Cedar Ridge Dental Partners — Q2 2026 Portfolio Performance Briefing

Prepared for: Executive Leadership Team
Period: April 1 – June 30, 2026 (Q2 2026)
Scope: All 12 practices — financials, production/patient analytics, staffing & time records

Bottom Line Up Front

Portfolio-wide, Cedar Ridge produced $6.90M in gross production and $906K in EBITDA in Q2 2026, an 13.1% EBITDA margin — in line with historical performance and driven by strong results at 8 of 12 practices. But that average conceals two serious, practice-specific problems that need attention now, and one situation that looks alarming on paper but is not:

1. Stonebridge Dental (CR-07) had a real crisis — production collapsed 55% year-over-year and the practice ran a Q2 EBITDA loss of -$6.2K, driven almost entirely by the sole full-time dentist being out on extended leave for two of the three months. This is the single most urgent item in this briefing.
2. Pinecrest Dental (CR-12) has a chronic collections and patient-engagement problem it brought into the group at acquisition — 34% of its A/R is now over 90 days past due (vs. ~14% portfolio average), and case acceptance is the lowest in the portfolio.
3. Harborview Dental (CR-04) is running a loss (-25% EBITDA margin), but this is a de novo practice in its fifth month of operation, ramping up on a normal trajectory. It needs a different kind of attention — patience and ramp support, not remediation.

Below is the detail behind each, and what we recommend doing about it.

Portfolio Scorecard — Q2 2026

Eight practices are performing well and broadly consistent with prior periods, led by Cedar Park (22.4% margin, +6.8% YoY growth — the portfolio's best performer on every dimension) and Riverbend/Lakeview in the high-teens. The rest of this briefing focuses on the four practices below the line.

1. Stonebridge Dental (CR-07) — Critical, Immediate Action Required

What happened: Stonebridge was a stable, solidly-performing practice through Q1 2026 — averaging ~$203K/month in production and ~$31K/month in EBITDA, consistent with all of 2025. In Q2, production fell to $95.6K (April), then $63.4K (May) — a near-total collapse — before partially recovering to $119.6K in June. Full-quarter production of $278.6K is 55% below the same quarter last year and roughly $331K below the practice's own Q1 run-rate. EBITDA swung from a projected ~$94K for the quarter to an actual -$6.2K — a ~$100K swing.

Root cause — this is a staffing/capacity story, not a demand story: Time records show Dr. Ana Solano, the practice's only full-time dentist, worked just 52 hours in April and 8.4 hours in May (168 of 168 scheduled hours logged as PTO — she was essentially fully out that month), then 40 hours in June as a partial return. A locum, Dr. Felix Bram, was brought on at only 0.6 FTE (~100 hrs/month) starting in April — covering roughly half of the lost capacity at best. Hygiene and support staff hours were normal throughout the quarter; the entire shortfall traces to lost doctor chairtime. Chair utilization (60.9%) and visits-per-operatory (29.6/month, half the portfolio average of ~65) confirm a capacity problem, not a soft market — the practice simply didn't have enough doctor hours to see patients. A/R over 90 days also jumped from $7.3K (May) to $16.3K (June) as billing and collections follow-up likely slipped during the disruption.

Recommendation: - Confirm Dr. Solano's return timeline now and staff the locum (or a second locum) at full coverage until she is back to full FTE — 0.6 FTE is not enough to hold the schedule together, and June's numbers (still down 40% YoY) show the gap persists. - Protect the patient base: run a targeted reactivation/recall campaign for patients whose hygiene and treatment appointments were cancelled or delayed during April–May before they attrite to competitors. - Clean up A/R: assign dedicated collections follow-up on the >90-day bucket that built up during the disruption before it ages further. - Model the recovery: if Stonebridge returns to its Q1 run-rate, that's roughly $200K/quarter and $30K/month in EBITDA restored — worth tracking as a specific KPI monthly through Q3.

2. Pinecrest Dental (CR-12) — Chronic Structural Problem, Not a Q2 Event

What happened: Pinecrest joined the group's reporting in January 2026 (recent acquisition) and has run thin, roughly flat margins every month since — 2.4% for the quarter versus a 13.1% portfolio average, despite being the group's third-largest practice by production ($616K in Q2). This is not a one-quarter dip; it has looked the same every month since it came under Cedar Ridge management.

Root cause — two distinct issues, both structural: - Collections: 34.0% of Pinecrest's A/R is over 90 days past due — more than double the portfolio average (~15%) — and the absolute dollar amount, $82.6K, is the largest of any practice in the group, despite Pinecrest being mid-pack in size. This balance has grown every single month since January ($67.6K → $71.0K → $78.1K → $82.0K → $75.5K → $82.6K) with no sign of being worked down. - Patient engagement/case acceptance: Pinecrest has the portfolio's lowest case acceptance rate (30.2% vs. 39.1% average) and highest cancellation (17.3% vs. 10.3%) and no-show (11.9% vs. 6.8%) rates — again, consistently across every month since acquisition, not a Q2 anomaly. At the portfolio-average acceptance rate, Pinecrest's own $1.28M in treatment plans presented this quarter would have converted to roughly $114K more in accepted treatment than it actually did. - Overtime hours at Pinecrest also run well above every other practice (60–95 hrs/month vs. 30–65 elsewhere), suggesting scheduling and staffing efficiency issues layered on top.

Recommendation: - Treat this as a post-acquisition integration gap, not a market or seasonal issue — the legacy front-office/billing processes and patient-engagement practices from before the acquisition appear not to have been converted to Cedar Ridge standards. - Deploy a dedicated A/R recovery push: at minimum, get a collections specialist or the regional RCM team engaged directly on the >90-day bucket; $82.6K sitting stale is real cash the group is not collecting. - Audit front-desk scheduling and treatment-presentation practices at Pinecrest specifically — the case-acceptance and no-show gaps point to how treatment plans are being presented and appointments confirmed, which is coachable and typically improves within 1–2 quarters with the right playbook. - Set a 90-day integration checkpoint with clear targets (case acceptance to 35%+, A/R>90 under 20%) so the executive team can see whether this is closing or not by Q4.

3. Harborview Dental (CR-04) — De Novo Ramp, On Track (Flag, Not Alarm)

What happened: Harborview began operating in February 2026 and is Cedar Ridge's newest location. It ran a -$40.9K EBITDA for Q2 on the surface, which would look like the worst practice in the portfolio if read as a standalone number.

Why this is different: Every underlying trend at Harborview is moving the right direction, month over month, without exception: production has climbed steadily ($25.8K → $38.2K → $47.1K → $54.0K → $62.5K), active patients have grown 7x in four months (54 → 368), new patient acquisition is accelerating (54 → 95/month), and the monthly EBITDA loss is shrinking every single month (-$21.5K → -$17.8K → -$15.0K → -$13.3K → -$12.5K). This is a textbook de novo ramp curve, not a distressed practice — it is losing less money each month while growing volume, which is exactly what we'd want to see.

Recommendation: - No remediation needed — this is expected performance for a practice at this stage. Continue current staffing (currently lean: 1 dentist, 1 hygienist, 1 assistant, 1 front office) and marketing support. - Set a breakeven target based on the current trajectory (roughly 4–5 more months at the current improvement rate) and track it as a ramp KPI rather than comparing it against mature-practice benchmarks. - Consider this practice's numbers separately from the rest of the portfolio in any blended reporting to leadership or lenders, so its (expected, temporary) loss doesn't obscure the read on the fifteen mature practices.

4. Sunridge Dental (CR-09) — Watch List, Not Urgent

Sunridge posted an 11.6% EBITDA margin, the lowest among the group's mature, non-disrupted practices, and modest 3.6% YoY growth — below the ~5% average for comparable practices. Nothing in the cost structure (provider comp, staff wages, lab fees are all close to portfolio averages) or the operational metrics (case acceptance, hygiene reappointment, cancellation/no-show are all mid-pack) points to a specific driver — it simply runs smaller and thinner than its peers. This doesn't require an intervention, but it's worth a standing agenda item to see whether it closes the gap organically over the next two quarters or needs a closer look.

Summary of Recommended Actions

Net read for the executive team: the portfolio's core is healthy — margin, collections, and growth at 8 of 12 practices are solid and, in Cedar Park's case, best-in-class. The Q2 story is really about two isolated, fixable events — a staffing gap at Stonebridge and an unresolved integration issue at Pinecrest — plus one practice (Harborview) whose loss is simply the normal cost of a new-practice ramp playing out on schedule.