OrthoPediatrics (NASDAQ:KIDS) Releases Quarterly Earnings Results, Beats Estimates By $0.04 EPS

OrthoPediatrics (NASDAQ:KIDS) released its quarterly earnings results on Tuesday. The company reported ($0.26) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.30) by $0.04, FiscalAI reports. The company had revenue of $70.51 million during the quarter, compared to analysts’ expectations of $68.21 million. OrthoPediatrics had a negative return on equity of 7.01% and a negative net margin of 16.31%.

Here are the key takeaways from OrthoPediatrics’ conference call:

• Second-quarter revenue rose 15% to a record $70.5 million, led by 26% growth in Trauma & Deformity and more than 20% growth in OPSB. Adjusted EBITDA reached a record $6.8 million, with gross margin improving to 74%.
• Management raised full-year 2026 revenue guidance to $265 million-$269 million, representing 12%-14% growth, while reiterating approximately $25 million of adjusted EBITDA. The company expects positive free cash flow in the second half and free-cash-flow breakeven or better for the full year.
• The multi-year “innovation super cycle” is beginning to contribute through products such as 3P Hip, VerteGlide, and OPSB’s DF2, with additional launches planned through 2027 and beyond. Management expects these products to support higher growth, margins, and returns on capital, while strengthening opportunities for broader hospital contracts.
• Reported Scoliosis revenue declined 9% because of no 7D unit sales in the quarter and lower Brazil set sales, although underlying implant and bracing revenue grew in the mid-teens. Management said demand remains strong and expects 7D sales, VerteGlide adoption, and a strong summer surgery schedule to support future results, but timing remains difficult to predict.
• International revenue increased 22%, led by record European performance and expanding EU MDR approvals, while Brazil’s weaker set sales reflected cash-collection and ordering discipline rather than demand concerns. The company expects European product access and its Brazilian operational changes to provide additional growth over time.

OrthoPediatrics Price Performance

NASDAQ:KIDS traded up $0.01 during trading hours on Tuesday, hitting $20.88. 268,888 shares of the stock were exchanged, compared to its average volume of 159,986. OrthoPediatrics has a 52-week low of $14.42 and a 52-week high of $22.80. The firm’s fifty day moving average price is $19.02 and its 200 day moving average price is $17.80. The company has a current ratio of 5.21, a quick ratio of 2.37 and a debt-to-equity ratio of 0.29. The company has a market cap of $536.20 million, a P/E ratio of -12.43 and a beta of 0.98.

Wall Street Analyst Weigh In

A number of analysts have recently commented on the company. TD Cowen restated a “buy” rating on shares of OrthoPediatrics in a research report on Monday, June 15th. Truist Financial increased their target price on OrthoPediatrics from $17.00 to $20.00 and gave the company a “hold” rating in a research report on Thursday, July 16th. Canaccord Genuity Group set a $25.00 price target on shares of OrthoPediatrics in a research note on Friday, April 24th. Weiss Ratings reissued a “sell (e+)” rating on shares of OrthoPediatrics in a report on Friday, July 17th. Finally, BTIG Research restated a “buy” rating and set a $24.00 price objective on shares of OrthoPediatrics in a research report on Friday, May 1st. Nine equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $24.78.

Hedge Funds Weigh In On OrthoPediatrics

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

OrthoPediatrics Company Profile

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.