Orthopediatrics 2025 Q2 Earnings Misses Profitability, Revenue Grows

Orthopediatrics reported its fiscal 2025 Q2 earnings on Aug 06th, 2025, delivering a strong revenue increase but posting wider losses. The company’s performance fell short of profitability expectations, though it raised full-year revenue guidance earlier in the quarter.

Revenue
Orthopediatrics achieved a significant milestone, with total revenue climbing 15.7% to $61.08 million in 2025 Q2, compared to $52.80 million in the prior year. The Trauma and deformity segment led the growth with $41.66 million, followed by the Scoliosis segment, which brought in $18.52 million. The Sports medicine/other category contributed $905,000, completing the revenue picture for the quarter.

Earnings/Net Income
The company’s financial performance continued to struggle, with losses widening to $0.30 per share in 2025 Q2 from $0.26 per share a year ago, representing a 15.4% increase in the loss per share. Net loss also expanded to $-7.11 million in the quarter, a 18.0% increase compared to $-6.03 million in the same period of 2024. This marks the 11th consecutive year of losses in this quarter, underscoring ongoing challenges in achieving profitability.

Price Action
Orthopediatrics (KIDS) shares have faced downward pressure, with a 9.64% decline on the latest trading day, a 17.44% drop over the past week, and a 15.73% loss month-to-date.

Post Earnings Price Action Review
A post-earnings strategy of buying KIDS shares after a revenue increase and holding for 30 days proved highly unprofitable. Over the past three years, this approach returned -60.79%, significantly underperforming the benchmark by 110.18%. The Sharpe ratio stood at -0.57, highlighting poor risk-adjusted returns. Notably, the maximum drawdown was 0%, indicating the strategy lacked capacity for losses, likely due to its short backtest period or specific conditions.

CEO Commentary
CEO Robert D. Bazier emphasized the company’s commitment to operational execution, product development, and strengthening its commercial infrastructure to drive long-term growth. He highlighted the importance of maintaining and expanding third-party sales agencies and distributors to enhance market penetration. Bazier also underscored the need to navigate regulatory challenges, particularly the European Union Medical Device Regulation, while advancing R&D and product commercialization efforts.

Guidance
Orthopediatrics outlined a forward-looking focus on generating revenue from its commercialized products, achieving and sustaining profitability, and securing additional capital to support operations and development. The company plans to continue investing in commercial expansion and R&D, while managing risks from health emergencies, regulatory environments, and restructuring costs.

Additional News
In recent weeks, Orthopediatrics has made strategic moves to strengthen its market position. On Aug 5, 2025, the company announced the continued expansion of its Specialty Bracing division into new territories with multiple clinics, underscoring its commitment to broadening its orthopedic solutions. Also on Aug 5, it reported a 58% year-over-year increase in adjusted EBITDA and raised full-year 2025 revenue guidance. On Aug 4, the company confirmed its participation in the 45th Canaccord Genuity Annual Growth Conference, where leadership will present its strategic vision. On Aug 1, Orthopediatrics launched its 3P™ Pediatric Plating Platform™ Hip System and completed the first surgical case, marking a key product milestone.