Financial Performance - Total revenue for the three months ended September 30, 2025, was $22.6 million, a 31% increase from $17.2 million in the same period of 2024[141]. - Product revenue increased by $3.7 million (28%) for the three months and $12.6 million (35%) for the nine months ended September 30, 2025, compared to the same periods in 2024, driven by new customer additions and increased product utilization[142]. - Subscription revenue rose by $1.7 million (44%) for the three months and $4.8 million (43%) for the nine months ended September 30, 2025, primarily due to increased subscription adoption[143]. - Gross profit for the three months ended September 30, 2025, was $19.9 million, a 33% increase from $15.0 million in 2024, with a gross margin of 88%[146]. - Net loss for the three months ended September 30, 2025, was $13.5 million, a 29% increase from a net loss of $10.4 million in the same period of 2024[141]. Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $34.6 million, a 39% increase from $24.9 million in 2024, with significant increases in research and development (47%) and sales and marketing (48%) expenses[141]. - Research and development expenses are expected to increase as the company continues to improve its algorithm and expand indications beyond seizures[132]. - Sales and marketing expenses are projected to rise as the company increases its sales organization and market penetration in the U.S. and seeks international opportunities[134]. - General and administrative expenses are expected to grow as the company increases headcount and incurs additional costs associated with being a public company[136]. Cash Flow and Financing - Cash used in operating activities for the nine months ended September 30, 2025, was $30.0 million, compared to $25.1 million in 2024[155]. - Cash used in investing activities significantly increased to $144.2 million for the nine months ended September 30, 2025, from $1.1 million in 2024, primarily due to marketable securities purchases[159]. - As of September 30, 2025, the company had $168.5 million in cash and cash equivalents and marketable securities, along with $20.0 million in term loans[163]. - The company expects to continue incurring losses and significant cash expenditures as it scales operations and invests in research and development and marketing[162]. - The company entered into a VLSA with SVB and Horizon, providing a term loan commitment of $50.0 million, of which $20.0 million was drawn at closing[164]. - A Revolving Facility was established for a line of credit of up to $10.0 million, maturing on February 6, 2026[165]. - The company believes that expected cash generated from revenue transactions and existing cash will be sufficient to fund planned operating expenses for at least the next 12 months[166]. - Future capital needs will depend on factors such as market acceptance of products and costs associated with product development and sales growth[167]. Regulatory and Market Position - The company has received a CE Mark for the Ceribell System in Europe and plans to pursue additional regulatory clearances internationally[120]. - The Ceribell System is designed to improve the detection and management of seizures in acute care settings, addressing significant delays and economic burdens associated with conventional EEG systems[118]. - As of September 30, 2025, the Ceribell System has been adopted by over 600 active accounts and has been used to care for over 200,000 patients[118]. Accounting and Estimates - Management's estimates and judgments in financial statements are based on historical experience and known trends, which may differ from actual results[169]. - There have been no material changes to significant accounting policies during the nine months ended September 30, 2025[170]. - Recent accounting pronouncements applicable to financial statements are described in the Quarterly Report on Form 10-Q[171].
CeriBell, Inc.(CBLL) - 2025 Q3 - Quarterly Report