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: 18.24%
• EPS Growth: 4.81%
• Country: US
• Employees: 291
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.38
• 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: 0.85
• Enterprise Value/Gross Profit: 1.16
• Enterprise Value/Ebitda: -1.28
• 1Y Price Target: $4.38
• Price Target Upside: 128.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $2.00 ▲(4.17% Upside)

Pulmonx's overall stock score is primarily impacted by its financial performance, which is challenged by ongoing losses and negative cash flow. While there is some positive momentum in international markets and technical indicators suggest short-term bullishness, the valuation remains unattractive due to a negative P/E ratio and lack of dividends. The earnings call provided a balanced view with strong international growth but highlighted challenges in the U.S. market.

Positive Factors

International Revenue Growth

Strong international revenue growth indicates successful market expansion and product adoption, enhancing long-term revenue potential.

Expansion of Screening Capacity

Expanding screening capacity increases patient access and treatment opportunities, supporting future revenue growth and market penetration.

Leadership Stability

Leadership stability with experienced executives can enhance strategic execution and operational efficiency, supporting long-term growth.

Negative Factors

Revised Revenue Guidance

Lower revenue guidance reflects challenges in U.S. market execution, potentially impacting growth targets and investor confidence.

Decline in Gross Margin

Decreasing gross margins may indicate rising costs or pricing pressures, affecting profitability and financial health over time.

Negative Cash Flow

Persistent negative cash flow can strain financial resources, limiting investment in growth initiatives and impacting long-term viability.

Pulmonx Business Overview & Revenue Model

Company Description

Pulmonx Corporation is a medical technology company focused on transforming the treatment of patients with severe emphysema. The company specializes in developing innovative, minimally invasive therapies designed to improve lung function and quality of life for patients suffering from chronic obstructive pulmonary disease (COPD). Its core product, the Zephyr Endobronchial Valve, is a key component of its portfolio, allowing for targeted lung volume reduction that helps to alleviate symptoms and enhance patient outcomes. Pulmonx operates primarily in the healthcare sector, specifically within pulmonology and respiratory care.

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 is experiencing growth in revenue but continues to face challenges in achieving profitability and positive cash flow. The company's increasing leverage and negative returns on equity highlight financial risks. While the gross profit margin is strong, the overall financial health is weakened by persistent losses and cash flow issues.

Income Statement

Pulmonx shows a consistent revenue growth trend, with a TTM revenue growth rate of 3.52%. However, profitability remains a significant challenge, as evidenced by negative net profit margins and EBIT margins. The gross profit margin is relatively strong at 73.18% TTM, indicating efficient cost management at the gross level, but high operating expenses are impacting overall profitability.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.82 TTM, indicating rising leverage, which could pose risks if not managed carefully. The return on equity remains negative, reflecting ongoing losses. However, the equity ratio suggests a solid equity base relative to total assets, providing some financial stability.

Cash Flow

Pulmonx's cash flow situation is concerning, with negative operating cash flow and free cash flow. The free cash flow to net income ratio is slightly above 1, indicating that cash flow is not significantly worse than accounting losses. However, the negative free cash flow growth rate TTM suggests deteriorating cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	90.55M	83.79M	68.67M	53.66M	48.42M	32.73M
Gross Profit	66.26M	62.00M	50.75M	39.87M	35.63M	21.20M
EBITDA	-60.06M	-50.79M	-55.09M	-55.99M	-46.62M	-28.44M
Net Income	-56.94M	-56.39M	-60.84M	-58.92M	-48.66M	-32.23M
Balance Sheet
Total Assets	147.19M	162.85M	177.78M	193.68M	235.17M	263.71M
Cash, Cash Equivalents and Short-Term Investments	84.22M	101.48M	117.10M	141.14M	180.04M	231.56M
Total Debt	56.83M	56.47M	41.42M	24.40M	26.46M	27.22M
Total Liabilities	78.10M	77.04M	59.47M	39.67M	41.93M	37.57M
Stockholders Equity	69.09M	85.81M	118.31M	154.01M	193.24M	226.13M
Cash Flow
Free Cash Flow	-31.98M	-32.98M	-38.42M	-46.40M	-45.06M	-31.54M
Operating Cash Flow	-31.10M	-31.54M	-37.61M	-45.08M	-41.39M	-30.63M
Investing Cash Flow	42.60M	17.48M	-2.01M	-4.22M	-46.26M	12.69M
Financing Cash Flow	1.12M	1.36M	21.40M	2.47M	4.46M	234.83M

Pulmonx Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.92
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LUNG, the sentiment is Positive. The current price of 1.92 is above the 20-day moving average (MA) of 1.71, above the 50-day MA of 1.70, and below the 200-day MA of 3.80, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 56.74 is Neutral, neither overbought nor oversold. The STOCH value of 17.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LUNG.

Pulmonx Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRTS	64 Neutral	$60.66M	―	-1.62%	―	3.30%	-112.70%
XTNT	61 Neutral	$103.88M	-20.78	-9.80%	―	15.16%	-39.18%
APYX	53 Neutral	$118.75M	―	-172.18%	―	-1.32%	55.62%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LUNG	46 Neutral	$70.08M	-1.20	-66.88%	―	18.24%	4.81%
ICCM	40 Underperform	$47.58M	-2.50	-230.80%	―	-16.46%	4.14%
TELA	39 Underperform	$51.11M	-1.15	-676.41%	―	16.34%	34.86%

Pulmonx Corporate Events

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.