Pulmonx(US:LUNG)2025-11-12 21:25Revenue and Financial Performance - Revenue for the three months ended September 30, 2025, was $21.5 million, a 5.4% increase from $20.4 million for the same period in 2024, with a gross margin of 74.7%[117] - For the nine months ended September 30, 2025, revenue was $67.9 million, up 13.2% from $60.0 million in the same period in 2024, with a gross margin of 73.0%[117] - Revenue increased by $1.1 million, or 5.5%, to $21.5 million for the three months ended September 30, 2025, compared to $20.4 million for the same period in 2024[145] - For the nine months ended September 30, 2025, revenue increased by $7.9 million, or 13.1%, to $67.9 million compared to $60.0 million in the same period in 2024[153] - Revenue from sales outside of the United States represented 36.8% of total revenue for the nine months ended September 30, 2025, compared to 32.4% for the same period in 2024[188] Net Loss and Financial Position - The company reported a net loss of $14.0 million for Q3 2025, compared to a net loss of $14.1 million in Q3 2024, and a net loss of $43.6 million for the nine months ended September 30, 2025, compared to $43.2 million for the same period in 2024[117] - As of September 30, 2025, the company had an accumulated deficit of $511.1 million and cash and cash equivalents of $76.5 million[117] - As of September 30, 2025, the company had cash and cash equivalents of $76.5 million, expected to fund operating expenses for at least 12 months[178] - Net cash used in operating activities was $25.3 million for the nine months ended September 30, 2025, primarily due to a net loss of $43.6 million[171] - The company expects to continue incurring net losses for the next several years and will require substantial additional funding[118] Expenses and Cost Management - Research and development expenses rose by $1.1 million, or 29.4%, to $4.8 million for the three months ended September 30, 2025, primarily due to increased clinical trial costs[148] - Selling, general and administrative expenses increased by $0.2 million, or 0.7%, to $25.6 million for the three months ended September 30, 2025, driven by higher advertising and marketing expenses[149] - Research and development expenses for the nine months ended September 30, 2025, increased by $1.3 million, or 9.9%, to $14.9 million, largely due to clinical trial costs[155] - Interest expense decreased by $0.3 million to $2.4 million for the nine months ended September 30, 2025, due to lower interest rates[157] - Interest expense on the CIBC Loan was $0.8 million for the three months ended September 30, 2025[168] Market and Operational Strategy - Approximately 93% of revenue for the nine months ended September 30, 2025, was generated in markets where the company sells directly[113] - The company is focused on expanding its commercial operations in the U.S. and internationally, with significant investments in sales and marketing[118] - The company has a dedicated patient reimbursement support team to assist in securing prior authorization approvals for treatments[125] - The company may undertake additional expenses to expand its commercial organization and enhance research and development efforts[177] Research and Development - The company is investing in research and development to enhance existing products and develop next-generation technologies, including the AeriSeal System, which is in a pivotal trial[129] Currency and Inflation Impact - A 10% change in foreign currency exchange rates would have impacted revenues by approximately $2.5 million and operating expenses by $1.6 million for the nine months ended September 30, 2025, resulting in a net impact of $0.9 million on net loss[188] - High inflation rates have led to increased costs in transportation, wages, and other operational expenses[189] - Inflation may affect the company's cost of labor, commercial support, manufacturing, and clinical trial expenditures[189] - The company does not believe inflation has materially impacted its financial position or results of operations to date[189] - If costs become subject to significant inflationary pressures, the company may struggle to offset these with increased revenues[189] - The inability to offset higher costs with increased revenues could harm the company's business and financial condition[189]