OrthoPediatrics (NASDAQ:KIDS) Announces Quarterly Earnings Results

Key Points

• OrthoPediatrics reported Q1 revenue of $59.36M (+13%) and EPS of ($0.42), beating estimates, with adjusted EBITDA turning positive at $2.2M but still a GAAP net loss of $0.45/share and $5M of free cash flow used in the quarter.
• The company raised 2026 guidance to $263M–$267M (11%–13% growth), reaffirmed ~$25M adjusted EBITDA and a goal of full‑year free‑cash‑flow breakeven, while early beta launches (3P Hip, VerteGlide, TRAXIO), OPSB expansion and >20% international growth are expected to drive higher ASPs, margin expansion and capital efficiency.
• Insiders have been selling recently (58,171 shares over 90 days, including the CFO), though they still own 32.7%, and the stock trades near $15 versus a consensus analyst target of $24.78 (average rating: Moderate Buy), reflecting mixed market sentiment.

OrthoPediatrics (NASDAQ:KIDS - Get Free Report) announced its quarterly earnings data on Thursday. The company reported ($0.42) EPS for the quarter, beating the consensus estimate of ($0.44) by $0.02, FiscalAI reports. OrthoPediatrics had a negative net margin of 16.77% and a negative return on equity of 6.70%. The business had revenue of $59.36 million during the quarter, compared to analysts' expectations of $58.34 million.

Here are the key takeaways from OrthoPediatrics' conference call:

• Raised 2026 guidance to a revenue range of $263M–$267M (11%–13% growth), and reaffirmed ~$25M adjusted EBITDA with a goal of full-year free cash flow breakeven — management called this a sign of sustained execution.
• Early beta launches — including 3P Hip, VerteGlide, and TRAXIO — are generating strong demand; the company expects these products to drive higher ASPs, margin expansion, and improved capital efficiency as set deployments scale.
• OPSB (specialty bracing and clinics) grew >20% in Q1, with clinic expansion ahead of plan and a target of 27 territories by end of 2027, supporting both revenue and profitability upside.
• International revenue accelerated (>20% growth) and the business received full EU MDR approvals for key portfolios, enabling broader European commercialization and stabilizing LATAM through the Brazil distributor acquisition.
• While Q1 revenue was $59.4M (+13%) and adjusted EBITDA turned positive ($2.2M), the company still reported a GAAP net loss of $0.45/share, used $5M free cash flow in Q1, and is keeping guidance and set‑deployment conservative, which could limit near-term upside.

OrthoPediatrics Stock Performance

Shares of KIDS traded up $0.42 during trading hours on Thursday, hitting $15.06. The stock had a trading volume of 242,989 shares, compared to its average volume of 149,142. The company has a debt-to-equity ratio of 0.28, a quick ratio of 2.65 and a current ratio of 5.55. The firm has a 50-day moving average price of $16.73 and a 200 day moving average price of $17.28. OrthoPediatrics has a fifty-two week low of $14.42 and a fifty-two week high of $23.70. The firm has a market capitalization of $386.89 million, a price-to-earnings ratio of -8.91 and a beta of 1.16.

Insider Transactions at OrthoPediatrics

In other OrthoPediatrics news, CFO Fred Hite sold 12,993 shares of the company's stock in a transaction on Monday, March 16th. The shares were sold at an average price of $17.25, for a total transaction of $224,129.25. Following the completion of the transaction, the chief financial officer directly owned 277,477 shares in the company, valued at approximately $4,786,478.25. This represents a 4.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Joseph W. Hauser sold 8,596 shares of the company's stock in a transaction on Monday, March 16th. The stock was sold at an average price of $17.25, for a total transaction of $148,281.00. Following the transaction, the insider owned 194,767 shares of the company's stock, valued at $3,359,730.75. This represents a 4.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 58,171 shares of company stock worth $1,003,450. Insiders own 32.70% of the company's stock.

Hedge Funds Weigh In On OrthoPediatrics

A number of large investors have recently added to or reduced their stakes in the stock. Invesco Ltd. raised its position in OrthoPediatrics by 14.5% during the fourth quarter. Invesco Ltd. now owns 39,002 shares of the company's stock worth $693,000 after acquiring an additional 4,925 shares during the period. XTX Topco Ltd acquired a new position in OrthoPediatrics during the fourth quarter worth $188,000. Tudor Investment Corp ET AL raised its position in OrthoPediatrics by 59.3% during the fourth quarter. Tudor Investment Corp ET AL now owns 112,996 shares of the company's stock worth $2,007,000 after acquiring an additional 42,061 shares during the period. Millennium Management LLC raised its position in OrthoPediatrics by 48.0% during the fourth quarter. Millennium Management LLC now owns 1,396,495 shares of the company's stock worth $24,802,000 after acquiring an additional 452,840 shares during the period. Finally, Engineers Gate Manager LP acquired a new position in OrthoPediatrics during the fourth quarter worth $226,000. 69.05% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several analysts have commented on KIDS shares. Weiss Ratings restated a "sell (e+)" rating on shares of OrthoPediatrics in a research note on Tuesday, April 21st. TD Cowen upgraded shares of OrthoPediatrics to a "strong-buy" rating in a research note on Tuesday, January 27th. Needham & Company LLC boosted their target price on shares of OrthoPediatrics from $26.00 to $30.00 and gave the company a "buy" rating in a research note on Friday, February 27th. BTIG Research boosted their target price on shares of OrthoPediatrics from $23.00 to $24.00 and gave the company a "buy" rating in a research note on Friday, February 27th. Finally, Truist Financial boosted their target price on shares of OrthoPediatrics from $19.00 to $20.00 and gave the company a "hold" rating in a research note on Monday, March 2nd. One research 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 assigned a Sell rating to the stock. According to data from MarketBeat, OrthoPediatrics currently has an average rating of "Moderate Buy" and a consensus target price of $24.78.

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.

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