Pulmonx Corporation ((LUNG)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Pulmonx Corporation painted a mixed picture for investors. While there were positive developments, such as international growth and improved gross margins, the company continues to face challenges in the U.S. market, rising expenses, and a persistent net loss. The management’s focus on execution and profitability indicates a strategic attempt to address these issues, although immediate growth strategies remain uncertain.
Revenue Growth
Pulmonx Corporation reported a total worldwide revenue of $21.5 million for the quarter ending September 30, 2025, marking a 5% increase from the previous year’s $20.4 million. This growth, though modest, reflects the company’s efforts to expand its market presence.
International Revenue Surge
A highlight from the earnings call was the significant increase in international revenue, which rose by 15% to $7.5 million compared to $6.6 million in the same period last year. This surge underscores the company’s successful expansion efforts outside the U.S.
Gross Margin Improvement
The gross margin for the third quarter of 2025 improved slightly to approximately 75%, up from 74% in the previous year. This improvement indicates better cost management and operational efficiency.
U.S. Revenue Growth Slowdown
In contrast to international success, U.S. revenue growth was sluggish, with only a 1% increase to $14 million from $13.8 million in the prior year. This slowdown highlights ongoing challenges in the domestic market.
Operating Expenses Increase
Operating expenses for the third quarter rose by 4% to $30.4 million from $29.2 million in the previous year. This increase in expenses poses a challenge to the company’s profitability goals.
Net Loss Persistence
Pulmonx reported a net loss of $14 million, or $0.34 per share, for the third quarter of 2025. This figure is nearly identical to the $14.1 million net loss, or $0.36 per share, reported in the same period last year, indicating persistent financial challenges.
Cash Reserves Decrease
The company ended the quarter with $76.5 million in cash and cash equivalents, a decrease of $7.7 million from the second quarter of 2025. This reduction in cash reserves highlights the need for strategic financial management.
Forward-Looking Guidance
Looking ahead, Pulmonx Corporation projects full-year revenue for 2025 to be between $89 million and $90 million, with a gross margin of approximately 73%. Operating expenses are expected to range from $125 million to $126 million, including $21 million in noncash stock-based compensation. The company aims to extend its cash runway and improve operating leverage by focusing resources on high-return areas.
In summary, Pulmonx Corporation’s earnings call revealed a company navigating through mixed results. While international growth and improved gross margins are positive signs, challenges in the U.S. market and rising expenses remain. The company’s forward-looking guidance suggests a strategic focus on enhancing profitability and extending cash reserves, which will be crucial for future growth.