Park Dental Partners Announces First Quarter 2026 Results

MINNEAPOLIS, May 13, 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 first-quarter financial results for 2026.   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
March 31,
  2026
   2025 Change
 Revenue$62.7
  $59.0
 6.2%
 Gross Margin$6.4
  $9.9
 (35.3%)
 Gross Margin percentage 10.2%   16.7% (650 bps) Net Income (Loss)($0.4)
  $1.6
 (124.9%)
 Diluted EPS($0.09)
  $0.88
 ($0.97)
          Adjusted Gross Margin(a)$12.2
  $11.9
 2.6%
 Adjusted Gross Margin Percentage(a) 19.5%   20.2% (70 bps) Adjusted EBITDA(b)$4.7
  $5.5
 (13.2%)
 Adjusted EBITDA margin(b) 7.6%   9.3% (170 bps) Adjusted Diluted EPS(c)$0.44
  $1.14
 ($0.70)
       Same Practice Revenue Growth 4.1%   1.2% 290 bps
 Practicing Affiliated Doctors 221   203 8.9% 

      
(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 delivered a solid start to 2026, with revenue increasing 6.2% year over year, driven by strong same practice performance and continued patient demand. Results were consistent with our expectations and reflect continued execution against our operating plan. We continue to invest in recruiting, staffing, and clinical capacity to support long-term growth.

With strong liquidity and a flexible balance sheet, we remain well positioned to execute on our growth strategy, including expanding current practices and adding new practices through disciplined acquisitions and de novo expansion.”

Financial Results – First Quarter 2026

• Revenue increased 6.2% over the prior year’s comparable quarter to $62.7 million, due to increased patient visits and growth in clinical hours, the impact of acquisitions and reimbursement growth. Same practice revenue growth was 4.1%. Revenue from acquisitions in the past 12 months contributed approximately $0.8 million in the quarter.
• Total General Practice revenue grew 6.4% over the prior year’s comparable quarter to $46.1 million. Total Multi-Specialty Practice revenue grew 5.7% to $16.6 million.
• Cost of services was $56.3 million, an increase of $7.1 million above the prior year’s comparable quarter, driven primarily by share-based compensation recorded in the quarter and growth in doctors and team members.
• General and administrative costs were $7.8 million, an increase of $0.9 million above the prior year’s comparable quarter. The primary driver of these increases was share-based compensation, acquisition-related costs, and public company costs, net of lower IPO preparation costs related to our 2025 offering.
• Net loss was $(0.4) million, compared to net income of $1.6 million in the prior year comparable quarter, primarily driven by increased salaries and benefits, and share-based compensation, partially offset by revenue growth, tax benefits on share-based compensation, and operating leverage.
• Adjusted EBITDA was $4.7 million, or 7.6% of revenue, compared to $5.5 million, or 9.3% of revenue in the prior year comparable quarter.
• Adjusted diluted earnings per share were $0.44 versus $1.14 in the prior year’s comparable quarter, due primarily to the increase in shares issued and vested during the IPO.
  

Affiliated Practice Updates

• As of March 31, 2026, we supported 86 affiliated practices and 221 affiliated doctors.
• First quarter patient retention rate was 90.1%.
• Patient visits increased to 178,527 across our affiliated dental practices.
• During the first quarter our affiliated dental practices completed one general practice acquisition in Tucson, Arizona, as previously announced on January 23, 2026. The acquired practices’ impact on revenues and net earnings was not material for the quarter.

Balance Sheet, Liquidity, and Cash Flow

• Cash and cash equivalents were $24.4 million as of March 31, 2026.
• Total debt outstanding was approximately $11.5 million as of March 31, 2026, and our $15 million line of credit was undrawn at quarter end.
• Total shares outstanding were 4.5 million shares as of the end of the quarter.
• We generated $5.0 million in operating cash flow in the first quarter, a decrease of $0.8 million compared to the prior year comparable quarter due primarily to changes in working capital.
• First quarter capital investments were $2.3 million.
  

Full-Year 2026 Outlook

First quarter results were consistent with our expectations, and we are maintaining our fiscal 2026 outlook range. Our 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, de novo practice openings, 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 margin8.3% - 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. We continue to monitor patient demand and labor market trends that could impact our outlook.

Conference Call

As announced on April 24, 2026, the Company will host a conference call to discuss these results tomorrow morning, Thursday, May 14, 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 the 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 has 221 affiliated doctors across 86 practice locations in three states. The Company’s clinical support team consists of approximately 990 hygienists, dental assistants, and patient care coordinators that support affiliated doctors 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 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 markets we operate.

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 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except share and per share amounts)                   Three Months Ended March 31,   2026     2025  REVENUE    $62,695  $59,037  COST OF SERVICES       Salaries and benefits  41,895   35,637  Dental supplies and Laboratory fees  4,338   4,239  Office occupancy  4,285   4,004  Other practice expenses  3,834   3,405  Depreciation  1,963   1,896  TOTAL COST OF SERVICES  56,315   49,181  GROSS MARGIN  6,380   9,856  General and administrative expenses  7,840   6,928  Depreciation and amortization  420   378  OPERATING INCOME (LOSS)  (1,880)  2,550  INTEREST EXPENSE - NET  (121)  (337) INCOME (LOSS) BEFORE TAX  (2,001)  2,213  PROVISION/(BENEFIT) FOR INCOME TAX  (1,611)  646  NET INCOME (LOSS) $(390) $1,566  EARNINGS (LOSS) PER SHARE:       Basic $(0.09) $0.88  Diluted $(0.09) $0.88  Basic weighted-average number of common shares outstanding  4,383,073   1,783,352  Diluted weighted-average number of common shares outstanding  4,383,073   1,783,352          

PARK DENTAL PARTNERS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (unaudited) (in thousands)              At March 31,     At December 31,    2026 2025 ASSETS         Cash and cash equivalents $24,372 $25,185 Accounts receivable – net of allowance  6,819  6,991 Other current assets  6,531  5,726 Total current assets  37,722  37,902 OTHER ASSETS:         Property and equipment and lease assets  73,945  73,828 Goodwill and Intangible assets, nets  29,793  28,360 Other assets  38,397  38,093 Total other assets  142,135  140,281 TOTAL ASSETS $179,857 $178,183 LIABILITIES AND DEFICIT         Accounts payable and other accrued liabilities $6,682 $6,291 Payroll, benefits and short term deferred compensation  16,802  16,716 Current portion of debt and lease liabilities  8,730  8,606 Deferred Revenue and other current liabilities  3,084  4,120 Total current liabilities  35,298  35,733 LONG-TERM LIABILITIES:         Deferred compensation  67,569  68,417 Long-term debt and lease liabilities  51,016  51,744 Other long-term liabilities  537  486 Total long-term liabilities  119,122  120,647 TOTAL LIABILITIES $154,420 $156,380 Total shareholders’ equity $25,437 $21,803 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $179,857 $178,183         

PARK DENTAL PARTNERS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)(in thousands)         For the Three Months Ended   March 31,      2026     2025 CASH FLOWS FROM OPERATING ACTIVITIES:        Net income (loss) $(390) $1,566 Adjustments to reconcile net income (loss) to net cash flows from operating activities:      Depreciation and amortization  2,383   2,274 Deferred income taxes  (470)  — Change in cash surrender value of life insurance  440   335 Noncash lease and loss on disposal of equipment  31   (15)Share based compensation  4,024   — Changes in operating assets and liabilities  (992)  1,699 Net cash flows from operating activities  5,026   5,859 NET CASH FLOWS USED IN INVESTING ACTIVITIES:        Purchases of property and equipment $(2,305) $(2,420)Life insurance premiums paid  (273)  (664)Payments for purchases of dental practices  (1,595)  — Issuance of notes to related parties  (600)  — Net cash flows used in investing activities  (4,773)  (3,084)CASH FLOWS USED IN FINANCING ACTIVITIES:        Dental practice purchase installment payments $(8) $(8)Net change in checks issued in excess of cash balances  (573)  (1,328)Net proceeds (payments) on debt and capital leases  (485)  (489)Cash paid for Share Repurchase  —   (154)Net cash flows used in financing activities  (1,066)  (1,979)NET CHANGE IN CASH AND CASH EQUIVALENTS  (813)  796 CASH AND CASH EQUIVALENTS – Beginning of year  25,185   2,672 CASH AND CASH EQUIVALENTS - End of year $24,372  $3,468        

PARK DENTAL PARTNERS, INC. AND SUBSIDIARIES RECONCILIATION OF GROSS MARGIN TO ADJUSTED GROSS MARGIN (unaudited) (in thousands)                              Three Months Ended March 31,   2026  2025  GROSS MARGIN $6,380 10.2% $9,856 16.7% Addback:           Share based compensation  3,665 5.8%  - 0.0% Restructuring costs1  37 0.1%  63 0.1% Deferred compensation  160 0.3%  85 0.1% Depreciation  1,963 3.1%  1,896 3.2% ADJUSTED GROSS MARGIN $12,205   $11,900   ADJUSTED GROSS MARGIN PERCENTAGE    19.5%    20.2%                                                 1 Restructuring costs primarily consist of expenses incurred in connection with the Company’s initial public offering.                

PARK DENTAL PARTNERS, INC. AND SUBSIDIARIESRECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (unaudited)(in thousands)             For the Three Months Ended   March 31,      2026       2025  NET INCOME (LOSS) $(390) (0.6%) $1,566 2.7%Addback:          Provision/(Benefit) for income tax  (1,611) (2.6%)  646 1.1%Interest expense, net  121  0.2%  337 0.6%Depreciation and amortization  2,383  3.8%  2,274 3.9%EBITDA $503  0.8% $4,823 8.2%Adjustments:          Share based compensation  4,024  6.4%  - 0.0%Restructuring costs1  58  0.1%  557 0.9%Deferred compensation  160  0.3%  85 0.1%ADJUSTED EBITDA $4,745  7.6% $5,465 9.3%                                            1 Restructuring costs primarily consist of expenses incurred in connection with the Company’s initial public offering.             

PARK DENTAL PARTNERS, INC. AND SUBSIDIARIESRECONCILIATION OF EARNINGS (LOSS) PER SHARE TO ADJUSTED EARNINGS PER SHARE (unaudited)(in thousands, except share and per share amounts)         For the Three Months Ended   March 31,      2026     2025 EARNINGS (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS: $(390) $1,566 Adjustments:      Share based compensation  4,024   - Restructuring costs  58   557 Deferred compensation  160   85 Income tax effect of the Adjustments1  (1,188)  (180)ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $2,664  $2,028               Adjusted Weighted Average Diluted Shares - Reconciliation      WEIGHTED-AVERAGE SHARES USED IN COMPUTING GAAP NET LOSS PER SHARE, DILUTED  4,383,073   1,783,352 ADJUSTED WEIGHTED AVERAGE DILUTED SHARES USED IN COMPUTING ADJUSTED EARNINGS PER SHARE, DILUTED2  6,059,839   1,783,352        ADJUSTED DILUTED EARNINGS PER SHARE: $0.44  $1.14                       1 Income tax effect is based on an estimated long-term annual effective tax rate of 28% tax rate for the three months ended March 31, 2026 and March 31, 2025. The Company's estimated long-term annual effective tax rate excludes certain non-cash items such as share based compensation arrangements, and is used in order to provide consistency accross periods.2 Includes an additional 1,584,666 of weighted average dilutive shares and 92,100 of weighted average dilutive warrants for the three months ended March 31, 2026, that are excluded from a GAAP perspective due to the Company's net loss in that reporting period.       

PARK DENTAL PARTNERS, INC. AND SUBSIDIARIESCONSOLIDATED OPERATING METRICS (unaudited)   For the Three Months Ended   March 31,     2026
    2025
      Patient Visits1 178,527
  175,940
Same Practice Revenue Growth2 4.1%
  1.2%
Patient Retention Rate3 90.1%
  89.2%
Doctor Count4 221
  203
      

1 A patient visit is counted when service is provided to a patient at one of our affiliated dental general dentistry practices. Measuring the year-over-year change in patient visits helps us to evaluate how the affiliated dental practices are performing. It also helps with evaluating demand for services which influences decision-making relating to matters such as appropriate staffing levels and recruiting needs. In addition, it influences decision-making processes relating to our marketing, sales and advertising strategies and helps us with evaluating the effectiveness of those strategies. Further, with respect to continuing care patient count, it allows us to evaluate the ability of affiliated dentists to encourage patients to complete their diagnosed dental treatment plans. 2 Same practice revenues represent total revenues for same dental practice locations that have been operating for at least 13 full months prior to the end of a given reporting period and which have not been closed, or sold during such period. Measuring the year-over-year change in same practice revenues allows us to evaluate how affiliated dental practices are performing. We believe various factors affect comparable practice revenues, including patient demand for dental services, economic trends, dentist and hygienist staffing levels, availability of dentists and hygienists, pricing, competition, visibility and accessibility of the dental practices, quality of the tenants surrounding the dental practices, clinical hours and the level of patient service provided inside and outside of the dental practices. 3 Patient retention rate is calculated by counting patients that remain active at the beginning and end of a twelve-month period. Active patients are defined as general dentistry patients having been seen by our affiliated dental practices within the past 36 months, or last 18 months for patients under the age of 18. Patients who have not been seen by our affiliated dental practices within these time periods are removed from our active patient lists. This methodology is aligned with ADA clinical procedure codes, and is consistent with treatment protocols for new patients, before being considered an active patient again. Measuring the year-over-year and quarter-over-quarter change in patient retention allows us to evaluate the recurring nature of patient visits at the dental practices and affiliated dentists which influences decision-making around matters such as appropriate levels of staffing, recruiting, advertising and facility expansion opportunities. 4 Dentists operating in one of our affiliated dental practices are included in this calculation, which includes both full and part-time dentists. Measuring the year-over-year and quarter-over- quarter change in dentist count allows us to evaluate the production capacity of affiliated dental practices. It also influences decision-making relating to matters such as appropriate staffing levels and recruiting needs.