OrthoPediatrics (NASDAQ:KIDS) Issues Earnings Results

OrthoPediatrics (NASDAQ:KIDS) posted its quarterly earnings results on Tuesday. The company reported ($0.26) earnings per share for the quarter, beating the consensus estimate of ($0.30) by $0.04, FiscalAI reports. The business had revenue of $70.51 million for the quarter, compared to the consensus estimate 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 Stock Performance

Shares of KIDS traded up $0.01 during mid-day trading on Tuesday, reaching $20.88. The company had a trading volume of 268,888 shares, 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 company has a quick ratio of 2.37, a current ratio of 5.21 and a debt-to-equity ratio of 0.29. The stock has a market capitalization of $536.20 million, a P/E ratio of -12.43 and a beta of 0.98. The stock has a 50 day moving average of $19.02 and a two-hundred day moving average of $17.80.

Wall Street Analysts Forecast Growth

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

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Millennium Management LLC increased its holdings in shares of OrthoPediatrics by 48.0% during the 4th quarter. Millennium Management LLC now owns 1,396,495 shares of the company’s stock valued at $24,802,000 after purchasing an additional 452,840 shares in the last quarter. Deerfield Management Company L.P. boosted its holdings in OrthoPediatrics by 1,153.4% during the third quarter. Deerfield Management Company L.P. now owns 194,109 shares of the company’s stock worth $3,597,000 after buying an additional 178,623 shares in the last quarter. Nantahala Capital Management LLC boosted its holdings in OrthoPediatrics by 303.3% during the fourth quarter. Nantahala Capital Management LLC now owns 199,449 shares of the company’s stock worth $3,542,000 after buying an additional 150,000 shares in the last quarter. RA Capital Management L.P. acquired a new stake in OrthoPediatrics during the fourth quarter valued at $1,953,000. Finally, Goldman Sachs Group Inc. grew its position in OrthoPediatrics by 112.3% during the first quarter. Goldman Sachs Group Inc. now owns 200,439 shares of the company’s stock valued at $4,937,000 after buying an additional 106,041 shares during the period. 69.05% of the stock is owned by institutional investors and hedge funds.

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.