Carlsmed 2025 Q2 Earnings Strong Revenue Growth Despite Widening Net Loss

Carlsmed reported strong Q2 revenue growth of 98.7% year-over-year, surpassing expectations. However, the company's net loss widened despite improved per-share losses, indicating mixed financial performance. The full-year revenue guidance was raised, aligning with the company's growth trajectory.

Revenue
Carlsmed’s total revenue surged to $12.08 million in Q2 2025, a 98.7% increase from $6.08 million in the same period the prior year. The growth was driven by the expanded use of the AI-enabled Aprivoo technology platform, which supports personalized spine surgeries. Despite the revenue increase, gross margin dipped slightly to 73.4% from 75.0% in 2024, primarily due to expedited production fees incurred to meet customer demand.

Earnings/Net Income
The company narrowed its per-share loss to $1.47 in Q2 2025 from $1.55 in 2024, a 5.2% improvement. However, the net loss widened to $6.77 million, a 7.8% increase from the prior year, as rising operating expenses outpaced revenue growth. While the per-share loss shows some progress, the overall net loss remains a concern for investors.

Price Action
The stock price of Carlsmed fell 2.98% on the latest trading day, but posted a 6.29% gain for the week. Over the month, however, the stock has declined 5.59%, indicating mixed investor sentiment in the short term.

Post-Earnings Price Action Review
A strategy of buying CARL following a revenue miss and holding for 30 days returned -4.22%, underperforming the benchmark by 4.90%. This strategy was marked by a Sharpe ratio of -3.16, signaling high risk relative to return, with a volatility of 28.07%. Despite a maximum drawdown of 0.00%, the negative return highlights the stock’s challenging post-earnings performance.

CEO Commentary
Mike Cordonnier, CEO and Chairman, emphasized Carlsmed’s strong Q2 results and the 99% year-over-year revenue growth. He highlighted the adoption of the Aprivoo platform, which has demonstrated clinical benefits such as an 82.6% reduction in reoperation rates. With 199 surgeon users by quarter-end—a 72% increase year-over-year—Cordonnier underscored the strategic advantages including CMS reimbursement enhancements and the recent NTAP approval for cervical procedures.

Guidance
Carlsmed provided full-year 2025 revenue guidance of $45.5 million to $47.5 million, representing 67–75% growth year-over-year. The company expects continued adoption of the Aprivoo technology and a commercial cervical launch in 2026. The CEO expressed optimism about scaling the platform and positioning Carlsmed as a leader in next-generation med tech.

Additional News
Carlsmed successfully performed the first personalized cervical spine surgery using its AI-enabled Aprivoo technology in July, with a commercial launch planned for 2026. The company also received CMS New Technology Add-On Payment (NTAP) reimbursement for cervical procedures, effective October 1, 2025, enhancing hospital adoption. In July 2025, Carlsmed completed its initial public offering, raising $93.5 million in net proceeds. These developments underscore the company’s strategic progress in expanding its AI-driven spine surgery solutions and securing reimbursement pathways.