OrthoPediatrics partner iotaMotion receives FDA clearance for use of its iotaSOFT® cochlear implant insertion system in patients four years and olderWARSAW, Ind., Feb. 03, 2026 (GLOBE NEWSWIRE) -- OrthoPediatrics Corp. (“OrthoPediatrics” or the “Company”) (Nasdaq: KIDS), a company focused exclusively on advancing the field of pediatric orthopedics, today announced its partner, iotaMotion, has received FDA 510(k) clearance for expanded pediatric use of its iotaSOFT® Insertion System. The system is now cleare ...

Core Viewpoint - OrthoPediatrics (KIDS) experienced a significant stock price increase of 9.8% to close at $20.11, driven by strong trading volume and positive investor sentiment following the announcement of preliminary financial highlights for 2025 [1][2]. Financial Performance - The company reported record preliminary unaudited net revenue of $236.1 million for the full year 2025, reflecting a year-over-year growth of 15% [2]. - For the upcoming quarterly report, OrthoPediatrics is expected to report a loss of $0.29 per share, which is consistent with the same quarter from the previous year. Revenue is anticipated to be $59.21 million, marking a 12.4% increase from the year-ago quarter [3]. Earnings Estimates and Stock Movement - The consensus EPS estimate for the upcoming quarter has remained unchanged over the last 30 days, indicating a lack of upward revisions in earnings estimates, which typically correlates with stock price movements [4]. - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook, while OPKO Health, another company in the same industry, has a Zacks Rank of 2 (Buy) [4][5]. Industry Context - OrthoPediatrics operates within the Zacks Medical - Instruments industry, which includes other companies like OPKO Health, which has seen a decline of 1.5% over the past month [4].

Financial Performance - OrthoPediatrics Corp. announced preliminary unaudited net revenue for Q4 2025 and full year 2025, with specific figures to be confirmed post-audit[4] - The company provided management's projection for 2026 net revenue, indicating potential growth opportunities[4] - Free cash flow estimates for Q4 2025 and full year 2025 were also disclosed, subject to final audit results[6] - The company cautioned that actual results may differ materially from preliminary estimates due to various risks and uncertainties[6] - The financial information provided is preliminary and should not be relied upon without considering the associated risks[6] Compliance and Reporting - The press release is part of the company's ongoing compliance with SEC regulations, ensuring transparency in financial reporting[5] - The company has no obligation to publicly release updates on forward-looking statements unless required by law[6] Company Information - OrthoPediatrics Corp. is listed on the Nasdaq Global Market under the trading symbol "KIDS"[2] - The company is classified as an emerging growth company, which may affect its financial reporting standards[3] - The report was signed by Daniel J. Gerritzen, General Counsel and Secretary, on January 12, 2026[10]

Core Insights - OrthoPediatrics Corp. achieved an all-time high revenue of $236.1 million for the full year 2025, reflecting a growth of 15% compared to the previous year [1][6] - The company initiated guidance for record Adjusted EBITDA in 2026, projecting revenue between $262 million and $266 million, which represents an 11% to 13% growth compared to 2025 [3][4] Recent Business and Financial Highlights - In 2025, OrthoPediatrics helped over 37,500 children in the fourth quarter alone, totaling nearly 1.3 million since inception [4][6] - The preliminary unaudited net revenue for the fourth quarter of 2025 was $61.3 million, marking a 16% increase from $52.7 million in Q4 2024 [6] - Domestic net revenue for 2025 is expected to be $186.2 million, indicating a 16% annual growth, while international net revenue is projected at $49.9 million, reflecting a 15% annual growth [6] - The company generated approximately $6.0 to $7.0 million in free cash flow for Q4 2025, resulting in total free cash flow usage for the year being over 50% lower than in 2024 [6] Strategic Initiatives - The Trauma and Deformity and Scoliosis implant businesses have effectively executed strategies to gain market share, drive revenue, and improve profitability [4] - The specialty bracing (OPSB) business is identified as a significant market opportunity and a strategic catalyst for enhancing customer relationships, proving to be a capital-efficient driver of revenue and earnings [4]

Summary of OrthoPediatrics FY Conference Call (December 04, 2025) Company Overview - **Company**: OrthoPediatrics (NasdaqGM: KIDS) - **Industry**: Pediatric orthopedic medical devices Key Points and Arguments Q3 Performance and Guidance Adjustments - Despite a decrease in guidance, the company reported a strong Q3 performance, with challenges primarily in capital sales and Latin America [4][5][6] - The 7D capital product, a navigation platform for spine surgery, had no completed orders in Q3, leading to a significant revenue impact of several million dollars [4][5] - The company has decided to remove 7D revenue from future guidance to provide clearer expectations for investors [6][10] Revenue Growth Components - The company anticipates a baseline growth rate of around 12%, focusing on predictable and high-margin components of the business, including T&D implants and OPSB [32][34] - The scoliosis implant business is expected to remain flat, while international agency sales, particularly in Europe and Australia, are showing strong growth [34] New Product Development - OrthoPediatrics is at the beginning of a new product launch cycle, with significant investments in novel product development expected to impact growth from 2026 onwards [37][38] - Key products include the PNP tibia and femur, which are rapidly growing, and the 3P system, which has received positive feedback and is expected to become a workhorse for the company's hip systems [40][47] Market Opportunities - The plating market is large, with estimates suggesting a collective opportunity exceeding $50 million [48] - The early onset scoliosis (EOS) market in the U.S. is estimated to be over $50 million, with significant potential for growth due to limited competition [88][91] Financial Outlook - The company expects a substantial increase in EBITDA in 2026, with projections indicating a growth rate of around 65% [105][108] - The restructuring efforts and a focus on profitability are expected to positively impact cash flow and operational efficiency [109] Strategic Focus - OrthoPediatrics aims to expand its clinic presence, aspiring to have clinics in every children's hospital in the U.S. and select international markets [104] - The company is focused on generating free cash flow and has limited set deployment to manage cash conversion cycles effectively [58][62] Challenges and Risks - There are theoretical risks associated with not achieving 7D sales, which could impact the spine business, but the company does not anticipate significant negative effects on its implant business [17][29] - The company is cautious about capital deployment for new product launches, ensuring that cash usage aligns with growth strategies [64][68] Additional Important Insights - The company is leveraging advanced technologies in its products, such as RF technology in the LE device, which enhances surgical precision and reduces complications [76][78] - OrthoPediatrics is differentiating itself by focusing on complex surgeries for pediatric patients, which are often overlooked by competitors [71][72] This summary encapsulates the critical insights from the OrthoPediatrics FY Conference Call, highlighting the company's performance, strategic direction, and market opportunities.

Core Viewpoint - OrthoPediatrics (KIDS) shares have increased by 12.9% in the past four weeks, closing at $19.09, with a potential upside of 26.5% based on Wall Street analysts' mean price target of $24.14 [1] Price Targets and Analyst Estimates - The mean estimate consists of seven short-term price targets with a standard deviation of $5.01, indicating variability among analysts [2] - The lowest estimate is $19.00, suggesting a slight decline of 0.5%, while the highest estimate is $34.00, indicating a potential surge of 78.1% [2] - Analysts' price targets can often mislead investors, as empirical research shows they rarely indicate actual stock price movements [7] Earnings Estimates and Analyst Agreement - Strong agreement among analysts regarding KIDS' ability to report better earnings than previously predicted supports the potential upside [4] - A positive trend in earnings estimate revisions has been shown to correlate with stock price movements, enhancing the outlook for KIDS [11] - Over the last 30 days, one earnings estimate has increased, leading to a 4.3% rise in the Zacks Consensus Estimate for the current year [12] Zacks Rank and Investment Potential - KIDS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors [13] - While consensus price targets may not be reliable for predicting gains, they can provide a directional guide for potential price movements [14]

Summary of OrthoPediatrics Conference Call Company Overview - **Company Name**: OrthoPediatrics (NasdaqGM: KIDS) - **Industry**: Pediatric Orthopedics - **Focus**: Solely dedicated to pediatric orthopedic solutions, with no involvement in adult orthopedic products [2][3] Key Points and Arguments - **Market Impact**: OrthoPediatrics has helped a cumulative total of 1.3 million children, with a goal to assist over 150,000 children in 2025 and an objective to reach 1 million annually in the future [2][3] - **Unique Product Development**: The company has developed products specifically designed for pediatric patients, addressing unique clinical conditions such as curved bones, which differ significantly from adults [2][3] - **Market Size**: The global pediatric orthopedic market is estimated to be around $6 billion, with significant segments including trauma and deformity, scoliosis, specialty bracing, and enabling technology [5] - **Sales Strategy**: OrthoPediatrics focuses exclusively on children's hospitals in the U.S., which number approximately 300-400, avoiding adult hospitals entirely [5][6] - **Sales Force**: The company employs over 230 sales agents in the U.S. and sells products in over 75 countries, supported by an additional 200 individuals servicing those hospitals [4][5] Product Portfolio and Innovations - **Product Range**: The company has expanded its product offerings from 17 at the time of its IPO in 2017 to over 80 systems currently available [14][22] - **Recent Acquisitions**: Notable acquisitions include Firefly (navigation system for scoliosis), Appifix (internal brace for scoliosis), and Boston O&P (specialty braces and clinics) [9][10][18] - **New Technologies**: Introduction of innovative products such as the VertiGlide system for severe early-onset scoliosis and the DF2 Brace for hip dysplasia, which replaces traditional spica casts [16][17] Financial Performance - **Revenue Growth**: The company has consistently achieved over 20% annual growth, with a projected growth rate of 14% for 2025 [19][21] - **EBITDA Guidance**: For 2025, the company expects adjusted EBITDA between $15 million and $17 million, a significant increase from $8.5 million the previous year [21][22] - **Cash Flow Management**: OrthoPediatrics aims to achieve positive free cash flow in Q4 2025 and break-even in 2026, having reduced cash usage significantly from $40 million two years ago to an expected $20 million this year [23][24] Strategic Focus - **Clinical Education Commitment**: The company emphasizes the importance of clinical education, hosting over 300 training sessions annually for surgeons and clinicians [4][13] - **Market Expansion**: Plans to continue expanding both product offerings and clinic presence, with a focus on specialty bracing, which is projected to grow over 20% annually for the next three to five years [19][18] Conclusion - OrthoPediatrics is positioned as a leader in the pediatric orthopedic market, with a strong commitment to innovation, clinical education, and strategic growth through acquisitions and product development [22][24]

Summary of OrthoPediatrics Conference Call Company Overview - **Company**: OrthoPediatrics (NasdaqGM: KIDS) - **Focus**: Pediatric orthopedics, specifically in trauma deformity and OPSB (Orthotic and Prosthetic Services Business) - **Sales Contribution**: Trauma Deformity and OPSB account for approximately 75% of company sales [1][1] Key Financial Performance - **Q3 Performance**: Trauma Deformity sales increased by 17%, and OPSB sales rose over 20% [1][1] - **Sales Guidance**: The company lowered its full-year sales guidance due to temporary issues, not related to competition or market opportunity [20][20] - **Growth Rate**: The company aims for a baseline growth rate of 12%, with potential for higher growth in certain quarters [29][29] Product Innovation and Strategy - **New Product Launches**: Recent launches include PD HIP products aimed at addressing developmental dysplasia of the hip (DDH) [8][8] - **R&D Pipeline**: Plans to launch four new products next year, with an increasing number in subsequent years [9][9] - **Market Expansion**: The company is expanding its clinic presence, having already surpassed its goal of four new markets for 2025, reaching seven [13][13] Market Dynamics - **Total Addressable Market (TAM)**: The company identifies 80 target markets in the US, with plans to penetrate 27 of those [19][19] - **Competitive Landscape**: Disruption in larger orthopedic companies may provide opportunities for OrthoPediatrics to gain market share and attract talent [46][46] Challenges and Risks - **Sales Miss**: The company experienced a sales miss due to unpredictable capital sales, particularly with a navigation platform for pediatric spine surgery [21][21][22][22] - **Latin America Operations**: The company has pulled set sales from Brazil out of guidance due to complex market dynamics and cash flow concerns [42][42] Future Outlook - **Profitability Goals**: The company maintains confidence in achieving its 25% margin and profitability targets despite recent disruptions [63][63] - **Long-term Vision**: OrthoPediatrics aims to evolve into a broader pediatric healthcare company, exploring opportunities in other subspecialties beyond orthopedics [66][66][68][68] Additional Insights - **Procedure Trends**: Stable pediatric procedure volumes are expected to continue into Q4 and beyond [44][44] - **Innovation Cycle**: The company is in the early stages of a significant R&D cycle, with multiple product launches anticipated in the coming years [60][60] This summary encapsulates the key points discussed during the OrthoPediatrics conference call, highlighting the company's performance, strategic initiatives, market dynamics, and future outlook.

Core Insights - OrthoPediatrics Corp. has expanded its OrthoPediatrics Specialty Bracing (OPSB) portfolio with the launch of two new products: the PediHip™ Rigid Brace and PediHip™ Modular Abduction Systems, bringing the total to 31 systems within the OPSB division [1][3] Product Development - The new PediHip™ products are designed for treating Developmental Dysplasia of the Hip (DDH) and for post-operative stabilization in pediatric patients aged three years and younger, enhancing treatment options for this condition [2] - The company emphasizes its commitment to organic new product development and collaboration with pediatric hip experts to advance care for children [3] Market Position - Founded in 2006, OrthoPediatrics focuses exclusively on pediatric orthopedics, offering over 85 products across three major categories: trauma and deformity, scoliosis, and sports medicine/other procedures [4] - The company distributes its products in the United States and over 70 countries, highlighting its global reach in the pediatric orthopedic market [4]

Core Viewpoint - OrthoPediatrics (KIDS) shows potential for significant upside, with a mean price target of $24.14 indicating a 41.9% increase from the current price of $17.01, supported by positive earnings estimate revisions [1][11]. Price Targets and Analyst Estimates - The mean price target consists of seven short-term estimates with a standard deviation of $5.01, suggesting variability among analysts; the lowest estimate is $19.00 (11.7% increase), while the highest is $34.00 (99.9% increase) [2][9]. - Analysts have shown increasing optimism regarding KIDS' earnings prospects, as indicated by a 4.3% increase in the Zacks Consensus Estimate over the past month, with no negative revisions [12][11]. Analyst Behavior and Price Target Reliability - There is skepticism regarding the reliability of analysts' price targets, as they may set overly optimistic targets due to business incentives, which can mislead investors [7][8]. - A low standard deviation in price targets indicates a high degree of agreement among analysts about the stock's price movement direction, which can serve as a starting point for further research [9][10]. Investment Ranking and Conclusion - KIDS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, suggesting a strong potential for upside in the near term [13]. - While the consensus price target may not be a reliable indicator of the extent of potential gains, it does imply a positive direction for price movement [14].