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

Carlsmed (NASDAQ:CARL) released its earnings results on Wednesday. The company reported ($0.39) EPS for the quarter, topping analysts’ consensus estimates of ($0.40) by $0.01, FiscalAI reports. Carlsmed had a negative net margin of 57.76% and a negative return on equity of 60.74%. The firm had revenue of $18.94 million during 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 Stock Performance

CARL traded up $0.59 on Thursday, reaching $14.15. The company had a trading volume of 170,145 shares, compared to its average volume of 142,355. The company’s fifty day moving average is $11.43 and its 200 day moving average is $11.31. The company has a debt-to-equity ratio of 0.17, a quick ratio of 11.67 and a current ratio of 11.88. The stock has a market cap of $384.73 million and a P/E ratio of -5.64. Carlsmed has a fifty-two week low of $8.50 and a fifty-two week high of $17.19.

Analyst Ratings Changes

CARL has been the subject of a number of analyst reports. The Goldman Sachs Group decreased their price target on Carlsmed from $19.00 to $17.00 and set a “buy” rating for the company in a research note on Thursday, April 9th. Weiss Ratings downgraded shares of Carlsmed from a “sell (d-)” rating to a “sell (e+)” rating in a report on Friday, July 24th. Wall Street Zen cut shares of Carlsmed from a “hold” rating to a “sell” rating in a research note on Saturday, July 18th. Truist Financial set a $20.00 target price on shares of Carlsmed in a report on Thursday. Finally, Needham & Company LLC initiated coverage on Carlsmed in a research report on Wednesday, July 1st. They set a “buy” rating and a $17.00 price target on the stock. Four 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 stock. According to MarketBeat, Carlsmed has a consensus rating of “Moderate Buy” and a consensus target price of $19.25.

Institutional Trading of Carlsmed

Hedge funds have recently added to or reduced their stakes in the company. Rhumbline Advisers bought a new stake in Carlsmed in the 3rd quarter valued at about $79,000. JPMorgan Chase & Co. acquired a new stake in Carlsmed during the third quarter worth about $37,000. Vanguard Group Inc. bought a new stake in shares of Carlsmed during the 3rd quarter worth approximately $3,042,000. Russell Investments Group Ltd. bought a new position in Carlsmed in the third quarter valued at approximately $2,128,000. Finally, BNP Paribas Financial Markets acquired a new stake in shares of Carlsmed in the 3rd quarter valued at $33,000.

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”).