OrthoPediatrics (NASDAQ:KIDS) Releases Quarterly Earnings Results, Beats Estimates By $0.03 EPS

OrthoPediatrics (NASDAQ:KIDS) released its quarterly earnings results on Thursday. The company reported ($0.26) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.29) by $0.03, FiscalAI reports. OrthoPediatrics had a negative net margin of 20.06% and a negative return on equity of 6.86%. The company had revenue of $61.61 million during the quarter, compared to the consensus estimate 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 Price Performance

Shares of NASDAQ KIDS traded up $1.07 during mid-day trading on Thursday, hitting $17.79. 150,380 shares of the company’s stock traded hands, compared to its average volume of 111,435. The company has a market capitalization of $446.17 million, a P/E 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’s 50-day moving average is $17.60 and its two-hundred day moving average is $18.15. OrthoPediatrics has a 1 year low of $15.28 and a 1 year high of $26.40.

Institutional Trading of OrthoPediatrics

Institutional investors and hedge funds have recently made changes to their positions in the business. Russell Investments Group Ltd. grew its stake in OrthoPediatrics by 433.1% in 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. Northwestern Mutual Wealth Management Co. lifted its stake in shares of OrthoPediatrics by 5,226.5% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,610 shares of the company’s stock worth $46,000 after buying an additional 2,561 shares during the period. Caption Management LLC acquired a new position in shares of OrthoPediatrics in the third quarter valued at about $54,000. BNP Paribas Financial Markets boosted its holdings in shares of OrthoPediatrics by 60.2% in the 3rd 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. Finally, State of Wyoming grew its position in OrthoPediatrics by 189.7% during the 4th quarter. State of Wyoming now owns 6,822 shares of the company’s stock worth $121,000 after purchasing an additional 4,467 shares during the period. 69.05% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

KIDS has been the topic of a number of research analyst reports. Needham & Company LLC reduced their target price on OrthoPediatrics from $42.00 to $26.00 and set a “buy” rating on the stock in a report on Wednesday, October 29th. TD Cowen upgraded OrthoPediatrics to a “strong-buy” rating in a research report on Tuesday, January 27th. Canaccord Genuity Group initiated coverage on shares of OrthoPediatrics in a research report on Wednesday, December 10th. They issued a “buy” rating and a $24.00 target price on the stock. BTIG Research restated a “buy” rating and set a $23.00 price target on shares of OrthoPediatrics in a report on Wednesday, October 29th. Finally, Wall Street Zen lowered shares of OrthoPediatrics from a “hold” rating to a “sell” rating in a report on Saturday, February 21st. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $23.89.

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.