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1. Company Snapshot

1.a. Company Description

OrthoPediatrics Corp., a medical device company, designs, develops, and markets anatomically appropriate implants and devices for the treatment of children with orthopedic conditions in the United States and internationally.The company offers trauma and deformity correction products; scoliosis procedures for the treatment of spinal deformity; and sports medicine and other products.Its products comprise PediLoc, PediPlates, cannulated screws, PediFlex nail, PediNail, PediLoc tibia, anterior cruciate ligament reconstruction systems, locking cannulated blades, locking proximal femurs, Spica Tables, RESPONSE Spine systems, Bandloc, Pediguard, Pediatric Nailing Platform, Femur system, Orthex, QuickPack, and ApiFix Mid-C system.


The company serves pediatric orthopedic market, as well as pediatric orthopedic surgeons and caregivers.OrthoPediatrics Corp.was founded in 2006 and is headquartered in Warsaw, Indiana.

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1.b. Last Insights on KIDS

OrthoPediatrics Corp.'s recent performance was negatively impacted by a quarterly loss of $0.11 per share, missing revenue estimates. The company's Q3 2025 preliminary results and revised 2025 guidance, announced on October 9, 2025, likely contributed to the negative sentiment. Additionally, the Q3 2025 sales call transcript revealed discussions on the company's financial results and updated outlook, potentially highlighting challenges. The 16% revenue growth in Q2 was overshadowed by the latest developments.

1.c. Company Highlights

2. OrthoPediatrics' Q3 2025 Earnings: A Strong Performance

OrthoPediatrics reported a robust financial performance in Q3 2025, with worldwide revenue increasing by 12% to $61.2 million compared to the same period last year. The company's gross profit margin also improved, reaching 74% compared to 73% in Q3 2024. The earnings per share (EPS) loss narrowed to -$0.24, beating estimates of -$0.26. Adjusted EBITDA was $6.2 million, a 56% improvement compared to $4.0 million in Q3 2024.

Publication Date: Nov -25

📋 Highlights
  • Revenue Growth: Q3 2025 revenue reached $61.2M, up 12% YoY, driven by T&D (+17%), Scoliosis, and OPSB growth.
  • Adjusted EBITDA Improvement: Increased to $6.2M in Q3 2025, a 56% rise from $4.0M in Q3 2024.
  • OPSB Expansion: OPSB growth exceeded 20%, with new clinics in NYC, California, and Ireland, and plans to scale profitably.
  • Gross Margin Stability: Maintained 74% margin in Q3 2025, reiterating full-year guidance of 72–73%.
  • Market Position Strengthening: T&D market share gains accelerated as competitors like J&J and Smith & Nephew exit pediatric ortho segments.

Segment Performance

The company's Trauma and Deformity (T&D) business grew by 17% in the quarter, driven by continued strong market share gains across several product lines. The Scoliosis business saw growth of 4%, led by strong U.S. Scoliosis implant and Scoliosis OPSB growth, offset by lower 7D capital sales. OPSB specialty bracing strategy continues to build momentum, with growth in excess of 20%. As David Bailey mentioned, "We have established ourselves as a market leader in T&D, and we are executing with confidence, especially as we see more competitors exiting the space by removing pediatric-specific product lines."

Valuation Metrics

With a current P/S Ratio of 1.99 and EV/EBITDA of -43.44, the market seems to be pricing in a certain level of growth for OrthoPediatrics. The company's ROE is -12.97%, and ROIC is -6.94%, indicating that the company is still in a growth phase and investing heavily. The current valuation multiples suggest that the market expects the company to achieve significant growth in the future.

Guidance and Outlook

OrthoPediatrics reiterated its guidance for full-year gross margin to be within the range of 72% to 73% and adjusted EBITDA to be between $15 million to $17 million. The company expects to generate approximately $15 million of new set deployments in 2025. With a strong performance in T&D and Scoliosis, and the momentum building in OPSB, the company is confident in its ability to achieve its growth targets.

Growth Prospects

The company's 3P platform is expected to drive growth, with analysts estimating next year's revenue growth at 12.5%. The 3P platform is designed to leverage similar drivers, screws, and items across multiple platforms, improving return on investment and asset utilization metrics. With a strong pipeline of new products, including the Nextgen spinal fusion system expected to launch in 2026, OrthoPediatrics is well-positioned to continue its growth trajectory.

3. NewsRoom

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Wall Street Analysts Think OrthoPediatrics (KIDS) Could Surge 26.45%: Read This Before Placing a Bet

Nov -26

Source: zacks.com

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OrthoPediatrics (NASDAQ:KIDS) vs. Precision Optics (NASDAQ:POCI) Financial Survey

Nov -21

Source: defenseworld.net

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OrthoPediatrics Corp. Expands Specialty Bracing Portfolio with Two New Product Launches

Nov -13

Source: globenewswire.com

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Wall Street Analysts Believe OrthoPediatrics (KIDS) Could Rally 41.92%: Here's is How to Trade

Nov -10

Source: zacks.com

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Draagbare loophulprobot "WIM KIDS" van WIRobotics wint CES 2026 innovatieprijs in digitale gezondheid

Nov -05

Source: prnewswire.com

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WIRobotics' Walking-Assist Wearable Robot "WIM KIDS" Wins CES 2026 Innovation Award in Digital Health

Nov -05

Source: prnewswire.com

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OrthoPediatrics to Participate in Upcoming Conferences

Nov -04

Source: globenewswire.com

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OrthoPediatrics Corp. (KIDS) Q3 2025 Earnings Call Transcript

Oct -29

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.42%)

6. Segments

Trauma and Deformity

Expected Growth: 8.4%

Strong demand for OrthoPediatrics' innovative trauma and deformity solutions, driven by increasing prevalence of musculoskeletal disorders, advancements in surgical techniques, and growing adoption of minimally invasive procedures, contributes to the 8.4% growth. Additionally, expanding product offerings, strategic partnerships, and geographic expansion into high-growth markets further fuel growth.

Scoliosis

Expected Growth: 8.5%

OrthoPediatrics Corp.'s Scoliosis segment growth of 8.5% is driven by increasing adoption of minimally invasive surgical procedures, rising prevalence of adolescent idiopathic scoliosis, and expanding market share through strategic partnerships and product innovation, particularly in the APAC region.

Sports Medicine/Other

Expected Growth: 8.2%

OrthoPediatrics Corp.'s Sports Medicine/Other segment growth of 8.2% is driven by increasing adoption of innovative orthopedic implants, rising sports-related injuries, and growing demand for minimally invasive procedures. Additionally, expansion into new markets, strategic partnerships, and investments in research and development are contributing to the segment's growth.

7. Detailed Products

RESPONSE Spine System

A comprehensive spinal deformity correction system designed for pediatric patients, offering a range of implant options and instrumentation for surgeons.

FLYTE Pediatric Bed System

A modular, adjustable bed system designed for pediatric patients, providing optimal support and comfort during hospital stays.

PediLoc Femur Fixation System

A pediatric-specific femur fracture fixation system, offering a range of implant options and instrumentation for surgeons.

ApiFix Mid-Column Spinal System

A minimally invasive, motion-preserving spinal system for pediatric patients, designed to treat a range of spinal deformities.

Orthex Trauma System

A comprehensive trauma system for pediatric patients, offering a range of implant options and instrumentation for surgeons.

8. OrthoPediatrics Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

OrthoPediatrics Corp. operates in a niche market with limited substitutes, but the company's products are not highly differentiated, making it moderately susceptible to substitutes.

Bargaining Power Of Customers

OrthoPediatrics Corp.'s customers are primarily hospitals and medical professionals, who have limited bargaining power due to the specialized nature of the company's products.

Bargaining Power Of Suppliers

OrthoPediatrics Corp. relies on a few key suppliers for raw materials and components, giving them some bargaining power, but the company's specialized products limit the suppliers' negotiating power.

Threat Of New Entrants

The orthopedic implant market has high barriers to entry, including regulatory hurdles and significant capital requirements, making it difficult for new entrants to compete with OrthoPediatrics Corp.

Intensity Of Rivalry

The orthopedic implant market is highly competitive, with several established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 5.93%
Debt Cost 3.95%
Equity Weight 94.07%
Equity Cost 9.74%
WACC 9.39%
Leverage 6.30%

11. Quality Control: OrthoPediatrics Corp. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
iCAD

A-Score: 4.7/10

Value: 7.0

Growth: 3.1

Quality: 4.5

Yield: 0.0

Momentum: 10.0

Volatility: 3.7

1-Year Total Return ->

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TriSalus Life Sciences

A-Score: 4.4/10

Value: 8.4

Growth: 4.2

Quality: 6.0

Yield: 0.0

Momentum: 6.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
OrthoPediatrics

A-Score: 3.8/10

Value: 8.4

Growth: 4.0

Quality: 5.2

Yield: 0.0

Momentum: 1.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Varex Imaging

A-Score: 3.6/10

Value: 8.1

Growth: 1.3

Quality: 2.8

Yield: 0.0

Momentum: 6.5

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Anika Therapeutics

A-Score: 2.8/10

Value: 8.8

Growth: 1.3

Quality: 3.4

Yield: 0.0

Momentum: 0.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Iridex

A-Score: 2.6/10

Value: 8.4

Growth: 1.8

Quality: 3.6

Yield: 0.0

Momentum: 0.5

Volatility: 1.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

18.32$

Current Price

18.32$

Potential

-0.00%

Expected Cash-Flows