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

Carlsmed (NASDAQ:CARL) issued its quarterly earnings data on Tuesday. The company reported ($0.34) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.42) by $0.08, FiscalAI reports. The firm had revenue of $21.55 million during the quarter. Carlsmed had a negative return on equity of 38.06% and a negative net margin of 57.42%.

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 Performance

Carlsmed stock traded up $2.98 during trading hours on Wednesday, hitting $17.69. 115,951 shares of the stock traded hands, compared to its average volume of 131,649. The firm’s 50 day moving average price is $14.87 and its 200-day moving average price is $12.52. The stock has a market capitalization of $482.96 million, a price-to-earnings ratio of -12.44 and a beta of 1.97. Carlsmed has a 1 year low of $8.50 and a 1 year high of $17.79. The company has a debt-to-equity ratio of 0.18, a current ratio of 8.84 and a quick ratio of 8.66.

Recent Carlsmed Headlines

Investors following CARL have been watching these headlines:

• Positive Sentiment: The company raised its 2026 revenue outlook to $78 million–$80 million. Management also cited new DRG tailwinds and Q4 product launches as growth drivers. Carlsmed revenue outlook
• Positive Sentiment: Three firms raised their price targets while maintaining Buy ratings: Truist to $23 from $20, Needham to $22 from $17, and BTIG to $26 from $24. The upgrades signal improved analyst expectations. Needham price-target upgrade
• Negative Sentiment: Despite beating loss expectations, Carlsmed remains unprofitable, reporting a quarterly per-share loss. Continued losses are a risk as the company pursues growth.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. 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. Wall Street Zen raised shares of Carlsmed from a “sell” rating to a “hold” rating in a research report on Saturday, August 15th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Carlsmed in a research note on Wednesday, November 4th. Needham & Company LLC increased their target price on shares of Carlsmed from $17.00 to $22.00 and gave the company a “buy” rating in a research report on Wednesday. Finally, 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. Four equities research 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 data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $22.00.

Institutional Investors Weigh In On Carlsmed

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Deutsche Bank AG purchased a new position in Carlsmed during the second quarter valued at approximately $106,000. Bank of America Corp DE purchased a new stake in Carlsmed in the 2nd quarter worth $108,000. Alpine Woods Capital Investors LLC purchased a new stake in Carlsmed in the 2nd quarter worth $161,000. Bank of New York Mellon Corp acquired a new position in Carlsmed during the second quarter worth $181,000. Finally, Zevenbergen Capital Investments LLC raised its position in Carlsmed by 50.4% during the third quarter. Zevenbergen Capital Investments LLC now owns 17,900 shares of the company’s stock worth $252,000 after acquiring an additional 6,000 shares during the period.

About Carlsmed

Carlsmed, Inc. is a medical technology company focused on personalized solutions for spine surgery. The company combines patient-specific planning, advanced imaging, software and additive manufacturing to develop implants designed to address the anatomical needs of individual patients. Its products include the aprevo® patient-specific interbody implant system, which is designed for use in spinal fusion procedures. Carlsmed’s technology is intended to support surgeons in planning procedures and selecting or creating implants that may help restore spinal alignment and improve surgical precision.