Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Sep 25, 2026
Orthopediatrics Corp (KIDS)
A forensic read on Orthopediatrics Corp built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
F · Poor — capital at risk
Forensic grade
Safe
Financial health
4.2
Distress distance
Clean
Earnings quality
5
Forensic signals
-13.0
P / E (ttm)
-11.4%
ROE
$583M
Market cap
0.00%
Dividend yield
15.4%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Orthopediatrics Corp earns an F (Poor — capital at risk) forensic quality grade, and its balance-sheet distress test reads 4.2, placing it in the Safe zone. 5 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-7.0%
FY2025
Return on invested capital.Return on invested capital is -7.0% in the latest fiscal year and steady across FY2023–FY2025, inside a 1.2-point range. After-tax operating profit was ($21M) in FY2023 and ($31M) in FY2025, with operating income at -18.0% of revenue in FY2023, -17.1% in FY2024 and -16.6% in FY2025. The capital base behind it grew +21% across FY2023–FY2025, from $366M to $445M, while the return fell 1.2 points, so the dollars added over that window earned less than the -5.8% the older base was already earning. FY2025's operating profit carried a $6M restructuring charge and a $2M goodwill write-off that alone took about 1.3 points off that year's return, so more than the whole 1.2-point fall across FY2023–FY2025 is that charge landing in the latest year rather than the capital earning less.
+1.7%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +3% over the last 2 years to FY2025 (+1.7%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~1.7% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~3%.
+10.9%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +10.9% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. The build is led by receivables up +27% against revenue +15% and inventory up +14% against +13% in cost of sales. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 9% of net operating assets, against an accruals ratio of 10.9%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
Key fundamentals
Latest Revenue$236.3M
Revenue Growth YoY+15.4%
Revenue CAGR (2yr)+26.0%
Net Margin-16.8%
Free Cash Flow-$16.0M
Return on Equity-11.4%
Debt / Equity0.29x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Orthopediatrics Corp's actual 10-K/10-Q/8-K filings?
Receivables vs revenue.Days sales outstanding moved from 76 to 83 days FY2024→FY2025 (receivables +27% vs revenue +15%). Receivables are creeping up relative to sales. Across FY2023–FY2025 the day count ran 85 → 76 → 83 days, so the latest reading sits on top of a record that was flat or falling before it — one year's move, not a direction the business has been travelling in. Both figures are measured on period-end balances rather than the beginning-plus-ending average, because averaging needs the balance a year before every reading — FY2024's opening balance is on file, but across the 3 fiscal years read here (FY2023–FY2025) the average yields only 2 day counts (1 step), too few to tell a climb from one year's move.
$2M
FY2025–FY2025
Goodwill impairments.Took $2M of goodwill writedowns across 1 year (FY2025 ($2M)). Writedowns mean past acquisitions underperformed what was paid for them.