Carlsmed (NASDAQ:CARL) Releases Quarterly Earnings Results, Beats Estimates By $0.08 EPS

Carlsmed (NASDAQ:CARL) issued its earnings results on Tuesday. The company reported ($0.34) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.42) by $0.08, FiscalAI reports. The business had revenue of $21.55 million during the quarter. Carlsmed had a negative return on equity of 40.55% and a negative net margin of 55.82%.

Here are the key takeaways from Carlsmed’s conference call:

• Third-quarter revenue rose 65% to $21.6 million, with procedure volume up 76% year over year and the trained surgeon base growing more than 60%. Carlsmed raised its 2026 revenue guidance to $78 million–$80 million, from $74 million–$78 million.
• Gross margin expanded about 140 basis points to 77.3%, and adjusted EBITDA loss narrowed to $7.3 million from $8.2 million a year earlier. Management said the quarter marked the company’s first positive operating leverage from sales growth and gross margins.
• New lumbar reimbursement rules took effect October 1, and management reported an uptick in hospitals going under contract. The company also launched its posterior bilateral lumbar procedure and expects to launch its cervical plating system, while cervical procedures reached 12% of third-quarter revenue.
• The company remains loss-making, with adjusted EBITDA of negative $7.3 million and quarterly cash burn of $9 million. Sales and marketing, R&D, and adjusted general and administrative expenses all increased year over year, although Carlsmed ended the quarter with $80.3 million in cash, restricted cash, and investments.

Carlsmed Stock Down 0.7%

NASDAQ:CARL traded down $0.13 during trading hours on Thursday, hitting $18.47. The stock had a trading volume of 107,998 shares, compared to its average volume of 133,825. The company has a current ratio of 8.84, a quick ratio of 8.66 and a debt-to-equity ratio of 0.18. Carlsmed has a 1-year low of $8.50 and a 1-year high of $19.15. The business has a 50 day simple moving average of $14.91 and a two-hundred day simple moving average of $12.54. The company has a market cap of $504.29 million, a PE ratio of -12.48 and a beta of 1.97.

Wall Street Analysts Forecast Growth

Several research firms recently commented on CARL. BTIG Research raised their price target on shares of Carlsmed from $24.00 to $26.00 and gave the company a “buy” rating in a report on Wednesday. Weiss Ratings reiterated a “sell (d-)” rating on shares of Carlsmed in a research note on Wednesday, November 4th. Wall Street Zen raised shares of Carlsmed from a “sell” rating to a “hold” rating in a research report on Saturday, August 15th. Truist Financial raised their target price on shares of Carlsmed from $20.00 to $23.00 and gave the company a “buy” rating in a research note on Wednesday. Finally, Needham & Company LLC raised their target price on shares of Carlsmed from $17.00 to $22.00 and gave the company a “buy” rating in a research note on Wednesday. Four analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $22.00.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Jupiter Topco LLC purchased a new stake in Carlsmed during the 2nd quarter worth $12,992,000. Parkman Healthcare Partners LLC acquired a new position in Carlsmed in the 2nd quarter worth $6,200,000. BlackRock Inc. purchased a new position in Carlsmed in the 2nd quarter valued at about $5,528,000. KCM Capital Inc purchased a new position in Carlsmed in the 1st quarter valued at about $1,810,000. Finally, Russell Investments Group Ltd. grew its stake in shares of Carlsmed by 85.3% during the third quarter. Russell Investments Group Ltd. now owns 257,805 shares of the company’s stock valued at $3,627,000 after acquiring an additional 118,663 shares in the last quarter.

Top Carlsmed Stories

These are some of the CARL stories that stood out recently:

• Positive Sentiment: Carlsmed reported third-quarter revenue of $21.6 million, up 65% year over year. Its loss of $0.34 per share was narrower than analysts’ expected $0.42 loss, while revenue exceeded estimates. The company also raised its full-year 2026 revenue outlook to $78 million–$80 million. Carlsmed Q3 results and raised guidance
• Positive Sentiment: Analysts raised their targets and maintained Buy ratings following the report: BTIG increased its target to $26, Truist to $23 and Needham to $22 from $17. The target revisions reinforce optimism about the results and outlook. Analysts raise Carlsmed forecasts
• Negative Sentiment: The company still posted a quarterly loss, and its net margin remains negative, so continued execution and growth will be important to improving profitability.

Carlsmed Company Profile

Carlsmed, Inc. is a medical technology company focused on personalized solutions for spine surgery. Its technology uses patient-specific planning and implant design to help surgeons plan spinal-fusion procedures. The company’s products include aprevo®, a line of patient-specific interbody implants made using 3D printing. Carlsmed’s platform is designed to use a patient’s imaging and surgical plan to tailor implant geometry and support alignment goals. Founded in 2018 and based in Carlsbad, California, Carlsmed serves the U.S. market.