Carlsmed (CARL) investor relations material

Executive summary

• Q3 revenue rose 64.9% YoY to $21.554M; 9M revenue increased 60.2% to $56.610M.

• Procedure volume grew 76% YoY; trained surgeon users completing procedures increased 69%, and more than 5,100 patients had been treated through September 30.

• FY2026 revenue guidance increased to $78M–$80M; management cited product expansion and CMS reimbursement changes as growth drivers.

• Q3 net loss widened to $12.245M amid investment in commercial expansion and product development; Adjusted EBITDA loss narrowed to $7.269M.

Financial highlights

• Q3 revenue was $21.554M vs. $13.074M; gross profit was $16.665M vs. $9.927M.

• Q3 operating expenses rose to $29.366M from $18.962M, including $2.390M of executive-transition costs and $0.450M of legal settlements; operating loss was $12.701M vs. $9.035M.

• Q3 net loss was $12.245M vs. $8.526M; 9M net loss was $31.451M vs. $21.021M.

• Q3 basic and diluted loss per share was $0.45 vs. $0.40; Adjusted net loss per share was $0.34 vs. $0.40.

• 9M revenue was $56.610M vs. $35.346M; operating loss was $33.0M vs. $21.3M.

Outlook and guidance

• FY2026 revenue guidance increased from $74M–$78M to $78M–$80M, representing over 56% growth at the midpoint vs. FY2025.

• Gross margin is expected to remain in the high 70s near term and increase modestly over the medium and long term through scale, AI leverage and manufacturing efficiencies.

• Q4 growth catalysts include the CMS inpatient payment change and launches of aprevo posterior bilateral and corra cervical plating.

• Operating losses and R&D, sales and marketing, and G&A expenses are expected to rise in absolute dollars as commercial operations and product development expand.

• Existing liquidity, expected product sales and available borrowing capacity are expected to fund planned operations and capital expenditures for at least 12 months, subject to assumptions.