📊 KIDS Key Takeaways
Is Orthopediatrics Corp. (KIDS) a Good Investment?
OrthoPediatrics demonstrates strong revenue growth (+15.4% YoY) and exceptional gross margins (73.1%), indicating a fundamentally sound business model in pediatric orthopedic devices. However, the company is burning cash with negative operating income (-$39.2M), negative free cash flow (-$16.0M), and dangerously low cash reserves ($19.6M) relative to annual cash burn—creating an unsustainable trajectory without near-term profitability or capital infusion.
Orthopediatrics shows healthy double-digit revenue growth and robust gross margins, supported by strong liquidity and moderate leverage. Yet, continued operating and net losses with negative free cash flow and weak interest coverage suggest operating scale has not been reached and cash burn persists. Maintain a neutral view until operating leverage and cash generation clearly inflect.
Why Buy Orthopediatrics Corp. Stock? KIDS Key Strengths
- Strong revenue growth of 15.4% YoY demonstrates market traction and demand
- Exceptional gross margin of 73.1% indicates strong pricing power and efficient manufacturing
- Solid balance sheet with moderate leverage (0.31x Debt/Equity) and strong liquidity ratios (5.55x current ratio)
- Double-digit revenue growth (+15.4% YoY)
- High gross margin (73.1%) indicating strong product economics
- Solid liquidity (current 5.55x, quick 2.65x) and modest leverage (D/E 0.31x)
KIDS Stock Risks: Orthopediatrics Corp. Investment Risks
- Negative operating cash flow and free cash flow of -$16.0M indicate the company is burning cash unsustainably
- Severe operational losses (-$39.6M net income) despite strong revenue suggest structural SG&A or R&D inefficiency
- Critical liquidity concern: $19.6M cash reserve with annual cash burn of ~$16M provides only ~15 months of runway
- Persistent operating and net losses (operating margin -16.6%, net margin -16.8%)
- Negative free cash flow with limited cash versus burn
- Weak interest coverage and potential need for external financing/dilution
Key Metrics to Watch
- Path to operating profitability and timeline for positive operating income
- Free cash flow trend and cash runway remaining before potential capital raise
- Operating expense ratio as percentage of revenue and management's cost control initiatives
- Operating margin (path to breakeven/expansion)
- Free cash flow and operating cash flow margin
Orthopediatrics Corp. (KIDS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 5.55x current ratio provides a solid financial cushion.
KIDS Profit Margin, ROE & Profitability Analysis
KIDS vs Healthcare Sector: How Orthopediatrics Corp. Compares
How Orthopediatrics Corp. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Orthopediatrics Corp. Stock Overvalued? KIDS Valuation Analysis 2026
Based on fundamental analysis, Orthopediatrics Corp. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Orthopediatrics Corp. Balance Sheet: KIDS Debt, Cash & Liquidity
KIDS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Orthopediatrics Corp.'s revenue has grown significantly by 141% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.92 indicates the company is currently unprofitable.
KIDS Revenue Growth, EPS Growth & YoY Performance
KIDS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $54.6M | -$6.0M | $-0.34 |
| Q2 2025 | $52.8M | -$6.0M | $-0.26 |
| Q1 2025 | $44.7M | -$7.8M | $-0.34 |
| Q3 2024 | $40.0M | -$2.9M | $-0.20 |
| Q2 2024 | $39.6M | -$2.9M | $-0.13 |
| Q1 2024 | $31.6M | -$6.8M | $-0.30 |
| Q3 2023 | $35.0M | -$333.0K | $-0.20 |
| Q2 2023 | $32.9M | -$333.0K | $-0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Orthopediatrics Corp. Dividends, Buybacks & Capital Allocation
KIDS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Orthopediatrics Corp. (CIK: 0001425450)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KIDS
What is the AI rating for KIDS?
Orthopediatrics Corp. (KIDS) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KIDS's key strengths?
Claude: Strong revenue growth of 15.4% YoY demonstrates market traction and demand. Exceptional gross margin of 73.1% indicates strong pricing power and efficient manufacturing. ChatGPT: Double-digit revenue growth (+15.4% YoY). High gross margin (73.1%) indicating strong product economics.
What are the risks of investing in KIDS?
Claude: Negative operating cash flow and free cash flow of -$16.0M indicate the company is burning cash unsustainably. Severe operational losses (-$39.6M net income) despite strong revenue suggest structural SG&A or R&D inefficiency. ChatGPT: Persistent operating and net losses (operating margin -16.6%, net margin -16.8%). Negative free cash flow with limited cash versus burn.
What is KIDS's revenue and growth?
Orthopediatrics Corp. reported revenue of $236.3M.
Does KIDS pay dividends?
Orthopediatrics Corp. does not currently pay dividends.
Where can I find KIDS SEC filings?
Official SEC filings for Orthopediatrics Corp. (CIK: 0001425450) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KIDS's EPS?
Orthopediatrics Corp. has a diluted EPS of $-1.69.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is KIDS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Orthopediatrics Corp. has a SELL rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is KIDS stock overvalued or undervalued?
Valuation metrics for KIDS: ROE of -11.4% (sector avg: 15%), net margin of -16.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy KIDS stock in 2026?
Our dual AI analysis gives Orthopediatrics Corp. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KIDS's free cash flow?
Orthopediatrics Corp.'s operating cash flow is $-4.9M, with capital expenditures of $11.1M. FCF margin is -6.8%.
How does KIDS compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -16.8% (avg: 12%), ROE -11.4% (avg: 15%), current ratio 5.55 (avg: 2).