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OrthoPediatrics
(NASDAQ:KIDS)
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Rating:57Neutral
Price Target:
$21.50
▲(28.36% Upside)
Action:Reiterated
Date:06/05/26
The score is driven mainly by strong revenue growth and high gross margins alongside a low-leverage balance sheet, but is held back by ongoing losses and negative free cash flow in TTM. The latest earnings call improves the outlook with raised revenue guidance and a clearer path toward EBITDA and free-cash-flow breakeven, while technicals are only mildly supportive and valuation remains constrained by unprofitability.
Positive Factors
High gross margins
Sustained ~73% gross margins indicate durable product economics and pricing power in a specialized pediatric niche. High gross margins create room to absorb SG&A investments, support operating leverage as revenues scale, and underpin longer-term margin expansion if new higher-ASP products gain share.
Negative Factors
Negative cash flow
Persistent negative operating and free cash flow means the business still relies on external capital to fund growth and investments. Even with improvement, ongoing cash burn can constrain reinvestment pacing, increase funding risk if markets tighten, and delay durable free-cash-flow generation.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained ~73% gross margins indicate durable product economics and pricing power in a specialized pediatric niche. High gross margins create room to absorb SG&A investments, support operating leverage as revenues scale, and underpin longer-term margin expansion if new higher-ASP products gain share.
Read all positive factors
OrthoPediatrics (KIDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$493.54M
Dividend YieldN/A
Average Volume (3M)196.93K
Price to Earnings (P/E)―
Beta (1Y)0.72
Revenue Growth14.52%
EPS Growth4.11%
CountryUS
Employees602
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
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. is a medical technology firm dedicated to the design, development, and global commercialization of specialized implants and devices. These products are meticulously crafted to be anatomically appropriate for treating children...
How the Company Makes Money
OrthoPediatrics makes money primarily by selling pediatric orthopedic medical devices to healthcare providers. Its core revenue stream is product sales of implants (e.g., fixation and deformity correction systems) and the associated surgical instr...
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 | -6.63M | -11.94M | -20.23M | -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
Neutral
16.75
Price Trends
18.56
Positive
17.64
Positive
17.61
Positive
Market Momentum
0.43
Positive
49.37
Neutral
41.87
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 below the 20-day moving average (MA) of 19.64, below the 50-day MA of 18.56, and below the 200-day MA of 17.61, indicating a neutral trend. The MACD of 0.43 indicates Positive momentum. The RSI at 49.37 is Neutral, neither overbought nor oversold. The STOCH value of 41.87 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.01B | 28.48 | 16.27% | ― | 1.52% | ― | |
57 Neutral | $493.54M | -11.44 | -11.42% | ― | 14.52% | 4.11% | |
54 Neutral | $278.95M | -4.43 | -69.50% | ― | -1.66% | -12.59% | |
53 Neutral | $1.17B | -12.21 | -68.29% | ― | 4.54% | 49.66% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $468.08M | -7.69 | -13.44% | ― | 2.59% | 59.39% | |
47 Neutral | $444.15M | -5.29 | -17.61% | ― | 3.63% | -93.57% |
* Healthcare Sector Average
KIDS
OrthoPediatrics
19.22
-2.66
-12.18%
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OrthoPediatrics Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
OrthoPediatrics shareholders approve directors and incentive plan
Positive
Jun 4, 2026
At its June 4, 2026 annual meeting, OrthoPediatrics shareholders elected four directors, George S. M. Dyer, Kelly Fischer, David R. Pelizzon, and Harald Ruf, to serve terms running until the 2029 annual meeting or until successors are chosen. Inve...
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...
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.