | |
45 Neutral | $1.36B | -7.22 | -141.98% | ― | 7.93% | -108.60% | |
45 Neutral | $124.39M | -2.63 | -51.63% | ― | 1.59% | -3.91% |
* Healthcare Sector Average
KIDS
OrthoPediatrics
14.64
-6.18
-29.68%
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OrthoPediatrics Corporate Events
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.