Carlsmed (CARL) Q3 2025 earnings summary

Executive summary

• Achieved 98.4% year-over-year revenue growth in Q3 2025, driven by accelerated surgeon adoption and increased utilization of aprevo technology.

• Completed an IPO in July 2025, raising $93.5 million in net proceeds, and converted all outstanding preferred stock to common stock.

• Expanded gross margins to 76% and reduced lead times for 3D-printed implants from 20 to 8 business days.

• Expanded FDA clearances to include cervical spine fusion, with commercial launch expected in early 2026.

• Strong clinical data supports a 75–76% reduction in revision surgeries over two years compared to standard of care.

Financial highlights

• Q3 2025 revenue was $13.1 million, up from $6.6 million in Q3 2024; nine months revenue was $35.3 million, up from $17.8 million in 2024.

• Gross margin improved to 75.9% in Q3 2025 from 72.8% in Q3 2024; nine months gross margin was 74.8%.

• Total operating expenses rose to $19 million in Q3 2025 from $12.6 million, with increases in R&D, sales and marketing, and G&A.

• GAAP net loss was $8.5 million for Q3 2025; adjusted EBITDA loss was $8.2 million.

• Cash and equivalents at September 30, 2025, were $115.5 million, with $15.6 million in debt outstanding.

Outlook and guidance

• Increased full-year 2025 revenue guidance to $49–$50 million, representing 80–84% annual growth over 2024.

• Gross margin of 76% in Q3 is expected to be sustainable in future quarters.

• Sufficient liquidity to fund operations for at least the next 12 months, supported by IPO proceeds and available credit.

• Commercial launch of cervical spine platform anticipated in early 2026, with plans to expand into new indications and international markets.

• Ongoing investments in supply chain and digital production expected to further expand margins and support growth.