CVRx(US:CVRX)2025-11-05 22:30Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $14.7 million, an increase of $1.3 million or 10% year-over-year [11] - Gross profit was $12.8 million, up $1.5 million or 15% year-over-year, with a gross margin increase to 87% from 83% [12][13] - Net loss was $12.9 million or $0.49 per share, compared to a net loss of $13.1 million or $0.57 per share in Q3 2024 [16] - Cash and cash equivalents stood at $85.1 million as of September 30, 2025 [16] Business Line Data and Key Metrics Changes - U.S. revenue was $13.5 million, a 10% increase, with 420 revenue units sold compared to 394 in Q3 2024 [11][12] - Active implanting centers in the U.S. increased to 250 from 240 in the previous quarter [11] - European revenue was $1.2 million, a 12% increase, but total revenue units decreased to 50 from 56 [12] Market Data and Key Metrics Changes - The company added 10 net new centers in Q3 2025, with over 20% of active implanting centers achieving three or more implants [4][5] - The average selling price (ASP) for the quarter was over $31,000, up from just below $30,000 in Q3 2024 [33] Company Strategy and Development Direction - The company is focused on building a world-class sales organization and expanding its commercial footprint [3][4] - Targeting high-potential centers for sustainable programs and implementing a best practice playbook for therapy adoption [4] - The transition to a Category One CPT code effective January 1, 2026, is expected to improve reimbursement predictability and support therapy adoption [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sales team's productivity and the positive signals from payers [18] - The company anticipates mid-teens growth in 2026, with potential for higher growth rates in the mid-20% range by 2027 and beyond [22][36] - The management highlighted the importance of reimbursement advancements and clinical evidence in driving future growth [6][9] Other Important Information - R&D expenses increased by $0.6 million or 26% to $3.1 million, driven by higher compensation and consulting expenses [13] - The company plans to refresh its registration statement in connection with the filing of its Q3 10Q [17] Q&A Session Summary Question: Guidance and Sales Reps Productivity - Management noted that while Q3 results were strong, they are cautious about future guidance due to ongoing productivity ramp-up of new sales reps [20][21] Question: 2026 Growth Projections - Management is comfortable with mid-teens growth expectations for 2026, with potential for exceeding those expectations based on various factors [22][36] Question: Sales Force Productivity - Management indicated that while new reps are becoming productive, full productivity is still being developed, with a typical ramp-up period of 6-12 months [25][26] Question: Reimbursement Changes - The transition to Category One CPT code is expected to reduce prior authorization friction and improve approval rates [28][29] Question: Gross Margin Insights - The increase in gross margin was attributed to a mix of higher average selling prices and improved manufacturing efficiencies [32][33] Question: RCT Trial and Enrollment - The company is planning a significant randomized controlled trial with approximately 2,000 patients, which could expand the total addressable market [44][49] Question: Operating Expenses Management - Management expects operating expenses to grow at a lower rate than revenue, indicating operational leverage [63]