OrthoPediatrics (NASDAQ:KIDS) Posts Earnings Results, Beats Expectations By $0.11 EPS

OrthoPediatrics (NASDAQ:KIDS) posted its quarterly earnings results on Thursday. The company reported ($0.26) EPS for the quarter, topping analysts’ consensus estimates of ($0.37) by $0.11, FiscalAI reports. OrthoPediatrics had a negative net margin of 16.77% and a negative return on equity of 6.68%. The firm had revenue of $61.61 million for the quarter, compared to analysts’ expectations of $61.27 million.

Here are the key takeaways from OrthoPediatrics’ conference call:

• Financials & guidance: Q4 revenue was $61.6M (+17% YoY) and FY2025 revenue grew 15% with adjusted EBITDA and free cash flow materially improved (Q4 FCF of $10M); management reiterated 2026 guidance of $262–266M revenue, ~ $25M adjusted EBITDA and full‑year free‑cash‑flow breakeven.
• Product “super cycle”: Management launched a multi‑year innovation wave (3P Hip, VerteGlide, eLLi with first‑in‑human expected late 2026, Halo Gravity Traction, Playbook) and expects these high‑value products to drive share gains and margin expansion.
• OPSB bracing momentum: Clinic expansion is ahead of schedule, same‑store sales are strong, and multiple new brace launches (DF2 expansions, PD Hip Brace portfolio and adjunct TrakFix products) are positioned to support revenue and profitability.
• International & regulatory progress: OUS revenue rebounded (+33% Q4), EU MDR approvals and the Folomed distributor acquisition in Brazil are expected to improve European and LatAm penetration, ordering stability and cash collection.
• R&D cadence and pipeline risk: Reported R&D spending was lower in 2025 (management attributes this to timing), and while leadership says the pipeline remains strong, uneven R&D timing and future spend variability could introduce execution risk.

OrthoPediatrics Stock Up 7.8%

Shares of KIDS opened at $19.17 on Friday. The firm has a market cap of $480.78 million, a P/E ratio of -11.34 and a beta of 1.12. The stock’s 50 day moving average is $17.64 and its two-hundred day moving average is $18.15. OrthoPediatrics has a 12 month low of $15.28 and a 12 month high of $26.40. The company has a current ratio of 7.40, a quick ratio of 3.52 and a debt-to-equity ratio of 0.28.

Institutional Trading of OrthoPediatrics

A number of institutional investors have recently added to or reduced their stakes in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of OrthoPediatrics by 6.9% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,995 shares of the company’s stock worth $246,000 after acquiring an additional 645 shares during the period. Russell Investments Group Ltd. boosted its position in OrthoPediatrics by 433.1% during the third quarter. Russell Investments Group Ltd. now owns 1,402 shares of the company’s stock worth $26,000 after purchasing an additional 1,139 shares in the last quarter. BNP Paribas Financial Markets grew its holdings in OrthoPediatrics by 60.2% in the third quarter. BNP Paribas Financial Markets now owns 3,288 shares of the company’s stock valued at $61,000 after purchasing an additional 1,235 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its position in shares of OrthoPediatrics by 5,226.5% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,610 shares of the company’s stock valued at $46,000 after buying an additional 2,561 shares in the last quarter. Finally, Barclays PLC raised its stake in shares of OrthoPediatrics by 10.7% during the 4th quarter. Barclays PLC now owns 26,405 shares of the company’s stock worth $469,000 after buying an additional 2,561 shares during the last quarter. Hedge funds and other institutional investors own 69.05% of the company’s stock.

Key Headlines Impacting OrthoPediatrics

Here are the key news stories impacting OrthoPediatrics this week:

• Positive Sentiment: Q4 beat — OrthoPediatrics reported EPS of ($0.26) vs. consensus ($0.37) and revenue of $61.61M vs. $61.27M, a combination that surprised the market to the upside. Earnings Release
• Positive Sentiment: Needham raised its price target to $30 and reiterated a Buy — the new target implies material upside versus the current share level and likely supported buying interest. Benzinga
• Positive Sentiment: BTIG also raised its target to $24 and kept a Buy rating, adding further analyst support to the stock move. Benzinga
• Positive Sentiment: Company reiterated 2026 revenue guidance of $262M–$266M and described an accelerating “product innovation super‑cycle,” which management frames as a multi‑year growth driver. Seeking Alpha
• Neutral Sentiment: Investor access: OrthoPediatrics announced participation in upcoming investor conferences, which should help management communicate the growth story but is not material on its own. GlobeNewswire
• Neutral Sentiment: Analyst/media coverage and detailed call notes/transcript are circulating (earnings transcript and coverage from Yahoo, Zacks, Seeking Alpha), which helps investors parse the quarter. Yahoo Finance
• Negative Sentiment: Profitability remains a concern — OrthoPediatrics is still loss‑making (negative net margin ~20% and negative ROE), and consensus expects negative full‑year EPS, which limits valuation multiple expansion until sustained profit improvement. Zacks

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on KIDS. BTIG Research lifted their price target on shares of OrthoPediatrics from $23.00 to $24.00 and gave the company a “buy” rating in a research note on Friday. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of OrthoPediatrics in a research report on Thursday, January 22nd. Canaccord Genuity Group assumed coverage on OrthoPediatrics in a research report on Wednesday, December 10th. They set a “buy” rating and a $24.00 price target on the stock. TD Cowen upgraded shares of OrthoPediatrics to a “strong-buy” rating in a research note on Tuesday, January 27th. Finally, Needham & Company LLC lifted their price target on shares of OrthoPediatrics from $26.00 to $30.00 and gave the stock a “buy” rating in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, OrthoPediatrics has a consensus rating of “Moderate Buy” and an average target price of $24.44.

About OrthoPediatrics

OrthoPediatrics Corp., founded in 2007 and headquartered in Warsaw, Indiana, is a medical device company dedicated exclusively to providing orthopedic solutions for children. The company focuses on developing, manufacturing and marketing a broad portfolio of implants and instruments designed to address a wide range of pediatric conditions, including trauma, deformity correction, spine disorders and sports injuries.

The company’s product lines include locking plates and screws for upper and lower extremity reconstruction, intramedullary nails for femur and tibia stabilization, and specialized systems such as the MAGEC Magnetic Growth Rod for treatment of early-onset scoliosis.