Roseville, Minn.-based Park Dental Partners grew revenue and its affiliated doctor base in the third quarter, but higher salary costs weighed on margins and same-practice growth slowed, according to the company’s Nov. 12 earnings release for the third quarter of 2026.
Here are 10 things to know from the results:
- Revenue rose 6% to $64.9 million in the third quarter of 2026, up from $61.3 million a year earlier. For the first nine months of 2026, revenue rose 5.8% to $193.8 million. The company attributed the growth to reimbursement trends, acquisitions completed since the prior-year periods and growth in clinical hours.
- Same-practice revenue growth slowed to 3.2% in the third quarter from 9.9% a year earlier. For the first nine months of 2026, it was 3%, compared with 5.8% in the same period of 2025.
- Acquisitions contributed about $1.2 million in revenue in the third quarter and $3.7 million for the first nine months. The company completed one general practice acquisition in Arizona in the quarter, announced Sept. 23, 2026, which it said was not material to results. On Nov. 6, 2026, it completed the acquisition of Village Family DSO, which is affiliated with Village Family Dental, a multispecialty group based in Fayetteville, N.C. The deal extends the company’s network into a fourth state, and its results will be included starting in the fourth quarter.
- As of Sept. 30, 2026, the company supported 88 affiliated practices and 225 affiliated doctors, up 3.2% from 218 a year earlier. Patient visits rose to 180,955 in the third quarter from 179,111, and the patient retention rate was 90.2%, compared with 89.8% a year earlier.
- Gross margin fell 13.3% to $8.2 million, and gross margin as a share of revenue dropped to 12.6% from 15.4%. Salaries and benefits expenses rose to $41.9 million from $37.8 million, which the company said included doctor share-based compensation tied to its public company transition.
- Adjusted EBITDA fell 6.2% to $5.0 million, and the adjusted EBITDA margin was 7.7%, down from 8.7%.
- Net income rose 36.1% to $1.7 million, but the company posted an operating loss of $114,000, compared with operating income of $1.8 million a year earlier.
- For the first nine months of 2026, net income fell 50.6% to $2.7 million from $5.4 million, and diluted earnings per share were $0.43, compared with $3.06. Share-based compensation was $9.1 million in the nine-month period.
- Cash and cash equivalents were $23.2 million as of Sept. 30, 2026, compared with $25.2 million at the end of 2025. Total debt was about $10.6 million, and the company’s $15 million line of credit was undrawn. Operating cash flow for the first nine months was $12.0 million, down $4.8 million from a year earlier because of the timing of working capital, and capital investments were $7.6 million.
- The company expects full-year 2026 revenue of $262 million to $265 million and adjusted EBITDA of $21.2 million to $22.2 million. Park Dental Partners’ full-year 2025 revenue was $244.5 million.
