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

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

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 Stock Performance

Shares of NASDAQ:KIDS traded up $2.00 during trading on Friday, hitting $19.79. 73,214 shares of the stock were exchanged, compared to its average volume of 141,899. The company has a market capitalization of $496.27 million, a price-to-earnings ratio of -10.14 and a beta of 1.12. OrthoPediatrics has a 1-year low of $15.28 and a 1-year high of $26.40. The company’s fifty day simple moving average is $17.60 and its 200-day simple moving average is $18.15. The company has a debt-to-equity ratio of 0.28, a quick ratio of 3.52 and a current ratio of 7.40.

More OrthoPediatrics News

Here are the key news stories impacting OrthoPediatrics this week:

• Positive Sentiment: Major analyst price-target increases: Needham raised its PT to $30 with a “buy” (implies ~54.6% upside from the cited $19.40 price) and BTIG raised its PT to $24 with a “buy” (~23.7% upside). Analyst enthusiasm and higher targets are lifting sentiment. Benzinga
• Positive Sentiment: Q4 results beat: OrthoPediatrics reported Q4 revenue of $61.61M (above the ~$61.27M consensus) and an EPS loss of ($0.26) that topped estimates (-$0.37). Beats on revenue and EPS often prompt upward revisions and justify the analyst raises. Q4 Highlights
• Positive Sentiment: Management reiterated FY2026 revenue target of $262M–$266M and described accelerating product innovation—this confirms guidance and supports growth-story narratives. Seeking Alpha
• Neutral Sentiment: Company to participate in upcoming investor conferences — provides management access to investors and may sustain interest but is not an immediate revenue driver. GlobeNewswire
• Neutral Sentiment: Investor materials and call coverage published (earnings transcript, MarketBeat/Zacks coverage) — useful for detail-oriented investors but largely confirm already-public beats and guidance. Zacks analysis MarketBeat press release
• Negative Sentiment: Profitability remains a headwind: OrthoPediatrics still reported a net loss, negative net margin (~20%) and negative return on equity — structural profitability concerns and continued losses temper the bullish case and keep valuation metrics stretched until sustained profitability appears. Zacks – loss report
• Negative Sentiment: FY26 EPS guidance detail absent/uncertain in the update — revenue range was reiterated but the company did not provide clear EPS guidance in the release, leaving earnings-per-share path unclear for the year. This uncertainty can cap multiple expansion. Company release

Institutional Trading of OrthoPediatrics

Hedge funds and other institutional investors have recently made changes to their positions in the business. Russell Investments Group Ltd. grew its holdings in OrthoPediatrics by 433.1% during the 3rd quarter. Russell Investments Group Ltd. now owns 1,402 shares of the company’s stock worth $26,000 after acquiring an additional 1,139 shares during the period. Northwestern Mutual Wealth Management Co. raised its holdings in shares of OrthoPediatrics by 5,226.5% in the 4th 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 acquired a new stake in OrthoPediatrics during the 3rd quarter valued at $54,000. BNP Paribas Financial Markets increased its stake in shares of OrthoPediatrics by 60.2% during the third quarter. BNP Paribas Financial Markets now owns 3,288 shares of the company’s stock worth $61,000 after purchasing an additional 1,235 shares during the period. Finally, State of Wyoming boosted its holdings in OrthoPediatrics by 189.7% in the 4th quarter. State of Wyoming now owns 6,822 shares of the company’s stock valued at $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.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on KIDS. BTIG Research lifted their price target on shares of OrthoPediatrics from $23.00 to $24.00 and gave the company a “buy” rating in a report on Friday. Weiss Ratings reissued a “sell (e+)” rating on shares of OrthoPediatrics in a research report on Thursday, January 22nd. Needham & Company LLC lifted their price target on shares of OrthoPediatrics from $26.00 to $30.00 and gave the stock a “buy” rating in a research note on Friday. Canaccord Genuity Group initiated coverage on OrthoPediatrics in a research report on Wednesday, December 10th. They issued a “buy” rating and a $24.00 target price for the company. Finally, TD Cowen upgraded OrthoPediatrics to a “strong-buy” rating in a research report on Tuesday, January 27th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $24.44.

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.