Core Insights - Vicarious Surgical Inc. (RBOT) has announced a software execution partnership aimed at transforming its operating model and enhancing efficiency in developing advanced robotic technology for minimally invasive surgery [1][7][10] Company Developments - The partnership is expected to improve RBOT's execution capabilities and operational efficiency by utilizing the external partner's established engineering processes, allowing internal teams to focus on core innovation and system integration [2][9] - Following the announcement, RBOT's shares fell by 3.6%, and the stock has seen a significant decline of 74.9% over the past six months, contrasting with a 1.2% growth in the industry and a 14.2% rise in the S&P 500 [3][6] - The collaboration is designed to reduce operating costs and stabilize development timelines, aligning with RBOT's cash burn guidance [1][4][10] Strategic Partnership Details - The external partner will manage a substantial portion of the software development for the Vicarious Surgical System, including robot control systems and key workflow features, which is expected to lower costs and accelerate development [8][9] - The partnership represents a structural shift in RBOT's approach to software development, aiming for a hybrid model that combines internal leadership with external execution [9][10] Market Outlook - The robotic surgery market is projected to reach $13.79 billion by 2025, with a compound annual growth rate (CAGR) of 16.5% through 2034, driven by the increasing adoption of robotic surgical procedures [11] - Factors contributing to market growth include improved surgical efficiency, reduced costs, enhanced patient outcomes, and shorter hospital stays compared to traditional surgery [11]

WALTHAM, Mass.--(BUSINESS WIRE)--Vicarious Surgical Inc. (NYSE: RBOT) (the "Company†), a next-generation robotics technology company seeking to improve lives by transforming robotic surgery, today announced that it has entered into a strategic partnership agreement with a global digital engineering and software development services firm. This engagement is a central component of the Company's broader operating model transformation, designed to improve execution, increase development predictability, and re ...

Financial Data and Key Metrics Changes - Total operating expenses for Q2 2025 were $13.5 million, a 24% decrease from $17.7 million in Q2 2024 [14] - GAAP net loss for Q2 2025 was $13.2 million or $2.23 per share, compared to a net loss of $15.2 million or $2.59 per share in Q2 2024 [15] - Non-GAAP adjusted net loss for Q2 2025 was $13.3 million or $2.23 per share, compared to $16.8 million or $2.86 per share in Q2 2024 [15] - Cash burn rate for Q2 2025 was approximately $13.4 million, with an expectation of full-year 2025 cash burn around $50 million [16] Business Line Data and Key Metrics Changes - Research and development expenses for Q2 2025 were $9.1 million, down from $10.9 million in Q2 2024 [14] - General and administrative expenses for Q2 2025 were $4.1 million, compared to $5.6 million in Q2 2024 [14] - Sales and marketing expenses for Q2 2025 were $300,000, down from $1.2 million in Q2 2024 [14] Company Strategy and Development Direction - The company is focusing on completing a fully integrated production equivalent system before initiating clinical trials, shifting away from near-term targets for first clinical use (FCU) [11] - The new CEO emphasizes the importance of ensuring the system is ready for commercialization before proceeding with clinical trials [10][11] - The company aims to refine its timelines and evaluate progress across development programs while engaging with the Board and investors regarding capital strategy [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges of the current market environment but expresses confidence in the company's technology and mission to transform surgical care [18] - The new CEO is optimistic about the company's potential and the need for a system that addresses real problems in the surgical field [40][44] - Management is committed to providing reliable guidance to investors once a clearer understanding of development timelines is established [36][58] Other Important Information - The company ended Q2 2025 with approximately $24 million in cash, cash equivalents, and short-term investments [15] - The leadership transition is seen as an opportunity to reassess the company's development path and strategy [5][6] Q&A Session Summary Question: Can you discuss the process of prioritizing system readiness and the impact on clinical trial timelines? - The new CEO is focused on understanding the requirements for a full production equivalent system and ensuring that resources are allocated effectively to avoid rushing into clinical trials with an incomplete system [24][25] Question: What was anticipated to be spent on clinical trials, and how does that affect cash burn guidance? - Current budgeted costs for clinical trials are not expected to materially change the overall 2025 budget, as most groundwork does not require significant spending [30] Question: What milestones should investors expect by the end of the year? - The CEO indicates that it is too early to provide specific dates for milestones, as clarity will come after a thorough assessment of the current development status [35][36] Question: How does the company view its ability to fund development with current cash on hand? - The CEO expresses confidence in the company's potential and the need for the system being developed, emphasizing that the groundwork has already been laid for future success [39][41] Question: What led to the conclusion that the system is not ready for first in human trials? - Management identified several issues that need to be addressed before proceeding, including hardware and software adjustments, which require additional time and effort [50][52] Question: Will the timeline for clinical milestones shift significantly? - The CEO cannot provide specific guidance on timeline shifts until the assessment is completed, but he is optimistic about the visibility of the goal line as the assessment progresses [58][59]

Company Overview - Vicarious Surgical is developing a next-generation surgical robot designed for general surgery, leveraging decoupled actuators for enhanced ease of use, clinical outcomes, and economics [9] - The company anticipates first human use of its V1.0 System in late 2025 and an FDA De Novo submission in late 2026 [12] - Vicarious Surgical has attracted top-tier partners, including HCA, multiple hospital systems, and leading investors [10] Market Opportunity - The initial market opportunity is estimated at $150 billion [15], addressing 45 million abdominal procedures worldwide per year [16] - Currently, only ~4% of these procedures are performed robotically [16], indicating a 96% whitespace [13] - Existing robots are primarily designed for prostate surgery, one of the lowest volume abdominal procedures [19] Technology and Benefits - The Vicarious Surgical System utilizes a single 1.8cm incision [43], aiming to reduce incisional complication rates compared to open and multi-port techniques [43] - The system offers 9 degrees of freedom per arm through a single incision [47], enabling complete anatomical access and surgeon-equivalent robotic motion [47] compared to the 4 degrees of freedom in roboticized laparoscopy [46] - Hospital contribution with Vicarious Surgical is projected to be $6,237 compared to -$10,139 with multi-port systems [50] Future Development - The company is positioned for AI-automated surgery, capturing over 1 GB of data per second to train its models [61] - Vicarious Surgical is developing AI-assisted surgery features, starting with intra-operative alerts and guidance [62]

Financial Data and Key Metrics Changes - Total operating expenses for Q1 2025 were $15.7 million, a 2% decrease from $16.1 million in Q1 2024 [11] - R&D expenses for Q1 2025 were $9.4 million, down from $10 million in Q1 2024 [11] - GAAP net loss for Q1 2025 was $15.4 million or $2.6 per share, compared to a net loss of $17 million or $2.9 per share in Q1 2024 [12] Business Line Data and Key Metrics Changes - Sales and marketing expenses for Q1 2025 were $1 million, essentially flat compared to the prior year [11] - The company successfully built its first patient card and surgeon console for preclinical testing, marking significant progress in its development timeline [7] Market Data and Key Metrics Changes - The company is preparing for its first human cases, focusing on ventral hernia repair, which aligns with its pivotal trial endpoints [8][9] - The collaboration with UMass Memorial Medical Center aims to optimize the implementation of the robotic system in clinical settings [9][10] Company Strategy and Development Direction - The company aims to revolutionize robotic surgery by overcoming limitations of existing surgical approaches, with a focus on minimally invasive procedures through a single small incision [5] - 2025 is positioned as a transformative year, with expectations to evolve into a clinical stage company and demonstrate the value of its single port surgical system [6][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving major clinical milestones later in 2025, attributing progress to the dedication of the team and support from investors [14] - The company is focused on disciplined spending and strategic financing to ensure continued operations and product development [17][18] Other Important Information - The company ended Q1 2025 with approximately $37 million in cash, cash equivalents, and short-term investments, with a cash burn rate of about $12 million for the quarter [12][13] - Full-year cash burn for 2025 is expected to be around $50 million, with a commitment to disciplined capital allocation [13] Q&A Session Summary Question: What assurances can you give to investors about your continued ability to fund operations? - Management emphasized disciplined spending and strategic evaluation of financing options, with confidence in support from existing and potential new investors [17][18] Question: How are you feeling about your ability to supply remaining components for the V1.0 build? - Management reported effective management of the supply chain, with no significant changes or adjustments to the schedule [20][21] Question: Can you provide details on the review timeline expectations for the technical dossier submission? - The company anticipates filing the technical dossier around mid-2025, with confidence based on assumptions from similar companies' experiences [27][28] Question: To what extent could hospital partners be additive to your development process? - Management indicated that hospital partners are excited about the technology and are actively working on optimizing workflows, which will benefit both development and future commercialization [29]