OrthoPediatrics (KIDS) Stock Forecast & Price Target

OrthoPediatrics Corp has demonstrated strong financial performance, evidenced by a 50 basis point increase in gross margin and a notable 280 basis point improvement in adjusted EBITDA margin year-over-year. The company reported a 17.3% increase in Trauma & Deformity sales, reaching $44.1 million, while core sales growth dynamics remained robust, particularly with over 20% growth in OPSB. Management anticipates that ongoing revenue growth, along with new product introductions and improved pricing strategies, will enhance margins and drive operational efficiencies in the future.

OrthoPediatrics Corporation faces multiple challenges impacting its financial outlook, including slower than expected revenue growth, which declined from 15.7% to 12.2% in the third quarter of 2025. The company has also seen a reduction in the deployment of product sets, decreasing from $17.2 million in the second quarter to $16 million in the trailing twelve months, further highlighting potential issues in sales momentum and market penetration. Additionally, the lowered fiscal year 2025 guidance, coupled with concerns about margins and cash burn, suggests ongoing operational difficulties that may hinder future profitability.