KIDSORTHOPEDIATRICS CORP

Surgical & Medical Instruments & Apparatus

Revenue: $236M; 15% YoY
Operating margin: -16.6%; 2.9% YoY
EBITDA: −$18M; 14% YoY
Market cap: $775M
Employees: 602; $393K revenue each
Net debt / EBITDA: —; −$16M net debt
AI in 10-K: 0.4; mentions per 10K words

Takeover score 5 of 13

Fixable underperformance 2 of 7

TSR below peersYes
5 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
—
Cash flow under 80% of net income
Dilutive SBCNo
8% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
0% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
23% of assets
Over 40% of assets
Shareholder dissentYes
58% lowest support
Any vote under 80% support

Buyer economics 2 of 4

Low revenue per employeeNo
$393K · 52nd pct
Bottom quartile of its SIC industry
Quiet on AIYes
0.4 per 10K words · 20th pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
—
More cash than debt, positive EBITDA
Buyout-sizedYes
$775M market cap
Market cap $500M–$5B

Catalysts 1 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingYes
−$48M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$98M	$122M	$149M	$205M	$236M	15%
Operating income	−$18M	−$25M	−$27M	−$35M	−$39M	12%
Net income	−$16M	$1M	−$21M	−$38M	−$40M	4.8%
Operating cash flow	−$13M	−$22M	−$27M	−$27M	−$5M	82%
Capex	$8M	$10M	$17M	$14M	$11M	22%
Stock-based comp	$6M	$7M	$11M	$14M	$18M	31%

Deal filings

None.

13D filers

Filed	Filer	Form	Stake	Intent
Sep 11, 2026	Squadron Capital LLC	SCHEDULE 13D/A	47.6%	Passive
Sep 1, 2026	Squadron Capital LLC	SCHEDULE 13D/A	25.1%	Passive
Sep 22, 2022	Squadron Capital LLC	SC 13D/A	97.4%	Passive
Aug 17, 2022	Squadron Capital LLC	SC 13D/A	30.1%	Passive
Mar 18, 2021	Squadron Capital LLC	SC 13D	27.4%	Active

Insider trading

Open-market buys, 12 mo: $0 · 0
Open-market sells, 12 mo: $48M · 26
Net: −$48M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2025	—	—	30	75000
FY2024	—	—	56	75000
FY2023	—	—	79	72000
FY2022	—	—	96	75000
FY2021	—	—	145	100000