Revenue growth has decelerated from 40% in 2024Q4 to 13.3% in 2026Q1, while persistent SG&A expenses continue to drive negative operating margins of -14.0%.
| Sales/Revenue | 243.3M | 236.35M | 204.73M | 148.73M | 122.29M | 98.05M | 71.08M | 72.55M | 57.56M | 45.62M | 37.3M | 31M | 23.68M |
| Revenue Growth % | 14.52% | 15.45% | 37.65% | 21.62% | 24.72% | 37.95% | -2.03% | 26.05% | 26.17% | 22.31% | 20.3% | 30.91% | - |
| Cost of Goods Sold | 65.51M | 63.69M | 56.13M | 37.48M | 31.63M | 24.65M | 16.05M | 17.93M | 14.88M | 11.17M | 10.93M | 9.37M | 7.08M |
| COGS % of Revenue | - | 26.95% | 27.42% | 25.2% | 25.86% | 25.14% | 22.58% | 24.72% | 25.85% | 24.48% | 29.31% | 30.21% | 29.91% |
| Gross Profit | 177.79M | 172.66M | 148.6M | 111.25M | 90.66M | 73.4M | 55.03M | 54.62M | 42.68M | 34.45M | 26.37M | 21.64M | 16.6M |
| Gross Margin % | 73.07% | 73.05% | 72.58% | 74.8% | 74.14% | 74.86% | 77.42% | 75.28% | 74.15% | 75.52% | 70.69% | 69.79% | 70.09% |
| Gross Profit Growth % | - | 16.19% | 33.57% | 22.71% | 23.51% | 33.38% | 0.75% | 27.97% | 23.89% | 30.66% | 21.86% | 30.35% | - |
| Operating Expenses | 207.15M | 201.66M | 178.12M | 138M | 116.06M | 91.43M | 81.79M | 63.7M | 52.23M | 40.92M | 32.49M | 28.23M | 23.74M |
| OpEx % of Revenue | - | 85.32% | 87% | 92.79% | 94.91% | 93.25% | 115.07% | 87.79% | 90.75% | 89.7% | 87.12% | 91.05% | 100.25% |
| Selling, General & Admin | 195.2M | 192.56M | 167.09M | 126.12M | 104M | 85.73M | 70.17M | 57.95M | 47.5M | 37.5M | 30.27M | 26.44M | 22.06M |
| SG&A % of Revenue | - | 81.47% | 81.61% | 84.8% | 85.04% | 87.44% | 98.72% | 79.87% | 82.53% | 82.2% | 81.16% | 85.28% | 93.14% |
| Research & Development | 8.98M | 9.1M | 11.03M | 10.89M | 8.45M | 5.54M | 5.27M | 5.75M | 4.73M | 3.42M | 2.22M | 1.79M | 1.68M |
| R&D % of Revenue | - | 3.85% | 5.39% | 7.33% | 6.91% | 5.65% | 7.42% | 7.92% | 8.22% | 7.5% | 5.96% | 5.77% | 7.11% |
| Other Operating Expenses | 1000K | 0 | 0 | 985K | 3.61M | 150K | 6.34M | 0 | -217K | 30K | 0 | -31K | -67K |
| Operating Income | -29.36M | -29M | -29.52M | -26.75M | -25.4M | -18.02M | -26.75M | -9.08M | -9.55M | -6.47M | -6.13M | -6.59M | -7.14M |
| Operating Margin % | -12.07% | -12.27% | -14.42% | -17.99% | -20.77% | -18.38% | -37.64% | -12.51% | -16.6% | -14.19% | -16.43% | -21.26% | -30.16% |
| Operating Income Growth % | - | 1.77% | -10.35% | -5.32% | -40.92% | 32.63% | -194.76% | 4.98% | -47.61% | -5.63% | 7.05% | 7.73% | - |
| EBITDA | -13.29M | -7.75M | -10.44M | -9.37M | -12.3M | -7.34M | -18.75M | -4.44M | -6.66M | -4.07M | -4.22M | -4.74M | -5.57M |
| EBITDA Margin % | -5.46% | -3.28% | -5.1% | -6.3% | -10.06% | -7.49% | -26.37% | -6.12% | -11.57% | -8.91% | -11.33% | -15.28% | -23.51% |
| EBITDA Growth % | 22.57% | 25.76% | -11.48% | 23.85% | -67.48% | 60.82% | -322.09% | 33.33% | -63.78% | 3.74% | 10.83% | 14.89% | - |
| D&A (Non-Cash Add-back) | 16.07M | 21.25M | 19.08M | 17.39M | 13.1M | 10.68M | 8.01M | 4.64M | 2.89M | 2.4M | 1.9M | 1.85M | 1.58M |
| EBIT | -28M | -29.13M | -29.52M | -25.77M | -21.79M | -17.87M | -30.25M | -9.15M | -9.77M | -6.44M | -5.1M | -6.62M | -7.21M |
| Net Interest Income | -5.04M | -6M | -2.62M | 198K | -2.42M | -2.25M | -3.41M | -3.54M | -2.25M | -2.49M | -1.48M | -1.23M | -2.55M |
| Interest Income | 0 | 0 | 0 | 198K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 5.04M | 6M | 2.62M | 0 | 2.42M | 2.25M | 3.41M | 3.54M | 2.25M | 2.49M | 1.48M | 1.23M | 2.55M |
| Other Income/Expense | -10.22M | -10.19M | -12.41M | 5.44M | 21.71M | 636K | -6.91M | -3.61M | -2.47M | -2.46M | -445K | -1.26M | -2.62M |
| Pretax Income | -39.58M | -39.19M | -41.93M | -21.31M | -3.69M | -17.39M | -33.67M | -12.69M | -12.03M | -8.93M | -6.57M | -7.85M | -9.76M |
| Pretax Margin % | -16.27% | -16.58% | -20.48% | -14.33% | -3.02% | -17.73% | -47.37% | -17.48% | -20.89% | -19.58% | -17.62% | -25.33% | -41.21% |
| Income Tax | 93K | 460K | -4.11M | -338K | -4.95M | -1.13M | -723K | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | -0.23% | -1.17% | 9.8% | 1.59% | 134.1% | 6.49% | 2.15% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -39.68M | -39.65M | -37.82M | -20.97M | 1.26M | -16.26M | -32.94M | -13.73M | -12.03M | -8.93M | -6.57M | -7.89M | -9.55M |
| Net Margin % | -16.31% | -16.78% | -18.47% | -14.1% | 1.03% | -16.58% | -46.35% | -18.93% | -20.89% | -19.58% | -17.62% | -25.45% | -40.32% |
| Net Income Growth % | 2.46% | -4.83% | -80.33% | -1767.25% | 107.74% | 50.64% | -139.92% | -14.19% | -34.63% | -35.91% | 16.72% | 17.36% | - |
| Net Income (Continuing) | -39.68M | -39.65M | -37.82M | -20.97M | 1.26M | -16.26M | -32.94M | -12.69M | -12.03M | -8.93M | -6.57M | -7.85M | -9.76M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.68 | -1.69 | -1.64 | -0.92 | 0.06 | -0.84 | -1.82 | -1.18 | -0.96 | -1.85 | -0.87 | -1.05 | -1.28 |
| EPS Growth % | 4% | -3.05% | -78.26% | -1659.32% | 107.02% | 53.85% | -54.24% | -22.92% | 48.11% | -112.64% | 17.14% | 17.97% | - |
| EPS (Basic) | - | -1.69 | -1.64 | -0.92 | 0.06 | -0.84 | -1.82 | -1.18 | -0.96 | -1.85 | -0.87 | -1.05 | -1.28 |
| Diluted Shares Outstanding | 23.69M | 23.46M | 23.08M | 22.68M | 20.95M | 19.27M | 18.06M | 14.62M | 12.57M | 4.82M | 7.51M | 7.51M | 7.44M |
| Basic Shares Outstanding | 23.69M | 23.46M | 23.08M | 22.68M | 20.7M | 19.27M | 18.06M | 14.62M | 12.57M | 4.82M | 7.51M | 7.51M | 7.44M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - |
Liquidity and cash burn
According to the provided quarterly financial data, KIDS has experienced a notable deceleration in top-line expansion, with year-over-year revenue growth rates sliding from the 40% range observed in early 2024 to approximately 13.3% as of the most recent 2026Q1 reporting period.
The transition from high-growth phases to more moderate expansion suggests that the initial market penetration of their specialized pediatric implant portfolio may be reaching a saturation point within existing hospital networks. Investors should monitor whether this slowdown reflects a broader cooling in surgical case volumes or if the company is struggling to maintain its competitive edge against larger, diversified orthopedic incumbents.
Based on reported financial statements, OrthoPediatrics has maintained a robust gross margin profile, consistently hovering around the 73% mark, which suggests that the company retains significant pricing power despite the specialized and niche nature of its pediatric-focused medical device product offerings.
This high margin profile indicates that the company's anatomical specificity provides a defensible moat, allowing for premium pricing that is not easily undercut by competitors. However, the stability of these margins warrants further investigation to ensure that logistical costs associated with the consignment inventory model do not begin to erode this core profitability metric.
As indicated by the income statement data, KIDS continues to struggle with operating leverage, as SG&A expenses frequently track closely with or exceed gross profit, resulting in persistent negative operating margins that have failed to show a clear, sustained path toward positive territory.
The company's heavy reliance on a specialized direct sales force and clinical education programs creates a high fixed-cost base that appears to scale linearly rather than efficiently with revenue. This suggests that the current business model may require a significantly larger revenue base to achieve the necessary operating scale to reach break-even.
Analysis of the income statement reveals that stock-based compensation, which reached $4.0M in 2026Q1, represents a meaningful drag on the bottom line, consistently contributing to the reported net losses and complicating the assessment of the company's underlying operational performance and true cash burn.
The persistent use of equity-based incentives appears to be a significant factor in the company's inability to reach GAAP profitability. Investors should carefully evaluate how these non-cash expenses mask the true cost of talent acquisition and retention in a highly competitive medical device labor market.
Based on the most recent financial disclosures, the company's cash position of $19.5M against a backdrop of ongoing operating losses suggests a potential liquidity crunch, which may force management to seek dilutive financing if the current cash burn rate is not addressed immediately.
The combination of decelerating revenue growth and persistent negative operating margins creates a precarious financial situation that short-term investors should monitor closely. The lack of a clear inflection point toward profitability may limit the company's strategic flexibility and increase its vulnerability to rising capital costs.
Quick answers to the most common questions about buying KIDS stock.
For fiscal year 2025, OrthoPediatrics Corp. (KIDS) reported total revenue of $236.3M. This represents a 897.9% increase compared to $23.7M in 2014.
OrthoPediatrics Corp. (KIDS) reported a net loss of $39.6M for the fiscal year ending 2025.
OrthoPediatrics Corp. (KIDS) reported an operating income of $-29.0M, resulting in an operating profit margin of -12.3%. This margin reflects the operational efficiency of the business before interest and taxes.
OrthoPediatrics Corp. (KIDS) generated $172.7M in gross profit for the year, representing a gross profit margin of 73.1%. This demonstrates the company's core pricing power and production efficiency.