Pulmonx (LUNG) AI Stock Analysis

• Market Cap: $70.08M
• Dividend Yield: N/A
• Average Volume (3M): 308.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: 15.59%
• EPS Growth: 4.13%
• Country: US
• Employees: 291
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.34
• Shares Outstanding: 40,746,555
• 10 Day Avg. Volume: 245,979
• 30 Day Avg. Volume: 308,202
• PEG Ratio: 0.47
• Price to Book (P/B): 3.09
• Price to Sales (P/S): 3.17
• P/FCF Ratio: -8.05
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 1.15
• Enterprise Value/Ebitda: -1.42
• 1Y Price Target: $4.10
• Price Target Upside: 151.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $1.50 ▼(-7.98% Downside)

Pulmonx's overall stock score is primarily impacted by its financial performance, which shows strong revenue growth but significant profitability and cash flow challenges. Technical analysis indicates a bearish trend, and valuation metrics are weak due to ongoing losses. The earnings call provides a mixed outlook with some positive developments but also highlights persistent challenges.

Positive Factors

International Revenue Growth

Strong international revenue growth indicates successful market expansion and product adoption, which can drive long-term revenue stability and growth.

Expansion of Screening Capacity

Expanding screening capacity enhances patient access and treatment capabilities, potentially increasing procedure volumes and supporting long-term growth.

Leadership Change

Leadership changes can bring fresh strategic perspectives and renewed focus on operational improvements, potentially enhancing long-term business execution.

Negative Factors

Rising Debt Levels

Increasing debt levels can strain financial flexibility and cash flow, posing risks to long-term financial stability and growth potential.

Decline in Gross Margin

A declining gross margin may indicate cost pressures or pricing challenges, potentially impacting profitability and long-term financial health.

Slower U.S. Revenue Growth

Slower U.S. revenue growth suggests challenges in market penetration and execution, potentially limiting near-term revenue expansion and market share.

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 through the sale of its medical devices and therapies, predominantly the Zephyr Endobronchial Valve system. The company sells its products directly to hospitals and healthcare providers, which typically involve surgical procedures for implantation. Revenue is also supplemented through post-procedure follow-up care and services associated with the product. Additionally, Pulmonx may engage in strategic partnerships with healthcare institutions and payers to enhance patient access to its therapies, which can lead to increased adoption and sales. The company may benefit from reimbursements from insurance providers for its procedures, further contributing to its revenue model.

Pulmonx Financial Statement Overview

Summary

Pulmonx shows strong revenue growth but faces challenges with profitability and cash flow. The company manages production costs efficiently, yet high operating losses and increasing leverage are concerning. Despite improvements in free cash flow, persistent losses and rising debt levels impact overall financial health.

Income Statement

Pulmonx shows a consistent revenue growth trajectory, with a TTM revenue growth rate of 23.1%. However, profitability remains a challenge, as evidenced by negative net profit and EBIT margins. The gross profit margin is relatively strong at 73.2%, indicating efficient cost management in production. Despite revenue growth, the company struggles with high operating losses, impacting overall profitability.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.82 in the TTM period, indicating rising leverage. Return on equity is negative, reflecting ongoing losses. The equity ratio remains stable, suggesting a reasonable level of equity financing. However, the increasing debt levels pose a risk to financial stability.

Cash Flow

Pulmonx has shown improvement in free cash flow growth, with a TTM increase of 185.4%. The free cash flow to net income ratio is positive, indicating some efficiency in cash generation relative to net losses. However, the operating cash flow remains negative, highlighting ongoing cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	91.66M	83.79M	68.67M	53.66M	48.42M	32.73M
Gross Profit	67.19M	62.00M	50.75M	39.87M	35.63M	21.20M
EBITDA	-54.36M	-50.79M	-55.09M	-55.99M	-46.62M	-28.44M
Net Income	-56.75M	-56.39M	-60.84M	-58.92M	-48.66M	-32.23M
Balance Sheet
Total Assets	138.28M	162.85M	177.78M	193.68M	235.17M	263.71M
Cash, Cash Equivalents and Short-Term Investments	76.55M	101.48M	117.10M	141.14M	180.04M	231.79M
Total Debt	56.56M	56.47M	41.42M	24.40M	26.46M	27.22M
Total Liabilities	78.25M	77.04M	59.47M	39.67M	41.93M	37.57M
Stockholders Equity	60.03M	85.81M	118.31M	154.01M	193.24M	226.13M
Cash Flow
Free Cash Flow	-32.62M	-32.98M	-38.42M	-46.45M	-45.10M	-31.54M
Operating Cash Flow	-32.07M	-31.54M	-37.61M	-45.14M	-41.43M	-30.63M
Investing Cash Flow	44.56M	17.48M	-2.01M	-4.22M	-46.26M	12.69M
Financing Cash Flow	887.00K	1.36M	21.40M	2.47M	4.50M	234.83M

Pulmonx Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LUNG, the sentiment is Neutral. The current price of 1.63 is below the 20-day moving average (MA) of 1.68, below the 50-day MA of 1.68, and below the 200-day MA of 3.50, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 49.64 is Neutral, neither overbought nor oversold. The STOCH value of 54.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LUNG.

Pulmonx Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRTS	64 Neutral	$67.51M	―	-5.71%	―	-13.79%	-132.21%
APYX	60 Neutral	$164.47M	―	-172.18%	―	-1.32%	55.62%
XTNT	60 Neutral	$87.46M	61.18	3.64%	―	16.88%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LUNG	44 Neutral	$70.08M	-1.20	-73.73%	―	15.59%	4.13%
ICCM	41 Neutral	$48.14M	―	-157.91%	―	-18.96%	8.98%
TELA	38 Underperform	$51.11M	-1.15	―	―	12.24%	47.45%

Pulmonx Corporate Events

Pulmonx Corporation’s Earnings Call: Mixed Results and Strategic Focus

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.

Pulmonx Corporation Reports Q3 2025 Financial Results

Pulmonx Corporation is a global leader in minimally invasive treatments for chronic obstructive pulmonary disease (COPD), known for its Zephyr Endobronchial Valve and other innovative solutions aimed at improving the quality of life for patients with severe emphysema.

Pulmonx Announces Leadership Changes with New CEO

On October 27, 2025, Pulmonx Corporation announced significant leadership changes with the reappointment of Glen French as President and CEO, and the appointment of Derrick Sung as COO and CFO. Concurrently, Steve Williamson and Mehul Joshi resigned from their roles but will remain in advisory capacities until December 1, 2025, to ensure a smooth transition. The company also reported preliminary third-quarter revenue of approximately $21.5 million and rescheduled its earnings call to November 12, 2025. These changes are expected to leverage French’s extensive experience to drive future growth and stability for Pulmonx.

The most recent analyst rating on (LUNG) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Pulmonx stock, see the LUNG Stock Forecast page.