olivLaw · US equity research
OrthoPediatrics Corp. KIDS
Surgical & Medical Instruments & Apparatus · SIC 3841 · Vertical: Surgical & Medical Instruments & Apparatus (SIC 3841)
OrthoPediatrics Corp. (KIDS) designs, develops and markets implants, instruments and specialized braces for children with orthopedic conditions, and is the only medical device company focused exclusively on pediatric orthopedics. The company reported second-quarter 2026 revenue above 70 million USD and raised its full-year guidance, which points to faster growth, although operating losses persist.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, OrthoPediatrics Corp. (KIDS) stock was 33.51 USD (+6.69% on the day), with market capitalisation 875.0 m USD, beta 0.96, 52-week range 14.64–33.51 USD. Latest reported quarter (Q3 2026): revenue of 72.7 m USD (+18.6% YoY), net income of -5.9 m USD, diluted EPS -0.25 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 80.6
- overbought (≥ 70)
- Bollinger (20, 2)
- 17.37 – 33.54
- in the upper half of the band · %B 1.00 · band width 63.5%
- SMA 50 / 200
- 23.73 / 19.76
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 2.47 / 1.51
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +46.4% | −2.0% | +48.4 pp | — |
| 3 months | +50.2% | −2.2% | +52.4 pp | — |
| 6 months | +95.7% | +4.3% | +91.5 pp | — |
| Year to date | +88.7% | +10.6% | +78.1 pp | — |
| 1 year | +102.1% | +10.5% | +91.6 pp | −5.6% |
| 3 years | +24.7% | +73.7% | −49.0 pp | +6.7% |
| 5 years | −54.1% | +61.7% | −115.8 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 52.7 m | 52.4 m | 61.1 m | 61.3 m | 61.6 m | 59.4 m | 70.5 m | 72.7 m |
| Cost of revenue | 17.1 m | 14.1 m | 17.1 m | 16.0 m | 16.5 m | 16.0 m | 18.1 m | 18.7 m |
| Gross profit | 35.6 m | 38.3 m | 44.0 m | 45.3 m | 45.1 m | 43.4 m | 52.4 m | 54.0 m |
| Research & development | 2.9 m | 2.4 m | 2.2 m | 2.3 m | 2.3 m | 2.2 m | 2.3 m | 2.5 m |
| Operating income | -14.1 m | -11.0 m | -10.7 m | -9.4 m | -8.2 m | -8.3 m | -4.1 m | -4.2 m |
| Depreciation & amortisation | 4.0 m | 5.0 m | 5.2 m ≈ | 5.3 m ≈ | 5.6 m | 5.7 m | 5.7 m ≈ | 5.6 m ≈ |
| Interest expense | 1.3 m | 1.1 m | 1.1 m | 1.8 m | 1.9 m | 2.1 m | 2.5 m | 2.6 m |
| Pre-tax income | -16.4 m | -10.5 m | -7.1 m | -11.9 m | -9.8 m | -10.9 m | -6.9 m | -6.0 m |
| Income tax | -340.0 k | 196.0 k | 49.0 k | -125.0 k | 340.0 k | -171.0 k | 234.0 k | -109.0 k |
| Net income | -16.1 m | -10.7 m | -7.1 m | -11.8 m | -10.1 m | -10.7 m | -7.2 m | -5.9 m |
| Diluted EPS | -0.69 ≈ | -0.46 | -0.30 | -0.50 | -0.43 ≈ | -0.45 | -0.30 | -0.25 |
| Operating cash flow | -4.0 m | -4.2 m | -10.5 m ≈ | -581.0 k ≈ | 10.3 m | -3.3 m | 928.0 k ≈ | 4.5 m ≈ |
| Capex | -262.0 k | 4.2 m | 3.4 m ≈ | 2.8 m ≈ | 599.0 k | 1.8 m | 4.0 m ≈ | 2.9 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 57.6 m | 72.6 m | 71.1 m | 98.0 m | 122.3 m | 148.7 m | 204.7 m | 236.3 m |
| Revenue YoY | +26.2% | +26.0% | −2.0% | +37.9% | +24.7% | +21.6% | +37.6% | +15.4% |
| Net income | -12.0 m | -13.7 m | -32.9 m | -16.3 m | 1.3 m | -21.0 m | -37.8 m | -39.6 m |
| Net income YoY | unavailable | unavailable | unavailable | unavailable | unavailable | −1,767.2% | unavailable | unavailable |
| Diluted EPS | unavailable | -0.94 | -1.82 | -0.84 | 0.06 | -0.92 | -1.64 | -1.69 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | unavailable | −1,633.3% | unavailable | unavailable |
| net % | -20.9% | -18.9% | -46.3% | -16.6% | 1.0% | -14.1% | -18.5% | -16.8% |
| Free cash flow | -20.8 m | -29.6 m | -29.0 m | -21.2 m | -31.8 m | -43.9 m | -41.3 m | -16.0 m |
Reported results vs expectations
Loading…
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 19.6 m USD
- Financial debt
- 101.7 m USD
- Net debt
- 82.1 m USD
- Equity
- 346.6 m USD
- Total assets
- 508.6 m USD
- Debt / equity
- 0.29x
- Current ratio
- 5.55x
- ROE
- -11.3%
- ROA
- -8.1%
- FCF margin
- -6.8%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 71.1 m | 98.0 m | 122.3 m | 148.7 m | 204.7 m | 236.3 m | SEC (XBRL)· 04 Mar 2026verified |
| Cost of revenue | 16.0 m | 24.6 m | 31.6 m | 37.5 m | 56.1 m | 63.7 m | SEC (XBRL)· 04 Mar 2026verified |
| Gross profit | 55.0 m | 73.4 m | 90.7 m | 111.3 m | 148.6 m | 172.7 m | SEC (XBRL)· 04 Mar 2026verified |
| Research & development | 5.3 m | 5.5 m | 8.5 m | 10.9 m | 11.0 m | 9.1 m | SEC (XBRL)· 04 Mar 2026verified |
| Operating income | -26.8 m | -18.0 m | -25.4 m | -26.8 m | -35.0 m | -39.2 m | SEC (XBRL)· 04 Mar 2026verified |
| Depreciation & amortisation | 8.0 m | 10.7 m | 13.1 m | 17.4 m | 19.1 m | 21.1 m | SEC (XBRL)· 04 Mar 2026verified |
| EBITDA | -18.7 m ≈ | -7.3 m ≈ | -12.3 m ≈ | -9.4 m ≈ | -15.9 m ≈ | -18.1 m ≈ | SEC (XBRL)· 04 Mar 2026derived |
| Interest expense | 3.4 m | 56.0 k | 2.4 m | -198.0 k | 2.6 m | 6.0 m | SEC (XBRL)· 04 Mar 2026verified |
| Pre-tax income | -33.7 m | -17.4 m | -3.7 m | -21.3 m | -41.9 m | -39.2 m | SEC (XBRL)· 04 Mar 2026verified |
| Income tax | -723.0 k | -1.1 m | -4.9 m | -338.0 k | -4.1 m | 460.0 k | SEC (XBRL)· 04 Mar 2026verified |
| Net income | -32.9 m | -16.3 m | 1.3 m | -21.0 m | -37.8 m | -39.6 m | SEC (XBRL)· 04 Mar 2026verified |
| Diluted EPS | -1.82 | -0.84 | 0.06 | -0.92 | -1.64 | -1.69 | SEC (XBRL)· 04 Mar 2026verified |
| Weighted average diluted shares | 18.1 m | 19.3 m | 20.9 m | 22.7 m | 23.1 m | 23.5 m | SEC (XBRL)· 04 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 28.8 m | 7.6 m | 9.0 m | 31.1 m | 43.8 m | 19.6 m | SEC (XBRL)· 04 Mar 2026verified |
| Receivables | 17.2 m | 17.9 m | 24.8 m | 34.6 m | 42.4 m | 53.8 m | SEC (XBRL)· 04 Mar 2026verified |
| Inventories | 53.0 m | 57.6 m | 78.2 m | 105.9 m | 117.0 m | 133.8 m | SEC (XBRL)· 04 Mar 2026verified |
| Current assets | 158.4 m | 133.6 m | 226.7 m | 226.5 m | 237.2 m | 256.4 m | SEC (XBRL)· 04 Mar 2026verified |
| Property, plant & equipment, net | 27.2 m | 28.5 m | 34.3 m | 41.0 m | 50.6 m | 49.6 m | SEC (XBRL)· 04 Mar 2026verified |
| Goodwill | 70.5 m | 72.3 m | 86.8 m | 83.7 m | 93.8 m | 109.3 m | SEC (XBRL)· 04 Mar 2026verified |
| Intangibles (excl. goodwill) | 50.3 m | 55.5 m | 65.0 m | 69.3 m | 64.4 m | 64.8 m | SEC (XBRL)· 04 Mar 2026verified |
| Total assets | 320.4 m | 304.3 m | 427.7 m | 438.7 m | 473.2 m | 508.6 m | SEC (XBRL)· 04 Mar 2026verified |
| Accounts payable | 10.0 m | 9.3 m | 11.2 m | 12.6 m | 8.9 m | 18.8 m | SEC (XBRL)· 04 Mar 2026verified |
| Short-term debt | 131.0 k | 137.0 k | 144.0 k | 152.0 k | 897.0 k | 1.9 m | SEC (XBRL)· 04 Mar 2026verified |
| Long-term debt | 1.0 m | 907.0 k | 763.0 k | 9.9 m | 73.0 m | 99.8 m | SEC (XBRL)· 04 Mar 2026verified |
| Current liabilities | 35.0 m | 29.7 m | 30.9 m | 41.7 m | 34.0 m | 46.2 m | SEC (XBRL)· 04 Mar 2026verified |
| Total liabilities | 85.6 m | 78.9 m | 49.1 m | 61.7 m | 118.6 m | 162.0 m | SEC (XBRL)· 04 Mar 2026verified |
| Equity | 234.8 m † | 225.4 m † | 378.6 m † | 377.0 m † | 354.6 m † | 346.6 m † | SEC (XBRL)· 04 Mar 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | -18.5 m | -13.1 m | -21.8 m | -27.0 m | -27.0 m | -4.9 m | SEC (XBRL)· 04 Mar 2026verified |
| Capex | 10.5 m | 8.1 m | 10.0 m | 16.9 m | 14.3 m | 11.1 m | SEC (XBRL)· 04 Mar 2026verified |
| Free cash flow | -29.0 m ≈ | -21.2 m ≈ | -31.8 m ≈ | -43.9 m ≈ | -41.3 m ≈ | -16.0 m ≈ | SEC (XBRL)· 04 Mar 2026derived |
| Investing cash flow | -69.7 m | -7.4 m | -113.4 m | 41.7 m | -13.2 m | -43.6 m | SEC (XBRL)· 04 Mar 2026verified |
| Financing cash flow | 46.7 m | 6.0 k | 136.0 m | 7.3 m | 53.1 m | 24.0 m | SEC (XBRL)· 04 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 43.8% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 875.0 m USD
Key indicators
Coverage and freshness
Score by group
44% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 4.05 – 8.22 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)4.05 – 8.22 (Mid 5.64)WACC 8.9% · starting FCFF 10.9 m USD · terminal value share of EV 75%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/EBITDAunavailable · the base of the ratio is not positive
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)unavailable · input data missing
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 43.8% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | -4.9% | 33 (vs peers) | 24% |
| Net margin · Quality | -12.8% | 41 (vs peers) | 14% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | 24.6% | 100 (on a fixed band) | 19% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | -2.7x | 0 (on a fixed band) | 14% |
| Current ratio · Balance sheet | 4.6x | 100 (on a fixed band) | 10% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 0.4% | 5 (on a fixed band) | 19% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet40/100 · 2/3 factors with a value
- Growth· partial100/100 · 1/2 factors with a value
- Quality36/100 · 2/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partial5/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
OrthoPediatrics Corp (KIDS). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 236.3 m USD in 2025; YoY growth 15.4%; net margin -12.8%; ROE -9.8%.
The estimated value range is 4.05–8.22 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 5.64 USD, the price of 33.51 USD leaves a potential of -83.2% (value / price − 1) and a margin of safety of -493.7% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 43.8% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Revenue CAGR 3Y: 24.6%
- Current ratio: 4.6x
What contradicts it
- Interest coverage: -2.7x
- FCF yield: 0.4%
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Surgical & Medical Instruments & Apparatus (SIC 3841) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| SYKStryker Corp | 118.2 bn | 33.1 | 16.0% | 13.8% | +11.2% | −16% / +5% |
| MMM3m Company | 91.5 bn | 26.4 | 80.8% | 14.0% | +1.5% | +3% / +114% |
| BSXBoston Scientific Corporation | 63.1 bn | 18.4 | 14.3% | 16.6% | +19.9% | −57% / −22% |
| BDXBecton, Dickinson And Company | 54.0 bn | 59.8 | 3.8% | 4.0% | +8.2% | +30% / +7% |
| RMDResMed Inc. | 31.9 bn | 20.7 | 26.4% | 27.8% | +9.9% | −11% / +44% |
| DXCMDexcom, Inc. | 30.9 bn | 32.7 | 37.7% | 19.4% | +15.6% | +31% / −28% |
| WSTWest Pharmaceutical Services, Inc. | 28.4 bn | 45.7 | 21.2% | 18.8% | +6.3% | +47% / +16% |
| SOLVSolventum Corporation | 15.2 bn | 10.9 | 34.0% | 17.3% | +0.9% | +5% / unavailable |
| PENPenumbra, Inc | 12.7 bn | 81.2 | 10.7% | 10.1% | +17.5% | +10% / +45% |
| GMEDGlobus Medical, Inc. | 11.7 bn | 22.3 | 11.8% | 17.0% | +16.7% | −4% / +94% |
| TFXTeleflex Incorporated | 6.4 bn | — | -28.9% | -45.8% | +17.2% | +31% / −34% |
| HAEHaemonetics Corporation | 5.8 bn | 62.3 | 11.2% | 7.1% | −2.0% | +57% / +58% |
| MMSIMerit Medical Systems Inc | 5.4 bn | 34.0 | 9.8% | 9.9% | +11.8% | +5% / +27% |
| HTFLHeartflow, Inc. | 4.9 bn | — | — | -55.8% | +39.9% | +75% / unavailable |
| ICUIIcu Medical Inc | 4.3 bn | 144.2 | 1.4% | 1.4% | −6.3% | +16% / +97% |
| LMATLemaitre Vascular, Inc. | 2.0 bn | 30.9 | 16.8% | 25.0% | +13.5% | +6% / +67% |
| TNDMTandem Diabetes Care, Inc. | 1.3 bn | — | -48.0% | -6.1% | +7.9% | −9% / −6% |
| IARTIntegra Lifesciences Holdings Corp | 1.2 bn | 88.3 | 1.2% | 0.8% | +1.5% | +13% / −62% |
| BBNXBeta Bionics, Inc. | 921.5 m | — | -23.9% | -65.3% | +53.9% | −46% / unavailable |
| KIDSOrthoPediatrics Corp | 875.0 m | — | -9.8% | -12.8% | +15.4% | +102% / +25% |
| SSIISs Innovations International, Inc. | 454.9 m | — | -26.1% | -23.7% | +105.7% | −66% / unavailable |
| CARLCarlsmed, Inc. | 439.3 m | — | -6,196.9% | -57.4% | +85.9% | −1% / unavailable |
| BWAYBrainsway Ltd. | 439.0 m | 224.2 | 5.6% | 7.1% | +29.0% | +28% / +258% |
| EMBCEmbecta Corp. | 369.4 m | 4.4 | — | 8.6% | −3.8% | −49% / −64% |
| CLPTClearPoint Neuro, Inc. | 325.7 m | — | -167.5% | -79.4% | +17.8% | −30% / +76% |
1- and 3-year price returns: for KIDS from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 10-Q (28 Oct 2026), 8-K (27 Oct 2026 · results).
In brief
OrthoPediatrics Corp. (KIDS) designs, develops and markets implants, instruments and specialized braces for children with orthopedic conditions, and is the only medical device company focused exclusively on pediatric orthopedics. The company reported second-quarter 2026 revenue above 70 million USD and raised its full-year guidance, which points to faster growth, although operating losses persist.
SWOT
Strengths
- The company is exclusively focused on pediatric orthopedics, has an extensive product portfolio and a network of dedicated sales agencies.
- Revenue has grown steadily over the years, and a high gross margin shows the strength of the product model.
- Investment in clinical education and partnerships with pediatric surgical societies strengthens customer loyalty.
Weaknesses
- The company has reported operating losses in every year since inception, and its accumulated deficit is significant.
- The consignment model requires large inventories and working capital, which pressures cash flow.
- Reliance on independent sales agencies and third-party manufacturers for implants creates operational risks.
Opportunities
- Launching higher-value, more capital-efficient products could lift margins and cash flow.
- Expansion in Brazil, Europe and other international markets could add new revenue.
- The OSSIO agreement could open access to metal-free fixation technology in US children's hospitals.
Threats
- Trade tariffs and retaliation could raise costs and reduce demand in international markets.
- Changes to Medicaid reimbursement policies could reduce procedure volumes and pressure prices.
- Respiratory epidemics such as RSV could reduce hospital capacity and the volume of elective procedures.
Risks
- Persistent operating losseshigh
The company has not yet achieved durable profitability, and if revenue does not grow enough, losses could continue.
- Need for additional capitalhigh
If cash flow does not cover requirements, the company could turn to equity or debt financing, which could dilute shareholders.
- International trade risksmedium
Tariffs, trade restrictions and currency fluctuations could affect margins and sales outside the United States.
- Dependence on elective proceduresmedium
Most products are used in elective surgery, so hospital deferrals could quickly affect revenue.
- Intangible asset impairmentlow
If actual results of acquired trademarks fall short of estimates, the company could record further impairment charges.
Investment thesis
What would need to be true (bull case)
- Trauma revenue growth and the raised guidance for 2026 could show the business entering a phase of acceleration.
- If adjusted EBITDA and cash flow keep improving, the company could reach cash-flow breakeven in 2026.
- Its focus exclusively on pediatric orthopedics could give it a lasting advantage with children's hospitals.
What would break the thesis
- The company is still loss-making, and if growth slows, financing pressure could increase.
- The drop in scoliosis revenue shows some product lines can be volatile, which could affect quarterly results.
- Trade risks and debt tied to acquisitions could limit the company's financial flexibility.
What to watch
- Delivery of the 2026 revenue guidance2026
- Achievement of the announced 2026 cash-flow breakeven2026
- Scoliosis revenue trend after the second-quarter declineQ3 2026
- Effect of trade tariffs on international revenue and costsnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 10-Q (28 Oct 2026), 8-K (27 Oct 2026 · results).
The business
OrthoPediatrics Corp. is a medical device company headquartered in Warsaw, Indiana, listed on Nasdaq under the symbol KIDS, focused exclusively on the pediatric orthopedic market. It sells trauma and deformity correction systems, scoliosis systems, sports medicine products and specialized braces, largely manufactured in-house. Revenue reached 236.3 million USD in fiscal 2025, and the company operates over 50 orthotic and prosthetic clinics in the United States, largely through expansion and acquisitions including Boston O&P.
The commercial model relies on consigned implant and instrument sets in hospitals, which requires significant up-front inventory investment before revenue is recognized. The company sells through over 30 independent sales agencies in the US, through distributors in over 75 countries and through direct sales in some European markets. The company states it is the category leader in its market, with emphasis on clinical education for pediatric surgeons.
In 2026 the company entered an exclusive distribution agreement with OSSIO, Inc. for a bio-integrative, metal-free fixation technology for pediatric fractures. Strategy focuses on growing volume in high-volume children's hospitals, expanding O&P clinics and launching higher-value, more capital-efficient products.
Segments
Trauma and deformity correction
This is the largest segment, with revenue of 52.6 million USD in the second quarter of 2026, up 26% year over year, supported by Cannulated Screws, PNP Femur, PediPlates and Pega systems. It was the main driver of growth in that quarter.
Scoliosis
Scoliosis revenue was 16.9 million USD in the second quarter of 2026, down 9% year over year, due to lower 7D Technology revenue and lower set sales to international distributors. The company noted growth in Response fusion revenue and the addition of Verteglide.
Bracing and O&P clinics
Specialized bracing and pediatric orthotic and prosthetic clinics complete the offering, and growth in this area is linked to clinic expansion through acquisitions and new openings, which added staff and operating costs.
Market context
The company estimates the portion of the market it serves is a 6.2 billion USD opportunity globally, including over 2.8 billion USD in the United States. The market has historically relied on adult implants repurposed for children, leaving room for products designed specifically for pediatric anatomy.
The market is concentrated in children's hospitals, where relatively few pediatric orthopedic surgeons practice, which the company says allows faster penetration. Demand, however, depends on elective procedure volumes and on reimbursement from public and private payors.
Trends
- Growing trauma volumetailwind
Demand for trauma and deformity correction systems rose strongly in the second quarter of 2026, suggesting the company's share in this segment is strengthening.
- International expansiontailwind
International revenue grew in the second quarter of 2026, and the new Brazilian legal entity and warehouses in Europe and Australia could support longer-term growth.
- Trade tariff pressureheadwind
US tariffs and possible retaliation by other countries could raise product costs and reduce demand, especially for imported products.
- Medicaid reimbursement changesmixed
Legislative changes to Medicaid coverage could reduce procedure volumes and pressure prices, although the effect depends on state policies.
Competitive position
The company presents itself as the only global medical device company focused exclusively on pediatric orthopedics, which gives it a specialization advantage. However, competition from general orthopedic implant makers that adapt adult products for children remains a real threat.
Large orthopedic competitors have greater research and sales resources, and in some regions local companies may offer lower prices. The company differentiates through anatomically appropriate pediatric designs, surgeon education and relationships with sales agencies.
- General orthopedic implant makers
Large makers of adult orthopedic implants can extend into pediatric ranges, making them an indirect competitor for the company's products.
- Scoliosis system suppliers
Companies offering scoliosis treatment systems compete directly with the company's scoliosis segment, especially on implant sets.
- Specialized brace makers
Suppliers of braces and non-surgical orthopedic devices compete in the company's pediatric bracing segment.
- Local distributors in Europe
Local distributors and agencies in international markets can gain share through direct relationships with hospitals.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- Comitetul European pentru Protecția Datelor a lansat platforma Privacy for KidsJuridice.ro · 04 Nov 2026 · RO
- Kids who eat more ultra-processed foods show a troubling brain responseScienceDaily · 03 Nov 2026 · EN
- Paidiki Chara Reused Sick Kids With Fake Names And PhotosTo Vima International (GR, EN) · 03 Nov 2026 · EN
- Newborn deaths fell by 50% in Flint following the launch of Rx Kids, new research findsMedical Xpress · 03 Nov 2026 · EN
- Supreme Court weighs if Colorado preschools must admit kids of same-sex couplesThe Hill · 03 Nov 2026 · EN
- How to reduce harmful sexual behavior and protect your kids and their peersPhys.org · 03 Nov 2026 · EN
- Tech entrepreneur , his wife and kids among dead in Florida jet crash – NBC 5 Dallas - Fort WorthSurge — GDELT DOC · 03 Nov 2026 · RO
- What Australian kids are teaching their parents about techPhys.org · 02 Nov 2026 · EN
- Restricting candy may increase kids' urge to overeat, research suggestsMedical Xpress · 02 Nov 2026 · EN
- If you really want to help your adult kids and grandkids, give them money while you’re still aliveMarketWatch — Top Stories · 31 Oct 2026 · EN
- What the Cornell 7 sexual assault allegations reveal about how parents talk to their kids about rapePhys.org · 30 Oct 2026 · EN
- Dutch government warns of privacy risks in EU Kids ActEuractiv · 30 Oct 2026 · EN
- ‘He was heartbroken’: My husband’s kids never helped when he was gravely ill. Was he right to leave everything to me?MarketWatch — Top Stories · 30 Oct 2026 · EN
- Halloween is typically a massive candy fest for kids—but it doesn't have to beMedical Xpress · 30 Oct 2026 · EN
- West Virginia sues TikTok, alleging app is ‘harming kids’The Hill · 29 Oct 2026 · EN
- THE HACK: Austrian law tests EU Kids ActEuractiv · 29 Oct 2026 · EN
- CNA colectează opinii privind EU Kids ActJuridice.ro · 28 Oct 2026 · RO
- DraftKings CEO Jason Robins says parents should talk with kids about gambling addictionCNBC — Top News · 28 Oct 2026 · EN
- China's families are now supporting more old people than kidsBBC World News · 27 Oct 2026 · EN
- With China having fewer kids, dairies rethink milk for adultsNikkei Asia · 27 Oct 2026 · EN
SEC filings
- Quarterly report28 Oct 2026
- Current report27 Oct 2026Regulation FD disclosure · Financial statements and exhibits
- Current report27 Oct 2026Results of operations · Financial statements and exhibits
- Quarterly report05 Aug 2026
- Current report04 Aug 2026Regulation FD disclosure · Financial statements and exhibits
- Current report04 Aug 2026Results of operations · Financial statements and exhibits
- Current report04 Jun 2026Shareholder vote
- Quarterly report01 May 2026
- Current report30 Apr 2026Regulation FD disclosure · Financial statements and exhibits
- Current report30 Apr 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / OrthoPediatrics Corp. · 04 Mar 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / OrthoPediatrics Corp. · 05 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / OrthoPediatrics Corp. · 04 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.