GET DAILY SIGNALSOrthoPediatrics (KIDS) Delivers +19% Revenue Growth in Q3 2026 and Raises Full-Year Guidance
Key Takeaways
- OrthoPediatrics (KIDS) reported third quarter 2026 revenue of $72.7 million, up 19% from $61.2 million a year earlier, beating consensus estimates.
- The net loss narrowed to $5.9 million, or $0.25 per share, versus a loss of $11.8 million, or $0.50 per share, in the prior-year quarter.
- Non-GAAP loss per share of $0.23 was in line with analyst expectations, while revenue came in roughly $4.2 million above the consensus estimate of about $68.5 million.
- Full-year 2026 revenue guidance was raised to $270.0 million to $273.0 million, up from a prior range of $265.0 million to $269.0 million.
- Adjusted EBITDA reached a quarterly record of $6.9 million, up from $6.2 million a year earlier.
Why These Results Stand Out
OrthoPediatrics focuses on pediatric orthopedics, offering implants, instruments, and braces in the U.S. and more than 75 international markets. The third-quarter numbers provide a useful checkpoint on whether the company can sustain double-digit revenue growth while moving closer to profitability. Management has targeted roughly $25 million in adjusted EBITDA and breakeven free cash flow for 2026, so each quarter’s margin and cash-flow trends offer important signals. The record adjusted EBITDA and raised outlook suggest the specialty bracing approach and recent product launches are starting to improve operating leverage. I also checked comparable names in the space using Tickeron’s AI Screener to see how the metrics stack up.
Quarterly Performance Breakdown
Revenue reached $72.7 million, a 19% increase from $61.2 million in the same quarter last year. U.S. revenue grew 19% to $57.9 million, and international revenue rose 18% to $14.8 million. Trauma and Deformity revenue increased 19% to $52.6 million, while Scoliosis revenue advanced 18% to $19.2 million. Gross profit came in at $54.0 million for a 74% gross margin. Adjusted EBITDA hit a record $6.9 million versus $6.2 million a year earlier. Free cash flow improved to a positive $1.6 million from a $3.4 million use of cash in the prior-year period. The net loss narrowed to $5.9 million, or $0.25 per share, from $11.8 million, or $0.50 per share.
On a non-GAAP basis the loss was $0.23 per share, matching expectations. Revenue exceeded the consensus estimate of roughly $68.5 million by about $4.2 million. Full-year 2026 revenue guidance was lifted to a range of $270.0 million to $273.0 million, implying 14% to 16% growth, while the company reiterated its target of approximately $25 million in adjusted EBITDA and breakeven free cash flow. From what I see, the combination of the beat and the raised outlook points to steady execution.
Investor Reaction and What Comes Next
Shares moved higher in after-hours trading, with early indications of a roughly 6% gain on the revenue beat and guidance increase. The stock has outperformed the broader Nasdaq so far in 2026, reflecting optimism about the path to profitability. Sentiment before the report had been cautiously constructive, centered on whether adjusted EBITDA would track toward the $25 million annual goal. The record quarterly result appears to have provided reassurance that growth initiatives are translating into better leverage.
Looking ahead, several items will be worth watching. The updated revenue range sets a clear target for the fourth quarter. Continued expansion in adjusted EBITDA and progress toward breakeven free cash flow will remain central. Growth in the Trauma and Deformity and Scoliosis segments, plus further rollout of specialty bracing clinics, should indicate whether momentum holds. International results outside Latin and South America are another area to monitor, as are cash and liquidity levels. New product launches and set deployments will also influence both top-line growth and capital decisions.
AI Tools in My Research Process
I often turn to Tickeron’s AI Screener when evaluating names like this one. It helps filter for technical patterns, fundamentals, and performance metrics across thousands of stocks and ETFs, making it easier to spot comparable ideas and track shifting conditions without manual effort. The tool has become a regular part of how I cross-check sector trends and identify potential follow-ups.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
KIDS in upward trend: 10-day moving average broke above 50-day moving average on October 26, 2026
The 10-day moving average for KIDS crossed bullishly above the 50-day moving average on October 26, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 15 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 83%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 20, 2026. You may want to consider a long position or call options on KIDS as a result. In 60 of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 74%.
The Moving Average Convergence Divergence (MACD) for KIDS just turned positive on October 20, 2026. Looking at past instances where KIDS's MACD turned positive, the stock continued to rise in 29 of 40 cases over the following month. The odds of a continued upward trend are 73%.
KIDS moved above its 50-day moving average on October 20, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +5.15% 3-day Advance, the price is estimated to grow further. Considering data from situations where KIDS advanced for three days, in 217 of 288 cases, the price rose further within the following month. The odds of a continued upward trend are 75%.
Bearish Trend Analysis
The 10-day RSI Indicator for KIDS moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 21 similar instances where the indicator moved out of overbought territory. In 19 of the 21 cases, the stock moved lower in the following days. This puts the odds of a move lower at 90%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KIDS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 82%.
KIDS broke above its upper Bollinger Band on October 20, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for KIDS entered a downward trend on September 21, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 18 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.810) is normal, around the industry mean (3.847). P/E Ratio (-14.179) is within average values for comparable stocks, (1.909). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (11.052). Dividend Yield (0.000) settles around the average of (0.010) among similar stocks. P/S Ratio (2.175) is also within normal values, averaging (40.124).
The Tickeron Price Growth Rating for this company is 37 (best 1 - 100 worst), indicating steady price growth. KIDS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 69 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 94 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. KIDS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 95, placing this stock worse than average.
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General Information
a manufacturer of orthopedic devices
Industry MedicalNursingServices
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