OrthoPediatrics Slips as Q4 Revenue Miss Overshadows Strong 2026 Forecast
Shares fall despite the medical device maker projecting double-digit growth and $25 million in adjusted EBITDA, signaling investor concern over the near-term sales shortfall.
Shares of OrthoPediatrics Corp. (NASDAQ: KIDS) fell 2.2% on Tuesday after the company announced preliminary fourth-quarter financial results that missed Wall Street estimates, overshadowing a robust growth forecast for fiscal year 2026.
The Warsaw, Indiana-based company, which specializes in orthopedic devices for children, saw its stock price drop to $18.31 in afternoon trading. The decline came after it reported preliminary, unaudited fourth-quarter revenue of $61.3 million. While this figure represents strong 16% year-over-year growth, it fell 1.6% short of the consensus analyst estimate of $62.3 million.
The market's negative reaction highlighted investor focus on near-term execution, even as the company signaled significant confidence in its future performance. In the same announcement, OrthoPediatrics initiated an aggressive full-year 2026 guidance that anticipates continued expansion.
The company projects revenue for fiscal 2026 to be in the range of $262 million to $266 million, which would represent growth of 11% to 13%. Furthermore, it expects to generate approximately $25 million in Adjusted EBITDA for the year, a key metric of profitability.
This forward-looking guidance, however, was not enough to prevent the stock from trading lower. The slide puts the company's market capitalization at approximately $459 million.
The current share price stands in contrast to a largely bullish sentiment from Wall Street analysts. The consensus average price target for OrthoPediatrics is $24.12, suggesting analysts see a significant upside potential of over 30% from its current level. The majority of analysts covering the stock maintain a "Buy" or "Strong Buy" rating, indicating a belief in the company's long-term strategy and its leadership position in a niche market.
OrthoPediatrics has carved out a unique space within the broader medical technology industry by exclusively focusing on the development of surgical implants and instruments for the pediatric population. This market has historically been underserved by larger device makers that often adapt adult products for children.
The company's growth has been built on addressing complex conditions in pediatric trauma, deformity correction, and sports medicine. Investors and analysts will now be watching closely to see if the company can meet its ambitious 2026 targets and close the valuation gap between its current stock price and analyst expectations. The full, audited financial results and a management conference call are expected in the coming weeks, which will provide more context on the fourth-quarter performance and the drivers behind its 2026 outlook. Details of the preliminary results were disclosed in a regulatory filing with the U.S. Securities and Exchange Commission.