MINNEAPOLIS, Feb. 25, 2026 (GLOBE NEWSWIRE) -- Park Dental Partners, Inc. (NASDAQ: PARK) and affiliated dental practices ("Park Dental Partners," "we," "our," "us," or the "Company") today reported its fourth-quarter and full-year financial results for 2025. Summary financial results are listed below and in the accompanying supplemental financial tables.
(Unaudited, in millions, except per share data, and
Doctor counts)
Three Months Ended Twelve Months Ended
December 31, December 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) (8,235) 1,250 250 8,665
--------- --------- --------- ---------
INTEREST EXPENSE -
NET (240) (360) (1,170) (1,449)
--------- --------- --------- ---------
INCOME (LOSS) BEFORE
TAX (8,475) 890 (920) 7,216
PROVISION/(BENEFIT)
FOR INCOME TAX (2,730) 1,133 (562) 2,853
NET INCOME (LOSS) $ (5,745) $ (243) $ (358) $ 4,363
EARNINGS (LOSS) PER
SHARE:
Basic $ (2.31) $ (0.13) $ (0.18) $ 2.42
========= ========= ========= =========
Diluted $ (2.31) $ (0.13) $ (0.18) $ 2.42
========= ========= ========= =========
Basic
weighted-average
number of common
shares outstanding 2,487,382 1,796,399 1,944,469 1,806,449
========= ========= ========= =========
Diluted
weighted-average
number of common
shares outstanding 2,487,382 1,796,399 1,944,469 1,806,449
========= ========= ========= =========
PARK DENTAL PARTNERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)
(in thousands)
At December 31, At December 31,
----------------- -------------------
2025 2024
----------------- -------------------
ASSETS
Cash and cash equivalents $ 25,185 $ 2,672
Accounts receivable -- net of
allowance 6,991 7,401
Other current assets 5,726 2,506
Total current assets 37,902 12,579
OTHER ASSETS:
Property and equipment and
Lease assets 73,828 74,459
Goodwill and Intangible
assets, nets 28,360 27,627
Other assets 38,093 34,204
Total other assets 140,281 136,290
TOTAL ASSETS $ 178,183 $ 148,869
============= ============
LIABILITIES AND EQUITY(DEFICIT)
Accounts payable and other
accrued liabilities $ 6,291 $ 4,663
Payroll, benefits and short
term deferred compensation 16,716 13,930
Current portion of debt and
lease liabilities 8,606 8,225
Deferred Revenue and other
current liabilities 4,120 4,385
Total current liabilities 35,733 31,203
LONG-TERM LIABILITIES:
Deferred compensation 68,417 67,554
Long-term debt and lease
liabilities 51,744 53,933
Other long-term liabilities 486 478
------------- ------------
Total long-term liabilities 120,647 121,965
------------- ------------
TOTAL LIABILITIES $ 156,380 $ 153,168
------------- ------------
Total shareholders' equity
(deficit) $ 21,803 $ (4,299)
------------- ------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY (DEFICIT) $ 178,183 $ 148,869
============= ============
PARK DENTAL PARTNERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(in thousands)
For the Three
Months Ended For the Years Ended
December 31, December 31,
------------------ ---------------------
2025 2024 2025 2024
-------- -------- --------- ----------
CASH FLOWS FROM
OPERATING
ACTIVITIES:
Net income
(loss) $(5,745) $ (243) $ (358) $ 4,363
Adjustments to
reconcile net
income/(loss)
to net cash
flows from
operating
activities:
Depreciation
and
amortization 2,375 2,252 9,377 8,835
Deferred
income taxes (691) 779 (691) 779
Change in cash
surrender
value of life
insurance (19) 334 (1,608) (1,315)
Noncash lease
and Loss on
disposal of
equipment 30 (285) 54 (157)
Share based
compensation 8,811 -- 8,811 529
Changes in
operating
assets and
liabilities (3,916) 1,270 2,045 3,435
Net cash
flows from
operating
activities 845 4,107 17,630 16,469
NET CASH FLOWS
USED IN INVESTING
ACTIVITIES:
Purchases of
property and
equipment $(1,336) $(2,018) $ (7,341) $(6,156)
Proceeds from
sale of
property and
equipment -- 1 -- 1
Life insurance
premiums paid (303) (271) (1,590) (606)
Payments for
purchases of
dental
practices (913) -- (1,717) (910)
------ ------ ------- ------
Net cash
flows used
in
investing
activities (2,552) (2,288) (10,648) (7,671)
CASH FLOWS FROM
(USED IN)
FINANCING
ACTIVITIES:
Dental practice
purchase
installment
payments $ (80) $ (79) $ (648) $ (844)
Net change in
checks issued
in excess of
cash balances 733 1,503 490 (143)
Net proceeds
(payments) on
debt and
capital leases (490) (485) (1,960) 1,199
Proceeds from
initial public
offering, net
of offering
costs 18,353 -- 18,353 --
Cash paid for
Dividends and
Share
Repurchase -- (3,506) (704) (6,896)
------ ------
Net cash
flows from
(used in)
financing
activities 18,516 (2,567) 15,531 (6,684)
------ ------ ------- ------
NET CHANGE IN CASH
AND CASH
EQUIVALENTS 16,809 (748) 22,513 2,114
CASH AND CASH
EQUIVALENTS --
Beginning of
period 8,376 3,420 2,672 558
------ ------ ------- ------
CASH AND CASH
EQUIVALENTS - End
of year $25,185 $ 2,672 $ 25,185 $ 2,672
PARK DENTAL PARTNERS, INC. AND SUBSIDIARIES
RECONCILIATION OF GROSS MARGIN TO ADJUSTED GROSS MARGIN
(unaudited)
(in thousands)
Three Months Ended December 31, Years Ended December 31,
------------------------------------ ------------------------------------
2025 2024 2025 2024
----------------- ----------------- ----------------- -----------------
GROSS MARGIN $ 2,472 4.0% $7,708 13.5% $33,671 13.8% $35,679 15.5%
Addback:
Share based
compensation 6,680 10.9% - 0.0% 6,680 2.7% - 0.0%
Restructuring
costs(1) 30 0.0% (1) 0.0% 140 0.1% 89 0.0%
Deferred
compensation 203 0.3% 267 0.5% 901 0.4% 949 0.4%
Depreciation 2,000 3.3% 1,863 3.3% 7,861 3.2% 7,291 3.2%
ADJUSTED GROSS
MARGIN $11,385 $9,837 $49,253 $44,008
====== ===== ====== ======
ADJUSTED GROSS
MARGIN
PERCENTAGE 18.6% 17.3% 20.1% 19.2%
---- ---- ---- ----
(1) Restructuring costs primarily consist of expenses
incurred in connection with the Company's initial
public offering completed on December 4, 2025.
PARK DENTAL PARTNERS, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
(unaudited)
(in thousands)
For the Three Months Ended For the Years Ended
December 31, December 31,
------------------------------------- ------------------------------------
2025 2024 2025 2024
-------- ------- -------- -------
NET INCOME (LOSS) $(5,745) (9.4%) $ (243) (0.4%) $ (358) (0.1%) $ 4,363 1.9%
Addback:
Provision/(Benefit)
for income tax (2,730) (4.5%) 1,133 2.0% (562) (0.2%) 2,853 1.2%
Interest expense, net 240 0.4% 360 0.6% 1,170 0.5% 1,449 0.6%
Depreciation and
amortization 2,375 3.9% 2,253 4.0% 9,377 3.8% 8,835 3.8%
EBITDA $(5,860) (9.6%) $3,503 6.2% $ 9,627 3.9% $17,500 7.6%
------ ----- ------ ------
Adjustments:
Share based
compensation 8,811 14.4% - 0.0% 8,811 3.6% 529 0.2%
Restructuring
costs(1) 578 0.9% 33 0.1% 2,709 1.1% 416 0.2%
Deferred compensation 203 0.3% 267 0.5% 901 0.4% 949 0.4%
ADJUSTED EBITDA $ 3,732 6.1% $3,803 6.7% $22,048 9.0% $19,394 8.4%
====== ===== ====== ======
(1) Restructuring costs primarily consist of expenses
incurred in connection with the Company's initial
public offering completed on December 4, 2025.
PARK DENTAL PARTNERS, INC. AND SUBSIDIARIES
RECONCILIATION OF EARNINGS (LOSS) PER SHARE TO ADJUSTED
EARNINGS PER SHARE (unaudited)
(in thousands, except share and per share amounts)
For the Three Months
Ended For the Years Ended
December 31, December 31,
------------------------ --------------------------
2025 2024 2025 2024
----------- ----------- ----------- -------------
EARNINGS (LOSS)
ATTRIBUTABLE TO
COMMON
STOCKHOLDERS: $ (5,745) $ (243) $ (358) $ 4,363
Adjustments:
Share based
compensation 8,811 - 8,811 529
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