Core Insights - Guerbet reported a revenue of €387.8 million for H1 2025, reflecting a decline of 5.4% at constant exchange rates (CER) and on a like-for-like basis, primarily due to reduced activity in France [2][5][6] - The restated EBITDA margin decreased to 12.9% from 15.4% a year earlier, indicating a decline in profitability [2][14] - The company has revised its full-year 2025 financial targets downward due to ongoing challenges in the French market and pricing pressures [18][22] Financial Performance - Group sales for H1 2025 were €387.8 million, down 7.5% compared to H1 2024, with a more significant decline in the first quarter (-7.1%) compared to the second quarter (-3.9%) [5][6] - The EMEA region's revenue was €169.6 million, down 7.7% at CER and like-for-like, while excluding France, revenue grew by 6.9% [7] - Diagnostic Imaging revenue was €334 million, down 6.8% at CER and like-for-like, while Interventional Imaging sales increased by 4.6% [8][9] Profitability and Costs - The EBITDA margin for H1 2025 was reported at 11.9%, down from 14.6% in the previous year, with operating costs tightly controlled [14] - Operating income decreased to €15.0 million, representing 3.9% of revenue, compared to 7.2% in H1 2024 [13] - Net income for the period was €1.3 million, significantly lower than €10.0 million in the previous year [13][35] Cash Flow and Debt - Free cash flow was negative at -€8.4 million but showed improvement from -€29.1 million in H1 2024, attributed to better working capital management [17] - Net debt decreased to €353.3 million from €364.9 million a year earlier, with stable gearing at 0.94 [16] Strategic Outlook - The management has taken measures to safeguard product availability and optimize the cost base while monitoring cash generation closely [20] - The company remains confident in its prospects, supported by a diversified product portfolio and strong positions in international markets [21] - The upcoming Q3 2025 revenue publication is scheduled for October 23, 2025 [24]

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $14.1 million for Q4 2024, compared to a net loss of $10.2 million in Q4 2023, primarily due to an increase in gross loss and other expenses [48] - Revenue for the reported period was $3.0 million, with a gross loss of $2.9 million, compared to revenue of $2.4 million and a gross loss of $1.7 million in the comparable period [49] - Non-GAAP gross loss for the reported period was $0.3 million, compared to a gross profit of $0.9 million in the comparable period, indicating a significant decline in gross profit margin [49][50] Business Line Data and Key Metrics Changes - Revenue from teleradiology services was $2.8 million with a gross profit of $0.6 million, up from $2.3 million and a gross profit of $0.3 million in the comparable period, reflecting improved gross profit margins [50][51] - Revenue from the sale and deployment of imaging systems amounted to $136,000, with a gross loss of $1.5 million, compared to revenue of $17,000 and a gross loss of $44,000 in the comparable period [52] - Revenue from AI solutions was $83,000 with a gross loss of $2.0 million, consistent with the previous period, indicating challenges in this segment [52] Market Data and Key Metrics Changes - The company is expanding its market presence in the U.S. and Europe, having received FDA clearance and CE mark certification, which are expected to enhance commercialization efforts [10][24] - The company has added Tennessee to its commercial coverage in the U.S. and is negotiating with new channel partners to accelerate market presence [11][19] - The company anticipates that initial sales in the EU will primarily be through a CAPEX model, with additional revenue from service contracts and AI solutions [28][29] Company Strategy and Development Direction - The company aims to accelerate the deployment of its imaging systems and AI solutions in the U.S. while expanding into the European market following regulatory approvals [17][30] - The focus remains on building a strong network of strategic partnerships and channel partners to enhance market penetration [22][30] - The company is committed to generating clinical validation and raising awareness of its technology among healthcare professionals [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growing interest from healthcare facilities and the potential for increased referrals and scans as the technology gains traction [20][21] - The company views 2025 as a pivotal year for growth, particularly in AI solutions and imaging systems, as it continues to build its sales and clinical support teams [92][106] - Management highlighted the importance of clinical validation and market education in driving adoption of their technology [26][106] Other Important Information - The company had cash and marketable securities of approximately $83.5 million as of December 31, 2024, providing a solid financial foundation for ongoing operations [54] - The company issued approximately 5 million ordinary shares during the reported period, raising gross proceeds of $38.8 million [56] Q&A Session Summary Question: Can you elaborate on the DME partners in the U.S.? - Management confirmed that there are options for both direct CAPEX sales and typical MSAS models for DME partners [63] Question: Can you provide insights on the U.S. market and expected placements in 2025? - Management indicated that the team is expanding rapidly and that early adopters are primarily small to medium-sized medical imaging centers and orthopedic clinics [66][70] Question: How many systems were deployed in the U.S. during the quarter? - Management refrained from providing exact numbers but noted that installations are in various stages and that the pipeline remains robust [78] Question: What is the pricing strategy for ARC in Europe? - Management stated that the majority of sales in Europe will be through CAPEX, with installations expected to begin in the next two quarters [80][83] Question: What is the outlook for 2025? - Management did not provide specific guidance but indicated that 2025 is expected to be a strong year for AI and imaging solutions [92][106] Question: Can you discuss the capital raised and its deployment? - Management confirmed that approximately $38 million was raised, which will be used to accelerate commercialization efforts for both imaging and AI products [104][105]

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $14.1 million for Q4 2024, compared to a net loss of $10.2 million in Q4 2023, primarily due to an increase in gross loss and other expenses [53][54] - Revenue for the reported period was $3.0 million, with a gross loss of $2.9 million, compared to revenue of $2.4 million and a gross loss of $1.7 million in the comparable period [55] - Non-GAAP gross loss for the reported period was $0.3 million, compared to a gross profit of $0.9 million in the comparable period, indicating a significant decline in gross profit margin [55] Business Line Data and Key Metrics Changes - Revenue from teleradiology services was $2.8 million with a gross profit of $0.6 million, up from $2.3 million and a gross profit of $0.3 million in the comparable period, reflecting improved gross profit margins [55] - Revenue from the sale and deployment of imaging systems amounted to $136,000, a significant increase from $17,000 in the comparable period, driven by sales of 2D systems and OEM projects [56] - Revenue from AI solutions was $83,000, consistent with the previous period, but with a slight decrease in non-GAAP gross profit [56] Market Data and Key Metrics Changes - The company has expanded its commercial coverage in the U.S. to seven states, with a focus on small and medium-sized medical imaging centers and multi-specialty medical centers [19][77] - The company is actively pursuing entry into the European market following the CE mark certification, with new distribution agreements signed in Romania and Greece [31][92] Company Strategy and Development Direction - The primary focus remains on accelerating the deployment of the Nanox. ARC and AI solutions in the U.S. while expanding into the European market [17][24] - The company aims to enhance its market presence through strategic partnerships and channel agreements, particularly in the durable medical equipment space [22][23] - The company is committed to generating clinical validation and raising awareness of its technology among healthcare professionals [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2025 being a strong year for AI solutions and emphasized the importance of regulatory milestones and market education [103][118] - The company is focused on building a robust pipeline and converting installations into revenue-generating scans [89][118] - Management highlighted the positive feedback from customers and the potential for the Nanox. ARC to transform the medical imaging market [123] Other Important Information - The company ended the quarter with approximately $83.5 million in cash and cash equivalents, indicating a solid financial position to support ongoing operations [58] - The company issued approximately 5 million ordinary shares, raising gross proceeds of $38.8 million under its sales agreement [60] Q&A Session Summary Question: Can you elaborate on the DME partners in the U.S.? - The company will offer both CapEx direct sales and traditional models through DME partners [66][67] Question: How many systems were deployed in the U.S. during the quarter? - Exact numbers were not disclosed, but the company indicated that installations are in various stages and that the pipeline remains robust [85][86] Question: What is the pricing strategy for ARC in Europe? - The company expects most sales in Europe to be CapEx sales, with installations likely starting in the next two quarters [90][92] Question: What is the outlook for 2025? - Management refrained from providing specific guidance but indicated that 2025 is expected to be a meaningful year for growth, particularly in AI and imaging solutions [96][104] Question: Can you discuss the capital raised and its deployment? - Approximately $38 million was raised, which will be used to accelerate commercialization efforts for both imaging and AI products [116][118]