📊 KIDS Key Takeaways
Is KIDS a Good Investment? Thesis Analysis
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.
Why Buy 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)
KIDS Investment Risks to Consider
- 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
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
KIDS Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 5.55x current ratio provides a solid financial cushion.
KIDS Profitability Ratios
KIDS vs Healthcare Sector
How ORTHOPEDIATRICS CORP compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is KIDS Overvalued or Undervalued?
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.
KIDS Balance Sheet & Liquidity
KIDS 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
KIDS Quarterly 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.
KIDS Capital Allocation
KIDS SEC 10-K & 10-Q Filing 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 an AI rating of SELL with 68% 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.
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.
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 68% 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).