OrthoPediatrics (NASDAQ:KIDS) Announces Earnings Results

by · The Markets Daily

OrthoPediatrics (NASDAQ:KIDS – Get Free Report) released its earnings results on Tuesday. The company reported ($0.26) EPS for the quarter, beating the consensus estimate of ($0.30) by $0.04, FiscalAI reports. The company had revenue of $70.51 million during the quarter, compared to analysts’ expectations 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 Trading Up 0.0%

NASDAQ:KIDS traded up $0.01 during mid-day trading on Tuesday, hitting $20.88. The company had a trading volume of 268,888 shares, compared to its average volume of 155,062. The company has a current ratio of 5.21, a quick ratio of 2.37 and a debt-to-equity ratio of 0.29. OrthoPediatrics has a fifty-two week low of $14.42 and a fifty-two week high of $22.80. The business’s fifty day moving average is $19.08 and its two-hundred day moving average is $17.82.

Analyst Upgrades and Downgrades

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

View Our Latest Report on OrthoPediatrics

Hedge Funds Weigh In On OrthoPediatrics

Institutional investors have recently modified their holdings of the stock. Russell Investments Group Ltd. raised its position in shares of OrthoPediatrics by 433.1% in the 3rd 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 period. Northwestern Mutual Wealth Management Co. grew its holdings in OrthoPediatrics by 5,226.5% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,610 shares of the company’s stock valued at $46,000 after purchasing an additional 2,561 shares during the period. Caption Management LLC bought a new stake in OrthoPediatrics in the third quarter valued at approximately $54,000. BNP Paribas Financial Markets increased its stake 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 purchasing an additional 1,235 shares in the last quarter. Finally, State of Wyoming raised its holdings in OrthoPediatrics by 189.7% in the fourth 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 and hedge funds.

OrthoPediatrics Company Profile

(Get Free Report)

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.

See Also