(Unaudited, in millions, except per share data, and Doctor counts)
Three Months EndedDecember 31,
Twelve Months EndedDecember 31,
2025
2024
Change
2025
2024
Change
Revenue
$61.2
$56.9
7.5%
$244.5
$229.8
6.4%
Gross Margin
$2.5
$7.7
(67.9%)
$33.7
$35.7
(5.6%)
Gross Margin percentage
4.0%
13.5%
(950 bps)
13.8%
15.5%
(170 bps)
Net Income (Loss)
($5.7)
($0.2)
(2,264.2%)
($0.4)
$4.4
(108.2%)
Diluted EPS
($2.31)
($0.13)
($2.18)
($0.18)
$2.42
($2.60)
Adjusted Gross Margin(a)
$11.4
$9.8
15.7%
$49.3
$44.0
11.9%
Adjusted Gross Margin Percentage(a)
18.6%
17.3%
130 bps
20.1%
19.2%
90 bps
Adjusted EBITDA(b)
$3.7
$3.8
(1.9%)
$22.0
$19.4
13.7%
Adjusted EBITDA margin(b)
6.1%
6.7%
(60 bps)
9.0%
8.4%
60 bps
Adjusted Diluted EPS(c)
$0.30
($ 0.02)
$0.32
$2.44
$3.17
($0.73)
Same Practice Revenue Growth
6.3%
(0.8%)
5.8%
1.6%
Practicing Affiliated Doctors
214
206
3.9%
214
206
3.9%
(a) See Non GAAP Reconciliation of Gross Margin to Adjusted Gross Margin below(b) See Non GAAP Reconciliation of Net Income (Loss) to Adjusted EBITDA below(c) See Non GAAP Reconciliation of Earnings (Loss) Per Share to Adjusted Earnings Per Share below
Executive Commentary, Pete Swenson, Chief Executive Officer and Chair of the Board of Directors"We are pleased to report a strong finish to a very successful year. We achieved record revenue and adjusted EBITDA in 2025 and successfully completed our initial public offering in December. In the fourth quarter we maintained our momentum, as quarterly revenue grew 7.5% versus prior year and our patient retention rate remained strong at 89.9%, demonstrating our commitment to quality, patient-centered care. In addition, we maintained strong same practice revenue growth throughout the year, including 6.3% in the fourth quarter."
"For 2026, our dedicated and talented doctors and team members have us well positioned to build on this performance and to continue our growth strategy. We anticipate a stable demand environment and we remain confident in our plans to deliver same practice growth. We continue to expect to complement our organic growth by adding affiliated practices and doctors that align with our mission, vision, and values."
2025 Business and Operating Highlights
Annual 2025 revenue grew 6.4% to $244.5 million, including 7.5% growth in the fourth quarter.
Patient visits increased to 719,295 across our affiliated dental practices.
Adjusted Gross Margin was $49.3 million, or 20.1% of revenue, an increase of 90 basis points from prior year.
Adjusted EBITDA was $22.0 million, or 9.0% of revenue, an increase of 60 basis points from prior year.
Annual operating cash flows were $17.6 million.
December's initial public offering (IPO) resulted in gross proceeds of $20.0 million, issuing 1,535,000 common shares at a price of $13.00 per share.
Three acquisitions were completed in 2025, including two acquisitions on December 31.
Financial Results, Fourth Quarter
Revenue of $61.2 million was $4.3 million above prior year comparable quarter due to increased patient visits, clinical hours, increased fee and reimbursement growth.
General practice revenue grew 6.2% to $44.7 million. Multi-specialty practice revenue grew 11.3% to $16.5 million.
Same practice revenue growth was 6.3% above prior year comparable quarter.
Cost of services were $58.7 million, an increase of $9.5 million above prior year comparable quarter. General and administrative costs were $10.3 million, an increase of $4.3 million above prior year comparable quarter. The primary driver of these increases was share-based compensation expense associated with our IPO.
Adjusted EBITDA was $3.7 million, approximately flat to the prior year comparable quarter.
Adjusted EBITDA Margin was 6.1% or 60 basis points lower than prior year comparable quarter.
Adjusted diluted earnings per share were $0.30 versus ($0.02) in the prior year comparable quarter.
Financial Results, Full Year 2025
Revenue was $244.5 million, or $14.7 million above prior year due to increased patient visits and fee and reimbursement growth.
General practice revenue grew 4.8% to $179.0 million. Multi-specialty practice revenue grew 11.0% to $65.5 million.
Same practice revenue growth was 5.8% above prior year.
Cost of services were $210.8 million, an increase of $16.7 million above prior year, driven by increased Salaries and Benefits aligned with revenue growth and share based compensation expense associated with our IPO.
General and administrative costs were $31.9 million, an increase of $6.4 million above prior year as the company recorded IPO share-based compensation expense, recognized one-time IPO costs, and investments to support public company readiness.
Adjusted EBITDA was $22.0 million and grew 13.7% over the prior year.
Adjusted EBITDA Margin was 9.0% or 60 basis points higher than prior year, driven by top-line revenue growth and increased operating leverage year-over-year.
Adjusted diluted earnings per share were $2.44 compared to $3.17 in the prior year due to the increase in shares associated with the initial public offering.
Affiliated Practice Updates
During the fourth quarter, we completed two acquisitions, including the Company's first practice in Phoenix, Arizona and another practice in Minnesota.
Subsequent to year-end, we completed one additional acquisition in Tucson, Arizona.
We opened a de novo multi-specialty practice in Rochester, Minnesota.
We supported 86 affiliated practices and 214 affiliated doctors and patient retention rate was 89.9% as of December 31, 2025.
Balance Sheet, Capital Structure, and Liquidity
Cash and cash equivalents were $25.2 million as of December 31, 2025, driven by the proceeds from our IPO.
Long-term debt was $10.1 million on December 31, 2025, a decrease of $1.9 million versus prior year. The company's $15 million line of credit was undrawn as of December 31, 2025.
Cash Flow Highlights
The Company generated $0.8 million in operating cash flow in the fourth quarter. For the year, operating cash flow was $17.6 million, an increase of $1.1 million over prior year.
Fourth quarter capital investments were $1.3 million. For the full-year, capital investments were $7.3 million, an increase of $1.2 million over prior year driven by expansion of existing practices and de novo growth.
Common Stock Information
Total shares outstanding at December 31, 2025 were 4.25 million shares, which includes 1.54 million shares issued in our IPO and 0.99 million restricted shares vesting upon the offering.
Weighted average diluted common shares outstanding were 2.49 million shares and 1.94 million for the fourth quarter and full year 2025, respectively.
Prior to the IPO, 3.36 million unvested restricted share awards were held by our affiliated doctors and management. Upon the completion of the offering, 30% of these existing awards, or 0.99 million shares, immediately vested and are included in our weighted average diluted shares. The remaining outstanding awards vest on continued employment through the end of 2028, or earlier if certain criteria are met. We expect the remaining 2.36 million restricted shares will vest over the next twelve quarters.
Full-Year 2026 Outlook
We are providing the following outlook for the full year ending December 31, 2026. This outlook excludes the impact of any future practice affiliations or acquisitions that have not yet closed. As a result, actual results may differ materially depending on the timing and number of future affiliations or acquisitions completed during the year.
Year Ending
Year Ended
Percent
December 31, 2026
December 31, 2025
Change
($ in millions)
(Outlook)
(Actual)
(At Midpoint)
Revenue
$254.0, $258.0
$244.5
4.7%
Adjusted EBITDA
$21.0, $23.0
$22.0
-
Adjusted EBITDA margin
8.3% - 8.9%
9.0%
Our outlook includes 3.5% to 5.0% same practice revenue growth and approximately $2 million recurring public company costs we expect to incur in 2026. The outlook assumes continued patient demand across general and specialty services, stable reimbursement trends across commercial and government payors, ongoing recruitment and retention initiatives, and contributions from recently acquired and affiliated practices and de novos.
Conference Call
As announced earlier, the Company will host a conference call to discuss these results on Thursday, February 26, 2026, at 8:30 a.m. Eastern Time (7:30 a.m. Central Time).
A live webcast of the call will be accessible by registering using the link below or through the Investor Relations section of the Company's website at https://investors.parkdentalpartners.com. A replay of the webcast will be available on the website for a limited time following the call.
About Park Dental Partners, Inc.
Park Dental Partners, Inc., and its subsidiaries (NASDAQ:PARK) is a dental resource organization that has put patients first since establishment of its general dentistry group in 1972. The Company provides comprehensive business support services, including clinical team members, administrative personnel, facilities, and equipment, to its affiliated general and multi-specialty dental practices. The Company currently affiliates with 214 doctors across 86 practice locations in three states. The Company's clinical support team consists of 990 hygienists, dental assistants, and patient care coordinators that support affiliated dentists in operating their practices. The mission of our affiliated dental practices since inception has been to ensure patients enjoy the benefits of a lifetime of good oral health. This mission continues to be the driving force behind our organization today.
Park Dental Partners is based in Roseville, Minnesota. For more information, please visit www.parkdentalpartners.com.
Basis of Consolidation
In accordance with generally accepted accounting principles in the United States, we consolidate the net assets and results of operations of the affiliated dental practices operating under long-term administrative resource agreements with us. As a result, references to our revenues, our expenses and similar items relating to our results of operations and net assets includes the revenues, expenses and similar items of our affiliated dental practices and all transactions between the affiliated dental practices and us, such as the service fees we charge, are eliminated in consolidation.
Forward Looking Statements
Certain statements in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the Company's financial condition, results of operations, plans, objectives, future performance and business. Forward-looking statements include those preceded by, followed by or that include the words "believes," "expects," "anticipates," "intends," "estimates," "plans," "may," "will," or similar expressions. These forward-looking statements involve risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements because of, among other things, potential risks and uncertainties, such as:
Regulatory and compliance risk, including state dental corporate practice of dentistry and fee-splitting restrictions, HIPAA and other privacy/cybersecurity obligations, and evolving healthcare and labor regulations;
Reimbursement risk, including risks related to payer mix, reimbursement rates, audit/recoupment activity, enrollment and collections timing, and dependence on significant third-party payors;
Our ability to identify, acquire, integrate and effectively support affiliated practices and to execute de novo expansion, and the risk of undiscovered liabilities in acquisitions;
Dependence on affiliated dental practices and their clinical performance; our ability to attract, hire and retain dentists, specialists and hygienists; and risks related to ownership transitions of affiliated entities;
Competition for patients and clinicians in our markets and the impact on patient volumes and staffing;
Macroeconomic conditions, inflation and interest rates, and our geographic concentration, particularly in the Minnesota area.
A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. We are under no obligation, and we expressly disclaim any obligation, to update or alter any forward-looking statements, whether because of new information, future events or otherwise.
Non-GAAP Financial Measures
This news release and the related conference call include presentation of Non-GAAP measures that include or exclude special items of a nonrecurring and/or nonoperational nature. Management believes that the Non-GAAP measures provide useful information to investors regarding the Company's results of operations and financial condition because they permit a more meaningful comparison and understanding of Park Dental Partners, Inc's operating performance for the current, past or future periods. Management uses these Non-GAAP measures to monitor and evaluate ongoing operating results and trends and to gain an understanding of the comparative operating performance of the Company.
Please note that the Company has not provided the most directly comparable GAAP financial measure, or a quantitative reconciliation thereto, for the Adjusted EBITDA forward-looking guidance for 2026 included in this press release in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. Providing the most directly comparable GAAP financial measure, or a quantitative reconciliation thereto, cannot be done without unreasonable effort due to the inherent uncertainty and difficulty in predicting certain non-cash, material and/or non-recurring expenses or benefits; legal settlements or other matters; and certain tax positions. The variability of these items could have an unpredictable, and potentially significant, impact on our future GAAP financial results.
See Supplemental non-GAAP financial tables below for a reconciliation of adjusted non-GAAP financial measures to GAAP.
Supplemental Financial Tables
PARK DENTAL PARTNERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except share and per share amounts)
Three Months Ended December 31,
Years Ended December 31,
2025
2024
2025
2024
REVENUE
$
61,208
$
56,923
$
244,494
$
229,794
COST OF SERVICES
Salaries and benefits
44,689
35,989
155,207
140,741
Dental supplies and Laboratory fees
4,368
4,102
17,202
17,093
Office occupancy
4,054
3,899
16,187
15,519
Other practice expenses
3,625
3,362
14,366
13,471
Depreciation
2,000
1,863
7,861
7,291
TOTAL COST OF SERVICES
58,736
49,215
210,823
194,115
GROSS MARGIN
2,472
7,708
33,671
35,679
General and administrative expenses
10,332
6,068
31,905
25,470
Depreciation and amortization
375
390
1,516
1,544
OPERATING INCOME (LOSS)
