Stereotaxis(STXS) - 2025 Q2 - Quarterly Results

Executive Summary & Business Highlights Company Overview and Strategic Vision Stereotaxis, a leader in surgical robotics, reported strong Q2 2025 commercial results, driven by innovations. The company is establishing a new foundational product ecosystem and has strengthened its balance sheet through recent equity financing to accelerate adoption - Stereotaxis is a pioneer and global leader in surgical robotics for minimally invasive endovascular intervention[2] - The company is pleased with sequential and year-over-year growth in both recurring and system revenue, reflecting the early positive impact of innovations on commercial adoption[3] - A recently completed equity financing has strengthened the balance sheet, enabling acceleration of the comprehensive innovation strategy[3] Key Business Developments and Innovations A significant milestone was achieved with the recent FDA clearance of MAGiC Sweep, Stereotaxis' first interventional catheter clearance in nearly 20 years. Initial sales of MAGiC Sweep, along with MAGiC and Map-iT, are expected to contribute to ramping recurring revenue, with multiple additional regulatory approvals anticipated soon - Recent FDA clearance of MAGiC Sweep was a significant milestone, marking Stereotaxis' first FDA clearance for an interventional catheter in nearly 20 years[3] - Initial sales of MAGiC Sweep, along with MAGiC and Map-iT, are expected to contribute to increasing recurring revenue[3] - The company anticipates multiple additional regulatory approvals in the coming weeks and months, in line with previously shared timelines[3] Financial Performance - Second Quarter 2025 Revenue Analysis Stereotaxis reported a substantial increase in total revenue for Q2 2025, driven by significant growth in both system and recurring revenue. System revenue saw a dramatic year-over-year increase due to partial recognition on two capital systems, including the first commercial GenesisX system, while recurring revenue also grew robustly Q2 2025 Revenue Performance | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | QoQ Change (vs. Q1 2025) | | :----------------- | :----------------- | :----------------- | :--------- | :------------------------ | | Total Revenue | $8.8 | $4.5 | 95% | 18% (vs. $7.5M) | | System Revenue | $3.0 | $0.2 | 1400% | N/A | | Recurring Revenue | $5.8 | $4.3 | 35% | N/A | - System revenue for Q2 2025 included partial revenue recognition on two capital systems, notably the first commercial GenesisX system[4] - Recurring revenue growth was attributed to contributions from Map-iT catheter revenue and the initial launch of MAGiC, Stereotaxis' proprietary robotically navigated ablation catheter[4] Gross Margin The overall gross margin for Q2 2025 was 52%, with recurring revenue gross margin at 68% and system gross margin at 22%. Gross margins continue to be affected by acquisition-related accounting and low system production levels Q2 2025 Gross Margins | Metric | Q2 2025 Gross Margin | | :---------------------- | :------------------- | | Total Gross Margin | 52% | | Recurring Revenue Margin | 68% | | System Gross Margin | 22% | - Gross margins are impacted by acquisition-related accounting, which temporarily reduces disposable margin, and by fixed overhead allocated over low system production levels[5] Operating Expenses and Profitability Operating expenses in Q2 2025 were $8.6 million, including $2.6 million in non-cash charges. Adjusted operating expenses decreased to $6.0 million, partly due to a favorable adjustment on acquisition-related contingent earnout consideration and a $0.5 million Employee Retention Tax Credit Q2 2025 Operating Expenses and Operating Loss | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | | :--------------------------- | :----------------- | :----------------- | | Total Operating Expenses | $8.6 | $9.3 | | Non-Cash Charges | $2.6 | N/A | | Adjusted Operating Expenses | $6.0 | $6.8 | | Operating Loss | ($4.0) | ($6.0) | - Operating expenses included $2.6 million of non-cash charges for stock compensation, acquisition-related contingent earnout consideration, and amortization of acquired intangible assets[6] - The company received a $0.5 million Employee Retention Tax Credit, which reduced current period operating expenses[6] Net Loss and Free Cash Flow Stereotaxis reduced its net loss and adjusted net loss in Q2 2025 compared to the prior year. However, free cash flow remained negative, showing a slight increase in outflow Q2 2025 Net Loss and Free Cash Flow | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | | :---------------------- | :----------------- | :----------------- | | Net Loss | ($3.8) | ($5.8) | | Adjusted Net Loss | ($1.3) | ($3.3) | | Negative Free Cash Flow | ($3.7) | ($3.1) | Financial Position and Liquidity Cash Balance and Recent Financing As of June 30, 2025, Stereotaxis held $7.0 million in cash and cash equivalents with no debt. A subsequent registered direct financing in July, raising $12.5 million, significantly boosted the proforma cash balance to $18.8 million Cash and Liquidity | Metric | Amount (Millions) | | :------------------------- | :---------------- | | Cash & Equivalents (June 30, 2025) | $7.0 | | Debt (June 30, 2025) | $0 | | July Financing | $12.5 | | Proforma Cash Balance | $18.8 | - The company completed a first closing of $8.5 million in July from the registered direct financing[8] Outlook and Forward-Looking Expectations Stereotaxis reiterates its expectation for double-digit revenue growth for the full year 2025, with specific targets for quarterly system and recurring revenue. The company anticipates substantial growth in 2026, supported by regulatory milestones and initial commercial launches, and expects its strengthened balance sheet to fund market advancement and profitable growth - Stereotaxis expects double-digit revenue growth for the full year 2025[9] 2025 Revenue Expectations | Metric | Expectation | | :------------------------- | :---------- | | System Revenue per Quarter | $2-3 million | | Q4 Recurring Revenue | $7 million | - Anticipated regulatory milestones and initial commercial launches in 2025 are expected to support substantial growth in 2026[9] - The company's balance sheet is expected to allow it to advance its transformative product ecosystem to market, fund commercialization, and achieve profitable growth[9] Supplementary Information About Stereotaxis Stereotaxis is a global leader in surgical robotics for minimally invasive endovascular intervention, focused on developing robotic systems, instruments, and information solutions. Their technology aims to enhance patient care, expand access to therapy, and improve operating room efficiency, having treated over 150,000 patients worldwide - Stereotaxis is a pioneer and global leader in innovative surgical robotics for minimally invasive endovascular intervention[11] - The company's mission is to discover, develop, and deliver robotic systems, instruments, and information solutions for the interventional laboratory[11] - Stereotaxis technology has been used to treat over 150,000 patients across the United States, Europe, Asia, and elsewhere[11] Forward-Looking Statements Disclaimer This section provides a standard disclaimer regarding forward-looking statements, highlighting that such statements involve inherent risks and uncertainties that could cause actual results to differ materially. The company undertakes no obligation to update these statements - Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially[12] - Factors causing differences include managing expenses, market acceptance, global economic conditions, competitive factors, healthcare policy changes, dependence on third-party vendors, and timing of regulatory approvals[12] - The Company undertakes no obligation to update these statements for revisions or changes after the date of this release[12] Company Contacts Contact information for Stereotaxis' Chairman and CEO, David L. Fischel, and Chief Financial Officer, Kimberly R. Peery, is provided for investor inquiries - Contact information for investor relations is provided, including David L. Fischel (Chairman and CEO) and Kimberly R. Peery (Chief Financial Officer)[13] Consolidated Financial Statements Consolidated Statements of Operations The unaudited Consolidated Statements of Operations detail the company's financial performance for the three and six months ended June 30, 2025, and 2024, showing revenue, cost of revenue, gross margin, operating expenses, and net loss Consolidated Statements of Operations (Unaudited) | (in thousands, except share and per share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue: | | | | | | Systems | $3,038 | $240 | $5,002 | $2,852 | | Disposables, service and accessories | 5,760 | 4,262 | 11,268 | 8,530 | | Total revenue | 8,798 | 4,502 | 16,270 | 11,382 | | Cost of revenue: | | | | | | Systems | 2,366 | 187 | 4,033 | 2,087 | | Disposables, service and accessories | 1,853 | 1,002 | 3,594 | 2,016 | | Total cost of revenue | 4,219 | 1,189 | 7,627 | 4,103 | | Gross margin | 4,579 | 3,313 | 8,643 | 7,279 | | Operating expenses: | | | | | | Research and development | 1,777 | 2,273 | 4,127 | 4,516 | | Sales and marketing | 3,269 | 3,301 | 6,417 | 6,304 | | General and administrative | 4,002 | 3,760 | 8,497 | 7,226 | | Other | (492) | - | (492) | - | | Total operating expenses | 8,556 | 9,334 | 18,549 | 18,046 | | Operating loss | (3,977) | (6,021) | (9,906) | (10,767) | | Other expense | (1) | (3) | (1) | (3) | | Interest income, net | 152 | 191 | 258 | 430 | | Net loss | $(3,826) | $(5,833) | $(9,649) | $(10,340) | | Cumulative dividend on convertible preferred stock | (318) | (325) | (632) | (656) | | Net loss attributable to common stockholders | $(4,144) | $(6,158) | $(10,281) | $(10,996) | | Net loss per share attributed to common stockholders: | | | | | | Basic | $(0.05)$ | $(0.07)$ | $(0.12)$ | $(0.13)$ | | Diluted | $(0.05)$ | $(0.07)$ | $(0.12)$ | $(0.13)$ | | Weighted average number of common shares and equivalents: | | | | | | Basic | 87,952,086 | 84,570,738 | 87,861,231 | 84,025,335 | | Diluted | 87,952,086 | 84,570,738 | 87,861,231 | 84,025,335 | Consolidated Balance Sheets The unaudited Consolidated Balance Sheets present the company's financial position as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and stockholders' equity Consolidated Balance Sheets (Unaudited) | (in thousands, except share amounts) | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :---------------- | | Assets | | | | Current assets: | | | | Cash and cash equivalents | $6,967 | $12,217 | | Restricted cash - current | - | 219 | | Accounts receivable, net | 4,393 | 3,824 | | Inventories, net | 9,608 | 8,331 | | Prepaid expenses and other current assets | 936 | 1,848 | | Total current assets | 21,904 | 26,439 | | Property and equipment, net | 3,284 | 3,573 | | Goodwill | 3,764 | 3,764 | | Intangible assets, net | 6,899 | 7,358 | | Operating lease right-of-use assets | 5,204 | 5,483 | | Prepaid and other non-current assets | 118 | 107 | | Total assets | $41,173 | $46,724 | | Liabilities and stockholders' equity | | | | Current liabilities: | | | | Accounts payable | $6,730 | $5,668 | | Accrued liabilities | 1,731 | 2,922 | | Deferred revenue | 5,843 | 6,804 | | Current contingent consideration | 5,839 | 5,638 | | Current portion of operating lease liabilities | 605 | 570 | | Total current liabilities | 20,748 | 21,602 | | Long-term deferred revenue | 1,057 | 2,064 | | Long-term contingent consideration | 6,384 | 6,126 | | Operating lease liabilities | 5,122 | 5,436 | | Other liabilities | 1,110 | 64 | | Total liabilities | 34,421 | 35,292 | | Series A - Convertible preferred stock | 5,296 | 5,352 | | Stockholders' equity: | | | | Common stock | 86 | 85 | | Additional paid-in capital | 572,950 | 567,926 | | Treasury stock | (206) | (206) | | Accumulated deficit | (571,374) | (561,725) | | Total stockholders' equity | 1,456 | 6,080 | | Total liabilities and stockholders' equity | $41,173 | $46,724 |