Pulmonx (LUNG) AI Stock Analysis

• Market Cap: $62.28M
• Dividend Yield: N/A
• Average Volume (3M): 308.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• 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: 41,247,032
• 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: 0.68
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 0.63
• Enterprise Value/Ebitda: -0.78
• 1Y Price Target: $6.00
• Price Target Upside: 322.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $1.50 ▲(5.63% Upside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

The score is primarily held down by weak financial health (persistent losses, rising leverage, and negative operating cash flow) and a bearish technical setup (below major moving averages with negative MACD). Valuation provides limited support due to losses and no dividend, while the earnings call was mixed with stable margin guidance and international growth but soft U.S. growth and declining cash.

Positive Factors

Consistent Revenue Growth

Sustained top-line growth (TTM +23.1%) indicates durable commercial traction for the Zephyr valve across markets. Over a 2-6 month horizon, consistent revenue expansion supports scale benefits, improves negotiating leverage with providers, and validates adoption of the therapy.

High Gross Margins

Elevated gross margins (~73–75%) reflect strong unit economics and efficient manufacturing for the device business. High gross margins provide a buffer to fund R&D and commercialization, enabling durable margin sustainability as revenues scale and fixed costs are amortized.

Differentiated Core Product

A focused, clinically differentiated device (Zephyr valve) targets a clear unmet need in emphysema. Durable competitive advantage stems from procedure complexity, clinical outcomes evidence, and reimbursement pathways, supporting repeatable hospital adoption and long-term addressable market penetration.

Negative Factors

Persistent Net Losses

Ongoing quarterly net losses demonstrate the company has yet to reach operating profitability. Over several months this limits reinvestment flexibility, increases reliance on external financing, and places pressure on management to deliver sustainable cost-control or margin expansion to reach break-even.

Rising Leverage

An increasing debt-to-equity ratio (0.82 TTM) reduces financial flexibility and raises interest and covenant risk if growth slows. Higher leverage can constrain strategic options and amplify downside over a 2-6 month horizon, particularly while profitability remains negative.

Negative Operating Cash Flow / Cash Burn

Declining cash balances and material cash utilization (~$25M YTD) combined with negative operating cash flow signal runway pressure. Even with improving free cash flow metrics, sustained cash burn forces prioritization of runway extension actions or financing, affecting long-term execution risk.

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

Strong revenue growth and high gross margin are offset by persistent operating losses, negative profitability metrics, rising leverage, and still-negative operating cash flow despite improved free cash flow.

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: Negative
• Last Price: 1.42
• 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 1.42 is below the 20-day moving average (MA) of 1.55, below the 50-day MA of 1.94, and below the 200-day MA of 2.15, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 38.59 is Neutral, neither overbought nor oversold. The STOCH value of 50.09 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	$79.82M	55.88	3.64%	―	16.88%	―
SRTS	65 Neutral	$63.07M	-8.12	-14.85%	―	-13.79%	-132.21%
APYX	60 Neutral	$145.24M	-9.71	-172.18%	―	-1.32%	55.62%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ICCM	45 Neutral	$39.92M	-2.27	-157.91%	―	-18.96%	8.98%
LUNG	45 Neutral	$62.28M	-1.07	-73.73%	―	15.59%	4.13%
TELA	44 Neutral	$34.97M	-0.89	―	―	12.24%	47.45%