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OrthoPediatrics
(NASDAQ:KIDS)
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Rating:61Neutral
Price Target:
$32.00
▲(30.61% Upside)
Action:Reiterated
Date:10/29/26
The score is driven primarily by improving fundamentals (strong revenue growth, high gross margins, and a recent move to positive TTM operating/free cash flow) and a very constructive earnings update with raised revenue guidance and reiterated EBITDA/FCF targets. Offsetting these positives are the still-lossmaking profile (negative net margin and negative P/E) and technically overbought momentum indicators that increase near-term pullback risk.
Positive Factors
Strong Revenue Growth and Gross Margins
Sustained revenue expansion alongside consistently high gross margins indicates strong demand for the pediatric-focused portfolio and meaningful product economics. This combination gives OrthoPediatrics resources to invest in commercial expansion, innovation, and surgeon adoption while supporting scalable growth.
Negative Factors
Persistent Net and Operating Losses
Despite strong sales growth and narrowing losses, the company has not yet demonstrated durable earnings power. Persistent operating and net losses can constrain internally funded investment, leave profitability sensitive to expense growth, and make future performance dependent on continued operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth and Gross Margins
Sustained revenue expansion alongside consistently high gross margins indicates strong demand for the pediatric-focused portfolio and meaningful product economics. This combination gives OrthoPediatrics resources to invest in commercial expansion, innovation, and surgeon adoption while supporting scalable growth.
Read all positive factors
OrthoPediatrics (KIDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$806.03M
Dividend YieldN/A
Average Volume (3M)292.12K
Price to Earnings (P/E)―
Beta (1Y)0.61
Revenue Growth16.15%
EPS Growth27.21%
CountryUS
Employees602
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-1.43
Shares Outstanding26,110,476
10 Day Avg. Volume511,425
30 Day Avg. Volume292,115
Financial Highlights & Ratios
PEG Ratio-3.45
Price to Book (P/B)1.20
Price to Sales (P/S)1.76
P/FCF Ratio-26.10
Enterprise Value/Market Cap0.74
Enterprise Value/Revenue2.27
Enterprise Value/Gross Profit3.07
Enterprise Value/Ebitda246.13
Forecast
1Y Price Target
$30.75Price Target Upside25.51% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)-1.19
Revenue Forecast (FY)$266.99M
OrthoPediatrics Business Overview & Revenue Model
Company Description
OrthoPediatrics Corp. is a medical technology firm dedicated to the design, development, and global commercialization of specialized implants and devices. These products are meticulously crafted to be anatomically appropriate for treating children...
How the Company Makes Money
OrthoPediatrics primarily makes money by selling pediatric-focused orthopedic implants and the associated surgical instruments/sets used to implant them. Revenue is generated when hospitals and ambulatory surgery centers purchase the company’s ste...
OrthoPediatrics Earnings Call Summary
Earnings Call Date:Oct 27, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Mar 10, 2027
Earnings Call Sentiment Positive
The call was strongly positive, with record revenue, 19% quarterly growth, a raised full-year revenue outlook, record adjusted EBITDA, positive quarterly free cash flow, strong demand across core businesses, and substantial progress in product launches and clinic expansion. The main challenges were that many super-cycle products remain in limited launch, eLLi commercialization is largely a 2028-2029 opportunity, year-to-date free cash flow remains negative, and operating expenses and commissions increased. Overall, the breadth and magnitude of the reported growth and management's confidence outweighed the timing and investment-related challenges.Positive Updates
Record Quarterly Revenue and Broad-Based Growth
Third-quarter 2026 revenue reached a record $72.7 million, up 19% from $61.2 million in the prior-year period. Growth was driven by strong demand across implants and OPSB, trauma and deformity, scoliosis, international operations, legacy portfolio share gains, and new product contributions.
Negative Updates
Many Super-Cycle Products Are Still in Limited Launch
Many products in the super cycle remain in the very early stages of full market release or limited launch and are not yet meaningfully contributing to growth. Management said some products are not expected to contribute significant revenue in 2026.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Quarterly Revenue and Broad-Based Growth
Third-quarter 2026 revenue reached a record $72.7 million, up 19% from $61.2 million in the prior-year period. Growth was driven by strong demand across implants and OPSB, trauma and deformity, scoliosis, international operations, legacy portfolio share gains, and new product contributions.
Read all positive updates
Company Guidance
The company raised full year 2026 revenue guidance to the range of $270 million to $273 million, representing growth of 14% to 16%, reiterated adjusted EBITDA guidance of approximately $25 million, and continues to expect to deploy approximately $10 million in sets and achieve free cash flow break-even or better in 2026, with free cash flow positive in 2027 and beyond; year to date free cash flow was about $6 million of usage, requiring $6 million of positive free cash flow in the fourth quarter to reach breakeven or better for the year, and fourth-quarter gross margin was projected at 73%.OrthoPediatrics Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
63
Positive
Cash Flow
44
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 264.14M | 236.35M | 204.73M | 148.73M | 122.29M | 98.05M |
| Gross Profit | 194.84M | 172.66M | 148.60M | 111.25M | 90.66M | 73.40M |
| EBITDA | 2.43M | -12.07M | -20.23M | -8.38M | -8.69M | -7.19M |
| Net Income | -33.88M | -39.65M | -37.82M | -20.97M | 1.26M | -16.26M |
Balance Sheet | ||||||
| Total Assets | 509.09M | 508.63M | 473.21M | 438.75M | 427.73M | 308.40M |
| Cash, Cash Equivalents and Short-Term Investments | 44.23M | 60.85M | 68.83M | 80.31M | 118.29M | 54.91M |
| Total Debt | 98.36M | 99.99M | 80.90M | 10.06M | 907.00K | 28.51M |
| Total Liabilities | 169.74M | 162.03M | 118.64M | 61.72M | 49.08M | 83.03M |
| Stockholders Equity | 339.35M | 346.60M | 354.57M | 377.02M | 378.65M | 225.37M |
Cash Flow | ||||||
| Free Cash Flow | 3.18M | -15.96M | -41.31M | -46.03M | -31.80M | -29.07M |
| Operating Cash Flow | 12.49M | -4.85M | -27.05M | -27.05M | -21.77M | -13.06M |
| Investing Cash Flow | -10.20M | -43.63M | -13.16M | 41.68M | -113.37M | -7.41M |
| Financing Cash Flow | -3.30M | 23.98M | 53.13M | 7.30M | 135.97M | 6.00K |
OrthoPediatrics Technical Analysis
Positive
24.50
Price Trends
23.32
Positive
21.99
Positive
19.56
Positive
Market Momentum
1.77
Negative
77.81
Negative
88.48
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KIDS, the sentiment is Positive. The current price of 24.5 is above the 20-day moving average (MA) of 24.09, above the 50-day MA of 23.32, and above the 200-day MA of 19.56, indicating a bullish trend. The MACD of 1.77 indicates Negative momentum. The RSI at 77.81 is Negative, neither overbought nor oversold. The STOCH value of 88.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KIDS.
OrthoPediatrics Risk Analysis
OrthoPediatrics disclosed 79 risk factors in its most recent earnings report. OrthoPediatrics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
OrthoPediatrics Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $10.48B | 19.66 | 11.59% | ― | 19.74% | 51.10% | |
71 Outperform | $18.03B | 22.89 | 6.36% | 1.02% | 8.62% | 0.09% | |
61 Neutral | $806.03M | -21.59 | -9.91% | ― | 16.15% | 27.21% | |
56 Neutral | $1.15B | -1.03 | -68.17% | ― | 4.89% | -30.14% | |
55 Neutral | $369.44M | -5.91 | -14.05% | ― | 2.99% | 51.77% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $1.09B | -12.57 | -547.17% | ― | 15.34% | 46.31% |
* Healthcare Sector Average
KIDS
OrthoPediatrics
30.87
14.46
88.12%
ATEC
Alphatec Holdings
7.04
-12.25
-63.50%
ENOV
Enovis
19.91
-11.47
-36.55%
OFIX
Orthofix Medical
9.07
-6.99
-43.52%
ZBH
Zimmer Biomet Holdings
94.52
-4.30
-4.35%
GMED
Globus Medical
78.05
16.85
27.53%
OrthoPediatrics Corporate Events
Business Operations and StrategyFinancial Disclosures
OrthoPediatrics Highlights Pediatric-Focused Strategy in Investor Deck
Positive
Oct 27, 2026
OrthoPediatrics Corp.’s executive team has scheduled upcoming presentations to investors and analysts in which they will use a 2026 investor deck outlining their pediatric-focused business model and financial metrics. The presentation reiter...
Business Operations and StrategyFinancial Disclosures
OrthoPediatrics Highlights Growth in 2026 Investor Presentations
Positive
Aug 4, 2026
OrthoPediatrics’ executive officers plan upcoming presentations to investors and analysts using a new 2026 investor deck that highlights the company’s pediatric-only focus and outlines its use of non-GAAP metrics such as free cash flow...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.