Pulmonx (LUNG) AI Stock Analysis

• Market Cap: $108.29M
• Dividend Yield: N/A
• Average Volume (3M): 334.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: 19.84%
• EPS Growth: 5.77%
• Country: US
• Employees: 291
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Devices
• EPS (TTM): -0.36
• Shares Outstanding: 40,257,526
• 10 Day Avg. Volume: 296,986
• 30 Day Avg. Volume: 334,184
• PEG Ratio: -0.30
• Price to Book (P/B): 2.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.74
• Enterprise Value/Market Cap: 2.17
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 3.66
• Enterprise Value/Ebitda: -1.07
• 1Y Price Target: $10.36
• Price Target Upside: 280.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 46 Neutral
• Price Target: $3.50 ▲(28.68%Upside)

Pulmonx's overall score reflects a challenging financial and operational environment, despite strong revenue growth. The significant operational losses and cash flow issues weigh heavily on the financial performance score. Technically, the stock exhibits weak momentum, further contributing to a lower score. Valuation metrics are unattractive due to negative earnings. The earnings call provided some positive aspects with international growth and strategic initiatives, but concerns remain regarding operational expenses and profitability.

Positive Factors

Cash Position

Management feels good about cash runway with $102M of cash and equivalents on hand.

Financial Performance

Pulmonx reported a relatively in-line first quarter, with revenue of $22.5M (+20.7% Y/Y CC), slightly ahead of our $22.3M estimate and the consensus of $22.0M.

Platform Launch

LungTrax platform is in full launch, with some hospitals already seeing increased throughput and reduced time-to-procedure.

Negative Factors

Market Penetration

The main bear case includes greater than anticipated tariff impact and lack of growth reacceleration, with the exact formula to penetrate the end market still being explored.

Revenue Estimate

Despite missing the US revenue estimate, the company's management had already signaled the expected slowdown and planned initiatives for future growth.

Tariff Impact

Tariffs could impact the business through component sourcing cost inflation and other countries' reciprocal tariffs, potentially harming gross margins.

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, particularly the Zephyr Endobronchial Valve, to hospitals and healthcare providers. The company earns money by marketing and distributing these devices in various geographical markets, including the United States, Europe, and Asia. Revenue is also supported by Pulmonx's efforts in training healthcare professionals to effectively use their products, thus enhancing the adoption rate of their technologies. Furthermore, strategic partnerships with medical institutions and ongoing clinical trials help to validate and promote the efficacy of the company's products, which in turn drives sales and revenue growth.

Pulmonx Financial Statement Overview

Summary

Pulmonx demonstrates strong revenue growth and solid gross profit margins, with a TTM revenue increase of 4.4% and 73.6% in gross margins. However, significant challenges with profitability and cash flow management persist, including negative EBIT and net income margins, along with negative operating and free cash flows.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	87.47M	83.79M	68.67M	53.66M	48.42M	32.73M
Gross Profit	64.36M	62.00M	50.75M	39.87M	35.63M	21.20M
EBITDA	-60.11M	-50.79M	-55.09M	-55.99M	-46.62M	-28.44M
Net Income	-57.09M	-56.39M	-60.84M	-58.92M	-48.66M	-32.23M
Balance Sheet
Total Assets	150.74M	162.85M	177.78M	193.68M	235.17M	263.71M
Cash, Cash Equivalents and Short-Term Investments	88.70M	101.48M	117.10M	141.14M	180.04M	231.56M
Total Debt	56.95M	56.47M	41.42M	24.40M	26.46M	27.22M
Total Liabilities	73.07M	77.04M	59.47M	39.67M	41.93M	37.57M
Stockholders Equity	77.67M	85.81M	118.31M	154.01M	193.24M	226.13M
Cash Flow
Free Cash Flow	-34.26M	-32.98M	-38.42M	-46.40M	-45.06M	-31.54M
Operating Cash Flow	-32.96M	-31.54M	-37.61M	-45.08M	-41.39M	-30.63M
Investing Cash Flow	36.30M	17.48M	-2.01M	-4.22M	-46.26M	12.69M
Financing Cash Flow	1.16M	1.36M	21.40M	2.47M	4.46M	234.83M

Pulmonx Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.72
• 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 2.72 is below the 20-day moving average (MA) of 2.88, below the 50-day MA of 3.41, and below the 200-day MA of 5.98, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 39.18 is Neutral, neither overbought nor oversold. The STOCH value of 46.56 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
VMD	80 Outperform	$279.83M	23.73	9.79%	―	19.97%	17.21%
INGN	55 Neutral	$190.90M	―	-14.10%	―	5.73%	72.50%
OM	55 Neutral	$366.95M	―	-86.53%	―	-7.84%	42.34%
Sector *	51 Neutral	$7.50B	0.32	-61.87%	2.27%	17.10%	1.59%
TLSI	50 Neutral	$195.58M	―	271.41%	―	85.03%	53.73%
BVS	50 Neutral	$572.55M	―	-19.79%	―	8.60%	-42.76%
LUNG	46 Neutral	$108.29M	―	-60.68%	―	19.84%	5.77%

Pulmonx Corporate Events

Pulmonx Holds 2025 Annual Stockholders Meeting

On May 22, 2025, Pulmonx Corporation held its 2025 Annual Meeting of Stockholders, where approximately 82.79% of the company’s shares were represented. During the meeting, stockholders elected three Class II directors, ratified the appointment of BDO USA, P.C. as the independent accounting firm for 2025, and approved executive compensation on a non-binding advisory basis.

The most recent analyst rating on (LUNG) stock is a Hold with a $4.15 price target. To see the full list of analyst forecasts on Pulmonx stock, see the LUNG Stock Forecast page.