Start here if you're new
what it is
It makes implants and braces that help children with bone and spine problems move better and heal better.
how it gets paid
Last year Orthopediatrics made $236M in revenue.
why it's growing
Revenue grew 15.4% last year. Revenue was up 185% vs. prior year, and gross margin held at 73.0%.
what just happened
The latest quarter brought $175M of revenue, but EPS still sat at -$1.26.
At a glance
B balance sheet — gets the job done, barely
40/100 earnings predictability — expect surprises
-$1.45 fy2024 eps est
$2B fy2026 rev est
16.6% operating margin
xvary composite: 46/100 — below average
What they do
It makes implants and braces that help children with bone and spine problems move better and heal better.
Doctors do not swap these parts for adult hardware. The company sells in the US and 45 countries, and it now has 31 systems in specialty bracing. If your surgeon has trained on its tools, leaving means relearning the whole setup.
How they make money
$236M
annual revenue · their business grew +15.4% last year
total revenue
$236M
+15.4%
The products that matter
fracture and deformity implants
Pediatric Trauma Systems
~$118M · about 50% of revenue
This is the center of gravity. Roughly half of the $236.1M business sits here, which means you are buying a company whose core products solve a very specific surgical problem: children are not just smaller adults in the operating room.
core revenue driver
spinal deformity devices
Scoliosis Systems
~$71M · about 30% of revenue
This is the growth support beam. At roughly $71M, it is big enough to matter and small enough that a slowdown would show up fast in the $262M–$266M 2026 guide.
scale watch
adjacent pediatric offerings
Other Products
~$47M · about 20% of revenue
This bucket is not the headline, but small-cap device companies do not get many spare revenue streams. Roughly $47M of additional sales helps absorb fixed costs. If it stalls, the path to breakeven gets narrower.
overhead absorber
Key numbers
$236M
annual revenue
That is the size of the whole business before you even argue about profit.
73.0%
gross margin
You can sell a lot of hardware at 73 cents of gross profit per dollar before overhead still wrecks the story.
16.6%
operating margin
This is the punchline: the company still loses 16.6 cents on every sales dollar after overhead.
$99M
long-term debt
That debt equals 19% of capital, so the balance sheet still matters.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 4 — safer than 20% of stocks
- price stability 25 / 100
- long-term debt $99M (19% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for KIDS right now.
source: institutional data · return history unavailable
What just happened
missed estimates
The latest quarter brought $175M of revenue, but EPS still sat at -$1.26.
Revenue was up 185% vs. prior year, and gross margin held at 73.0%. The problem is the company is still losing money while it grows.
$175M
revenue
$1.26
eps
73.0%
gross margin
gross margin
73.0% gross margin is the key number. The products are healthy; the cost structure is not.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
this company already proved demand. It has not proved conversion. For KIDS, the real risk is simple: record sales keep showing up before durable profits do.
high
2026 breakeven slips
Management is pointing to cash flow breakeven in 2026. If that date moves again, you are no longer debating timing. You are debating whether this cost structure ever scales the way investors were promised.
Management is pointing to cash flow breakeven in 2026. If that date moves again, you are no longer debating timing. You are debating whether this cost structure ever scales the way investors were promised.
med
margin gives up even one point
Gross margin eased from 74% to 73%. That sounds tiny. On a $262M revenue base, one point is about $2.6M of gross profit. Small percentages get loud when the company is still trying to cross into cash generation.
Gross margin eased from 74% to 73%. That sounds tiny. On a $262M revenue base, one point is about $2.6M of gross profit. Small percentages get loud when the company is still trying to cross into cash generation.
med
guide miss
The 2026 guide calls for $262M–$266M, or 11–13% growth. If revenue lands below that range, the market stops treating this as a scaling story and starts treating it as a perpetual almost-there story.
The 2026 guide calls for $262M–$266M, or 11–13% growth. If revenue lands below that range, the market stops treating this as a scaling story and starts treating it as a perpetual almost-there story.
med
small specialist, larger rivals
The niche is real, but KIDS is still a $236.1M revenue company with a $438M market cap. Smaller companies get less room for execution mistakes when larger orthopedic players can spend more and wait longer.
The niche is real, but KIDS is still a $236.1M revenue company with a $438M market cap. Smaller companies get less room for execution mistakes when larger orthopedic players can spend more and wait longer.
what would change our mind: revenue below $262M, gross margin below 73%, or breakeven pushed past 2026. That is the kill criteria. If one breaks, the thesis gets weaker in public, not just in your notes.
source: institutional data · regulatory filings · risk analysis
Pay attention to
2026 deadline
cash flow breakeven
Management put a clock on the story. If 2026 comes and goes without breakeven, you should treat that as a thesis break, not a scheduling issue.
quarterly
gross margin holding near 73%
This is the number protecting the whole setup. If gross margin falls, the company needs even more scale just to stand still.
quarterly
revenue versus the $262M–$266M guide
Double-digit growth keeps the story alive. Single-digit growth tells you the path from $236.1M to breakeven is getting longer, not shorter.
full year
losses narrowing from -$1.45 per share
You do not need instant profits. You do need proof that the losses are shrinking in a way that matches management's timeline.
Analyst rankings
earnings predictability
40 / 100
in human-speak, analysts do not expect smooth quarters here. You should expect some noise, and management needs enough progress to keep that noise from turning into distrust.
beta
1.2
Beta measures how much a stock tends to move versus the market. At 1.2, KIDS has usually moved a little more than the index. Not chaos, but not a bunker either.
price stability
25 / 100
This is a volatile stock. Good products do not cancel out small-cap swings, especially when profits are still missing.
source: institutional data
Institutional activity
institutional ownership data for KIDS is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$18
current price
n/a
target midpoint · n/a from current
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive