Park Dental Partners — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue increased 6.0% year-over-year to $64.9 million for the three months ended September 30, 2026, compared to $61.3 million in the prior-year period; for the nine months ended September 30, 2026, revenue rose 5.8% to $193.8 million from $183.3 million.
• Gross margin was $8.2 million (12.6% margin) for the quarter, down from $9.4 million (15.4% margin) in the prior-year period; year-to-date gross margin was $24.1 million (12.4%) versus $31.2 million (17.0%) in the prior year.
• Net income was $1.7 million ($0.27 diluted EPS) for the quarter, up 36.1% from $1.3 million ($0.72 diluted EPS) in the prior year; year-to-date net income was $2.7 million ($0.43 diluted EPS), a 50.6% decrease from $5.4 million ($3.06 diluted EPS).
• Adjusted Gross Margin was $12.1 million (18.6% margin) for the quarter, up 1.6% from $11.9 million (19.4% margin) in the prior year; year-to-date Adjusted Gross Margin was $39.0 million (20.1%) versus $37.9 million (20.7%).
• Adjusted EBITDA was $5.0 million (7.7% margin) for the quarter, down 6.2% from $5.3 million (8.7% margin) in the prior year; year-to-date Adjusted EBITDA was $17.1 million (8.8%) versus $18.3 million (10.0%).
• Adjusted Diluted EPS was $0.57 for the quarter, down from $1.19 in the prior year; year-to-date Adjusted Diluted EPS was $1.68 versus $4.21.
• Operating cash flow for the first nine months of 2026 was $12.0 million, a decrease of $4.8 million compared to the prior year, driven by working capital timing.
• Capital investments year-to-date were $7.6 million.

Guidance and Future Outlook:

• Full-year 2026 revenue outlook is $262.0 million to $265.0 million, compared to $244.5 million in 2025 (5.5% growth).
• Full-year 2026 Adjusted EBITDA outlook is $21.2 million to $22.2 million, compared to $22.0 million in 2025.
• Full-year 2026 Adjusted EBITDA margin outlook is 8.1% to 8.4%, compared to 9.0% in 2025.
• The outlook incorporates expected contributions from the Village Family DSO acquisition closing on November 6, 2026, increased clinical capacity investments (including hygienist hiring), and the impact of a third-quarter cybersecurity event.
• The company expects to provide full-year 2027 guidance with the fourth-quarter and full-year 2026 results.

Business Segments and Product Lines:

• The company supported 88 affiliated practices and 225 affiliated doctors as of September 30, 2026, representing a 3.2% increase in doctors from the prior year.
• Same practice revenue growth was 3.2% for the quarter (down from 9.9% in the prior year) and 3.0% year-to-date (down from 5.8%).
• Patient retention rate was 90.2% for the quarter and year-to-date, compared to 89.8% in the prior year.
• Patient visits totaled 180,955 in the third quarter and 545,051 year-to-date.
• Revenue from acquisitions completed in the past 12 months contributed approximately $1.2 million in the quarter and $3.7 million year-to-date.
• One general practice acquisition was completed in Arizona during the third quarter; its financial impact was not material for the quarter.
• The Village Family DSO acquisition, completed November 6, 2026, extends the network into a fourth state and will be included in financial results beginning in the fourth quarter of 2026.

Market and Competitive Landscape:

• Revenue growth was driven by reimbursement trends, acquisitions, and growth in clinical hours.
• Gross profit was impacted by higher salaries and benefits expenses, including doctor share-based compensation associated with the public company transition.
• The company monitors patient demand, industry staffing trends, and competition for patients and clinicians.

Risks and Challenges:

• Risks include regulatory and compliance issues (dental corporate practice of dentistry, fee-splitting, HIPAA, labor regulations).
• Reimbursement risks related to payer mix, rates, audits, and dependence on third-party payors.
• Risks associated with identifying, acquiring, and integrating affiliated practices, including potential undiscovered liabilities.
• Dependence on affiliated practices and clinical performance, and challenges in attracting, hiring, and retaining dentists and hygienists.
• Competition for patients and clinicians impacting volumes and staffing.
• Macroeconomic conditions, inflation, interest rates, and geographic concentration.
• A cybersecurity event occurred during the third quarter, impacting the full-year outlook.

Management Commentary and Tone:

• CEO Pete Swenson stated that third-quarter revenue increased 6%, supported by same-practice growth, an expanding doctor base, and acquisitions.
• Management noted meaningful progress in adding clinical capacity and strengthening the platform, with a focus on converting capacity into improved productivity and earnings.
• The completion of the Village Family transaction is described as an important step extending the network into a fourth state.
• Management emphasized a focus on disciplined integration and supporting affiliated practices.

Other Key Points:

• Cash and cash equivalents were $23.2 million as of September 30, 2026.
• Total debt outstanding was approximately $10.6 million as of September 30, 2026; the $15 million line of credit was undrawn.
• Total shares outstanding were 5.1 million as of the end of the quarter.
• The company hosts a conference call on November 13, 2026, at 8:30 a.m. Eastern Time.
• Share-based compensation was $2.078 million for the quarter and $9.137 million year-to-date.
• Acquisition and integration costs were $484,000 for the quarter and $831,000 year-to-date.
• Restructuring costs were $32,000 for the quarter and $69,000 year-to-date.
• Deferred compensation costs were $72,000 for the quarter and $664,000 year-to-date.