Pulmonx (LUNG) AI Stock Analysis

• Market Cap: $68.00M
• Dividend Yield: N/A
• Average Volume (3M): 308.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: 15.59%
• EPS Growth: 4.13%
• Country: US
• Employees: 291
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.25
• Shares Outstanding: 42,237,200
• 10 Day Avg. Volume: 245,979
• 30 Day Avg. Volume: 308,202
• PEG Ratio: 0.22
• Price to Book (P/B): 1.66
• Price to Sales (P/S): 0.99
• P/FCF Ratio: -2.73
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 0.79
• Enterprise Value/Ebitda: -1.04
• 1Y Price Target: $3.83
• Price Target Upside: 112.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -1.31
• Revenue Forecast (FY): $94.23M

• Rating: 46 Neutral
• Price Target: $1.50 ▼(-16.67% Downside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is held down primarily by weak financial performance: persistent large operating losses, ongoing cash burn, and a weakened balance sheet with higher leverage. Technicals are modestly supportive in the near term (above 20/50DMA with neutral RSI), but longer-term trend levels (below 100/200DMA) and a loss-driven valuation profile (negative P/E, no dividend yield provided) limit upside. Earnings call guidance improves the outlook on cost control and cash burn, but flat revenue guidance and execution risks keep the overall score below average.

Positive Factors

High Gross Margins

Sustained gross margins near the mid-70s percent indicate durable pricing power and favorable unit economics for the Zephyr valve. Combined with multi-year revenue growth from ~$33M to ~$84M, this margin profile gives the company a structural pathway to leverage fixed costs and move toward profitability as revenue stabilizes or grows.

Extended Liquidity and Debt Facility

The five-year, secured $60M facility (initial $40M draw) materially extends maturities and provides cushion to fund operations and clinical programs. The extended runway and explicit liquidity covenants reduce near-term refinancing risk and support execution on commercialization and pivotal trials without immediate funding pressure.

Cost Restructuring & Lower Cash Burn

Management's executed expense cuts and guidance for a ~30% reduction in cash burn are durable operational improvements. Lower ongoing cash consumption improves runway, reduces reliance on dilutive financing, and increases the chance that stronger gross margins translate into a sustainable path toward break-even as revenue execution normalizes.

Negative Factors

Persistent Cash Burn

Trailing cash outflows remain substantial and roughly track reported net losses, meaning losses are translating into real funding needs. Continued negative free cash flow limits strategic optionality, increases dilution or leverage risk if growth stalls, and requires consistent execution to avoid further weakening of the balance sheet.

U.S. Execution Disruption

High sales turnover and reorganizations have a structural impact on procedure-driven adoption in hospitals where relationship continuity matters. Disrupted account management can delay case volumes, slow new center ramp-ups, and lengthen the timetable to return U.S. growth, posing ongoing execution risk even after cost cutting.

Flat Near-Term Revenue Guidance

Management's guide for flat full-year revenue signals limited near-term top-line momentum and shows recovery is concentrated in back half of 2026. This compresses the margin of safety for investors and means improvements from cost cuts and liquidity depend heavily on delayed execution, China regulatory timing, and clinical progress.

Pulmonx Business Overview & Revenue Model

Company Description

Pulmonx Corporation, a medical technology company, provides minimally invasive devices for the treatment of chronic obstructive pulmonary diseases. It offers Zephyr Endobronchial Valve, a solution for the treatment of bronchoscopic in adult patients with hyperinflation associated with severe emphysema; and Chartis Pulmonary Assessment System, a balloon catheter and console system with flow and pressure sensors that are used to assess the presence of collateral ventilation. The company also provides StratX Lung Analysis Platform, a cloud-based quantitative computed tomography analysis service that offers information on emphysema destruction, fissure completeness, and lobar volume to help identify target lobes for the treatment with Zephyr Valves. It serves emphysema patients in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company was formerly known as Pulmonx and changed its name to Pulmonx Corporation in December 2013. Pulmonx Corporation was incorporated in 1995 and is headquartered in Redwood City, California.

How the Company Makes Money

Pulmonx generates revenue primarily through the sale of its medical devices, particularly the Zephyr Endobronchial Valve system, which is sold to hospitals and healthcare providers. The company also earns money from associated procedures, training, and support services related to the implantation of its devices. Additionally, Pulmonx may benefit from reimbursement agreements with insurance companies and government healthcare programs, which can enhance the adoption of their products. Strategic partnerships with healthcare institutions and participation in clinical trials may also contribute to increased visibility and sales of their products.

Pulmonx Financial Statement Overview

Summary

Despite strong gross margins (~74–78%) and solid multi-year revenue expansion, TTM revenue dipped (-1.3%) and losses remain very large (operating/net loss roughly ~60% of revenue). Cash burn is still significant (TTM operating cash flow about -$32M; FCF about -$33M) and the balance sheet has weakened with higher leverage (debt-to-equity ~1.04) and materially reduced equity.

Income Statement

Revenue has expanded meaningfully over the multi-year period (from ~$33M in 2020 to ~$84M in 2024), but TTM (Trailing-Twelve-Months) revenue declined (-1.3% growth), signaling a near-term slowdown. Profitability remains the core issue: despite strong and stable gross margins (~74% in 2023–TTM), operating losses are very large and persistent (TTM operating loss and net loss each roughly ~60% of revenue). While margins have improved versus 2022–2023, the company is still far from break-even.

Balance Sheet

Leverage has increased notably: debt is now about equal to equity in TTM (debt-to-equity ~1.04), up from a more conservative profile in 2020–2023. Equity has also fallen sharply (from ~$226M in 2020 to ~$54M in TTM), reflecting ongoing losses and weakening balance-sheet cushion. Total assets have trended down as well, and returns on equity remain deeply negative, which limits financial flexibility if losses persist.

Cash Flow

Cash burn remains significant: TTM (Trailing-Twelve-Months) operating cash flow is about -$32M and free cash flow about -$33M. The burn rate has improved versus 2021–2022 (when free cash flow was closer to -$45M to -$46M), but the business is still consuming cash rather than funding itself. Free cash flow has generally tracked the net loss (free cash flow roughly in line with net income), indicating losses are translating into real cash outflows rather than being mostly non-cash accounting items.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	90.50M	83.79M	68.67M	53.66M	48.42M
Gross Profit	67.14M	62.00M	50.75M	39.87M	35.63M
EBITDA	-52.61M	-50.79M	-55.09M	-55.99M	-46.62M
Net Income	-54.00M	-56.39M	-60.84M	-58.92M	-48.66M
Balance Sheet
Total Assets	129.29M	162.85M	177.78M	193.68M	235.17M
Cash, Cash Equivalents and Short-Term Investments	70.01M	101.48M	117.10M	141.14M	180.04M
Total Debt	56.36M	56.47M	41.42M	24.40M	26.46M
Total Liabilities	75.17M	77.04M	59.47M	39.67M	41.93M
Stockholders Equity	54.12M	85.81M	118.31M	154.01M	193.24M
Cash Flow
Free Cash Flow	-32.90M	-32.98M	-38.42M	-46.45M	-45.10M
Operating Cash Flow	-32.45M	-31.54M	-37.61M	-45.14M	-41.43M
Investing Cash Flow	30.48M	17.48M	-2.01M	-4.22M	-46.26M
Financing Cash Flow	903.00K	1.36M	21.40M	2.47M	4.50M

Pulmonx Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LUNG, the sentiment is Negative. The current price of 1.8 is above the 20-day moving average (MA) of 1.61, above the 50-day MA of 1.72, and below the 200-day MA of 2.03, indicating a bearish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 47.37 is Neutral, neither overbought nor oversold. The STOCH value of 36.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LUNG.

Pulmonx Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XTNT	66 Neutral	$88.19M	17.28	3.64%	―	16.88%	―
SRTS	52 Neutral	$65.19M	-5.13	-15.11%	―	-13.79%	-132.21%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
APYX	51 Neutral	$153.51M	-13.16	-117.54%	―	-1.32%	55.62%
LUNG	46 Neutral	$68.00M	-1.67	-82.79%	―	15.59%	4.13%
ICCM	45 Neutral	$50.15M	-4.18	-243.68%	―	-18.96%	8.98%
TELA	44 Neutral	$32.77M	-1.97	-272.13%	―	12.24%	47.45%

Pulmonx Corporate Events

Pulmonx Secures New Term Loan and Issues Warrants

On March 2, 2026, Pulmonx Corporation entered into a new senior secured term loan facility of up to $60 million with Perceptive Credit Holdings V, LP, drawing an initial $40 million and gaining access to two additional $10 million tranches contingent on meeting specified revenue thresholds through 2027. The loan, maturing March 2, 2031, carries a floating interest rate with optional paid-in-kind interest for 36 months, is secured by substantially all company and key subsidiary assets, and requires Pulmonx to maintain minimum liquidity and revenue levels, with default provisions that could accelerate repayment.

As part of the financing, Pulmonx issued Perceptive a warrant on March 2, 2026 to purchase up to 1,000,000 common shares at a 25% premium to the recent 10-day volume-weighted average price and will issue additional warrants tied to any future delayed-draw borrowings under similar terms. Also on March 2, 2026, the company fully repaid and terminated its prior credit facility with Canadian Imperial Bank of Commerce without incurring early termination penalties, effectively refinancing its debt structure and adding equity-linked incentives for its new lender.

The most recent analyst rating on (LUNG) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Pulmonx stock, see the LUNG Stock Forecast page.