OrthoPediatrics (NASDAQ:KIDS) Issues Quarterly Earnings Results, Beats Expectations By $0.04 EPS

OrthoPediatrics (NASDAQ:KIDS) announced its quarterly earnings results on Tuesday. The company reported ($0.26) EPS for the quarter, topping the consensus estimate of ($0.30) by $0.04, FiscalAI reports. OrthoPediatrics had a negative net margin of 16.31% and a negative return on equity of 7.01%. The firm had revenue of $70.51 million for the quarter, compared to analyst estimates of $68.21 million.

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 1.0%

Shares of OrthoPediatrics stock traded up $0.21 during mid-day trading on Wednesday, hitting $21.09. 95,740 shares of the stock were exchanged, compared to its average volume of 159,490. The company has a 50-day simple moving average of $19.08 and a 200 day simple moving average of $17.82. The company has a current ratio of 5.21, a quick ratio of 2.37 and a debt-to-equity ratio of 0.29. The stock has a market capitalization of $541.59 million, a price-to-earnings ratio of -12.55 and a beta of 0.98. OrthoPediatrics has a twelve month low of $14.42 and a twelve month high of $22.80.

Key OrthoPediatrics News

Here are the key news stories impacting OrthoPediatrics this week:

• Positive Sentiment: Needham & Company raised its price target from $30 to $35 and upgraded OrthoPediatrics to “Buy.” The new target implies approximately 62% upside from the referenced share price, providing a strong bullish signal. Benzinga analyst price-target report
• Positive Sentiment: OrthoPediatrics reported second-quarter revenue of $70.51 million, ahead of the $68.21 million analyst consensus. Its adjusted loss of $0.26 per share was narrower than estimates ranging from $0.30 to $0.31, suggesting better-than-expected operating performance. Zacks Q2 earnings report
• Positive Sentiment: The company increased its fiscal 2026 revenue guidance to $265 million-$269 million, broadly surrounding but modestly above the roughly $265.1 million consensus estimate. The guidance increase reinforces expectations for continued growth in pediatric orthopedic products. OrthoPediatrics second-quarter results and guidance release
• Neutral Sentiment: Management’s earnings call and the published earnings snapshot provide additional detail on the quarter and outlook, but the main market-moving points are the earnings beat and higher guidance. Q2 2026 earnings call transcript
• Negative Sentiment: OrthoPediatrics remains unprofitable: the quarterly loss of $0.26 per share was worse than the $0.11 loss reported a year earlier, while its net margin and return on equity remain negative. This limits the upside from the earnings beat.

Analyst Upgrades and Downgrades

KIDS has been the topic of a number of research reports. Needham & Company LLC raised their target price on shares of OrthoPediatrics from $30.00 to $35.00 and gave the stock a “buy” rating in a research report on Wednesday. Canaccord Genuity Group set a $25.00 price objective on shares of OrthoPediatrics in a research report on Friday, April 24th. Truist Financial set a $22.00 target price on shares of OrthoPediatrics in a report on Wednesday. Piper Sandler reiterated an “overweight” rating and set a $25.00 target price on shares of OrthoPediatrics in a research note on Wednesday. Finally, BTIG Research reissued a “buy” rating and set a $24.00 price target on shares of OrthoPediatrics in a report on Friday, May 1st. Nine research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, OrthoPediatrics currently has a consensus rating of “Moderate Buy” and an average price target of $25.89.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the business. Russell Investments Group Ltd. grew its position in shares of 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 purchasing an additional 1,139 shares during the period. Northwestern Mutual Wealth Management Co. grew its holdings in 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 buying an additional 2,561 shares during the period. Caption Management LLC acquired a new position in shares of OrthoPediatrics during the 3rd quarter valued at about $54,000. BNP Paribas Financial Markets lifted its holdings in shares of OrthoPediatrics by 60.2% during the 3rd quarter. BNP Paribas Financial Markets now owns 3,288 shares of the company’s stock worth $61,000 after acquiring an additional 1,235 shares during the period. Finally, State of Wyoming boosted its position in shares of 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 acquiring an additional 4,467 shares during the last quarter. Hedge funds and other institutional investors own 69.05% of the company’s stock.

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.