Financial Data and Key Metrics Changes - Total revenue for the first quarter was $19.4 million, representing a 52% increase year-over-year [17] - Gross margin improved to 45.7% from 32.9% in the prior year period, marking seven consecutive quarters of gross margin expansion [17][19] - Cost per fit decreased approximately 20% compared to the prior year, while adjusted revenue per fit increased approximately 20% [17] Business Line Data and Key Metrics Changes - The company accepted over 4,200 prescriptions for the ASSURE system, an increase of 51% year-over-year [8] - The conversion rate improved to approximately 47% from an adjusted 40% in the prior year period, driven by enhancements in prescription fill rate, bill rate, and collections performance [18] Market Data and Key Metrics Changes - The in-network patient mix increased from approximately 70% at the time of the IPO to nearly 80% [10][21] - The company is targeting geographies with high volumes of wearable cardioverter defibrillator (WCD) prescriptions and strong in-network payer coverage [9] Company Strategy and Development Direction - The company aims to achieve 70%+ gross margins in the coming years, supported by its rental model and increasing in-network patient mix [9][18] - The strategy includes expanding the sales organization, improving revenue cycle management, and building clinical evidence for the ASSURE system [10][12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued revenue growth and gross margin expansion, citing strong performance in the first quarter [21] - The company anticipates steady increases in gross margins as it benefits from volume and depreciation leverage [18] Other Important Information - The company has a cash balance of $201.2 million as of July 31, 2025, which is expected to be sufficient to reach cash flow breakeven and profitability [21] - The company expects fiscal year 2026 revenue of $88 million, a 47% increase compared to fiscal year 2025 [21] Q&A Session Summary Question: What is driving the confidence to raise guidance? - Management noted a strong Q1 performance and expressed optimism about the rest of the year, indicating comfort with the updated guidance [25] Question: What is being done to improve the in-network mix? - Management highlighted efforts to engage more payers and expand sales territories in areas with known WCD demand [28] Question: What is the current status of payer additions? - Management described the process as non-linear, with a gradual increase in coverage expected as new regional payers are added [33] Question: What is the expected increase in the conversion rate? - Management anticipates a 2.5 to 3-point increase in the conversion rate, driven by improvements in in-network patient mix and territory manager deployment [55] Question: What is the current market share? - Management estimated the current market share at approximately 12%, with plans to increase territory coverage to enhance market presence [58] Question: What is the role of the expanded clinical specialist? - The expanded role will allow sales representatives to focus on new accounts while clinical specialists manage existing accounts [65] Question: What are the details of the post-approval study? - The study includes 24,000 to 25,000 patients, focusing on endpoints such as shock success rate and patient compliance, with results expected to strengthen the company's clinical data position [70][72] Question: How are compliance rates evolving? - Management reported a median daily wear time of over 23 hours, indicating strong patient compliance with the ASSURE system [76] Question: What is the pace of OpEx investments? - Management indicated a steady and measured approach to OpEx investments, focusing on high-quality hires and support for new territory managers [80]

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $19.4 million, representing a 52% increase year over year [17] - Gross margin improved to 45.7% from 32.9% in the prior year period, marking seven consecutive quarters of gross margin expansion [8][17] - Cost per fit decreased approximately 20% compared to the prior year, while adjusted revenue per fit increased approximately 20% [17] Business Line Data and Key Metrics Changes - The company accepted over 4,200 prescriptions for the Assure system, an increase of 51% year over year [8] - The conversion rate improved to approximately 47% from an adjusted 40% in the prior year period, driven by enhancements in prescription fill rate, bill rate, and collections performance [18] Market Data and Key Metrics Changes - The in-network patient mix increased from approximately 70% at the time of the IPO to nearly 80% [10][20] - The company is targeting a gradual increase in the in-network mix as it engages with more payers, which is expected to positively impact revenue per fitting [28] Company Strategy and Development Direction - The company is focused on expanding its sales organization to penetrate existing accounts and attract new prescribers, particularly in regions with high WCD prescription volumes [9] - A new commercial strategy includes an expanded clinical specialist role to support sales territory managers, aimed at enhancing account penetration [10][64] - The company aims to build clinical evidence supporting the Assure system, with a significant milestone achieved in the FDA post-approval study, expected to be the largest study published in the WCD category [12][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving over 70% gross margins in the coming years, supported by the rental model's volume and depreciation leverage [18] - The company anticipates steady revenue growth and improvements in profitability as it continues to enhance its revenue cycle management processes [19][21] - Management highlighted the ongoing need for WCD therapy, noting that only 14% of eligible U.S. patients currently receive it, indicating significant market expansion potential [13][15] Other Important Information - Cash and cash equivalents totaled $201.2 million as of July 31, 2025, with expectations that this will be sufficient to reach cash flow breakeven and profitability [20] - The company raised its fiscal year 2026 revenue guidance to $88 million, reflecting a 47% increase compared to fiscal year 2025 [20][21] Q&A Session Summary Question: What is driving the confidence to raise guidance? - Management noted a strong Q1 performance and expressed optimism about the rest of the year, indicating that it is still early in the fiscal year [25] Question: What is being done to improve the in-network mix? - The company is gradually increasing the in-network mix by engaging more payers, with a focus on territories with known WCD demand and good payer coverage [28] Question: What is the current status of payer additions? - Management described the process as a "sawtooth curve," indicating that payer additions will not be linear but will continue to increase over time [32] Question: What is the expected increase in conversion rate for the year? - Guidance reflects a 2.5 to 3-point increase in the conversion rate, with ongoing improvements expected as the commercial team expands [53] Question: What is the size and focus of the FDA post-approval study? - The study includes approximately 24,000 to 25,000 patients, focusing on endpoints such as shock success rate and patient compliance, which will provide significant clinical data [68][70]