ClearPoint Neuro(CLPT) - 2025 Q2 - Quarterly Results

Q2 2025 Financial Highlights and Business Outlook Key Achievements and Strategic Update ClearPoint Neuro reported record Q2 2025 revenue of $9.2 million, a 17% year-over-year increase, driven by growth across all business pillars, securing up to $105 million in financing to boost cash to $41.5 million for its 'Fast. Forward.' growth strategy | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | Total Revenue | $9.2 million | +17% | | Neurosurgery Navigation & Therapy Revenue | $3.4 million | +33% | | Cash and Cash Equivalents | $41.5 million | N/A | - The company entered a new strategic phase termed 'Fast. Forward.', focusing on multiple growth vectors including expansion into the operating room, laser therapy, new geographies, and supporting Biopharma partners in late-stage clinical trials[3] - A significant financing deal was secured with Oberland Capital Management, providing up to $105.0 million through a note arrangement and an additional $3.5 million from a stock purchase, with an initial $30.0 million funded at closing[4] Business Outlook The company has reaffirmed its previously stated revenue guidance for the full fiscal year 2025 - ClearPoint Neuro reaffirms its full-year 2025 revenue outlook to be between $36.0 million and $41.0 million[5] Detailed Financial Performance Analysis (Q2 2025) Revenue Analysis Total revenue for Q2 2025 increased by 17% year-over-year to $9.2 million, with Neurosurgery Navigation and Therapy revenue showing the strongest performance at 33% growth, followed by Capital Equipment and Software at 11% and Biologics and Drug Delivery at 10% Biologics and Drug Delivery Revenue | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $4.7 million | $4.3 million | +10% | - The increase was driven by a $0.2 million rise in product revenue from higher demand as partners progress in trials, and a $0.2 million increase in service revenue[7] Neurosurgery Navigation and Therapy Revenue | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $3.4 million | $2.6 million | +33% | - Growth was fueled by higher sales from new offerings, including SmartFrame OR, Prism Laser Therapy, and the new 3.0 operating room navigation software[8] Capital Equipment and Software Revenue | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $1.0 million | $0.9 million | +11% | - The increase in this segment was primarily due to a rise in service revenue[9] Profitability and Expenses Gross margin for Q2 2025 declined to 60% from 63% in the prior-year period, primarily due to higher inventory reserves, while operating expenses increased by 16% to $11.2 million, driven by higher costs in R&D and personnel as the company invests in expansion - Gross margin decreased to 60% for Q2 2025, compared to 63% in Q2 2024, mainly due to higher excess and obsolete inventory reserves[10] - Operating expenses rose 16% to $11.2 million, driven by increased product development costs, higher allowance for credit losses, and increased headcount in R&D and clinical organizations[11] Liquidity and Capital Resources The company's cash position strengthened significantly, with cash and cash equivalents reaching $41.5 million at the end of Q2 2025, more than double the $20.1 million balance at year-end 2024, primarily from $32.0 million in net proceeds from a note payable and stock offering - Cash and cash equivalents totaled $41.5 million as of June 30, 2025, a substantial increase from $20.1 million at December 31, 2024[12] - The increase in cash was primarily due to net proceeds of $32.0 million from a note payable and stock offering, partially offset by $8.7 million used in operating activities[12] Consolidated Financial Statements Consolidated Statements of Operations For the second quarter of 2025, ClearPoint Neuro reported total revenue of $9.2 million, a gross profit of $5.6 million, an operating loss of $5.7 million, and a net loss of $5.8 million or $(0.21) per share, compared to a net loss of $4.4 million or $(0.16) per share in the prior year | (in thousands, except per share data) | For the Three Months Ended June 30, 2025 | For the Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total revenue | $9,215 | $7,858 | | Gross profit | $5,556 | $4,988 | | Operating loss | $(5,680) | $(4,724) | | Net loss | $(5,837) | $(4,408) | | Net loss per share (Basic and diluted) | $(0.21) | $(0.16) | Consolidated Balance Sheets As of June 30, 2025, the company's total assets significantly increased to $62.9 million from $39.2 million at year-end 2024, driven by a rise in cash to $41.5 million, while total liabilities also increased to $43.1 million due to a new long-term note payable of $28.8 million | (in thousands) | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $41,541 | $20,104 | | Total current assets | $53,991 | $33,363 | | Total assets | $62,869 | $39,189 | | Long-term note payable, net | $28,845 | $— | | Total liabilities | $43,126 | $13,800 | | Total stockholders' equity | $19,743 | $25,389 | Consolidated Statements of Cash Flows For the first six months of 2025, the company used $8.7 million in cash for operating activities, while financing activities provided $30.6 million, primarily from a note payable and common stock offerings, resulting in a net cash increase of $21.6 million | (in thousands) | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash flows from operating activities | $(8,724) | $(6,508) | | Net cash flows from investing activities | $(274) | $— | | Net cash flows from financing activities | $30,615 | $16,213 | | Net change in cash | $21,617 | $9,705 | | Cash, cash equivalents and restricted cash, end of period | $41,721 | $32,845 | Other Information Teleconference Information The company will host a teleconference and webcast for investors and analysts to review its Q2 2025 financial results on Tuesday, August 12, 2025, at 4:30 p.m. Eastern time, with access details for the live event and a replay provided - An investor call is scheduled for August 12, 2025, at 4:30 p.m. ET to discuss the quarterly results, with a replay available until September 11, 2025[13][14] About ClearPoint Neuro ClearPoint Neuro focuses on enabling precise navigation to the brain and spine for device, cell, and gene therapies, offering clinical products like its FDA-cleared ClearPoint Neuro Navigation System and preclinical development services to a global customer base - ClearPoint Neuro is a device, cell, and gene therapy-enabling company that provides precise navigation to the brain and spine for both clinical procedures and preclinical development[16] Forward-Looking Statements This section provides a standard safe harbor statement, cautioning that statements regarding the company's future plans, growth, and financial performance are forward-looking and subject to significant risks and uncertainties, including macroeconomic conditions, regulatory changes, market acceptance of new products, and the success of its biopharma partners - The press release contains forward-looking statements concerning the company's plans, growth, and future performance, which are subject to inherent business risks and uncertainties[17] - Key risks identified include macroeconomic conditions, regulatory uncertainty, market acceptance for new products, and reliance on the commercial success of its biologics and drug delivery partners[17]