Pulmonx (LUNG)
NASDAQ:LUNG
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Pulmonx
(NASDAQ:LUNG)
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Rating:45Neutral
Price Target:
$1.50
▼(-16.67% Downside)
Action:ReiteratedDate:03/28/26
The score is held down primarily by weak financial performance (large ongoing losses, significant cash burn, and a weakened balance sheet with higher leverage). Technicals also detract given a clear downtrend, though oversold indicators provide modest support. The earnings call adds some offset via cost cuts, lower expected cash burn, and stable gross margins, but the outlook depends on a second-half revenue recovery amid continued U.S. and China execution risks.
Positive Factors
High and Stable Gross Margins
Sustained ~74%–77% gross margins reflect a high-margin, procedure-driven product mix (single-use valves and consumables). Durable margin strength provides operating leverage as volumes recover, funding R&D and commercialization while improving prospects for translating revenue into positive cash flow.
Negative Factors
Persistent Negative Cash Flow
Consistent material cash burn (FCF ≈ -$33M TTM) indicates the business still consumes capital rather than self-funds growth. Even with cost cuts, sustained negative cash flow pressures liquidity, limits reinvestment, and increases reliance on external financing unless revenue and margin trends convert to positive operating cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
High and Stable Gross Margins
Sustained ~74%–77% gross margins reflect a high-margin, procedure-driven product mix (single-use valves and consumables). Durable margin strength provides operating leverage as volumes recover, funding R&D and commercialization while improving prospects for translating revenue into positive cash flow.
Read all positive factors
Pulmonx (LUNG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$57.86M
Dividend YieldN/A
Average Volume (3M)308.20K
Price to Earnings (P/E)―
Beta (1Y)1.19
Revenue Growth15.59%
EPS Growth4.13%
CountryUS
Employees291
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.25
Shares Outstanding42,237,200
10 Day Avg. Volume245,979
30 Day Avg. Volume308,202
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)1.66
Price to Sales (P/S)0.99
P/FCF Ratio-2.73
Enterprise Value/Market Cap0.76
Enterprise Value/Revenue0.49
Enterprise Value/Gross Profit0.66
Enterprise Value/Ebitda-0.86
Forecast
1Y Price Target
$3.83Price Target Upside112.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-1.31
Revenue Forecast (FY)$94.23M
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 patien...
How the Company Makes Money
Pulmonx primarily makes money by selling its Zephyr Endobronchial Valve system and related accessories used in bronchoscopic lung volume reduction procedures. Revenue is generated when hospitals and healthcare providers purchase single-use implant...
Pulmonx Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The call highlighted several meaningful positives — a strengthened balance sheet via a $60M credit facility, a >10% cost restructuring, guidance for a ~30% reduction in cash burn, improved gross margins, accelerating enrollment in the AeriSeal pivotal trial (potential ~20% TAM expansion), and quarter-over-quarter improvements in loss metrics. However, material near-term challenges remain: Q4 worldwide revenue declined 5% (U.S. down 11%), sales force turnover (roughly half the team) disrupted U.S. execution, China shipments and registration timing create first-half 2026 headwinds, and full-year revenue guidance implies essentially flat top-line growth. Management expects recovery in the back half of 2026 and double-digit global growth by Q4 2026 if execution holds. Overall, positives around financial flexibility and cost discipline are balanced by persistent revenue execution risks, particularly in the U.S. and China.Positive Updates
Refinanced Debt and Strengthened Balance Sheet
Closed a $60 million credit facility with a 5-year interest-only structure (initial $40M drawn to refinance prior loan; $20M incremental optional draw through 2027 subject to revenue milestones), extending debt maturity to 2031 and increasing financial flexibility.
Negative Updates
Quarterly and U.S. Revenue Declines
Total worldwide revenue for Q4 2025 was $22.6M, down 5% YoY (7% decline on a constant currency basis). U.S. revenue in Q4 was $14.1M, an 11% decline YoY from $15.9M, reflecting continued weakness in the core U.S. business.
Read all updates
Q4-2025 Updates
Positive
Negative
Refinanced Debt and Strengthened Balance Sheet
Closed a $60 million credit facility with a 5-year interest-only structure (initial $40M drawn to refinance prior loan; $20M incremental optional draw through 2027 subject to revenue milestones), extending debt maturity to 2031 and increasing financial flexibility.
Read all positive updates
Company Guidance
Pulmonx guided full-year 2026 revenue of $90–92 million, with gross margin of approximately 75% (expected slightly higher in H1 and lower in H2), and total operating expenses of $113–115 million inclusive of roughly $21 million of noncash stock‑based compensation (implying a 7–9% reduction in operating expenses ex‑SBC versus 2025). Management expects to cut annual cash burn to about $23 million in 2026 from $32 million in 2025 (≈30% reduction), to resume year‑over‑year U.S. and international revenue growth in the back half of the year and to be growing at double‑digit rates by Q4, while acknowledging minimal China sales in H1 with shipments resuming in H2. They also noted balance‑sheet support from $69.8 million of cash/marketable securities at year‑end 2025 and a $60 million credit facility ( $40 million initially drawn, $20 million incremental available through 2027 subject to revenue milestones, maturity extended to 2031), and reiterated that CONVERT II enrollment is expected to complete in 2027 and could expand TAM by ~20% globally.Pulmonx Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
46
Neutral
Cash Flow
38
Negative
| 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
Neutral
1.80
Price Trends
1.49
Negative
1.75
Negative
1.87
Negative
Market Momentum
-0.07
Negative
47.09
Neutral
76.36
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 1.8 is above the 20-day moving average (MA) of 1.36, above the 50-day MA of 1.49, and below the 200-day MA of 1.87, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 47.09 is Neutral, neither overbought nor oversold. The STOCH value of 76.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LUNG.
Pulmonx Risk Analysis
Pulmonx disclosed 83 risk factors in its most recent earnings report. Pulmonx reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pulmonx Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $67.23M | 22.00 | 10.27% | ― | 16.88% | ― | |
52 Neutral | $165.64M | -13.16 | -117.54% | ― | -1.32% | 55.62% | |
52 Neutral | $73.91M | -5.13 | -15.11% | ― | -13.79% | -132.21% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | $22.21M | -2.58 | -221.04% | ― | -18.96% | 8.98% | |
45 Neutral | $57.86M | -1.67 | -82.79% | ― | 15.59% | 4.13% | |
44 Neutral | $25.39M | -1.43 | -441.55% | ― | 12.24% | 47.45% |
* Healthcare Sector Average
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Pulmonx Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Pulmonx Secures New Term Loan and Issues Warrants
Positive
Mar 5, 2026
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 conting...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.