# Carlsmed (CARL) Q2 2025 Financial Results Summary
Carlsmed, Inc. (Nasdaq: CARL) reported its financial results for the second quarter ended June 30, 2025, on August 28, 2025. Below is a summary of the company’s performance and key financial highlights for the quarter.
### Financial Highlights
– **Revenue:**
– Q2 2025 revenue reached **$12.1 million**, a **99% increase** from **$6.1 million** in Q2 2024.
– Growth driven by more surgical procedures using the aprevo® technology platform, while average revenue per procedure remained **flat** year-over-year.
– **Gross Profit:**
– Gross profit for Q2 2025 was **$8.9 million**, compared to **$4.6 million** in Q2 2024, reflecting increased revenue.
– Gross margin was **73.4%** in Q2 2025, slightly down from **75.0%** in Q2 2024, mainly due to expedited production fees.
– **Operating Expenses:**
– Total operating expenses rose to **$15.4 million** in Q2 2025 from **$10.9 million** in Q2 2024.
– Research and development expenses were **$4.2 million**, up from **$4.0 million** the previous year. The increase was attributed to higher personnel costs.
– Sales and marketing expenses increased significantly to **$7.9 million** from **$4.9 million**, driven by personnel addition and variable costs related to revenue growth.
– General and administrative expenses rose to **$3.3 million** from **$2.0 million**, elevated by costs related to business growth and transitioning to a publicly traded company.
– **Net Loss:**
– The net loss for Q2 2025 was **$6.8 million**, compared to a **$6.3 million** loss in Q2 2024, indicating a **7.8% increase** in losses year-over-year.
– Adjusted EBITDA loss also remained stable at **$6.2 million** for both Q2 2025 and Q2 2024.
– **Cash Position:**
– Cash and cash equivalents stood at **$33.5 million** as of June 30, 2025.
– In July 2025, the company received **$93.5 million** in net proceeds from its initial public offering.
### Recent Developments
– Carlsmed successfully completed the first personalized cervical spine surgery using the aprevo® technology platform in July 2025, with plans for a commercial launch in 2026.
– The aprevo® cervical procedures have received reimbursement approval under the CMS New Technology Add-On Payment (NTAP) effective from October 1, 2025.
### Full-Year Guidance
– Carlsmed expects full-year revenue for 2025 to range between **$45.5 million and $47.5 million**, which represents a growth rate of **67% to 75%** compared to 2024.
### Dividend and Share Repurchase
– The company did not declare a quarterly dividend or announce any share repurchase plans during this reporting period.
### Summary of Key Financial Metrics vs. Previous Year
– **Revenue:**
– Q2 2025: **$12.1 million**
– Q2 2024: **$6.1 million**
– **Change:** +99%
– **Gross Profit:**
– Q2 2025: **$8.9 million**
– Q2 2024: **$4.6 million**
– **Change:** +93.5%
– **Gross Margin:**
– Q2 2025: **73.4%**
– Q2 2024: **75.0%**
– **Change:** -1.6%
– **Operating Expenses:**
– Q2 2025: **$15.4 million**
– Q2 2024: **$10.9 million**
– **Change:** +41.2%
– **Net Loss:**
– Q2 2025: **$6.8 million**
– Q2 2024: **$6.3 million**
– **Change:** +7.8%
– **Adjusted EBITDA:**
– Q2 2025: **($6.2 million)**
– Q2 2024: **($6.2 million)**
– **Change:** 0%
Carlsmed is continuing to innovate in the spine surgery market with its AI-enabled technology, positioning itself for significant growth as it prepares for broader applications of its technology. The company remains focused on enhancing operational efficiency and scaling its business.
### CARLSMED, INC. CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except share and per share amounts) (unaudited)
| Three Months Ended | Six Months Ended | |||
|---|---|---|---|---|
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |
| Revenue | $ 12,083 | $ 6,081 | $ 22,272 | $ 11,167 |
| Cost of sales | 3,214 | 1,519 | 5,767 | 2,941 |
| Gross profit | 8,869 | 4,562 | 16,505 | 8,226 |
| Operating expenses: | ||||
| Research and development | 4,160 | 3,998 | 7,310 | 7,254 |
| Sales and marketing | 7,869 | 4,873 | 14,608 | 8,470 |
| General and administrative | 3,342 | 2,010 | 6,808 | 4,150 |
| Total operating expenses | 15,371 | 10,881 | 28,726 | 19,874 |
| Loss from operations | (6,502) | (6,319) | (12,221) | (11,648) |
| Other income (expense): | ||||
| Interest expense | (363) | (325) | (720) | (541) |
| Interest income | 336 | 428 | 716 | 526 |
| Change in fair value of warrant liabilities | (237) | (61) | (270) | (61) |
| Total other income (expense), net | (264) | 42 | (274) | (76) |
| Net loss and comprehensive loss | (6,766) | (6,277) | (12,495) | (11,724) |
| Deemed dividend to preferred stockholders | — | — | (584) | — |
| Net loss attributable to common stockholders | $ (6,766) | $ (6,277) | $ (13,079) | $ (11,724) |
| Net loss per share attributable to common stockholders, basic and diluted | $ (1.47) | $ (1.55) | $ (2.94) | $ (2.91) |
| Weighted-average number of common shares used to compute basic and diluted net loss per share | 4,589,717 | 4,053,063 | 4,445,384 | 4,024,815 |
### CARLSMED, INC. CONDENSED BALANCE SHEETS (in thousands, except for share and par value amounts) (unaudited)
| June 30, 2025 | December 31, 2024 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 33,472 | $ 40,125 |
| Restricted cash | 100 | 100 |
| Accounts receivable, net of allowances of $1,576 and $1,239, as of June 30, 2025 and December 31, 2024, respectively | 9,711 | 6,766 |
| Inventory | 1,068 | 995 |
| Prepaid expenses and other current assets | 1,841 | 1,365 |
| Total current assets | 46,192 | 49,351 |
| Property and equipment, net | 972 | 260 |
| Operating lease right-of-use assets | 2,144 | 1,644 |
| Other assets | 3,962 | 569 |
| Total assets | $ 53,270 | $ 51,824 |
| Liabilities, Convertible Preferred Stock, and Stockholders’ Deficit | ||
| Current liabilities: | ||
| Accounts payable | $ 2,581 | $ 2,412 |
| Accrued liabilities | 3,219 | 2,687 |
| Accrued compensation | 3,113 | 3,270 |
| Short-term operating lease liabilities | 571 | 449 |
| Total current liabilities | 9,484 | 8,818 |
| Long-term portion of term loan, net | 15,431 | 15,414 |
| Long-term operating lease liabilities | 1,705 | 1,317 |
| Warrant liabilities | 727 | 457 |
| Other long-term liabilities | 267 | 222 |
| Total liabilities | 27,614 | 26,228 |
| Commitments and contingencies (Note 9) | ||
| Series A convertible preferred stock, $0.00001 par value; 4,902,814 shares authorized, issued, and outstanding, and $13,767 liquidation preference as of June 30, 2025 and December 31, 2024 | 13,578 | 13,578 |
| Series B convertible preferred stock, $0.00001 par value; 4,393,481 shares authorized, 4,335,051 shares issued and outstanding, and $30,000 liquidation preference as of June 30, 2025 and December 31, 2024 | 29,801 | 29,801 |
| Series C convertible preferred stock, $0.00001 par value; 6,028,243 and 4,910,500 shares authorized, 6,007,866 and 4,890,123 shares issued and outstanding, and $64,500 and $52,500 liquidation preference as of June 30, 2025 and December 31, 2024, respectively | 65,350 | 52,847 |
| Stockholders’ deficit: | ||
| Common stock, $0.00001 par value; 23,679,694 and 21,835,801 shares authorized, 4,681,414 and 4,234,798 shares issued, and 4,603,756 and 4,139,219 shares outstanding as of June 30, 2025 and December 31, 2024, respectively | — | — |
| Additional paid-in capital | 593 | 541 |
| Accumulated deficit | (83,666) | (71,171) |
| Total stockholders’ deficit | (83,073) | (70,630) |
| Total liabilities, convertible preferred stock, and stockholders’ deficit | $ 53,270 | $ 51,824 |
