Stereotaxis ((STXS)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Stereotaxis’ recent earnings call paints a picture of both optimism and caution. The company is celebrating significant milestones, such as the FDA approval for GenesisX and robust growth in recurring revenue. However, challenges remain, including financial losses and pending regulatory approvals.
GenesisX FDA Approval
The FDA approval of the GenesisX system marks a pivotal achievement for Stereotaxis. This milestone is expected to enhance the company’s market opportunities by eliminating structural barriers. The approval is anticipated to accelerate the pace of Genesis orders once the system is fully launched.
Growth in Recurring Revenue
Stereotaxis reported a notable increase in recurring revenue for the third quarter, reaching $5.6 million. This growth is primarily driven by the increased adoption of MAGiC Sweep and Map-iT catheters, showcasing a significant rise from $4.8 million in the previous year.
Positive Reception of MAGiC Sweep
The MAGiC Sweep high-density mapping catheter has been well-received, generating over $300,000 in revenue within its first two months in the U.S. market. Despite only about a quarter of robotic accounts having ordered it so far, the initial response is promising.
Strong Financial Outlook for Q4 2025
Stereotaxis is projecting a strong financial performance for the fourth quarter of 2025, expecting revenues to exceed $9 million. This includes approximately $3 million in system revenue and over $6 million in recurring revenue, contributing to an anticipated annual revenue growth of over 20% for the year.
Partnership with CardioFocus
The collaboration with CardioFocus aims to enhance the compatibility of their PFA system with the MAGiC catheter. This partnership is focused on achieving regulatory approval and subsequent commercialization, which could further bolster Stereotaxis’ market position.
Operating and Net Losses
Despite positive developments, Stereotaxis reported an operating loss of $6.6 million and a net loss of $6.5 million for the third quarter. These figures are slightly higher than the losses reported in the previous year, highlighting ongoing financial challenges.
Negative Free Cash Flow
The company continues to face financial hurdles, with negative free cash flow remaining consistent at $4.2 million for the third quarter, mirroring the previous year’s figures.
Pending MAGiC Approval in the U.S.
While the MAGiC catheter has successfully launched in Europe, its U.S. approval is still pending. This delay could impact broader market penetration and revenue growth in the near term.
Forward-Looking Guidance
Looking ahead, Stereotaxis is optimistic about its future. The company expects to surpass $9 million in revenue for the fourth quarter, with projections of over 20% annual growth for 2025. For 2026, quarterly revenues are anticipated to average above $10 million, driven by the GenesisX launch and an expanding portfolio of proprietary catheters. The company is also advancing its digital solutions, which are expected to contribute significantly to future revenues.
In conclusion, Stereotaxis’ earnings call reflects a company on the cusp of significant growth, buoyed by strategic approvals and partnerships. While financial challenges persist, the forward-looking guidance suggests a promising trajectory, with expectations of continued revenue growth and market expansion.