Ekso Bionics(US:EKSO)2025-07-28 21:32Financial Data and Key Metrics Changes - The company recorded revenue of $2.1 million for Q2 2025, down from $5 million in Q2 2024, primarily due to short-term delays in multi-device enterprise health sales, partially offset by higher sales of the Ekso Indigo personal device [8] - Gross profit for Q2 2025 was $800,000, representing a gross margin of approximately 40%, compared to a gross profit of $2.6 million and a gross margin of 53% for the same period in 2024 [8] - Operating expenses for Q2 2025 were $4.8 million, a 4% improvement from $5 million in Q2 2024 [9] - The net loss applicable to common stockholders for Q2 2025 was $2.7 million, or $1.24 per share, compared to a net loss of $2.4 million, or $1.99 per share, for the same period in 2024 [9] Business Line Data and Key Metrics Changes - The legacy enterprise health product, primarily the EksoNR device, faced revenue declines, while the Ekso Indigo personal device saw increased sales, contributing to a 50% growth in personal health product revenues in the first half of 2025 [13][21] - Despite total revenues for the first six months of 2025 being down 38% compared to the same period in 2024, personal health product revenues grew by more than 50% [13] Market Data and Key Metrics Changes - The company is experiencing a trend of lower but steady growth in the legacy enterprise health business, counterweighted by growth in personal health from the Ekso Indigo device [13] - The company has developed a pipeline of over 45 Medicare beneficiaries qualified for the Ekso Indigo personal device, up more than 200% from the end of 2024 [16] Company Strategy and Development Direction - The company is focusing on a scalable go-to-market strategy for the Ekso Indigo personal device, supported by new distribution partners and educational initiatives like Ekso University [12][21] - A strategic initiative is underway to build a proprietary foundation model for human motion in physical rehabilitation, integrating new AI capabilities across the product portfolio [17][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the revenue shortfall in Q2 2025 does not reflect the overall health of the business and anticipates closing a significant portion of deferred sales in the second half of the year [11][20] - The company is actively working with partners to navigate market access and reimbursement processes, which are critical for the commercialization of personal devices [35] Other Important Information - The company joined the NVIDIA Connect program to enhance product development and cost efficiency, aiming to leverage AI in exoskeleton technology [17][19] - The company is working with Pria Healthcare to improve market access and reimbursement processes for the Ekso Indigo personal device [15][36] Q&A Session Summary Question: Can you quantify the deferred sales on the Enterprise Health side? - Management indicated that two multi-unit device sales fell out of Q2, with one being an international order delayed due to regulatory challenges and the other a North American order expected to occur in Q3, totaling approximately $1.4 million [24] Question: When do you expect the Indigo Personal to overtake the Enterprise Health business? - Management believes that by 2025, the contribution from personal health products will increase to about 25% of total revenue, with expectations to overtake enterprise health by 2027 [26] Question: How is the process of nailing down the patient profile progressing? - Management reported positive outcomes from appeals processes, with claims being approved when presented to administrative law judges, indicating that the technology is deemed medically necessary [29] Question: Will Ekso University focus solely on exoskeletons? - Management stated that while the initial courses focus on exoskeleton technology, future content will cover a wide range of neuro rehabilitation topics [30] Question: How many enterprise clients utilize federal grants? - Management estimated that approximately 10% of enterprise customers rely on federal or outside grants to fund their technology [41]