Carlsmed (NASDAQ:CARL) Posts Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Carlsmed (NASDAQ:CARL) released its quarterly earnings data on Wednesday. The company reported ($0.39) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.40) by $0.01, FiscalAI reports. Carlsmed had a negative net margin of 57.42% and a negative return on equity of 36.62%. The company had revenue of $18.94 million for the quarter.

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

• Q2 revenue increased 57% year over year to $18.9 million, driven by new surgeon additions, higher utilization among existing users, and contributions from the aprevo Cervical platform. Surgeon users grew more than 60% year over year.
• Carlsmed raised its full-year 2026 revenue guidance to $74 million–$78 million, implying more than 50% growth at the midpoint. Management cited continued volume growth, cervical expansion, and upcoming product launches as key drivers.
• CMS’s FY 2027 IPPS final rule creates three new MS-DRG codes for aprevo lumbar procedures, simplifying coding and improving hospital reimbursement beginning October 1, 2026. Management expects the change to expand hospital access and provide a larger growth tailwind in 2027 and beyond.
• Gross margin expanded 340 basis points year over year to 76.8%, supported by lower manufacturing costs and digital production efficiencies. Management believes margins can reach the high-70% to low-80% range over the next 24 months, supporting a path toward adjusted EBITDA breakeven.
• New product initiatives remain on schedule, including Q4 commercial launches for the aprevo bilateral lumbar system and corra personalized cervical plating system, while the ACE cervical registry is expected to begin enrolling more than 300 patients across over a dozen sites in Q4.

Carlsmed Price Performance

NASDAQ:CARL traded up $0.19 during mid-day trading on Friday, hitting $13.89. 11,712 shares of the stock traded hands, compared to its average volume of 143,513. The business’s 50-day moving average price is $11.47 and its 200 day moving average price is $11.32. The company has a quick ratio of 11.67, a current ratio of 11.88 and a debt-to-equity ratio of 0.17. The company has a market cap of $377.60 million and a PE ratio of -9.71. Carlsmed has a 12-month low of $8.50 and a 12-month high of $17.19.

Wall Street Analysts Forecast Growth

CARL has been the subject of a number of research reports. Wall Street Zen cut Carlsmed from a “hold” rating to a “sell” rating in a research note on Saturday, July 18th. Truist Financial raised their price target on shares of Carlsmed from $18.00 to $20.00 and gave the company a “buy” rating in a research report on Thursday. BTIG Research restated a “buy” rating and issued a $23.00 price objective on shares of Carlsmed in a research note on Wednesday, May 6th. Needham & Company LLC started coverage on Carlsmed in a research note on Wednesday, July 1st. They set a “buy” rating and a $17.00 price target for the company. Finally, The Goldman Sachs Group lowered their price objective on Carlsmed from $19.00 to $17.00 and set a “buy” rating on the stock in a research note on Thursday, April 9th. Four investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $19.25.

Institutional Trading of Carlsmed

Several institutional investors and hedge funds have recently modified their holdings of CARL. BNP Paribas Financial Markets purchased a new position in shares of Carlsmed during the third quarter worth about $33,000. JPMorgan Chase & Co. bought a new stake in Carlsmed during the third quarter valued at approximately $37,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new position in Carlsmed in the 3rd quarter worth approximately $42,000. Rhumbline Advisers purchased a new position in shares of Carlsmed in the 3rd quarter worth about $79,000. Finally, Wells Fargo & Company MN increased its position in shares of Carlsmed by 61.7% during the 4th quarter. Wells Fargo & Company MN now owns 7,834 shares of the company’s stock valued at $97,000 after purchasing an additional 2,989 shares during the last quarter.

Carlsmed Company Profile

We are a commercial-stage medical technology company pioneering AI-enabled personalized spine surgery solutions with a mission to improve outcomes and decrease the cost of healthcare for spine surgery and beyond. We are focused on becoming the standard of care for spine fusion surgery. The aprevo Technology Platform consists of artificial intelligence (“AI”)-enabled software solutions, and interbody implants that we custom design for each patient’s unique pathology and vertebral bone topography, and single-use surgical instruments (the “aprevo Technology Platform”).