Carlsmed Inc (NASDAQ:CARL) reported third quarter 2025 financial results that demonstrated significant revenue growth and exceeded analyst expectations, though the company continues to operate at a loss as it scales its AI-enabled personalized spine surgery platform.
Quarterly Performance Versus Estimates
The medical technology company posted impressive revenue growth while surpassing consensus estimates on both top and bottom lines. The quarter showed substantial operational progress despite ongoing losses typical for a growth-stage healthcare technology firm.
- Revenue: $13.1 million actual versus $11.6 million estimated
- EPS: ($0.40) actual versus ($0.46) estimated
- Revenue Growth: 98% year-over-year increase from $6.6 million in Q3 2024
The company's performance represented a revenue beat of approximately 12.4% above analyst expectations, while the earnings per share loss was narrower than anticipated by $0.06. This combination of stronger-than-expected revenue growth and improved profitability metrics contributed to positive after-hours trading sentiment.
Market Reaction and Price Action
Following the earnings release, Carlsmed shares showed positive momentum in after-market trading, reflecting investor approval of the quarterly results and raised guidance. The immediate market response suggests confidence in the company's growth trajectory and execution capabilities. This positive reaction contrasts with the stock's performance over recent weeks, which had seen declines amid broader market volatility.
Updated Financial Guidance
Management raised full-year 2025 revenue guidance, indicating continued confidence in the company's growth prospects. The updated outlook positions Carlsmed above analyst expectations for the full fiscal year.
- New 2025 Revenue Guidance: $49-50 million
- Previous Guidance: $45.5-47.5 million
- Analyst Sales Estimate for 2025: $47.6 million
The raised guidance represents year-over-year growth of 80-84% and exceeds analyst sales projections by approximately 3-5%. For the fourth quarter, the implied guidance of $13.7-14.7 million also surpasses the analyst sales estimate of $13.3 million.
Business Highlights and Operational Metrics
Beyond the financial results, Carlsmed demonstrated significant operational progress across multiple fronts. The company achieved several milestones that support its long-term growth strategy in the personalized spine surgery market.
Gross margin expanded to 75.9% from 72.8% in the prior year period, reflecting improved operational efficiency. The company also reported a 70% year-over-year increase in surgeon users and reduced lead times for its aprevo® interbody implants to within eight business days, down from twenty business days in the third quarter of 2024.
Clinical and regulatory advancements included securing CMS New Technology Add-On Payment (NTAP) for cervical procedures effective October 1, 2025, with commercial launch expected in early 2026. The company also presented data showing a 75% reduction in revision surgery at a two-year time point for aprevo® versus a patient-matched cohort.
Financial Position and Investment
Carlsmed maintained a strong liquidity position with $115.5 million in cash and equivalents as of September 30, 2025, providing substantial runway to fund operations and growth initiatives. The company executed an amendment to its existing debt facility in October, increasing maximum availability to $50 million and extending the maturity date and interest-only payment period.
Operating expenses increased to $19.0 million from $12.6 million in the prior year period, primarily driven by investments in sales and marketing as the company expands its commercial footprint. Net loss for the quarter was ($8.5) million, compared to ($7.8) million in the third quarter of 2024.
For more detailed earnings analysis and future estimates, visit the Carlsmed earnings and estimates page.
Disclaimer: This article provides financial analysis for informational purposes only and does not constitute investment advice, recommendation, or endorsement of any security. Investors should conduct their own research and consult with financial advisors before making investment decisions.
