OrthoPediatrics has beaten earnings in all of the last 4 quarters and shows a technical breakout on a golden cross, but quality sits below the engine's floor due to cash burn and a failed Rule of 40 test, and the asymmetry gate failed, keeping position sizing at avoid.
Thesis pillars
- Quality Below Floor↓Deteriorating
- Perfect Earnings Beat Streak↑Improving
- Technical Breakout Setup→Stable
- +2 more pillars — see the Why tab for full reasoning
OrthoPediatrics Corp. (KIDS) Stock Analysis
Catalyst-Driven edge
Healthcare · Medical Devices
Sell if holding. Engine safety override at $18.87: Quality below floor (3.4 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.5/10. Specifically: Below-average business quality; Negative price momentum.
OrthoPediatrics designs, develops and markets orthopedic implants, instruments and specialized braces built specifically for children, selling to hospitals across the United States and more than 75 international markets through independent sales agencies, distributors and direct... Read more
Sell if holding. Engine safety override at $18.87: Quality below floor (3.4 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.5/10. Specifically: Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.5/10, moderate confidence.
Passes 5/8 gates (clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.
About OrthoPediatrics Corp.
About OrthoPediatrics Corp.
OrthoPediatrics generated $236.3 million in revenue for fiscal 2025, up from $204.7 million in 2024 and $148.7 million in 2023, marketing 87 surgical implant and bracing systems across trauma and deformity correction, scoliosis, and sports medicine — the three largest categories of the pediatric orthopedic market. The company sells to hospitals in the United States and more than 75 international countries, targeting a segment it estimates represents a $6.2 billion global opportunity, including $2.8 billion domestically.
The company sells through a hybrid channel of direct sales representatives, more than 30 independent U.S. sales agencies and over 80 international stocking distributors; sales agencies alone generated 56% of global revenue in fiscal 2025, down slightly from 59% in 2024. Implants and surgical instrumentation are produced under a contract manufacturing model, while orthotic and prosthetic bracing products are manufactured in-house, including through the 2024-acquired Boston Brace International subsidiary, which has continued acquiring O&P clinics in states including Virginia, Maryland, Florida, Colorado, North Carolina and New York through 2025. OrthoPediatrics also licenses third-party technology, including an extended distribution agreement for FIREFLY Technology running through 2030 and a 7D Surgical FLASH Navigation license extended through 2028, supplementing organic product development with in-licensed surgical navigation tools.
Show full overview
OrthoPediatrics' products remain subject to Humanitarian Device Exemption requirements and Institutional Review Board oversight, a regulatory pathway built for devices treating small patient populations — a fitting description for a market where the Pediatric Orthopaedic Society of North America counted roughly 1,500 members in 2025 versus approximately 33,400 U.S. surgeons focused on adults. The 10-K also flags dependency on its distribution network: the company's independent sales agencies and distributors, rather than direct hires, generated the majority of revenue, and losing that network could impair its ability to reach hospitals.
See also: Healthcare · Medical Devices
From OrthoPediatrics Corp.'s most recent 10-K filing, extracted July 6, 2026.
Recent developments
updated 2026-07-25Recent Developments — OrthoPediatrics Corp.
Latest news
- NEWS Truist Securities Maintains Hold on OrthoPediatrics, Raises Price Target to $20 — benzinga Jul 16, 2026 positive
Generated 2026-07-25T14:18:05Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Unprofitable operations — net margin -16.3%. Quality floor flags this regardless of sector context.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $18.87: Quality below floor (3.4 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.5/10. Specifically: Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $17.56. Score 5.5/10, moderate confidence.
Take-profit target: $21.75 (+15.3% upside). Prior stop was $17.56. Stop-loss: $17.56.
Quality below floor (3.4 < 4.0).
OrthoPediatrics Corp. trades at a P/E of N/A (forward -27.8). TrendMatrix value score: 8.1/10. Verdict: Sell.
15 analysts cover KIDS with a consensus score of 4.1/5. Average price target: $25.
What does OrthoPediatrics Corp. do?OrthoPediatrics designs, develops and markets orthopedic implants, instruments and specialized braces built...
OrthoPediatrics designs, develops and markets orthopedic implants, instruments and specialized braces built specifically for children, selling to hospitals across the United States and more than 75 international markets through independent sales agencies, distributors and direct sales representatives. The company generated $236.3 million in revenue for fiscal 2025, up from $204.7 million in 2024, using contract manufacturers for implants and in-house production for its orthotic and prosthetic bracing lines.