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Pulmonx (LUNG)
NASDAQ:LUNG
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Pulmonx (LUNG) AI Stock Analysis

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LUNG

Pulmonx

(NASDAQ:LUNG)

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Neutral 46 (OpenAI - 4o)
Rating:46Neutral
Price Target:
$1.50
▼(-15.25% Downside)
Pulmonx's overall score is primarily impacted by its financial performance, which shows growth but significant profitability challenges. Technical analysis indicates a bearish trend, and valuation metrics are weak due to ongoing losses. The earnings call provides a mixed outlook, with strong international growth but revised guidance and slower U.S. performance.
Positive Factors
International Revenue Growth
Strong international revenue growth indicates successful market expansion and adoption of Pulmonx's products globally, supporting long-term revenue potential.
Expansion of Screening Capacity
Expanding screening capacity and training new physicians increases patient access and treatment capacity, potentially boosting future revenue and market penetration.
Innovative Product Offering
The Zephyr Endobronchial Valve offers a minimally invasive solution for emphysema, providing a competitive edge in respiratory care and supporting long-term growth.
Negative Factors
Revised Revenue Guidance
The downward revision of revenue guidance reflects challenges in U.S. market execution, potentially impacting short-term financial performance and investor confidence.
Profitability Challenges
Ongoing profitability challenges due to high operating expenses and negative cash flow may strain financial resources and limit reinvestment capabilities.
Rising Leverage
Increased leverage could pose financial risks if not managed carefully, potentially affecting the company's ability to invest in growth opportunities.

Pulmonx (LUNG) vs. SPDR S&P 500 ETF (SPY)

Pulmonx Business Overview & Revenue Model

Company DescriptionPulmonx 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 MoneyPulmonx 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 Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong international revenue growth and significant progress in expanding screening and treatment capacity. However, these positives were offset by the downward revision of revenue guidance, decline in gross margins, and slower than expected U.S. revenue growth due to capacity constraints and evolving priorities. The overall sentiment reflects a balanced view with positive international performance but challenges in U.S. market execution.
Q2-2025 Updates
Positive Updates
Strong International Revenue Growth
International revenue for the second quarter of 2025 was a record $9.1 million, a 32% increase compared to $6.9 million in the same period last year and a 27% increase on a constant currency basis.
Significant Increase in StratX Referrals
StratX referrals rebounded to record levels in June and July, indicating a positive response to the initiatives deployed.
Expansion of Screening Capacity
In Q2, 12 new screening centers were opened and 26 new physicians were trained, creating new points of patient access and expanding treatment capacity.
Negative Updates
Revised Revenue Guidance
Full year 2025 revenue guidance has been revised down from a range of $96 million to $98 million to a range of $90 million to $92 million due to slower than expected ramp-up of U.S. growth initiatives.
Decline in Gross Margin
Gross margin for the second quarter of 2025 was 72%, down from 74% in the same period last year, primarily driven by an anticipated shift in geographic revenue mix.
Slower U.S. Revenue Growth
U.S. revenue in the second quarter reached $14.7 million, a 6% increase from $13.9 million in the prior year period, which was below expectations due to slower growth in procedure volume.
Company Guidance
During the second quarter of 2025, Pulmonx reported revenue of $23.9 million, with international markets contributing $9.1 million, significantly above expectations due to robust growth across key regions. However, U.S. revenue totaled $14.7 million, reflecting slower-than-expected growth in procedure volumes. This led to a revision of the full-year 2025 revenue guidance from an initial range of $96 million to $98 million down to $90 million to $92 million. The company continues to invest in its growth initiatives, including direct-to-patient outreach and AI-powered screening tools like LungTraX Detect, but noted that these programs are taking longer than anticipated to convert into revenues. Pulmonx remains optimistic about its long-term growth, driven by strong international performance and emerging opportunities in the U.S. market.

Pulmonx Financial Statement Overview

Summary
Pulmonx shows strong revenue growth and gross profit margins, but faces significant challenges with profitability and cash flow management. The balance sheet is stable, but ongoing losses and negative cash flows pose risks to financial health.
Income Statement
45
Neutral
Pulmonx has shown consistent revenue growth with a TTM (Trailing-Twelve-Months) increase of 4.4% compared to the previous year. However, the company continues to operate at a loss, with negative EBIT and net income margins indicating significant operational challenges. Gross profit margins remain strong at 73.6% TTM, but the persistent losses suggest difficulty in managing operating expenses.
Balance Sheet
50
Neutral
The balance sheet shows a moderate debt-to-equity ratio of 0.73, indicating relatively balanced leverage. The equity ratio stands at 51.5%, suggesting a stable capital structure. However, the return on equity is negative due to ongoing net losses. Pulmonx maintains a healthy cash position with cash and equivalents covering total debt.
Cash Flow
40
Negative
Pulmonx's cash flow position is concerning, with negative operating and free cash flows indicating cash burn. The free cash flow to net income ratio is negative, reflecting challenges in generating cash from operations. The operating cash flow to net income ratio also remains negative, consistent with the trend of operating losses.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue90.55M83.79M68.67M53.66M48.42M32.73M
Gross Profit66.26M62.00M50.75M39.87M35.63M21.20M
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 Assets147.19M162.85M177.78M193.68M235.17M263.71M
Cash, Cash Equivalents and Short-Term Investments84.22M101.48M117.10M141.14M180.04M231.56M
Total Debt56.83M56.47M41.42M24.40M26.46M27.22M
Total Liabilities78.10M77.04M59.47M39.67M41.93M37.57M
Stockholders Equity69.09M85.81M118.31M154.01M193.24M226.13M
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 Flow42.60M17.48M-2.01M-4.22M-46.26M12.69M
Financing Cash Flow1.12M1.36M21.40M2.47M4.46M234.83M

Pulmonx Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.77
Price Trends
50DMA
2.00
Negative
100DMA
2.53
Negative
200DMA
4.55
Negative
Market Momentum
MACD
-0.04
Negative
RSI
50.53
Neutral
STOCH
70.88
Neutral
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 1.77 is above the 20-day moving average (MA) of 1.70, below the 50-day MA of 2.00, and below the 200-day MA of 4.55, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 50.53 is Neutral, neither overbought nor oversold. The STOCH value of 70.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
262.97M20.0110.00%17.11%45.34%
60
Neutral
227.95M-7.96-20.64%5.15%73.29%
56
Neutral
262.45M-0.73-63.25%2.47%56.93%
53
Neutral
569.66M-931.08-0.10%5.08%99.38%
48
Neutral
241.36M-4.11128.34%45.50%53.07%
46
Neutral
$74.97M-66.88%18.24%4.81%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LUNG
Pulmonx
1.77
-6.48
-78.55%
INGN
Inogen
8.43
-1.71
-16.86%
VMD
Viemed Healthcare
6.78
-0.33
-4.64%
OM
Outset Medical
14.79
7.03
90.59%
TLSI
TriSalus Life Sciences
4.84
0.83
20.70%
BVS
Bioventus
6.89
-4.73
-40.71%
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.Date of analysis: Sep 25, 2025