LUNG — Pulmonx Corporation

Summary of Pulmonx (LUNG) Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Total Revenue: $22.8 million, a 5% decrease from $23.9 million in Q2 2025.
• U.S. Revenue: $14.2 million, down 4% year-over-year but up 7% sequentially from Q1 2026.
• International Revenue: $8.6 million, down 6% year-over-year, primarily due to halted sales in China.
• Net Loss: $10.1 million, a 34% reduction from $15.2 million in Q2 2025.
• Net Loss per Share: $0.24, improved from $0.38 in the prior year.
• Adjusted EBITDA Loss: $5.1 million, a nearly 40% reduction from $8.4 million in Q2 2025.
• Gross Margin: 78%, up from 72% in the prior year, driven by cost efficiencies.
• Cash Position: $55.8 million, down $5.8 million from Q1 2026, with an expected cash burn of $23 million for the full year.

2. Strategic Updates and Business Highlights

• Pulmonx is focused on three key priorities: reaccelerating sales growth, achieving operating leverage, and advancing clinical initiatives.
• The company has filled all U.S. sales leadership positions and is seeing improved team culture and reduced turnover.
• International markets (excluding China) showed 9% year-over-year constant currency revenue growth.
• The renewal of the Chinese registration certificate allows for resumed shipments expected by early 2027.
• The CONVERT II pivotal trial for AeriSeal is progressing, with enrollment expected to complete in 2027, which could expand the addressable market by 20%.

3. Forward Guidance and Outlook

• Full-year revenue guidance remains at $90 million to $92 million.
• Anticipation of returning to year-over-year sales growth later in 2026, despite typical seasonality affecting Q3.
• The company expects to exit 2026 with growth close to double digits.

4. Bad News, Challenges, or Points of Concern

• Total revenue declined year-over-year, indicating ongoing challenges in regaining market traction.
• The international revenue drop was fully attributed to the absence of sales in China, which has been a significant market for Pulmonx.
• The company anticipates typical seasonal declines in Q3, which may affect short-term performance.
• The net loss, while reduced, still reflects ongoing financial challenges as the company works to achieve profitability.

5. Notable Q&A Insights

• Management confirmed that while the sales force has been filled, the ramp-up period for new reps remains a challenge, typically taking 6 to 9 months.
• There is cautious optimism regarding the impact of the newly structured sales force on future revenue.
• The resumption of sales in China is expected to take time, with material revenues not anticipated until early next year.
• Management refrained from providing guidance for 2027 but acknowledged potential for stronger growth based on current initiatives and market conditions.
• Concerns were raised about the impact of resumed shipments to China on gross margins, as they typically yield lower margins compared to other markets.

Overall, Pulmonx is making progress in its strategic initiatives and financial metrics, but faces challenges in revenue growth and market conditions, particularly in China. The management remains optimistic about future growth and operational improvements.