OrthoPediatrics (NASDAQ:KIDS) Issues Quarterly Earnings Results

OrthoPediatrics (NASDAQ:KIDS) released its earnings results on Thursday. The company reported ($0.26) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.37) by $0.11, FiscalAI reports. The firm had revenue of $61.61 million during the quarter, compared to the consensus estimate of $61.27 million. OrthoPediatrics had a negative return on equity of 6.86% and a negative net margin of 20.06%.

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 Price Performance

KIDS stock opened at $17.79 on Friday. The stock has a market cap of $446.17 million, a price-to-earnings ratio of -9.12 and a beta of 1.12. The company has a debt-to-equity ratio of 0.28, a current ratio of 7.40 and a quick ratio of 3.52. The company has a 50 day simple moving average of $17.60 and a 200 day simple moving average of $18.15. OrthoPediatrics has a 1 year low of $15.28 and a 1 year high of $26.40.

Hedge Funds Weigh In On OrthoPediatrics

Institutional investors and hedge funds have recently bought and sold shares of the company. Invesco Ltd. boosted its holdings in OrthoPediatrics by 14.5% in the fourth quarter. Invesco Ltd. now owns 39,002 shares of the company’s stock valued at $693,000 after acquiring an additional 4,925 shares during the last quarter. XTX Topco Ltd acquired a new position in shares of OrthoPediatrics in the 4th quarter worth approximately $188,000. Tudor Investment Corp ET AL boosted its stake in shares of OrthoPediatrics by 59.3% in the 4th quarter. Tudor Investment Corp ET AL now owns 112,996 shares of the company’s stock valued at $2,007,000 after purchasing an additional 42,061 shares during the last quarter. Millennium Management LLC increased its position in shares of OrthoPediatrics by 48.0% during the fourth quarter. Millennium Management LLC now owns 1,396,495 shares of the company’s stock worth $24,802,000 after buying an additional 452,840 shares during the period. Finally, Engineers Gate Manager LP acquired a new stake in shares of OrthoPediatrics during the fourth quarter worth $226,000. Institutional investors and hedge funds own 69.05% of the company’s stock.

Analyst Ratings Changes

Several research firms recently weighed in on KIDS. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of OrthoPediatrics in a research report on Thursday, January 22nd. Wall Street Zen cut shares of OrthoPediatrics from a “hold” rating to a “sell” rating in a research report on Saturday, February 21st. Canaccord Genuity Group assumed coverage on shares of OrthoPediatrics in a research report on Wednesday, December 10th. They set a “buy” rating and a $24.00 price target on the stock. Finally, TD Cowen raised shares of OrthoPediatrics to a “strong-buy” rating in a research note on Tuesday, January 27th. One 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 assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $23.89.

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.