Orthopediatrics 2025 Q2 Earnings Misses Targets Despite Revenue Beat

Orthopediatrics reported better-than-expected revenue in Q2 2025 but continued losses widened. The company raised full-year revenue guidance slightly but has not yet turned a profit.

Orthopediatrics (KIDS) reported its fiscal 2025 Q2 earnings on Aug 07th, 2025.

Revenue
Total revenue increased by 15.7% to $61.08 million in 2025 Q2 from $52.80 million in 2024 Q2, with Trauma and deformity leading the charge with $41.66 million, followed by Scoliosis at $18.52 million, and Sports medicine/other at $905,000.

Earnings/Net Income
Despite strong top-line performance, Orthopediatrics’s losses deepened, with a net loss of $-7.11 million in 2025 Q2 compared to $-6.03 million in the prior year. Earnings per share turned negative at $-0.30, a 15.4% increase in losses year-over-year. The deepening losses underscore ongoing operational challenges.

Price Action
The stock has experienced mixed performance, gaining 6.90% in the latest trading day but declining 7.34% for the week and 11.44% month-to-date.

Post Earnings Price Action Review
A post-earnings strategy of buying shares following a revenue beat and holding for 30 days has underperformed significantly over the past three years. The strategy generated a return of -60.79%, versus a benchmark of 49.40%, with an excess return of -110.18%. The negative CAGR of -27.05% and a maximum drawdown of 0.00% reflect the challenging market reception despite improved revenue.

CEO Commentary
David Bailey, President & CEO, expressed optimism about the company’s performance, noting 16% global revenue growth driven by procedure and clinic volumes, along with market share gains in key segments. He emphasized strategic priorities such as new product adoption and aggressive expansion of the OPSB franchise, including new clinics and international operations. Bailey expects continued momentum in 2025, with positive free cash flow by Q4 2025 and breakeven by 2026.

Guidance
Orthopediatrics raised its full-year 2025 revenue guidance to a range of $237.0 million to $242.0 million, representing 16% to 18% growth compared to 2024. The company reiterated $15.0 million in annual set deployment and $15.0 million to $17.0 million in adjusted EBITDA for the year.

Additional News
The company announced the expansion of its OrthoPediatrics Specialty Bracing Division (OPSB) into two new international territories, including its first international operation in Ireland. Additionally, the company initiated a global restructuring plan in Q4 2024, which included a $3.0 million charge in Q2 2025. The plan aims to reduce operating costs and improve operational efficiency. No M&A activity or executive changes were disclosed within the three weeks following the earnings report.