OrthoPediatrics (KIDS) Stock Forecast & Price Target

OrthoPediatrics Corp has demonstrated strong financial performance, highlighted by a 17.3% year-over-year growth in Trauma & Deformity sales, reaching $44.1 million, which exceeded expectations. Additionally, the company's adjusted EBITDA margin improved by 280 basis points year-over-year, reflecting enhanced operational efficiency and profitability. Looking ahead, management anticipates continued revenue growth driven by product innovation, increased market demand, and improved operating leverage, which collectively contribute to a positive long-term outlook for the company's financial health.

OrthoPediatrics Corp is facing significant challenges that contribute to a negative outlook on its stock, including slower-than-expected revenue growth, which has decreased from 15.7% in 2Q25 to 12.2% in 3Q25. The company's guidance for FY25 has been lowered to a projected revenue range of $233.5M to $234.5M, reflecting a decline in productivity gains and potential weaknesses in its product offerings, particularly from recent acquisitions. Additionally, a forecast of high-single-digit organic revenue growth raises concerns about the company's ability to improve margins and cash flow amid disappointing sales and greater cash burn.