Financial Data and Key Metrics Changes - Total revenue for Q2 2026 was $22.6 million, representing a 53% increase compared to the prior year period [18] - Gross margin reached 50.6%, up 11 points year over year, marking the first time it exceeded 50% in the company's history [9][19] - The company expects continued gross margin expansion, aiming for 70%+ margins in the coming years [9][19] Business Line Data and Key Metrics Changes - Approximately 4,700 prescriptions were written for the ASSURE system in Q2 2026, contributing to the revenue growth [8] - Revenue growth was driven by a 54% year-over-year increase in prescriptions, reflecting market share gains and activation of new accounts [18] Market Data and Key Metrics Changes - The wearable cardioverter defibrillator (WCD) market is estimated to be growing in the low double digits, with only 14% of the eligible U.S. addressable market currently utilizing WCD therapy [10][14] - The ACE-PAS study, the largest real-world prospective WCD study, enrolled over 21,000 patients and demonstrated the ASSURE system's effectiveness [10][11] Company Strategy and Development Direction - The company is focused on expanding its sales organization to penetrate existing accounts and attract new ASSURE prescribers [14] - The strategy includes enhancing revenue cycle management capabilities and increasing the in-network patient mix, which has improved from approximately 70% to the low 80s [15][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong revenue growth and gross margin expansion as key indicators of success [17] - The company is optimistic about the impact of recent clinical data on market expansion and prescription guidelines [10][46] Other Important Information - GAAP operating expenses for Q2 were $43.2 million, reflecting investments in commercial expansion and public company costs [21] - The company has increased its fiscal year 2026 revenue guidance to $91 million, representing a growth of 52% compared to fiscal year 2025 [22] Q&A Session Summary Question: Guidance for the year and Q3 seasonality - Management indicated that revenue growth is driven by prescription volume and in-network mix, with a focus on consistent quarterly results to build investor trust [26][28] Question: Use of proceeds from the recent equity offering - The company plans to use the additional capital to strengthen its balance sheet and support key growth drivers [30] Question: Impact of AHA data on market share and growth - Management noted that while it is early to see numerical impacts, anecdotal evidence suggests clinicians are reassessing their decisions based on new data [36][38] Question: Rep productivity and sales force hiring plans - The company is on track to double its sales force from 70 to approximately 140 reps over the next few years [40] Question: Timing for potential guideline changes - Management clarified that while growth does not rely on guideline changes, they believe the clinical evidence warrants a review [46][47] Question: Prescription volume sustainability - Management expects the strong prescription growth to continue, supported by ongoing penetration of existing accounts and the addition of new hospitals [63] Question: OpEx spending plans - The company is committed to investing in team expansion and revenue cycle management capabilities to support growth [67][69] Question: Clinical specialist role impact - The strategy of hiring clinical specialists to support high-performing accounts has received positive feedback and is seen as beneficial for account management [73][74] Question: Path to achieving 70% gross margins - Management is confident in achieving sustained gross margin expansion through volume leverage and improved in-network mix [78]

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]