OrthoPediatrics (NASDAQ:KIDS) Releases Quarterly Earnings Results, Beats Estimates By $0.11 EPS

OrthoPediatrics (NASDAQ:KIDS) issued its earnings results on Thursday, February 26th. The company reported ($0.26) EPS for the quarter, topping analysts’ consensus estimates of ($0.37) by $0.11, FiscalAI reports. The firm had revenue of $61.61 million for the quarter, compared to the consensus estimate of $61.27 million. OrthoPediatrics had a negative return on equity of 6.70% and a negative net margin of 16.77%.

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 Trading Up 2.6%

Shares of KIDS opened at $16.29 on Thursday. OrthoPediatrics has a 52-week low of $14.91 and a 52-week high of $26.40. The stock has a market cap of $411.81 million, a PE ratio of -9.64 and a beta of 1.16. The firm’s fifty day moving average is $17.15 and its two-hundred day moving average is $17.62. The company has a quick ratio of 2.65, a current ratio of 5.55 and a debt-to-equity ratio of 0.28.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on KIDS. Needham & Company LLC raised their target price on OrthoPediatrics from $26.00 to $30.00 and gave the company a “buy” rating in a research report on Friday, February 27th. TD Cowen upgraded OrthoPediatrics to a “strong-buy” rating in a research report on Tuesday, January 27th. Truist Financial raised their price objective on OrthoPediatrics from $19.00 to $20.00 and gave the company a “hold” rating in a report on Monday, March 2nd. Canaccord Genuity Group started coverage on OrthoPediatrics in a report on Wednesday, December 10th. They issued a “buy” rating and a $24.00 price objective on the stock. Finally, BTIG Research boosted their price objective on OrthoPediatrics from $23.00 to $24.00 and gave the company a “buy” rating in a research report on Friday, February 27th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $24.67.

Insider Activity

In related news, CEO David R. Bailey sold 19,535 shares of the company’s stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $17.25, for a total transaction of $336,978.75. Following the completion of the sale, the chief executive officer owned 298,020 shares of the company’s stock, valued at approximately $5,140,845. This represents a 6.15% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Gregory A. Odle sold 8,433 shares of the stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $17.25, for a total transaction of $145,469.25. Following the completion of the sale, the insider owned 187,735 shares of the company’s stock, valued at approximately $3,238,428.75. The trade was a 4.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 58,171 shares of company stock valued at $1,003,450 in the last ninety days. 32.70% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On OrthoPediatrics

A number of institutional investors have recently bought and sold shares of KIDS. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake 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 valued at $246,000 after buying an additional 645 shares during the period. Russell Investments Group Ltd. lifted its holdings in OrthoPediatrics by 433.1% in the third quarter. Russell Investments Group Ltd. now owns 1,402 shares of the company’s stock valued at $26,000 after acquiring an additional 1,139 shares during the last quarter. BNP Paribas Financial Markets lifted 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 acquiring an additional 1,235 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its position in OrthoPediatrics by 5,226.5% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,610 shares of the company’s stock worth $46,000 after acquiring an additional 2,561 shares during the period. Finally, Barclays PLC grew its position in OrthoPediatrics by 10.7% in the fourth quarter. Barclays PLC now owns 26,405 shares of the company’s stock worth $469,000 after acquiring an additional 2,561 shares during the period. 69.05% of the stock is owned by hedge funds and other institutional investors.

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.